Luxury Car Lease (insurance, credit, buy)

[hertfordshire]

Stan's just looking for validation. Sorry, not coming from me. Leasing is a very expensive way to borrow a car.

[stan4]

Originally Posted by hertfordshire

Stan's just looking for validation. Sorry, not coming from me. Leasing is a very expensive way to borrow a car.

Stan can do math.
Sorry you can't.
Especially with high end luxury cars that depreciate like crazy...if you're not willing to make the 'smart' decision and buy used, leasing is a much better idea.

[hertfordshire]

Originally Posted by stan4

Stan can do math.
Sorry you can't.
Especially with high end luxury cars that depreciate like crazy...if you're not willing to make the 'smart' decision and buy used, leasing is a much better idea.

Or you could finance the purchase of a car that isn't a high end luxury car, but is more in line with what you can afford to pay.

[finalmove]

Originally Posted by rome99

I leased a German luxury car 3 years back. I gave $6K down and monthly payment is $625. New car price is about $55K. My lease is going to end soon. As per the lease agreement allowed mileage per year is 12K. It has only done 14K miles so far. The condition of the car is excellent.
My question is what should I do with this car?

1. Return the car - if I choose to return will they come up with any other charges to draw more money?
2. Buy the car - As per KBB, the used car value is $35K. I have already spent about $30K. If I buy it, I ended up paying about $65K!

Thanks.

Turn it in. That's why you leased it!

[bhouse]

Both arguments are correct. The way people in America generally buy cars, holding a vehicle for several years past when you pay it off puts you financially ahead of leasing over the same period. However, a smart leaser with the right lifestyle can make this difference almost negligible, while getting to drive a new car the whole time and not having to worry about maintenance and repairs.

Some of the leases people enter into are just downright stupid. Most people don't realize that you can negotiate lease terms the same way you negotiate buying a car... in fact you have even more factors to play with to get you to the right number (allowable mileage, fees, coverage). Another general rule of thumb is you should always put as little money down on a lease as possible.

I leased a 40k SUV for 36 months for $0 down and $400/month all-in. I have a friend who has almost exactly the same SUV who pays $490/month and put $2,000 down. He gets 12k instead of 10k miles per year, but with my lifestyle I don't need that extra mileage. I also did a better job negotiating than him, but that's another story.

If the only reason you don't lease is because you think it's a money drain, I suggest you do some more research. There is not one right or wrong answer, just preference and fit for lifestyle.

[finalmove]

Originally Posted by Eagle4Life

Only fools lease cars. And you can negotiate the buy out for #2. You can negotiate anything.

That's rather harsh. And untrue. You can't negotiate anymore. Its take it or leave it.

[Badger21]

bhouse has it right. all comes down to lifestyle and preference.

[DuderMcMerican]

Originally Posted by hertfordshire

Or you could finance the purchase of a car that isn't a high end luxury car, but is more in line with what you can afford to pay.

Tru dat, hertford, tru dat..

Mistake 1: Luxury car. Suckers pay $50k+ for a car.

Mistake 2: Lease. Makes sense for very few "regular people." Pish posh on the "lifestyle" argument. Clownz need to get over themselves.

Mistake 3: Insanely high down payment. Homeboy coulda bought a late model used car straight up for that down payment. Not a bmw/audi/benz/porsche but that only ensures Mistake 1 avoidance.

Mistake 4: Not knowing terms of lease before signing. Re "hidden fees," read your lease agreement & whatever else you signed word for word. If the stealership trys to charge anything thats not in writing, then call them a bunch of bozos and tell em to suck it.


I am Captain Hindsight, and my work here is done.

[kevinm]

Originally Posted by Eagle4Life

Only fools lease cars. And you can negotiate the buy out for #2. You can negotiate anything.

No you can't. The residual value is stated in the contract. You cannot change the terms. Either buy a that price or walk away.

[ssa78]

The money you've already put into the lease is a sunk cost - there's no point considering that in making your decision because there's simply nothing you can do about it. It is what it is when it comes to leases and financing.

You will definitely pay more by buying the car out, and since you're in good position with the miles you can easily just return the car and then look to buy something afterwards. If you buy it out it's like you are buying your own certified pre-owned vehicle. So you may as well compare it to other cars that fall under that category before you pull the trigger on buying the car out.