Lease VS. Buy

[Ban Hammer 15,188]

Ok let me give you some numbers

Car Value $56,000

Down Payment $1,000

Monthly Payment $329

Lease Term: 27 months

Mileage allowed: 22,500

Justification: I'm a princess LOL

Tell me what you think so far, this deal is not open to the public. It's special for friends and family.

in the above case, that's probably not a bad deal. you'll spend $9883 in 3 years, but make sure there is not an end of lease payment. and you'll have an average of 833 miles a month....... only you know if you'll exceed that and best to find out what the cost is per mile for overmilage.

No end of lease payment. The balance will be 38K and I can either give it back, re-lease, or finance it. It's a SWEET car. It's 25 cents per mile for overage but if I keep it, then that doesn't really matter. I have to decide by the end of the month, they rarely do this special.

so you have time to get an insurance quote. that is going to be important also. find out what the insurance requirements are for that vehicle, get ahold of your insurance company, and make sure you can afford that too. my suggestion is go ahead and get the vehicle if you can afford it. you'll depreciate a vehicle 10k in 3 years anyways.

I love it when you hear what you wanna hear

Gotta call the insurance company in the morning, good thing that I have a great driving record.

perhaps you meant "i love it when i hear what i wanna hear"

otherwise, you love it when i hear what i want to hear

[sarah and hicham 3]

For me that would not be a good deal because I drive much more than that per month.

That's because you have to drive 20 min to In-n-out burger

hahaha and 100 miles for weekend golf tournaments haha.

LOL and how far do you have to for Walmart?

About 20 miles.

[jordanianprincess 0]

Ok let me give you some numbers

Car Value $56,000

Down Payment $1,000

Monthly Payment $329

Lease Term: 27 months

Mileage allowed: 22,500

Justification: I'm a princess LOL

Tell me what you think so far, this deal is not open to the public. It's special for friends and family.

in the above case, that's probably not a bad deal. you'll spend $9883 in 3 years, but make sure there is not an end of lease payment. and you'll have an average of 833 miles a month....... only you know if you'll exceed that and best to find out what the cost is per mile for overmilage.

No end of lease payment. The balance will be 38K and I can either give it back, re-lease, or finance it. It's a SWEET car. It's 25 cents per mile for overage but if I keep it, then that doesn't really matter. I have to decide by the end of the month, they rarely do this special.

so you have time to get an insurance quote. that is going to be important also. find out what the insurance requirements are for that vehicle, get ahold of your insurance company, and make sure you can afford that too. my suggestion is go ahead and get the vehicle if you can afford it. you'll depreciate a vehicle 10k in 3 years anyways.

I love it when you hear what you wanna hear

Gotta call the insurance company in the morning, good thing that I have a great driving record.

perhaps you meant "i love it when i hear what i wanna hear"

otherwise, you love it when i hear what i want to hear

Yeah that,,,my mind is focused elsewhere now.

[Ban Hammer 15,188]

For me that would not be a good deal because I drive much more than that per month.

That's because you have to drive 20 min to In-n-out burger

hahaha and 100 miles for weekend golf tournaments haha.

LOL and how far do you have to for Walmart?

About 20 miles.

wow. here it's 20 to the supercenter but only about 12 to the other one.

[eric&gen 0]

Car Value $56,000

What kind of car?

If you can pay cash so you wont have no car payments at all lol buy an old beater lol. Thats enough for a down payment on a nice house lol

[jordanianprincess 0]

Car Value $56,000

What kind of car?

If you can pay cash so you wont have no car payments at all lol buy an old beater lol. Thats enough for a down payment on a nice house lol

MB E350, Loaded

Oh and where I live in Cali, 56K isn't even a 10% down payment on a house. Besides, I won't be paying that much because its only a 27 month term.

Edited December 9, 2006 by jordanianprincess

[Alanlvsjudy 0]

Read the fine print, all of it and very carefully, leasing is a suckers bet, you will regret it. Even if there is no balloon payment(doubtful- fine print) , may as well throw 10K out the window...

Good Luck

[PlatyPius 5]

833 miles a month.... I drive almost that much each week just to go to work.

From the information given, your lease doesn't sound like a bad deal. Generally I avoid leases at all costs, but the payments are low and you get to drive an excellent car for 27 months. Of course, you could buy a brand new Suzuki Aerio for the cost of the lease.... lol

[Ban Hammer 15,188]

833 miles a month.... I drive almost that much each week just to go to work.

From the information given, your lease doesn't sound like a bad deal. Generally I avoid leases at all costs, but the payments are low and you get to drive an excellent car for 27 months. Of course, you could buy a brand new Suzuki Aerio for the cost of the lease.... lol

i don't think a suzuki aerio fits her princess image

[PlatyPius 5]

833 miles a month.... I drive almost that much each week just to go to work.

From the information given, your lease doesn't sound like a bad deal. Generally I avoid leases at all costs, but the payments are low and you get to drive an excellent car for 27 months. Of course, you could buy a brand new Suzuki Aerio for the cost of the lease.... lol

i don't think a suzuki aerio fits her princess image

Aye....cuz cars are all about "image". *rolls eyes* That's all an automaker needs to do.... build a ####### car but market it like mad and charge too much for it. People will buy it.

(For the record, $57,000....while enough to buy a house here..... isn't "too much" for a car in my opinion. It's near the upper limit in my opinion, though.)

[Flames9_RN 359]

Father in law used to lease his cars, could write portions off it off because of his business. Read the fine print, if you do give it back there can be a lot of fees especially if its not in "new" condition ie spill son fabric, tires worn out, can al add up pretty quick. Not saying its a bad deal, one just has to be aware of everything. Like what happens if ur in an accident? Cars worth is a lot less now, do you have to cover that? If one wants a new car every few yrs, leasing can be a good option. lot of websites out their that list the pro's and cons. cheers

[TracyTN 237]

I used to work at a car dealership and the salesmen LOVED leases - mainly because they made a lot of money off them.

How they benefit the buyer, I have yet to figure out. Only, I suppose, if you have lots of $ to toss away, or can guarantee that you won't go over the mileage agreed to.

[MaryandMian 1]

JP I agree leasing is for someone that has extra dollars and does not want to stay in the car until it is paid off and has the advantage of a new car in two or three years. As Tracy said they make the dealerships lots of money since the salesman gets some type of commission and the insurance companies benefit too. And leases are strict on mileage and the condition the car is returned.

I worked for Farmer's Insurance and Toyota for example is one of the most popular cars we had insured and several on leases. The car manufacturer told the insurance agency what types of limits to set for the coverage. They required the higher or highest limits of liability on your policies and if you were late they would automatically contact the local agent and see if you had paid the premiums and if not guess what? They had their own insurer and it was more expensive and they would just start up the policy and add it to your payments until you showed you were current with your own company.

[LaL 418]

i lease everytime. THAT is my only *princess* characteristic. a car is a necessity, and i don't want to deal with any maintenance. i have fantastic credit and usually get excellent deals so i dont lose too much.

ETA : for response to what Mary stated on insurance, many policies require 100/300 for its MINIMUM for a leased car. that's still not very high, if you have anything to protect you would have at least those limits anyway. the only *tricky* part i found was getting GAP insurance written out of leases. its costs ALOT if going through the finance company, but pennies through your insurance company (depending of course).

Edited December 9, 2006 by lal_brandow

[jordanianprincess 0]

I'm not really worried about the salesman making any money, he is my uncle and this is a special deal for friends and family. If you were to come in off the street you would have to put $4500 down and pay $599 a month for the same exact car/deal.

I can afford the payments/insurance, thats not a problem. This payment is actually less than my current car payment and its a whole lot more of a car.