Question ???!!!!
- Thread starter fonz5000
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buying Vs. leaseing
I've never leased, but more cash is due at signing but you'll have lower monthly payments. At the end of your lease you'll have the option of buying your truck. Leases are good if you don't do too much driving or they'll be penlty for going over your agreed miles (usually 12,000, unless you get the "high" mile option).
personally I would buy and trade it in when the time comes. the way i see it you pay on that vehicle for 3 or more years and at the end of that time you have nothing plus you can't add any mods. my $.02
I've never leased, but more cash is due at signing but you'll have lower monthly payments. At the end of your lease you'll have the option of buying your truck. Leases are good if you don't do too much driving or they'll be penlty for going over your agreed miles (usually 12,000, unless you get the "high" mile option).
personally I would buy and trade it in when the time comes. the way i see it you pay on that vehicle for 3 or more years and at the end of that time you have nothing plus you can't add any mods. my $.02
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Yeah I thought about buying, but I wanted a lower payment for the next few years.
I have a friend that owns a Chevy/Cadillac dealership and he is ordering all the accessories I want and just building the cost into the lease. I am a little worried about the miles, but he is getting me the 15,000/yr lease.
I was just wondering if anyone has gone this route and what their payments were to do this. He can't build me a lease program until April and the new GM deals come out.
I appreciate the opions.
THanks
I have a friend that owns a Chevy/Cadillac dealership and he is ordering all the accessories I want and just building the cost into the lease. I am a little worried about the miles, but he is getting me the 15,000/yr lease.
I was just wondering if anyone has gone this route and what their payments were to do this. He can't build me a lease program until April and the new GM deals come out.
I appreciate the opions.
THanks
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Fleasing a vehicle is nothing more than am expensive way to rent a vehicle.
scooterpie555
New Member
Would you rather rent a house or own it. I have always thought buying was the way to go. yeah your payments are a little higher, but it's yours!! if you want out in a year, then trade it or sell it. With a lease you'll have to buy out of a lease. But since your friend is the dealership, you might be ok, but where are both of you going to be in 1, 2, or 3 years...
Ned's LTZ
Full Access Member
my vote is to purchase instead of lease...but only if you cannot expense the lease to a business, or corp. If you can expense it (tax return), lease would probably be better. ( I have never leased anything) You will also have to watch the "wear and tear" bill at the end of your lease. good luck
In today's day you SAVE more money renting a house against buying. Speaking as an expert in the Miami Real Estate market. It is a much wiser investment for someone looking for housing to rent for a year or two, than to buy a house and have its value depreciate plus pay taxes plus pay insurance on it.
As for leasing a car it has its advantages, especially if it's going under the name of a business.
If you are like me that enjoy having a brand new car every couple of years without having to spend a dime to maintain it during the warranty years, pay less out of pocket (negotiate) and pay less monthly,
THEN LEASING IS FOR YOU.
That is a pretty broad generalization. You are correct if you plan on owning a house for "a year or two", but you are flat out wrong on the long term.
The same applies to leasing a car. If you only want to own if for two, three years, then lease it. If you want to keep it for a long time, buy it.
That's what I meant and that's why I wrote it that way, GENERALLY housing is a long term decision. As for me a single male 27 years old it will be a 2 to 3 year ordeal. And in the current real estate market here in miami its looking ugly. Anyways that neither here nor there. Good luck on your tahoe I know I can't wait for mine. And I will be leasing my 09 tahoe souped to the bones. In which I only plan on doing a vehicle wrap (for advertising my business) projector lights with hid kit and rims. All which can be removed and used again for next truck or sold.
leasing is the way
There are so many things to consider when you are about to take a decision on what to do ... purchase or lease...????
Leasing is not for everybody...!!!
But if you check the odometer in your car and compare it with the amount of miles that this one had (used veh) when you purchased it...and estimate an average mileage per year, come to the conclusion of which one to consider 12000 or 15000 (some dealership also offer 20000).
Leasing is all about freedom, if you like a new car every 2 or 3 years (statistics says that's the average period for a regular american driver to be ready to trade-in) with the leasing options you can do it. You can drop it, trade it for another one, purchase it or sell it, yeah you can sell to somebody and keep the profit (selling it through the dealership).
When Buying a car you have limited choices, selling it outright or trading in.
For me the best choice is leasing because gives me the peace of mind that I always will be driving a newer vehicle and a vehicle under warranty.
There are so many things to consider when you are about to take a decision on what to do ... purchase or lease...????
Leasing is not for everybody...!!!
But if you check the odometer in your car and compare it with the amount of miles that this one had (used veh) when you purchased it...and estimate an average mileage per year, come to the conclusion of which one to consider 12000 or 15000 (some dealership also offer 20000).
Leasing is all about freedom, if you like a new car every 2 or 3 years (statistics says that's the average period for a regular american driver to be ready to trade-in) with the leasing options you can do it. You can drop it, trade it for another one, purchase it or sell it, yeah you can sell to somebody and keep the profit (selling it through the dealership).
When Buying a car you have limited choices, selling it outright or trading in.
For me the best choice is leasing because gives me the peace of mind that I always will be driving a newer vehicle and a vehicle under warranty.
Leasing is the way to go.
There are so many things to consider when you are about to take a decision on what to do ... purchase or lease...????
Leasing is not for everybody...!!!
But if you check the odometer in your car and compare it with the amount of miles that this one had (used veh) when you purchased it...and estimate an average mileage per year, come to the conclusion of which one to consider 12000 or 15000 (some dealership also offer 20000).
Leasing is all about freedom, if you like a new car every 2 or 3 years (statistics says that's the average period for a regular american driver to be ready to trade-in) with the leasing options you can do it. You can drop it, trade it for another one, purchase it or sell it, yeah you can sell to somebody and keep the profit (selling it through the dealership).
When Buying a car you have limited choices, selling it outright or trading in.
For me the best choice is leasing because gives me the peace of mind that I always will be driving a newer vehicle and a vehicle under warranty.
There are so many things to consider when you are about to take a decision on what to do ... purchase or lease...????
Leasing is not for everybody...!!!
But if you check the odometer in your car and compare it with the amount of miles that this one had (used veh) when you purchased it...and estimate an average mileage per year, come to the conclusion of which one to consider 12000 or 15000 (some dealership also offer 20000).
Leasing is all about freedom, if you like a new car every 2 or 3 years (statistics says that's the average period for a regular american driver to be ready to trade-in) with the leasing options you can do it. You can drop it, trade it for another one, purchase it or sell it, yeah you can sell to somebody and keep the profit (selling it through the dealership).
When Buying a car you have limited choices, selling it outright or trading in.
For me the best choice is leasing because gives me the peace of mind that I always will be driving a newer vehicle and a vehicle under warranty.
Thanks for the input everyone.... I do fit into the category as a person who like to drive something different every 3-4 years. I have struggled not selling my current car and now it has been 6 years and it feels about 2 years past due.
Really, buying a car and then trading it in after a few years is basically like leasing.... You usually only get back what you owe on it but then you also have more expensive payments when you buy as well.
Thanks again.
Well that is encouraging. I will be putting more $$$ down so that should make my payment even a little cheaper too. But I was looking at the same fully loaded LTZ as well. Thanks for the detailed info. I have just never leased before and didn't know what payment to expect.
JD Larue
Full Access Member
OK, first of all who could have ever envisioned an SUV costing $50,000.00? Ridiculous and a rip off. I bought my first Bronco for $15,000.00. But oh well, since they do cost that much now you've gotta put down a horrendous amount of money to keep your payments affordable if you buy. So I lease. Payments still over $600 a month and if you'd told me 20 years ago I'd be paying $600.00 a month for a car I'd have said your nuts! NO WAY!! Well, here we are in 2008 and I'm paying over $600 a month for a leased car.
Anyway, I'll climb down off the soap box now. So I turn my cars over every few years and I lease cause the payments cheaper and it's always covered by warranty. Bottom line.
Anyway, I'll climb down off the soap box now. So I turn my cars over every few years and I lease cause the payments cheaper and it's always covered by warranty. Bottom line.
Leasing is a great way to go. Many valid points above, including
1) generally lower monthly payments because you are only "using" basically half of the vehicle (residual values generally in the 50% range)
2) ability to easily switch to a new model every few years (and no hassle of trying to sell your vehicle or get robbed on a trade-in when you own it)
3) having a vehicle that is always under warranty (general 36-39 mo leases keep you warrantied the whole time), so no out of pocket expenses for out of warranty repairs
4) having generally much lower expenses for items like tires, brake pads, fluids, and other wearable items, since most of these will last the length of the lease if you drive right
5) not having to worry about serious deflation in value - take for example, the guy who thought leasing was stupid, and who went out and bought a 2007 Chevy Malibu...well, here comes the 2008 Malibu, a light years better car in all respects, and his '07 model depreciates like mad! The guy who leased an 07 Malibu simply turns his in at the end of lease and let's the dealer worry about the value. You could insert any number of vehicles here and have similar results...
6) Gap insurance (all GMAC leases have, so do most others) - if you're leased vehicle is in an accident and totaled, you're off the hook, rather than dealing with an insurance company and figuring out how much it is worth, etc...
My 04 GTO was a perfect example...I leased for 36 mos. At the end of the lease, unfortunately, the car was falling apart (rear end whine, driveline linkages clunking like mad, interior pieces coming off, electronics bugging out, door locks having a mind of their own, etc) - if I'd have OWNED that car, and I would have wanted to get out of it, I'd have been stuck fixing all these things on my own...now, you could rightly argue that at that specific time it was still under the 36k warranty (which I was, just barely), I could have had most of these issues fixed at dealer. But the car was just not holding up well at all, seemed like itw as one thing after another, so my bet is that things would have continued to go wrong after the warranty expired. Add in the fact that the GTOs were not selling well at all, and were being cancelled...values were dropping. The biggest problem was that there were thousands of unsold GTOs on dealers lots, and you could get a NEW GTO for less than what a used one should have been getting based on the residual values! So owners of 04s were getting truly shafted... Also, the 05 and 06s had more power, new LS2 (vs LS1), different styling (although I preferred the more low profile of the 04s), and the values on 04s were dead. Sure, some people will hang onto them "forever" (that's always the claim), but for anyone looking to get out, it was horrible for those who bought. Those of us who leased, we simply handed in the keys and said goodbye...now, I loved the GTO, it was a very fun car, but seeing how it didn't exactly last very well past 30k miles, I am super glad I didn't buy.
Now, being someone who likes getting into new vehicles every few years, I love leasing. I also am lucky that I don't generally drive more than 12-15,000 miles per year, so it works for me. If you drive more than that, leasing won't work. And contrary to popular belief, leasing doesn't automatically mean huge down payments - I NEVER pay cash out of pocket on my leases, that's stupid money management whether you buy OR lease...put your money to work! I always do zero driveoffs, except for first months payment and dmv fees...
If you're a GM fan, like myself, then you take advantage of the various programs and rebates - like having a GM Mastercard to earn points on next vehicle purchase/lease, utilizing early "turn-in" offers to get out of your current lease and into another one with no penalties, and of course watching for special rebates and programs!
I leased my 07 3LT, with sticker of $49k (purchase price of $45k-ish), with zero down, 1st months payment and dmv paid, no security (multiple GM customer), 39 mo lease, for $482/mo, including taxes. Now, one caveat is that I did use $2k of GM points (GM was nice enough to "round up" my approx $900 GM points at the time to the $2k figure - thanks GM!) and if I remember right, there was a $500 dealer rebate thrown in also...so theoretically, you could say I "put" $2500 down (although NONE out of my own pocket!), which equals roughly $70 or so in monthly payment reduction (just under $30 per $1000 down is rough estimate).
You just have to know how to play the game with the dealers and GM, or whoever you are dealing with...they all offer programs and rebates and holdbacks, etc...do your homework and you'll be rewarded.
Will some people always want to own their vehicles, just because they like the thought of "owning" it? Sure...does it always make sense monetarily? Lots of variables to consider, but I'd argue the answer is NO for a lot more people than you think...but again, everyone's needs are different. For someone of my profile, leasing is the way to go... :thumbsup:
Wow, sorry for the long post, guess I just kept writing!
1) generally lower monthly payments because you are only "using" basically half of the vehicle (residual values generally in the 50% range)
2) ability to easily switch to a new model every few years (and no hassle of trying to sell your vehicle or get robbed on a trade-in when you own it)
3) having a vehicle that is always under warranty (general 36-39 mo leases keep you warrantied the whole time), so no out of pocket expenses for out of warranty repairs
4) having generally much lower expenses for items like tires, brake pads, fluids, and other wearable items, since most of these will last the length of the lease if you drive right
5) not having to worry about serious deflation in value - take for example, the guy who thought leasing was stupid, and who went out and bought a 2007 Chevy Malibu...well, here comes the 2008 Malibu, a light years better car in all respects, and his '07 model depreciates like mad! The guy who leased an 07 Malibu simply turns his in at the end of lease and let's the dealer worry about the value. You could insert any number of vehicles here and have similar results...
6) Gap insurance (all GMAC leases have, so do most others) - if you're leased vehicle is in an accident and totaled, you're off the hook, rather than dealing with an insurance company and figuring out how much it is worth, etc...
My 04 GTO was a perfect example...I leased for 36 mos. At the end of the lease, unfortunately, the car was falling apart (rear end whine, driveline linkages clunking like mad, interior pieces coming off, electronics bugging out, door locks having a mind of their own, etc) - if I'd have OWNED that car, and I would have wanted to get out of it, I'd have been stuck fixing all these things on my own...now, you could rightly argue that at that specific time it was still under the 36k warranty (which I was, just barely), I could have had most of these issues fixed at dealer. But the car was just not holding up well at all, seemed like itw as one thing after another, so my bet is that things would have continued to go wrong after the warranty expired. Add in the fact that the GTOs were not selling well at all, and were being cancelled...values were dropping. The biggest problem was that there were thousands of unsold GTOs on dealers lots, and you could get a NEW GTO for less than what a used one should have been getting based on the residual values! So owners of 04s were getting truly shafted... Also, the 05 and 06s had more power, new LS2 (vs LS1), different styling (although I preferred the more low profile of the 04s), and the values on 04s were dead. Sure, some people will hang onto them "forever" (that's always the claim), but for anyone looking to get out, it was horrible for those who bought. Those of us who leased, we simply handed in the keys and said goodbye...now, I loved the GTO, it was a very fun car, but seeing how it didn't exactly last very well past 30k miles, I am super glad I didn't buy.
Now, being someone who likes getting into new vehicles every few years, I love leasing. I also am lucky that I don't generally drive more than 12-15,000 miles per year, so it works for me. If you drive more than that, leasing won't work. And contrary to popular belief, leasing doesn't automatically mean huge down payments - I NEVER pay cash out of pocket on my leases, that's stupid money management whether you buy OR lease...put your money to work! I always do zero driveoffs, except for first months payment and dmv fees...
If you're a GM fan, like myself, then you take advantage of the various programs and rebates - like having a GM Mastercard to earn points on next vehicle purchase/lease, utilizing early "turn-in" offers to get out of your current lease and into another one with no penalties, and of course watching for special rebates and programs!
I leased my 07 3LT, with sticker of $49k (purchase price of $45k-ish), with zero down, 1st months payment and dmv paid, no security (multiple GM customer), 39 mo lease, for $482/mo, including taxes. Now, one caveat is that I did use $2k of GM points (GM was nice enough to "round up" my approx $900 GM points at the time to the $2k figure - thanks GM!) and if I remember right, there was a $500 dealer rebate thrown in also...so theoretically, you could say I "put" $2500 down (although NONE out of my own pocket!), which equals roughly $70 or so in monthly payment reduction (just under $30 per $1000 down is rough estimate).
You just have to know how to play the game with the dealers and GM, or whoever you are dealing with...they all offer programs and rebates and holdbacks, etc...do your homework and you'll be rewarded.
Will some people always want to own their vehicles, just because they like the thought of "owning" it? Sure...does it always make sense monetarily? Lots of variables to consider, but I'd argue the answer is NO for a lot more people than you think...but again, everyone's needs are different. For someone of my profile, leasing is the way to go... :thumbsup:
Wow, sorry for the long post, guess I just kept writing!
kpanza........... Wow... Great write up. You just confirmed all of my feelings on leasing vs. buying and I am definitely leasing.
I also spoke with a Finance Manager at a big dealership and he said that leasing is the only way to go unless you plan on keeping your vehicle for a long time after it's paid off.
Thanks again for the input.
I also spoke with a Finance Manager at a big dealership and he said that leasing is the only way to go unless you plan on keeping your vehicle for a long time after it's paid off.
Thanks again for the input.
Yeah, there are those who buy a vehicle and hold onto it til the wheels fall off, and they are definitely better off buying. Or, those who like to modify their vehicles (lift kits, serious engine mods, body modifications, etc), which would not fly under a lease turn-in. And of course those who drive more than 15k miles a year...
But leasing is a great way to go if it fits your needs as I described above. An added bonus is that just about every manufacturer is smart enough to start sending you letters many months (I usually get them at least 9 months in advance from GM) in advance enticing you to turn the lease vehicle in early ("pull ahead") and getting a new vehicle with them again. This benefits the manufacturer by retaining a customer and moving another vehicle, but it can be VERY beneficial to you as a customer. My last three GMs have been this way, and in effect, it gives me a few thousand extra miles "free" to use, since I can almost guarantee I'll be turning in the vehicle several months in advance of the actual scheduled termination date. In the past, it has saved me from having to buy new tires for a car before turn in, and even the excess mileage charges since one year I drove much more than I had planned...but because I turned it in early and "pulled ahead", I got out of it.
Anyways, it's not for everyone, but it would be wise to at least consider it to see if it fits you...a lot of people just dismiss it out of hand, but you owe it to yourself to at least do the numbers. Just my opinion.
There are also some cars that I would never lease, like for example, when I can finally afford to get my Z06 Vette! I'll have that thing forever as my baby, so obviously I'll happily purchase it!
But leasing is a great way to go if it fits your needs as I described above. An added bonus is that just about every manufacturer is smart enough to start sending you letters many months (I usually get them at least 9 months in advance from GM) in advance enticing you to turn the lease vehicle in early ("pull ahead") and getting a new vehicle with them again. This benefits the manufacturer by retaining a customer and moving another vehicle, but it can be VERY beneficial to you as a customer. My last three GMs have been this way, and in effect, it gives me a few thousand extra miles "free" to use, since I can almost guarantee I'll be turning in the vehicle several months in advance of the actual scheduled termination date. In the past, it has saved me from having to buy new tires for a car before turn in, and even the excess mileage charges since one year I drove much more than I had planned...but because I turned it in early and "pulled ahead", I got out of it.
Anyways, it's not for everyone, but it would be wise to at least consider it to see if it fits you...a lot of people just dismiss it out of hand, but you owe it to yourself to at least do the numbers. Just my opinion.
There are also some cars that I would never lease, like for example, when I can finally afford to get my Z06 Vette! I'll have that thing forever as my baby, so obviously I'll happily purchase it!
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