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Non Gaming Discussions => Off-Topic => Topic started by: videoholic on July 23, 2002, 01:44:02 PM
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I am pondering something here.
Say you do a lease for 3 years.
After 3 years you walk away from it you don\'t own anything. You pay tax on the truck monthly so you aren\'t paying tax on the full amount.
Say you buy the car and make 72 months of payments. After 3 years do you have any equity in the car? I doubt it. With the car devaluing and the tax/interest you owe off the top, it just doesn\'t seem like you would have any equity.
My point is would I be about even after 3 years if I were to lease a car rather than buying it?
If the payment is 100 bucks less then it seems I could use that 3600 bucks on something else.
What am I missing here.
I\'m really torn. I\'m looking at replacing my truck rather than my car right now and the new Expeditions are freaking sweet.
What are the negatives of leasing.
I already know about keeping under the bought miles.
There are usually some insentives when you go to trade in your leased car going into a new car. At least I know tere are some now anyway.
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I\'m not familiar with the system in the US, but normally I would stay away from leasing... I prefer to own my own shit. Basically, if you\'re paying 3 years on a car - after those three years if you stop paying you don\'t have a car. Those payments didn\'t go into a car... they just went into \'nothing\' (but of course you got a ride for those years). I think I\'m rambling now... but as I said, I prefer buying.
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That\'s my question though.
Say I am buying the car. I am making payments on the ar as if I am buying the car.
With depresiation on the car, will I have any equity in the car at all after 3 years anyway?
I did an amortization schedule on a 38,000 loan. After 3 years I still owe 21000.
Now it\'s tough to say in three years what an eddie bauer expedition will be worth, but I bet it\'s only about 22 grand.
I dunno. They offered me a 38000 truck for 31,000. I am buddies with the local Ford Dealership since my show uses them a lot.
I am just really stuck between leasing and buying.
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I lease my truck.... I guess I\'m happy with it, only because I can\'t seem to find a vehicle that I think I would want after 3 years. Besides, I can\'t think of a vehicle that is worth anything after 3 years. I only have 6 months left on this lease, I am 6,000 miles under where I should be, and the truck is in nice shape. I should do alright when I turn it in. I think I\'m gonna get a Jeep Wrangler next, tho- I\'m a little sick of the S-10....
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The new Expeditions are very nice. I say.......well.....I would just buy it but when you lease it, there are other hidden charges. They get you for the amount of tread you use on the tires (believe it) sometimes even how many miles are on the car. If there is a broken part on the car, you pay for it. A worn part, you pay for it. If you wreck it, well.....insurance takes care of it. Just buy it. You can sell it in three years for a bit less, if it\'s in good condition.
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thats\' the other thing. I have a pal who is the regional car buyer for Thrifty car rental. He says that they are a GMAC dealer, and I could turn in my truck there. AND I could buy it out at the real value (not +$2000 like at a dealrship....)so I could buy out my 2000 s10 auto with cruise, tilt air, mags split window, etc....
for probably like $8 grand..... But I am a little sick of my truck. (althogh it has never had any problems....)
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And dealers try and make you buy the car by persuasion. When my dad was looking for a truck a while back, the guy was too persistant. He tried to force this truck on him. He actually went inside to get buying papers for my dad to sign and he left while the guy went inside.
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Ben high, that\'s kind of my point. You only trade in the equity you have in the car. If after three years you have no equity in the car, then what\'s the difference between buying and leasing.
I\'m not being pressured into buying this car at all which is very nice. The guy knows me and knows that I am not going to fall for the little things.
I\'m just so freaking into that truck. The changes in the 03 are sweet.
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ACtually I did a Kelly Blue Book on a 2000 Expedition and it is like 23 grand. That is a 3 year old car.
And I hav yet to find a place that gives over blue book value on a trade in. If they do then they are just not coming down on the price of the car as much.
I am getting the truck at invoice. Hands down. So he isn\'t going to bull shit me on my trade in.
I really want to buy the truck. I guess it depends on the payment and how it all works out. The guy knows I\'m not going to be ready for a few weeks so it\'s nce that I\'m not being hassled.
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Well, whatever you end up doing, good luck bro. Lemme know what kinda PHAT ASS ride tha vid-hole is pimpin\' his jimmy in!
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I strongly feel that leasing is a sucker\'s deal. There\'s no point in going into all the details because there are tons of websites that describe all the ins and outs of leasing. Basically, I think there are rare circumstances where it can work to your advantage (and those are almost ALWAYS with domestic vehicles like the one you\'re considering), but it largely depends on how you negotiate your deal, and what terms the dealer sets.
Dealers have a much broader horizon of ways to screw you in lease deals than they do in simple purchase financing. You really have to know what you\'re talking about when making a lease deal, and it helps to have a pocket PC with you so you can analyze different scenarios in real time while you\'re sitting in the salesman\'s office. I\'ve known so many people who relied on what the salesman told them, and then found out later that the weasel snuck something in which resulted in the person paying thousands more than they should have.
For me, I simply don\'t want to be making car payments every year of my life. I always save a considerable amount before each purchase, and then finance the smallest amount possible for the shortest amount of time possible. I saves me money in interest, but the real advantage is that I can enjoy my life much more during those 3-4 years between paying off the loan and buying the next car. I don\'t like being owned by the finance companies, or feeling like a slave to my car payments.
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Vid, how much is the lease per month?
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I dunno yet. I am still talking to the guy. I am having him work up some numbers. I\'m not doing any of this there in the office. Everything is just done over the phone. I\'ll have him fax over some numbers.
Remember, this isn\'t a regular go into a dealership and get ready to bend over.
I may not get it anyway. I just really hate my truck. It rides like shit and I absolutely refuse to go and spend cash on it when it isn\'t worth shit.
I dunno. Got some thinking to do.
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Then just get an Audi TT. :p
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When you lease, you won\'t be seeing any moeny after the lease..the car\'s value is a moot point when leasing since you are only giving back to a dealer. You will be lucky if you dont come out paying extra at lease end.
If you lease, which is cool if you want a new car every 1-3 years, just make sure you read and understand EVRYTHING on the lease agreement. Make sure you ask PLENTY of questions as well.
If you buy, just make sure you buy something that has good/great resale..IE..some kind of import. Think of it this way, as far as the expedition is concerned. It\'s already been out for 2 years in it\'s current incarnation, so if you end up buying that now, once the new or re-vamped model comes out, you will be near or finished paying for the truck. The bad side to that is the truck will be worth even less b/c
A. It\'s a ford
and
B. The newer model is out.
Anywho..it\'s really your choice though. What do you see in 2-3 years from now? Wanting something else or happy with the same vehicle? That should help you decide if you want to buy or lease.
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Ford expedition is crap, it would be better to get the GMC Envoy
as for yer question, like luckee said if u want to change cars every couple of years then lease it else just buy it.
:)
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Luckee, do a little homework on the Expedition. It is a total redesign this year.
Front to back
Independent rear suspension.
The thing is heads and tails better than the 2002.
Which I agree is a mistake to get because the \'03\'s are far and away a much better truck.
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I don\'t understand why anyone buys SUVs anyway, especially men. I can sort of understand why women buy them... They like to think the vehicle will protect them from carjackings, and they are less confident about their driving, so they think it\'s an advantage to have a higher profile, and think the vehicle will be easier to drive. I believe they also mistakenly think that SUVs are safer in the event of an accident.
Still, I don\'t understand why men buy them. Why are the "cool" with men? I mean it\'s a total chick vehicle, it\'s a grocery getter, and most of the ones people buy couldn\'t even survive 10 minutes offroad. It\'s like a slightly cooler minivan, which isn\'t saying much. Men should be more interested in buying sport sedans; something which can go fast and handle well, since those are qualities women don\'t appreciate. The whole SUV craze has had me scratching my head for years. I have ZERO interest in them.
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I love you Coredweller. Please marry me. :)
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Are you sure you\'re willing to sign my prenup? :laughing:
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Originally posted by Coredweller
Are you sure you\'re willing to sign my prenup? :laughing:
Hmm... I\'ll have to think about that. ;)
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coredweller i cannot see why u dont like cars like
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only reason i can think of is that youre crazy:p.
*i just hope no-one gets any red X\'s*
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Trucks = teh ghey. ;)
I prefer sports cars and coupe\'s and the like.
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Well first of all the car that I will be getting for me will be a BMW. It just so happens that our Explorer is what is going out on me first.
2ndly to each his own. The SUV is a great truck as far as I am concerned. I do a heck of a lot of stuff with work hauling parts and such around and the back of the truck is great for it.
Who in the hell drives SUVs off road? You make no sense.
If I wanted a car right now to buz around corners and go fast then do you really think I would be buying an SUV? I think it may have something to do with what I want to do with the thing.
Why would an Expedition gaurd you from Car jackings? That makes no sense what so ever. If a guy comes at you with a gun it doesn\'t matter what kind of car you drive they will still get in and take it.
SUVs are definitely safer in an accident then a small sporty car. The weight dispersment alone would make a huge difference.
OK, back on topic.
I learned quit a bit today from my sales guy. He told me that leasing really isn\'t what it use to be. Ford use to make the close end leases rather appealing because they would say the car is worth say 16 grand at the end of the lease making your payments lower. Well at the end of your lease if your car is only worth 12 grand then they had to eat that 4 grand when they sold the car at auction. So now they make the close end leases a little more realistic which really cuts any savings you would have over purchasing the car out.
Unless of course they are running an incentive deal or something.
So that puts me back to square one. Driving my POS Explorer around which I have to agree with Cored on that one. I hate the truck. It doesn\'t ride nice like the bigger SUVs ride. It rides like crappola.
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Originally posted by Videoholic
Who in the hell drives SUVs off road? You make no sense.
Why would an Expedition gaurd you from Car jackings? That makes no sense what so ever. If a guy comes at you with a gun it doesn\'t matter what kind of car you drive they will still get in and take it.
SUVs are definitely safer in an accident then a small sporty car. The weight dispersment alone would make a huge difference.
I have no objection with people who actually use an SUV for what it\'s intended for like moving lots of people or lots of stuff. Unfortunately you usually see them being driven by one person (usually a woman) commuting to work by herself.
"Who in the hell drives SUVs off road?" My point exactly. There\'s nothing macho about them because most of them aren\'t even capable of driving offroad, even though that is how they are marketed.
"Why would an Expedition gaurd you from Car jackings?" It doesn\'t. But women think it does. I think that\'s one of the reasons they like it. ???
"SUVs are definitely safer in an accident then a small sporty car. The weight dispersment alone would make a huge difference." Not true. Why would having a higher center of gravity make it safer? That makes it more difficult to handle in emergency manuvering situations. Also, SUVs are technically classed as trucks, so they don\'t have to meet the same safety standards that passenger cars do. The do not meet the same rollover standards, which means that many people have been killed when their SUV rolled over, and the roof structure collapsed. Also, inexperienced drivers feel more invulnurable in them, so they tend to drive them like cars, and put them into dangerous high speed handling situations that the SUV is not suited for. And that\'s just accounting for safety issues to the people within the SUV. I think they definitely cause more problems than they solve, safety-wise.
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Originally posted by Tyrant_246
coredweller i cannot see why u dont like cars like
only reason i can think of is that youre crazy:p.
*i just hope no-one gets any red X\'s*
HEH, basically you say "what\'s not to like?" and I say "what about it could possibly be appealing?" I\'m the one who doesn\'t understand it, but apparently you do, so you should be explaining it to me. All I see is a big bulbous massive lump of metal and plastic that looks like some kind of bookmobile from the 70\'s. There\'s nothing emotionally appealing about it, nothing technologically thrilling about the performance or handling, and nothing visually pleasing to me. In addition, mostly women drive them, so you\'re aligning yourself with the soccer moms and young professional women who don\'t give a damn about cars. As men, we should be longing for cars that are more cutting edge than this.
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I didn\'t say higher center of gravity. I said higher weight dispersment. They are built much different today then they were even only a couple years ago. They sit lower and have a very wide stance. They aren\'t nearly as prone to roll overs as they use to be. And that is another big reason why I want to get rid of my explorer. It sits high. I hate it. I feel like my center of gravity is high like you speak of.
The expedition on the other hand is totally different. Much much wider truck and a totally different ride. The independent rear suspension does a lot as well which they have just added this year. The explorers added it last year and they supposedly ride better, but I don\'t want that truck cause it isn\'t what I am looking for.
I often times haul 5 people and leave others to ride in a seperate car. Expedition can seat 7 comfortably.
We\'ll see. Heck it will end up being my wifey\'s car anyway once we go and get me a new car. I miss having a sports car. But at least I haven\'t gotten any tickets in a while.
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im on my second lease in 4 years im pretty pleased with them so far their great if you dont rack up to many miles(im alloted 15,000 miles a year or 60,000 miles total on this new one)my 1st car was a $19k cavalier wich cost me $700 when i leased it and $330 a month(better credit rating would have gotten me a lower payment) i was 6000 miles over me limit at the end of the lease which would have cost me $1200 out of pocket but the finance guy at my dealership knocked that off the total price of my new car and finaced it though the lease and gave me a check for $1200 to give to GMAC for my over limit fee so all my second car cost me was $75 for plate transfer and now i have a $23k car that i only pay $340 a month for 4 years and when those 4 years are up i can buy it for $10k and finance that over 5 years
i hope that little story helps
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Originally posted by Videoholic
Luckee, do a little homework on the Expedition. It is a total redesign this year.
Front to back
Independent rear suspension.
The thing is heads and tails better than the 2002.
Which I agree is a mistake to get because the \'03\'s are far and away a much better truck.
If I remember correctly...the model in which you are talking came out in late 2k1 as a early 2k2. All in all, its still a ford.
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Originally posted by Jar O\' Pickles
im on my second lease in 4 years im pretty pleased with them so far their great if you dont rack up to many miles(im alloted 15,000 miles a year or 60,000 miles total on this new one)my 1st car was a $19k cavalier wich cost me $700 when i leased it and $330 a month(better credit rating would have gotten me a lower payment) i was 6000 miles over me limit at the end of the lease which would have cost me $1200 out of pocket but the finance guy at my dealership knocked that off the total price of my new car and finaced it though the lease and gave me a check for $1200 to give to GMAC for my over limit fee so all my second car cost me was $75 for plate transfer and now i have a $23k car that i only pay $340 a month for 4 years and when those 4 years are up i can buy it for $10k and finance that over 5 years
i hope that little story helps
So your $23,000 car will cost you $16,320 over four years, and you\'ll still have to pay $10,000 more to keep it at that point, in which case it would cost you $3,320 more than it was worth new.
Instead of doing that, you should finance it over five years, and if it\'s a domestic car you should be able to get 0% financing. That would cost you $384.00 per month, and then after five years you would own an ASSET that you could keep or trade in, enabling you to buy your next car for even less. Or, you could keep it and have no car payments for a while.
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Originally posted by Coredweller
So your $23,000 car will cost you $16,320 over four years, and you\'ll still have to pay $10,000 more to keep it at that point, in which case it would cost you $3,320 more than it was worth new.
Instead of doing that, you should finance it over five years, and if it\'s a domestic car you should be able to get 0% financing. That would cost you $384.00 per month, and then after five years you would own an ASSET that you could keep or trade in, enabling you to buy your next car for even less. Or, you could keep it and have no car payments for a while.
two things with that 1st they dont just give you that 0% you have to qualify for it (which i dont) and you have to make a down payment the worse your credit the higher the down payment you have to make
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Originally posted by Videoholic
Why would an Expedition gaurd you from Car jackings? That makes no sense what so ever. If a guy comes at you with a gun it doesn\'t matter what kind of car you drive they will still get in and take it.
An Excursion will ;) Those things are so big that you need mountain climbing equipment to get up to the driver\'s door. They have terrible gas milage too. They didn\'t last too long over here.
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Originally posted by luckee
If I remember correctly...the model in which you are talking came out in late 2k1 as a early 2k2. All in all, its still a ford.
It came out a couple weeks ago and it\'s a front to back redesign.
Sorry it\'s not a dodge neon, but hey, to each his own.
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Actually Cored about the 0% financing. Quite often they take away all cash rebates when they give you 0% financing, so it really isn\'t 0%. It\'s a little better than 5.49% though. 5.49% is still pretty darn low. They aren\'t offering that on the 03 expedition though. Only the 02 because the 02 is going to be hard for them to get rid of since this was a model change.
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:laughing: :laughing: :laughing: