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Author Topic: Lease vs Buy  (Read 873 times)

Offline videoholic

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Lease vs Buy
« on: July 23, 2002, 01:44:02 PM »
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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Offline Samwise
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Lease vs Buy
« Reply #1 on: July 23, 2002, 01:47:35 PM »
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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Offline videoholic

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Lease vs Buy
« Reply #2 on: July 23, 2002, 02:01:47 PM »
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.
I wear a necklace now because I like to know when I\'m upside down.
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Offline CHIZZY

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Lease vs Buy
« Reply #3 on: July 23, 2002, 02:27:19 PM »
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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Offline Titan

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Lease vs Buy
« Reply #4 on: July 23, 2002, 02:27:27 PM »
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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Offline CHIZZY

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« Reply #5 on: July 23, 2002, 02:36:25 PM »
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....)
Dinosaurs were killed in the flood. -#RaCeR#
Halle Berry just loves to give me the \"Dutch Oven\". That\'s why I stopped going down on her. It pisses me off so much that I just bang her til she faints. Bitch.-GmanJoe
i just try to make my sefhappy , by beng i company of fri

Offline ben_high
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Lease vs Buy
« Reply #6 on: July 23, 2002, 02:39:51 PM »
.
« Last Edit: August 12, 2002, 07:32:04 PM by ben_high »
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Offline Titan

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Lease vs Buy
« Reply #7 on: July 23, 2002, 02:40:36 PM »
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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Offline videoholic

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« Reply #8 on: July 23, 2002, 03:08:45 PM »
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.
I wear a necklace now because I like to know when I\'m upside down.
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Offline ben_high
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Lease vs Buy
« Reply #9 on: July 23, 2002, 03:23:26 PM »
.
« Last Edit: August 12, 2002, 07:32:41 PM by ben_high »
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Offline videoholic

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« Reply #10 on: July 23, 2002, 03:48:22 PM »
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.
I wear a necklace now because I like to know when I\'m upside down.
 kopking: \"i really think that i how that guy os on he weekend\"
TheOmen speaking of women: \"they\'re good at what they do, for what they are.\"
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Offline CHIZZY

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Lease vs Buy
« Reply #11 on: July 23, 2002, 06:06:58 PM »
Well, whatever you end up doing, good luck bro. Lemme know what kinda PHAT ASS ride tha vid-hole is pimpin\' his jimmy in!
Dinosaurs were killed in the flood. -#RaCeR#
Halle Berry just loves to give me the \"Dutch Oven\". That\'s why I stopped going down on her. It pisses me off so much that I just bang her til she faints. Bitch.-GmanJoe
i just try to make my sefhappy , by beng i company of fri

Offline Coredweller
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« Reply #12 on: July 23, 2002, 06:07:01 PM »
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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Offline Titan

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« Reply #13 on: July 23, 2002, 06:24:55 PM »
Vid, how much is the lease per month?
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13 year old boys sleep with older women cause theyd be stupid not to

Offline videoholic

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« Reply #14 on: July 23, 2002, 07:07:48 PM »
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.
I wear a necklace now because I like to know when I\'m upside down.
 kopking: \"i really think that i how that guy os on he weekend\"
TheOmen speaking of women: \"they\'re good at what they do, for what they are.\"
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