Ford and Leasing
04-06-2010, 11:33 AM
#31
3rd Gear Member
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Join Date: May 2005
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Posts: 632
From the lenders POV what is a lease? They figure out that the depreciation most likely will be and the interest on the "loan" they hold at the end of the lease. What the lessee pays for is that depreciation and interest on that loan. Where you get took is on that interest rate because its often way higher than what you may have been able to get the loan out right. At the end of the lease you turn your car in. Hopefully under the mileage quota. If its over you get hit with a per mile charge which could be in the thousands of dollars. But if you turn the car back in under the quota, there is no consideration in your favor. Sounds fair to me. Does it to you?
If you buy outright, once your car is paid off you have a car to drive for years with no payment. I buy because I keep my cars until they start to become maintenance problems. Kept my last car for 11 years. Had it paid off in 3, so for 8 years I had no car payment. If I lease, the payments never cease and I have to pay attention to the miles I put on the car.
If you buy outright, once your car is paid off you have a car to drive for years with no payment. I buy because I keep my cars until they start to become maintenance problems. Kept my last car for 11 years. Had it paid off in 3, so for 8 years I had no car payment. If I lease, the payments never cease and I have to pay attention to the miles I put on the car.
True there are 0% loan rates in this economy but there are also lease incentives and specials too.
Again, I don't keep cars 11 years, or even past 3. I'm lucky to keep them 2 in many cases. So owning my fun/toy cars isn't the best choice.
Again, with mileage in leases, you just have to know how many miles you drive. You can always "pre purchase" miles at a significant discount.
And I have heard of some leases that will "buy back" unused miles too, but it's at an even lower rate.
GAP insurance also can cover you for up to 1000 miles in excess of your limits.
I own 2 of the cars I currently have, but there are reasons for that too.
But there is no doubt, for those who like to drive a car for many years, such as yourself, leasing is not the way to go.
04-07-2010, 12:59 AM
#32
4th Gear Member
Join Date: Feb 2010
Location: dark side of the moon
Posts: 1,532
Cuz in a one year lease you are paying for the year with the biggest depreciation. They'd nab you for say $900 a month on a $50,000 car
With a 3 year lease, you'd pay maybe $600 a month.
You'd save the $300 a month (or say $3600 in that year).
With cars manufacturers that allow you to get out of the lease early with only a $500 lease transfer fee, you'd pay $3,100 less for that car during that 12 month period.
In that same 12 month period, if you bought that car, you'd pay the $850 a month payment for 12 months, plus the 8-9% sales tax on the complete $50,000 and then take the hit in depreciation when you went to sell it too.
That's getting bent over.
The way to get to drive the newest cars for the least amount of money is to lease. Sure, you will always have a car payment, but I'd hate to be making a $800 a month car payment on a 4 year old car with 60,000 miles on it. Only for a year later to pay it off, but have no warranty and then the thing break down and need $3,000+ in repairs, or to be sick of it then and want to sell the car and get a new car all over again anyway (which is what an awful lot of people end up doing shortly after paying off their cars).
I like driving newer, nicer, warrantied cars that I don't have to worry about. Yes it means endless payments, but in order to drive newer cars all the time, that's what you pay for.
Works for some, not for others.
With a 3 year lease, you'd pay maybe $600 a month.
You'd save the $300 a month (or say $3600 in that year).
With cars manufacturers that allow you to get out of the lease early with only a $500 lease transfer fee, you'd pay $3,100 less for that car during that 12 month period.
In that same 12 month period, if you bought that car, you'd pay the $850 a month payment for 12 months, plus the 8-9% sales tax on the complete $50,000 and then take the hit in depreciation when you went to sell it too.
That's getting bent over.
The way to get to drive the newest cars for the least amount of money is to lease. Sure, you will always have a car payment, but I'd hate to be making a $800 a month car payment on a 4 year old car with 60,000 miles on it. Only for a year later to pay it off, but have no warranty and then the thing break down and need $3,000+ in repairs, or to be sick of it then and want to sell the car and get a new car all over again anyway (which is what an awful lot of people end up doing shortly after paying off their cars).
I like driving newer, nicer, warrantied cars that I don't have to worry about. Yes it means endless payments, but in order to drive newer cars all the time, that's what you pay for.
Works for some, not for others.
The above post is filled with logic which is a good thing. My wife and I are childless (thank God) so when we purchase a new vehicle it is more often than not paid off within one year (yeah). Our personal best was on the 05gt which took exactly 5 months to pay off. I absolutely hate payments of any kind be it a lease or finance. I tend to purchase our vehicles because of the modifications I have done and when leasing a vehicle this is not the best idea. We have leased two of the fifteeen new vehicles since our wedding 18 years ago and I see advantages to either process. Cheers
04-07-2010, 06:30 PM
#33
1st Gear Member
Join Date: Mar 2010
Location: VA
Posts: 103
Re-read the posts.
Lucky13 says, "only an idiot would lease a car."
Then YOU say, "I agree with 13 completely all around."
Sam's first post was proclaiming I had a "sh*tty attitude" but he says nothing about you guys saying I'm an idiot and "it's stupid to lease."
Funny how he said I had the "sh*tty" attitude when I was just responding you your guys attacks of my intelligence.
It's you guys who called me an idiot for leasing first.
I responded to your attacks on my intelligence and reasons for leasing.
I did not ask for responses to attack my reasoning, but that's what I got first, I responded that for many it's the best/smartest way to go.
I continued to get attack responses, so I step up the game a bit in my responses.
Don't blame me for sounding like a d**k. I was just responding to your guys dic*ish responses.
Lucky13 says, "only an idiot would lease a car."
Then YOU say, "I agree with 13 completely all around."
Sam's first post was proclaiming I had a "sh*tty attitude" but he says nothing about you guys saying I'm an idiot and "it's stupid to lease."
Funny how he said I had the "sh*tty" attitude when I was just responding you your guys attacks of my intelligence.
It's you guys who called me an idiot for leasing first.
I responded to your attacks on my intelligence and reasons for leasing.
I did not ask for responses to attack my reasoning, but that's what I got first, I responded that for many it's the best/smartest way to go.
I continued to get attack responses, so I step up the game a bit in my responses.
Don't blame me for sounding like a d**k. I was just responding to your guys dic*ish responses.
Either way, yes I can understand why you would want to lease and at the end of the day, you do what you want with your money and I'll do what I want with mine. A lease would never be good for me, I don't plan on ever getting rid of my Mustang that I have now. I'm hoping that within about 5 years(I'm 19 now) I'll be able to afford to get a brand new GT convertible and five years from now I don't think I'll really be able to get enough by selling my current Mustang to make it worth getting rid of it. And as long as I can afford to get the new car I want without selling my current car(s) I imagine I'll feel the same way about any others or I probably wouldn't have bought them in the first place. But I'm the kind of person that, other than a couple beater cars at 16-18 years old, if I'm going to get a car then I'm going to find one that's EXACTLY what I want, and I like a lot of different years of Mustangs. Another huge benefit to me buying over leasing is that I work at a dealer and the discount we get on brand new cars is phenomenal. On used we still get a discount, but they're only making so much on the used cars anyway. With new cars, it's huge, another guy there recently bought a $40k+ diesel for just over $25k. And I have very very little interest in ever owning any car other than a Ford so that will apply to pretty much any car I buy for as long as I'm working at a Ford dealer. Considering I'm about to go to 3 years of special Ford training to get Ford certified in everything that's hopefully pretty much for life.
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