New CAr Lease Help

[North Coast Cab]

I need to get the wife a car by next week. We went to look at the Nissan Maxina she wants and get some prices. I know it's from the wrong continent, but if I don't let her get what she wants I'll never get the trailer I've been talking about. Anyway, I got all the numbers and I'm trying to figure out if the lease package is good or bad. Any experts out there?

John

[84porsche]

Post some more information and someone will be able to help. I work with different types of leases. You have to look at not only mileage on the lease but the wear and tear fine print also. Their are many things to look for but all in all you should be fine. Be also aware of the overage rates if you go over that mileage in the lease. Some dealers offer an option to add mileage early in the lease if you think you are going to go over. If you have another car, then don't sweat it.

[Moneyguy1]

Just a question from a (semi retired) financial planner...Why lease?

[Rot 911]

IMHO all leases are bad for the lessee.

[id10t]

Like others have said, Why lease?

The Nissan Altima and Maxima hold their values well - or at least they did when I was looking to buy a '99 in late '98. Buy one that is just a few years old, and after a few years, you own the car, instead of having to return it and pay more money.

[Dantilla]

A few years back I called my accountant wanting an appointment to discuss the lease vs. buy option when I needed a new truck.

He just laughed, and said "always cheaper to buy". No appointment needed.

I now only pay cash for used cars.

[joehahn]

swapalease.com. let someone else take the hit for the downpayment, fees, etc etc. I plan on doing this w/ an Audi TT. Just something fun to have for 10-15 months.

joe 68 L

[adamred]

But if you don't make a large downpayment, only pay the walk out fees, in NJ only say $400-500 it is a way of affording a bit more car.

I like $$ for used cars also, but when buying a car for my wife to haul the kiddies around, I prefer new, with warrantee, road-side, etc. Every 3-4 years turn it in before it becomes my 3rd car with maintenance issues. Sure I pay the $500 per month, but with nothing down my large cash outlays are almost nil and she's in a new car all the time...

My .02

Adam

[Leader]

If your preference is for cars that hold their value well (and that would be most of us here), and you take good care of your vehicles (again, this group) buying ALWAYS beats leasing. Surprisingly, this still holds true when purchasing a car new.
Adamred - if you bought your wife say a new Acura MDX (about $43k) and she drove it for three years. At the end of 36 months you could sell it for about $35k. That's a monthly cost of $222 (not including gas and insurance). Plus, you've got $35k in your pocket to shop for something new. At the end of your $500-a-month lease you've got zip.

[adamred]

But was is the monthly payment on a $43K truck financed through the bank. If you have a monthly budget for car stuff, that can be the back breaker between leasing and financing....

$43K, for 60 mos with 0% (are they doing this anymore?) is over $700 per month....

I see your point though

Adam

[Moneyguy1]

Or, if you are interested in an excellent (read upscale) car at a reasonable cost WITH a guarantee, there are a number of marques that sell their "pre owned" vehicles with extended warranties.

Two things I have not done in over 25 years:

Leased a vehicle

Purchased a new vehicle.

The object is to keep as much of what you earn as you can to use as you please, not toss it away.

One vehicle I purchased was completely loaded, had 26k on the clock, came with a renewable 13,000 12 month warranty, renewable annually for $100 to 70,000 miles. The vehicle was 15 months old and the price was under 65% of a comparable new one of the same brand. No brainer.

[David]

I got this data off BMW's web site since I was looking at this a few weeks ago:

Vehicle Information:
State of Purchase : TX
Model/ MSRP : 2004 325i $28,795
Estimated Trade-In Value : $4000
Local Taxes : 6 %
Dealer Accessories : $0


Lease
Contract Term : 36
Down Payment : $2500
Finance Product : Lease
Annual Mileage : 15000
Amount Financed : $22,820
Est. Monthly Payment : $289

Traditional Finance
Contract Term : 60
Down Payment : $2500
Finance Product : Traditional Finance
Interest Rate : 6%
Amount Financed : $24,022
Est. Monthly Payment : $464

At the end of 36 months you made lease payments of $10,404 or finance payments of $16,704. At the end of the lease you have no asset while after 36 months on a 60 month loan you owe $10,493 on a car that's worth about $19,000 for an asset value of $8,507. So you're about $2,200 ahead by buying the car in this example.

[rammstein]

Its my impression that leases are for people who want more car than they can afford short-term. Like others have mentioned, in most every case even if you like leases becuase you turn it in every 3 years, you could buy and sell three years later and be ahead. Then the next time around, your next purchase you'll have more money and can get something nicer.

[Moneyguy1]

At the end of a lease, they say "You just walk away".

Correct, unless you have a friend to drive you home.

[North Coast Cab]

I like to buy one car and lease the other, exclusive of the P-car. Regrdless of reason, here are the numbers. Can someone tell me what the lease factor is and if it is competitive.
MSRP $30,820
Cap Cost on Lease $27,986
Lease End Value $14,458
36mo
$0 down
$500 Security
Monthly payment $490 w/tax

John