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Lease quote

nikhsub1

What?
Location
Los Angeles
To understand the real numbers, ask them what what the money factor and residual are...then compare that to what you can find online.
This. The ops numbers look off as inn bad deal.

Not that I would ever lease a car,, might as well go stand in the front yard and give money away...

Spoken like someone who knows nothing about leasing. Leasing can be great it just depends on many things. Blanket statements rarely are useful.
 

GGray

Ready to race!
Location
Virginia
This. The ops numbers look off as inn bad deal.



Spoken like someone who knows nothing about leasing. Leasing can be great it just depends on many things. Blanket statements rarely are useful.


Try again....

They call it a fleasing for a reason.... Unless you own a business and can write the lease off as an expense it is just a way to "borrow" something and pay rent without actually getting anything back in the end... Or buy something you cannot afford to actually pay for but can afford a cheaper lease payment....

Auto manufacturers LOVE LOVE LOVE leasing cars they make far more money on a lease than they do if you come in and purchase... The leaser gets to take the depreciation hit, then they get the depreciated asset back to SELL... if you amortize the lease payments out and then add the sale price of the asset the amount far exceeds the amount of profit if it was a straight sale..

Rationalize leasing all you want from a pure business/money standpoint it never ends up being a better option in the long term. Unless it is a business expense that can be a tax write off. For a business it makes sense in most cases...
 

Mike A.

Ready to race!
Location
Leesburg Va
Leasing can be good in certain situations but in a car like a Golf R that holds its value really well I would suggest buying even if you need to really stretch the payments out. Rates are so low, you can get 3.5% for 84 months with good credit.
 

nikhsub1

What?
Location
Los Angeles
Try again....

They call it a fleasing for a reason.... Unless you own a business and can write the lease off as an expense it is just a way to "borrow" something and pay rent without actually getting anything back in the end... Or buy something you cannot afford to actually pay for but can afford a cheaper lease payment....

Auto manufacturers LOVE LOVE LOVE leasing cars they make far more money on a lease than they do if you come in and purchase... The leaser gets to take the depreciation hit, then they get the depreciated asset back to SELL... if you amortize the lease payments out and then add the sale price of the asset the amount far exceeds the amount of profit if it was a straight sale..

Rationalize leasing all you want from a pure business/money standpoint it never ends up being a better option in the long term. Unless it is a business expense that can be a tax write off. For a business it makes sense in most cases...

All of this is incorrect. You should read more.
 

GGray

Ready to race!
Location
Virginia
All of this is incorrect. You should read more.

You obviously live in a world based on non factual information.... SPACE...

Ahh... I have READ a fair amount on the subject... Raw data and actual accounting is really hard to argue with. My wife is also very good accountant and we regularly discuss topics like these...

And I have seen the BS the lease fan boys claim make it viable....

I find it very hard to justify spending 3-4 years of lease payments then just handing the car back and you get what..... ahh nothing... You now have zero assets to even remotely get some of your money back... But hey you can lease another car and piss away even more money that you will never see a % back from.. Start adding it up on a spread sheet and you might be shocked how much money you piss away that you could actually invest and get a return on... Or at least have a depreciating asset that if you had an emergency you could actually sell and recover some cash... Need emergency cash with a lease... cant pay the lease they take the car.. you have nothing... Crap happens it is part of life...

We currently live in a society that has perpetuated being in debt continually and not a society like our past generations grew up in where saving and paying for items was the preferred method.. That is a pure 100% fact... Most Americans live check to check and have no savings, very little for retirement, and have no idea how to change to help themselves... And live in denial that everything is fine...
 

nikhsub1

What?
Location
Los Angeles
What happens if you buy the car, then 3 years later jump into something new? Most of the time, when you do that, you spend more than if you had leased and walked away. You are saying that leasing sucks 100% of the time, and that is dead wrong. If you can't see why, I can't help you. It isn't always the right choice - it always depends on many factors. You also seem to be assuming that everyone would purchase a car in cash with no loan - this is hardly the case so your argument for selling it for 'emergency cash' is null if you finance the car.

You further devolve into living paycheck to paycheck and being in debt which, is totally off subject and irrelevant to the discussion. Your negative posturing towards leasing proves you don't really know the ins and outs of it and how it can be VERY beneficial, again depending on different circumstances. Just saying that 'leasing is dumb' is completely ignorant.
 
For this scenario to work to have emergency cash, the vehicle will need to have very little depreciation over the term or at the moment of emergency or a large down payment was made at the start of the contract whether cash or trade in.

Most likely too the car would be sold to a dealer like Carmax in which they would offer wholesale pricing which is usually under Kelley Blue Book and others.

There could be equity or at least 'break even' dollars this way. Leasing has a less than likely possibility of getting equity but not impossible. Those factors would be the selling price of the car (cap cost), the residual value and the money factor.

My friend turned in his leased Evo X a year later and Carmax offered a high enough value to pay off his car. He walked out scott free.

I traded in my 2 year old Evo X and had $5k in equity only because I traded in a car at $11k at the start. Mine was financed. If I had done a zero down loan that wouldn't be the case.

Leases are an advantage when we as a buyer can pay the least amount of depreciation plus interest and we know we can keep it that long.

If you're the kind of person that drives a car to the ground, it's usually not a good idea.



Or at least have a depreciating asset that if you had an emergency you could actually sell and recover some cash... Need emergency cash with a lease... cant pay the lease they take the car.. you have nothing... Crap happens it is part of life...
 

GGray

Ready to race!
Location
Virginia
What happens if you buy the car, then 3 years later jump into something new? Most of the time, when you do that, you spend more than if you had leased and walked away. You are saying that leasing sucks 100% of the time, and that is dead wrong. If you can't see why, I can't help you. It isn't always the right choice - it always depends on many factors. You also seem to be assuming that everyone would purchase a car in cash with no loan - this is hardly the case so your argument for selling it for 'emergency cash' is null if you finance the car.

You further devolve into living paycheck to paycheck and being in debt which, is totally off subject and irrelevant to the discussion. Your negative posturing towards leasing proves you don't really know the ins and outs of it and how it can be VERY beneficial, again depending on different circumstances. Just saying that 'leasing is dumb' is completely ignorant.

You just pointed out part of the problem.. Jumping from new car, to another new car is not smart. That alone just shows a lack of financial responsibility, be it a lease, or purchase, plain and simple...Typically it cost you upwards of 3k each time you do it...

Ahh no I ASSUME people have at least ONE paid for car they can liquidate.. IF they paid it off... Even if not paid after 3 years you should be at the point in the purchase process that you are not upside down, if financed, so it could be sold and at least some funds would be available...

LOL.. Rationalizing how a lease is beneficial just tells me what I pointed out above...

And yes it is dumb... Buy something cheaper and pay for it, either financing or cash outright...

Your reactions are emotional based and not fact driven, your comments regarding being ignorant are a knee jerk reaction to basically hearing, in this case reading, something you do not want to hear....


Leasing and purchasing have gotten to the point it is like a religious debate once you decide it is ok to lease, pretty hard to change the persons mind even when raw data is provided... Automotive manufacturers love leasing which is why they push it.. They are in business to MAKE money and leasing is the best possible way to do it... They barely break even on a pure sale of a vehicle in most cases...

Have fun leasing...... When you turn the borrowed car in.. I'll OWN mine outright...
 

Gibberoni

Ready to race!
Location
Simpsonville, SC
@GGray

Without derailing the thread further, I rather enjoyed my short time in a lease. I had a BWM that was 12 years old, and it was starting to fall apart. I was at a different job than now, making far less money. I wanted a fun car that was cheap, so that I could save up for a better car in a few years. I only traveled 8,000 miles a year so a lease looked like a great option.

Well I picked up a 2013 Jetta 2.5SE 5 speed with $1,000 down and 180/month for 36 months. This was dirt cheap! I could pay for this and save a few hundred a month for a new car (didn't know it would be a GTI at that time).

2 years later I got a new job and traveled over 2,000 miles a month. That would have killed my lease, so I traded it in with all the cash I saved up, payed $1,000 in negative equity, and put down around 14 grand that I saved during that time.

$6400 was a very small price to pay for 2 years for a new car, never had to worry about maintenance, no tag, title, taxes, none of that crap.

TL;DR leasing works well in some situations.
 

GGray

Ready to race!
Location
Virginia
For this scenario to work to have emergency cash, the vehicle will need to have very little depreciation over the term or at the moment of emergency or a large down payment was made at the start of the contract whether cash or trade in.

Most likely too the car would be sold to a dealer like Carmax in which they would offer wholesale pricing which is usually under Kelley Blue Book and others.

There could be equity or at least 'break even' dollars this way. Leasing has a less than likely possibility of getting equity but not impossible. Those factors would be the selling price of the car (cap cost), the residual value and the money factor.

My friend turned in his leased Evo X a year later and Carmax offered a high enough value to pay off his car. He walked out scott free.

I traded in my 2 year old Evo X and had $5k in equity only because I traded in a car at $11k at the start. Mine was financed. If I had done a zero down loan that wouldn't be the case.

Leases are an advantage when we as a buyer can pay the least amount of depreciation plus interest and we know we can keep it that long.

If you're the kind of person that drives a car to the ground, it's usually not a good idea.

Car Max rarely gives you what a car is worth in most cases they give you wholesale, unless it is a specialty car they know they can make money on even if they have to spend more on it, EVO, STI are good examples..

Also tidbit.. CarMax has ONE company that buys ALL the cars they do not want. The company then takes most and wholesales them, then cherry pics the ones they can make ridiculous money on and ship them overseas.

I know the car business.... And how leasing works... I sold VW's NEW in 1992... And have flipped a running ton of cars over the last 30 years... 8 cars to date in the last 3 years. How I pay for my car hobby;)
 

GGray

Ready to race!
Location
Virginia
@GGray

Without derailing the thread further, I rather enjoyed my short time in a lease. I had a BWM that was 12 years old, and it was starting to fall apart. I was at a different job than now, making far less money. I wanted a fun car that was cheap, so that I could save up for a better car in a few years. I only traveled 8,000 miles a year so a lease looked like a great option.

Well I picked up a 2013 Jetta 2.5SE 5 speed with $1,000 down and 180/month for 36 months. This was dirt cheap! I could pay for this and save a few hundred a month for a new car (didn't know it would be a GTI at that time).

2 years later I got a new job and traveled over 2,000 miles a month. That would have killed my lease, so I traded it in with all the cash I saved up, payed $1,000 in negative equity, and put down around 14 grand that I saved during that time.

$6400 was a very small price to pay for 2 years for a new car, never had to worry about maintenance, no tag, title, taxes, none of that crap.

TL;DR leasing works well in some situations.

For business it works out. Just to go lease to have a car I have a problem with.

In the long run it makes no difference more of a personal choice.

For me I cringe when I have to spend money on something, like rent, lease, etc... that I am not going to own one day. I had to rent a place for all my tools and shop equipment for two years. Every month we had to pay it was like going to the dentist to get a tooth pulled... Moving out of the money sucking rental unit this week end into the nice shiny big garage I built.

I'm done off the soap box back on topic;)
 
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