DFWMS Financial gurus, school me on automotive leases

[Big A]

Up to this point I've financed my vehicles, paid them off, and owned them. Not having a car payment was awesome until I wanted something newer.

I'm looking at getting a new car, so I'm looking at all options. What I want I can't see myself still wanting to drive in 3-5 years, so the thought of a lease has popped in my head. I love driving a new car, but the lust wears off in a year or so, and I want something else.

I've always considered it better to buy than lease, but I'm begining to wonder if that's not a better course of action in my case. Factor in the cost of depreciation, and buying a car that you know that you'll want to sell in two years is a bad idea.

What are the financial positives and negatives of leasing? To me it seems alot like paying rent versus owning a home, but cars depreciate, and homes usually appreciate in the long term.

[Vertnut]

If you can keep your annual mileage in that 15k range, it may work out for you. There are a ton of factors and lease options.

[Cooter]

no such thing as a free lunch... it probably works out similar to getting a fair deal on a new vehicle and trading it in on another fair deal on a new vehicle. you'll pay for the convenience.

If you don't cover a lot of miles, a lease can be convenient... I don't know that I've ever talked with anybody who has ever leased more than one vehicle though

[Denny]

no such thing as a free lunch... it probably works out similar to getting a fair deal on a new vehicle and trading it in on another fair deal on a new vehicle. you'll pay for the convenience.

If you don't cover a lot of miles, a lease can be convenient... I don't know that I've ever talked with anybody who has ever leased more than one vehicle though

Blue-haired old ladies do.

[Shorty]

Enjoy your debt lifestyle plastic slave.

[Cooter]

Blue-haired old ladies do.

my grandparents just paid cash, traded in and paid cash to make up the diff...

[ELVIS]

i lease my vehicles, but purchase the wifes. i gotta keep new shit.

god bless.

[Big A]

no such thing as a free lunch... it probably works out similar to getting a fair deal on a new vehicle and trading it in on another fair deal on a new vehicle. you'll pay for the convenience.

If you don't cover a lot of miles, a lease can be convenient... I don't know that I've ever talked with anybody who has ever leased more than one vehicle though

Another sales rep/friend is on his third lease as of a month or so ago, and will trade this one on a new lease as well.

I work from home, and client visits are within city limits, so mileage isn't an issue. The most I've driven lately is to LA and back a couple times for meetings. When I move to Sacramento I'll get out alot more, but it's a small city. For a road trip I can throw the bed cover on the truck, and put miles on that.

I guess what I'm asking is, what are the negatives on having a lease, Keeping in mind that I'll want to dump the car when the lease is up? The obvious one is no equity, but do you really ever have equity when buying a car? Owing less than what it's worth isn't equity.

The other option is to pay the current ride off, enjoy it, and get a C6. I enjoy the car, but I'm wanting something with some HP, and don't want to wait another couple quarters to save for pay off.

[Big A]

Enjoy your debt lifestyle plastic slave.

I currently have no debt other than my car payment and rent. I am asking this question strictly from a financial point of view. If it's better financially to buy the car and sell it in two years so be it, but I am beginning to wonder.

[Cooter]

Another sales rep/friend is on his third lease as of a month or so ago, and will trade this one on a new lease as well.

you're in sales... you hang out with salesmen... I don't

I guess what I'm asking is, what are the negatives on having a lease, Keeping in mind that I'll want to dump the car when the lease is up? The obvious one is no equity, but do you really ever have equity when buying a car? Owing less than what it's worth isn't equity.

The other option is to pay the current ride off, enjoy it, and get a C6. I enjoy the car, but I'm wanting something with some HP, and don't want to wait another couple quarters to save for pay off.

I always have equity when I buy vehicles, but I don't buy brand new 3 series...

If you need a brand new bimmer to keep up appearances at your job, then that's just the cost of doing business. It can be equal to buying new and trading in every year... it can be better if you're unable to negotiate below sticker! LOL It's certainly more convenient for a lot of people as it's cut and dry, no haggling, etc.

If you are able to stay within the limited mileage constraints, it might be a good option for you.
.

[Big A]

you're in sales... you hang out with salesmen... I don't



I always have equity when I buy vehicles, but I don't buy brand new 3 series...

If you need a brand new bimmer to keep up appearances at your job, then that's just the cost of doing business. It can be equal to buying new and trading in every year... it can be better if you're unable to negotiate below sticker! LOL It's certainly more convenient for a lot of people as it's cut and dry, no haggling, etc.

If you are able to stay within the limited mileage constraints, it might be a good option for you.
.

Oh yeah, there's plenty of money to be made in buying used vehicles, but I'm talking new. I already have the 3 series, so image isn't the issue. I'm considering getting an M3 to get back into the HP game, I really miss having the gas pedal actually do something, and having a car that I can play with. I think that the M3 would be fun for a couple years, but let's call a spade a spade, it's a performance oriented sedan.

The other (smart) option is to pay off my current ride, and pick up an '08 or '09 C6 to play with, but patience isn't a virtue that I possess.

[kingjason]

my grandparents just paid cash, traded in and paid cash to make up the diff...

This is the way to do it. I paid of my wifes Versa and man I do not miss having a car payment. The house is next. LOL

[Cooter]

This is the way to do it. I paid of my wifes Versa and man I do not miss having a car payment. The house is next. LOL

it worked for them, but I wouldn't recommend it... there's only so good a deal you can get on a brand new vehicle, and I'm sure they didn't haggle much.

the way to do it is the way I've been doing it for the past 6-7yrs... buy used, buy right, pay cash, drive for 6-12 months and sell for profit or break even

[CWO]

http://www.leasetrade.com/

http://www.leasetrader.com/

After I get from under from my current car situation I'll probably try something like this.

[Trick Pony]

When I move to Sacramento I'll get out alot more, but it's a small city.

This struck me as a strange thing to say. Sacramento is the fourth largest metropolitan area in California after the Greater Los Angeles Area, San Francisco Bay Area, and the San Diego metropolitan area as well as the 25th largest in the United States.