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re-read my original post and pay closer attention to detail. I'm not even going to bother answering the other dumb questions you asked because I would just be wasting my time. Quote:
So leasing rates will vary from model to model? or are you referring to a different rate when you say "Rates are much cheaper than a brand new model" what kinda deals are you referring to when you say "You can get some deals if you alert the dealer early when you bring it in at end of lease." A deal on the buyout or a deal on the next lease? |
^yea, just look at glk and new c class I mean a new car but last yrs model, like leasing a E90 3series vs a F30 now. deals come at the end of lease, usually a 1% off int. rate like acura or they can cut off some price or w.e. buyout prices cannot be change I think |
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My real life example: Did a 3 years lease on a $82,000 (MSRP) vehicle a few years back, the residual value was 60% = $49,000. I got a discount of $7,000 on the car, so the final selling price was $75,000 And I guess either because of the financial crisis, rising gas prices, or the leasor (BMW) fucked up their residual value calculation, the car was only worth $40k at the end of the lease. Obviously I chose to return the vehicle instead of buying it out at a $10K premium. So for that 3 years of leasing, I took a hit of $26,000 in depreciation instead of $35,000 in depreciation if I were to finance it. You can argue this example can go the other way (i.e. residual value set too low), but then with leasing you always have the option to buy out the vehicle if the buyout price turnout to be a bargain. |
The car itself aside, I usually consider the following things when I lease a vehicle: 1) lease interest rate 2) residual values 3) lease terms Always check the repair/maintenance schedule, Pick a lease term that avoid the major tune-up/parts replacement (e.g. brake/rotors, tires) timing. If the brake is due at 50,000km, you want to return the vehicle at 48,000km instead of 52,000km (e.g. on my last lease, 4x RFT tires + brake/rotors cost more more than $4,000) Try to find a vehicle with a High residual value. High residual value means you are paying LESS for the vehicle during your lease term. If the lease interest rate is much higher than the financing rate, it might be better to finance it instead. I prefer leasing because it gives you much more flexibility. i.e. if your car had a $20,000k accident you probably don't want to keep it |
Leasing makes total sense if u can write it off for business use. Other than that. It's a pretty bad way to get a car financially |
what about taking over a lease? sometimes you can get a really good deal |
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One piece of mind when it comes is to leasing is that you'll be on the manufacturer's warranty for the whole lease term, it's a piece of mind when it comes to european cars. My dad's X5 was not 2 weeks old before it went back into the shop for 5 days. :heckno: |
you can't only be looking at low lease rates either. if they don't plan on buying it out then you need to look at the residual value of the car at the end of the lease term. generally a good residual for a 3 year lease is anything above 50%. just because they offer you 1.9% doesn't mean your monthly payments are going to be low. for example, BMW offered their M3 at 3.9% a while back but with a residual of 28% after 3 years. so in the end the monthly payments were almost as much as a porsche 911 C2, which had a residual of 51%. ideally you want low interest, high residual. |
Are residual rates negotiable? Just wondering. |
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Finance = write off depreciation expenses Lease = write off lease payment expenses The end sum is all the same. *There is actually a $30K auto limit or $800/month lease payment limit for tax deduction. In some instances the maths might favour leasing by a bit, but usually by a negligible amount. Quote:
I actually notice most manuf. set a very low residual values on their cars now compare to 5-6 years ago... |
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But then I have never seen anyone lease a car longer than the typical manufacturer's warranty term. (5-10years+) |
@Ferra i find it very hard to read your posts with your avatar there :whistle: |
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Certain cars are more susceptible to carbon buildup. There are other methods of doing so without suggestion everyone drive hard 24/7. I do back you on pussyfooting, people shouldn't be pussy footing anyways. ESPECIALLY in the left lane :mad:. Anyways the method 9k is talking about is also known as the Italian Tune Up. Italian tuneup - Wikipedia, the free encyclopedia |
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I don't know why anyone would go into dept just own a car. |
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"debt" btw ;) Makes business sense in terms of you can declare it as a business expense and write it off. I know alot of Real Estate agents that lease, yes it makes logical sense to buy a car and drive it until it dies, but in our vain society image means alot. Nice car = success. Success = you're good at what you do. (So you want others to think) Therefore leasing makes more sense. Instead of financing 70K car (which you can't write off). Lease vs Buy? Car Leasing versus Buying Explained |
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... lot's of assumptions/false statements in this thread. |
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-so look for low interest rate and high residual value -$800/month lease payment limit for tax deduction ^ didn't know this, so i'll definitely have to pass that on in case my cousin doesn't know this either. I would like to know more about how the maintenance works though. Does the dealership make you agree to a certain maintenance schedule for Leased cars? |
Full coverage insurance, no matter what. You must have a FULL record of maintenance for your leased car if you intend to give it back. Wear & Tear is fine, so long as its not excessively obvious that it was abused. |
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