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View Full Version : Lease vs. Buy


geomax
12-25-2001, 07:03 AM
How many of you Lease vs. Buy?


..ok, ok...so I'm having a little fun with Polling!

Merry Christmas to all!!

Alex Baumann
12-25-2001, 09:14 AM
I'll go for the lease. I've been leasing cars since 12 years (company), driving for 2 or 3 years and after the lease is up getting a new one.

ashecnc
12-25-2001, 09:24 AM
me 2, unless you want to keep for several years!

http://www.clicksmilies.com/sammlung/weihnachten/smilie_klau.gif

planet
12-25-2001, 10:00 AM
I just completed a lease of an Acura. Not a bad car by any means. However, I never felt like it was my car. I felt like the car was, and treated it, like a rental I needed to keep in good condition. And this is essentially what a lease is.

In addition to not being able to modify it substantially, I never really felt emotionally invested in the vehicle.

So, with the bimmer, I bought. Payments are higher, but I'm left with an asset at the end of the transaction -- and I can do whatever I please to/with the car.

LilEccentricJ
12-25-2001, 10:02 AM
I second that, planet
mod away... It's yours!

LeucX3
12-26-2001, 10:21 AM
I know it's just me, but i just can't imagine 'renting' a car for two or three years. I have this problem with 'throwing' money away, which is why i just bought a condo instead of renewed the lease to my apt.

On the other hand, if my company gave me a company car, i would have no problem at all with it cause it's not my money. :)

I've heard good arguments pro and con, so basically to each their own with whatever they like.

over90
12-26-2001, 01:48 PM
I bought it. I think that if you lease a car because you can't afford to buy it, then you would be fronting. ( statement not intended for company leases...luck you!) Also I know people who have leased M3's with payments of $800 plus. That's insane! 3 year lease = $28,800. Money that is no longer yours! What a waste. I would rather sleep in my home than in the back seat of a M3. Don't get me wrong though, I will be BUYING a M3/SMG next year!:)

jw
12-26-2001, 02:01 PM
Originally posted by over90
I Also I know people who have leased M3's with payments of $800 plus. That's insane! 3 year lease = $28,800. Money that is no longer yours! What a waste. I would rather sleep in my home than in the back seat of a M3. Don't get me wrong though, I will be BUYING a M3/SMG next year!:)

And how much would you invest in the M3 over the course of it's lifetime? Then what would you be stuck with. A depreciated investment and a yearning for a new car.

I've accepted the fact that a car payment is part of my life. On average I tend to get into a new vehicle every 2-3 years regardless of purchase or lease. And I don't tend to modify my daily cars. Therefore, it only makes sense for me to lease. Unless you're able to write off the interest of the loan, I'm not interested in investing in new automobiles. I've got better things to do with HEL and 2nd mortgages as well.

over90
12-26-2001, 03:34 PM
jw,

I see you have invested in a 66 Tbird Conv. Nice car. Why did you buy it? Beacuse you think it has value right? Well, I made my statement based on my value of the M3. I will be keeping the car for a while cause I see it as my 66 Tbird Conv. That's all. :)

87acc
12-26-2001, 06:36 PM
If the MFR guessed wrond about resid, you can sell after 3 years for more than payoff, pocket the $$, pocket the monthly paymentsavings (compared to a loan) and since lease rates are naer 5% now, sometimes come out AHEAD of a loan, like I have the last 2 leases. Since I drive less than 12K/yr and take care of my car owned or leased, and since I guessed right (better guesser than the MFR) AND since I got great lease rates, I calculated that I saved $$ over a loan (aples to apples, i.e. d/o, same car, etc). But I git lucky and I did not want to mod my cars and I didn't care if I "owned" it or not.

jw
12-27-2001, 06:49 AM
Originally posted by over90
jw,

I see you have invested in a 66 Tbird Conv. Nice car. Why did you buy it? Beacuse you think it has value right? Well, I made my statement based on my value of the M3. I will be keeping the car for a while cause I see it as my 66 Tbird Conv. That's all. :)

I bought the T-bird when it was already a classic car and 25 yrs old. There were about 5,000 T-bird converts made in '66. Last time there was a T-bird convert. until this new 2002 model. It has appreciated in value in the past 10 yrs. Do you honestly think the E46 will ever become a classic and will appreciate?

There's nothing wrong with loving a car. Hell, that's why I'm on this bbs. I can accept someone telling me they bought their car for "pride of ownership". What I can't understand is why people actually attach a value to it and wind up losing money in the long-run. Oh well... to each his own. Like I've said before, I've lease and purchase cars based on my given situation at the time. Of the last 4 cars I've owned, 3 have been leased.

LeucX3
12-27-2001, 09:35 AM
Originally posted by jw

Unless you're able to write off the interest of the loan, I'm not interested in investing in new automobiles. I've got better things to do with HEL and 2nd mortgages as well.

Actually you can write off the interest portion of your pmt if you have a tax reward loan. I have one through my credit union. Of course you have to own a house or a condo and need to show them your Grant Deed in order to take advantage of it.

MAK
12-29-2001, 08:38 AM
There are good arguments to support both a lease ad a purchase.
For me, I prefer to own a car. Usually, with trade-in and some cash, my loan is quite small. Therefore, my monthly payments are lower than the advertised lease rates.

I also put quite a few miles on my cars...(18k per year)...so leasing isn't a great option.
Mike

mustang
12-28-2004, 10:53 AM
If you are a private motorist, do over 12 miles per year, want to keep the car for longer than the loan period, or want to modify your car, then don't lease. Otherwise leasing is a good way to get into a car becasue you only pay for the amount depreciated plus fees to cover the lending company's ass and to make a profit. If you buy your car, then you are paying for both the depreciation amount of the car, plus the remaining residual value of the car, which you're gonna get back anyway when you trade it in, so why pay for it in the first place.
Also, anyone who thinks a lease is like a 'rental', ok fair enough, I see your point. But when you have to borrow money to buy car (for a normal hire purchase scheme), you think that car is really yours? It's only yours AFTER you have paid it off. If you're gonna pay it off in three years, and buy a new car in 3 years anyway, then why pay the extra?

brkf
12-28-2004, 11:00 AM
If you're talking BMW, I'd say lease. Great lease rates and lousy cars = good to have the car when it's in warranty.

I'm eagerly awaiting May of 06 when I can dump my 330i perf pack.

If we're talking Japanese lux cars, then buy. They'll run forever and do it well.

Chris90
12-28-2004, 11:13 AM
I bought it. I think that if you lease a car because you can't afford to buy it, then you would be fronting. ( statement not intended for company leases...luck you!) Also I know people who have leased M3's with payments of $800 plus. That's insane! 3 year lease = $28,800. Money that is no longer yours! What a waste. I would rather sleep in my home than in the back seat of a M3. Don't get me wrong though, I will be BUYING a M3/SMG next year!:)

I was halfway through reading your post when i realized your avatar has Brooke Burke in it. Very distracting.

Rowag
12-28-2004, 12:10 PM
If you're talking BMW, I'd say lease. Great lease rates and lousy cars = good to have the car when it's in warranty.

I'm eagerly awaiting May of 06 when I can dump my 330i perf pack.

If we're talking Japanese lux cars, then buy. They'll run forever and do it well.
Agree completely.

Emission
12-28-2004, 02:20 PM
I lease.

After years of dropping money into purchases, and yearning for a new car after 36 months (and losing craploads of money on depreciation), I realized leasing was for us.

Low drive-off, monthly payments, and new cars every 36 months. Works fine for us, and it is cheaper than buying!

I'd never buy a new $50,000 car and lose $10,000 driving it off the lot!!!

P.S. - I bought my 930 for $22,000 three years ago. With TLC and love, it is now worth about $30,000. That was a wise purchase. :thumbup:

Chris90
12-28-2004, 02:40 PM
I'd never buy a new $50,000 car and lose $10,000 driving it off the lot!!!


The $10k you lose is built into the lease payments though.

My friend bought a Type R integra, then two Supras, keeping each a couple years, and didn't lose more than a couple grand on each one. Of course now he bought a 1 year old M3, so he's joined the depreciation club.

For me personally, the only reason I don't lease is I don't like being forced to make car buying decisions at a specific time. When people try to get out of leases early, it's ugly.

MG67
12-29-2004, 07:35 AM
I'll go for the lease. I've been leasing cars since 12 years (company), driving for 2 or 3 years and after the lease is up getting a new one. You lease your B3s...? I seriously have to speak to my manager...:D so he'll pay for my new M3...:thumbup:

CarlM
12-29-2004, 12:58 PM
I buy them after you rent them.. As you take good care of them our you pay through the a$$...

Chris90
12-29-2004, 01:03 PM
I buy them after you rent them.. As you take good care of them our you pay through the a$$...

If you factor in maintenance and the high dealer markup of used cars, I don't think a BMW is any cheaper the 2nd 3 years of its life than the first 3 years.