What say you?
23 says you only need 20 baits for a day of fishing.
If you do not drive many miles, you always like to have a new vehicle, & you do a good job of taking care of & servicing then lease is not bad.
Payment is a lot less.
If you might go over the miles then don’t do it.
There are a lot of variables here. It’s this for you or the old lady?
What brand are you considering?
What is the average mileage driven per year over the last five years? That’ll tell you which mileage package you should consider.
And I would say that the monthly cost is realitivly cheaper, not dramatically. You are still responsible for maintenance, oil changes, brakes, tires, blah blah blah.
Unless you are writing off the car for business, always better to purchase.
“Wailord”
1979 17’ Montauk
90 Johnson
Wilderness Ride 115
Dave Ramsey calls it a “fleece” and he’s a pretty smart dude. Here’s a link to a pretty good explanation https://www.daveramsey.com/askdave/posts/10367
I prefer to keep as much of my money as possible; therefore, of the four vehicles that I have, one was given to me and three I paid cash for. They don’t all look pretty but they do what I need them to do. Single income family too.
Not having car payments has helped me make double mortgage payments every month for the last few years and sock money away for retirement and my girls futures.
But I guess it also depends on if you care about the Status Quo. If you do care, then you’ll have to pay for it. I do not.
Narcosis
Skinnie will be along shortly to tell us all some big equation of how you can lease a car and take the difference in payments and buy stock, and in 5 years you’ll be burning your old money and living off your new.
“Wailord”
1979 17’ Montauk
90 Johnson
Wilderness Ride 115
Don’t be running down skinneej! After all, this time last year he didn’t have a Dock, a Fence, or weeds!
If you’re going to purchase, buy something 2 years old with low mileage and excellent condition. They lose a ton of value in first couple years. I run about 20K miles per year so hard for me to make a lease work.
Leased a car today. Will let you know in 30 months my take on leasing, actual lease is for 36 months but you can move forward at 3p0
23 says you only need 20 baits for a day of fishing.
Sorry about that.
“Wailord”
1979 17’ Montauk
90 Johnson
Wilderness Ride 115
What’d ya get?
quote:
Originally posted by PeaPodWhat’d ya get?
Yeah, what are you borrowing?
“Wailord”
1979 17’ Montauk
90 Johnson
Wilderness Ride 115
I think it’s pretty obvious that Dave has never leased a car, or negotiated a lease… If you are talking about “financing vs lease” (most people do this), then a “fleece” CAN be your best option.
The problem with the “fleece” is that the dealers are able to hide the important numbers, taking away most people’s ability to negotiate. Instead of APR, you get “money factor” that looks like 0.00275 and you have no idea what that means…
The principle of it is fairly simple… There is the starting value of the car, let’s say it’s $50K and then after 36K miles and 3 years, that car will depreciate to some lower value. Let’s say that car would be worth $30K. Essentially you depreciated the asset by $20K. So, if that’s the case, then you would expect your payment is somewhere around $20K divided by 36 months = $555 (that’s with 0% APR, so slightly north of there). You are basically financing the depreciation of the car. To find out what the true APR is you just take the “money factor” and multiply times 2400. In other words a “money factor” of 0.00275 * 2400 = 6.6% interest. Let’s assume that you leased the car for 36 months, the money factor was 0.00275 and the residual showed a depreciation of $20K. Then your payment should be pretty close to $613. It will actually be a tad bit more since they need to make a profit, but you can calculate that. If they came back and say “Your payment will be $650”, you realize that their profit is ($650 - $613) * 36 = $1332. Obviously, that’s WAY too much profit. They shouldn’t make that off of a sale, so if you are only buying “3 years” on a car, you would expect profit to be even less than that!!! If you had financed the whole car at 6.6% over 5 years ($50K), then you are looking at payments of $980 /mo.
Now, let’s compare side by side in this example… Let’s assume that it’s the exact same car with the exact same depreciation (i.e. worth $30K at end of lease).
But let’s say you only keep the car for 3 years… How much did you pay to kee
quote:Unless you are going to pay 100% in cash for the car, this is "Fake news"!!! See my examples above.
Originally posted by GeronimoUnless you are writing off the car for business, always better to purchase.
“Wailord”
1979 17’ Montauk
90 JohnsonWilderness Ride 115
and the skinnee did not disappoint
If I’m posting, its because I’m sitting here at work, dreaming about fishing.
quote:
Originally posted by TheMechanicand the skinnee did not disappoint
If I’m posting, its because I’m sitting here at work, dreaming about fishing.
aim to please…
Let’s see…square root of beer…multiplied by infinity…carry the one…Yep!! Skinnee’s right again!! EAD, Dave! 
No matter how much it hurts, how dark it gets, or how far you fall…you are never out of the fight.
At the end of year 3:
Lease: Payments: $19980, Owe: $0, Equity: $0 => Cost to have = $19,980
Purchase: Payments: $35280, Owe: $21,992, Equity: $8008 ($30K - $21,992) => Cost to have = $27,272 (Payments - Equity)
Your numbers are way off. Why would you factor 0% on the lease and 6.5% on the new purchase? I just purchased new at 3.5%
I just ran the numbers on our recent new purchase and taking their current lease offer into account. The 3 year lease would cost $22,000 out of pocket and the new purchase would cost $16,500 over 3 years.
If you buy a crappy car that depreciates quickly, and have lousy credit, then sure a lease might work out. But for me, buying a car with one of the highest resale values and having the highest credit rating, a lease was about as dumb a move as I could make.
“Wailord”
1979 17’ Montauk
90 Johnson
Wilderness Ride 115
Sorry 2.9%, not 3.5%.
“Wailord”
1979 17’ Montauk
90 Johnson
Wilderness Ride 115
quote:I used 6.6% for both of them. Also, you only got 2.9% with "great credit"??? You should be lower than that.
Originally posted by GeronimoAt the end of year 3:
Lease: Payments: $19980, Owe: $0, Equity: $0 => Cost to have = $19,980
Purchase: Payments: $35280, Owe: $21,992, Equity: $8008 ($30K - $21,992) => Cost to have = $27,272 (Payments - Equity)Your numbers are way off. Why would you factor 0% on the lease and 6.5% on the new purchase? I just purchased new at 3.5%
I just ran the numbers on our recent new purchase and taking their current lease offer into account. The 3 year lease would cost $22,000 out of pocket and the new purchase would cost $16,500 over 3 years.
If you buy a crappy car that depreciates quickly, and have lousy credit, then sure a lease might work out. But for me, buying a car with one of the highest resale values and having the highest credit rating, a lease was about as dumb a move as I could make.
“Wailord”
1979 17’ Montauk
90 JohnsonWilderness Ride 115