Now is the time to lease a supercar!
8/1/11, 10:07 AM
#41
I seriously thought I'd find information on how cheap it is to lease a Ferrari or a Lamborghini right now when I opened the thread. Not that I could or would even afford it.
But I get. It worked. You grabbed my attention.
But I get. It worked. You grabbed my attention.
8/1/11, 08:08 PM
#42
I don't get it
I never have understood how leasing could be a better deal than purchasing a car, and I still don't.
This scenario would make the car belong to the driver free and clear after 39 months for a total expenditure of $51,764 ($2,000 down plus $49,764 in payments)
The lease scenario would require a total expenditure of $57,551 after 39 months if you want to own the car ($2,000 down plus $23,099 in payments plus $34,452 residual). Granted that you can turn in the car after 39 months after $25,099 in payments and you have "saved" $26,665; but you have nothing material to show for that savings. There is no equity built up in the car, you own nothing.
This logic does not work. It is stated that the $1276 monthly payment is not affordable. Then in the next sentence it is implied that the difference in payments between purchasing and leasing could be saved for a large downpayment at the end of the lease (...if saved would equal $28,665 at the end of the 39 month lease). If the money is not available to put into a monthly payment, then it is also not available to put into savings. What am I missing?
Instead, I'm leasing for $541 per month, the difference is $735 per month over purchasing which, if saved would equal $28,665 at the end of the 39 month lease. The residual is set at $34,452 at 39 months, with the option to buy. At this point I would have a substantial downpayment. I could buy it or turn it back in.
The idea I was proposing is "how to afford a supercar". The 2012 GT500 I'm leasing has an out-the-door price of $49,369. If I were to purchase the car for the same 39 months, same down payment, the payments would be $1276 per month. I could not afford the monthly payment of $1276 for 39 months. Instead, I'm leasing for $541 per month, the difference is $735 per month over purchasing which, if saved would equal $28,665 at the end of the 39 month lease. The residual is set at $34,452 at 39 months, with the option to buy. At this point I would have a substantial downpayment. I could buy it or turn it back in.
8/1/11, 10:02 PM
#43
Mach 1 Member
This is one of my favorite subjects.
Look, leasing isn't a good thing for everyone. But it's also not a bad thing for everyone either.
Take my situation... my wife and I like to drive new cars. We used to:
1. Finance a "fairly new", low mileage car.
2. Pay the car off in five years.
3. Count the days for the last year of the loan because we are ready for a new car. As soon as the car was paid off, we'd go back to #1.
The cars generally had a 3/36k warranty but were financed over 5 years so we were responsible for repairs for that final two years as well. Catastrophic repairs are no generally required in that timeframe but I have replace plenty of power window motors, alternators, etc. after warranty expired.
Now we lease cars exclusively so in our situation we:
1. Finance a brand new car over the course of 36 months
2. Replace it at the end of the lease -- right around when the itch for a new vehicle would initially be felt.
3. Are responsible for only the most basic of maintenance items since so few miles are really put on the car.
4. We acquire a brand new car for a much smaller monthly payment than if we had financed it conventionally.
So... what are the negatives? We both work within 10 miles of home so mileage isn't really a consideration for us. We don't "own" the car but as long as it's financed you don't really "own" the car anyway.
A popular misconception is that at the end of the lease you have to just turn the car in and walk away. This is wrong in MOST situations. Generally at the end of the lease you can either trade or sell the car. The only situation in which you would turn it in is if the car is worth much less than the residual value.
I'm not saying that leasing works for everyone in every situation but it definitely works for us.
Look, leasing isn't a good thing for everyone. But it's also not a bad thing for everyone either.
Take my situation... my wife and I like to drive new cars. We used to:
1. Finance a "fairly new", low mileage car.
2. Pay the car off in five years.
3. Count the days for the last year of the loan because we are ready for a new car. As soon as the car was paid off, we'd go back to #1.
The cars generally had a 3/36k warranty but were financed over 5 years so we were responsible for repairs for that final two years as well. Catastrophic repairs are no generally required in that timeframe but I have replace plenty of power window motors, alternators, etc. after warranty expired.
Now we lease cars exclusively so in our situation we:
1. Finance a brand new car over the course of 36 months
2. Replace it at the end of the lease -- right around when the itch for a new vehicle would initially be felt.
3. Are responsible for only the most basic of maintenance items since so few miles are really put on the car.
4. We acquire a brand new car for a much smaller monthly payment than if we had financed it conventionally.
So... what are the negatives? We both work within 10 miles of home so mileage isn't really a consideration for us. We don't "own" the car but as long as it's financed you don't really "own" the car anyway.
A popular misconception is that at the end of the lease you have to just turn the car in and walk away. This is wrong in MOST situations. Generally at the end of the lease you can either trade or sell the car. The only situation in which you would turn it in is if the car is worth much less than the residual value.
I'm not saying that leasing works for everyone in every situation but it definitely works for us.
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