I need some financial advice on lease vs. buy
09-13-2007, 03:58 PM
#1
Racer
Thread Starter
I need some financial advice on lease vs. buy
Buying vs. leasing financial questions.
I’m trying to figure out what is the best route for me. I currently drive my toy car about 3k-4k miles per year. I’m guessing I might drive the Vette up 7k per year just because I want to drive it more. My wife and I both have company cars so we don’t need a daily driver. We lease a BMW X3 for our going to the store and road trip car with the dog and we drive that car about 10k miles per year.
I need to keep my payment around the $600 range or less. I’m considering a purchase with a $10-12k down payment and a 72 mo note. I’m also looking at doing a 36-42 month lease with 0-$2700 down just to pay for taxes. If my calculations are correct, this would give me about the same payment.
Are there any incentives to turning in a lease car with less than the 10k miles per year? If I decide to purchase the car after the lease term am I wasting my money by paying too much for this car? I like the idea of keeping my $10k and driving the car for 3 years with the same payment as a purchase, but… If I purchase the car with $10k down, can I get my $10k back in a sell? Or could I get even more cash back selling the car after paying on it for 3 years?
I figure there has to be some smart financial people here that can give me advice that makes sense. I’m looking at a 2008 1LT or 2LT that invoices for around $43-44k.
I’m trying to figure out what is the best route for me. I currently drive my toy car about 3k-4k miles per year. I’m guessing I might drive the Vette up 7k per year just because I want to drive it more. My wife and I both have company cars so we don’t need a daily driver. We lease a BMW X3 for our going to the store and road trip car with the dog and we drive that car about 10k miles per year.
I need to keep my payment around the $600 range or less. I’m considering a purchase with a $10-12k down payment and a 72 mo note. I’m also looking at doing a 36-42 month lease with 0-$2700 down just to pay for taxes. If my calculations are correct, this would give me about the same payment.
Are there any incentives to turning in a lease car with less than the 10k miles per year? If I decide to purchase the car after the lease term am I wasting my money by paying too much for this car? I like the idea of keeping my $10k and driving the car for 3 years with the same payment as a purchase, but… If I purchase the car with $10k down, can I get my $10k back in a sell? Or could I get even more cash back selling the car after paying on it for 3 years?
I figure there has to be some smart financial people here that can give me advice that makes sense. I’m looking at a 2008 1LT or 2LT that invoices for around $43-44k.
09-13-2007, 04:01 PM
#2
Team Owner
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St. Jude Donor '15
"In honor of jpee"
what are the imputed car values (residual) at the end of the two lease terms, what are the finance/lease rates (percentages)?
09-13-2007, 04:05 PM
#3
Racer
Thread Starter
I've read here that the residue value of a 2008 Vette is at 58 plus 3 points for 10k miles per year (61?).
Last edited by Crimecrusher; 09-13-2007 at 04:12 PM.
09-13-2007, 04:07 PM
#4
Heel & Toe
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Do a lease or a Smartbuy, get a new one ever 3 years.
You can save your $10-$12 thousand down.
For as little as you drive and just using it as a toy car, that seems a better way to go.
Always under warranty, and much easier to get the latest and greatest.
You can save your $10-$12 thousand down.
For as little as you drive and just using it as a toy car, that seems a better way to go.
Always under warranty, and much easier to get the latest and greatest.
09-13-2007, 04:07 PM
#5
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St. Jude Donor '15
"In honor of jpee"
maybe that's what you read and it may be correct, but every lease is different unless it's a mfr. sponsored one.
09-13-2007, 04:10 PM
#7
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St. Jude Donor '15
"In honor of jpee"
09-13-2007, 04:27 PM
#9
Racer
Thread Starter
Assuming that the lease rates and purchase finance rates are according to my calculations...then am I better off 3 years from now with a 2008 Vette that I've paid on for 3 years or a lease that I can turn in. Where was my money better spent?
09-13-2007, 06:26 PM
#10
Unless you can write the lease payments off as a business expense, you'll come out ahead buying the car. That's because in the end after the payments are finished, if you purchase you wind up with a car that still has some depreciated value. If you lease, all you wind up with is a bunch of cancelled checks for lease payments.
09-13-2007, 07:48 PM
#12
Le Mans Master
Buying vs. leasing financial questions.
I’m trying to figure out what is the best route for me. I currently drive my toy car about 3k-4k miles per year. I’m guessing I might drive the Vette up 7k per year just because I want to drive it more. My wife and I both have company cars so we don’t need a daily driver. We lease a BMW X3 for our going to the store and road trip car with the dog and we drive that car about 10k miles per year.
I need to keep my payment around the $600 range or less. I’m considering a purchase with a $10-12k down payment and a 72 mo note. I’m also looking at doing a 36-42 month lease with 0-$2700 down just to pay for taxes. If my calculations are correct, this would give me about the same payment.
Are there any incentives to turning in a lease car with less than the 10k miles per year? If I decide to purchase the car after the lease term am I wasting my money by paying too much for this car? I like the idea of keeping my $10k and driving the car for 3 years with the same payment as a purchase, but… If I purchase the car with $10k down, can I get my $10k back in a sell? Or could I get even more cash back selling the car after paying on it for 3 years?
I figure there has to be some smart financial people here that can give me advice that makes sense. I’m looking at a 2008 1LT or 2LT that invoices for around $43-44k.
I’m trying to figure out what is the best route for me. I currently drive my toy car about 3k-4k miles per year. I’m guessing I might drive the Vette up 7k per year just because I want to drive it more. My wife and I both have company cars so we don’t need a daily driver. We lease a BMW X3 for our going to the store and road trip car with the dog and we drive that car about 10k miles per year.
I need to keep my payment around the $600 range or less. I’m considering a purchase with a $10-12k down payment and a 72 mo note. I’m also looking at doing a 36-42 month lease with 0-$2700 down just to pay for taxes. If my calculations are correct, this would give me about the same payment.
Are there any incentives to turning in a lease car with less than the 10k miles per year? If I decide to purchase the car after the lease term am I wasting my money by paying too much for this car? I like the idea of keeping my $10k and driving the car for 3 years with the same payment as a purchase, but… If I purchase the car with $10k down, can I get my $10k back in a sell? Or could I get even more cash back selling the car after paying on it for 3 years?
I figure there has to be some smart financial people here that can give me advice that makes sense. I’m looking at a 2008 1LT or 2LT that invoices for around $43-44k.
z51vett
09-13-2007, 08:09 PM
#13
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C7 of the Year - Unmodified Finalist 2021
I have the best of both worlds, I have a term loan that works just like a lease - but I don't know if it is available in the U.S. Here, it is called a buy-back car loan.
09-13-2007, 08:42 PM
#14
Racer
Thread Starter
09-13-2007, 08:49 PM
#15
Double Naught Spy School
How about you buy a slightly used Z06 and just keep it forever? 
09-13-2007, 08:50 PM
#16
8th Gear
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I'm also considering a lease. I'd like to add one factor to your decision making process that I'm considering when comparing a lease vs. buy. If you lease the car or buy it and possibly sell the car in three years you'll probably have to deal with the accelerated depreciation that comes with a new Vette being introduced or out on the street. At least when you lease, it's GM that takes the hit. I'm adding this to my comparison because if there's one thing I've learned from lurking on this site is that all cars depreciate but the previous generation really takes a hit. Might make it a clearer picture if you don't want to hassle with selling a car that's taken a big drop.
Ben
Ben
09-13-2007, 09:21 PM
#17
Drifting
Unless you can write the lease payments off as a business expense, you'll come out ahead buying the car. That's because in the end after the payments are finished, if you purchase you wind up with a car that still has some depreciated value. If you lease, all you wind up with is a bunch of cancelled checks for lease payments.
