Leasing
Thread Starter
Racer
Joined: May 2005
Posts: 341
Likes: 4
Leasing
Since I am young and want too many things, I don't tend to keep my cars more than two years or so. I keep wanting to upgrade. I was thinking about leasing but I am not sure how it all works. How do you do insurance and how do you figure payments out with the price of the vehicle?
Melting Slicks
Joined: May 2005
Posts: 2,549
Likes: 0
From: MDT
i'm sure that many could respond at great length here, but without knowing a thing about your life circumstance (not our business here) the decision to buy or lease is a difficult decision. i've never leased nor do i plan to do so. have known many who leased then were stuck in a long term commitment that they were afraid to drive too many miles for fear of penalty charges. in terms of charges, never doubt for a second that although ostensibly cheaper than buying, the prices/charges are weighted in the dealer's favor. probably better to buy an inexpensive car so you can do other cool things. maybe even buy a vette some day. good luck. bub
Racer
Joined: Apr 2005
Posts: 401
Likes: 0
From: Ogden Utah
Insurance doesn't change from what I know, but the company you lease a car from may have strict deductible requirements.
There isn't a lease calculator that I have seen, as it depends on how long the lease will be, the base value of the car compared to the projected residual value, etc.. It will all be weighed in to the lease price.
If you are really concerned with keeping the price per month down, it may be best to wait a few years and save up a large part of the down payment or even buy one outright.
UT-Driven
There isn't a lease calculator that I have seen, as it depends on how long the lease will be, the base value of the car compared to the projected residual value, etc.. It will all be weighed in to the lease price.
If you are really concerned with keeping the price per month down, it may be best to wait a few years and save up a large part of the down payment or even buy one outright.
UT-Driven
Thread Starter
Racer
Joined: May 2005
Posts: 341
Likes: 4
Yeah just a dumb thought I had haha. I want to sell my hawk maybe for 4-5k more than I owe and use that as a down payment. I don't know how much my insurance will change. I heard it will go down but you never know with me being only 19. I am trying to looking for a 99 or 00 around 23k or so.
Melting Slicks
Joined: Mar 2004
Posts: 3,002
Likes: 0
From: Surrey BC
me being 19 and even stupider...i thought i could afford to lease a c6 
test drove one and wanted one for a daily driver so i could keep my c5 as a garage queen (my c5 was getting all the attention at the dealership... unlike the c6s 
) 
with 20 thousand down the payments were something like 1200 dollars a month (canadian dollars...on a fully loaded convertable) 
id rather walk on those rainy days buying would be much smarter...finance it if you can't afford to buy it out right...do payments and its a lot easier to sell it that way aswell...good luck 
test drove one and wanted one for a daily driver so i could keep my c5 as a garage queen (my c5 was getting all the attention at the dealership... unlike the c6s ) with 20 thousand down the payments were something like 1200 dollars a month (canadian dollars...on a fully loaded convertable) id rather walk on those rainy days buying would be much smarter...finance it if you can't afford to buy it out right...do payments and its a lot easier to sell it that way aswell...good luck
Drifting
Joined: Nov 2004
Posts: 1,426
Likes: 0
From: AnnArbor Michigan
St. Jude Donor '05
Originally Posted by bef99hwk
Yeah just a dumb thought I had haha. I want to sell my hawk maybe for 4-5k more than I owe and use that as a down payment. I don't know how much my insurance will change. I heard it will go down but you never know with me being only 19. I am trying to looking for a 99 or 00 around 23k or so.
As far as I know you cant lease any used vehicle, atleast with GMAC. And company incentives/discounts are only available for new models.
As far as insurance, its the same as buying a vehicle, only most banks require full coverage. Unlike other banks, that may only require basic coverage. Also, if you lease new from GM the vehicle is covered under what is called "GAP" Insurance, if anything should happen to it while under lease, GAP covers it. Its included in your lease plan for free.
Also, if you lease new from GM, they have a protection plan, that if you had a co-signer on the lease, and say you die, or the other person dies, the other isnt obligated to make the payments. This costs extra, around $5.00 a month I think.
The best time to lease, or buy, is the week after christmas. That is when the car companys throw in all the good incentives and discounts. I purchased a 2005 Colorado z71 quad cab fully loaded, in December of '04.
The sticker on the truck was just a little over 36000.00 - after everything was said and done I think I only paid a little over 25000 out the door.
hope this info helps.
Burning Brakes
Joined: Jul 2005
Posts: 982
Likes: 57
From: Charleston, SC South Carolina
Originally Posted by ebubman
i'm sure that many could respond at great length here, but without knowing a thing about your life circumstance (not our business here) the decision to buy or lease is a difficult decision. i've never leased nor do i plan to do so. have known many who leased then were stuck in a long term commitment that they were afraid to drive too many miles for fear of penalty charges. in terms of charges, never doubt for a second that although ostensibly cheaper than buying, the prices/charges are weighted in the dealer's favor. probably better to buy an inexpensive car so you can do other cool things. maybe even buy a vette some day. good luck. bub
Team Owner
Joined: Dec 2003
Posts: 57,408
Likes: 164
From: queensbury ny
leasing
insurance needs will be determined by what state you live in,first off.Like ny,you need 100/300 at least.you can not figure a lease payment yourself unless you have the money factors and all that.Go to www.gmac.com,or it might be www.chevrolet.com,something like that.they have a link on their site to figure lease payment,smart buy(which isn't so smart a buy!!!) if you only keep your car's 2 or 3 years,this might be a way for you.Leasing is not to bad as long as Buy enough mileage up front.You can not do serious mods to the car or you'll be charged at the end.you will be charged for excess wear and tear,bald or almost shot tires,etc.dings,scratches...do your homework.you should only need 2 or 3 grand down tops.or 0 down if you can do the payment.good luck.
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Race Director
Joined: Jun 2002
Posts: 12,198
Likes: 15
From: Columbia MD
The difference between buying and leasing is that with a lease, you are basically only financing the depreciation of the car over a specified term, that's where the lower payments come from. The higher the residual, the lower the payments. Insurance should not differ from buying the car.
Drifting
Joined: Sep 2000
Posts: 1,888
Likes: 230
From: Livingston County, Michigan
You should be able to do a calculation on leaseguide.com
With a lease you pay for two components: 1) for the depreciation of the goods (the car) over the time period, and 2) interest on the value of the goods (the car) during the time you have it.
A two year lease on a used Corvette can easily run $500/month or more if you have very little down. So, two years will run you $12k or so. Will you lose that much if you buy it and sell in two years?
Also - as already pointed out, be careful on mileage. Also be careful on "wear and tear" and also you can't mod a leased vehicle (unless you want to take everything off in the end).
With a lease you pay for two components: 1) for the depreciation of the goods (the car) over the time period, and 2) interest on the value of the goods (the car) during the time you have it.
A two year lease on a used Corvette can easily run $500/month or more if you have very little down. So, two years will run you $12k or so. Will you lose that much if you buy it and sell in two years?
Also - as already pointed out, be careful on mileage. Also be careful on "wear and tear" and also you can't mod a leased vehicle (unless you want to take everything off in the end).
Safety Car
Joined: Jun 2005
Posts: 3,775
Likes: 0
From: St Marys GA
Don't forget to look into the sales tax issue. This varies from state to state, and can be significant if your state taxes the full purchase price each renewal without credit for a trade.
You are smart to look at these things now before the emotions try to takeover in the showroom.
Good luck,
DBD
You are smart to look at these things now before the emotions try to takeover in the showroom.
Good luck,
DBD
Race Director
Joined: Aug 1999
Posts: 17,541
Likes: 2
From: Manhattan, KS Missing SoCal since 2005
Lease Calculator
They will provide leases on 2002 and newer 'vettes. My personal ride is leased through them, as was our Z06, and I've been happy with their service.
As was mentioned, check the sales tax rules for your state - there can be a significant tax advantage to leasing, because in many states, you only pay tax on the difference between the purchase price and the residual value, and it's spread over the lease term. (On my 2002, it's about $50/month added to the lease.) If I were to buy the car at the end of the lease, then I would owe the balance of the sales tax.
They will provide leases on 2002 and newer 'vettes. My personal ride is leased through them, as was our Z06, and I've been happy with their service.
As was mentioned, check the sales tax rules for your state - there can be a significant tax advantage to leasing, because in many states, you only pay tax on the difference between the purchase price and the residual value, and it's spread over the lease term. (On my 2002, it's about $50/month added to the lease.) If I were to buy the car at the end of the lease, then I would owe the balance of the sales tax.