Leases are good for a lot of people. You are losing money either way, buy or lease. At the end of the lease you can buy the car, so you have wasted nothing other than the same old depreciation. You can negotiate the residual value down a couple of grand too. That keeps them from even needing to take the car in.

If I pay $550 a month for a lease and Joe pays $775 for a "purchase", the bank still owns the car and it depreciates at the same rate. Maybe more so for Joe if he drives a lot. Plus as someone mentioned, you are financing about $1500 more in sales tax so that ups the payment even more. Now take that difference of $225 a month and invest it. You will have enough to buy the car at the end plus have used your money to make money. You are protected against cars with safety issues. Take for example, my 98 Explorer. Residual on that was $16000 after 4 years. They were going for $5-6000 at auction and little more on the street. I told them to keep it and left without losing 10 grand. Then I paid cash for a Ranger. A $23,000 truck that I saw the Internet sales manager on. Got it down to invoice then took the $4500 rebate. Walked out leaving them with $15 grand, I got a new truck with the money I set aside so at the end of my lease I was rewarded.

On my car I calculated all of it out and it cost me $1200 more to lease rather than buy. Yet I had a 4 year warranty, leased the Volvo for 4 years, banked the rest of the money and when it came time to decide to buy or turn in I was in a great position. I negotiated them down $2000 and paid cash for the rest. I have a brand new looking car with low miles and saved $800 over the purchase. I also invested the money I was saving and made several more thousand dollars. Now it's parked next to the Ranger, is owned and I ordered my 05 Lemans blue C6 today!!!!!!! I will probably lease.

 

if you lease it can you modd it ?

 

Can you mod any other rented car?

Sure you can, but when you do so you are modding someone else's car.

I have leased cars in the past myself. I lease my children's cars but I would never lease a Vette as I tend to keep mine for a long time.

 

My god. I've put heads, cam and NOS on leased cars. Just take it back off. Wow some people don't think too straight.

 

Especially those who would add such modifications to someone else's car.

You screw someone else's car up with such modifications you are going to have to fix it to their satisfaction if they discover evidence of NOS, heads, cam, etc. You F up your own car, thats something totally different. You can fix it at your leisure, or when you get the dough, or you can "upgrade" the parts in the repair if you wish.

You F up the drivetrain or the engine in someone else's car by adding the power of heads and cam, or nitrous, it better be fixed before you turn it back in. And they could insist on new parts as opposed to the ones you get off the parts for sale section of this forum.

I don't care if the gears started whining 2 days before you were scheduled to turn it back in. They find evidence of NOS or anything else they don't like, and you will pay to have "their" car fixed.

And why would you pay the labor costs twice?????? Once for installing heads and cam and again for removing them and reinstalling the stock heads and cam????? Once for installing torque converter and gears, and again to reinstall the stock torque converter and gears.

Why would anyone modify a rental car???????

 

This thread is too funny...funny that people are so uninformed about leasing.

The truth has shown up many times...if you don't get a business deduction for the lease, it just isn't in your favor...

Leases are made for people who can't afford the car they want...gets them a low monthly payment...but they never have any equity. If a buyer is smart, he can still trade in just as often with a purchased car, and come out ahead every time.

Me, I usually don't keep a car for more than a year or 2...and I prefer to pay cash. Most people don't understand paying cash for a vehicle...because they can't afford it...well, all you have to do is set aside the payments in advance for a few years, then buy it. Then, while you own it, set aside what you would pay for monthly payments, and you'll have enough to buy another later...

But, alas, we live in a world where people don't want to wait for things. Everyone thinks they should get what they want RIGHT NOW.

I'll be honest...I'd love to have a C6...but it's not worth making a monthly payment for...so my cash is going into a new home instead...I'll save the payment for a few years and buy one then...

I will say...for those that want to beat up on their cars...maybe a lease is okay...but I couldn't do that to my cars...too much pride in ownership...

 

With the comment about leasing. HOWEVER, life is short, and with money at 3.25%, I choose to buy and see what happens down the road. After all regardless a car (new) DOES depriciate, but what I am paying for is the 'fun factor' much like a nice exciting long vacation!

 

I knew a guy like that. He budgeted a car payment every month, just like he budgeted a rent payment. That way he is guaranteed to always be driving a fairly new car.

It seems to be a California attitude.

 

Want no---have yes

 

Interesting read. Some of you obviously are very good at finances, especially if you can do better than buying while leasing. Buying with payments/interest or leasing really means that you can't afford the car right now, otherwise just pay cash. Leasing is good for dealers, for the simple reason that they can talk someone into leasing a more expensive car than they could buy, plus they are guarenteed at the end of the lease to have you come back in and get another car.

But if you're already going to get an expensive car like a vette, then maybe leasing is good for you. I just wouldn't want the high monthly payments. I'd rather pay up front and trade in a current car, and get relatively lower payments. Its all what you feel comfortable with. Some hate to take their money out of the bank, others like me, hate to have a high monthly payment.

One nice thing about buying is that at the end of the period, you don't have to get another car, its yours. With leasing, at the end, you have to get another car or buy out your current one. Pay now or later, just depends on what you feel more comfortable with.

 

Pay labor twice? I do it all myself. Some guys know how to work on cars. Evidence of NOS. Sure. Explain that one too me. Do you know how they look them over? And how would you tell. You could not evidently.

Tons of guys mod cars they are making payments on. That's "someone elses car." If they take it back on missed payments you have just lost it all. It's so easy to put stuff back to stock and I usually keep cars at the end of the lease.

These auctioneers do not care about mods as long as the car is safe, passes smog and if in reasonable condition.

Let me ask. Anyone ever turn a car in with tinted windows, aftermarket head unit, wheels, shift ****? That's what it all boils down too. I do cut into crap and start welding stuff on, except for one. I TRADED a leased car in early and it had welded on sub frames. The dealer thought it was cool. You have NO experience. What a softie.

 

Why would anyone listen to you. Like trading for a new car every two years is smart. What a joke. Cars are not investments so by getting money out at the sale just means you paid more in advance and let someone use you money. I do that too. It's called funds. There I make money on my money.
Also, my house is only 4600 sq ft with a 5 car garage. I paid cash two months ago. I am meticulous with my cars or anyone else's for that matter. I'd put my detailing, maintenance technique and schedule up against anyones.

 

Something I own, or will own, has value to me and there is pride in ownership. Something I rent has very little if any value to me and I will make no effort to "improve" it.

Technically anyone paying a mortgage is living in someone else's house. However it is quite common to say, redo the kitchen or the bathroom, or the deck or patio in a house where the occupants still have a mortgage to pay.

Likewise it may be common for people to modify cars that they still owe a balance on.

However it is almost unheard of for a tenant in a rented apartment or house to pay for the same upgrades to their residence.

And I ain't paying in money, time, my skills or expertise, or effort to modify a car I rented from Hertz, AVIS or GMAC.

Even if I do the work myself, it is going to cost me in money and or sweat equity, to do and then turn around and undo those modifications. Nothing is "free" your time, skills and effort are worth something.

I am willing to gladly put those into something I own, or will someday own....... but not into something I rent.

 

This whole thread was started to point out an alternative to traditional financing or leasing (i.e. Financing with a balloon pmt. at the end of the term. Go back & read the first post).

Why is everyone debating traditional financing or leasing instead of commenting about the original topic?

 

A good rule to live by:
Always leave something in better condition than you found it. And this applies to anything...house rentals, car rentals, a campground, anything borrowed. This does not cost...it pays!

 

I must live in the wrong state, my taxes and dealer prep were close to $6000. Bringing the out the door cost almost to 70K.

 

Unless you are on the last car you will ever own, and plan to be buried in it, EVERYONE makes car payments. It's either to pay off a loan plus interest or into a savings or investment account so you will have the money plus interest earned to pay cash. Then your account is empty and you start all over again paying yourself.

 

Let's throw another option into the mix. It will not be for everyone, but it can certainly save you some money.

Why not buy used? Let the first owner lose his money on the depreciation? Granted the C6 has only been out a few months, but it will not be long before they are 1 year old and the used cars will be seen more often.

I've only bought 1 new car in my life, and I didn't like the beating I took. I made money on 3 of my first 4 Vettes I ever owned by buying used. I love to drive nice cars for free.

Continue to buy your cars new and I will find someone that "must" sell his C6 at a bargain price.

Now back to your regular program.

 

I will be leasgin my Vert when it arrives. This is a third car for the family. My primary car a Z71 Suburban I put alot down and purchased at 1.9% for 60 months. I plan on keeping it a long time. Same thing with the wife's 5 series BMW.

But the Vert will be a weekend fun car and occasional week day cruiser. I CAN writeoff the lease payments for my Schedule C income and in 3 years I can buy it or just turn it in and maybe get another third car "new Vette - Porshe Turbo?" or maybe not anything at all. Lot's of options and no worries about the value in 3 years. Worse case is I turn it back in.

BTW most people will agree interest rates are going up. I think in 3 years that could help resale vaules on used cars. Especially high end ones. Because people might not be able to afford the new ones in 3 years with the combination of higher interest rates.

 

best of all worlds: BUY it with 0% financing and about $7k off MSRP.

thank you GMAC!