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Leasing can be great for a number of reasons, but everyone keeps bringing up a point worth paying attention to. There is no manufacturer supported lease on the Vette which means high money factor (interest rates) and a poor residual, or way to much money invested.
If you want to defer payment on a Vette than the smartest thing you can do is trade your S4 towards the Vette but ask for an equity check instead of actually applying your trade as down payment, and then use that money to pay your Corvette payment. I'm not sure what your Audi is worth, But if it were me I would trade your Audi, and use enough of your car as a down payment to immediately put you in a equitable position on the car, and take the rest of your trade value as cash. Use that cash to make your payments and you can always dump the car if you hate it because you applied enough of your trade allowance towards the vehicle to have equity. That way you get the benefit of an early out (like a lease) but aren't paying ridiculous terms because of the unsupported lease.
No way any new 2015 Corvette has an MSRP at $43,965, actually is $53,965.....and not sure about that either.
They don't provide the mileage limitations and they don't tell you the length of the lease.
If your an individual buy the car outright, don't lease it. If you have the opportunity for some write-offs carefully crunch the numbers.
i am not a fan of auto leasing. The end cost is too high and after the lease is over you have nothing to show for your expense except the right you had to drive a Corvette.
Typo error fixt to 53,965.
I agree all terms and conditions must be known and understood.
Leasing is stupid. I still cant wrap my head around the idea of borrowing a car and having absolutely nothing to show for it at the end of the lease.
If that is really your opinion, then maybe a couple of courses in finance and economics might change your opinion.
Every new car, except maybe some limited edition Ferrari's, Porsche's and other exotics depreciate in value over time - so unless you plan to own a car "forever" (meaning until you die) you will buy it for one price and sell it for a lower price at some later date.
Many people plan on buying their new car (C7 or anything else) for a certain period of time - say 3, 4 or 5 years.
At the end of 3, 4 or 5 years, how much will it be worth - the difference between what you paid for it, what it is sold for and interest carrying costs are your 3, 4 or 5 year ownership cost.
Take that number and divide it by the number of months and that is your monthly cost of ownership.
If the 36, 48 or 60 month lease for the same vehicle is less that the monthly cost of ownership, lease is financially a better deal.
We lease most of our daily drivers - Honda/Acura runs many supported leases, as does Jeep on the Grand Cherokee, and as a result, our leasing every three years is cheaper than buying.
Say No to leasing. It's a bad financial decision. You spend money for three years and you have nothing to show for it afterwards.
Sure, buy it back. But you'll end up spending more than what you would have originally.
Don't do it.
I have leased vehicles since 1989, so I have a bit of experience. Never, ever got burned. Not that I would lease a Corvette, but other vehicles, yes. On several occasions, I had equity in my lease when it was time to turn in. Year ago in June, I leased my 7 GC Jeep Overland. Had equity in the 2011 I turned in. Dealer wrote me a check for $4k.
When I was running my own company I leased cars for myself & my salesmen and it was an economical way to provide cars & I could right off and save expenses. But, to lease a Corvette and have to turn it in is in my mind like going to Avis of Hertz and renting. I have one friend that leased a Vette, loaded it up with mods. When the lease was about over he had all the mods removed and put on his new Vette that he leased. Worked fine until the C6's came out.
What are all the Used 2015s from? I see several hundred on Cars.com and I am struggling to find out why. Do folks buy a car for a couple of months and flip it into another color? Surely they are not leased for 6 months as I would have thought a lease would be for a typical 3 year term. So why are there so many used 2015?
If that is really your opinion, then maybe a couple of courses in finance and economics might change your opinion.
Every new car, except maybe some limited edition Ferrari's, Porsche's and other exotics depreciate in value over time - so unless you plan to own a car "forever" (meaning until you die) you will buy it for one price and sell it for a lower price at some later date.
Many people plan on buying their new car (C7 or anything else) for a certain period of time - say 3, 4 or 5 years.
At the end of 3, 4 or 5 years, how much will it be worth - the difference between what you paid for it, what it is sold for and interest carrying costs are your 3, 4 or 5 year ownership cost.
Take that number and divide it by the number of months and that is your monthly cost of ownership.
If the 36, 48 or 60 month lease for the same vehicle is less that the monthly cost of ownership, lease is financially a better deal.
We lease most of our daily drivers - Honda/Acura runs many supported leases, as does Jeep on the Grand Cherokee, and as a result, our leasing every three years is cheaper than buying.
True, it is cheaper on a monthly basis to lease than to buy.
But after that 3-5 year period on the lease you have to return the car. Sure, you get another new car and another lease, but that is another 3-5 years of paying money to something you won't ever own. After all of it you have nothing in the end. Then that money you could be saving by having no payment, if you would have just bought the car to begin with, is going toward a new lease. It's a never ending cycle. The only person benefitting in leasing is the dealer.
True, it is cheaper on a monthly basis to lease than to buy.
But after that 3-5 year period on the lease you have to return the car. Sure, you get another new car and another lease, but that is another 3-5 years of paying money to something you won't ever own. After all of it you have nothing in the end. Then that money you could be saving by having no payment, if you would have just bought the car to begin with, is going toward a new lease. It's a never ending cycle. The only person benefitting in leasing is the dealer.
It just makes no sense to me.
Leasing is
It is not just cheaper on a monthly basis - it is overall cheaper when the math says so - which is usually just when the leases have factory support.
You seem to be the person who buys a car and keeps it until it no longer functions - which is fine for you, and likely cheaper over 10, 20 or 30 years; but there are many of us who want (and can afford) a new car every 3-4 years, and for us we don't mind spending that extra money. For those who get new cars every 3-4 years, there are many times that leasing is a win-win: lower monthly payments and a lower overall net cost of ownership.
The solution to the OP's problem is simple. Purchase the corvette, put the minimum down payment and bank all the cash from selling or trading the S4. Make the payments from the banked money. With interest rates likely to trend up soon he might be earning a higher interest rate on the savings then the loan.
It is not just cheaper on a monthly basis - it is overall cheaper when the math says so - which is usually just when the leases have factory support.
You seem to be the person who buys a car and keeps it until it no longer functions - which is fine for you, and likely cheaper over 10, 20 or 30 years; but there are many of us who want (and can afford) a new car every 3-4 years, and for us we don't mind spending that extra money. For those who get new cars every 3-4 years, there are many times that leasing is a win-win: lower monthly payments and a lower overall net cost of ownership.
How is it a lower cost of ownership if you're still spending money on a new car every 3-4 years and, in the end, you have nothing to show for it but another 3-4 years of monthly payments? By the time you get done you could of bought 1 1/2 cars and you still have NADA. It makes no financial sense. You are literally throwing your money out the window or down the toilet. There is no "Ownership" in leasing a vehicle.
Leasing gives people the illusion they are saving money and can afford a car when in reality, they can't. It's a first rate trap.
I'd rather buy the car and then in another 3-4 years buy another car to add to the collection/garage.
Last edited by OrioleFan; Jul 6, 2015 at 03:08 PM.
The solution to the OP's problem is simple. Purchase the corvette, put the minimum down payment and bank all the cash from selling or trading the S4. Make the payments from the banked money. With interest rates likely to trend up soon he might be earning a higher interest rate on the savings then the loan.
Leasing is good if you get in on a lease special with a 0% money factor and a high residual value and it saves you a lot of money on sales tax due to you only paying tax on the payments. You are not upside down at the end unless you are over the mileage or it has unacceptable damage. You have the option of buying the car at the end of the contract or just turning it in. The problem is that I am unaware of GM having a great lease special at this time.
How is it a lower cost of ownership if you're still spending money on a new car every 3-4 years and, in the end, you have nothing to show for it but another 3-4 years of monthly payments? By the time you get done you could of bought 1 1/2 cars and you still have NADA. It makes no financial sense. You are literally throwing your money out the window or down the toilet. There is no "Ownership" in leasing a vehicle.
Leasing gives people the illusion they are saving money and can afford a car when in reality, they can't. It's a first rate trap.
I'd rather buy the car and then in another 3-4 years buy another car to add to the collection/garage.
^^^^^ this was my father's belief until he needed a new transmission in his owned from new, 10 year old 56k miles Acura TL. Between the brakes, regular maintenance, tires, seat problem, etc over the years i showed him that it cost him as much to own as it was to lease except the money on the down payment invested would have brought him an additional $7k (worth in the stocks he already owns) on top of the down payment over the past 10 years.. that's through the '08 debacle lol
listen, when you factor in the repair costs of a vehicle OUT OF WARRANTY as well as the maintenance costs of ownership in general you cannot Touch a leased vehicle (with factory subsidies)
unless you are the luckiest person on earth to NOT have anything break on your purchased, paid off vehicle. this is ESPECIALLY true when referring newer vehicle with the costs being what they are for even minimal repairs. god forbid you have to replace a big ticket item, like in my father's case at $5,500 for a trans
Leasing gives people a chance to buy a vehicle they otherwise couldn't afford and you'll probably see more of it since car prices are climbing faster than wages. Personally, I'm going to start buying 2-3 year old cars. The highest rate of depreciation will be over and you usually could still get an extended warranty if desired.
I was looking at a 2013 C6 Anniversary Edition to compare prices to new. For argument sake, lets just say someone finances the whole thing on a 7 year loan brand new. Two years later someone can finance the same car for a 5 year loan but save around $150 a month. This doesn't matter if you are a big cash down or paid in full person because you still lose the money on the new car.
Leases are cheaper, limited to 10-12k miles per year and what you can do to the car. In 3 years you get another brand new car payment chances are on a car you couldn't afford otherwise.
True, it is cheaper on a monthly basis to lease than to buy.
But after that 3-5 year period on the lease you have to return the car. Sure, you get another new car and another lease, but that is another 3-5 years of paying money to something you won't ever own. After all of it you have nothing in the end. Then that money you could be saving by having no payment, if you would have just bought the car to begin with, is going toward a new lease. It's a never ending cycle. The only person benefitting in leasing is the dealer.
It just makes no sense to me.
Leasing is
See, this is where my situation is different. My intent will be to buy-out the lease and the end of the term.
Whether I choose the C7 Z51 or the M3, I will not want to give it back in 3 years.
My whole reasoning is to defer a car payment for a few years.
While I like the idea of financing the min. and banking the rest to make the payments, that's not a smart move for me as my credit is in rebuild mode from a divorce and I will not qualify for a good rate.
In the end I am trying to decide if I want to bite the bullet and use the entire equity from the S4 and finance the rest and have a small car payment, albeit a car payment , or lease and not have a car payment for a few years and buy-out the lease when my income is higher.
I just want to know if I chose the latter, how much more will I pay at the end of the day.
Designer Imagines A Corvette That Looks More Like a Corvette Than the Corvette
Slideshow: A Jaguar designer's personal project imagines what a modern front-engined Corvette might look like if Chevrolet revisited the golden age of the Stingray.
I have one friend that leased a Vette, loaded it up with mods. When the lease was about over he had all the mods removed and put on his new Vette that he leased. Worked fine until the C6's came out.
