CGGS

Ok, so I'm pretty educated on how to buy a car, but know nothing about leasing a car.

I have read the articles online about buying VS leasing, but none really tell you the typical cost difference between total cost to buy as opposed to leasing and buying out the lease after the lease is up.

I know there are a lot of variables, but in general, how much more do you pay for a vehicle (say a 2LT Z51, for instance) if instead of buying, you lease to see how much you like the car and then decide you want to purchase it after the lease is up compared to buying it from the beginning?

Are we talking thousands, 10+ more thousand, or maybe just a couple thousand???

When I buy a car like a Corvette, I plan on keeping it for a long time, but in the end the reality may be different. Ultimately I want a car I love and will own fully one day.

But by leasing first (assuming you want to own the car), how much more will you pay on average.

ratman6161

Try here: http://www.consumerreports.org/cro/2...sics/index.htm

STAGED

Sorry I cannot give you Corvette specific leasing pros/cons, but aside from common things you hear about leasing (good or bad), I think leasing is great if:

1) You go for a lease deal that's manufacturer subsidized. I don't think the Corvette is or ever will be. The Cadillac ATS during late 2012 to 2014 is an example of a car with so-so money factors but artificially very high residuals. There's no way you can beat it buying and selling in 3 years/30k miles. How do you know what's subsidized? A good clue is if it's broadly promoted by the manufacturer. Many low-end luxury cars that are nationally advertised are subsidized.

2) If you can write it off, like many lawyers do. That spells government or tax payer subsidies.

3) You typically don't drive too many miles on one car, and within the typically low lease mileage limits. You can buy mileage though.

4) You like to pimp in at least low-end luxury that's newish at any given time.

The first four are important. And can you imagine the government and manufacturer helping to pay for your car? You only pay tax for the depreciation, which is key if you like to have newish all the time.

5) You want to avoid high dollar repair bills on high end cars after the honeymoon period is over.

6) You don't let big physical mars go, and you don't drive in situations that scuff up your car...like dense cities.

Corgidog1

Leasing is great if you want a new car under warranty every 3 years and don't want to be hassled with selling it to the public.

If you plan on keeping the car with an extended period then buying is the cheaper alternative.

If you plan on mods, then do not lease.

Because Corvettes are not typically leased, I gotta think the lease rates are terrible.

NoOne

I would not lease a Corvette.

We lease everything but own our Corvette but there is one huge upside to leasing a car like a Corvette or any other car over 50-60 thousand dollars is sales tax.

This depends on your state. Michigan has only recently changed the rules where you only pay sales tax on the difference between the old/new car, bu they do not take effect till 2020 in total.

So in my case I was going to sell my '14 and buy a Z06 but I would have lost about 4K in sales tax, I had to pay the tax on my '14, then pay it again on the '15 which is a huge waste of money.

Other than that the lease rates are not great, buy/lease is almost the same money.

We lease both of our other cars but they are write offs and we like driving a new car. Audi usually can get you out of the car early and into a new car so we plan on keeping them 20-24 months.

Went through the same thing looking at a Porsche Macan Turbo. The buy made more sense than the lease if we were keeping it due to sales tax, but without a plan to keep it 6K in sales tax was quite a bit of money for a short term ownership.

grandpawmoses

Someone posted their proposed lease agreement recently. The leasing company was wanting over 100% more for the interest rate than banks & credit unions. The overall numbers were scary high.

Houston Z33

I drive way too damned much for a lease. I'm known to put on 10k mi in under 6 mos on a new toy.

dvilin

In theory when leasing you are paying only for the depreciated value of the cars value during the length of the lease. When you lease the residual value of the car at lease end will be a critical part of the agreement/deal. This is what you can buy the car for at the end of the lease.
So without complicating it with lease % cost etc, you can easily calculate what the total cost would be.

Corgidog1

Don't forget the other component-the money factor which is the time value of money. However, your simple method will get him in the ball park.

ILuvUMan

Don't know the specifics, but it's on the Internet so it must be true.

Here's a lease for $599 on a 2015 Corvette. ($3,094 on close, MSRP $53,965 ((Price wil be higher on a 2016))).

http://autodealio.com/chevrolet/leas...ette-stingray/

zcobra1

Try a Pen Fed payment saver loan, might be the ticket for your situation.

nmvettec7

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.

OrioleFan

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.

CGGS

I realize that, but that's my question. How much more typically?

I ask because I have an 2015 Audi S4 that I own out right, but want to trade it for a z51.

Thought I was ready for a sports sedan, but after having it for 6 mths, it's way too soft for me.

However I like not having a car payment for a few more years. I get annual raises at my job , so I would like to defer a car payment for about 3 years.

However with only 7k miles on the S4, I can still get a pretty good trade-in, but if I wait longer I'm losing purchasing power and I would rather be in a C7 z51 and depreciating rather than staying in the S4 and depreciating.

If I lease, I can forgo a car payment for a few years , while my income level grows.

I'm also debating an M3 lease, but my heart says C7 Z51 over the M3 and the C7 is cheaper equipped the way I would want both.

Whether I pick the M3 or C7 Z51, I'm pretty positive I will love it and want to keep it after lease end. That's the plan.

I was originally thinking of holding out for the GT350, but I think it will be over a year before the hype and the stealership's ADM dies down and I don't want to lose any more purchasing power in depreciation on the S4.

I want to make a move within the next month or so (especially since I will be ordering) before I have to buy tires for the S4.

LIStingray

From what has been posted here, the residual value for leasing at 12,000 mi/yr for a C7 is only about 45%, which is probably 15% lower than a private sale with similar mileage.
There will be no subsidized leases, and GM doesn't offer a lease program, so expect the money factor to be between 4.5% & 6%. Those two factors will make a C7 lease cost prohibitive.
Figure with a 5% money factor on a 60,000 MSRP, for a 3 year lease, you will be in the $1,150/mo range plus sales taxes. You could finance 100% of the C7 at 3.5% for 60 months and have an $1,100/mo payment, and after 3 years the C7 should be worth $36,000, which is 10,000 more than the loan balance would be.

OrioleFan

If you own the S4 then it's simple. Trade it in or sell it then buy the C7. I get not having a car payment but you're not happy now anyway.

The only way a lease makes sense is if you plan on rotating to a new Vette every three years and keep the S4 as your paid for daily driver.

And honestly, I strongly advise against leasing in that situation too. It's just not a smart financial move. Trade in the S4, get the Vette, and be done with it.

23/C8Z

the way i look at it is this... dump a ton of money down and buy with a higher payment and own in 5 years OR no money down lower payment leave your money in the market MAKING money and repeat every 3 years.. what do you have after 5 years? you have a 5 year old repair waiting for you. so you sell and get money back... how much vs investing it?


nothing wrong with leasing IF you are driving around the max miles allowed.. i always have extra room at the end of our leases but i still do not want to be tied down to yesteryear's technology and the repairs that follow.. best of luck (i personally wouldn't lease a corvette due to them not being Mfr subsidized as mentioned prior

but everything else we own is

bladex10

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.

OrioleFan

owc6

Ok. Call me simple, but, just WHERE do you lease a Vette? Even IF you can find someone to do this, the selection has to be pretty slim.