C7 leasing
Intermediate
Joined: Jan 2020
Posts: 49
Likes: 20
i have worked in the auto industry for about 10 years so maybe i can help a bit because as a civilian i was completely against leases because "in the end i have nothing left to show for my money" mentality. Here in south florida people love driving luxury cars. Bmw, mercedes, audi,porsche, etc. The second you drive these things off of the lot you lose about 20 percent of their value. In the local auto industry about 95 percent of new car deals are leases. Why? Every 3 years you are in a brand new car. Always under warranty with roadside assistance included. If the car is involved in an accident you dont lose resale value because in the end its just a 3 year rental car. You can get a much more expensive car for a lower payment compared to financing. Also high end european cars are a fortune to fix if something breaks after the warranty is up. Now if you are into long lasting, cheap to fix cars like accords and camrys and like to keep them for 10 years or so then buying is a much better option in my opinion. Also buying might make more sense if you drive over 15k miles a year. Another thing to consider if you are driving a european luxury car that is out of warranty you might not have a monthly payment but when something breaks and that repair bill comes in i can assure you it will be a lot more than a typical car payment. Right now i work for a bmw store and if you have a 2010-2011 out of warranty m3 and the transmission goes out thats approximately a $6-$8k repair. If you look at your car payment the same way you look at your cell phone bill or hoa payment it makes more sense. You will always have a payment but in return you will always be driving a fairly new car, under bumper to bumper warranty, free car washes and roadside assistance included and with some manufacturers like bmw even the basic maintenance is included. I would have loved to lease my 2018 z06 if the lease programs on it were good but they weren't so i had no choice but to buy it. Also keep in mind if you buy a car, keep it for 3 years and put 36k miles on it and then sell or trade it in you lost way more in depreciation than you would have lost in monthly payments. Youll lose even more if the car was in an accident and now has a bad carfax. Also in florida gap is included in a lease so even if you didnt put much money down all you do is pay your $500 deductible if the car is totaled or stolen and came back in and get a new car. Hope this helps.
Burning Brakes
Joined: Dec 2019
Posts: 1,043
Likes: 814
From: Virginia
I have worked in the auto industry for about 10 years so maybe I can help a bit because as a civilian I was completely against leases because "In the end I have nothing left to show for my money" mentality. Here in south florida people love driving luxury cars. Bmw, Mercedes, Audi,Porsche, etc. The second you drive these things off of the lot you lose about 20 percent of their value. In the local auto industry about 95 percent of new car deals are leases. Why? Every 3 years you are in a brand new car. Always under warranty with roadside assistance included. If the car is involved in an accident you dont lose resale value because in the end its just a 3 year rental car. You can get a much more expensive car for a lower payment compared to financing. Also high end european cars are a fortune to fix if something breaks after the warranty is up. Now if you are into long lasting, cheap to fix cars like accords and camrys and like to keep them for 10 years or so then buying is a much better option in my opinion. Also buying might make more sense if you drive over 15k miles a year. Another thing to consider if you are driving a european luxury car that is out of warranty you might not have a monthly payment but when something breaks and that repair bill comes in I can assure you it will be a lot more than a typical car payment. Right now I work for a BMW store and if you have a 2010-2011 out of warranty M3 and the transmission goes out thats approximately a $6-$8k repair. If you look at your car payment the same way you look at your cell phone bill or HOA payment it makes more sense. You will always have a payment but in return you will always be driving a fairly new car, under bumper to bumper warranty, free car washes and roadside assistance included and with some manufacturers like BMW even the basic maintenance is included. I would have loved to lease my 2018 z06 if the lease programs on it were good but they weren't so I had no choice but to buy it. Also keep in mind if you buy a car, keep it for 3 years and put 36k miles on it and then sell or trade it in you lost way more in depreciation than you would have lost in monthly payments. Youll lose even more if the car was in an accident and now has a bad carfax. Also in florida GAP is included in a lease so even if you didnt put much money down all you do is pay your $500 deductible if the car is totaled or stolen and came back in and get a new car. Hope this helps.
I’m definitely of the old school mindset of buying a car slightly used, paying cash for it, and then keeping it for 150k miles. This whole idea of renting a car like you would an apartment is very foreign to me. I have always been under the impression that people do it to drive something the really cannot afford. It never crossed my
mind that some would do it for the convenience of it.
I still would personally never do it, but to each their own. I would imagine that there is still a sect of the people that lease that do it because they are trying to “keep up with the Joneses” and they can’t actually afford what the aspire to drive.
Last edited by Jason71; Feb 10, 2020 at 05:32 PM.
Melting Slicks
Joined: Sep 2004
Posts: 3,472
Likes: 2,246
From: Southern NJ
Well, I love when someone asks a simple question and nobody answers it but give all kinds of information that doesn't actually answer the actual question.
Here was my deal. 2LT Grand Sport Vert very well optioned listed for $82k and change. Dealer discount was $10k and change. Amount financed was about $72k plus dealer fees/registration fees, tire/wheel insurance, etc. 1,000 miles per month allowance.
39 month lease including sales tax. $1041/month. Residual at end of term was around $41k. Financed through GM financial. Previous vette lease was around $977/month with a $47k residual financed through Ally.
Leasing offers, rates and residuals change and can vary based on time of the year, how many years into a generation, manufacturer incentives, credit score, etc so not everyone will get the best lease rate depending on various factors besides the dealer discount.
Yes, I compared the monthly payment buying vs leasing. I came out ahead with the lease. No, I don't modify my car, No I don't go over the mileage allowance. Yes, I want a new car around every 3 years and yes, I want to walk away from the previous car and get into the new car with no hassle whatsoever.
Here was my deal. 2LT Grand Sport Vert very well optioned listed for $82k and change. Dealer discount was $10k and change. Amount financed was about $72k plus dealer fees/registration fees, tire/wheel insurance, etc. 1,000 miles per month allowance.
39 month lease including sales tax. $1041/month. Residual at end of term was around $41k. Financed through GM financial. Previous vette lease was around $977/month with a $47k residual financed through Ally.
Leasing offers, rates and residuals change and can vary based on time of the year, how many years into a generation, manufacturer incentives, credit score, etc so not everyone will get the best lease rate depending on various factors besides the dealer discount.
Yes, I compared the monthly payment buying vs leasing. I came out ahead with the lease. No, I don't modify my car, No I don't go over the mileage allowance. Yes, I want a new car around every 3 years and yes, I want to walk away from the previous car and get into the new car with no hassle whatsoever.
Last edited by direct007; Feb 10, 2020 at 07:22 PM.
Le Mans Master
Joined: Jan 2016
Posts: 8,055
Likes: 2,694
From: New Mexico
2018 C6 of Year Finalist
Or, since he has very specific wants, call one of the few dealers that actually has the car and ask them to run a payment.
Get ready to hear $1200+/mo. I hope he's not expecting some end of the run giveaways.
Burning Brakes
Joined: Mar 2018
Posts: 856
Likes: 347
Good info. Thanks.
I’m definitely of the old school mindset of buying a car slightly used, paying cash for it, and then keeping it for 150k miles. This whole idea of renting a car like you would an apartment is very foreign to me. I have always been under the impression that people do it to drive something the really cannot afford. It never crossed my
mind that some would do it for the convenience of it.
I still would personally never do it, but to each their own. I would imagine that there is still a sect of the people that lease that do it because they are trying to “keep up with the Joneses” and they can’t actually afford what the aspire to drive.
I’m definitely of the old school mindset of buying a car slightly used, paying cash for it, and then keeping it for 150k miles. This whole idea of renting a car like you would an apartment is very foreign to me. I have always been under the impression that people do it to drive something the really cannot afford. It never crossed my
mind that some would do it for the convenience of it.
I still would personally never do it, but to each their own. I would imagine that there is still a sect of the people that lease that do it because they are trying to “keep up with the Joneses” and they can’t actually afford what the aspire to drive.
UM.....if i agree to a 3 year lease at say $1000 per month doesn't that make me qualified & able to afford a car i aspire to drive for three years? Just because i didnt pay cash for a 70k car makes me a wanna be can't really afford it guy? your logic is interesting.
Some people just can't wrap their head around leases.
Burning Brakes
Joined: Dec 2019
Posts: 1,043
Likes: 814
From: Virginia
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Melting Slicks
Joined: Sep 2004
Posts: 3,472
Likes: 2,246
From: Southern NJ
I hear this comment a lot...Because of depreciation...If you buy a BRAND NEW Vette with no money down with the intentions of trading it in at the end of the 36th month of ownership. How much equity will you have in the car? I'll tell you how much. It will amount to the difference between the amount of your loan payment and the amount of your lease payment. So if your monthly loan payment was $200 more than your lease payment, you may have $7200 in equity. Don't get me wrong, it makes sense to buy if you intend on keeping the car, but not if you intend on trading it in or selling it 3 years later. Heaven forbid, you have an accident, even a little fender bender that reports to carfax...your equity could even be less, but if you lease...no damage to your equity. It's the leasing company's problem, not yours.
Last edited by direct007; Feb 10, 2020 at 10:30 PM.
Melting Slicks
Joined: Aug 2011
Posts: 3,158
Likes: 400
From: Ft Lauderdale, Florida
Good info. Thanks.
I’m definitely of the old school mindset of buying a car slightly used, paying cash for it, and then keeping it for 150k miles. This whole idea of renting a car like you would an apartment is very foreign to me. I have always been under the impression that people do it to drive something the really cannot afford. It never crossed my
mind that some would do it for the convenience of it.
I still would personally never do it, but to each their own. I would imagine that there is still a sect of the people that lease that do it because they are trying to “keep up with the Joneses” and they can’t actually afford what the aspire to drive.
I’m definitely of the old school mindset of buying a car slightly used, paying cash for it, and then keeping it for 150k miles. This whole idea of renting a car like you would an apartment is very foreign to me. I have always been under the impression that people do it to drive something the really cannot afford. It never crossed my
mind that some would do it for the convenience of it.
I still would personally never do it, but to each their own. I would imagine that there is still a sect of the people that lease that do it because they are trying to “keep up with the Joneses” and they can’t actually afford what the aspire to drive.
Last edited by Zo62018A8; Feb 12, 2020 at 08:18 AM.
Melting Slicks
Joined: Nov 2002
Posts: 3,098
Likes: 301
From: North shore,Ma./Naples Florida
Interesting conversation. I have always bought my cars outright and paid in full at time of delivery. That said, when I go to sell or trade in which for me has averaged two to three years at most, I get whacked. Just lately I have been looking in to the idea of leasing my next Caddy because being self employed and owning three cars, I feel there may be a substantial tax write off on the lease payments, as most of my driving is business related. I always hear the argument that after three years on a lease you have nothing to show for it, but the fact is that you paid for the privilege of driving that car for those years. You are going to pay just as much or more if you buy it outright and sell it in that same amount of time. So either way your going to pay. If it’s about money, the best way is to buy garage queens used for a fraction of the price and keep them a long time.
Melting Slicks
Joined: Aug 2011
Posts: 3,158
Likes: 400
From: Ft Lauderdale, Florida
Interesting conversation. I have always bought my cars outright and paid in full at time of delivery. That said, when I go to sell or trade in which for me has averaged two to three years at most, I get whacked. Just lately I have been looking in to the idea of leasing my next Caddy because being self employed and owning three cars, I feel there may be a substantial tax write off on the lease payments, as most of my driving is business related. I always hear the argument that after three years on a lease you have nothing to show for it, but the fact is that you paid for the privilege of driving that car for those years. You are going to pay just as much or more if you buy it outright and sell it in that same amount of time. So either way your going to pay. If it’s about money, the best way is to buy garage queens used for a fraction of the price and keep them a long time.
Burning Brakes
Joined: Mar 2018
Posts: 856
Likes: 347
Personally I have zero interest in owning a modern car long-term, for a variety of reasons but mainly because I get bored with cars quickly, driving the same car year after year hell no! Spice of life brothers and sisters!
Leasing a car is a great way to go for many!
Leasing a car is a great way to go for many!
Le Mans Master
Joined: Nov 2015
Posts: 7,382
Likes: 3,500
From: Lake Havasu City Arizona
Intermediate
Joined: Jan 2020
Posts: 49
Likes: 20
Still not trying to convince you to lease, I don't care, but to make that statement is just plain old not true.
Melting Slicks
Joined: Aug 2011
Posts: 3,158
Likes: 400
From: Ft Lauderdale, Florida
Leasing = Girlfriend with no strings attached relationship. Buying = Marriage with the possibility of paying child support, alimony and losing half your **** when things go sour.
Melting Slicks
Joined: Oct 2016
Posts: 2,873
Likes: 2,505
I work for a BMW store currently and like I said it blows my mind when I fill out certain credit applications. The last one just a week ago was a customer leasing a x3m competition. I asked him how much is his gross monthly income? He replied "Around $250,000". I asked again "No, I mean monthly not yearly". He replied "Yes, thats approximately a month". A lot of my clients can walk in and write a check for these cars without breaking a sweat and most of them did not get to where they are in life by being financially dumb. There is a reason why over 95 percent of BMWs new car deals in the United States happen to be leases. That being said I completely agree if you like to keep your cars for a long time then getting something like an accord or camry is a great idea because they are very cheap to fix when they do break. These european luxury cars pretty much start falling apart at 50k miles or so and the repairs are outrageous. Not to mention the resale value sucks. A lot of people (including myself) will be okay with buying a camry with 100k miles on it. A euro luxury car? Not a chance.
Melting Slicks
Joined: Oct 2016
Posts: 2,873
Likes: 2,505
Buying and leasing a car basically involve all the same expenses you are being charged for. In both cases you must negotiate the actual price of the vehicle. This should be the same whether a purchase or a lease. You are going to pay interest on the money you borrow or suffer a lost opportunity for an investment return if you pay cash. On a finance deal you have an APR and on a lease you have a money factor. The money factor multiplied by 2400 will basically give you the APR. With a lease you are going to pay a lease acquisition fee which is additional profit to the leasing source. This is an additional fee over a purchase and finance deal and usually is around a $1,000 give or take.
On a lease, you will have a guaranteed residual value at a specific time and mileage. If the value is set too low, you can purchase the vehicle. If it is too high, you win and can turn it in having paid lower payments than you should have. At that point in time, the vehicle is going to be worth the same amount whether you purchased or leased. The difference most often is that the manufacturer subsidized the lease by guaranteeing the residual value and it is higher than it is realistic. Again this is to the benefit of the lessee. One thing to look for is a charge to return the vehicle at the end of the lease.
When you compare all the cost factors, there is often very little difference in cost of leasing or purchasing as long as you follow simple processes when doing either. From a tax standpoint, you can generally generate a higher deduction with a purchase than with a lease. The difference will be the record keeping required and the filing process you go through. The lease will also offer the business an off balance sheet transaction and debt but simply represents an expense.
On a lease, you will have a guaranteed residual value at a specific time and mileage. If the value is set too low, you can purchase the vehicle. If it is too high, you win and can turn it in having paid lower payments than you should have. At that point in time, the vehicle is going to be worth the same amount whether you purchased or leased. The difference most often is that the manufacturer subsidized the lease by guaranteeing the residual value and it is higher than it is realistic. Again this is to the benefit of the lessee. One thing to look for is a charge to return the vehicle at the end of the lease.
When you compare all the cost factors, there is often very little difference in cost of leasing or purchasing as long as you follow simple processes when doing either. From a tax standpoint, you can generally generate a higher deduction with a purchase than with a lease. The difference will be the record keeping required and the filing process you go through. The lease will also offer the business an off balance sheet transaction and debt but simply represents an expense.
Instructor
Joined: Aug 2019
Posts: 247
Likes: 69
From: Texas
Can’t get a hold of a salesperson willing to send me leasing quote.
Im looking for 2 different quotes.
- 36months/10k miles or 36months/12k miles
- 2lt, arctic white exterior with red interior, automatic transmission.
- NY sales tax
$0 down or $1000 down
if any dealer can provide me with the breakdown of the lease agreement
Im looking for 2 different quotes.
- 36months/10k miles or 36months/12k miles
- 2lt, arctic white exterior with red interior, automatic transmission.
- NY sales tax
$0 down or $1000 down
if any dealer can provide me with the breakdown of the lease agreement
I went down this road with a Hellcat, you need to check out LeaseHackr.com and get smart on leasing. There are values that you will need to plug into a Lease calculator to see what the number will be and if it is worth it or not. Also numbers change monthly, good luck!
Also, dont put down a dime on a lease, it is a bad move.
Last edited by j0evette; Feb 12, 2020 at 04:48 PM.
Melting Slicks
Joined: Aug 2011
Posts: 3,158
Likes: 400
From: Ft Lauderdale, Florida
Im being honest. Thats why I do pretty well at my job and all european vehicles pretty much start falling apart after 50k miles. You should see the issues I hear about when I talk to the service guys. I have a friend who is a service advisor at Mercedes and they deal with the same crap. Thats why I would never tell anyone in good faith to ever buy one. Leasing is the way to go. And here in south florida I get the report for the entire region and south florida is at approximately 96 percent new vehicle lease penetration. Imo its better for both parties when you lease any brand. Customer has a new vehicle every 3 years, always under warranty, basic maintenance and roadside assistance included with free car washes and its proven that people who buy a car are out of the market for a longer period of time. With a lease you earn their business again every 3 years. Win/Win for both parties. I wish I could have leased my 2018 Z06 but the programs were so bad I was forced to buy it. But on the flip side Corvettes and Jeep Wranglers are two american vehicles that hold resale value a lot better than other american vehicles.
Last edited by Zo62018A8; Feb 12, 2020 at 05:11 PM.