2008 lease or 0%, or wait for 2009?
Nov 19, 2008, 01:28 PM
#31
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You don't want to put ANY money down on a lease. If you total it, your 4k is gone. You're paying to rent the car, never put any money down on a lease! It's just gone, it goes nowhere, it's not even equity.
Nov 19, 2008, 02:03 PM
#32
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You're crazy if you choose to lease instead of take 0% financing. 
You really mean an extra $153/month in your pocket "to spend" is going to make or break you? If money's a concern, leasing should scare you more. Leasing obligates you to pay out the full term and keep the miles down, as well as other obligations. It's not really your car.
Owning the car outright gives you much more flexibility. Don't lease unless it's a business writeoff. If you can't pay cash, 0% is as good as you'll ever get. 0% is "free money."
You'd be crazy to put $4000 down on a lease instead of $4000 down and finance the rest at 0% REALLY.
You really mean an extra $153/month in your pocket "to spend" is going to make or break you? If money's a concern, leasing should scare you more. Leasing obligates you to pay out the full term and keep the miles down, as well as other obligations. It's not really your car.
Owning the car outright gives you much more flexibility. Don't lease unless it's a business writeoff. If you can't pay cash, 0% is as good as you'll ever get. 0% is "free money."
You'd be crazy to put $4000 down on a lease instead of $4000 down and finance the rest at 0% REALLY.
Nov 19, 2008, 04:17 PM
#35
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Well, it's not a question of affordability for me, it's a personal preference for cash flow. I can afford 500/mo or whatever, but I was considering the lease deal because having that 300/mo payment makes it much more palatable, with no percieved downsides. I'm not worried about equity, the car is losing $10k in value in the first two years, about the same amount you pay in a lease, so it's a wash there.
The cash flow issue is a personal finance principal I've studied over the years though. In my experience it's better to leverage borrowing power and defer payments whenever possible in favor of cash flow, as long as you are not taking dangerous risks. I could easily afford to buy the car through financing or buy it out at the end of the lease, either way, but I tend to favor cash flow.
However, the "no mods" and other restrictions of the lease is probably going to kill the idea for me. I think I'll just put $5-10k down and finance it at 0%.
The cash flow issue is a personal finance principal I've studied over the years though. In my experience it's better to leverage borrowing power and defer payments whenever possible in favor of cash flow, as long as you are not taking dangerous risks. I could easily afford to buy the car through financing or buy it out at the end of the lease, either way, but I tend to favor cash flow.
However, the "no mods" and other restrictions of the lease is probably going to kill the idea for me. I think I'll just put $5-10k down and finance it at 0%.
Nov 19, 2008, 04:49 PM
#36
The thing is that a Lease sounds sweet for you based on the numbers but they Dealer wins hands down on a lease. At the end of the lease, you have to pay for any extra miles, you cannot modify the car at all, most of the times you end up paying most of the check-ups and such things (you can get stuff like free oil changes and tune discounts when you finance).
Stay away from Leasing, much less an Evo, unless you'd like to have a new car every 2 years or so and don't give a crap bout spending money on a car you will never own (its just like renting a house to live in...). I've also noticed if you want to keep the car at the end of a lease the Dealer will try to make money, based on the car's depreciation value and the length of the deal (meaning if u owned the car and wanted 2 sell it later the dep. value would be less than what the dealer will ask at the end of a 2 year lease if you'd want to keep the leased car).
rouge, what's a Tier II credit score? is it under 700 but above 650 or something like that?
Stay away from Leasing, much less an Evo, unless you'd like to have a new car every 2 years or so and don't give a crap bout spending money on a car you will never own (its just like renting a house to live in...). I've also noticed if you want to keep the car at the end of a lease the Dealer will try to make money, based on the car's depreciation value and the length of the deal (meaning if u owned the car and wanted 2 sell it later the dep. value would be less than what the dealer will ask at the end of a 2 year lease if you'd want to keep the leased car).
rouge, what's a Tier II credit score? is it under 700 but above 650 or something like that?
Nov 19, 2008, 07:03 PM
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Nov 19, 2008, 07:11 PM
#39
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most of the times you end up paying most of the check-ups and such things (you can get stuff like free oil changes and tune discounts when you finance).
Stay away from Leasing, much less an Evo, unless you'd like to have a new car every 2 years or so and don't give a crap bout spending money on a car you will never own (its just like renting a house to live in...). I've also noticed if you want to keep the car at the end of a lease the Dealer will try to make money, based on the car's depreciation value and the length of the deal (meaning if u owned the car and wanted 2 sell it later the dep. value would be less than what the dealer will ask at the end of a 2 year lease if you'd want to keep the leased car).
Stay away from Leasing, much less an Evo, unless you'd like to have a new car every 2 years or so and don't give a crap bout spending money on a car you will never own (its just like renting a house to live in...). I've also noticed if you want to keep the car at the end of a lease the Dealer will try to make money, based on the car's depreciation value and the length of the deal (meaning if u owned the car and wanted 2 sell it later the dep. value would be less than what the dealer will ask at the end of a 2 year lease if you'd want to keep the leased car).
Also, you have no idea how and what is a good lease deal if all you can think of to say is, "stay away from leasing".
You've noticed that if you want to keep the car at the end of the lease, the dealer will try to make money based on the depreciated value and length? Wrong again, all that information is negotiated at the time of the lease creation, and it is set in stone when you sign the paperwork.
Please do some lease research before you blanket bash leasing.
Nov 20, 2008, 04:23 AM
#41
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That may very well be the case, or it may be a case of the general public being misinformed or uneducated about what leasing is all about.
It's VERY common for sales people at dealerships to tell potential customers that if you lease a vehicle you have to pay MSRP. That is a flat out lie.
It's VERY common for sales people at dealerships to tell potential customers that if you lease a vehicle you have to pay MSRP. That is a flat out lie.
Nov 20, 2008, 05:43 AM
#42
That first paragraph? Yeah you have no idea what you're talking about. Whether you finance or lease, they're not gonna matter for free oil changes and "tune discounts" from a dealership. That's a load of crap.
Also, you have no idea how and what is a good lease deal if all you can think of to say is, "stay away from leasing".
You've noticed that if you want to keep the car at the end of the lease, the dealer will try to make money based on the depreciated value and length? Wrong again, all that information is negotiated at the time of the lease creation, and it is set in stone when you sign the paperwork.
Please do some lease research before you blanket bash leasing.
Also, you have no idea how and what is a good lease deal if all you can think of to say is, "stay away from leasing".
You've noticed that if you want to keep the car at the end of the lease, the dealer will try to make money based on the depreciated value and length? Wrong again, all that information is negotiated at the time of the lease creation, and it is set in stone when you sign the paperwork.
Please do some lease research before you blanket bash leasing.
I do have an idea of what a good deal is; $385 a month for an Evo when most people pay 500+ financing it is a heck of a deal. Do you want a Lease on a car you're most likely want to mod? I guess not. I've thought of leasing the damn car myself, but I know very well why I don't think a lease is the better choice. Look at this guy...
Please do watch your mouth before you start bashing with nonsense.
Nov 20, 2008, 05:58 AM
#43
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Who's not gonna matter about free oil change? What do you mean... do you think BMW owners and such go for oil changes/tune-ups at Bridgestone or Jiffy Lube? I think you've never owned a car... I get free oil changes at Mitsubishi, my friend Leased his 09' Es and he didn't get crap. I think the load of crap fell elsewhere.
I do have an idea of what a good deal is; $385 a month for an Evo when most people pay 500+ financing it is a heck of a deal. Do you want a Lease on a car you're most likely want to mod? I guess not. I've thought of leasing the damn car myself, but I know very well why I don't think a lease is the better choice. Look at this guy...
Please do watch your mouth before you start bashing with nonsense.
I do have an idea of what a good deal is; $385 a month for an Evo when most people pay 500+ financing it is a heck of a deal. Do you want a Lease on a car you're most likely want to mod? I guess not. I've thought of leasing the damn car myself, but I know very well why I don't think a lease is the better choice. Look at this guy...
Please do watch your mouth before you start bashing with nonsense.
I don't know what *** backwards Mitsubishi dealership you go to, but case in point your BMW Example. Okay, it doesn't matter if you lease a BMW or finance it, or pay for it outright, you still get all your maintenance free of charge. It should work the same way for lease/financing at Mitsubishi. Either way, the dealership gets paid for the car.
I lease my X. I don't plan on modding it much, if at all. I can't stand driving cars for more than 2 years, so I was going to get rid of it anyway. I can just walk away from my X after 2 years if I don't want it anymore. Or I can buy it, if it happens to retain its' value.
Nov 20, 2008, 09:42 AM
#44
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I think people really don't understand lease deals very well. I already showed how the numbers stack up.
With the lease deal you're guaranteed to be out $11,500 or so after 2 years if you don't want the car, and with financing you are going to be in the $10,000-11,000 range, depending on how good you are at selling cars.
If you decide to keep the car and pay it off, the lease deal will end up costing you a total of about $34,000 or so, and the financing around $32,000.
So with the lease, you're out $1000-2000 depending on what you do with the car, BUT at the same time for the first two years you are keeping an extra $3200-5200 in your pocket because the lease payments are much lower (hence why I consider the payments "deferred").
It's just a matter of personal preference, if you can handle the mileage limitations and don't plan to mod heavily, the lease is not THAT bad a deal. $1000-2000 more for the total cost of the car over 5 years versus having $3200-5200 in savings in the first two years, or $1000 more if you decide to walk away from the car, it's not that big of a deal.
You guys that think putting money down on the lease is so bad are not seeing the big picture, you are losing money REGARDLESS of whether you lease or finance, the car is depreciating just the same.
It just comes down to personal preference. If you think you might want the car for just 2 years, and you can live with the lease restrictions, then leasing buys you some peace of mind in that you can walk away. If you finance it then you have to deal with selling the car later, and you STILL lose about $10,000 in depreciation, maybe more depending on how bad the economy is by then... but the lease gives you a guaranteed cost.
For me, I'm planning to mod the engine, so I guess a lease is not going to work for me, but for anyone doing say basic bolt-ons or suspension mods only, and not sure they want the car beyond a couple years, this lease deal rocks!
With the lease deal you're guaranteed to be out $11,500 or so after 2 years if you don't want the car, and with financing you are going to be in the $10,000-11,000 range, depending on how good you are at selling cars.
If you decide to keep the car and pay it off, the lease deal will end up costing you a total of about $34,000 or so, and the financing around $32,000.
So with the lease, you're out $1000-2000 depending on what you do with the car, BUT at the same time for the first two years you are keeping an extra $3200-5200 in your pocket because the lease payments are much lower (hence why I consider the payments "deferred").
It's just a matter of personal preference, if you can handle the mileage limitations and don't plan to mod heavily, the lease is not THAT bad a deal. $1000-2000 more for the total cost of the car over 5 years versus having $3200-5200 in savings in the first two years, or $1000 more if you decide to walk away from the car, it's not that big of a deal.
You guys that think putting money down on the lease is so bad are not seeing the big picture, you are losing money REGARDLESS of whether you lease or finance, the car is depreciating just the same.
It just comes down to personal preference. If you think you might want the car for just 2 years, and you can live with the lease restrictions, then leasing buys you some peace of mind in that you can walk away. If you finance it then you have to deal with selling the car later, and you STILL lose about $10,000 in depreciation, maybe more depending on how bad the economy is by then... but the lease gives you a guaranteed cost.
For me, I'm planning to mod the engine, so I guess a lease is not going to work for me, but for anyone doing say basic bolt-ons or suspension mods only, and not sure they want the car beyond a couple years, this lease deal rocks!