Car Lease v. Buying

[cozmohoot]

Used Honda and Toyota maintain their value.
It's a known fact that the value goes down the most within the 1st year/right away.

[Ydad]

Used Honda and Toyota maintain their value.
It's a known fact that the value goes down the most within the 1st year/right away.

+1 Car leases are basically the devaluation over 3 years + a little interest

[mgarfin]

When calculatig buying v. leasing breakeven point,
do we consider financing cost?
And what's the going rate on financing a car?

Also would we insure a owned car the same as a lease one?

Someone mentioned Dans advice on negotiating a car, can't find it with search?

[Sport]

When calculatig buying v. leasing breakeven point,
do we consider financing cost?
And what's the going rate on financing a car?

Also would we insure a owned car the same as a lease one?

Someone mentioned Dans advice on negotiating a car, can't find it with search?

Most comparisons are based on monthly payments, so to answer your first question, yes comsidering financing is the only way to accurately compare.
Rates for financing a new car are as low as 0% and used cars as low as 1.99%.

[MarkS]

1.59 for new or used here: http://www.firstatlanticcu.com/home/rat

[mgarfin]

Most comparisons are based on monthly payments, so to answer your first question, yes comsidering financing is the only way to accurately compare.
Rates for financing a new car are as low as 0% and used cars as low as 1.99%.

How does this work, I have a town& county I am paying $199 and put down 2000$ including damage waver (btw what I later found out is worthless) for a 24 month lease. That sets me at $283 a month. Now I find the cost if the car when I took out the lease and assum I would get a 0% financing, and then divide that in to what?

[Venilla]

How does this work, I have a town& county I am paying $199 and put down 2000$ including damage waver (btw what I later found out is worthless) for a 24 month lease. That sets me at $283 a month. Now I find the cost if the car when I took out the lease and assum I would get a 0% financing, and then divide that in to what?

Because?

[Sport]

How does this work, I have a town& county I am paying $199 and put down 2000$ including damage waver (btw what I later found out is worthless) for a 24 month lease. That sets me at $283 a month. Now I find the cost if the car when I took out the lease and assum I would get a 0% financing, and then divide that in to what?

Assumimg you can get 0% financing on the t&c, you would divide the assumed sale price by the the amount of years you were financing for.
Your monthly payments will almost always be more when purchasing, until your second (or third) purchase.

[mgarfin]

Because?

For $500 dollers I spent they only cover damage of less then $250-500 per part, so any big bump they will price alive that so your not covered, and miner scratches you can get fixed at the end  for the same price and your not locked in with getting receipts and clam forums.....

Assumimg you can get 0% financing on the t&c, you would divide the assumed sale price by the the amount of years you were financing for.
Your monthly payments will almost always be more when purchasing, until your second (or third) purchase.

So when Dan wrote he calculated 65 month breakeven point on his car, he was considering a monthly financing payment equal to the going lease monthly price.

[Sport]

So when Dan wrote he calculated 65 month breakeven point on his car, he was considering a monthly financing payment equal to the going lease monthly price.

I assume so. But its hard to imagine, I'm paying 270/month on a 15,000 car financed over 65 months. Which is more than I'd pay monthly if I were leasing a new model of the same car.
I still maintain that in my case purchasing was a better option as the car should last me another 10 years easy. Or if I wanted to sell after 65 months it'll probably be worth 8,0000.

[elit]

For $500 dollers I spent they only cover damage of less then $250-500 per part, so any big bump they will price alive that so your not covered, and miner scratches you can get fixed at the end  for the same price and your not locked in with getting receipts and clam forums.....

Is that true across the board or just the place you leased from

[mgarfin]

Is that true across the board or just the place you leased from

Ther always caped, as more then x amount they want you to go to your insurance, so need to read fine print.


And btw a friend if mine returned a car to Chrysler and  did no repairs and was able to bargain/negotiat the end bill in half.

[eliraps]

Used Honda and Toyota maintain their value.
It's a known fact that the value goes down the most within the 1st year/right away.

Honda and tayota more than Nissan?
(I happen to know a guy who sells/leases Nissans, if it's ask the same I'll go to him)

[Venilla]

For $500 dollers I spent they only cover damage of less then $250-500 per part, so any big bump they will price alive that so your not covered, and miner scratches you can get fixed at the end  for the same price and your not locked in with getting receipts and clam forums.....

A. If you get several minor scratches (which is usually the case in NYC) the damage waiver will be worth... And I had someone rip off my bumper and he paid for a new one $450.

B. The heimisha car leasing companies can usually work it out for you...

[ExGingi]

Just came across this thread, and while I didn't read it in the entirety, I think there's another issue that's an important consideration.

If you are a business owner, and have the business lease the car, it is very simple and straightforward, as the lease payments are business expenses that come off your top-line.

However, if you buy a car, financed or not, you are tying up cash in a depreciable asset. Yes, you will take a depreciation expense off your top-line, and if you financed, the interest expense will also come off, but the bottom line is that you tied up cash in another type of asset.

On the other hand, a lease kind of bundles everything together for you (actually for the leasing company) and you just pay the monthly "rent" which is a business expense.

[Dan]

When calculatig buying v. leasing breakeven point,
do we consider financing cost?
And what's the going rate on financing a car?

Also would we insure a owned car the same as a lease one?

Someone mentioned Dans advice on negotiating a car, can't find it with search?

Dated, but the gist of it:
http://forums.dansdeals.com/index.php?topic=7335.msg91771#msg91771
http://forums.dansdeals.com/index.php?topic=6023.msg66838#msg66838

[ya]

How does this work, I have a town& county I am paying $199 and put down 2000$ including damage waver (btw what I later found out is worthless) for a 24 month lease. That sets me at $283 a month. Now I find the cost if the car when I took out the lease and assum I would get a 0% financing, and then divide that in to what?

No it's not 283.

The 2000 I'm assuming was $500 damage waiver. $1000 bank/plates and dmv fee plus the 1st month and tax.

[mgarfin]

No it's not 283.

The 2000 I'm assuming was $500 damage waiver. $1000 bank/plates and dmv fee plus the 1st month and tax.

It was $2200 down so I removed $199 for first month, damage waver is something you dont pay in buying, so I did include it in monthly calculation, as for plates and DMV fee its probably only part that needs to be considered, as in leasing you pay it every 24 months v. buying its once in 8-10 years

[Sport]

It was $2200 down so I removed $199 for first month, damage waver is something you dont pay in buying, so I did include it in monthly calculation, as for plates and DMV fee its probably only part that needs to be considered, as in leasing you pay it every 24 months v. buying its once in 8-10 years

No it's not 283.

The 2000 I'm assuming was $500 damage waiver. $1000 bank/plates and dmv fee plus the 1st month and tax.

Dont fully understand this discussion, bottom line compare your monthly payments between leasing and purchasing. It should be irrelevant what contributes to the payments.

[ual902]

My calculation is like this:

Buying: if you have a good mazal in keeping your car long term free of Mechanics such as Toyota  or Honda then you got your monies worth.

Leasing: you are  forever renting a car at low prices.

Would this be correct?