Loan Payments, Leases, and depreciation...

A lease will never work for me because I drive 25-30k miles per year.

that's why i saved and paid everything off in cash...i have no loan, and never will as far as a car is concerned. i'd rather get a used vehicle that i can afford off the bat.

I don't know about you, but I don't like having to feed a monkey monthly so I definitely do not plan on "always having a monthly car payment".

Leasing ends up being more expensive than actually owning it if you do it on a long term basis, kind of like renting an apartment versus owning a house. I guess if you can stick to all the lease restrictions, walk away at the end of the lease, and not modify a car then it could work out. Besides some lease programs require a big down payment to get those low monthly payments and you get the car at MSRP instead of a lower negotiated price when buying a car. A down payment in a lease makes even less sense than making a down payment for buying a car. At least I get to keep the car at the end of the loan, whereas in a lease you have nothing to show for it.
Modding a leased vehicle is stupid IMO since you are either going to a)take the mods off when lease is over or b) end up buying the car anyway which will no doubt be at a higher price than the car is worth. 99% of the time you're not going to be able to get back they money you spent on mods when reselling so that's even more wasted money.

huh, insteresting....
So far it sounds like it's better to buy outright, or get a loan.
I don't really know alot about leasing. Now it sounds restrictive and like a waste of money. I didn't know you have to put a down payment on it! Good analogy with renting an apartment. Basically throwing your money away. I guess you do it slower by owning your car? haha...

If I were living in MD, I would probably have bought a cheaper used car... I like working on my vehicles and such. Up here it is SO expensive to buy a car and you better get a reliable one... people are selling '85 junkers that don't even run for $1500-$2000. I payed $10,900 for my '02 corolla S with 31k miles in great condition. A little wear on the interior. No rust anywhere. That is a good price up here. Almost bought an 01 accord /w 45k miles, but it had some vibration between 50 and 55 mph. was a little out of the price range, it was $12,900.

statik

Very well said, and true. Nice matador.

I've got a buddy who leased an Audi and when he turned it in they nick picked it to death. Small stains on the floor mats for greas, door dings, miles over limit. He had to pay some at turn in.

He said he will never lease again.

Anything a car dealership can do to get a little more money out of you they will. That's why they came up with these low lease payment things in the first place. They make more money off of you than just selling the car.

Exactly, there are wear and tear restrictions and maintenance requirements as well. All those are basically loopholes for the leasing agent to screw you over. Leasing makes sense for very few people, but it can be a good deal if it's done correctly. I don't know about you guys but if I'm going to be paying let's say 200 bucks a month for a 3 year lease, I'd rather be paying for a used daily beater with that same money.

Loan Payments, Leases, and depreciation...

Just thinking of the financial aspects...

Most of us are always going to have a monthly car payment.
We like to modify our cars, to varying degrees of insanity.
How long do you think you will keep your corolla?

For those who don't mod like crazy would it be worth it to just lease a vehicle? You would get a new vehicle at the end of every lease! Would the lease period last long enough? Are there contracts that allow us to tint our windows, put some rims on, and install a system without breaking the lease contract?

It seems like we are paying about $215 /mo + for our vehicles for as long as we are driving. If you kept your car after its payed off and you wanted to do body/paint work, upgrade worn interior/engine parts. You would be putting more money into it, and probably wount get it back if you decided to sell it. right?

If you want to mod your car you'll probably end up getting a loan or buying it. Modding isn't really cheap, or financially beneficial, but it's a part of life, and we enjoy it!

Would it make sense financially when you could possibly lease and not worry about putting money into a depreciating asset?

What does everyone else think?
Is there a "middle-way" ?

statik

This is my second car and both of them have been paid for up front. I will more than likely never lease a car, or take a loan out. Just one example I can give you. My best friend bought a 2003 Tiburon, in 5 years he will be paying his last car payment totaling 25k dollars. In 5 years his car will be worth about 7k. So his car is predicted to depreciate 13k dollars in 5 years. Don't do it.

It doesn't help that he bought a Hyundai LMAO

Damn,

It would be better to get it all over with and not have to pay $2000 in interest on top of a $10,000 car which is just losing value daily.

Guess you gotta save your cash, or have a good income...

statik

just save up.

you'd be surprised what you can do when properly motivated.

Save up a big amount then put that down on a new car so you'll have lower monthly payments

That is my motto....if you can't afford it in cash, don't get it.....because down the road you will be at your neck in detb

Very true.

Everyone here has a good opinion on this subject...
I think I'm going to try to save my money for vehicles from now on...

statik

agreed, leasing allows people to drive a car they normally couldn't afford, it's a sucker way for auto dealerships to make money off of people that shouldbe purchasing used or base models cars. a car is the worst investment you can ever make, regardless of how much money you put into it (mods, upgrades, all suggested service, etc...), it will still depreciate and in the end you are going to be left with something that is worth a fraction of its origional value. if you really think about it, its almost a good idea to keep every car you'll ever own, what they are worth to you in fuctionality will always out weight what they are worth in dollar value...assuming that they are not lemons.<br />
bottom line, purchasing cars is far better then leasing. at least once everything is paid off you'll have something other then memories...

ditto. not quite 25, but about 20-22k a year. the most ive heard of a lease allowing you is 18k. most are 12 or 15. I bought my car 19 months ago and she has 38,759 miles. I'd be screwed if i leased her lol.

Leasing was made popular by those who wanted to fly around all pimp and rich-looking in an Escalade, Mercedes, Jaguar, etc. but couldn't afford it outright. I will never lease a car in my life - instead of making monthly payments in a lease I will eventually have to give up I'd rather make those same monthly payments towards owning the car.

As for modding, I don't mod my car to increase its value, because it's almost impossible to do that. I mod my car because I want to better enjoy it, because for the next several years it's my car. I'm driving this thing until it drops dead.

road trips are out!

statik