Originally Posted by
HOLLAKID619
Originally Posted by
Lrrr
Originally Posted by
HOLLAKID619
Originally Posted by
Vancity74
Originally Posted by CuriousGeorg3
so after 3 years you're down 20,000 with nothing to show for it. what are the benefits of leasing car?
Originally Posted by HOLLAKID619
$20,000 into a car that you have yo just give back after 30 months? I'd rather finance any day. For that same 20K you can OWN a car that you can actually modify, drive when/where you want, and possible sell or give away to you children. Finance > Lease
What were your guys' SAT scores? I'm guessing under 800? Ya'll are too dumb, I can't even believe I'm responding.
The whole point of a lease is to pay for the depreciation of a vehicle. I spent $20,000 on depreciation. Next year, when I have to hand the keys over, odds are the car is going to be worth under $20,000. So I paid $20,000 for $25,000 worth of depreciation. Not to mention that this $20,000 is AFTER interest.
Say for example I was to finance the car for 60 months @ 5%, my payment would be $850/month. Multiply this by 60 (the number of payments I would have to make), and suddenly the $45,000 car ends up costing me $51,000. Not to mention, in 5 years, the car is barely going to be worth $10,000. So congratulations, you ended up paying $51,000 for a car that's worth $10,000. I'm definitely more comfortable paying the $20,000 than *LOSING* over $40,000.
Does this make sense to you guys, or do I need Lil Wayne to rap this to you?
edit: And lets not even get started on the fact that my lease is 100% tax deductible, essentially costing me nothing.
What does "Lil Wayne" have to do with anything? If that was your attempt at a racist comment...
If your a "Fake It Till I Make It" type dude, go ahead and lease. You obviously just want to drive a car you cant afford. For the rest of us here, a lease is just throwing away money. Why pay rent when you can pay a mortgage? If it was all about that, we should all head out to Enterprise Rent-A-Car, would that be the same thing? Also, there's no way a '05 M3 is going to be woth $10,000 next year, let's be serious here. 2001 M3's still fetch $25K and thats 8yrs old compared to yours which will be only 5yrs old. Show us a link to a 5yr old M3 for $10K and ill go buy it tomorrow jerk. At the end of the day, I hope that $500 a month is worth it to you because when you go hand in those keys next year, go home brand new storage room that used to be a garage and be proud! Then, if you decide to do it all over again with the 2010 model, by 2015 you've wasted $40,000. WOW, you'll really deserve a pat on the back for that one!
1. Houses appreciate in value. Cars don't. Paying a mortgage and financing a car are two VERY different things.
2. No. They go from between 18k up to 25k.
I know cars dont appreciate in value. That was my way of making a comparison between renting and owning something. A car will almost never make you money after you resell it, but not many people buy a car with direct intentions of selling it in the near future. I just feel like after 3 cars, 15 years, and $60,000 (at Vancity's calculations), you should have something to show for it. For that same $60,000 someone can buy all those cars he returned and keep them forever.
An '01 M3 does go anywhere from $18K - $25K but that still goes to show you some are still worth $25K nonetheless. I have no clue where he's getting his information from that tells him that his 2005 BMW M3, which is worth anywhere between $28,000 (w/ high mileage) - $38,000, will lose $18,000 - $28,000 in value within ONE YEAR!!! I know we all want to get our point across but lets use real numbers here. For someone that enjoys bashing someone elses eduaction, Vancity sure need to learn some basic math skills. We already established the 8yr old models are being sold for upto $25k, how on earth will his 5yr old model be worth only $10K??? Excuse me, as Vancity would say it, "Barely $10K". Are you driving a Kit-Car? BTW, these arent prices I'm making up in my head. These are prices I actually see these cars being sold for online as I type. Dont feel dumb yet? Well consider this...
Vancity's lease is, $5,000 down, $500/mo, for 30/mos. At those numbers the residual was calculated at about $29,300. The dealer is going to get the car back next year and sell it again for roughly.... $35,000 (depending on the mileage). Thats about $5,700 EXTRA the dealer is making. By next year you would have paid $5,700 more than the actual depreciation of the car. Forget about the the tax deductions you get up in Canada, I'm trying to make this realistic for the people here in the states. The dealer is always going to find a way to make extra money from us, leases are one of them, just face it.
Leasing is a dream come true for teenagers because it makes expensive cars affordable.
