Pro's & Con's for Leasing and Fianancing

[mr j 858]

Originally Posted by soflyjedi

^^^ shooting emails is a very good idea..they're coming from a safe place...i like that thanks

All I'm saying is you may or may not get a better experience with the internet sales department guy at a car dealer.
That's just the experience I got when I bought my 2004 4Runner.

Bottom line is play hard ball. When I bought my car I walked out of the car dealer 4 times during the negotiating prcoess till I got what I wanted. 

 

[soflyjedi]

^^ did you lease or finance? what were the options you were looking for?

 

[crcballer55]

Originally Posted by soflyjedi

i plan on owning this charger 2012 for at least three years and maybe switch up, JUST maybe....what do you guys think? any other tips you guys have when i approach the dealer?

It sounds like your mind is already made up and you really want a newer car that you don't plan to keep for too long.  Unfortunately, you're going to be the one taking the brunt of the depreciation on the vehicle and someone like me will be able to benefit later.

 

[soflyjedi]

^ i see your logic, but if you got it why nit do it? i can only imagine the feeling of owning a brand new whip free of problems and current, with a built in surround system already?? aww man, im 60% to pulling the trigger, just wanna get some more opinions first.

 

[mr j 858]

Originally Posted by soflyjedi

^^ did you lease or finance? what were the options you were looking for?

I bought & financed it for 60 months which is 5 years got 2.9% APR for a white 2004 sport edition Toyota 4Runner. I put $2,000 down.
In your case if your putting $5,000 you can probably finance it for 3 or 5 years. Your credit rating will determine what APR % and what you will qualify for and what discounts the dealer may be able to offer you. Just depends on your budget and what you can afford to pay monthly.

If you are a first time car owner though and even if you have a credit rating score of say 750 or higher APR % rates will be higher no matter what. Which sucks. 

 

[crcballer55]

Originally Posted by soflyjedi

^ i see your logic, but if you got it why nit do it? i can only imagine the feeling of owning a brand new whip free of problems and current, with a built in surround system already?? aww man, im 60% to pulling the trigger, just wanna get some more opinions first.

I have the money to go to the dealership and buy a brand new car in cash.  However, I will never do that since I can never justify overpaying for an asset that will only depreciate on me and secondly, used cars rarely have the kind of problems that people picture when making these kinds of decisions.  A car is one of the biggest purchases you make based solely on emotion.  If you can remove most of that, you'll make a much better longer term decision.

Currently, I'm driving a 12 year old car that I REALLY want to sell.  However, the maintenance costs and gas mileage on it make it difficult for me to get rid of dispute having $165K miles on it.

Regarding your purchase though... how many cars do you know of that DON'T have surround sound?  If you're really worried about it breaking down, do some more research and find a model that has a good record for reliability.  Maybe pay cash and get a 4-5 year old civic and put some money into that if you really want to "stunt".  If you drive it off the lot and hate having a paid for car, you can always get yourself a lien against the car afterwards.

 

[scshift]

Originally Posted by Jking0821

Do yourself a favor.

Don't buy a 2012 charger

Save some money put some money down on a used car and pay it off.  It isn't the sexiest choice.  But i saved up and bought my 2009 corolla in cash.  Best decision i have ever made.  No car payment > any car payment.  Car is paid off it is my asset, i own it, and can do what i please with it.

Unless you have no money issue's.  In that case lease it.  Trade it in after the lease expires and repeat.

I will always try to buy a used car.

Ninjahood put it best: "Let da next fool take da hit on depreciation."

 

[mojodmonky1]

Originally Posted by crcballer55

Originally Posted by soflyjedi

^ i see your logic, but if you got it why nit do it? i can only imagine the feeling of owning a brand new whip free of problems and current, with a built in surround system already?? aww man, im 60% to pulling the trigger, just wanna get some more opinions first.

I have the money to go to the dealership and buy a brand new car in cash.  However, I will never do that since I can never justify overpaying for an asset that will only depreciate on me and secondly, used cars rarely have the kind of problems that people picture when making these kinds of decisions.  A car is one of the biggest purchases you make based solely on emotion.  If you can remove most of that, you'll make a much better longer term decision.

Currently, I'm driving a 12 year old car that I REALLY want to sell.  However, the maintenance costs and gas mileage on it make it difficult for me to get rid of dispute having $165K miles on it.

Regarding your purchase though... how many cars do you know of that DON'T have surround sound?  If you're really worried about it breaking down, do some more research and find a model that has a good record for reliability.  Maybe pay cash and get a 4-5 year old civic and put some money into that if you really want to "stunt".  If you drive it off the lot and hate having a paid for car, you can always get yourself a lien against the car afterwards.

listen to this man.

fool me once... twice... but never again.  Just finished paying off the wifes car not too long ago and never again will I buy a brand new car.  $10K down and $625 a month for 60 months was not a good look.

the feeling of having several extra grand in your pocket >>> new car smell/feeling/whatever
  

 

[soflyjedi]

$10 down and $625 a month for 60 months is crazy.. what kind of car is that?

 

[mojodmonky1]

was a lexus es350. my wife had B credit and we bought when interest rates were high. This was right before the economy took a nosedive and interest rates dropped.

 

[samduh562]

Originally Posted by scshift

Originally Posted by Jking0821

Do yourself a favor.

Don't buy a 2012 charger

Save some money put some money down on a used car and pay it off.  It isn't the sexiest choice.  But i saved up and bought my 2009 corolla in cash.  Best decision i have ever made.  No car payment > any car payment.  Car is paid off it is my asset, i own it, and can do what i please with it.

Unless you have no money issue's.  In that case lease it.  Trade it in after the lease expires and repeat.

I will always try to buy a used car.

Ninjahood put it best: "Let da next fool take da hit on depreciation."

qft

 

[crimsoncloudattire]

First: always buy used.
Leasing is a loser's game.  Pretty much every financial advisor will tell you as much.  If you just have money to blow, it is an option, but seeing as how you are consulting NT, my guess is you are not in the 'money' crowd.  No disrespect intended.
Buying a used car for cash is a pretty good deal, provided you shop around and get good value for your money as well as make sure it is in proper working order.

Financing, depending on circumstances may be the best option for you.  I'll elaborate.  If you can get a good low interest rate (<3.5%), and you have money that you are considering putting down on your car.  It may be wiser ultimately to just keep your money in your pocket and pay the monthly bill.  Then, take that money that you would have put down and put it into an investment that's gonna yield >3.5%.  

In full disclosure: I admit, I learned the hard way.  I have a 135i that I am leasing.  I put $3000 down, and when my lease is up Nov '12, I won't be able to afford the car, and won't see any of that money back.  Eh...you live, you learn I guess.

 

[crcballer55]

I would have typically agreed with your second statement about investing the rest if you can get a low interest rate.  However, there are several factors left out of the equation.  First, I have seen MANY people subscribe to that not only with a car, but with their house too.  People took out LOC's to "invest".  Problem was, not only did their home value drop, but so did their investments.  VERY FEW investments will yield you a guaranteed rate unless you want to invest in junk bonds.  But then that defeats the point of "guaranteed" investments.  Secondly, buying a used car and then making payments on it is almost like just buying a used car for cash once it's all said and done.  Between the depreciation on the new car, and the overall payments on a used car payment, you'll come out about the same.

Third... Your car feels completely different if you have it free and clear.  It's something you can't put a mathematical formula on, but the peace and confidence it provides is second only to a paid for house.