I am considering leasing a vehicle for $269 a month for 36 months with a down of $3200. This makes the total lease payments $9684. The buyout at end of the term is $15537.00
2006-06-24 11:20:19 · 9 answers · asked by pchefelise 1 in Cars & Transportation ➔ Buying & Selling
Leasing is an option that is best when you plan to return the vehicle at the end of the lease. If, however, you decide to keep the vehicle, you have the option of getting a USED car loan. Used auto loans are at a higher interest rate than NEW cars, yet, if you can not negotiate the price down far enough from MSRP, than it can work out to be the same end amount of money either way. Look, I do disagree with another post that stated that a new car is a bad investment. What I believe that they were trying to say is that some people when purchasing a new car get to wrapped up in monthly payments and not in the actual cost of the car, thus end up with a large deprecation of the vehicle in the first year of ownership. Example, I purchased a 2005 Jeep Liberty CRD, stickered at $26690.00, financed $17523.00 with a $1500.00 trade in. Now, Kelly Blue Book values the vehicle at $21600.00 right now. Do the math.....17500. plus 1500. minus 21600 equals $2160 in positive equity. Do your homework, negotiate the price and consider all aspects of the car deal before you sign/buy. Good Luck.
2006-06-24 17:51:33 · answer #1 · answered by sfcjcl 5 · 0⤊ 1⤋
First of all.....don't lease a car. You will end up with more headaches especially if you get one with a limited mileage. If you have to pay for extra kilometers (kind of like some rental companies) you could get screwed as the dealerships normally charge a fortune (something to definitely consider if you go the lease route). Plus once you go to buyout the car at the end your car is not going to be worth $15000 if you are only paying $25000 for it to begin with.
One thing to consider if you are going to actually buy a car is that it could do wonders for your credit rating (if you keep up with payments). You may pay a little more in financing charges but it looks so good once you've paid it off. I'm on my second financed car and it really helped when I applied for my home mortgage because I had such a good rating.
Anyways, either way you go buying a car will lose you money unless you are into fixing up antiques. So think about what it will do for credit rating as well as what you may pay in other expenses (repairs, etc).
Hope this helps a bit.
2006-06-25 08:23:27 · answer #2 · answered by PAWS 5 · 0⤊ 0⤋
I have bought new cars and kept them 15 years. The cost over that period of time was outrageous. I still have a 66 corvette and a 92 InfinitiQ45 with less than 5000 miles on it. I do however lease a Honda Accord every three years and find it is inexpensive to drive, have no repairs, get the latest technology, and I have my mind at ease as I don't have to work on it. It cost me less in the long run. I also have a 96 Oldsmobile Ciera for picking up stuff. Everything I have is paid for including the lease which I pay up front in total. I don't consider myself insecure, I just don't want to have problems.
2016-03-27 03:18:15 · answer #3 · answered by Anonymous · 0⤊ 0⤋
While there have been exceptions the purchase of a car is never a good investment. Remember this is an asset that depreciates rapidly in the first few years even as you are paying compound intrest to pay it off is never a good investment. The new car is purchased for the self image of the buyer and the status it brings if any. A diamond distributor might consider it as an investment to give him tha aura of success but in all other ways it is a dead loss.
2006-06-24 11:27:35 · answer #4 · answered by Kenneth H 5 · 0⤊ 0⤋
Sounds like you're leasing--not buying a car. Always buy used, even if only a year with low mileage. The best solution is to save for it up front, so you can earn interest ahead of time and pay cash all at once instead of paying interest and not owning for a while. Debt = slavery.
2006-06-24 11:25:38 · answer #5 · answered by chdoctor 5 · 0⤊ 0⤋
Yes. You will pay extra in finance charges later if you buy it out at the end. Buy the car if you plan on having it 4 years or more. If you want a new car every few years, lease.
2006-06-24 11:25:12 · answer #6 · answered by Bianca W 1 · 0⤊ 0⤋
buying a new car is not a good investment,it loses money from the start..and leaseing makes even less sense.a 4 year old car is your best value.
2006-06-24 13:49:50 · answer #7 · answered by vince b 1 · 0⤊ 0⤋
It loses a lot of value in the first few years, so I would buy one that's a few years old- you still get warranties,etc, on it.
2006-06-24 11:24:38 · answer #8 · answered by teachingazteca 3 · 0⤊ 0⤋
Most people would say yes
2006-06-24 11:26:36 · answer #9 · answered by Plain truth 3 · 0⤊ 0⤋