Read The Forum Rules: We have a clear set of rules to keep the forum running smoothly. Click here to review them.

Post Reply 
Leasing versus buying a car - low end luxury cars
Author Message
Sonoma Offline
Pelican
****

Posts: 1,009
Joined: Nov 2014
Reputation: 6
Post: #26
RE: Leasing versus buying a car - low end luxury cars
Leasing is enjoyable to have a worry free driving experience, downside is its not a permanent fix, as every few years you have to get a new car.

If you think a permanent 500-800/mo car payment is worth it, then go for it.

I understand not wanting to show up to a professional job in a beater, but I do think there's better options available than leasing luxury vehicle
09-02-2017 04:52 PM
Find all posts by this user Like Post Quote this message in a reply
Kona Offline
Crow
*****
Gold Member

Posts: 5,615
Joined: Aug 2009
Reputation: 144
Post: #27
RE: Leasing versus buying a car - low end luxury cars
(09-02-2017 04:17 PM)Repo Wrote:  That said I'm looking at those Alpha Romeos that Kona mentioned, those look amazing, and seem to have great reviews.

Those are exactly the case I was mentioning where the base model is probably stupid. From what I read, and how it feels to drive, that's a Ferrari engine in the Quadrofoglio. https://en.m.wikipedia.org/wiki/Ferrari_F154_engine

Its double the price of the base, but worth it. I don't see a lease option on the website, but I know the Alfa romeo in Honolulu would do it for that model. https://www.alfaromeousa.com/car-shoppin...ent-offers

And you want the warranty. That thing needs to be dealer serviced.

Aloha!
09-02-2017 06:08 PM
Find all posts by this user Like Post Quote this message in a reply
Repo Offline
Hummingbird
*****

Posts: 3,350
Joined: Feb 2015
Reputation: 24
Post: #28
RE: Leasing versus buying a car - low end luxury cars
Yeah, there is a lease option coming up for me, but the price is essentially the same as the car payment so I'd definately buy it if I chose that option. Not sure why this specific car the lease price is so high compared to other cars in the same price range, I guess they don't really want you to lease them.
09-02-2017 06:20 PM
Find all posts by this user Like Post Quote this message in a reply
h3ltrsk3ltr Offline
Kingfisher
***
Gold Member

Posts: 942
Joined: Jun 2014
Reputation: 29
Post: #29
RE: Leasing versus buying a car - low end luxury cars
(09-02-2017 04:32 PM)crdr Wrote:  
(09-02-2017 04:14 PM)Repo Wrote:  I'm not set on any car at this point, still shopping and probably won't purchase till next year. Thread was intended to simply discuss the pros and cons of leasing versus buying. I've never leased a car before, but at first glance it seems to be an attractive option.

Leasing a car is good if you have a business for tax write off purposes.
I still don't know what a tax write off is.
But leases crush cashflows. Repossessions are going to be very high during a Trump Administration.

I've never leased a car and never will. Knowing that the bank owns my car rather than myself is a nightmare to me. When things go bad, which they will, you will a) paying the expenses of something that you will end up taking back b) You fail to make payments you risk your credit for something that doesn't appreciate or own...

Beta on all counts.

I respect this opinion but a humorous reply to the saying that you'd rather own your car is...Q: why does a the bank have a drive through? A: So your car can see its owner when you make your car payment.

Might not be so relevant now that you pay online but you don't own your car if you're financing it either. Unless the title's locked away in your desk drawer or in the important pile next to your birth certificate it's still not "yours"

But I agree with you that the smartest use of money when it comes to cars is typically to pay it outright, upfront and keep that figure as low as god, greed, and government allow.

Per Ardua Ad Astra | "I have come here to chew bubblegum and kick ass. And I'm all out of bubblegum"

Cobra and I did some awesome podcasts with awesome fellow members.
09-02-2017 06:21 PM
Find all posts by this user Like Post Quote this message in a reply
[-] The following 1 user Likes h3ltrsk3ltr's post:
crdr
crdr Offline
Banned

Posts: 326
Joined: Jul 2016
Post: #30
RE: Leasing versus buying a car - low end luxury cars
(09-02-2017 06:21 PM)h3ltrsk3ltr Wrote:  
(09-02-2017 04:32 PM)crdr Wrote:  
(09-02-2017 04:14 PM)Repo Wrote:  I'm not set on any car at this point, still shopping and probably won't purchase till next year. Thread was intended to simply discuss the pros and cons of leasing versus buying. I've never leased a car before, but at first glance it seems to be an attractive option.

Leasing a car is good if you have a business for tax write off purposes.
I still don't know what a tax write off is.
But leases crush cashflows. Repossessions are going to be very high during a Trump Administration.

I've never leased a car and never will. Knowing that the bank owns my car rather than myself is a nightmare to me. When things go bad, which they will, you will a) paying the expenses of something that you will end up taking back b) You fail to make payments you risk your credit for something that doesn't appreciate or own...

Beta on all counts.

I respect this opinion but a humorous reply to the saying that you'd rather own your car is...Q: why does a the bank have a drive through? A: So your car can see its owner when you make your car payment.

Might not be so relevant now that you pay online but you don't own your car if you're financing it either. Unless the title's locked away in your desk drawer or in the important pile next to your birth certificate it's still not "yours"

But I agree with you that the smartest use of money when it comes to cars is typically to pay it outright, upfront and keep that figure as low as god, greed, and government allow.

I really like that one.
09-02-2017 06:27 PM
Find all posts by this user Like Post Quote this message in a reply
[-] The following 1 user Likes crdr's post:
h3ltrsk3ltr
John Michael Kane Offline
Crow
*****

Posts: 4,053
Joined: May 2014
Reputation: 87
Post: #31
RE: Leasing versus buying a car - low end luxury cars
Any car that you can lease or buy new, you're better off buying a slightly older version of that car due to immediately 20-25% depreciation just by driving it off the lot. A used car, that you buy outright, with 20-40k miles on it is a great compromise between not having to worry about repairs, and not paying too much up front. At the same time, you own the car, so you don't have the hassle of mileage overage on a lease, or handing it back and repeating the process once the lease is up. Buying new cars doesn't make sense at all given the massive loss of value that you will never recoup.

John Michael Kane's Datasheets: Master The Credit Game: Save & Make Money By Being Credit Savvy
Boycott these companies that hate men: King's Wiki Boycott List

Try not to become a man of success but rather to become a man of value. -Albert Einstein
09-02-2017 06:37 PM
Find all posts by this user Like Post Quote this message in a reply
[-] The following 3 users Like John Michael Kane's post:
crdr, Cruisen_Chubby, RoastBeefCurtains4Me
Kona Offline
Crow
*****
Gold Member

Posts: 5,615
Joined: Aug 2009
Reputation: 144
Post: #32
RE: Leasing versus buying a car - low end luxury cars
(09-02-2017 06:20 PM)Repo Wrote:  Yeah, there is a lease option coming up for me, but the price is essentially the same as the car payment so I'd definately buy it if I chose that option. Not sure why this specific car the lease price is so high compared to other cars in the same price range, I guess they don't really want you to lease them.

http://www.giuliaforums.com/forum/481-al...554?page=1

They make a lot less of them that cars in the similar range. And there's less dealerships, so a solid used market isn't there. In fact it looks like they stopped Alfa romeo franchises in the us and just brought them back a few years ago. https://www.usatoday.com/story/money/car.../10285723/

Aloha!
09-02-2017 06:43 PM
Find all posts by this user Like Post Quote this message in a reply
Simeon_Strangelight Offline
Hawk
*******
Gold Member

Posts: 19,342
Joined: Feb 2014
Reputation: 219
Post: #33
RE: Leasing versus buying a car - low end luxury cars
I have heard even from a guy who is worth 40 mio. $ that Leasing a car does not calculate. Low-end luxury range does not make much sense. Some low-end conventional/utility cars may have so many given perks that they sort of make sense if you use it for your business and sell it off within 3 years.




In German, but good subtitles in English available. (Guy may not look like this, but he is a Harvard educated former investment banker who is now worth 40 mio. $.)

Aside from the financial issues there are other risks. Essentially the bank owns the car. One of the actual cases that I heard to an acquaintance was brutal. She bought a small compact car, had it almost paid off completely after 3 years. The she got into an accident (not her fault) and the car was totaled. Since the lease contract was almost up, the bank received the payout for the car and said to her: "Thank you and fuck off." The car was still worth some 50%+ of the original price, but who cares. Sure - you can make sure that the insurance option covers somehow for that little thing, but you will still be fucked over in such a case - even if less strongly than with the case above.

I also worked for some very successful financially prudent mid-sized companies (up to 300 mio. $ turnover) and I was also surprised to find out that many of them preferred to buy a low-key utility vehicles, own it in full and then sell them off later. Big corporations leased, but they have access to banks, some even financed the deals with their own financial divisions.

I might point out as well that the price decrease especially in the luxury range is massive in most models. You will be better suited to buy a used car which is 4 years old, but has a relatively low mileage. You could take a credit, though I personally don't even recommend that from a financial viewpoint.
(This post was last modified: 09-03-2017 04:07 AM by Simeon_Strangelight.)
09-03-2017 03:56 AM
Find all posts by this user Like Post Quote this message in a reply
[-] The following 1 user Likes Simeon_Strangelight's post:
Monty_Brogan
Thomas the Rhymer Offline
Ostrich
****
Gold Member

Posts: 2,058
Joined: Feb 2012
Reputation: 114
Post: #34
RE: Leasing versus buying a car - low end luxury cars
(09-02-2017 12:03 PM)Repo Wrote:  
(09-02-2017 11:29 AM)Thomas the Rhymer Wrote:  What are you buying/leasing for?

Seems pointless to buy/lease a 'luxury' car just for a daily commute.

On the other hand, if you just happen to enjoy riding luxury cars, you would probably want to rapidly trade in cars so that you can get the next big thrill.
It would make sense to rather have short-term lease agreements and then rapidly switch to the next car for your next dopamine hit.

For my own enjoyment mostly. I'm not rich by any means, make just over 6 figures and have a very reasonable mortgage. I mostly date women in my income class or higher, so I don't know if a beater is worth it, plus wouldn't look that good when showing up with it and senior directors at work. And most importantly I just don't want a beater. I realize neither option is a great financial decision, but I'm a single guy in low 30s and based off various health issues and diseases that run in the family I don't expect to live passed 70.

Anyway, I live outside Philly limits so the car would get a decent amount of use, but definately not more than 10k miles a year.

Lastly would like to have a nice car to help with SA game, that thread has been eye opening. Whether buy or lease, I could afford to pay off the sticker price in 4 years, which seems to be the rule of thumb.

Why don't you just keep your current car, and then supplement with the occasional month-to-month rental of a high end luxury car? Then instead of having a low end car you can instead enjoy having a high end car. When the hole in your budget starts getting too big, you just hand back the car, cancel the month-to-month rental (I've had a quick look at car rental sites in the USA, most of them allow to cancel anytime), and go back your current car until you've saved up for the next awesome car rental.

It seems silly to commit yourself to a 4 year commitment to a 7 when what your really want is to enjoy short term experiences with a string of 9's.

A beginner's guide to jobhunting and networking
09-03-2017 04:18 AM
Find all posts by this user Like Post Quote this message in a reply
[-] The following 2 users Like Thomas the Rhymer's post:
Ski pro, 456
Running Turtles Offline
Robin
*

Posts: 236
Joined: May 2015
Reputation: 5
Post: #35
RE: Leasing versus buying a car - low end luxury cars
This is really not my area of expertise, but a friend of mine bought a used (ca 8 year old) Ferrari and drove it for a few years. Not a practical car by any means, but he sold it recently for more than he bought it for without doing anything except maintenance. At a certain point, very high-end cars stop depreciating and start appreciating due to rarity. I'm not sure how much of a car guy you are, but if you're very interested, you might find similar opportunities.
09-03-2017 01:20 PM
Find all posts by this user Like Post Quote this message in a reply
[-] The following 2 users Like Running Turtles's post:
Simeon_Strangelight, Repo
Simeon_Strangelight Offline
Hawk
*******
Gold Member

Posts: 19,342
Joined: Feb 2014
Reputation: 219
Post: #36
RE: Leasing versus buying a car - low end luxury cars
(09-03-2017 01:20 PM)Running Turtles Wrote:  This is really not my area of expertise, but a friend of mine bought a used (ca 8 year old) Ferrari and drove it for a few years. Not a practical car by any means, but he sold it recently for more than he bought it for without doing anything except maintenance. At a certain point, very high-end cars stop depreciating and start appreciating due to rarity. I'm not sure how much of a car guy you are, but if you're very interested, you might find similar opportunities.

Correct. Buying a low-end luxury car via lease is less rational than buying a high-end older sports car on credit.
09-03-2017 01:53 PM
Find all posts by this user Like Post Quote this message in a reply
Hypno Offline
Hummingbird
*****

Posts: 3,611
Joined: Dec 2016
Reputation: 33
Post: #37
RE: Leasing versus buying a car - low end luxury cars
Leasing v buying should be neutral, because they do the math and estimate the value of the car at the end of the lease.

Leasing seems cheap because you don't pay for the car after the lease is over.

It also seems cheap because there is an up front payment and the monthly payments are less than the cost to finance the entire car.

But what you are doing is buying the most expensive years of a car. Much better to buy an offlease car since you get it at a discount. Check out offleaseonly.com

Also, the lease will limit you to a certain number of miles, impose charges for minor damage, etc.
09-03-2017 02:10 PM
Find all posts by this user Like Post Quote this message in a reply
[-] The following 3 users Like Hypno's post:
bootyhuntah, The Beast1, h3ltrsk3ltr
True Balla Offline
Robin
*

Posts: 189
Joined: May 2017
Reputation: 4
Post: #38
RE: Leasing versus buying a car - low end luxury cars
(09-03-2017 02:10 PM)Hypno Wrote:  Leasing v buying should be neutral, because they do the math and estimate the value of the car at the end of the lease.

Leasing seems cheap because you don't pay for the car after the lease is over.

It also seems cheap because there is an up front payment and the monthly payments are less than the cost to finance the entire car.

But what you are doing is buying the most expensive years of a car. Much better to buy an offlease car since you get it at a discount. Check out offleaseonly.com

Also, the lease will limit you to a certain number of miles, impose charges for minor damage, etc.
I agree with him. I bought mine from Offlease and got a (3 years old) Range Rover Sport for 44k. Put really awesome looking Off market rims on it, and it looks better than new Stock models. Every girl loves it, looks sleek in front of clients / managers / other dudes. Very safe, very spacey. I mean nothing but upsides after the 44k price tag.
09-03-2017 06:54 PM
Find all posts by this user Like Post Quote this message in a reply
[-] The following 1 user Likes True Balla's post:
roberto
Simeon_Strangelight Offline
Hawk
*******
Gold Member

Posts: 19,342
Joined: Feb 2014
Reputation: 219
Post: #39
RE: Leasing versus buying a car - low end luxury cars
You guys should be aware of the fact that GM, Chrysler and Ford survived during the time where they produced butt-ass products only because of their financing division. Even the so-called 0% lease is in reality not that.

Leases can be as high as 15%+. Someone is raking in that cash and that cash is coming from someone - you!
09-04-2017 02:38 AM
Find all posts by this user Like Post Quote this message in a reply
[-] The following 2 users Like Simeon_Strangelight's post:
roberto, RoastBeefCurtains4Me
NewDayNewFace Offline
Banned

Posts: 475
Joined: Jun 2016
Post: #40
RE: Leasing versus buying a car - low end luxury cars
Get a year or two year old Maserati Ghibli. They are pretty inexpensive compared to other luxury vehicles. No-one else would know except you and other car junkies.
(This post was last modified: 09-04-2017 08:48 AM by NewDayNewFace.)
09-04-2017 08:47 AM
Find all posts by this user Like Post Quote this message in a reply
John Michael Kane Offline
Crow
*****

Posts: 4,053
Joined: May 2014
Reputation: 87
Post: #41
RE: Leasing versus buying a car - low end luxury cars
(09-04-2017 08:47 AM)NewDayNewFace Wrote:  Get a year or two year old Maserati Ghibli. They are pretty inexpensive compared to other luxury vehicles. No-one else would know except you and other car junkies.

They are quite a bit cheaper than their newer versions, but often have a poor track record of reliability and very expensive cars to maintain. Fun to drive, but will put a crimp in the pocketbook.

John Michael Kane's Datasheets: Master The Credit Game: Save & Make Money By Being Credit Savvy
Boycott these companies that hate men: King's Wiki Boycott List

Try not to become a man of success but rather to become a man of value. -Albert Einstein
09-04-2017 01:45 PM
Find all posts by this user Like Post Quote this message in a reply
LowerCaseG Offline
Banned

Posts: 539
Joined: Feb 2012
Post: #42
RE: Leasing versus buying a car - low end luxury cars
If you only expect to drive 10k miles per year, that shifts the bias toward leasing. Obviously you must negotiate. However, for a purchase, if you were willing to take it down a tier, I would recommend a Mazda 6. Also, seek out a standard transmission that will save you about 2k off the bat, maybe more with the bmw. If you have good credit you should be able to get .9-1.9% financing and although im not into financing generally, that's just free money seeing as you would feel like a chump if you could not turn $35k into 36,750 in 5 years. Often they will give you a $750 deduction if you finance, so you are really not paying much interest.

The internet is your friend. I printed out am internet offer for my wife's car, brought it to the dealer and he couldn't believe it, but honored it.
09-05-2017 01:18 AM
Find all posts by this user Like Post Quote this message in a reply
DJ-Matt Offline
Hummingbird
*****
Gold Member

Posts: 3,283
Joined: Dec 2013
Reputation: 28
Post: #43
RE: Leasing versus buying a car - low end luxury cars
This website was mentioned here before, but deals like this are rare:

https://leasehackr.com/blog/2017/3/6/lea...nth-0-down

"The Carousel Stops For No Man" - Tuthmosis
There is no salvation outside the Church
09-05-2017 10:50 AM
Find all posts by this user Like Post Quote this message in a reply
Graft Offline
Kingfisher
***
Gold Member

Posts: 500
Joined: May 2016
Reputation: 44
Post: #44
RE: Leasing versus buying a car - low end luxury cars
Just wanted to add my two cents to the leasing game:

If you go on a website, http://www.swapalease.com, you can pick up leases that no one wants anymore.

Say you want a Mercedes Benz AMG GT, 120k new. It will probably run you 70-90k used. A full lease will be 36 months at say $1800 a month, for $65k total.

You go on the site and see that someone wants to get rid of their last 6 months of the AMG. As long as you have the income/credit to be approved by Mercedes, you can drive with that Benz for $10,800.

I built this empire and I did it by myself. Nobody did it for me. Not Ivana, not Marla. Nobody! ~Donald Trump
08-29-2019 03:50 PM
Find all posts by this user Like Post Quote this message in a reply
Post Reply 


Forum Jump:


User(s) browsing this thread: 1 Guest(s)

Contact Us | RooshV.com | Return to Top | Return to Content | Mobile Version | RSS Syndication