Car Leasing / Buying (in the USA)

[airshaq20]

Yes you can lease it usually 2, 3 or 4 years (depending on manufacturer and model). You usually have to make a deposit, security deposit and first payment - after your term is done, you return the car, and you dont get anything ($ 0). You end up paying for something that is NOT really yours. Its not good if you dont want to lose money but if you are a business owner (includes small business owners), you can apply your car payments, gas payments, repairs etc as your tax deductible. In the end, your car is paid off from tax refunds - so basically, your car is free.

If you dont have a business - you will lose money.

Ex. My sister-in-law leased a 2000 galant back in 2000 and returned it December 2003. She was paying $299 a month (plus her $2500 deposit) so she lost more than $13T after her lease term. If she bought it (maybe $30-50 bucks a month more) she could have sold it for $6-7T.

[Karding]

Ex. My sister-in-law leased a 2000 galant back in 2000 and returned it December 2003. She was paying $299 a month (plus her $2500 deposit) so she lost more than $13k after her lease term. If she bought it (maybe $30-50 bucks a month more) she could have sold it for $6-7k.

Your sister didnt pay the full amount of the Galant, how would she lose $13K?

299*35+2500+299= $13,264

I know for a fact that Galant doesnt sell for only $13k

However if she would have bought the Galant in Cash for $20k, then I understand how she lost that money. If she opt to sell it just now, $6k is about right.

If she financed the Galant for $299/month for 60months with $2,500 down, the total OTD price of the Galant would be $20,440 without tax (based on 8.25%), title, and doc fees.

Assuming she finally paid off the whole amount of the Galant which is $22,728. The Galant is ONLY worth $6k right now, deduct $6k to $22k and $16,728 is what she could have lost.

another scenario:

(if)She paid $20k cash in 2000 and decided to sell it just now, she gets $6k, correct? Looks like she could have lost $14k if she didnt lease.

Lets say she breaks even lease or buy. She didnt loose any money. Come to think of it, Automobiles doesnt appreciate in cost, they depreciate. So, buying a car is a lose-lose situation. There is nothing new to losing money when buying a car.


Back to the topic. This forum is subjective, so again, there is nothing new to some people being biased with their car. Speed may be the measurement for you but comfort could be someone else's cup of tea. So, every word you see is just an opinion, a subjective forum indeed.

Lets move on... :hihihi:

[airshaq20]

Your sister didnt pay the full amount of the Galant, how would she lose $13K?

299*35+2500+299= $13,264

Well, she paid that amount for a lease...and you DONT get anything after your lease end..so you end up losing your $13K payment.... wasn't talking about depreciation either, im just talking about money that came out from my pocket.

I know for a fact that Galant doesnt sell for only $13k

That total price was for a lease price..they dont base your payment based on full PURCHASE price. That is a trick to fool people that they paid cheaper...

The galant she used to have was a ES trim. I dont think it cost $20K for that model (i believe its about 15-16K. If she bought it, she could have sold it say $7K so that means she will lose around $9K.

Now, since she leased it for $13K and DID NOT GET ANYTHING after the lease term, she, therefore spent $13K compared to $9K.

I think you are confused about where they base LEASE and PURCHASE price. When you BUY (say a $10,000 car), you have to pay the WHOLE PURCHASE PRICE.....when you lease, you DO NOT PAY $10K, why would anyone lease if it cost the same amount of money to buy and lease?

==============math============
Lease
total lease paid = $13K
money back after lease term = $0
money lost = $13K

--------------------------------------
Purchase
total purchase = $16K (example)
sell it * $7K (example)
money lost = $9K
==============================


What i was saying is...from day zero you had your car till the end of lease, you will lose $13K.

From day zero till you sell that car, you will lose $9K.

I WASN'T comparing your loss between the two. What i meant was, how much money will come out from my pocket.

Think of lease as rent..if you rented a house (say $1K/month)...after a year, you move out..you get zero $$$.....so you lost all that money ($12K)....

If you bought a house ($12K).....sold it at a lower price after a year ($10K).....you lose the difference between purchase price minus sell price ($2K).

[Karding]

Sorry but you could not compare a house rent to car-lease. Not even a car payment to buy or mortgage payment, thats just plain ignorance.

why would anyone lease if it cost the same amount of money to buy and lease?

Because ppl who likes to change car every 3 years is better off with lease. Unless of course, you pay it off by year 3.

Because they lose more money if they BUY and sell it in the 'middle' of the term as opposed to leasing it.

If your statement is true, chances are its not, then why do you think more ppl BUY as opposed to LEASE?

Your sister lost $13k but she didnt even pay the whole price in the first place. Why do you keep insisting that she lost $13k when she could never own that Galant for that price?

Even if she finished paying the 36-month lease, she would have to pay the OPTION TO BUY price. So your mentality that you pay less on LEASE is invalid. Because you still need to come up with the OPTION TO BUY amount which is usually equivalent to PURCHASE price.

You are the first person I know who thinks that lease is paying less...

Did you know there's a term called OPTION TO BUY at the end of lease term, it would cost you more money to own the car by doing so. Some dumb-asses doesnt know anything about this OPTION TO BUY and they think the actual amount they pay the leased car are the monthly payments made.

=====math for dummies======
$17,820 price for the car

then 2.9% APR

=$18,336/$305.60

$306.60*36months = $10,980

If she only paid 36 months then she is still short for the actual purchase price. Who said that the only amount she has to pay if she decided to buy the leased-car is the actual payment she made???

[airshaq20]

we are not in the same page man..you are not reading to what i just said..heheh

Ok, ok....lets take for example your 240SX....you PURCHASED it for example at $2,400.00 - say..after a year....you sold it for $2K.....you lost 400 bucks right?

Now....say you LEASED your car from a dealer for $150 a month for 12 months...after your LEASE TERM, you paid $1800......now you return the car.....you SPENT (lost) $1800.....

========explanation for dummies==================

From day zero (pick up car) you leased til the 365th day (return day)...you SPENT $ 1800.00

From day zero (buy car) you PURCHASED til the 365th day (sell car)....you SPENT $400 (purchase minus sell pric)
===========================================

So whats hard to understand there? I was talking about ACTUAL MONEY THAT I LOST (SPENT) FROM MY POCKET..not talking about buy-out (where did that came from anyway)...

.....we're not talking about depreciation, cost of ownership, taxes, etc...we are not talking INVESTMENTS here....

Option to buy is a different story.....i was actually just talking about MONEY THAT CAME OUT FROM MY POCKET....

[Macky]

Ang gulo, hehehe...

Pero bago kasi dapat magsalita about LEASING and BUYING, dapat siguro alam nyo man lang yung concept nila di ba? I understand where Karding is coming from as he knows the concept of leasing. Magulo nga naman kasing sabihin na nawalan ka ng $13K sa LEASE tapos sinabi mo yung benefits na kung BUY instead of LEASE and then you are trying to avoid the valid inquiry kung bakit natalo ka ng $13K sa LEASE. Kung total cash out lang ang sinasabi mong nawala, dapat yata hindi mo na sinabi na mas maganda yata kung binili na lang yung kotse. Sa commuting expenses mo na lang dapat ni-compare yung total cash out na $13K since parehong travelling expense yung binayaran, IMO since literal na yung usapan, hehehe.

Si Karding talaga e masunuring bata.... nabasa yata sa post mo na gusto mo yung may pumupuna nung mga mali din di ba?

[Karding]

MSRP: $17,000

She didnt lose $13k at the end of lease term.

Even if the $13k was based on purchase terms, she still owes $4000 to have the title released to her. I dont care if thats lease or buy, there is a LIEN HOLDER for that vehicle, aka the BANK.

Lets say she decided to buy the car at lease end, then she pays $4,000 to have the title released to her. She then decided to sell the car, which is worth $6k.

$17,000 total payment
($6000) selling price
$11,000 money lost

Damn, I cant believe we're arguing for a mere $2,000 difference :hihihi:

[airshaq20]

well...the topic was just about money spent ...not buy option, taxes, etc...

[airshaq20]

MSRP: $17,000

She didnt lose $13k at the end of lease term.

Even if the $13k was based on purchase terms, she still owes $4000 to have the title released to her. I dont care if thats lease or buy, there is a LIEN HOLDER for that vehicle, aka the BANK.

Lets say she decided to buy the car at lease end, then she pays $4,000 to have the title released to her. She then decided to sell the car, which is worth $6k.

$17,000 total payment
($6000) selling price
$11,000 money lost

Damn, I cant believe we're arguing for a mere $2,000 difference

I know i know....
But i guess we had a misunderstanding..you were assuming that you will LEASE and BUY the car after LEASE term and SELLING IT....i was just talking about LEASING IT (i dont know where that BUY OUT option came from...but of course anyone can do it).....

LEASE and BUY OUT is a different story.
Was talking about LEASING ONLY vs BUYING & SELLING.
Now you are talking about LEASE-BUYOUT-SELL vs BUY&SELL.

3 words => apples and oranges.

[airshaq20]

hahahah....

peace out bros...

[the_wildthing]

Oy useful tong thread na 'to...

Eto ang tanong:

Kung bagong salta ka sa US, what's your best option in getting a car?

If we can forget for the moment that you have to build up credit history...or do you really need that to get a new car?

[Macky]

Oy useful tong thread na 'to...

Eto ang tanong:

Kung bagong salta ka sa US, what's your best option in getting a car?

If we can forget for the moment that you have to build up credit history...or do you really need that to get a new car?

Base on experience, new car ang safest kung walang willing mag co-sign sa yo. Di kasi madaling magpa-approve ng used car for financing lalo't wala kang credit history. Kung may pera ka, bumili ka na lang ng kaya ng pera mo. Mahirap din kasi ang may monthly car payments. Nung bagong salta ako dito, it took me 6 months bago makakuha ng kotse. Wag kang maga-apply ng maga-apply ng car loan... panget sa credit history. Dun ka sa sigurado.... DCU (dcu.org) for me. OK sila.... mababa pa ang APR. Kailangan mo lang ng kakilalang member ng DCU para isponsoran ka ng membership. Pero tulad ng sabi nila, you need to have a stable job first.

FYI... hindi lahat ng loans panget, meron ding mga positive loans like car and housing loans.

[ILuvDetailing]

Masakit sa ulo dudes. Babasahin ko uli mamaya

[boydapa]

magdadala na nga lang ako ng cash hehe---as if meron

[airshaq20]

Oy useful tong thread na 'to...

Eto ang tanong:

Kung bagong salta ka sa US, what's your best option in getting a car?

If we can forget for the moment that you have to build up credit history...or do you really need that to get a new car?

First, you need a job, coz no one's gonna lend you money if you dont have a job. Second, you need to build your credit by paying your bills on time. 3rd, have at least one credit card for you to establish your credit. THen you can start applying for loans. First time buyers, they usually give higher interest rate.

My suggestion, get a used car.

[voltes_V]

First, you need a job, coz no one's gonna lend you money if you dont have a job. Second, you need to build your credit by paying your bills on time. 3rd, have at least one credit card for you to establish your credit. THen you can start applying for loans. First time buyers, they usually give higher interest rate.

My suggestion, get a used car.

Add ko lang po, another pampalito. Hindi rin madaling makakuha ng credit card para sa mga bagong salta. The funny thing here is aaprubahan ka lang ng credit card kapag marami ka ng utang which is totally opposite jan sa atin. Eh papaano ka nga makakautang kung bagong dating ka dito at wala ka nga ni isang credit card na pwedeng gamitin in the US or Canada. Tapos hindi pa honored yung mga credit cards mo sa Pinas.
The only solution we had that time was to get a SECURED VISA( Im not sure tho if Im using the right term).This is like a regular VISA, the difference is you have to pay for it first (around 1000 dollars ata) parang pre-paid in a way, unlike the ordinary VISA that you get for free during your first application.
Another thing is if your planning to purchase a car and have it go through financing, youll have better luck of getting approved for a small compact car as opposed to a van or an SUV.
Please do note kapag apply ka ng apply ng mga credit cards tapos puro dissaprub, bababa ang credit rating mo. To be safe, get a secured VISA first then once mahaba na ang line of credit and good payer ka, thats the time for applying for more credit cards ang buying the more finer things in life.

[cyberdoc95]

If you can afford to just buy the car, I'd suggest to buy it. Leasing is very expensive in the end in my opinion and you have to give up the car after the end of the contract. To me, parang sayang yung binigay mo na parang monthly payments na rin sana.

But on the other hand, leasing can be advantageous to some people. Those who easily gets tired of their cars and needs to change every 3 years, this might work. Or to those who really don't mind spending without expecting any returns. This will also be useful to people who likes luxury cars, then do an option-to-buy after the contract.

I've been offered leasing before since one of the requirements to lease is at least a very good Credit Rating. Some don't require a downpayment. But parang nasasayangan kasi ako na parang feeling ko na ako ang bumayad sa depreciation ng sasakyan tapos I'll give it up after. Some people might be able to take it, but I can't.

If I have the option, I'd try a pre-owned vehicle. Still very good condition and checked thoroughly by the dealer to be good as new as far as performance is concern!

[ILuvDetailing]

Cyberdoc: If you have a business, then leasing would be a smarter option right? Based on what airshaq told me on the other thread.

[cyberdoc95]

Cyberdoc: If you have a business, then leasing would be a smarter option right? Based on what airshaq told me on the other thread.

ILUVDETAILING,
Yep! Sorry I forgot to mention about this. It is advantageous for businesses since it will be tax deductable. Also, if your work would concern frequent traveling like a home-visit nurse or doctor, or a home-delivery service or any business that would involve the use of the vehicle, it would also be tax deductable by the number of miles you have traveled.

[airshaq20]

regarding dun sa lease/rent to own. ang pagkakaintindi ko pwede ka mag rent to own dyan tapos pag sawa ka na ibalik mo uli sa binilihan mo at papalitan ng bago tapos rent mo uli yun hangang magsawa ka and so on...kasi it is cheaper in the long run. tama ba?

Hmmmm.....try Enterprise, Avis, Budget, Hertz, Thrifty, Alamo, Dollar, Nationalcar, etc. You can rent as long as you want. Then you can buy one of their cars if you wish..hehehehee