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Old 09-23-2010, 03:49 PM   #1
Ashr
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Join Date: May 2009
Chapter/Region: VIC
Location: Kelowna, BC, Canada
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Default Pulling the trigger on a lease.

So I think I’m going to pull the trigger on leasing a new 2011 WRX 5door. I first need to sell my RS though..

My question is, what do I need to do / ask at the dealer when I’m making my deal?
I want to lease for 2 years and if I am still happy with the car, finance the rest of the cost for a few more years. Should = 5 all togeather.

Any one have any tips or ideas for doing this? Please share.


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Old 09-23-2010, 04:02 PM   #2
tora
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Why not just finance from the get go if you think you will do that eventually anyways? You could trade in your RS and save soem tax and finance the rest?
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Old 09-23-2010, 04:05 PM   #3
Drakar
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leasing + financing can be cheaper then just straight out financing.

you really need to work the numbers.

And as Tora said you can trade and save some taxes and the headache of trying to sell privately.

But you wont get as much for the convenience.
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Old 09-23-2010, 04:11 PM   #4
Ashr
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I need to sell my old car as I still owe a little money on my car.. So I need to sell it and then go the L - F way. I think its cheaper to lease and then do the finace.
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Old 09-23-2010, 07:49 PM   #5
-andrew-
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you actually don't need to sell the car privately if you owe money on it and want to trade it in. I've had no problems doing this in the past.

However like everyone mentioned; you'll get more money for it if you sell it yourself.
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Old 09-25-2010, 04:15 AM   #6
sixthgear
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If you want to go the lease-finance route (which im doing), dont put a DP on the lease, instead put in a damage deposit, it should lower your payments and when your lease is up, you get the deposit back. Then use that money as a down payment when you go to finance. It should save you a few thousand in the long run. But you gotta play the number game with the salesman and get the number your happy with. My lease is up in Jan and with some negotiating on the buyout price I think I should walk away with paying $34k taxes included for an 07 wrx. Which i think is OK. At least I saved on the taxes and interest vs if I financed from the start in 07.

Assuming I decide to keep the car...the 2011 wrx's are growing on me really fast.....




Quote:
Originally Posted by -andrew- View Post
you actually don't need to sell the car privately if you owe money on it and want to trade it in. I've had no problems doing this in the past.

However like everyone mentioned; you'll get more money for it if you sell it yourself.

You mean trading the car in with the dealer and having them put the balance of the trade onto your lease/finance price? Not really the best idea to do, finance wise, if you ask me.
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Old 09-25-2010, 07:11 AM   #7
dasnowman
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Personally I think leasing is the biggest rip off in the world unless
A) you own a company and can right it off
B) if you work gives you a vehicle allowance.



Unless you can get zero % financing....I would recommend doing 3 year term so you are not paying a tone on interest it's throwing your money away... if you can't afford payments on that short of a term I would recommend buying something a couple of years old that way you are not losing a tone of depreciation in the first 2-3 years. Plus a lot of time you can get good deals and extended warraties on something.

But seriously lease's are a rip off.

Say a car is worth $20k you pay $300 month for three years then the buy out is say $16-18k... Are you really going to have the money to buy it out-right? Problably not because if you did you would pay the extra $50-100 a month to finance the car instead of leasing. So at the end of the lease you now have to fianace a car at what 4-6% on $17k for another 5 years?.. So for a 20K car you have paid over $30k for that car.... Now 8 years later when it's paid of it's worth about 5-7K. We all know cars are money pit's but leasing is the bigest way to waste your money on a car.

I always see people on CL, Revscene etc trying to get out of the lease's etc I wonder why?
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Old 09-25-2010, 11:50 AM   #8
Drakar
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I don't see how a lease can rip you off vs finance and I don't see how financing will save you from depreciation.

Both cars being new will depreciate.

Lease lets you payless to figure out if you want the car. Leasing lets you return the car, fiancing your stuck selling it.

Both cars take hits the instant they drive off the lot regardless. Even paying with a sack of cash doesn't protect you.

Work the numbers, leasing for $300 a month vs fiance for $600, you can use that 300 for investments, over your term you can make more money. Then you can negotiate the buyout which you can't do in a finance (there is no re-negotiating your terms mid way)

Lease only gives you restrictions on certain things but overall its the same.

It's all about the numbers. The method you use needs to serve you best. If that means buying it with cash, fiancing it from the dealer or a bank, or leasing.


buying used will ALWAYS be cheaper especially if you get a warranty, but some people like new and some like piece of mind.

Just need to be smart about it and run the numbers all the ways.

Lease = Tool
Financing = Tool

It's all in how you use em.
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Old 09-25-2010, 01:17 PM   #9
-andrew-
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Quote:
Originally Posted by sixthgear View Post
You mean trading the car in with the dealer and having them put the balance of the trade onto your lease/finance price? Not really the best idea to do, finance wise, if you ask me.
Absolutely, but he stated that he "needed to sell the car first", I was just informing him that you don't .
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Old 09-26-2010, 01:23 AM   #10
sixthgear
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If say on a $20k car, based off of a 3 yr lease with say, no DP, $300/month payment, at the end of the 3 yr term, total leased payed would be $10,800. The buyout would then be around the $9200 mark. Even if say it is a car that holds value on the used car market, it wouldn't be more than $12k. Also in most cases, the lease rates are sometimes very comparable to finance rates. (unless you look at hyundai, where the lease rates, earlier this year were half the rate of finance. It was something stupid like 4% lease vs 9%finance) The best kind of finance plan would be a balloon payment, which is basically a lease type payment plan but is a finance. I'm not sure about other banks, but I know that Royal Bank does this.

Just to use as a reference in this thread, my buyout on my 07 wrx is $16,000.

Also, I have an ecommerce business, which allowed me to write off my car..which is also why i'm tempted to look at the 2011's now!



Quote:
Originally Posted by dasnowman View Post
Personally I think leasing is the biggest rip off in the world unless
A) you own a company and can right it off
B) if you work gives you a vehicle allowance.



Unless you can get zero % financing....I would recommend doing 3 year term so you are not paying a tone on interest it's throwing your money away... if you can't afford payments on that short of a term I would recommend buying something a couple of years old that way you are not losing a tone of depreciation in the first 2-3 years. Plus a lot of time you can get good deals and extended warraties on something.

But seriously lease's are a rip off.

Say a car is worth $20k you pay $300 month for three years then the buy out is say $16-18k... Are you really going to have the money to buy it out-right? Problably not because if you did you would pay the extra $50-100 a month to finance the car instead of leasing. So at the end of the lease you now have to fianace a car at what 4-6% on $17k for another 5 years?.. So for a 20K car you have paid over $30k for that car.... Now 8 years later when it's paid of it's worth about 5-7K. We all know cars are money pit's but leasing is the bigest way to waste your money on a car.

I always see people on CL, Revscene etc trying to get out of the lease's etc I wonder why?
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Old 10-02-2010, 04:14 AM   #11
exquisite88
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Default

Quote:
Originally Posted by sixthgear View Post
If you want to go the lease-finance route (which im doing), dont put a DP on the lease, instead put in a damage deposit, it should lower your payments and when your lease is up, you get the deposit back. Then use that money as a down payment when you go to finance. It should save you a few thousand in the long run. But you gotta play the number game with the salesman and get the number your happy with. My lease is up in Jan and with some negotiating on the buyout price I think I should walk away with paying $34k taxes included for an 07 wrx. Which i think is OK. At least I saved on the taxes and interest vs if I financed from the start in 07.

Assuming I decide to keep the car...the 2011 wrx's are growing on me really fast.....

hey, i am interested in getting the 2011 wrx as my first car! could you go further in detail about the lease to finance route.

i thought the buyout price is non-negotiable?

thanks
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