Why not lease?

[Randimus Maximus]

Rolling negative equity into a lease and going to term on it is one of the only ways to get out of a negative equity situation without paying off the loan.

Don't most leases only give you 15k mi a year?

You are going to get royally ass make the beast with two backsed going over your mileage that much.

Yes, most standard leases are 15K a year.

However, if you drive more than that, you can buy the miles up front for say $0.10/mile vs. $0.15/mile at the end.

And if ML is using the vehicle for business, he can write the miles off anyways.  Lots of tax advantages for business on a lease.

[derby]

Rolling negative equity into a lease and going to term on it is one of the only ways to get out of a negative equity situation without paying off the loan.

well, yeah.. but my point was that it'll also increase his lease payment.

how does the rolled-up-negative-equity lease payment (including buying miles up front to reach his 25k/yr) compare to his current payment?

for that matter, how much longer does he have on his current loan?

if the payments are comparable, i think i'd much rather "stay the course" on my current loan (for likely the same term) and end up with a 100% equity vehicle instead of being empty-handed in 36 months.

[Randimus Maximus]

well, yeah.. but my point was that it'll also increase his lease payment.

yes, it will probably result in a higher payment.

unfortunately far too many customers find themselves in a situation like ML's.  They want a new car and are buried. 

they still get the new car, but go from a 48 to a 60 month finance contract.  2 1/2 years later, they are still buried and want another new car, so they roll that into a 72 month finance contract to keep the payment manageable. 

guess what happens in 2 1/2 to three years?  Yep, new car and an 84 month term.

if that customer had rolled the negative equity into a lease, they wouldn't have any negative equity when the lease term was up.

[Monsterlover]

they're just going to roll that negative equity into your next lease/loan...

how do your future payments look when you take that into consideration?

Still better by more than a few bucks.

Don't most leases only give you 15k mi a year?


You are going to get royally ass make the beast with two backsed going over your mileage that much.

It's negotiable.  Ive had quotes for leases up to 20k a year, but that was almost two years ago when A) you could do that, and B) 20k would cover me.

It may not work out for me this time around.  I may just stay where im at.

[Monsterlover]

Rolling negative equity into a lease and going to term on it is one of the only ways to get out of a negative equity situation without paying off the loan.

Yes, most standard leases are 15K a year.

However, if you drive more than that, you can buy the miles up front for say $0.10/mile vs. $0.15/mile at the end.

And if ML is using the vehicle for business, he can write the miles off anyways.  Lots of tax advantages for business on a lease.

It's a little different for me. . .

I get a majority portion reimbursed to me by my employer.  If I were over on my miles at the end, I'd turn that bill in and my portion of the cost would be about 15% of the total

There's really nothing left (that I know about) that I can claim on my taxes

[cyrus buelton]

When did people become non-content with owning a vehicle for the life of it?


I bought a new Jetta TDI in 2004. That sucker will be run til it won't go anymore.

Bought my 2003 lexus rx300 in december. Same applies.


a car is a car. It is functional. I don't care about performance all that much, I am not racing it.

It is a tool for my life and that is that. just my opinion I guess.

[Randimus Maximus]

When did people become non-content with owning a vehicle for the life of it?

that's not the American way, Cyrus.

And while I may be joking with you a bit, it's reality for a lot of people.

the average trade in cycle is about 39 months.

as such, why would anyone get themselves into a finance or lease contract much longer than that?

[cyrus buelton]

that's not the American way, Cyrus.

And while I may be joking with you a bit, it's reality for a lot of people.

the average trade in cycle is about 39 months.

as such, why would anyone get themselves into a finance or lease contract much longer than that?

Exactly and I think it is a shame our country has moved in that direction. It NEVER used to be that way.

I bet if most talked to their parents, grand parents, etc they would never have dreamed of owning a car for 39 months and getting a new one.


Cars have turned into such a status symbol that they don't mean shit anymore. Who cares if you drive a BMW?

I bought a 6yr old car and my payment is exactly where I want it. Not a whole lot, I think 274$ a month.

I was telling someone that and they were like "you could have leased a bmw for 345$ a month, why didn't you do that?"



that type of mentality is not how I was raised.

[Monsterlover]

that type of mentality is not how I was raised.

+1

In my case, though, a lease *may* make sense.

However, I still struggle with that idea.  I like to own things vs. rent them.

I've never rented anything (saved a ton of money and moved to my own house from my parents house)

I'm finding it hard to embrace the dark side

[Grampa]

blame the birth control pill

[Drjones]

When did people become non-content with owning a vehicle for the life of it?

As soon as the car companies realized they could make a shit ton more money off of finance interest than the actual sale of the car and started marketing the monthly payment.  $25 down and pay the payment on the window!

[Buckethead]

Exactly and I think it is a shame our country has moved in that direction. It NEVER used to be that way.

I bet if most talked to their parents, grand parents, etc they would never have dreamed of owning a car for 39 months and getting a new one.

My grandfather used to get a new Buick from the dealership every year. He'd trade in last year's model, throw in $300, and drive away owning this year's model.

Granted, that was the late 50's, so $300 was more money back then.

I blame Shake'n'Bake.

[herm]

i blame IZ.
or more specifically, his life style.

[cyrus buelton]

As soon as the car companies realized they could make a shit ton more money off of finance interest than the actual sale of the car and started marketing the monthly payment.  $25 down and pay the payment on the window!

the car companies decided that


People are just stupid and fell for it.

[Grampa]

the car companies decided that


People are just stupid and fell for it.

jedi mind trick

*waves hand  " these are the payments you are looking for"