How many are leasing opposed to buying?
07-23-2002, 11:15 PM
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How many are leasing opposed to buying?
I am interested in Buying the Z, but am wondering if it's worth it, or better to lease for 4 years, and buy it used....
07-23-2002, 11:29 PM
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At Nissan (and everywhere else), you can lease for up to 5 years.
I like leasing, personally. I can "rent" the car and decide if I want to keep it later. The people that say leasing is awful, probably never leased.
The real difference is as follows:
Purchase:
you are not paying for all the interest if you sell early, as in a lease. However, in the first half of your term of the purchase, you pay VERY LITTLE principle, and mostly interest. Selling a purchased vehicle early is as difficult as selling a lease early, as you still owe the majority of the principle.
Lease
you are paying for ALL the interest equally over the entire term. If you sell early, you STILL pay all the interest + the residual value. This usually is around the same amount as a purchase.
I am trading my Toyota in for this Z. I leased my Toyota. I will be trading it in for no negative payout. Because I will be buying out the lease, there are ZERO penalties, such as mileage, etc. In the past, when I traded my vehicle after the same 4 years, I have always been around $3k-4k upside down.
I am a lease person,
Todd
I like leasing, personally. I can "rent" the car and decide if I want to keep it later. The people that say leasing is awful, probably never leased.
The real difference is as follows:
Purchase:
you are not paying for all the interest if you sell early, as in a lease. However, in the first half of your term of the purchase, you pay VERY LITTLE principle, and mostly interest. Selling a purchased vehicle early is as difficult as selling a lease early, as you still owe the majority of the principle.
Lease
you are paying for ALL the interest equally over the entire term. If you sell early, you STILL pay all the interest + the residual value. This usually is around the same amount as a purchase.
I am trading my Toyota in for this Z. I leased my Toyota. I will be trading it in for no negative payout. Because I will be buying out the lease, there are ZERO penalties, such as mileage, etc. In the past, when I traded my vehicle after the same 4 years, I have always been around $3k-4k upside down.
I am a lease person,
Todd
07-23-2002, 11:41 PM
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Not so fast
Everythime I looked into leasing it will always cost you more in the long run if you end up purchasing the vehicle at the end of the lease.
You also own nothing and have nothing to show for your $20K of lease payments at the end of your agreement. Also have limited miles. Plus you have to carry more comprehensive car insurance.
The advantages of leasing is you can get cheaper monthly payments, you get a new car every few years and you hopefully don't have any problems to fix.
When purchasing a vehicle, you get higher payments, but you own it when your done,also it cost less then leasing it and buying it at the end of the lease. The disadvantages of buying...you maybe upside down if you trade in early on another vehicle.
This is my own opinion when I have looked into it.
You also own nothing and have nothing to show for your $20K of lease payments at the end of your agreement. Also have limited miles. Plus you have to carry more comprehensive car insurance.
The advantages of leasing is you can get cheaper monthly payments, you get a new car every few years and you hopefully don't have any problems to fix.
When purchasing a vehicle, you get higher payments, but you own it when your done,also it cost less then leasing it and buying it at the end of the lease. The disadvantages of buying...you maybe upside down if you trade in early on another vehicle.
This is my own opinion when I have looked into it.
07-23-2002, 11:47 PM
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I have to agree, that even though the payments are higher, if you can get a real low interest rate, which is pretty easy right now, it would make sense in the long run. Most leases you see in the paper, new Jags for like 330 a month, have tons of restrictions, usually LOW miles, like 10K-12K a year, you can't do any mods, and you end up paying a lot more on insurance. Plus after 5 years, one can own the car outright as opposed to having to buy/lease another one
07-23-2002, 11:53 PM
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I don't see how you can make a lease vs buy decision without knowing the residual value that Nissan will set for the 350z.
High residual = low payments
Low residual = higher payments
If you are using your Z for business, then you will also need to factor in the tax consequences/savings.
But you need the residual value to run it all through your calculator.
JMO
High residual = low payments
Low residual = higher payments
If you are using your Z for business, then you will also need to factor in the tax consequences/savings.
But you need the residual value to run it all through your calculator.
JMO
07-24-2002, 12:13 AM
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Residual value
Absolutely, we're missing a big piece of the puzzle here - residual value. As of now, I'm looking forward to buying the Z outright. This is a personal decision based on my job (sales) and the mileage restrictions. Also, I want something to show for my $ at the end of it all... 
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07-24-2002, 03:33 AM
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Re: Not so fast
Originally posted by c350z
Everythime I looked into leasing it will always cost you more in the long run if you end up purchasing the vehicle at the end of the lease.
You also own nothing and have nothing to show for your $20K of lease payments at the end of your agreement. Also have limited miles. Plus you have to carry more comprehensive car insurance.
The advantages of leasing is you can get cheaper monthly payments, you get a new car every few years and you hopefully don't have any problems to fix.
When purchasing a vehicle, you get higher payments, but you own it when your done,also it cost less then leasing it and buying it at the end of the lease. The disadvantages of buying...you maybe upside down if you trade in early on another vehicle.
This is my own opinion when I have looked into it.
Everythime I looked into leasing it will always cost you more in the long run if you end up purchasing the vehicle at the end of the lease.
You also own nothing and have nothing to show for your $20K of lease payments at the end of your agreement. Also have limited miles. Plus you have to carry more comprehensive car insurance.
The advantages of leasing is you can get cheaper monthly payments, you get a new car every few years and you hopefully don't have any problems to fix.
When purchasing a vehicle, you get higher payments, but you own it when your done,also it cost less then leasing it and buying it at the end of the lease. The disadvantages of buying...you maybe upside down if you trade in early on another vehicle.
This is my own opinion when I have looked into it.
Yes, leases, if you keep the vehicle, will cost you more, as you pay the interest for the lease, and potentially, interest to finance the residual value.
Limited miles only hurt you if you turn the car back in. If you buy the car, or trade the car in, the mileage is irrelevant.
My experience (and it sounds like it is similar to yours) is that it takes longer to own a leased vehicle. At the end of the process, you do have your car to show for everything.
Here is a big plus for leasing:
If you get to the end, and your residual value is way overpriced for the vehicle, you have two options: 1) turn the car in and don't lose the value, and 2) renegotiate with the lease holder. They typically will negotiate.
Todd
07-24-2002, 03:39 AM
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Originally posted by cash1
I don't see how you can make a lease vs buy decision without knowing the residual value that Nissan will set for the 350z.
High residual = low payments
Low residual = higher payments
If you are using your Z for business, then you will also need to factor in the tax consequences/savings.
But you need the residual value to run it all through your calculator.
JMO
I don't see how you can make a lease vs buy decision without knowing the residual value that Nissan will set for the 350z.
High residual = low payments
Low residual = higher payments
If you are using your Z for business, then you will also need to factor in the tax consequences/savings.
But you need the residual value to run it all through your calculator.
JMO
The payments are always lower leasing versus purchasing.
Given that:
if the residual is high, then this means the payements are lower, and I have an option of renegotiating the residual if it is too high at the end. If it is higher, then I will be paying less interest over the term, so it doesn't hurt me either.
if the residual is low, then the interest will be higher over the term, and I will have less to pay off in the end. I will get a lower payment, and a smaller amount to refinance if I keep the car.
Todd
07-24-2002, 03:40 AM
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BTW,
I think purchasing is awesome. I think leasing is awesome.
In the end, it is how comfortable you feel about either. Remember, whether you lease or purchase, you don't own the car until all is done. (In the case of lease, "done" is refinancing in addition to the lease).
Todd
I think purchasing is awesome. I think leasing is awesome.
In the end, it is how comfortable you feel about either. Remember, whether you lease or purchase, you don't own the car until all is done. (In the case of lease, "done" is refinancing in addition to the lease).
Todd
07-24-2002, 04:05 AM
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Either way, the car ends up costing close to the same price. I purchased my 2001 Audi A4 at 7%. I had to put a good chunk down, and the payments were still sky high. I traded the car in for a 2002 A4 3.0 fully loaded. I leased this time because the lease rates at the time were incredible! The money factor was .0008, which is equivalent to 1.92%. The residual was also pretty good. So basically I was able to put down nothing except first months payment, and the payments were very low. I think both options depend on the individual. Mileage restrictions don't concern me since I will buy the car at the end of the lease. Most financial institutions will even negotiate the lease buyout. That way, you can then sell the car and even make a profit if the car holds its value. I will hopefully lease the Z if the lease figures are pretty decent. If not, I will look for a good low interest rate loan. The thing to remeber with leasing is two factors: The residual, and the money factor. If these are favorable, then leasing can be an incredible value.
07-24-2002, 04:41 AM
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Originally posted by mattyZ
I will hopefully lease the Z if the lease figures are pretty decent. If not, I will look for a good low interest rate loan. The thing to remeber with leasing is two factors: The residual, and the money factor. If these are favorable, then leasing can be an incredible value.
I will hopefully lease the Z if the lease figures are pretty decent. If not, I will look for a good low interest rate loan. The thing to remeber with leasing is two factors: The residual, and the money factor. If these are favorable, then leasing can be an incredible value.
Its amazing how many people I have talked with, that don't understand leasing, but sign a lease. They walk out of a dealership with a lease, but with terms that sound more like a buy, while the dealer is laughing all the way to the bank.
Anybody that is new to leasing, make sure you do your homework and understand how a lease works and what the terminolgy means - before you sign the papers. Otherwise buy.
07-24-2002, 05:42 AM
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for me, leasing may be a better option. I like the fact that, at least in Georgia, you dont pay sales tax on the entire car, just the payments. If you saw my list in the thread entitled "What are you trading in", I go through cars, and have NEVER paid off an auto loan. For me, the only drawback for a 3 year lease is having to keep a car for 3 years. I might do a 2 year, and after the Z, my new strategy will be to look for leases to take over with 1 - 1 1/2 years remaining, that way I can continually be switching cars with minimal out of pocket expense.
Oh yeah, one other BIG advantage to leasing: You can negotiate the buyout at lease end if you want to keep it. This way, you could still wind up paying less than MSRP for your new Z!
Oh yeah, one other BIG advantage to leasing: You can negotiate the buyout at lease end if you want to keep it. This way, you could still wind up paying less than MSRP for your new Z!
07-24-2002, 06:33 AM
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I traded in my 1995 300zxTT for a MB SLK230 LE in 2000. Anticipating a 2002 mid-year release for the 350z, I leased the SLK for 2 years. Residual was 72%.
My 2 year lease payment was only slightly higher than the payment on the 72 month note for the Z, and I only paid 36k for the Z new, as Nissan had 5k factory dealer rebates going at the time.
But 2 years is pretty short. There are a lot of costs to amoritize over only 24 months. In Texas you have to pay the full sales tax, and in many counties, personal property tax.
My 2 year lease payment was only slightly higher than the payment on the 72 month note for the Z, and I only paid 36k for the Z new, as Nissan had 5k factory dealer rebates going at the time.
But 2 years is pretty short. There are a lot of costs to amoritize over only 24 months. In Texas you have to pay the full sales tax, and in many counties, personal property tax.
07-24-2002, 06:39 AM
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Hmmm....
I have been thinking about this decision for awhile. In efforts to find the missing pieces I have asked my dealer, nna, and my regional office what the lease/finance info is. The only info I have so far is the following: Both the regional office and my dealer expect to have finance and lease information by the beginning of Aug. The rumor I have been told to watch for is a good 1-2 year lease rate with high residuals.
I have purchased and leased and both have worked out great and only ok before. Basically, the deciding factor on how my financing did always was a function of the sales price. As I like my agreed on price for my base model I am sure either would work fine.
Provided the lease cost and buy cost are within a few percent of each other, I tend to prefer the lease due to the opportunity cost associated with the higher payments of a loan purchase.
The best local bank loan rate I can find is 5.2% from my credit union (my bank is at 7%) for 60 months.
This means for my price of 27300, my buy payment is ~$480 with $2500 down (for 60 months) or $441 with $4500 down.
I estimate a 4 year lease payment of $340 with $2500 down or $290 with $4500 down.
The total cost with me owning the vehicle after buying is $31270 and $30950 for $2500 and $4500 down respectively.
The total cost with me owning the vehicle after leasing is $32900 and $32620 for $2500 and $4500 down respectively.
I made a few assumptions to get here but I expect the number to be close to these. This delta of between $1000 and $2000 between leasing and buying is pretty normal. But as I said earlier, the cost of money and added lease flexibility will probably make it worth it.
JMHO
MBEGuy
I have been thinking about this decision for awhile. In efforts to find the missing pieces I have asked my dealer, nna, and my regional office what the lease/finance info is. The only info I have so far is the following: Both the regional office and my dealer expect to have finance and lease information by the beginning of Aug. The rumor I have been told to watch for is a good 1-2 year lease rate with high residuals.
I have purchased and leased and both have worked out great and only ok before. Basically, the deciding factor on how my financing did always was a function of the sales price. As I like my agreed on price for my base model I am sure either would work fine.
Provided the lease cost and buy cost are within a few percent of each other, I tend to prefer the lease due to the opportunity cost associated with the higher payments of a loan purchase.
The best local bank loan rate I can find is 5.2% from my credit union (my bank is at 7%) for 60 months.
This means for my price of 27300, my buy payment is ~$480 with $2500 down (for 60 months) or $441 with $4500 down.
I estimate a 4 year lease payment of $340 with $2500 down or $290 with $4500 down.
The total cost with me owning the vehicle after buying is $31270 and $30950 for $2500 and $4500 down respectively.
The total cost with me owning the vehicle after leasing is $32900 and $32620 for $2500 and $4500 down respectively.
I made a few assumptions to get here but I expect the number to be close to these. This delta of between $1000 and $2000 between leasing and buying is pretty normal. But as I said earlier, the cost of money and added lease flexibility will probably make it worth it.
JMHO
MBEGuy
07-26-2002, 07:41 AM
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Anyone looking for a great rate
Found a lender www.peoplefirst.com who will loan on this car ($30,000 in my case) a rate of 4.75% with excellent credit for 36 mos. They provide you with a "Blank Check" for you to effectively pay to the dealer as if it were a bank check. Check it out, it seem unique. I'm considering doing it if the cash I have set aside ($40K) can at some time in the near future get a better rate than 4.75%.
07-26-2002, 07:59 AM
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Not all dealers negotiate the buy out price. If they did then everyone would lease and save money in the long run. Also, I have had three diff. friends that each got the shaft by leasing. But if leasing works for you great, It just has never worked out better then buying for me.
07-26-2002, 09:27 PM
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Just Closed @ 4.75%
Just closed on a loan to purchase $30,000 for 36 mos @4.75%.
www.peoplefirst.com
very simple procedure
walk into dealer with a blank check
fill in amount
Drive away.''
Check it out, for those into buying.
www.peoplefirst.com
very simple procedure
walk into dealer with a blank check
fill in amount
Drive away.''
Check it out, for those into buying.