i8acobra

iTrader: (6)

You can't sell a leased car because it's not yours. You're just renting it. Selling a leased car you be like trying to sell a house you rent. You need to buy out the lease (pay the remaining payments in a lump sum) and then pay the buyout before you can sell.

visionboy

iTrader: (7)

if that's the case, the same can be said for selling a car you're financing. the car is not yours till you make all the payments. just cause you purchased a car doesn't mean it's technically yours, unless you paid for all of it up front.

bangbang001

Not true.

You only have to make all the lease payments, then you can sell the car before the end of the lease. As long as the bank gets the lesase end buy out.

I leased a volvo for my wife, 1 month before the lease was up, I sold it to another couple. I paid the last month lease payment, got the final price to buy it from the leasing company and then sold it to another couple and made about 950.00 off the deal. The couples bank sent the leasing company a check for the lease end buy out price and gave me a check for the difference.

kcobean

iTrader: (2)

That's interesting. Do you suppose the same system would have worked if you had, say 6 months left on the lease?

97supratt

iTrader: (61)

It actually does work, a lot of people buy vehicles that are leased by others. They just have to be approved by a leasing company, and make the payments thereafter.

i8acobra

iTrader: (6)

When you purchase a vehicle your name is on the title as the owner, the bank is on as the leinholder. Yes, the car is technically yours. The bank is not legally recognized as the owner. When you lease, the bank is on the title as the owner until you pay it off.

MSOsr

iTrader: (5)

Some people lease just because they want a new car every 3 years. I did it from 1992 until I got my Z in Oct. of 2002. When I pre-ordered, I looked at the lease rate and residual value and compared it to the interest rate I was able to get. As it turned out, the residual value after 36 months was about $5,000 more than the buyout would have been by buying the car. The payment differential was about $3000 over that time frame (cheaper for the lease), so I decided to buy.

I'm glad I did. I've now decided to keep the car for maybe 6 or 7 years, and for the first time in my life, I modified my car. Now that I have, I don't think I'll ever keep a car stock for the rest of my life. It's so cool having a car that no one else has. As my son said last Saturday, "I've never been in a car that gets more eye-f**ked than yours, Dad" (he's 20 years old). All I have is a Kaminari body kit, Data Systems spoiler, some CF trim, with HRE 445R wheels.

What a great feeling to have a one-off car!

Mike (still too wusss to play with the engine, other than cosmetically)

visionboy

iTrader: (7)

thanks, i did not know that. so it may be technically yours, but what you can do with it is similar to if you had a lease car, as far as modding, wanting to sell it. For modding lease cars, you would have to remove all the mods at lease end.For modding purchase cars, it would be wiser to remove the mods before trade in. As far as selling, you have to buy out the lease OR the purchased car before you can sell, or have someone take over payments. In essence, they work very similar.

streetracer

iTrader: (1)

If you take that $18,000 and invest it in a mutual fund with an 8% interest rate, you will have accumulated a wealth of Final Savings Balance:$ 132,123.17 ( ) over a 25 year period. I don't know how old you are to have 25 years for retirement, but I'll take 132k over some few grands of interests anyday.

kevinbonds

I dont think it matters wheather you are leasing or buying, the argument should be should you put money into a car that you do not have the title on. Would it not be better to use that money to pay down the car. In my case I leased mine in early 04. Lease the car at 300 over invoice which was unheard of at the time but my company leased 4 cars that day. I leased the Z cause the company was paying for it. WHen you lease the car you can negotiate the same as if you are buying. You just go into the dealer and dont answer any questions. Just say I want that car there what i want to pay. It's all the same to the dealer they either get paid by the leasing company or the bank same difference. Anyway the lease was 410 with tax with nothing down and no fees. I think I left the lot for like 750 bucks including the first payment. Any way my buyout is $16200. The car cost 30,000 even. I am planning on buying the car so eiahter way to me it did not make a difference. But sometimes the lease buyout works out better then financing a car. so will have paid $30960, once the car is bought, well technically I havent made anypayments on it for the last three years but its still that same if you buy or lease you dont have the tittle so it doenst really matter.
One last thing, in my opinion what someone does with there money is there decision lets jsut be thankfull that most us that drive Z's are not worried about where there next meal is coming from!

i8acobra

iTrader: (6)

If he did that, he'd be earning 8% on the $18,000 invested, but paying 9% on the $18,000 borrowed. He'd be losing 1% over the term of the loan. Not very sound financial advice. Better off using the money as a down payment.

dutchboy350Z

iTrader: (5)

I'm already putting enough into my 401(k) and my company basically doubles what I put into it. That said, I definitely wouldn't advise everyone to go the route I'm going. But if you can afford to put half down it will save you thousands in financed interest.

streetracer

iTrader: (1)

I'm not sure I follow ya. If you think so, be my guest. There is always real estate also to invest in.

i8acobra

iTrader: (6)

I have many investments.... real estate, stocks, etc...

If he didn't put down the $18,000 and invested it like you suggest, he'd have to borrow that $18,000 to buy the Z, correct (he'd have to borrow $34,650 instead of $16,650)? Borrowing the $18,000 against the Z would cost him more in interest paid than what he would make in interest if it had been invested for the same amount of time.

dutchboy350Z

iTrader: (5)

sounds about right to me. I would also add that borrowing $34k+ instead of $16k+ would have more of an adverse affect on my credit score. Granted it's an "installment" type of credit and not a "revolving" one, but it still wouldn't look good.

streetracer

iTrader: (1)

He would be loosing in interests, but he deducts from the income tax some amount and he would be gaining compound interests from the investment. My guess is both ways are financialy sound. Just opinions. I know brokers who buy cars new and some who pay for used cars cash. Hell, both of ny sisters are brokers and work in UBS Paine Webber. One is a commercial brokers and the other is doing something else. But yes, what you say is true, good point by the way.

kcobean

iTrader: (2)

I ran the numbers for ya..

$18,000 invested at 8% will become $26,448 after 5 years, making the profit on the investment $8,448.

$18,000 financed on a 9% simple-interest car loan 5 years would be an approximate monthly payment of $374/month. That total is $22,440, or roughly $4,440 in interest over 5 years. By investing the $18K he has in cash and then borrowing the additional 18K needed to buy the car, he'd still have made $4,008 dollars more on his investment than he payed in interest on the loan.....The reason this works is because investment interest is not calculated the same as a simple interest car loan is.

streetracer

iTrader: (1)

Thanks Cobean. That about concludes my point. Good info.

dutchboy350Z

iTrader: (5)

---> slaps self in forehead .... forgot about paying against the principal ... But even if I was paying interest only on the loan (pretty sure they don't exist on cars) investing it would still make a couple hundred more. After 5 years of interest only loan @ 9%: $8,100. Investing would still give me as Kelly calculated: $8,448. So I'd still make $348. I guess my credit rating point is still valid.

streetracer

iTrader: (1)

Don't really understand what you just said, but I'm with you Dutch.