PimpShiFus

Which one is better assuming that if leasing, I will buy the car at the end of the lease. Which option will cost me more? or will the lease buyout price be equal to purchase price - monthly lease payment x 36months?

anjana

in a lease, u have less leeway to negotiate the price of the car, so u 'd be paying pretty much the sticker amount (correct me if i'm wrong). that's why imo its better to buy the car then and get a few thousand off the total price. leasing is really just made for people who want to drive a new car every couple years or want lower payments and don't mind paying full cost at the end of the lease.

350zdanny

IMO, you are not really correct there. I don't have extensive experience, but I did get my Z just above invoice and I leased to buy. What you have to do is negoitate the price of the car before you decide whether to lease or buy. Dealers don't care. They get their money and kickbacks either way.

I think generally if you're gonna buy it you may as well just buy it, but there is one situation where this does not hold. When you are about to return a lease, the bank you lease from does NOT want the car back. They would rather sell it to you then at auction. Sometimes they are willing to cut the buyout by as much as 50%!!! My boss lease a Grand Cherokee and the buyout was 21k. He bought it for 12. I'm not saying that will always happen, but it is a strong possibility.

Another great think about leasing (and this is part of the reason you pay a little extra in financing charges) is that you are buying an option. You are buying an option to give the car back, no strings attached. This is good if you get a borderline lemon, or you crashed the car and bent the frame, or it has excessive wear and tear, etc. It basically gives you an out that doesn't involve screwing the next owner of the car.

I hope this writeup helps you decide a little bit. My last recommendation would be to read up on leases and make sure you fully understand everything about them so you can go over the contract and get a good deal. They are very confusing and dealers can take advantage of ignorant buyers. Good luck!

Dan

ihiustler

i also agree with 350zdanny! i am leasing to buy and i like this option b/c my payments are definitely a lot lower. Being in school this helps out a lot. also if i drive the car for 3 yr or 4 yr lease and dont like it u can give it right back or if u like it then buy it or refinance the residual. The only bad thing is that if u decide to give it back in end is that u have no equity built up, but if u buy it out then u do have equity in it. everybody is different and u r the only one that can decide.

PimpShiFus

My main concern is the lease buyout price, or the residual value. What is that number generally for the 350Z? or i guess what would be a good number for 36month lease, 12000 a year, no downpayment, base or enthusiate or whatever....... Thanks a bunch u guys

2003z

iTrader: (7)

THe residual is a fixed percentage of either the sticker or negotiated price, not sure which one. Danny's right though, you can get a discount at the end also, just try to lease through a bank and not nissan financial, the dealer can hook you up on that (easy for me to say, leasing the G through infiniti!)

ANother advantage of a lease is you pay sales tax on your monthly payments and not the whole purchase price at signing.

FlyingToaster

You all have some correct information in your replies, but for more accurate picture about leasing vs. buying, I suggest you visit www.leasecompare.com. Or Motleyfool.com also has good information and worksheets.

Leasing is quite complicated financial calculations and almost every bank or financing entity has couple things different that the other guy; need to be careful. I have been leasing for the past 8 years, and I have been through the good and the bad

del105

iTrader: (4)

How much is sales tax where you live? Are you going to pay sales tax up front or roll it in?

When you go to lease a car do not tell the sales person you want to lease until after you have negociated a price. Expect the residual value of the car to be around 52% after 3 years. so about $14,000 plus sales tax, tag, title and interest your looking at about 490-520 a month. with about

PimpShiFus

Oh, I didn't know people can lease cars through banks. Do I go to the bank for that? or still the dealership?