superstuddc27

iTrader: (1)

Okay after all this time on the 350z forum, i learned so much. (especially on financing and all that) but now, a situation has come up .... which is getting my car (not a Z) totaled and only getting 4000 bucks for it? so i guess i have two options. ONE, is to wait till sometime next year (2005, God knows when) or TWO, a) lease a base 350z for 36months, b) downpay what i have which is $4500, c) use my dad's good credit to get around 4% financing.

The good thing about leasing is that i have 3 years to "test" the car and after the 3 years, i have the choice to decide if a 2 seater is still practical. The BAD thing is, however, unless i decide to keep the car, it won't be "MY car" and i won't be able to mod it. (hehe im like 80% sure i'll keep it though. afterall, it's a Z!) and also another positive thing about the leasing option, is that in 2 years, we're gonna sell our house. It's been 3 months or so since this house has been built and the price has rose approx. $200,000. So if i lease, then i have the option of keeping my payments every month low (as in lower than $300) and then when the "house-profit" comes in, i can pay the rest off and buy the car.

Now, PURCHASING the car.. the good thing would be, "It's my car! No one can touch it!!" But the bad thing, gotta wait til God knows when.

So..... im really hoping that someone can give me some advice, especially people that are leasing because i've heard several rumors about how leasing is not worth it, and how you end up paying more than you would actually BUYING the car.

Also, im new to leasing. Me, or my family has never leased a car. So all that "Residual value" stuff and money factor or whatever is completely nonsense to me. Someone fill me in and recommend something?

here's something i've calculated on the "car lease calculator" on www.leaseguide.com/calc.htm

NISSAN 350z BASE model (showing everything it asked me) on a 36month lease
Negotiated Price: $25,500

Down pay (cap cost reduction) : $4500

Adjusted cap cost: $21,000 ( i have no idea what this is.. im guessing it's the cost AFTER you subtract the downpay)

Residual Value: $13,413

Moneyfactor/APR: .00167 or 4%
Terms : 36 months

Sales Tax: 8.25%
= Monthly payment of $268.22 + $22.13 tax

So.... that's it. This is a long post, but i need help and im sure there are plenty of people out there that i can learn a lot from. What im thinking is, i pay the 200something bucks everymonth and after 3 years, i finance the $13,413 (residual value) correct...? Thanks in advance.

ZRA

Leasing generally costs more then outright buying. After 3 years you would have to refinance the balance, and probably ay a higher interest rate. If you could pay off the balance after 3 years it would probably be worth it. Leasing isn't for everyone. Good luck on your plans. Hope everything works out for you. ZRA.

The Brickyard Rat

iTrader: (1)

Leasing is more hassle than its worth; why not just put the $4000 down & buy it? Rates are really good right now.

By the way, unless you roll your "profit" from selling the house into another (more expensive) house, you have to pay taxes on the gain (profit). You would still make money but not nearly as much as your figuring right now.

superstuddc27

iTrader: (1)

well... this is our primary house and after two years of living here, THEN we're clear of the 15% tax on selling it. that's why we're waiting two years.

but yeah thanks everyone. i decided NOT to lease it as it is not worth it. but i did learn something so that's a plus.