PharCyde

Researching another option it looks like leasing my Roadster could be the most affordable right now.

dchengmd posted a lease site under another thread, leasecompare.com, and after checking it out my possible payments would be less than $450 a month.

So my questions to those who lease are:

1. Why did you choose to lease instead of buy?

2. Did you buy the car at the end of your lease?

3. Are you able to modify your car? If so what are you allowed to do? Body kits, different radio, etc.

4. Did anything happen during your lease where had you bought the car things would have been different?

5. Have you ever gone over your mileage limit?

6. If applicable - If you've had to back out of a lease what were the penalties imposed upon you by the leasing company?

7. If applicable - after some time did you regret leasing instead of buying? or did you regret buying instead of leasing?


-Aaron

2003z

iTrader: (7)

[QUOTE]Originally posted by PharCyde
I previously leased a Saab 9-3 and currently lease our G35c. Most of the following applies to the Saab since its completed
So my questions to those who lease are:

1. Why did you choose to lease instead of buy?
Saab - special incentive lease, 299/mo
Saab/G35c - I get bored with cars pretty quickly, a lease forces me to keep it for 3 years, instead of losing my a$$ on the trade-in/private sale after a year.
2. Did you buy the car at the end of your lease?
No, just gave it back to Saab and walked away

3. Are you able to modify your car? If so what are you allowed to do? Body kits, different radio, etc.
You can do any mod you want, as long as its reversible and you keep the stock parts to put back in. On the saab I added an amp and changed the speakers. Also tinted windows, which is considered damage under some leases, but they didnt care.

4. Did anything happen during your lease where had you bought the car things would have been different?
Yes, After 1 year, the car had a wholesale value equal to the 3 year residual. I really would have lost my A$$ had I purchased it.


5. Have you ever gone over your mileage limit?
No, we have 3 cars and 2 drivers

6. If applicable - If you've had to back out of a lease what were the penalties imposed upon you by the leasing company?
I turned the Saab in 3 months early, fully expecting to pay the full amount of the last 3 payments, but I got a small credit, around 100. Usually, they make you pay all remaining payments, I think.

7. If applicable - after some time did you regret leasing instead of buying? or did you regret buying instead of leasing?
I wish I discovered leasing sooner.

Other plusses:
If you decide to lease and keep the car at the end, you can negotiate a lower buyout price, more so if you lease through a 3rd party. example: Saab, residual 14000, on the saab boards, people who leased through chase bought theirs for as low as 10500 and as much as 13000. People who leased through saab financial only got about 1000-1500 off. Chase, and other 3rd party leasors don't want the car back and will take less for it.

If the car holds its value better than expected, you can trade it in and buyout the lease, coming out a little ahead. ex. 350z roadster, 20000 residual (just making up numbers here), trade in 21000. You can trade it in, have the dealer pay it off and get 1000 off the new car.

If it doesnt hold its value, lets keep the same roadster, but now has a trade in of 19000, instead of 21000. You just give it back and walk away, then buy the new car.

In all cases, the depreciation risk is with the leasor, not the lessee.

Also, sales tax. If your state doesn't credit you on sales tax of the trade in portion, you save big. On a purchase, you pay it all up front. In a lease, you pay it monthly on top of the payment.


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dchengmd

Leasecompare rocks. Their rates are excellent, and they are very responsive to phone calls. Haven't had a problem with them so far.

I chose to lease because I like driving new cars and I anticipate that in 3 years when my lease is up, I will probably end up buying or leasing the next best thing around in cars. Whether that's a Porsche, Honda/Acura HSC, Ferrari, or another Z, we'll have to see.

Also, monthly lease payments will ALWAYS be lower than auto loan payments with the same term, and interest rate. ALWAYS. For me, it's easier to lease expensive cars than buy them.

Not planning to. If I'm under my mileage limit (and all indications are that I will be), I may sell the car to a third party myself, pay the residual to the leasing company, and keep the profit.

You are allowed to make minor modifications without any recourse (i.e., window tint, antenna), but you will have to ask your leasing company for specifics. Some won't mind if you upgrade the audio system, and some won't even mind if you install some exterior modifications like a rear spoiler. However, the general feeling is that you should return the car in the state you bought it (in other words, stock) when the lease is up and you don't intend to buy it. Otherwise you may be stuck with extra fees to pay.

So far, not really. The only thing I can think of is that I may have been a little more liberal with the mods. For now, my car is fairly stock, more or less.

I try to keep close tabs on my mileage every month. I have a 15000 mile/year lease, so I have 45000 miles to use. That's a little more than 1000 miles a month, and in the 6-7 months I've had the car I've managed to bank a little more than 1000 surplus miles.

Can't help you here. However, I've heard that the penalty ranges from several hundred to several thousand dollars. Better to sell the lease off to someone who is willing to pick it up (like on leasetrade.com).

[QUOTE]7. If applicable - after some time did you regret leasing instead of buying? or did you regret buying instead of leasing?[QUOTE]
No regrets at all - I love leasing. I'm able to drive a relatively new car every few years, and I never have to worry about major out of warranty repairs. When I get around to leasing a Ferrari or a Porsche, I don't have to worry as much about reliability.

The way I see it, there's not much difference between leasing and buying if you only intend to keep the car for 3-5 years.

Example:

I lease a car for 3 years with a cap cost of $30k and a residual of $20k, at an interest rate of 4%. My net expense is $10000 + 4% interest over 3 years.

I finance a car costing $30k at 4% and sell it after 3 years for $20k. My net expense is roughly the same as leasing.

dchengmd

Ah, yes. Forgot about this advantage as well - you only pay sales tax on the amount of money you pay for the lease, not the entire value of the car. So if your $30k car depreciates $10k over the lease period, you're only paying sales tax on $10000, not $30000. More money saved there.

Don't get me wrong, leasing isn't for everyone. For me, though, the Z was my first lease and I love it.