Leasing my first car.

[MadHatter]

You know what's cooler than having a new car every three years? Not having a fugging car payment at all.

I leased a 350z convertible when I graduated. And while I looked like a badass and probably dropped some extra undies because of it, it was a complete waste of money. I will never lease a car again.

It really depends on the interest rate that you can get as part of the lease.  If the rate is lower than what you can earn in your investment portfolio, having the lease payment will actually save you money in the long run.

[Dex]

It really depends on the interest rate that you can get as part of the lease. If the rate is lower than what you can earn in your investment portfolio, having the lease payment will actually save you money in the long run.

I know 0 about investing. Where should I start?

[Ja Rhule]

I know 0 about investing. Where should I start?

 

Give me your money.  I promise a hafty 10% ROI.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Welcome to my ponzi scheme.

[h0llywood]

Because you are an idiot. There's not any difference in driving a new car 3 years or 5 years. A 5 year old vehicle with 60-70k miles will look & run just as good as a new vehicle. Trading in your vehicle every 5 years is a waste of money, 3 is retardedly stupid. Why so set in every "3" years? Let me guess, you're in your mid-20s & just got your first big boy job? Now you want to blow every last penny you can financially afford on a new, expensive vehicle?

When I was 24 I leased a new $50k Corvette. My twin brother bought a brand new VW Golf Diesel. After 4 years I was out $8,500 & owned nothing. My brother was out $18,000 & owned a 50mpg VW that was still worth $13,000.

It's cheaper to buy a vehicle every 5 years than to lease one every 3 years. If the vehicle you want "can't be paid off in 5 years" then newsflash, it's more vehicle than you can afford. If you think there's a difference in a 3 year old vehicle & 5 year vehicle that has been properly taken care of, you're a fool & dealerships will see you coming from a mile away.

My father in law owns a Nissan dealership in Florida. He doesn't make money off vehicle sales, he makes money off leases.

Bolded part is the key. I hope you're putting around 20% of your earnings into savings & another 20% into a 401k, Roth, etc? Otherwise you're just like every other foolish 20-something year old blowing money on a useless car you really can't afford.

So your main argument is that Dex is an idiot because he has different tastes than you.

[Ja Rhule]

So your main argument is that Dex is an idiot because he has different tastes than you.

 

Murica!

[ZeroZeroSeven]

I used to work for Hendrick Automotive Group in their Finance department.  So, I had a lot of experience with the pros and cons of leasing.

 

The con is definitely that you are "renting" the car for a specified period of time.

 

However, leasing is a great option for specific types of buyers.

 

It allow you to get into a more expensive car than buying would....that is one pro, but not the main one.

 

If you are the kind of person who does not drive a ton and who wants a new car every 3-4 years, then leasing is a GREAT option for you.  Your payment is lower and in 3 years, you are often lucky to break enven on a trade-in (based on what you owe).

 

Me personally, I do not purchase expensive cars.  However, I always get a new car every 4 years or so.  So, having a car payment (with very low interest) will always be part of my monthly budget.

 

Can you explain to me why every Hendrick dealer in the CLT area seems to love to add aftermarket items (window tint, nitrogen tires, etc.) and mark the car up $1k-$2k?  I've heard the "well everybody does it" and quite frankly it's BS.

[ZeroZeroSeven]

I'll be leasing my first car in a couple weeks. No more Daewoo Lanos thank the lawd. Any help and advice would be greatly appreciated.

I'm looking at the 2015 Subaru Legacy 2.5i limited but I may have to go for the premium to save some money. AWD and 36 MPG highway is nice.

 

Fine choice for a car.  The 2015's seem really nice.  I'm probably not telling you anything you don't know, but watch the miles, keep it in good condition and you'll be a happy Subaru leaser.  

 

There's a couple of things I would warn about:

 

1.) Watch for them trying to play with the lease factor (interest rate).  If you multiply the lease factor by 2400 you'll convert it to the interest rate (i.e. a .00250 is a 6% interest rate).  I had a bozo salesman trying to tell me that a lease is better than buying because the lease factor was a lower number.

 

2.) Make sure you're still getting the car for a reasonable price.  They'll blow up the price of the car in a heartbeat if they can.  Keep an eye on the price of the car and make sure it's pricing is reasonable and that the dealer isn't trying to screw you with add-ons, unnecessary fees.  Do your research have a price range, trade value, etc. in mind and stick to your guns.

 

3.) Shop your business around.  Car dealers hate it, but it only benefits you.  You won't get the best deal from the first place you try to do business with, but if you're persistent and can pit multiple dealers against each other, you'll get a good price on the car.  

[Dex]

Fine choice for a car. The 2015's seem really nice. I'm probably not telling you anything you don't know, but watch the miles, keep it in good condition and you'll be a happy Subaru leaser.

There's a couple of things I would warn about:

1.) Watch for them trying to play with the lease factor (interest rate). If you multiply the lease factor by 2400 you'll convert it to the interest rate (i.e. a .00250 is a 6% interest rate). I had a bozo salesman trying to tell me that a lease is better than buying because the lease factor was a lower number.

2.) Make sure you're still getting the car for a reasonable price. They'll blow up the price of the car in a heartbeat if they can. Keep an eye on the price of the car and make sure it's pricing is reasonable and that the dealer isn't trying to screw you with add-ons, unnecessary fees. Do your research have a price range, trade value, etc. in mind and stick to your guns.

3.) Shop your business around. Car dealers hate it, but it only benefits you. You won't get the best deal from the first place you try to do business with, but if you're persistent and can pit multiple dealers against each other, you'll get a good price on the car.

This helped tremendously thank you!

[ZeroZeroSeven]

This helped tremendously thank you!

 

No problem.  The key to remember is you're in the driver's seat no matter what.  It's your money and they want it.  If you don't like what's on the table or feel comfortable with it, start walking.  

[heel31ok]

I'll be leasing my first car in a couple weeks. No more Daewoo Lanos thank the lawd. Any help and advice would be greatly appreciated.

I'm looking at the 2015 Subaru Legacy 2.5i limited but I may have to go for the premium to save some money. AWD and 36 MPG highway is nice.

 

Fleece.

[philp]

It is an excellent car. Unfortunately like you said it's out of my price range. Also I'll die before I buy a wagon.

 

Had a jeep wrangler for a few years.  This was absolutely the favortite out of the cars I've owned, but finally decided that gas was getting out of control.  Decided to buy a used Forester.  Best decision I ever made.  I love the AWD (I was able to pick people up for work that had small FWD cars stuck in their driveways.  it only snows a few times a year here, but still).  For me, getting a hatchback with folding seats was a must because I have a 100 lb german shepherd.  I'm not the biggest fan of the newer Foresters, that's why I got one a few years older.  Awesome car though.

[Luck's neckbeard]

Had a jeep wrangler for a few years. This was absolutely the favortite out of the cars I've owned, but finally decided that gas was getting out of control. Decided to buy a used Forester. Best decision I ever made. I love the AWD (I was able to pick people up for work that had small FWD cars stuck in their driveways. it only snows a few times a year here, but still). For me, getting a hatchback with folding seats was a must because I have a 100 lb german shepherd. I'm not the biggest fan of the newer Foresters, that's why I got one a few years older. Awesome car though.

Your GSD is obese.

[MadHatter]

Can you explain to me why every Hendrick dealer in the CLT area seems to love to add aftermarket items (window tint, nitrogen tires, etc.) and mark the car up $1k-$2k? I've heard the "well everybody does it" and quite frankly it's BS.

Because they make about 70% markup on those items.

[PandaPancake]

Because they make about 70% markup on those items.

About the same amount of nitrogen that's in the atmosphere. Crazy how that works