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Thoughts on leases?

Discussion in 'Other Vehicle Discussions' started by totalburnout, May 31, 2005.

  1. totalburnout

    totalburnout Well-Known Member VIP

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    What are your thoughts on leases?


    I'm a young guy, 20, with zero points on my license. Part time job that pays well and have banked about 9k in savings.

    I'm really interested in a WRX and was thinking of leasing. The thing that keeps me from leasing/buying is the insurance payment. I can handle the car payment alone but I have a feeling the insurance payment will triple and be more than a car payment.


    What are your thoughts on the pros/cons of leasing?
     
  2. SlushboxTeggy

    SlushboxTeggy It's only stupid if it doesn't work VIP

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    i dont really like it. you drive a car for a set amount of time, while making payments, then at the end they take it away and all you have is less money. but thats just my opinion, if you really want the wrx and dont think you would be able to finance then go for it.
     
  3. totalburnout

    totalburnout Well-Known Member VIP

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    I'm not sure which way would be cheaper.


    A $300-400 a month car payment is no problem, but start throwing in a $300 insurance payment, credit card bill, etc., etc. then i might be tighter than I want to be living right now. Right now I'm more than comfortable and don't ever have to dip into savings.
     
  4. jamesA

    jamesA Well known pissed off telephone guy VIP

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    Well by leasing it at the end of your term you'll be able to trade it for a newer WRX, so modifying it would be worthless.

    I'd personally get a loan through my bank and make payments to them. (like I did on the Si)

    That way it's basically your car (title is in the banks name until the loan is paid back) and you can mod it.

    Just depends on which way you want to go, but I'm sure you could get a better interest rate through your bank than a dealer ever would considering your age and credit rating (or lack there of).
     
  5. Seany-izzle

    Seany-izzle New Member

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    ^^ he said it. you can either trade it in for a newer model, or you can pay a lumps sum of money and keep it. Depending on the situation and the kind of car you want then leasing would be a pretty good choice. Like me, in the next 1-2 years ill be in the market for a new car, since i want an suv, i wont modify it, and i know i wont be driving more than 10-12k miles a year, leasing is the best (aka cheapest) option.
     
  6. micah

    micah Senior Member

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    you could always put like 7 of your 9k as a downpayment then keep the 2k as a buffer for your insurance.

    like pay 6 months up front then save as much as you can before you have to repay and then pay another 6 months.

    as long as you actually kept that 2k as a buffer, didnt spend it on other shit, then you should be fine even if your insurance did jack way up.
    keep saving some every month also like you were still paying your normal insurance that way the 2k should last you long enough to pay the car off.
     
  7. 92civicb18b1

    92civicb18b1 The Trisexual

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    I wouldn't lease a car unless it's for a business...

    you'd just be "renting" the car by leasing, you'd NEVER own it. it would sit in your driveway, you'd drive it, but your going to have to give it up at some point.


    I'm in the market for a newer car also. My choice is leaning towards an Audi A4.

    Trading in my peice for a partial DP plus some cash, then financing the extra 4-5k.
     
  8. micah

    micah Senior Member

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    you could always lease with the option to buy. all the money you paid them for the lease would go towards the car at the end of the term if you decided to keep it.
     
  9. brc80

    brc80 Senior Member

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    Thats what i did with my truck, when my lease term is over, i have the option to finance the remaing balence. Plus if your self employed you get to right it off.
     
  10. 92civicb18b1

    92civicb18b1 The Trisexual

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    but if you don't then all that money was pretty much a waste because you're not actually getting something at the end of the term. What you got was to pay for driving a car you wouldn't own.
     
  11. SlushboxTeggy

    SlushboxTeggy It's only stupid if it doesn't work VIP

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    never works out in your favor. if you buy it at the end of the lease then turn around and sell it you ussually dont even get what you paid. not even including all the lease payments. assholes down at cadillac did it to my grandparents a few times.
     
  12. pissedoffsol

    pissedoffsol RETIRED

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    signing a lease is like going into prison with a box of condoms. you're simply going to get fucked.

    you pay for 3 years, you give it back.
    then the dealer re-sells the car for whats its worth, and ends up making MORE on the car between your lease payments and the final selling price.

    leasing is like renting... only worse.

    the difference between a lease and a loan payment won't be much if you get a 5 year loan. 100/month tops on a wrx.

    2 more years, and then its paid off, instead of giving it back.

    shop around for insurance. don't do the online quote things... they are never accurate. call up some local brokers, sound intelligent, explain your perfect driving record.

    it may end up even being cheaper.

    other than the fact that i have full coverage on the sti, vs just liability on the hatch, my liability payment is LESS for the sti than it is for the civic, and the sti is labeled as my commuter car.
    basically, its a safer car, with better brakes, 4 doors, abs, and 12312312312 fucking air bags.
     
  13. totalburnout

    totalburnout Well-Known Member VIP

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    To buy a WRX would only been like a 100/month payment?

    I haven't even begun to figure out the financing linguistics to know what it would come out to be.

    I'd be happy if I could do a 200/month car payment and 200/month insurance payment. As for insurance, I'm still under my parents insurance because it would have tripled to be under my own name. My insurance still isn't that cheap for what I drive and my driving record, infact its more than other people my age with points and 'sports cars' even though not one of the four people in my family have a point on insurance.
     
  14. asmallsol

    asmallsol Super Moderator

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    on some cars, leasing is great. One great example is the POS chrysler Pasifica were they were practically giving the car away at 199 a month for 24 months, which is cheaper then what you would pay if you bought the car. However, on non POS super mainstream cars, leasing sucks unless your a bussiness. Check out credit unions for the intrest rates they give out. As for insurance, from what I have heard is the insurance isn't as much as you would think. The STI is a diffrent story lol
     
  15. Battle Pope

    Battle Pope New Member

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    Yeah, I've heard insurance on a WRX is actually quite affordable.
     
  16. totalburnout

    totalburnout Well-Known Member VIP

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    This is totally hypothetical and depends on the area but since interest rates on loans for a new car are practically half that of a used car, what do you think I could get a left over new WRX for from the dealer? I'm in the Northeast area, specifically Northern New Jersey if anyone is familiar.

    If the car is around 24k, I put 6-7k down on it, stretch payment over 5 years thats $300 + interest on a car payment monthly.
     
  17. jamesA

    jamesA Well known pissed off telephone guy VIP

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    When I did some online quotes, (not entirely accurate I know) they said I'd pay 30 more a month for an 03 WRX over what I'm paying right now on the Si insurance wise for full coverage on my own through State Farm.
     
  18. Seany-izzle

    Seany-izzle New Member

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    wrx is still considered a family car with the whole four door thing. plus you get money taken off for awd, security system, abs, and shti like that.

    If you can lease with the option to finance the rest you owe and it turns out to be something youll be able to afford in a projected 3-4 years, go for it. But sometimes leases require you to pay a lump sum on the day you sign the lease, not all but some.

    If you lease a car, your payments will be cheaper than payments to own. So for the first 3-4 years pay the lease payments, all while you save money for a new car since youll have a litle extra due to the cheaper payments. when it comes time to give the car back, give it back and then get a new car financed to own... but only if the money youll save over the 3-4 year period ends up being more than your dp for the lease... did i just confuse myself?
     
  19. totalburnout

    totalburnout Well-Known Member VIP

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    I didn't quite catch the last part of your statement.

    Only lease if I can save enough money via the use of the lease to save for a downpayment later to finance and own. If I don't save money on the payments then its just a waste because I have to give the car back and had the payments been the same to own then I would partial own the car rather than have to return my 'rental'.

    ...was that the idea?


    I think if I lease and put down like 5k, my payments will be around $230 a month/39 months which I can handle.
     
  20. Outlandish_Bandit

    Outlandish_Bandit Senior Member

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    You gotta remember mileage too. My buddy used to have a leased Ranger XLT that he went wayyyyyy over on mileage. He ended up having to get bailed out by his parents at the end of his lease cause he couldn't afford it. Do some research before you jump into anything. Personally, I would never lease; paying a little bit cheaper for something that in the long run I STILL wouldn't own just seems retarded to me. But oh well :/
     
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