Who Purchased Their Leased Car?

[SlingShot]

Originally Posted by BlueN20Camaro

Its a 1SS. And it's 36 WOTHOUT TAX AND DEALER FEES. Once you add all together with interest its 40K but hey you know what you know

So what type of interest rate do you expect to pay three years from now on a used car when it comes time for the buy out ?

[Moto-Mojo]

Originally Posted by SlingShot

So what type of interest rate do you expect to pay three years from now on a used car when it comes time for the buy out ?

Hard to say. One thing's for sure - I'll pay the going rate! I wish I would've asked what it is for the lease. They'll tell you there is no interest rate per se, but of course, there is. Since my current payment is the same as the old car, it's probably about 3% now.

That could be a deal breaker on keeping it though. If I'm still really enamored with the car I may burn down some retirement $ on it. Going to have to have a car after I retire in 6 years anyway. I have always kept cars for a long time. (8+ years)

[Moto-Mojo]

Cars are a LOUSY investment. Always have been. Some things you can't put a price tag on. You know, that "permagrin" that's been discussed here on the C5. What's that worth anyway?

[Drumminxx]

ok I'll play since I have leased and then purchased and I will never do it again. I wanted a new Cadillac for the lowest payment I could get so here is my story...

I leased a new 07 CTS, GMS price (Dad worked at Chevy) and $4000 down for 36 months at $299 a month. The contracted purchase price at the end of the lease was set at around $26,000

Once the lease was up, I went ahead and bought the car for $26,000. 60 months at around $450 a month. I think it was around a 2% interest rate and I have good credit.

Plain and simple that is how it works. Now, I could have bought the car at the beginning and paid over $600 a month for 60 months but instead I did the above and would have paid those amounts for 96 months and about $5000 more for the car total than if I just bought it at the beginning.

I said "would have" because a deer committed suicide and the caddy was totaled so now I have a 1LE that I bought.

so yea, leasing and then buying will save you money per month but in the end you are paying a lot more for the car.

[BlueN20Camaro]

Originally Posted by ssump29

A 2015 1SS before taxes are 34,500 or soo. So againnnnnnnnnnnnnnn 380 for eight years still isn't correct. Look you made up some bull and got called on it. Stop defending this lie. now you self correcting and saying 40k make up your mind its either 380 a month for a full 8 years or not. simple your lyingggggggggggggggggggg

It's sitting out my drive way for 380 and 36,000. But hey you know what you know. Once you add tax interest and dealer fees it's 40

[TommyTheCat]

Originally Posted by BlueN20Camaro

The level of intelligence in this page is shocking.again if you have bad credit yes you pay more than what it's worth. If you have good credit you pay the same. Multiply 380 by 8 years it's the same money if I financed my car. The same final price. The same. Take your time and read this twice, not that difficult. Now if I had 6 credit cards and show no history of paying back than yes it wouldn't be smart. But if i still pay 40K just in 8 years I'll take that any day.

You forgot about interest, it would appear.

[jeffa]

The one thing no one has talked about is excess mileage...this could be a killer.

To get a low lease payment, you will have low lease miles available, usually 10K miles a year. If your car is a daily driver, or you just like driving, it doesn't take long to get to 10K miles, about 834 miles a month, which is equal to 28 miles a day. The usual penalty for exceeding the lease mileage is usually a minimum of 15 cents a mile....doesn't seem like much until you do the math....834 miles x .15 = $121 per month in penalty fees.

[Drumminxx]

Originally Posted by jeffa

The one thing no one has talked about is excess mileage...this could be a killer.

To get a low lease payment, you will have low lease miles available, usually 10K miles a year. If your car is a daily driver, or you just like driving, it doesn't take long to get to 10K miles, about 834 miles a month. The usual penalty for exceeding the lease mileage is usually a minimum of 15 cents a mile....doesn't seem like much until you do the math....834 miles x .15 = $121 per month in penalty fees.

But that only applies if you don't buy the car. They also will nickel and dime you on tire wear and any damage to the vehicle and we all know that after 3 yrs and 30,000 miles performance tires will be shot.

[Rahjeir]

Originally Posted by jeffa

The one thing no one has talked about is excess mileage...this could be a killer.

To get a low lease payment, you will have low lease miles available, usually 10K miles a year. If your car is a daily driver, or you just like driving, it doesn't take long to get to 10K miles, about 834 miles a month, which is equal to 28 miles a day. The usual penalty for exceeding the lease mileage is usually a minimum of 15 cents a mile....doesn't seem like much until you do the math....834 miles x .15 = $121 per month in penalty fees.

Mileage is way cheaper upfront. Bumping mileage from 10k to 15k can be as little as 10 bucks per month. If your buying the car at the end of the lease, mileage doesn't matter.

[Moto-Mojo]

Originally Posted by Drumminxx

ok I'll play since I have leased and then purchased and I will never do it again. I wanted a new Cadillac for the lowest payment I could get so here is my story...

I leased a new 07 CTS, GMS price (Dad worked at Chevy) and $4000 down for 36 months at $299 a month. The contracted purchase price at the end of the lease was set at around $26,000

Once the lease was up, I went ahead and bought the car for $26,000. 60 months at around $450 a month. I think it was around a 2% interest rate and I have good credit.

Plain and simple that is how it works. Now, I could have bought the car at the beginning and paid over $600 a month for 60 months but instead I did the above and would have paid those amounts for 96 months and about $5000 more for the car total than if I just bought it at the beginning.

I said "would have" because a deer committed suicide and the caddy was totaled so now I have a 1LE that I bought.

so yea, leasing and then buying will save you money per month but in the end you are paying a lot more for the car.

IF...big if, I can get 3% interest in 3 years, I will pay $45.5K for the car - 3 years of lease, five years for the loan. I think it stickered at 43 and change. That's not great but not a "lot" more.

[xrivera91]

After everything was said and done the day I went in for my 2SS rs the final price was 43k my lease payments will total $19,755. When the lease is over, written on my contract it says I can buyout the vehicle at the end of the lease for like 22k and some change not sure the exact dollar amount. I will finance that at a 1.9% interest rate like I currently have on my wife's Malibu. So what i am getting at is that i am not going to pay a ton more like some folks here suggest. You have to remember every car is different. So every deal will also be different.

[Rahjeir]

Originally Posted by BlueN20Camaro

I leased my 1LE for 380 the lease is just shy of 4 years. Brand new I put every mile on it. Once my lease is up the car has to be financed for a pre agreed price of 25K doesn't matter if the car is worth more or less that's the price you pay. So for me as a part time worker since school this made sense when I'm leasing I pay 380$ when I buy after the lease pay 380$ as well just it takes 8 years to pay off but makes the car affordable to people like myself with good credit. ONLY WORKS IN YOUR FAVOR IF you are with a good credit score, but since the nation average is nearly at 630 I doubt many on this page do and gets 1LS for300$ a month. It makes the car obtainable if you aren't full time just you have payments for an extended period. Not that hard to understand.

Let me see if I got the math right.

380month X "Just shy of 4years" 39months? = $14,820

$14,820 payments - 40k total of car = $25,180 buyout

$25,180 buyout /72month used car loan at 2.99% = monthly payment $382.46

Lease with buyout car is paid off in full in 111 months.


Normal Finance

$412.93 x 111 months at 2.9% = $40,000



I'm shocked how that math just worked out. It makes since because of the difference in interest. I used perfect world interest rates. You can obtain these with the right score. It would still take you 111 months or 9.250 years. Remember depending on the state you live in the 25,180 is taxable again adding a potential 1-2k to the total price.

[Soybeanrice]

How come the 380 got changed to 3 years? I couldve sworn I saw earlier (phone was getting bad posts, so i had to delete my reply) that I saw the guy said 380 for 4 years and then 25k pre agreed. Dude, thats like 43k for your 1SS 1LE. Sure its over 8 years, but that dealership is getting their money.

Leasing is short term gain for long term pain if you plan on buying the car outright. There is no way leasing would be better than financing or else no one would finance.

[Drumminxx]

Originally Posted by Moto-Mojo

IF...big if, I can get 3% interest in 3 years, I will pay $45.5K for the car - 3 years of lease, five years for the loan. I think it stickered at 43 and change. That's not great but not a "lot" more.

I understand. Were all human and we'll do what we can to get what we want and if leasing and buying is what it takes and you want it bad enough then by all means go for it but your not going to save money doing it that way. I don't care what anyone says. Not everyone can pay cash or afford a $600+ car payment either. I did and done both and I will never pay cash again only because it really drained my bank account...lol..so I'll just stick to the monthly payments but leasing just doesn't work for me and for some it does.