12-19-2013, 03:59 AM | #1 |
Drives: 2014 V-Sport/ 2015 Escalade Join Date: Oct 2011
Location: Virginia
Posts: 939
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Help me out guys!
I am not a mathmagician, so any help would be appreciated. We are replacing my wives truck and we have two options. A one payment(24 mo.) lease(don't want monthly payments) of $37,737.11 (most of it my trade) or purchase the car outright $64,XXX out the door. We plan on keeping the car for a long time, and eventually giving it to our son to drive. Thank you so much in advance, this is giving me a ulcer.
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12-19-2013, 04:39 AM | #2 |
Drives: 2011 2SS RS, 1968 ragtop Join Date: Apr 2009
Location: Indiana
Posts: 1,850
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Maybe I'm missing something but if you plan on keeping the vehicle long term you're better off with the outright purchase. I generally think leases blow so I'm biased...
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1968 Camaro Convertible LS1, T56
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12-19-2013, 04:42 AM | #3 |
Drives: 2014 2SS/RS 1LE Join Date: May 2013
Location: Charlotte NC
Posts: 977
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Leases can be complex and there are a lot of “gotchas” on them if you are not familiar with them. Also keep in mind that a lease is really for people that like to change the car they drive every few years. By your statements that you plan on keeping the vehicle for a long time and passing it on to your son the lease is definitely not for you. How much are you planning on putting down? Give us some more details on the car/truck you are going to be purchasing. Is it new or used? Do you have a link to the vehicle for sale on the dealers lot, and do you have good/bad credit and what is the likely interest rate you will qualify for and I can probably come up with some probable monthly payment for you. Take a deep breath, and we can help you figure this out.
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12-19-2013, 04:49 AM | #4 | |
Drives: 2014 V-Sport/ 2015 Escalade Join Date: Oct 2011
Location: Virginia
Posts: 939
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Quote:
Link to car (Lexus dealers don't put new cars on site anymore http://www.autotrader.com/cars-for-s...gIndex=2&Log=0 |
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12-19-2013, 07:58 AM | #5 | |
Drives: 2014 2SS/RS 1LE Join Date: May 2013
Location: Charlotte NC
Posts: 977
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Quote:
Just from a quick glance around the interwebs this vehicle does seem to hold its value well but it is still very expensive. The gas mileage is 12-17 mpg and the insurance is likely to be significant, somewhere north of $120 even with an excellent driving record. (please check with your agent before making a decision to buy) Adding gas, (assume 15,000miles/year) insurance and monthly payment on a 6 year loan your cost per month is going to be something close to $1,400. If that, along with any other automobile expenses on other vehicles you own is less than 20% of your combined after tax take home income then I think it’s something you can handle. (that would be an after tax take home of nearly $7000/month) 20% is just a rule of thumb but I am sure you are a responsible adult and I am not trying to talk you out of anything just providing the facts for you. Hope this break down helps, let me know if anything is unclear. |
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12-19-2013, 08:16 AM | #6 | |
Drives: 2014 V-Sport/ 2015 Escalade Join Date: Oct 2011
Location: Virginia
Posts: 939
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Quote:
Nope, you made it crystal clear (thank you)! I have worked hard to get where I am, and this purchase is going to take me in the wrong direction. Its one of those I can afford it, but I don't need it deals. I think I may look at certified used, or just try and keep my Denali on the road. |
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12-19-2013, 09:34 AM | #7 |
Drives: Callaway Rogue Join Date: Jul 2009
Location: W8n 4 Snow, Minnesota
Posts: 4,738
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Why not just get a new Denali for about half of that?
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12-19-2013, 12:00 PM | #8 |
Drives: 2014 V-Sport/ 2015 Escalade Join Date: Oct 2011
Location: Virginia
Posts: 939
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12-19-2013, 01:06 PM | #9 | |
Drives: 2014 2SS/RS 1LE Join Date: May 2013
Location: Charlotte NC
Posts: 977
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Quote:
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12-19-2013, 01:51 PM | #10 | |
Drives: 2014 V-Sport/ 2015 Escalade Join Date: Oct 2011
Location: Virginia
Posts: 939
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Quote:
You got it, I find you don't really enjoy it, if you spend your life figuring out how to pay for it. I am in a good spot now, where I actually get to spend time with my son. I don't want to give that up right now. |
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12-19-2013, 08:20 PM | #11 |
Drives: Callaway Rogue Join Date: Jul 2009
Location: W8n 4 Snow, Minnesota
Posts: 4,738
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