jasonj80 Posted May 22, 2019 Share Posted May 22, 2019 Hard for people to grasp but people that drive a ton of miles should always lease (just buy the miles up front), and people that drive an extremely low number of miles should always buy from a financial stand point when dealing with new vehicles. Quote Link to comment Share on other sites More sharing options...
jcartwright99 Posted May 22, 2019 Share Posted May 22, 2019 I just realized that someone brought this thread back from the dead. Quote Link to comment Share on other sites More sharing options...
Deanh Posted May 22, 2019 Share Posted May 22, 2019 On 6/3/2016 at 7:56 PM, fordmantpw said: Interest rates are generally lower on new cars, and 84 month loans are not unheard of now. the issue with longer term loans is the rates go up...quite a bit... Quote Link to comment Share on other sites More sharing options...
akirby Posted May 22, 2019 Share Posted May 22, 2019 2 hours ago, jasonj80 said: Hard for people to grasp but people that drive a ton of miles should always lease (just buy the miles up front), and people that drive an extremely low number of miles should always buy from a financial stand point when dealing with new vehicles. Why? Not accounting for differences in rebates/subsidies you're paying for depreciation either way. My rule is if you're going to get a new vehicle every 2-3 years then leasing is easier. If you want to keep it longer then purchasing is better or you could lease with the intent to buy it out. That way you can keep the payments lower and you have the option to walk away from the lease if you don't like it. Quote Link to comment Share on other sites More sharing options...
Anthony Posted May 22, 2019 Author Share Posted May 22, 2019 Lease to buy is not always the answer. It all depends on the specific deal. I initially leased my Ranger, but the deal was outright horrible. My credit is spotless, but the "rent charge" on the lease was ~$6k over 39 mos. I went in last month and bought it out after just two months and my interest charge over the life of the loan is almost half that. If I had waited until the end of the lease, I'd be paying an extra $6k on top of whatever my interest would be when I bought it out. No thanks. As said earlier, don't go by the monthly...always go by the total. If you have to worry that much about your monthly payment amount to stretch it through a lease and then a purchase, maybe you should not be buying the vehicle you have your eyes on. 1 Quote Link to comment Share on other sites More sharing options...
akirby Posted May 22, 2019 Share Posted May 22, 2019 Definitely go by the total of payments either way including down payments and other fees. Quote Link to comment Share on other sites More sharing options...
Deanh Posted May 22, 2019 Share Posted May 22, 2019 1 hour ago, Anthony said: Lease to buy is not always the answer. It all depends on the specific deal. I initially leased my Ranger, but the deal was outright horrible. My credit is spotless, but the "rent charge" on the lease was ~$6k over 39 mos. I went in last month and bought it out after just two months and my interest charge over the life of the loan is almost half that. If I had waited until the end of the lease, I'd be paying an extra $6k on top of whatever my interest would be when I bought it out. No thanks. As said earlier, don't go by the monthly...always go by the total. If you have to worry that much about your monthly payment amount to stretch it through a lease and then a purchase, maybe you should not be buying the vehicle you have your eyes on. I think I mentioned at one time how bad Fords lease programs were on the rangers and lack of incentives...they FINALLY came out with subveened purchase rates....guess what...more floor traffic...go figure! 1 Quote Link to comment Share on other sites More sharing options...
Anthony Posted May 22, 2019 Author Share Posted May 22, 2019 2 hours ago, Deanh said: I think I mentioned at one time how bad Fords lease programs were on the rangers and lack of incentives...they FINALLY came out with subveened purchase rates....guess what...more floor traffic...go figure! Oh yeah, why I signed on to that lease is beyond me. I was enamored by the vehicle but reality hit me shortly after that is was just a rotten deal. Buying it out after just two months was a no brainer and I still got a killer rate (and bought a 7/100 Premium Care warranty at the time too which they price matched Flood Ford). Quote Link to comment Share on other sites More sharing options...
fuzzymoomoo Posted May 23, 2019 Share Posted May 23, 2019 Makes me wish I had a clue how any of this finance stuff works Quote Link to comment Share on other sites More sharing options...
silvrsvt Posted May 23, 2019 Share Posted May 23, 2019 27 minutes ago, fuzzymoomoo said: Makes me wish I had a clue how any of this finance stuff works Lots of online calculators to play with to try to figure it out Quote Link to comment Share on other sites More sharing options...
jcartwright99 Posted May 23, 2019 Share Posted May 23, 2019 1 hour ago, fuzzymoomoo said: Makes me wish I had a clue how any of this finance stuff works Debits on the left, credits on the right..... Quote Link to comment Share on other sites More sharing options...
jasonj80 Posted May 23, 2019 Share Posted May 23, 2019 7 hours ago, akirby said: Why? Not accounting for differences in rebates/subsidies you're paying for depreciation either way. My rule is if you're going to get a new vehicle every 2-3 years then leasing is easier. If you want to keep it longer then purchasing is better or you could lease with the intent to buy it out. That way you can keep the payments lower and you have the option to walk away from the lease if you don't like it. On the ultra high mileage drivers your payment will be less that what the depreciation will be on the vehicle get past 20k per year and you’re better to lease it. This is especially true on luxury brands. Quote Link to comment Share on other sites More sharing options...
akirby Posted May 23, 2019 Share Posted May 23, 2019 10 hours ago, jasonj80 said: On the ultra high mileage drivers your payment will be less that what the depreciation will be on the vehicle get past 20k per year and you’re better to lease it. This is especially true on luxury brands. So you're saying the depreciation estimates used to calculate residuals are wrong on high mileage leases? That means they're just throwing away money. Why would they do that? Quote Link to comment Share on other sites More sharing options...
Kev-Mo Posted May 23, 2019 Share Posted May 23, 2019 (edited) 13 hours ago, fuzzymoomoo said: Makes me wish I had a clue how any of this finance stuff works Save your money Buy a truck, any color you want 'cause we're keeping it and not worried about re-sale. Drive the hell out of it, cause it's yours and you don't have to worry about mileage etc. As it ages, fix it once and while. Take good care, and it will last 15-20 years, and several hundred thousand miles. Edited May 23, 2019 by Kev-Mo 1 Quote Link to comment Share on other sites More sharing options...
jasonj80 Posted May 23, 2019 Share Posted May 23, 2019 43 minutes ago, akirby said: So you're saying the depreciation estimates used to calculate residuals are wrong on high mileage leases? That means they're just throwing away money. Why would they do that? It has to deal with the way the extra mileage is calculated, it is charged the same across the board so you pay the same per-mile fee no matter the cost of the vehicle. So a 65K F-150 or Lincoln has the same mileage buy rate as a 25K fusion. You're also going to be upside down during the period and if you total the car or even get in an accident you'll be far ahead in the lease route Quote Link to comment Share on other sites More sharing options...
akirby Posted May 23, 2019 Share Posted May 23, 2019 16 minutes ago, jasonj80 said: It has to deal with the way the extra mileage is calculated, it is charged the same across the board so you pay the same per-mile fee no matter the cost of the vehicle. So a 65K F-150 or Lincoln has the same mileage buy rate as a 25K fusion. You're also going to be upside down during the period and if you total the car or even get in an accident you'll be far ahead in the lease route So they are basically just throwing money away. I guess they don't get very many of these so they get lost in the shuffle. Quote Link to comment Share on other sites More sharing options...
jasonj80 Posted May 23, 2019 Share Posted May 23, 2019 21 hours ago, jcartwright99 said: I just realized that someone brought this thread back from the dead. AI robot. Quote Link to comment Share on other sites More sharing options...
Kev-Mo Posted May 23, 2019 Share Posted May 23, 2019 23 hours ago, jcartwright99 said: I just realized that someone brought this thread back from the dead. So let's adjust for the present: Average payment in 2019 $545/month for nearly 6 years. -Ouch! https://www.daveramsey.com/blog/the-truth-about-car-payments 1 Quote Link to comment Share on other sites More sharing options...
630land Posted May 24, 2019 Share Posted May 24, 2019 Reason for high debt. It's all about "keeping up appearances", to show off latest SUV, or truck. :-( Quote Link to comment Share on other sites More sharing options...
Deanh Posted May 24, 2019 Share Posted May 24, 2019 4 minutes ago, 630land said: Reason for high debt. It's all about "keeping up appearances", to show off latest SUV, or truck. :-( to some...image is everything.... Quote Link to comment Share on other sites More sharing options...
akirby Posted May 24, 2019 Share Posted May 24, 2019 5 minutes ago, 630land said: It's all about "keeping up appearances", to show off latest SUV, or truck. I love how people think they know how everyone else thinks. Maybe they just like shiny new vehicles with the latest gadgets. Quote Link to comment Share on other sites More sharing options...
Deanh Posted May 24, 2019 Share Posted May 24, 2019 On 5/23/2019 at 10:15 AM, Kev-Mo said: So let's adjust for the present: Average payment in 2019 $545/month for nearly 6 years. -Ouch! https://www.daveramsey.com/blog/the-truth-about-car-payments that equates to a $39240 loan at ZERO interest...and zero isn't avail...so its more likely financing around $29k..... Quote Link to comment Share on other sites More sharing options...
Deanh Posted May 24, 2019 Share Posted May 24, 2019 Just now, akirby said: I love how people think they know how everyone else thinks. Maybe they just like shiny new vehicles with the latest gadgets. true...but I sure see an awful lot of $100k +++ grocery getters around Fashion Island and South Coast Plaza......…. Quote Link to comment Share on other sites More sharing options...
akirby Posted May 24, 2019 Share Posted May 24, 2019 1 minute ago, Deanh said: true...but I sure see an awful lot of $100k +++ grocery getters around Fashion Island and South Coast Plaza......…. But we're talking about $30K - $40K vehicles not $100K. Quote Link to comment Share on other sites More sharing options...
Deanh Posted May 24, 2019 Share Posted May 24, 2019 6 minutes ago, akirby said: But we're talking about $30K - $40K vehicles not $100K. that was a response to the "keeping up appearances"....and those 100k plus types of cars aren't even on my radar lol...lust maybe, common sense no... Quote Link to comment Share on other sites More sharing options...
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