Quote:
Originally Posted by mattleegee
That kinda makes sense but im still stuck on paying into something with no return
Lets take you example of the GS350 F sport, i went to website and picked out a base one with no additional options
Lease is 36months with $569/month plus $4799 down payment
**Excludes official fees, taxes and dealer charges. No security deposit required. 10,000 mile/year limit.
That is a total of $25,283 without fees/taxes plus any return fees.(Probably close to $35k)
And all that is thrown away unless you buy at end of lease.
Lets say $35k in 3 years pumped into lease that is almost a $1000/month car payment over 36 months, maybe the fees are lighter on the lease lets say you only spend $30k then thats $833/month that you could be pumping into an asset and when you trade it in get a sales tax break on new car purchase, and still gives you some depreciation wiggle room, or possibly positive balance towards new car.
That is just how i think about it, i maybe totally out of line
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I don't agree with the 35k figure. The lease alone is 25283, acquisition fee (~$700), disposition return fee (~$700-1000). Lease return fee is waived with release, but that's another story.
Buy or lease, you can't avoid sales tax and state fees.
If you finance a purchase, you are borrowing the whole amount less downpayment. If you lease, only the lease portion is financed/borrowed, so less interest.
When you trade in, remember you already paid the sales tax. There is no free lunch.
It all boils down to how long you plan on keeping the car. If you keep it until the wheels fall off, buy definitely. But if you tend to get a new car/ technology every 3-4 years, lease is the way to go.
With the GS example, it lost over 50% (market value) in 3 years. If you bought, that would leave you upside down and a sour taste in the mouth. If you leased, you walk away or could renegotiate and buy it at lower price