Thoughts on leasing??

zaimer

I would like some opinions on leasing vs buying. I've been toying with the idea of trading my Z in for a lease on an Infiniti Q60 ("new" version of the G37 for those who don't know). I love my 370z, but its getting to the point to where I hate not being able to drive my "good" car a good portion of the year. That and my second (winter beater) is going to last forever. I told myself I'm not spending the money to buy another junk car after this one, so the Z will have to go eventually anyway. At first, I was thinking about buying a used G37, until I came across the Q60 lease "special".

Basically I get a 2014 Q60 with premium package (& AWD), $2000 down, 12k per year and he said my payments would be around 360 per month. I've read both sides of the fence about leasing. I typically don't keep my cars for much more than a year or so, so I thought leasing would fit me perfectly. However, I don't like the idea of having nothing to show for at the end of the lease..thoughts??

tnav

Leasing is a great option, you always have warranty, and Infiniti gives loaner cars, whereas Nissan does not.
Most buyers are always upside down anyway, very few can say they have equity after putting $2k down, especially if buying new.
Personally, if I decided to lease, I probably would lease a German car

Zipper 104

Remember....if you look after it and keep it under the mileage (to escape any additional penalty) they'll always be worth more than the residual at the end of the lease's term.
Rather than give it back to them, buy it out at the residual amount then sell it and pocket the difference.
I leased my last car. The buyout was $10K in the end, but the car was worth $15K.
If you are able to write the payments off all the better.

In hindsight I should have leased my 370. Instead I paid cash when I could have made more money with the extra cash in my pocket than the interest I would be paying on the lease. It really came down to me not wanting to make any payments.
The beauty right now is rates are pretty cheap. I think I was quoted 1.9% for up to 60 months at the time on a lease of a 370. Some terms come with better rates so there's a 'sweet spot' picking the right term.

104

2011 Nismo#91

I never did but you can look at leasetrader if you don't like sticking with one car for more than a year.

dislimn

I've leased two cars before and while I made good choices, the simple fact is I can't keep a car for 36 months. It never worked out and re-financing to be able to easily sell the car is a financial mistake. Don't do it.

Don't rent things you can't afford

Mt Tam I am

I prefer to own my car vs leasing. It may make more financial sense to lease some how, but I always own.

Last night I was pondering buying a Z06 and then leasing it to my company. I doubt this is legal but I need to look into it.

__________________
Nissan Motorsports 34R Oil Cooler. Stillen CBE. Hotchkis Sport Sway Bars. KW Variant 3 Coilover System. Stillen Gen3 CAI. Michelin Pilot Super Sport. Stillen Brake Ducts. Carbotech™ XP10/XP8 Pads. Z1 Front Rotors. Z1 Stainless Brake Lines. Two degrees of camber

dislimn

I own a company too and the fact is unless you lather your vehicle up with stickers promoting your company and do a bunch of other stuff -- it's just not worth it to try to lease a car under a corporate name. At least at my income level, SBO type stuff, it's awful suspicious to the IRS to have a $30k+ car under your company

mishuko

few things you failed to mention is... what is the term for this lease? 24,36,48? will 12k/year be sufficient for your driving requirements?



that last line... gold. i wouldn't own another german car... lease n dump!


again... these last line kickers! AGREED 100% do not over extend.

it COULD work but it all depends what the line of business is. if you business is high end cars etc then YES it would be acceptable. if you're an errand business... possibly

if you're an IT company then they will ask you WTF? Unless you somehow incorporate having sports car into your company mandate.... or something like that lol

Mt Tam I am

Thank you. I have no way to say to the IRS, I need an $85K+ car for one or two out of office needs per year.

__________________
Nissan Motorsports 34R Oil Cooler. Stillen CBE. Hotchkis Sport Sway Bars. KW Variant 3 Coilover System. Stillen Gen3 CAI. Michelin Pilot Super Sport. Stillen Brake Ducts. Carbotech™ XP10/XP8 Pads. Z1 Front Rotors. Z1 Stainless Brake Lines. Two degrees of camber

ElVee

Another reason one may lease a car is if you plan to trade in at the end of the short term (2-3 years). Whether you buy the car or lease it, you're basically paying depreciation. If you plan to keep the car 5+ years, you're better off buying the car. If you plan to keep it less, you're better off leasing it.

For instance, you say you want something to show for it after the term. If you buy the car, and sell at worth after 3 years, you'll have nothing really to show for it since you took the hit for the depreciation. If you lease, you still take the hit for the depreciation in the lease terms, and the car is taken off your hands. The longer you lease the car, the dumber the decision, though.

In addition, depending on the lease deals, you could get free services for the term. Also, you don't have to do the selling when you do get rid of the car, you can often roll into a new lease deal at a good price. Though you do have the option of buying at the end. Another benefit is being able to wring out the car and drive it like you stole it, especially if you're in a manual, and not really worry about the condition at the end. That chances are good your 2-3 year-old car is going to be in fine condition and nowhere near 100k miles, so you can beat the hell out of it and no one will ever really know when you turn it in.

If you want a new car and not have to ever really worry about your car, and you want to keep getting new every 2-3 years, you certainly can lease just fine.

Some people lease because it allows them to get their butts into a car that is more expensive than they could afford by buying it. Honestly, this isn't a great idea. As someone already said, don't rent what you can't afford. That money should probably be used elsewhere or for something less.

Bking

After 1 year:

Lease = $2000 + $360x12 = $6320 spent

Do you think your car will depreciate more than $6320 after one year if you were to buy/finance? The answer is most likely yes.

If you have a steady income then I highly recommend taking the lease special option.

czirrfb

But with leasing can you modify the car? Lower it, add performance parts, new wheels, tint etc.?

Because if I was to get a sports car of any kind (like the 370) I would want to modify it.

synolimit

I leased because I didn't want a huge payment, simple as that. Buying my car would of been more than my mortgage. I will buy my car at lease end however and my new monthly will be the same as the lease price I pay now.

Theres two things wrong with my lease though...1. After the lease/buy terms I'll have paid 2k more than just straight buying it. But spending 2k over a long time is worth it to me, to avoid a $650+ monthly payment. Like a credit card, a lease can get you something now and you just end up paying more interest in the long run. In fact a mortgage is even like this, whether borrowing on installment or revolving you're still paying someone and borrowing. If I wanted my car for the same monthly I pay now and will pay when I buy it, I'd of had to put down an extra $12,000 which I don't/didn't have. That's to much in my eyes. All that down or a huge monthly means no performance parts or fun .

The 2nd issue I'm seeing is Nissan killed the 14 prices vs my 13! That means my residual is way to high! Come time to buy it I'll be buying it for WAY more than what it's worth unless Nissan negotiates with me. This is a perfect example why to lease vs buying. If your cars value drops to ****, just turn it back in at lease end. For buyers they're stuck with a ton of negative equity unless they put like $13,000 down that I was talking about. But there's a good chance they'll only get part of that down payment back. So what was the point emptying their bank account in the first place?

In the end it all just depends on the car, the rate, the payment, the numbers, your pocket.

__________________
13 370z-

synolimit

YES! A lease is your car! You own it! Do what you want. If you go to buy it off nissan then just buy it cash or a bank loan (and you can do either at any time you'd like, you don't have to wait till lease end, just call them and ask for the buy out price). If you want to turn it in, turn it back to stock since you'll loose your money you have into it otherwise.

__________________
13 370z-

Nargrakhan

Actually... while I'm not a lawyer or legal expert, I think you need to READ YOUR LEASING CONTRACT.

Some leases are specifically worded to NOT allow modding that voids the warranty and/or must be returned in the same general condition it was bought, minus acceptable wear and tear. None of this would be a problem if you ultimately decide to buy the car in the end... but if you intend to return it, there might be problems if you "riced the hell" out the vehicle and brought it to the dealer that way.

Modded cars are harder for a lot of dealers to resell than a plain stock.

If the dealer can't tell you modded the car (or doesn't care), then none of this matters...