"not making a car payment to the bank is how you get the $20,000. i am saying that instead of borrowing all the money to buy the car and paying even as little as 1.9% interest on it, you wait 5 years to buy the car and during that time you make the car payment to yourself, in a bank account that pays you interest, and after you have that money saved up you can do whatever you want."


that is exactly what i said. the point is that if you go ahead and finance a car, you are never going to have that $20,000!

3/19/2007 9:12:06 AM

/me Bangs head on desk

3/19/2007 9:16:34 AM

Quote :

"the point is that if you go ahead and finance a car, you are never going to have that $20,000! "

bangs head on wall

read number 1

3/19/2007 9:17:50 AM

i sure am glad that I dont come to TWW to make informed decisions on buying or leasing a car because some of you are retarded

there are plenty or articles out there to read

First question you need to ask yourself is, is it about the money?

or is it about driving the car you want?

cause if you care about what car you are driving and the options it has, leasing probably isnt a good idea

For me I want "X" car with "Y" options, well in the dealers world that car might not be a lease option so you are SOL

3/19/2007 9:32:29 AM

Look man all I am saying is that you are better off financing a car at a LOW interest rate than you are buying a car in cash. (unless the dealer is willing to give you a large discount for paying in cash)


Everyone else in the thread seems to get it except you which is why I think you are missing some critical information that would help you understand financing.


It's very intuitive. If a dealership gives me $20,000 and says "pay me back with 1.9% interest" and I give that money to a bank and say "pay me back with 5.0% interest" I am going to come out on top, period.

3/19/2007 9:55:59 AM

Quote :

"that is exactly what i said. the point is that if you go ahead and finance a car, you are never going to have that $20,000! "

What they are saying is wait until you have the $20000 just like you were going to do. But then go and finance your car for 1.9% interest instead of forking over the 20k. I think you are thinking they are financing the car to begin with. They are buying the car at the same time as you, once you have the $20k in your bank

Quote :

"For me I want "X" car with "Y" options, well in the dealers world that car might not be a lease option so you are SOL"

I don't get what you are trying to say here. As a previous car salesman, I can tell you that every new car can be leased. Now some cars lease better than others, is that what you are trying to say?

3/19/2007 10:32:57 AM

It is worth noting though that if you get a loan discount, they are making it up by raising the selling price. You should definitely negotiate the selling price first, telling them that you have outside financing, then try to get the promo loan. However, if you've got a good selling price, you conveniently "won't qualify" for the loan.

3/19/2007 10:36:07 AM

Don't lease...its fucking stupid...unless you either change cars a lot, or are in a job where leasing is preferred.

I used lease my vehicle I used for work....that worked out well because of the use...but its throwing money away in the long run, and you will FOREVER have car payment.
DUH.

3/19/2007 10:49:59 AM

^ shut up. I refuted the "dont lease" argument on page 1. Stop repeating the same old tired finance fallacies.



^^ there is definitely some truth to that.


Car salesman can be really sketch about that kind of thing.


You should ALWAYS negotiate the price of the car first.

Once you've agreed upon a price then you can work out the financing.

If they give you any shit about you not qualifying for the promo loan, the rebate, etc just threaten to walk out and take your business elsewhere. Usually, the rebates and promo loans are offered by the MANUFACTURER not the DEALER so don't put up with any bullshit.

[Edited on March 19, 2007 at 10:51 AM. Reason : a]

[Edited on March 19, 2007 at 10:52 AM. Reason : a]

3/19/2007 10:50:58 AM

Hey, I admitted it works for some things and not others, I could NOT lease the personal vehicle I have now...I have put more miles on this fucker in one year than I will ever put on a car in my entire life...I probably won't even be able to sell it, and It would kill me if I had to turn it in as a lease.

3/19/2007 10:53:50 AM

Quote :

"I don't get what you are trying to say here. As a previous car salesman, I can tell you that every new car can be leased. Now some cars lease better than others, is that what you are trying to say? "

yes in a round about way, it could have been stated better.... The OP wasnt clear as to EXACTLY what he wanted, he just said needed help leasing, well what does that mean? Need help leasing cause he is considering that versus buying or because he wants the best price on a lease.

Dealerships offer leases on cars they are trying to get off the lot, so they give you a good price. So with that the cars being leased wont come fully loaded and probably wont be the top model line and if they do they arent going to cost the same as the base model lease (most of the time).

Yes every car is for lease, but they sure wont cost the same as a base model lease. So my point was if you are just in it for the cheapest lease be prepared for the car to not have the options you may want and if you care about having the options then be prepared to pay more.

Example: BMW is offering a great deal on leasing a 525i, but it doesnt have the options he considers acceptable. The M3 does, well you arent walking on to a lot and leasing the M3 for the same as the 525i. (if getting the cheapest lease is the OP main concern, which he doesnt state) I dont even think they lease M3 either so this example sucks but the point remains.

Now, is he plan on buying the car after the lease is up? Is that a possibility or not? If it is this thought may cross someones mind: If the M3 is a car you want to keep for awhile then you may want to modifify it, which under a lease isnt a good thing. (yes I know if you plan on buying the car in the end then he could do whatever he wanted with it, but it is a gamble. And the gamble is the same as buying out right and dealing with warranty, was just food for thought)

[Edited on March 19, 2007 at 10:58 AM. Reason : ]

3/19/2007 10:57:26 AM

Quote :

"if you are actually worried about the financial side of buying a car, you shouldn't be considering making loan payments OR lease payments at all. if you plan ahead you can save yourself thousands.... put the money you would be spending on a car payment each month into a personal account (CD or Money Market paying you at least 5% interest) for 3-4 years and then just pay cash for the car and save yourself all the hassle of the payments and several thousand dollars in interest. you can start a cycle.... even after you buy the car you want, keep making the car payments to yourself, and in 3-4 more years you can sell the current car and not have any loan payoff, and have enough stocked up in your personal account that is making you interest instead of costing you more to buy another new car. you can continue the cycle forever and never be in debt, you just have to be patient and drive what you can afford currently for the first couple of years"

this is not the question the thread was intended to ask - but ty for the information

3/19/2007 11:23:08 AM

Quote :

"Hey, I admitted it works for some things and not others, I could NOT lease the personal vehicle I have now...I have put more miles on this fucker in one year than I will ever put on a car in my entire life...I probably won't even be able to sell it, and It would kill me if I had to turn it in as a lease. "

As I stated on the first page, mileage only hurts you if you just drop the lease off. If you buy the car after the lease is up, or trade it, you don't have any mileage fines. Don't get me wrong, if I knew I was going to put upwards of 50k miles/yr on a car, I might not lease it. I just don't want everyone thinking that they shouldn't lease because of fines for mileage.

^^
gotcha. yeah, when we advertised a certain lease price in the paper, that was for the base model, no options, etc. Most people realize that.
As a side note, they don't lease the M3? I had my lease training at the Mercedes dealership in Cary and they guy teaching it mentioned that at higher-end dealers they try and lease every car they sell.

3/19/2007 11:34:17 AM

Quote :

"yes in a round about way, it could have been stated better.... The OP wasnt clear as to EXACTLY what he wanted, he just said needed help leasing, well what does that mean? Need help leasing cause he is considering that versus buying or because he wants the best price on a lease. Dealerships offer leases on cars they are trying to get off the lot, so they give you a good price. So with that the cars being leased wont come fully loaded and probably wont be the top model line and if they do they arent going to cost the same as the base model lease (most of the time). Yes every car is for lease, but they sure wont cost the same as a base model lease. So my point was if you are just in it for the cheapest lease be prepared for the car to not have the options you may want and if you care about having the options then be prepared to pay more. Example: BMW is offering a great deal on leasing a 525i, but it doesnt have the options he considers acceptable. The M3 does, well you arent walking on to a lot and leasing the M3 for the same as the 525i. (if getting the cheapest lease is the OP main concern, which he doesnt state) I dont even think they lease M3 either so this example sucks but the point remains. Now, is he plan on buying the car after the lease is up? Is that a possibility or not? If it is this thought may cross someones mind: If the M3 is a car you want to keep for awhile then you may want to modifify it, which under a lease isnt a good thing. (yes I know if you plan on buying the car in the end then he could do whatever he wanted with it, but it is a gamble. And the gamble is the same as buying out right and dealing with warranty, was just food for thought)"

now we are on to something. The reason that I would like to rent is because I am driving a family car right now in which my brother needs more than I - so i need to get a car. I am not ready to buy a car because buying a car is a terrbile investment unless you plan on keeping it for quite a long time. As you know Cars != real estate for return on your money when time -> inf. Seeing that I'm only 24, I would like a fun car to drive, Pontiac Solstace, 325i, Eclipse, Z3/Z4 - as you can see....something fun to drive. I'm also thinking about picking up someone's lease that they are trying to get out of. Anyways, i think you see where i'm coming from!

3/19/2007 11:57:51 AM

Quote :

"Even some "take over my lease" sites will work."

Check out http://www.leaseguide.com. I just began a lease on 2007 Infiniti G35 Sedan back in early February. This site is THE BEST. I paid the 20 dollars to get their "lease kit." I did research and homework for two months before I stepped foot on the lot. It helped me out a ton. I knocked 80 dollars a month off my payment just by learning to calculate your lease numbers. I love my lease. My old car was falling apart, I wanted a new car for a couple years. I'm 24 and I can get away with a higher than average car payment. I can afford a lease payment, there is no way I could of afforded a loan payment for this type car. Read that site. The lease guide told me what kind of profit margins to expect on every 2007 car. I think the G was 8%. I negotiated around that. Always go invoice up, never MSRP down. I think they made about 1.3% on my deal. So I came out ok. It explains everything. PM if you want any details on what to look out for. What kind of car are you looking at?

3/19/2007 12:19:25 PM

^very good advice. I actually have already bought the lease guide (kit) and it seems to be awesome. I would like to buy a sporty car, but nothing too fancy. Something fun to drive but nothing that would be in a rap video. A smaller car woudl be nice, but I have problem most cars. I've even thought about an SUV...can't you find them at affordable prices now seeing gas prices are $texas and the "Big 3" are in so much trouble?

3/19/2007 12:51:24 PM

the Mazda RX-8 is looking pretty good...anyone know more about them?

[Edited on March 19, 2007 at 1:24 PM. Reason : asdf]

3/19/2007 1:24:38 PM

mazda removed the rx-8 from their reliability ratings because it was hurting them too much

if that helps you decide

3/19/2007 1:26:42 PM

yuck...that doesn't sound very good. Hopefully it would all be covered under warranty?

3/19/2007 1:33:36 PM

its a rotary engine, just stay away

3/19/2007 1:39:25 PM

Not to mention that car gets TERRIBLE gas mileage

3/19/2007 4:54:53 PM

this is about to turn into garage material...

3/19/2007 5:13:54 PM