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-   -   school me on leasing a brand new luxury (https://www.revscene.net/forums/666529-school-me-leasing-brand-new-luxury.html)

SSM_DC5 04-16-2012 02:18 AM

Quote:

Originally Posted by Sky_High (Post 7888412)
:considered:

Sorry, but you sure the title of this thread wasn't suppose to be:

"Which luxury car should my cousin's parents lease for him?"

What's wrong with other brands like Lexus, Infiniti or Volvo?
What's wrong with having a Honda Accord in EX-L with leather?

If he's "not into cars", you sure the vehicle with the most HP/TQ,etc would be appropriate?

If pricing and overall cost of ownership is the biggest deciding factor, why are you even looking at any of these three brands?

Etc etc etc....

By far, the worst and most irrelevant response in here so far.

re-read my original post and pay closer attention to detail.
I'm not even going to bother answering the other dumb questions you asked because I would just be wasting my time.

Quote:

Originally Posted by yray (Post 7888679)
I forgot to add, if you do lease try to choose a model that is changing . Rates are much cheaper than a brand new model.

Eg. 2011 135i was 5smth for 3.6k down
BMW is free maintenance but don't expect to keep the car with their maintenance schedules. My 2010 only got one oil change so far :lawl: Don't buy the upgrade package, you won't destroy your brakes within three years. Some horror stories when returning the car according to some people eg: paint scratches.

Benz, maintenance is regular and costly. They may change the brake pads for you if your brakes start to creak within two years. They do offer cheap buy back rates at the end of your lease if you do want to buy the car. You can get some deals if you alert the dealer early when you bring it in at end of lease.


All dealerships will give you loaners when they do long maintenance. Otherwise, you have to sit in their lounge for an hr or two. Richmond autowest is random, sometimes they give you a 125, 323 or even a camry. Benz will give you the model above yours for your first maintenance and then its yaris after that :troll:

Thanks for this!

So leasing rates will vary from model to model? or are you referring to a different rate when you say "Rates are much cheaper than a brand new model"

what kinda deals are you referring to when you say "You can get some deals if you alert the dealer early when you bring it in at end of lease." A deal on the buyout or a deal on the next lease?

yray 04-16-2012 02:31 AM

^yea, just look at glk and new c class
I mean a new car but last yrs model, like leasing a E90 3series vs a F30 now.

deals come at the end of lease, usually a 1% off int. rate like acura or they can cut off some price or w.e.

buyout prices cannot be change I think

GabAlmighty 04-16-2012 06:37 AM

Quote:

Originally Posted by Bahhbeehhaaaa (Post 7887658)
is it true that putting 10% of the vehicle's curb weight (sand bag, salt bag, etc..) at the trunk allows easier driving for a RWD car in snow?

Quote:

Originally Posted by vitaminG (Post 7887694)
maybe in a rwd pickup. otherwise its a terrible idea and will upset your cars handling balance making you more likely to spin out. winter tires are ideal but ive gotten by many winters with rwd and a set of all seasons

Don't listen to him. Don't put 10% as that's a lot. Usually a couple bags of sand (100lbs?) in the trunk and you're good to go.

Ferra 04-16-2012 06:44 AM

Quote:

Originally Posted by Over9K (Post 7888566)
Leasing is the worst way to have a car...financing makes sense sometimes.

Don't see the point of making payments for a car that you're not gonna own...

:rukidding: That's the worst advice ever...

My real life example:
Did a 3 years lease on a $82,000 (MSRP) vehicle a few years back, the residual value was 60% = $49,000. I got a discount of $7,000 on the car, so the final selling price was $75,000

And I guess either because of the financial crisis, rising gas prices, or the leasor (BMW) fucked up their residual value calculation, the car was only worth $40k at the end of the lease.
Obviously I chose to return the vehicle instead of buying it out at a $10K premium.

So for that 3 years of leasing, I took a hit of $26,000 in depreciation instead of $35,000 in depreciation if I were to finance it.

You can argue this example can go the other way (i.e. residual value set too low), but then with leasing you always have the option to buy out the vehicle if the buyout price turnout to be a bargain.

Ferra 04-16-2012 06:59 AM

The car itself aside, I usually consider the following things when I lease a vehicle:
1) lease interest rate
2) residual values
3) lease terms

Always check the repair/maintenance schedule, Pick a lease term that avoid the major tune-up/parts replacement (e.g. brake/rotors, tires) timing.

If the brake is due at 50,000km, you want to return the vehicle at 48,000km instead of 52,000km
(e.g. on my last lease, 4x RFT tires + brake/rotors cost more more than $4,000)

Try to find a vehicle with a High residual value. High residual value means you are paying LESS for the vehicle during your lease term.

If the lease interest rate is much higher than the financing rate, it might be better to finance it instead.

I prefer leasing because it gives you much more flexibility. i.e. if your car had a $20,000k accident you probably don't want to keep it

q0192837465 04-16-2012 07:46 AM

Leasing makes total sense if u can write it off for business use. Other than that. It's a pretty bad way to get a car financially

Kalize 04-16-2012 07:48 AM

what about taking over a lease?
sometimes you can get a really good deal

UFO 04-16-2012 07:54 AM

Quote:

Originally Posted by q0192837465 (Post 7888812)
Leasing makes total sense if u can write it off for business use. Other than that. It's a pretty bad way to get a car financially

Not at all. I used to think that as well, but buying a new car and trading your old one in every 2-4 years is a pretty bad way to get a car.

Geoc 04-16-2012 09:34 AM

One piece of mind when it comes is to leasing is that you'll be on the manufacturer's warranty for the whole lease term, it's a piece of mind when it comes to european cars.

My dad's X5 was not 2 weeks old before it went back into the shop for 5 days. :heckno:

CharlieH 04-16-2012 09:40 AM

you can't only be looking at low lease rates either. if they don't plan on buying it out then you need to look at the residual value of the car at the end of the lease term. generally a good residual for a 3 year lease is anything above 50%. just because they offer you 1.9% doesn't mean your monthly payments are going to be low.

for example, BMW offered their M3 at 3.9% a while back but with a residual of 28% after 3 years. so in the end the monthly payments were almost as much as a porsche 911 C2, which had a residual of 51%. ideally you want low interest, high residual.

jackmeister 04-16-2012 09:55 AM

Are residual rates negotiable? Just wondering.

Ferra 04-16-2012 10:12 AM

Quote:

Originally Posted by q0192837465 (Post 7888812)
Leasing makes total sense if u can write it off for business use. Other than that. It's a pretty bad way to get a car financially

coming from an accountant, realistically it makes no difference whether you lease or finance a vehicle
Finance = write off depreciation expenses
Lease = write off lease payment expenses

The end sum is all the same.

*There is actually a $30K auto limit or $800/month lease payment limit for tax deduction. In some instances the maths might favour leasing by a bit, but usually by a negligible amount.


Quote:

Are residual rates negotiable? Just wondering.
No, residual value is set by the manufacturer, dealers have ZERO control over residual values.

I actually notice most manuf. set a very low residual values on their cars now compare to 5-6 years ago...

Ferra 04-16-2012 10:19 AM

Quote:

Originally Posted by Geoc (Post 7888892)
One piece of mind when it comes is to leasing is that you'll be on the manufacturer's warranty for the whole lease term, it's a piece of mind when it comes to european cars.

Are you sure that's true? as far as I know warranty & leasing are not related in anyway. I.e. if you have a 5 years lease on a car with 3 years warranty and something broke down in year 4, you have to fix it first before you return the vehicle.

But then I have never seen anyone lease a car longer than the typical manufacturer's warranty term. (5-10years+)

GLOW 04-16-2012 10:35 AM

@Ferra
i find it very hard to read your posts with your avatar there :whistle:

Cman333 04-16-2012 10:43 AM

Quote:

Originally Posted by Over9K (Post 7888608)
Yes sir, don't bounce of the limiter, but drive it hard. Blows carbon out and keeps it nice and clean inside.

Don't tell me you break in new engines by pussy footing them?

I don't think driving it hard all the time is "better". You've overlooked a few things. Driving your car hard all the time is not good for your car in the long run. Causes more premature wear and tear on the engine internals. You're basically suggesting excessive wear and tear on the engine components to prevent carbon build up. Although what you're saying about carbon buildup is is not false, I wouldn't say its "better". It's like that double edged sword saying.

Certain cars are more susceptible to carbon buildup.

There are other methods of doing so without suggestion everyone drive hard 24/7. I do back you on pussyfooting, people shouldn't be pussy footing anyways. ESPECIALLY in the left lane :mad:.

Anyways the method 9k is talking about is also known as the Italian Tune Up.

Italian tuneup - Wikipedia, the free encyclopedia

Manic! 04-16-2012 11:52 AM

Quote:

Originally Posted by q0192837465 (Post 7888812)
Leasing makes total sense if u can write it off for business use. Other than that. It's a pretty bad way to get a car financially

How does it make business sense to lease a car?

I don't know why anyone would go into dept just own a car.

jackmeister 04-16-2012 12:01 PM

Quote:

Originally Posted by Manic! (Post 7888993)
How does it make business sense to lease a car?

I don't know why anyone would go into dept just own a car.

instead of you personally paying 100% of the lease after taxes, you can write off a portion as an expense, and reduce your business's income tax

Cman333 04-16-2012 12:05 PM

Quote:

Originally Posted by Manic! (Post 7888993)
How does it make business sense to lease a car?

I don't know why anyone would go into dept just own a car.



"debt" btw ;)

Makes business sense in terms of you can declare it as a business expense and write it off. I know alot of Real Estate agents that lease, yes it makes logical sense to buy a car and drive it until it dies, but in our vain society image means alot. Nice car = success. Success = you're good at what you do. (So you want others to think)

Therefore leasing makes more sense. Instead of financing 70K car (which you can't write off).

Lease vs Buy? Car Leasing versus Buying Explained

Manic! 04-16-2012 12:06 PM

Quote:

Originally Posted by jackmeister (Post 7889003)
instead of you personally paying 100% of the lease after taxes, you can write off a portion as an expense, and reduce your business's income tax

And how much does that save?

Jgresch 04-16-2012 12:18 PM

... lot's of assumptions/false statements in this thread.

jackmeister 04-16-2012 01:13 PM

Quote:

Originally Posted by Manic! (Post 7889008)
And how much does that save?

Might want to see an accountant for that, because everyone has different situations and numbers. But to start, corporate vs personal tax rates. You can go from there.

SSM_DC5 04-16-2012 04:26 PM

Quote:

Originally Posted by Jgresch (Post 7889018)
... lot's of assumptions/false statements in this thread.

now imagine you're in my position, where you gotta try and figure out what to believe.

-so look for low interest rate and high residual value
-$800/month lease payment limit for tax deduction
^ didn't know this, so i'll definitely have to pass that on in case my cousin doesn't know this either.


I would like to know more about how the maintenance works though. Does the dealership make you agree to a certain maintenance schedule for Leased cars?

belaud 04-16-2012 04:28 PM

Full coverage insurance, no matter what. You must have a FULL record of maintenance for your leased car if you intend to give it back. Wear & Tear is fine, so long as its not excessively obvious that it was abused.

Over9K 04-16-2012 05:29 PM

Quote:

Originally Posted by Cman333 (Post 7888946)
I don't think driving it hard all the time is "better". You've overlooked a few things. Driving your car hard all the time is not good for your car in the long run. Causes more premature wear and tear on the engine internals. You're basically suggesting excessive wear and tear on the engine components to prevent carbon build up. Although what you're saying about carbon buildup is is not false, I wouldn't say its "better". It's like that double edged sword saying.

Certain cars are more susceptible to carbon buildup.

There are other methods of doing so without suggestion everyone drive hard 24/7. I do back you on pussyfooting, people shouldn't be pussy footing anyways. ESPECIALLY in the left lane :mad:.

Anyways the method 9k is talking about is also known as the Italian Tune Up.

Italian tuneup - Wikipedia, the free encyclopedia

I didn't mean 24/7. Just once a day on your drive to school or work...make sure it's safe too.

Manic! 04-16-2012 05:32 PM

Quote:

Originally Posted by jackmeister (Post 7889065)
Might want to see an accountant for that, because everyone has different situations and numbers. But to start, corporate vs personal tax rates. You can go from there.

I have my brother. He says no to leasing.


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