Im looking to buy a 03 Max SE Man. when i started looking at the payments it seems that leasing the car would be a better idea then just an out right finance. The payments for the financing would be 5,000 down with $460 a month for 60 months. or with the leasing it would be 5,000 down with $289 a month for 36 months with the buy out price of $14,200 after the 36 months. after the 36 months i would have about 10,000 and finance the 14,200 i would owe and then keep the car. im just worried about some hidden things im not seeing. the salesman said i have nothing to worry about mileage or anything like that if i buy out the car at the end of the lease. is this true, or is someone leasing their max?

thanks

 

At the termination of a lease like that where you have the option to buy out there is NO penalty for excess mileage. You have nothing to worry about there. Plus you save some money on taxes because they don't tax you for the lease, only when you buy the car. It's a nice little deal. I don't know why more people don't do it. That's what I did. Plus you don't have to put as much down to get the same payments. All in all leasing first and buying out is a great deal if you want to own the car for a long period of time.

 

I leased my max. The only thing you have to worry about is if you want to do signifacant mods and not keep the car. A lot of people frown about leasing, but I look at it this way. I can get a more expensive car at a price I can afford now. Plus that buyout price is somewhat negotiable. I leased my last vehicle, '96 GMC Jimmy and at the end of my lease negotiated a price that was about 3K less than current retail on it.

You will pay more in the long run if you lease then buy out, however, you can spread those payments out over a longer period of time and make it easier to stomach if you know what I mean.

 

another good thing about leasing is you only pay the interest on the 36 months instead of the whole purchase price. financing the car with the 440 a month for 60 months with 5,000 down works out to $31400. leasing the car with 5000 down and 289 a month for 36 months come out to $29604. now thats all without tax, title and license.

 

But remember...you only pay tax on the buyout price. Not the initial price of the car so you save there. If you get a good interest rate on the buyout payments then it is cheaper to lease. Trust me..I've done the math plenty of times.

2002Maxxxima is right about the mods. Although you don't have to worry so much if you don't plan on returning the car. And when you but it out they do smog it so keep that in mind in case you plan on doing any exhaust or intake changes that might change the emissions on the car.

 

well here in jersey they do smog testing for an inspection anyway.

the only thing im worried about is the buy out price changing. the salesman said it wont. cant they change that or is it something pre definded when you buy the car?

 

No it's pre-defined by the payments you make on the initial lease. The only thing that changes in the buyout are the payments (if you choose to make payments) due to interest rate. But that of course is negotiable. A lot of the time the dealers won't give you an interest rate they'll just say $400 for 60 months or something like that. Always ask for the rate....they might ***** and complain, but it only takes a financial calculator which they have anyhow.

 

Having done this once already....You can be sure of this. Your buyout will not go up! If usually you can haggle the buyout price at the end of term. You see, if you walk away at the end of the lease, and your buy out was let's say 15k, but they can only get 10k for it at an auction, then you'd stand a good chance for getting your car for closer to 10k from them. That's what I did. They would rather give the car to you for less than buyout, then have it go to auction and risk losing even more. You see?

 

yea i think that leasing the car is going to be the way i go
i just spoke with my dad's friend who is a GM at another dealership and said that its seems like a good deal, just make sure to get the gap insurance

oh another question:
with leasing is there a minimum for the liability insurance coverage?
i rather keep it somewhat low so it isnt too much a month.

 

Insurance coverage depends on the lender. You really should contact them first. Usually you will need what is called 100/300 which is 100k per person and 300k per accident, plus gap coverage. Your insurance carrier or bank should be able to explain it in greater detail.

 

my insurance quote from prudential was for 300k coverage and that was 1900 for two months
i want to keep my insurance payments as low as i can along with the car payments.

 

That is crazy man! You must be real young an single and live in a high risk area. Your insurance is gonna cost you more than the car! Check out the current thread on 2002 Insurance.

 

oh i didnt mean two months, 6 months or two payments

and yea i saw the thread, and im 21 in northern nj, nj is very high for insurance. and i also have an accident and careless driving ticket on my record.

 

Well, that's a little better...a little.

With rates like that, If you really want a max, you should lease. Then buy it out later, or get something else. That's what I would do. Good luck!

 

thanks

this low interest rates expire on monday so if i do buy the car then it will be then. im just going to double check my insuracne rates monday and see what the final rates would be. but if everything goes to plan i'll be driving my max monday night