05 maxima lease deal!!! is it good??? help
Thread Starter
Senior Member
Joined: Jul 2002
Posts: 176
From: Staten Island NY
05 maxima lease deal!!! is it good??? help
Im about to get a white se with dpp package, basically has all the things but no Navi, its not the elite package thats just use less.. the deal is $411 a month with just the first payment upfront and dmv fees. can i go lower or this is a good deal?
Newbie just Registered
Joined: May 2005
Posts: 2,795
From: LA/OC, CA
Originally Posted by 2k2MaxiBlue
Im about to get a white se with dpp package, basically has all the things but no Navi, its not the elite package thats just use less.. the deal is $411 a month with just the first payment upfront and dmv fees. can i go lower or this is a good deal?
Donating Maxima.org Member
Joined: Jun 2005
Posts: 27
There are lease deals locally for 36 mos, 36K miles, $289/mo + tax. Here's a link for reference: http://www.rosennissan.com/en_US Click on new car specials. Also, local purchase price for an 05 SE with spoiler, mats, mudflaps and DPP is $28,100.
You may want to check into purchasing the car at that price.
You may want to check into purchasing the car at that price.
I agree for a about $100 more a month you can own the car, drive it how you want, when you want, and not worry about mod's or miles being limited.
My car with no money down at signing is a little more thank $100 more than
My car with no money down at signing is a little more thank $100 more than
Newbie just Registered
Joined: May 2005
Posts: 2,795
From: LA/OC, CA
Don't get shoved into a lease agreement that'll cost you at the end just because you want the car, even though it's the BESTEVER car. 
Every one here is right about buying it for a little more a month, but it depends on your situation.
Every one here is right about buying it for a little more a month, but it depends on your situation.
Member
Joined: Dec 2004
Posts: 167
From: norfolk, va
I wouldn't lease it. I'd go ahead and buy it. If you haven't noticed already, this car will put a smile on your face every time to hit the gas. I find myself trying to find excuses to take it for a cruise. That is the case with most of us, so leasing will cost you more in the end because you'll be racking up miles on it just because it is so fun to drive. I got the base SE for 28,xxx so if you can get that one with dpp, it think that is a good deal to purchase it vice leasing. Good luck with whichever decision you make. This is a wonderful car, whether you buy or lease.
Thread Starter
Senior Member
Joined: Jul 2002
Posts: 176
From: Staten Island NY
i always lease, i get sick of it after a while... the msrp on the sticker is 32,900 on this car..so im thinking the 411 price is really good. its 36 months 12k miles im not paying anything upfront other than 1st month and dmv fees which is like 120 with custom plates i think
Member
Joined: Jul 2005
Posts: 105
So your going to pay $15,000 to drive a car for three years?
I will never lease again. I leased a 2000 Blazer ZR2 and when I realized how much I paid over three years and got absolutely NOTHING out of it I told myself I would never lease again.
I guess it's for some though.. I dunno..
I will never lease again. I leased a 2000 Blazer ZR2 and when I realized how much I paid over three years and got absolutely NOTHING out of it I told myself I would never lease again.
I guess it's for some though.. I dunno..
Joined: May 2005
Posts: 10,197
From: Displaced New Yorker in Southern, MD
IMPORTANT ALSO TO CONSIDER!!!
Lease companies will require you to get the Maximum Insurance coverage with the lowest deductable, since they technically still own the vehicle, they could be held liable if you wreck. Last I checked, insurance rates in NYC are out of this world so add that to your monthly cost and then make a decision. Last, $411.00 $ucks for a lease payment, I could lease a 2005 ZO6 Vet for $460. Tell GWEDO, F%ck NO...
Lease companies will require you to get the Maximum Insurance coverage with the lowest deductable, since they technically still own the vehicle, they could be held liable if you wreck. Last I checked, insurance rates in NYC are out of this world so add that to your monthly cost and then make a decision. Last, $411.00 $ucks for a lease payment, I could lease a 2005 ZO6 Vet for $460. Tell GWEDO, F%ck NO...
Newbie just Registered
Joined: May 2005
Posts: 2,795
From: LA/OC, CA
Originally Posted by tbird2340
That's what I was thinking.. Max's are sweet but I might take the Vette!!
$411 per month with No DOWN won't get you in a Vette. What were you thinking?
Member
Joined: Apr 2005
Posts: 94
Let me see if I can shed some light in this forum that leasing is good or bad depending on your situation.
You should lease if you:
1) You want more car for your money. Remember, when you lease you are only paying for the portion of the car you use.
2) You get bored with a car and want a new one about every three years.
3) You take good care of your car and don't expect to mod it. Remember, you must return the car with normal wear and tear.
4) You can keep your mileage to what is required by the lease, such as 3 years 36k, etc. Another nice thing is that it's never out of factory warranty.
5) You have very little money to put down and have good credit. Leasing allows you to put nothing down, but you better have tier 3 credit as most leases go through the manufacturers finance and they require good credit.
6) The car your leasing has a good residual value at the end of the lease. These are closed end leases with a guaranteed value at the end of the lease. Normally a good residual value at the end of a three year lease is between 54 and 64 pct. I'm sure the Max qualifies as it holds it's value. However, something like a PT Crusier or a Chevy Impala would probably be a bad lease deal unless the manufacturer is stupid enough to put a pie in the sky value on the car at the end of three years. Some manufacturers do this to move cars, but that's okay because it's their guarantee and they get to eat it if the car is worth less because this is a closed end lease.
7) You are not stupid enough to buy the car for the residual at the end of the lease. I say that because in most states you would have to pay sales tax again since on the purchase since you didn't own the car. This would depend on how your state taxes a leased vehicle. In Texas you pay full tax at the time of leasing on the whole car and would have to do it again if you bought it at the end. However, in states that tax only on the monthly lease amount this is not usually a problem. Also, if for some reason, the car is actually worth more than the guaranteed residual at the end of the lease, you can buy it and trade it and pocket the difference. Normally, you are better off giving them back the keys and $250 to $300 drop off fee and waving goodbye.
8) The manufacturer is offering a great lease deal. They sometimes do this to relieve their inventory situation and you can get some great deals.
9) You have a trade and are somewhere between 3 and 5k upside down on your trade. Normally you can roll that amount into a lease, still get a decent payment and be out of your upside down situation at the end of the lease. Yes, your payment is a little higher, but you won't be carrying that amount into every other car you buy till eternity.
9) There are some other reasons to lease, but you have to decide what's best in your situation.
You should buy if you:
1) Tend to keep a car more than 5 years.
2) Like to mod your car.
3) You are a high mileage driver. Leases of more than 15k a year are ususally not a good deal.
4) You have a tendancy to trash your car, or, do not want to fix minor accident damage when it happens. Remember, lease guarantees are based on normal wear and tear.
5) The car you want doesn't have a decent residual value. This was like my purchase of a 2002 Sebring Convertible which I bought because the Chrysler residual on a convertible sucked and it was cheaper to buy and try and trade in 3 years.
6) You could want to terminate you lease early. Don't even think about it. It's bad enough to try and trade a 1 to 2 year old car and take a beating, it's another to terminte a lease early. Remember, your payments are based on a declining residual at the end of the lease term and it can get real painful to terminate one early. I know, my dad died some years ago and left a lease vehicle which I had to get rid of. Took a lot of work on my part not to get killed on turning it in early.
Now for some myths:
1) Don't lease because you waste your money and don't own it. Funny. For all of you that buy your cars on 5 to 6 year notes and trade them every 3 years, you don't own them anyway, the bank does. Not only that, but on a five year note, you are usually upside down in your note (you owe more than your car is worth) until about 4 years and 3 months into the note. When you trade and buy a new one, that upside down amount becomes either a down payment by you to get rid of, or, part of your new payment is your old cars updside down amount. The nice thing about a lease is that you are done with that car completely at the end of the lease (maybe a small drop charge of $250 to $300) and you are not at the mercy of a trade in value.
2) You have to have more insurance on a leased vehicle versus purchased. Depends on the state you live and the lease terms. Just be sure you check. On most leases now, there is not a requirement to carry higher insurance. However, most of us should carry liablility of 100k to 300k (this amount used to be required for a lease and still might be in some states and leases) as 20k to 40k leaves too much uninsured liablility for most people with furture earning potential. As for the comp and collision deductible most banks require a $500 max (my bank does) so this should not be much difference in a lease.
3) Fear factor. Everybody seems to think that leasing, or, residual based financing (ie "smart buy", "gold key" which are actual buys, but are setup like leases with a guaranteed residual at the end of a specified term) are bad deals. THEY CAN BE GOOD OR BAD, JUST DEPENDS ON YOUR SITUATION. I sure wish these deals lease or smart buys were available when I was younger and kept buying cars every three years and putting them on 5 year notes. Believe me, I'd would have jumped all over them instead of always being upside down in my trade.
Now for this specific deal:
1) Please remember, except for special factory sponsored lease deals which your case may be, most leases are based solely on amount leased, the lease money factor (interest rate) and guaranteed residual at the end of the lease (gauranteed value of vehicle at end of lease). Therefore, if this is not a factory special, you can negotiate price of the vehicle as a buy and then ask for lease terms based on that pricel. You'd be surprised at what you can save in this type of deal. Again, special factory deals may be different, but if this is not a factory deal, do some wheeling and dealing. Don't let the dealer try and tell you that your negotiated price will lower your guaranteed residual, that's BS, it's always based on MSRP.
2) Now let's do the math. Say you were going to buy and take a 5 year note.
MSRP 32,900 - negotiated down to 28,500 (good price)
add tax, depending on state of approx 1,800
DMV fees 120
Total to Finance 30,420
Over 5 years at about 4 to 5% int. it's about 18.65 per 1k financed or
That's 30.42 * 18.65 -or- 567.33 per month for 60 months
Your deal = $411 per month or 156.33 per month less than a buy.
Hummmmm, let me see. 411 per month for 3 years and I get to walk away or
567 per month for the same 3 years and I'm still upside down on my 5 year note to the tune of 2 to 4k depending on trade conditions at that time.
You do the math. As long as you meet my above requirements of leasing versus buying and your deal is as you stated nothing down but 120 bucks DMV fees, taxes rolled in and no more than a $300 drop charge at the end of lease, you make the call. Seems like a no brainer to me. If you are worried that the dealer is padding the figures, shop it with another dealer. However, no matter what you do, in your case, leasing is the way to go. You get a new car every 3 years, you're always under warranty and your payment on the next car will have nothing to do with your old car/note. Humm, you do the math.
Just a suggestion, but at this time of year with the 06's coming out, you can probably squeeze the dealer into giving you 15k a year or 45k total at the some price. Oh yes, another myth, it's total mileage over a lease not per year. You can drive 20k on year and 8k the last two years, etc.
Sorry to be so long winded guys, but I'm so sick of everybody slamming leasing or residual based financing. For some people it's better than owning and for others it's not. Just remember this when you trade your max for your new G35 or M45 and find it's cheaper to lease one of those than to buy a new Max on the 5 year note plan.
Just one last thing. For anybody leasing or buying with no money down, take a look at spending a few bucks per month and getting "gap" insurance. Should your car be stolen or totalled and you owe more than the insurance payout, this insurance covers the difference. If you put a lot of money down, this makes no sense, but for those of you who will be upside down on your note for the next few years it makes sense, especially on a lease as you are always upside down until lease end. You can always cancel this insurance a few years down the road when your note equals the cars market value. On a lease, check, some leases automatically include this to protect the payoff.
You should lease if you:
1) You want more car for your money. Remember, when you lease you are only paying for the portion of the car you use.
2) You get bored with a car and want a new one about every three years.
3) You take good care of your car and don't expect to mod it. Remember, you must return the car with normal wear and tear.
4) You can keep your mileage to what is required by the lease, such as 3 years 36k, etc. Another nice thing is that it's never out of factory warranty.
5) You have very little money to put down and have good credit. Leasing allows you to put nothing down, but you better have tier 3 credit as most leases go through the manufacturers finance and they require good credit.
6) The car your leasing has a good residual value at the end of the lease. These are closed end leases with a guaranteed value at the end of the lease. Normally a good residual value at the end of a three year lease is between 54 and 64 pct. I'm sure the Max qualifies as it holds it's value. However, something like a PT Crusier or a Chevy Impala would probably be a bad lease deal unless the manufacturer is stupid enough to put a pie in the sky value on the car at the end of three years. Some manufacturers do this to move cars, but that's okay because it's their guarantee and they get to eat it if the car is worth less because this is a closed end lease.
7) You are not stupid enough to buy the car for the residual at the end of the lease. I say that because in most states you would have to pay sales tax again since on the purchase since you didn't own the car. This would depend on how your state taxes a leased vehicle. In Texas you pay full tax at the time of leasing on the whole car and would have to do it again if you bought it at the end. However, in states that tax only on the monthly lease amount this is not usually a problem. Also, if for some reason, the car is actually worth more than the guaranteed residual at the end of the lease, you can buy it and trade it and pocket the difference. Normally, you are better off giving them back the keys and $250 to $300 drop off fee and waving goodbye.
8) The manufacturer is offering a great lease deal. They sometimes do this to relieve their inventory situation and you can get some great deals.
9) You have a trade and are somewhere between 3 and 5k upside down on your trade. Normally you can roll that amount into a lease, still get a decent payment and be out of your upside down situation at the end of the lease. Yes, your payment is a little higher, but you won't be carrying that amount into every other car you buy till eternity.
9) There are some other reasons to lease, but you have to decide what's best in your situation.
You should buy if you:
1) Tend to keep a car more than 5 years.
2) Like to mod your car.
3) You are a high mileage driver. Leases of more than 15k a year are ususally not a good deal.
4) You have a tendancy to trash your car, or, do not want to fix minor accident damage when it happens. Remember, lease guarantees are based on normal wear and tear.
5) The car you want doesn't have a decent residual value. This was like my purchase of a 2002 Sebring Convertible which I bought because the Chrysler residual on a convertible sucked and it was cheaper to buy and try and trade in 3 years.
6) You could want to terminate you lease early. Don't even think about it. It's bad enough to try and trade a 1 to 2 year old car and take a beating, it's another to terminte a lease early. Remember, your payments are based on a declining residual at the end of the lease term and it can get real painful to terminate one early. I know, my dad died some years ago and left a lease vehicle which I had to get rid of. Took a lot of work on my part not to get killed on turning it in early.
Now for some myths:
1) Don't lease because you waste your money and don't own it. Funny. For all of you that buy your cars on 5 to 6 year notes and trade them every 3 years, you don't own them anyway, the bank does. Not only that, but on a five year note, you are usually upside down in your note (you owe more than your car is worth) until about 4 years and 3 months into the note. When you trade and buy a new one, that upside down amount becomes either a down payment by you to get rid of, or, part of your new payment is your old cars updside down amount. The nice thing about a lease is that you are done with that car completely at the end of the lease (maybe a small drop charge of $250 to $300) and you are not at the mercy of a trade in value.
2) You have to have more insurance on a leased vehicle versus purchased. Depends on the state you live and the lease terms. Just be sure you check. On most leases now, there is not a requirement to carry higher insurance. However, most of us should carry liablility of 100k to 300k (this amount used to be required for a lease and still might be in some states and leases) as 20k to 40k leaves too much uninsured liablility for most people with furture earning potential. As for the comp and collision deductible most banks require a $500 max (my bank does) so this should not be much difference in a lease.
3) Fear factor. Everybody seems to think that leasing, or, residual based financing (ie "smart buy", "gold key" which are actual buys, but are setup like leases with a guaranteed residual at the end of a specified term) are bad deals. THEY CAN BE GOOD OR BAD, JUST DEPENDS ON YOUR SITUATION. I sure wish these deals lease or smart buys were available when I was younger and kept buying cars every three years and putting them on 5 year notes. Believe me, I'd would have jumped all over them instead of always being upside down in my trade.
Now for this specific deal:
1) Please remember, except for special factory sponsored lease deals which your case may be, most leases are based solely on amount leased, the lease money factor (interest rate) and guaranteed residual at the end of the lease (gauranteed value of vehicle at end of lease). Therefore, if this is not a factory special, you can negotiate price of the vehicle as a buy and then ask for lease terms based on that pricel. You'd be surprised at what you can save in this type of deal. Again, special factory deals may be different, but if this is not a factory deal, do some wheeling and dealing. Don't let the dealer try and tell you that your negotiated price will lower your guaranteed residual, that's BS, it's always based on MSRP.
2) Now let's do the math. Say you were going to buy and take a 5 year note.
MSRP 32,900 - negotiated down to 28,500 (good price)
add tax, depending on state of approx 1,800
DMV fees 120
Total to Finance 30,420
Over 5 years at about 4 to 5% int. it's about 18.65 per 1k financed or
That's 30.42 * 18.65 -or- 567.33 per month for 60 months
Your deal = $411 per month or 156.33 per month less than a buy.
Hummmmm, let me see. 411 per month for 3 years and I get to walk away or
567 per month for the same 3 years and I'm still upside down on my 5 year note to the tune of 2 to 4k depending on trade conditions at that time.
You do the math. As long as you meet my above requirements of leasing versus buying and your deal is as you stated nothing down but 120 bucks DMV fees, taxes rolled in and no more than a $300 drop charge at the end of lease, you make the call. Seems like a no brainer to me. If you are worried that the dealer is padding the figures, shop it with another dealer. However, no matter what you do, in your case, leasing is the way to go. You get a new car every 3 years, you're always under warranty and your payment on the next car will have nothing to do with your old car/note. Humm, you do the math.
Just a suggestion, but at this time of year with the 06's coming out, you can probably squeeze the dealer into giving you 15k a year or 45k total at the some price. Oh yes, another myth, it's total mileage over a lease not per year. You can drive 20k on year and 8k the last two years, etc.
Sorry to be so long winded guys, but I'm so sick of everybody slamming leasing or residual based financing. For some people it's better than owning and for others it's not. Just remember this when you trade your max for your new G35 or M45 and find it's cheaper to lease one of those than to buy a new Max on the 5 year note plan.
Just one last thing. For anybody leasing or buying with no money down, take a look at spending a few bucks per month and getting "gap" insurance. Should your car be stolen or totalled and you owe more than the insurance payout, this insurance covers the difference. If you put a lot of money down, this makes no sense, but for those of you who will be upside down on your note for the next few years it makes sense, especially on a lease as you are always upside down until lease end. You can always cancel this insurance a few years down the road when your note equals the cars market value. On a lease, check, some leases automatically include this to protect the payoff.
Member
Joined: Apr 2005
Posts: 94
Why thank you David. Sorry to be so long winded, but I'm so tired of seeing leasing bashed by people who don't understand how it works for others. I do about 20 "third baseman" deals a year for friends and it's amazing how ingnorant people can be about different ways to get their dream car. Personally, I've done both leasing and buying over the past few years. I bought my new Max because of mileage concerns, however, my wife's Max should have been a 10k per year lease, but even I couldn't convince her. She thinks she's going to keep it forever. Right!!
Used to get my ex-wife a good lease deal every 3 years because she always wanted more car than she could buy. However, her new hubby convinced her to buy a left over 04 Durango on a 6 year note with a $400 payment with 2k down instead of taking a new lease on either a 05 Durango or Grand Cherokee for about 100 bucks less a month. His arguement, well at the end of six years they will own something. Right!! They won't keep this thing longer than 3 years max, trust me I know, and she will be back having me try to get her a new SUV and get her unburied from the "depreciated" Durango for $350 a month total. Just hope there are some really crazy lease deals floating around about 3 years from now. All buyers should be informed on how to get a car for the least money based on their particular wants and needs. As long as you don't mind a modest car payment at all times and like to drive nice new cars every three years and you meet the mileage requirements you'd be a fool not to lease when you find a good deal. Oh well, enough said. No offense to the women at this site, but since I've been married 3 times, it seems a shame that you can't lease a wife for 3 years, put on low miles and then drop her off for $300 and get a new one. OOOPPPPSSS, JUST KIDDING!!!!!!!!!
Used to get my ex-wife a good lease deal every 3 years because she always wanted more car than she could buy. However, her new hubby convinced her to buy a left over 04 Durango on a 6 year note with a $400 payment with 2k down instead of taking a new lease on either a 05 Durango or Grand Cherokee for about 100 bucks less a month. His arguement, well at the end of six years they will own something. Right!! They won't keep this thing longer than 3 years max, trust me I know, and she will be back having me try to get her a new SUV and get her unburied from the "depreciated" Durango for $350 a month total. Just hope there are some really crazy lease deals floating around about 3 years from now. All buyers should be informed on how to get a car for the least money based on their particular wants and needs. As long as you don't mind a modest car payment at all times and like to drive nice new cars every three years and you meet the mileage requirements you'd be a fool not to lease when you find a good deal. Oh well, enough said. No offense to the women at this site, but since I've been married 3 times, it seems a shame that you can't lease a wife for 3 years, put on low miles and then drop her off for $300 and get a new one. OOOPPPPSSS, JUST KIDDING!!!!!!!!!
Joined: May 2005
Posts: 10,197
From: Displaced New Yorker in Southern, MD
Originally Posted by jinsatx
Let me see if I can shed some light in this forum that leasing is good or bad depending on your situation.
You should lease if you:
1) You want more car for your money. Remember, when you lease you are only paying for the portion of the car you use.
2) You get bored with a car and want a new one about every three years.
3) You take good care of your car and don't expect to mod it. Remember, you must return the car with normal wear and tear.
4) You can keep your mileage to what is required by the lease, such as 3 years 36k, etc. Another nice thing is that it's never out of factory warranty.
5) You have very little money to put down and have good credit. Leasing allows you to put nothing down, but you better have tier 3 credit as most leases go through the manufacturers finance and they require good credit.
6) The car your leasing has a good residual value at the end of the lease. These are closed end leases with a guaranteed value at the end of the lease. Normally a good residual value at the end of a three year lease is between 54 and 64 pct. I'm sure the Max qualifies as it holds it's value. However, something like a PT Crusier or a Chevy Impala would probably be a bad lease deal unless the manufacturer is stupid enough to put a pie in the sky value on the car at the end of three years. Some manufacturers do this to move cars, but that's okay because it's their guarantee and they get to eat it if the car is worth less because this is a closed end lease.
7) You are not stupid enough to buy the car for the residual at the end of the lease. I say that because in most states you would have to pay sales tax again since on the purchase since you didn't own the car. This would depend on how your state taxes a leased vehicle. In Texas you pay full tax at the time of leasing on the whole car and would have to do it again if you bought it at the end. However, in states that tax only on the monthly lease amount this is not usually a problem. Also, if for some reason, the car is actually worth more than the guaranteed residual at the end of the lease, you can buy it and trade it and pocket the difference. Normally, you are better off giving them back the keys and $250 to $300 drop off fee and waving goodbye.
8) The manufacturer is offering a great lease deal. They sometimes do this to relieve their inventory situation and you can get some great deals.
9) You have a trade and are somewhere between 3 and 5k upside down on your trade. Normally you can roll that amount into a lease, still get a decent payment and be out of your upside down situation at the end of the lease. Yes, your payment is a little higher, but you won't be carrying that amount into every other car you buy till eternity.
9) There are some other reasons to lease, but you have to decide what's best in your situation.
You should buy if you:
1) Tend to keep a car more than 5 years.
2) Like to mod your car.
3) You are a high mileage driver. Leases of more than 15k a year are ususally not a good deal.
4) You have a tendancy to trash your car, or, do not want to fix minor accident damage when it happens. Remember, lease guarantees are based on normal wear and tear.
5) The car you want doesn't have a decent residual value. This was like my purchase of a 2002 Sebring Convertible which I bought because the Chrysler residual on a convertible sucked and it was cheaper to buy and try and trade in 3 years.
6) You could want to terminate you lease early. Don't even think about it. It's bad enough to try and trade a 1 to 2 year old car and take a beating, it's another to terminte a lease early. Remember, your payments are based on a declining residual at the end of the lease term and it can get real painful to terminate one early. I know, my dad died some years ago and left a lease vehicle which I had to get rid of. Took a lot of work on my part not to get killed on turning it in early.
Now for some myths:
1) Don't lease because you waste your money and don't own it. Funny. For all of you that buy your cars on 5 to 6 year notes and trade them every 3 years, you don't own them anyway, the bank does. Not only that, but on a five year note, you are usually upside down in your note (you owe more than your car is worth) until about 4 years and 3 months into the note. When you trade and buy a new one, that upside down amount becomes either a down payment by you to get rid of, or, part of your new payment is your old cars updside down amount. The nice thing about a lease is that you are done with that car completely at the end of the lease (maybe a small drop charge of $250 to $300) and you are not at the mercy of a trade in value.
2) You have to have more insurance on a leased vehicle versus purchased. Depends on the state you live and the lease terms. Just be sure you check. On most leases now, there is not a requirement to carry higher insurance. However, most of us should carry liablility of 100k to 300k (this amount used to be required for a lease and still might be in some states and leases) as 20k to 40k leaves too much uninsured liablility for most people with furture earning potential. As for the comp and collision deductible most banks require a $500 max (my bank does) so this should not be much difference in a lease.
3) Fear factor. Everybody seems to think that leasing, or, residual based financing (ie "smart buy", "gold key" which are actual buys, but are setup like leases with a guaranteed residual at the end of a specified term) are bad deals. THEY CAN BE GOOD OR BAD, JUST DEPENDS ON YOUR SITUATION. I sure wish these deals lease or smart buys were available when I was younger and kept buying cars every three years and putting them on 5 year notes. Believe me, I'd would have jumped all over them instead of always being upside down in my trade.
Now for this specific deal:
1) Please remember, except for special factory sponsored lease deals which your case may be, most leases are based solely on amount leased, the lease money factor (interest rate) and guaranteed residual at the end of the lease (gauranteed value of vehicle at end of lease). Therefore, if this is not a factory special, you can negotiate price of the vehicle as a buy and then ask for lease terms based on that pricel. You'd be surprised at what you can save in this type of deal. Again, special factory deals may be different, but if this is not a factory deal, do some wheeling and dealing. Don't let the dealer try and tell you that your negotiated price will lower your guaranteed residual, that's BS, it's always based on MSRP.
2) Now let's do the math. Say you were going to buy and take a 5 year note.
MSRP 32,900 - negotiated down to 28,500 (good price)
add tax, depending on state of approx 1,800
DMV fees 120
Total to Finance 30,420
Over 5 years at about 4 to 5% int. it's about 18.65 per 1k financed or
That's 30.42 * 18.65 -or- 567.33 per month for 60 months
Your deal = $411 per month or 156.33 per month less than a buy.
Hummmmm, let me see. 411 per month for 3 years and I get to walk away or
567 per month for the same 3 years and I'm still upside down on my 5 year note to the tune of 2 to 4k depending on trade conditions at that time.
You do the math. As long as you meet my above requirements of leasing versus buying and your deal is as you stated nothing down but 120 bucks DMV fees, taxes rolled in and no more than a $300 drop charge at the end of lease, you make the call. Seems like a no brainer to me. If you are worried that the dealer is padding the figures, shop it with another dealer. However, no matter what you do, in your case, leasing is the way to go. You get a new car every 3 years, you're always under warranty and your payment on the next car will have nothing to do with your old car/note. Humm, you do the math.
Just a suggestion, but at this time of year with the 06's coming out, you can probably squeeze the dealer into giving you 15k a year or 45k total at the some price. Oh yes, another myth, it's total mileage over a lease not per year. You can drive 20k on year and 8k the last two years, etc.
Sorry to be so long winded guys, but I'm so sick of everybody slamming leasing or residual based financing. For some people it's better than owning and for others it's not. Just remember this when you trade your max for your new G35 or M45 and find it's cheaper to lease one of those than to buy a new Max on the 5 year note plan.
Just one last thing. For anybody leasing or buying with no money down, take a look at spending a few bucks per month and getting "gap" insurance. Should your car be stolen or totalled and you owe more than the insurance payout, this insurance covers the difference. If you put a lot of money down, this makes no sense, but for those of you who will be upside down on your note for the next few years it makes sense, especially on a lease as you are always upside down until lease end. You can always cancel this insurance a few years down the road when your note equals the cars market value. On a lease, check, some leases automatically include this to protect the payoff.
You should lease if you:
1) You want more car for your money. Remember, when you lease you are only paying for the portion of the car you use.
2) You get bored with a car and want a new one about every three years.
3) You take good care of your car and don't expect to mod it. Remember, you must return the car with normal wear and tear.
4) You can keep your mileage to what is required by the lease, such as 3 years 36k, etc. Another nice thing is that it's never out of factory warranty.
5) You have very little money to put down and have good credit. Leasing allows you to put nothing down, but you better have tier 3 credit as most leases go through the manufacturers finance and they require good credit.
6) The car your leasing has a good residual value at the end of the lease. These are closed end leases with a guaranteed value at the end of the lease. Normally a good residual value at the end of a three year lease is between 54 and 64 pct. I'm sure the Max qualifies as it holds it's value. However, something like a PT Crusier or a Chevy Impala would probably be a bad lease deal unless the manufacturer is stupid enough to put a pie in the sky value on the car at the end of three years. Some manufacturers do this to move cars, but that's okay because it's their guarantee and they get to eat it if the car is worth less because this is a closed end lease.
7) You are not stupid enough to buy the car for the residual at the end of the lease. I say that because in most states you would have to pay sales tax again since on the purchase since you didn't own the car. This would depend on how your state taxes a leased vehicle. In Texas you pay full tax at the time of leasing on the whole car and would have to do it again if you bought it at the end. However, in states that tax only on the monthly lease amount this is not usually a problem. Also, if for some reason, the car is actually worth more than the guaranteed residual at the end of the lease, you can buy it and trade it and pocket the difference. Normally, you are better off giving them back the keys and $250 to $300 drop off fee and waving goodbye.
8) The manufacturer is offering a great lease deal. They sometimes do this to relieve their inventory situation and you can get some great deals.
9) You have a trade and are somewhere between 3 and 5k upside down on your trade. Normally you can roll that amount into a lease, still get a decent payment and be out of your upside down situation at the end of the lease. Yes, your payment is a little higher, but you won't be carrying that amount into every other car you buy till eternity.
9) There are some other reasons to lease, but you have to decide what's best in your situation.
You should buy if you:
1) Tend to keep a car more than 5 years.
2) Like to mod your car.
3) You are a high mileage driver. Leases of more than 15k a year are ususally not a good deal.
4) You have a tendancy to trash your car, or, do not want to fix minor accident damage when it happens. Remember, lease guarantees are based on normal wear and tear.
5) The car you want doesn't have a decent residual value. This was like my purchase of a 2002 Sebring Convertible which I bought because the Chrysler residual on a convertible sucked and it was cheaper to buy and try and trade in 3 years.
6) You could want to terminate you lease early. Don't even think about it. It's bad enough to try and trade a 1 to 2 year old car and take a beating, it's another to terminte a lease early. Remember, your payments are based on a declining residual at the end of the lease term and it can get real painful to terminate one early. I know, my dad died some years ago and left a lease vehicle which I had to get rid of. Took a lot of work on my part not to get killed on turning it in early.
Now for some myths:
1) Don't lease because you waste your money and don't own it. Funny. For all of you that buy your cars on 5 to 6 year notes and trade them every 3 years, you don't own them anyway, the bank does. Not only that, but on a five year note, you are usually upside down in your note (you owe more than your car is worth) until about 4 years and 3 months into the note. When you trade and buy a new one, that upside down amount becomes either a down payment by you to get rid of, or, part of your new payment is your old cars updside down amount. The nice thing about a lease is that you are done with that car completely at the end of the lease (maybe a small drop charge of $250 to $300) and you are not at the mercy of a trade in value.
2) You have to have more insurance on a leased vehicle versus purchased. Depends on the state you live and the lease terms. Just be sure you check. On most leases now, there is not a requirement to carry higher insurance. However, most of us should carry liablility of 100k to 300k (this amount used to be required for a lease and still might be in some states and leases) as 20k to 40k leaves too much uninsured liablility for most people with furture earning potential. As for the comp and collision deductible most banks require a $500 max (my bank does) so this should not be much difference in a lease.
3) Fear factor. Everybody seems to think that leasing, or, residual based financing (ie "smart buy", "gold key" which are actual buys, but are setup like leases with a guaranteed residual at the end of a specified term) are bad deals. THEY CAN BE GOOD OR BAD, JUST DEPENDS ON YOUR SITUATION. I sure wish these deals lease or smart buys were available when I was younger and kept buying cars every three years and putting them on 5 year notes. Believe me, I'd would have jumped all over them instead of always being upside down in my trade.
Now for this specific deal:
1) Please remember, except for special factory sponsored lease deals which your case may be, most leases are based solely on amount leased, the lease money factor (interest rate) and guaranteed residual at the end of the lease (gauranteed value of vehicle at end of lease). Therefore, if this is not a factory special, you can negotiate price of the vehicle as a buy and then ask for lease terms based on that pricel. You'd be surprised at what you can save in this type of deal. Again, special factory deals may be different, but if this is not a factory deal, do some wheeling and dealing. Don't let the dealer try and tell you that your negotiated price will lower your guaranteed residual, that's BS, it's always based on MSRP.
2) Now let's do the math. Say you were going to buy and take a 5 year note.
MSRP 32,900 - negotiated down to 28,500 (good price)
add tax, depending on state of approx 1,800
DMV fees 120
Total to Finance 30,420
Over 5 years at about 4 to 5% int. it's about 18.65 per 1k financed or
That's 30.42 * 18.65 -or- 567.33 per month for 60 months
Your deal = $411 per month or 156.33 per month less than a buy.
Hummmmm, let me see. 411 per month for 3 years and I get to walk away or
567 per month for the same 3 years and I'm still upside down on my 5 year note to the tune of 2 to 4k depending on trade conditions at that time.
You do the math. As long as you meet my above requirements of leasing versus buying and your deal is as you stated nothing down but 120 bucks DMV fees, taxes rolled in and no more than a $300 drop charge at the end of lease, you make the call. Seems like a no brainer to me. If you are worried that the dealer is padding the figures, shop it with another dealer. However, no matter what you do, in your case, leasing is the way to go. You get a new car every 3 years, you're always under warranty and your payment on the next car will have nothing to do with your old car/note. Humm, you do the math.
Just a suggestion, but at this time of year with the 06's coming out, you can probably squeeze the dealer into giving you 15k a year or 45k total at the some price. Oh yes, another myth, it's total mileage over a lease not per year. You can drive 20k on year and 8k the last two years, etc.
Sorry to be so long winded guys, but I'm so sick of everybody slamming leasing or residual based financing. For some people it's better than owning and for others it's not. Just remember this when you trade your max for your new G35 or M45 and find it's cheaper to lease one of those than to buy a new Max on the 5 year note plan.
Just one last thing. For anybody leasing or buying with no money down, take a look at spending a few bucks per month and getting "gap" insurance. Should your car be stolen or totalled and you owe more than the insurance payout, this insurance covers the difference. If you put a lot of money down, this makes no sense, but for those of you who will be upside down on your note for the next few years it makes sense, especially on a lease as you are always upside down until lease end. You can always cancel this insurance a few years down the road when your note equals the cars market value. On a lease, check, some leases automatically include this to protect the payoff.
Member
Joined: Apr 2005
Posts: 94
Chern,
You just don't get it do you. I said it's not for everybody. It's for those of us who don't ever really own a car since we trade them before the notes up and we want to drive a new G35's every 3 years for the same payment as a 5 year note on a Max, and, for which two of those years that Max is three years old and out of warranty.
Now let's do the math on your equity idea. Now keep in mind, equity is great if you keep the car for at least two years longer than your note. Otherwise....
32,900 car discounted to 28.5 +ttl = 30.5k approx. out the door
5 year note at an extremely good interest rate of 4 to 5% = 568 a month x 60 = 34,080 total cost at the end of 5 years. Trade in value on a 5 year old Max with reasonable mileage and in excellent condition approx. 12k. Total cost 34,080 - trade value 12,000 = 22,080 give or take a couple of bucks.
Same car or something better every 3 years at $400 to 415 a month = 60 x 400 to 415 = 24,000 to 24,900.
So for 30 to 45 bucks more a month on a lease you get a new car every three years, no warranty/repair worries, etc. etc. Also, if you would want to turn in your 5 year note Max at the end of 3 years the lease is way cheaper.
Like I said leasing is not for everybody, but it does not SUCK for everybody either. if you can live within the mileage terms, don't mod your car, take care of your car, always want a newer car/never keep your car past the note life anyway, you might just be better with a lease than a buy. Especially when there is a special factory lease offer out there.
As for increased insurance requirements. Not true in all leases or states. Used to be, but not any more. Don't know about you, but I carry 100/300 liability and $250 comp/col. deductible now and I know that leases do not even require that much coverage. Believe me, unless you are going with minimum liabiltiy coverage and really high comp/col. deductibles there is really no difference in insurance costs.
Like I said Chern, to each their own, but let's not say that all leases SUCK. Not fair and the math doesn't support it either.
You just don't get it do you. I said it's not for everybody. It's for those of us who don't ever really own a car since we trade them before the notes up and we want to drive a new G35's every 3 years for the same payment as a 5 year note on a Max, and, for which two of those years that Max is three years old and out of warranty.
Now let's do the math on your equity idea. Now keep in mind, equity is great if you keep the car for at least two years longer than your note. Otherwise....
32,900 car discounted to 28.5 +ttl = 30.5k approx. out the door
5 year note at an extremely good interest rate of 4 to 5% = 568 a month x 60 = 34,080 total cost at the end of 5 years. Trade in value on a 5 year old Max with reasonable mileage and in excellent condition approx. 12k. Total cost 34,080 - trade value 12,000 = 22,080 give or take a couple of bucks.
Same car or something better every 3 years at $400 to 415 a month = 60 x 400 to 415 = 24,000 to 24,900.
So for 30 to 45 bucks more a month on a lease you get a new car every three years, no warranty/repair worries, etc. etc. Also, if you would want to turn in your 5 year note Max at the end of 3 years the lease is way cheaper.
Like I said leasing is not for everybody, but it does not SUCK for everybody either. if you can live within the mileage terms, don't mod your car, take care of your car, always want a newer car/never keep your car past the note life anyway, you might just be better with a lease than a buy. Especially when there is a special factory lease offer out there.
As for increased insurance requirements. Not true in all leases or states. Used to be, but not any more. Don't know about you, but I carry 100/300 liability and $250 comp/col. deductible now and I know that leases do not even require that much coverage. Believe me, unless you are going with minimum liabiltiy coverage and really high comp/col. deductibles there is really no difference in insurance costs.
Like I said Chern, to each their own, but let's not say that all leases SUCK. Not fair and the math doesn't support it either.
Joined: May 2005
Posts: 10,197
From: Displaced New Yorker in Southern, MD
Originally Posted by jinsatx
Chern,
You just don't get it do you. I said it's not for everybody. It's for those of us who don't ever really own a car since we trade them before the notes up and we want to drive a new G35's every 3 years for the same payment as a 5 year note on a Max, and, for which two of those years that Max is three years old and out of warranty.
Now let's do the math on your equity idea. Now keep in mind, equity is great if you keep the car for at least two years longer than your note. Otherwise....
32,900 car discounted to 28.5 +ttl = 30.5k approx. out the door
5 year note at an extremely good interest rate of 4 to 5% = 568 a month x 60 = 34,080 total cost at the end of 5 years. Trade in value on a 5 year old Max with reasonable mileage and in excellent condition approx. 12k. Total cost 34,080 - trade value 12,000 = 22,080 give or take a couple of bucks.
Same car or something better every 3 years at $400 to 415 a month = 60 x 400 to 415 = 24,000 to 24,900.
So for 30 to 45 bucks more a month on a lease you get a new car every three years, no warranty/repair worries, etc. etc. Also, if you would want to turn in your 5 year note Max at the end of 3 years the lease is way cheaper.
Like I said leasing is not for everybody, but it does not SUCK for everybody either. if you can live within the mileage terms, don't mod your car, take care of your car, always want a newer car/never keep your car past the note life anyway, you might just be better with a lease than a buy. Especially when there is a special factory lease offer out there.
As for increased insurance requirements. Not true in all leases or states. Used to be, but not any more. Don't know about you, but I carry 100/300 liability and $250 comp/col. deductible now and I know that leases do not even require that much coverage. Believe me, unless you are going with minimum liabiltiy coverage and really high comp/col. deductibles there is really no difference in insurance costs.
Like I said Chern, to each their own, but let's not say that all leases SUCK. Not fair and the math doesn't support it either.
You just don't get it do you. I said it's not for everybody. It's for those of us who don't ever really own a car since we trade them before the notes up and we want to drive a new G35's every 3 years for the same payment as a 5 year note on a Max, and, for which two of those years that Max is three years old and out of warranty.
Now let's do the math on your equity idea. Now keep in mind, equity is great if you keep the car for at least two years longer than your note. Otherwise....
32,900 car discounted to 28.5 +ttl = 30.5k approx. out the door
5 year note at an extremely good interest rate of 4 to 5% = 568 a month x 60 = 34,080 total cost at the end of 5 years. Trade in value on a 5 year old Max with reasonable mileage and in excellent condition approx. 12k. Total cost 34,080 - trade value 12,000 = 22,080 give or take a couple of bucks.
Same car or something better every 3 years at $400 to 415 a month = 60 x 400 to 415 = 24,000 to 24,900.
So for 30 to 45 bucks more a month on a lease you get a new car every three years, no warranty/repair worries, etc. etc. Also, if you would want to turn in your 5 year note Max at the end of 3 years the lease is way cheaper.
Like I said leasing is not for everybody, but it does not SUCK for everybody either. if you can live within the mileage terms, don't mod your car, take care of your car, always want a newer car/never keep your car past the note life anyway, you might just be better with a lease than a buy. Especially when there is a special factory lease offer out there.
As for increased insurance requirements. Not true in all leases or states. Used to be, but not any more. Don't know about you, but I carry 100/300 liability and $250 comp/col. deductible now and I know that leases do not even require that much coverage. Believe me, unless you are going with minimum liabiltiy coverage and really high comp/col. deductibles there is really no difference in insurance costs.
Like I said Chern, to each their own, but let's not say that all leases SUCK. Not fair and the math doesn't support it either.
Newbie just Registered
Joined: May 2005
Posts: 2,795
From: LA/OC, CA
Originally Posted by chernmax
Let me think, I own a car and even though your driving a new one every 3 years you still are paying higher insurance and a never ending car note. Let's agree to disagree, leases still suck TO ME...
and all maintenance (tires, brakes, etc.), this is worth it. If you lease a car to get more car than you can afford to buy, I'm with you.
Senior Member
Joined: Jun 2005
Posts: 230
Well for comparison sake I have a 2005 SE with just a spoiler, flaps, tinted windows, dealer added paint and interior protectant (I know..but I didn't pay for it) and mats. The car ended up being just a shade over $24,000 and even after being raked over by TTL, I still only pay right at $400/month for it (less than what a lease would be for many miles at all).
I did go for 72 months to do it but since I drove my last Maxima for over eight years (man I loved that car...should have kept her another year or two) I didn't feel bad extending the term to that.
I did go for 72 months to do it but since I drove my last Maxima for over eight years (man I loved that car...should have kept her another year or two) I didn't feel bad extending the term to that.
Member
Joined: Apr 2005
Posts: 94
Darnips,
Glad it worked for you as a buy. Like I said leases/smart buys don't work for everyone but you shouldn't be afraid of them.
If you keep this car 8 years you are a winner. However, if you meet the leasing requirements on mileage, etc. and you trade your car before your note is up or just as your note is up (therefore, having a perpetual car payment anyway) it would have been better to lease/smart buy. For about $375 a month or a little less, you could have two similar Max's over that same 6 year time period. You would always be under warranty and would be driving a fresh car every 3 years. For long term buyers who keep cars 7, 8, 9, years etc., buying is the way to go. However, if you are like most of my friends who want new ones every 3 or 4 years and want more car than they can afford on a staight buy, leasing/smart buys make more sense. Same perpetual payment, but you always have a fresh car. Depends on how you look at it. I've purchased vehicles both ways, just depended on the situation when I was ready to deal.
Glad it worked for you as a buy. Like I said leases/smart buys don't work for everyone but you shouldn't be afraid of them.
If you keep this car 8 years you are a winner. However, if you meet the leasing requirements on mileage, etc. and you trade your car before your note is up or just as your note is up (therefore, having a perpetual car payment anyway) it would have been better to lease/smart buy. For about $375 a month or a little less, you could have two similar Max's over that same 6 year time period. You would always be under warranty and would be driving a fresh car every 3 years. For long term buyers who keep cars 7, 8, 9, years etc., buying is the way to go. However, if you are like most of my friends who want new ones every 3 or 4 years and want more car than they can afford on a staight buy, leasing/smart buys make more sense. Same perpetual payment, but you always have a fresh car. Depends on how you look at it. I've purchased vehicles both ways, just depended on the situation when I was ready to deal.
Joined: May 2005
Posts: 10,197
From: Displaced New Yorker in Southern, MD
Originally Posted by RHMax
I own my Max, but I have a lease on another car. I write off the lease payment as business expense. I get back about 30% on the lease plus ALL gas and all maintenance (tires, brakes, etc.), this is worth it. If you lease a car to get more car than you can afford to buy, I'm with you.
and all maintenance (tires, brakes, etc.), this is worth it. If you lease a car to get more car than you can afford to buy, I'm with you.
Member
Joined: Sep 2004
Posts: 41
Another good thing about a lease is that if you decided to buy, you got to "test drive" your car for 3 years. If the car has been running good mechanically, then extend the warranty and purchase the car. If it's been a headache like some cars on this forum give it back and find something else.
Also, correct me if I'm wrong, but if you keep your mileage limit way below the terms of the lease, then the residual value will likely be lower than the car's actual value. I have a 45k 3 year lease, and there is no way I'm going to put that many miles on the car. I should end up with 36-38k miles on it by the time the lease is up. I have a good feeling that a 3 year old SL w/ only 37k miles will go for more than my residual value, therefore giving me a good deal if I decide to purchase.
Also, correct me if I'm wrong, but if you keep your mileage limit way below the terms of the lease, then the residual value will likely be lower than the car's actual value. I have a 45k 3 year lease, and there is no way I'm going to put that many miles on the car. I should end up with 36-38k miles on it by the time the lease is up. I have a good feeling that a 3 year old SL w/ only 37k miles will go for more than my residual value, therefore giving me a good deal if I decide to purchase.
Member
Joined: Apr 2005
Posts: 94
Chern,
I couldn't agree with your last comment more. You are absolutely right. Buy what you can afford, pay it off, and drive it till the wheels go square and use that "wasted" payment money on other things. However, humans today aren't built that way any more. We want more than we can afford and something new and different all too often. For those type of people, leasing/smart buys make sense. For you and my wife, they don't. Just depends on how you want to spend your money. God forbid we should save some for a rainy day. Don't know how people live from hand to mouth today, but many many people I know just live from paycheck to paycheck. Yes, they have a nice new car, a big house, a boat, etc., but they are 1000's in debt barely making the monthly nut and if they hit a downturn, like losing a job, all hell breaks loose. I'm 57 and can't live that way, too much chance of being "riffed" in the next company cutback as all us "old guys" get cut first. Guess if you're 20 or 30 something it's different. That's why the car industry came up with residual based financing either by lease or smart buy.
I couldn't agree with your last comment more. You are absolutely right. Buy what you can afford, pay it off, and drive it till the wheels go square and use that "wasted" payment money on other things. However, humans today aren't built that way any more. We want more than we can afford and something new and different all too often. For those type of people, leasing/smart buys make sense. For you and my wife, they don't. Just depends on how you want to spend your money. God forbid we should save some for a rainy day. Don't know how people live from hand to mouth today, but many many people I know just live from paycheck to paycheck. Yes, they have a nice new car, a big house, a boat, etc., but they are 1000's in debt barely making the monthly nut and if they hit a downturn, like losing a job, all hell breaks loose. I'm 57 and can't live that way, too much chance of being "riffed" in the next company cutback as all us "old guys" get cut first. Guess if you're 20 or 30 something it's different. That's why the car industry came up with residual based financing either by lease or smart buy.
Supporting Maxima.org Member
Joined: Aug 2003
Posts: 1,036
I think Leasing is a great option for some people. Me for example: I buy/sell cars every year. I've owned 5 cars in 3 years. Now i've never taken a loss once on them its still risky to turn around a car so quickly. I leased my Maxima a base SE with 1k down that covered the first payment and monthly is only $279. Now keep in mind its my second car but still I couldn't pass up that kind of deal. What I like about the lease is it keeps me in the car for 3 years. Otherwise i'd just sell it when i'm bored.
I look at it this way...
$1000 down + 35 payments of $279 = $10,765
So...most people would say hey you just wasted 10,000 for nothing. But I look at it like this, i just spend 10k over 3 years to drive a great car. If I went out and bought a Civic for 10k and financed it for 3 years not only would be payments be higher, i'd be driving less of a car and probably putting money into it to keep it on the road. Plus at the end of the 3 years id' be left with a civic with tons of miles that wouldn't be worth **** anyway. Thats just my take on things. Now I got a great deal on the car which probably has something to do with the fact I bought 2 maximas, a Z and G35 from the same dealer over the years. Anyhow...take what I say for what its worth. Just keep in mind that I've been through both Buy/Lease and it all depends on whos paying for them. Just don't listen to people who have no idea what they are talking about.
I look at it this way...
$1000 down + 35 payments of $279 = $10,765
So...most people would say hey you just wasted 10,000 for nothing. But I look at it like this, i just spend 10k over 3 years to drive a great car. If I went out and bought a Civic for 10k and financed it for 3 years not only would be payments be higher, i'd be driving less of a car and probably putting money into it to keep it on the road. Plus at the end of the 3 years id' be left with a civic with tons of miles that wouldn't be worth **** anyway. Thats just my take on things. Now I got a great deal on the car which probably has something to do with the fact I bought 2 maximas, a Z and G35 from the same dealer over the years. Anyhow...take what I say for what its worth. Just keep in mind that I've been through both Buy/Lease and it all depends on whos paying for them. Just don't listen to people who have no idea what they are talking about.
Member
Joined: Apr 2005
Posts: 94
Leftfoot,
Normally you don't want to buy the car at the end of the lease as some manufacturers put way too high residuals on their cars just to move them. My 2k Passat was that way, I dropped it off for the $250 and waved goodbye. The GM at the dealership said if I wanted the car after VW paid them on the residual I could buy it back from him for $2500 less than the residual. However, if the car is hot and the market is right and you keep the mileage low, it could make sense to buy at the residual. Just depends on the market.
Normally you don't want to buy the car at the end of the lease as some manufacturers put way too high residuals on their cars just to move them. My 2k Passat was that way, I dropped it off for the $250 and waved goodbye. The GM at the dealership said if I wanted the car after VW paid them on the residual I could buy it back from him for $2500 less than the residual. However, if the car is hot and the market is right and you keep the mileage low, it could make sense to buy at the residual. Just depends on the market.
Member
Joined: Sep 2004
Posts: 41
Originally Posted by jinsatx
Leftfoot,
Normally you don't want to buy the car at the end of the lease as some manufacturers put way too high residuals on their cars just to move them. My 2k Passat was that way, I dropped it off for the $250 and waved goodbye. The GM at the dealership said if I wanted the car after VW paid them on the residual I could buy it back from him for $2500 less than the residual. However, if the car is hot and the market is right and you keep the mileage low, it could make sense to buy at the residual. Just depends on the market.
Normally you don't want to buy the car at the end of the lease as some manufacturers put way too high residuals on their cars just to move them. My 2k Passat was that way, I dropped it off for the $250 and waved goodbye. The GM at the dealership said if I wanted the car after VW paid them on the residual I could buy it back from him for $2500 less than the residual. However, if the car is hot and the market is right and you keep the mileage low, it could make sense to buy at the residual. Just depends on the market.
Thanks for the input. For your Passat, did you use Blue Book values to compare your residual value, or research the price of a similar vehicle at the local dealerships?
Member
Joined: Apr 2005
Posts: 94
Leftfoot,
I researched the price based on current market values and it made no sense to buy the car at the residual that VW put on it. Blue book is nice, but it can miss the mark by miles especially in a down used car market.
Just as a side note. If anybody is thinking of taking those GM, Ford, or, Chrysler "family" deals, don't do a straight buy because the value on the used car market 3 years from now will be in the dumper. Take a lease or smart buy as the basis for these deals is the "family" price, but the residual is based on MSRP. Believe me, if you want one of these cars they are a steal on a lease or smart buy as you get one hell of a low payment and no "downside" three years from now. Keep your term to no more than 39-42 months as 48-60 month deals stink. At 48 to 60 months you might as well buy it.
I researched the price based on current market values and it made no sense to buy the car at the residual that VW put on it. Blue book is nice, but it can miss the mark by miles especially in a down used car market.
Just as a side note. If anybody is thinking of taking those GM, Ford, or, Chrysler "family" deals, don't do a straight buy because the value on the used car market 3 years from now will be in the dumper. Take a lease or smart buy as the basis for these deals is the "family" price, but the residual is based on MSRP. Believe me, if you want one of these cars they are a steal on a lease or smart buy as you get one hell of a low payment and no "downside" three years from now. Keep your term to no more than 39-42 months as 48-60 month deals stink. At 48 to 60 months you might as well buy it.
Newbie - Just Registered
Joined: Jul 2005
Posts: 7
I've leased the last 3 of my vehicles, Cavalier, Altima, Altima.
On the first Altima I completed 2 years of a 4 year lease, tossed it in early (100k)for another Altima. I'm in outside sales so I was putting 50K per year at least. Should I have kept the first altima I would have paid about $10K in extra Km at the end of the 4 year lese.
Leased the second Altima this past December. Can't say I enjoyed buying the same car. The '05 Altima wasn't as nice as the '03. I also went from Auto to 5 manual trans...seats just were not comfortable.
Big mistake leasing for me as I put so many Km's on the vehicle. This in mind, today I just bought a '05 Max SE (6sp man) demo model (12K) for $35K CND...plus taxes = 41K ( 15% tax), $650 month payments for 72 months @ 2.8%. Anyway, for me buying made sense, especially since I love the ride. Wouldn't of bought the Altima, but it didn't take much for me to decide to buy the Max. I can see myself driving this car for 4 years min...maybe not 6 as that would mean about 300k.
Sorry for the Metric boys...blame the french
use a x1.25 to go to US Funds.
Cheers,
Jaret.
On the first Altima I completed 2 years of a 4 year lease, tossed it in early (100k)for another Altima. I'm in outside sales so I was putting 50K per year at least. Should I have kept the first altima I would have paid about $10K in extra Km at the end of the 4 year lese.
Leased the second Altima this past December. Can't say I enjoyed buying the same car. The '05 Altima wasn't as nice as the '03. I also went from Auto to 5 manual trans...seats just were not comfortable.
Big mistake leasing for me as I put so many Km's on the vehicle. This in mind, today I just bought a '05 Max SE (6sp man) demo model (12K) for $35K CND...plus taxes = 41K ( 15% tax), $650 month payments for 72 months @ 2.8%. Anyway, for me buying made sense, especially since I love the ride. Wouldn't of bought the Altima, but it didn't take much for me to decide to buy the Max. I can see myself driving this car for 4 years min...maybe not 6 as that would mean about 300k.
Sorry for the Metric boys...blame the french
use a x1.25 to go to US Funds.Cheers,
Jaret.
Member
Joined: Oct 2004
Posts: 39
Can't agree more on the leasing thing being a good. Another note is that you can usually buy the vehice at wholesale value at the end of the lease depending on the bank you lease from, which is almost always significantly less than buy out price. Especially in the case of the Max, which won't hold it's value. I won't go in to all of the details, but when you crunch all of the numbers it comes out about the same as if you had bought it. I know because I did this on a 95 Corolla. Bought it $6000.00 below the buy out price at the end of the 2 year lease. We loved the car and got a great deal on the lease and the buy.
Another note is that many banks that you lease from include the gap insurance. For instance, I'm with National City and it's included. I'm in OH and there are no special requirements for insurance. I have 250 comp and 500 collision with a 100/300 policy.
Also, everyone knows that it's really not usually best to buy a new car. It's almost always better to buy a car that is around 2 years old. Let someone else take the depreciation beating. So, if we were all smart this is the route we would go. But, as mentioned earlier it just depends on your situation. Personally, we always have two cars. One is leased and the second is usually a 2 to 3 year old used car. I look for high content cars that don't hold their value as our second car. For instance in 2001 I purchased a mint 1998 Lincoln Continental, which was completely loaded with 30K miles. Only paid 16K. Hell a used Tauras cost that much. This car stickered for 44K and has so much content. We still have it and love it. It's been a great car. Sure spends a lot less time in the shop than the Max.....LOL
Another note is that many banks that you lease from include the gap insurance. For instance, I'm with National City and it's included. I'm in OH and there are no special requirements for insurance. I have 250 comp and 500 collision with a 100/300 policy.
Also, everyone knows that it's really not usually best to buy a new car. It's almost always better to buy a car that is around 2 years old. Let someone else take the depreciation beating. So, if we were all smart this is the route we would go. But, as mentioned earlier it just depends on your situation. Personally, we always have two cars. One is leased and the second is usually a 2 to 3 year old used car. I look for high content cars that don't hold their value as our second car. For instance in 2001 I purchased a mint 1998 Lincoln Continental, which was completely loaded with 30K miles. Only paid 16K. Hell a used Tauras cost that much. This car stickered for 44K and has so much content. We still have it and love it. It's been a great car. Sure spends a lot less time in the shop than the Max.....LOL
Newbie just Registered
Joined: May 2005
Posts: 2,795
From: LA/OC, CA
Originally Posted by chernmax
Any vehicle used in a personal business can be used as a tax writeoff, once people get over their ego's of having something new every couple of years, they will realize how much more in life you could of done with that endless car note...
As far as the ego thing goes, everyone has their poison. A new car every couple of years isn't mine.
Joined: May 2005
Posts: 10,197
From: Displaced New Yorker in Southern, MD
Originally Posted by RHMax
I'm considered self-employ. I drive about 400 miles per week for work, meeting clients, lunches, and so on. My lease car is a part of my business expenses along with everything that has to do with my business. The Max is my personal car. I use both cars equally so I don't burn the miles on my lease and having a second car as a back up. This setup has been working well for me in tax savings for quite sometime.
As far as the ego thing goes, everyone has their poison. A new car every couple of years isn't mine.
As far as the ego thing goes, everyone has their poison. A new car every couple of years isn't mine.
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