new 2010 lease or buy?
Thread Starter
Newbie
Joined: Aug 2010
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clk350
new 2010 lease or buy?
Hi guys,
I posted a thread today about leasing a new 2010 c63amg, and I couldn't discount just like other people getting $15k off because I was going to lease. dealer told me I would be paying $650 monthly with 20k down for 3 years 12000 mile a year. the total money I would pay over 3 years would be about $43400.
So, I came to think about buying the car with possible discount of $15k for the same car. The total price of the car with gas guzzler tax come to about $69000. with the discount, I'm looking at roughly $54000.
Based on this calculation, I can tell that I will be MUCH MUCH better off buying a car as I can sell the car later.
So, what do you think guys? buy or lease? I'm sure it's no brainer to buy the car, but this scenario only works if I can get $15k off of MSRP. The issue I'm having now is that I'm not in the state until this Sunday and I need a car by next Monday. I could only negotiate with a dealer over the phone, and it is making a deal really hard...
Thanks in advance
I posted a thread today about leasing a new 2010 c63amg, and I couldn't discount just like other people getting $15k off because I was going to lease. dealer told me I would be paying $650 monthly with 20k down for 3 years 12000 mile a year. the total money I would pay over 3 years would be about $43400.
So, I came to think about buying the car with possible discount of $15k for the same car. The total price of the car with gas guzzler tax come to about $69000. with the discount, I'm looking at roughly $54000.
Based on this calculation, I can tell that I will be MUCH MUCH better off buying a car as I can sell the car later.
So, what do you think guys? buy or lease? I'm sure it's no brainer to buy the car, but this scenario only works if I can get $15k off of MSRP. The issue I'm having now is that I'm not in the state until this Sunday and I need a car by next Monday. I could only negotiate with a dealer over the phone, and it is making a deal really hard...
Thanks in advance
MBWorld Fanatic!
Joined: May 2007
Posts: 1,675
Likes: 11
From: NA
Yes
First off - you can still get the trunk money - lease or buy makes no difference unless this is new this year.
Second - dude if you are putting $20k down you are INSANE to lease a car. Buy it.
I leased mine because I can a)write off the mileage b)not worry about who is servicing it (I distrust most dealers but on a lease? hey all is well!) c)never have it out of warranty d)not have a care in the world around resale, or how many miles are on it when i go to sell it...just hand off the keys and get into something else
Leasing is a great option for many reasons...but if you're putting a large sum down? A lease is not for you.
Second - dude if you are putting $20k down you are INSANE to lease a car. Buy it.
I leased mine because I can a)write off the mileage b)not worry about who is servicing it (I distrust most dealers but on a lease? hey all is well!) c)never have it out of warranty d)not have a care in the world around resale, or how many miles are on it when i go to sell it...just hand off the keys and get into something else
Leasing is a great option for many reasons...but if you're putting a large sum down? A lease is not for you.
Thread Starter
Newbie
Joined: Aug 2010
Posts: 9
Likes: 0
clk350
First off - you can still get the trunk money - lease or buy makes no difference unless this is new this year.
Second - dude if you are putting $20k down you are INSANE to lease a car. Buy it.
I leased mine because I can a)write off the mileage b)not worry about who is servicing it (I distrust most dealers but on a lease? hey all is well!) c)never have it out of warranty d)not have a care in the world around resale, or how many miles are on it when i go to sell it...just hand off the keys and get into something else
Leasing is a great option for many reasons...but if you're putting a large sum down? A lease is not for you.
Second - dude if you are putting $20k down you are INSANE to lease a car. Buy it.
I leased mine because I can a)write off the mileage b)not worry about who is servicing it (I distrust most dealers but on a lease? hey all is well!) c)never have it out of warranty d)not have a care in the world around resale, or how many miles are on it when i go to sell it...just hand off the keys and get into something else
Leasing is a great option for many reasons...but if you're putting a large sum down? A lease is not for you.
Is there a percentage that most people put down when they lease? is it like 10% or lower? Also, what's the reason for not putting much money when lease? if you down more, your monthly payment goes down, but if you down less, your monthly payment goes up. So, the total money over the period of lease would be the same, isn't it? Do people just not put down much because they can utilize that money on something else?
Last edited by icecube7; Aug 17, 2010 at 09:53 PM.
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2013 Nissan GT-R BE
Is there a percentage that most people put down when they lease? is it like 10% or lower? Also, what's the reason for not putting much money when lease? if you down more, your monthly payment goes down, but if you down less, your monthly payment goes up. So, the total money over the period of lease would be the same, isn't it? Do people just not put down much because they can utilize that money on something else?
http://www.edmunds.com/advice/leasin...les/index.html
Sheep
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'10 C63 AMG | '10 Lexus RX350 | '10 E550C |'98 Lexus ES300 (Love this car)
In a sense leasing a car is like renting an apartment or house: does it make sense if you put a large down to lower your rent on something that you normally won't keep later? Here is a good collection of tips from Edmunds on vehicle leasing:
http://www.edmunds.com/advice/leasin...les/index.html
Sheep
http://www.edmunds.com/advice/leasin...les/index.html
Sheep
Advantage of large down:
1. Saves on interest charges (the lease rate is usually a lot higher than the current bond interest)
Disadvantages of large down:
1. Large initial overlay; cashflow inflexibility
2. Opportunity cost of your money (could be used for other things)
3. Present value of money. (A dollar worth more now than at a future date)
ZERO DOWN $20000 DOWN
PRICE 63900 63900
DOWN PAYMENT 0 20000
Total to Finance 63900 43900
TERM 36 36
Interest rate 0.049 0.049
MONTHLY PAYMENT 999.95 403.86
TOTAL OUTLAY 35998.2 14538.96
BOND 3-5yr 0.02 0.02
PV of payments -$34,911.31 -$14,099.99
NPV -$34,911.31 -$34,099.99
As you can see, number-wise, it doesn't make a (large) difference to put a large down vs ZERO down. $900 saving vs Flexibility and Opportunity Cost...
In that case, just go with zero down and save your large down payment in an interest-bearing account. This gives you more flexibility and control which cannot be measured by dollar amount.
You might be saving a bit more if the lease rate is significantly higher than your saving account rate. However, in such a short-term obligation (36 months), it doesn't make a big difference at the end.
I never understood the theory of putting a large down payment to reduce monthly payment. I mean, at the end, you are paying about the same minus flexibility of your money in case of emergency. If you have a pile of cash lying around, why not put it away in a saving account and use it to subsidize your monthly payment? In this way, you have the power.
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Joined: Aug 2009
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From: NY
See Sig
Hi guys,
I posted a thread today about leasing a new 2010 c63amg, and I couldn't discount just like other people getting $15k off because I was going to lease. dealer told me I would be paying $650 monthly with 20k down for 3 years 12000 mile a year. the total money I would pay over 3 years would be about $43400.
So, I came to think about buying the car with possible discount of $15k for the same car. The total price of the car with gas guzzler tax come to about $69000. with the discount, I'm looking at roughly $54000.
Based on this calculation, I can tell that I will be MUCH MUCH better off buying a car as I can sell the car later.
So, what do you think guys? buy or lease? I'm sure it's no brainer to buy the car, but this scenario only works if I can get $15k off of MSRP. The issue I'm having now is that I'm not in the state until this Sunday and I need a car by next Monday. I could only negotiate with a dealer over the phone, and it is making a deal really hard...
Thanks in advance
I posted a thread today about leasing a new 2010 c63amg, and I couldn't discount just like other people getting $15k off because I was going to lease. dealer told me I would be paying $650 monthly with 20k down for 3 years 12000 mile a year. the total money I would pay over 3 years would be about $43400.
So, I came to think about buying the car with possible discount of $15k for the same car. The total price of the car with gas guzzler tax come to about $69000. with the discount, I'm looking at roughly $54000.
Based on this calculation, I can tell that I will be MUCH MUCH better off buying a car as I can sell the car later.
So, what do you think guys? buy or lease? I'm sure it's no brainer to buy the car, but this scenario only works if I can get $15k off of MSRP. The issue I'm having now is that I'm not in the state until this Sunday and I need a car by next Monday. I could only negotiate with a dealer over the phone, and it is making a deal really hard...
Thanks in advance
MBWorld Fanatic!
Joined: Aug 2005
Posts: 2,207
Likes: 2
From: North Jersey
2012 CTS-V
Hi guys,
I posted a thread today about leasing a new 2010 c63amg, and I couldn't discount just like other people getting $15k off because I was going to lease. dealer told me I would be paying $650 monthly with 20k down for 3 years 12000 mile a year. the total money I would pay over 3 years would be about $43400.
So, I came to think about buying the car with possible discount of $15k for the same car. The total price of the car with gas guzzler tax come to about $69000. with the discount, I'm looking at roughly $54000.
Based on this calculation, I can tell that I will be MUCH MUCH better off buying a car as I can sell the car later.
So, what do you think guys? buy or lease? I'm sure it's no brainer to buy the car, but this scenario only works if I can get $15k off of MSRP. The issue I'm having now is that I'm not in the state until this Sunday and I need a car by next Monday. I could only negotiate with a dealer over the phone, and it is making a deal really hard...
Thanks in advance
I posted a thread today about leasing a new 2010 c63amg, and I couldn't discount just like other people getting $15k off because I was going to lease. dealer told me I would be paying $650 monthly with 20k down for 3 years 12000 mile a year. the total money I would pay over 3 years would be about $43400.
So, I came to think about buying the car with possible discount of $15k for the same car. The total price of the car with gas guzzler tax come to about $69000. with the discount, I'm looking at roughly $54000.
Based on this calculation, I can tell that I will be MUCH MUCH better off buying a car as I can sell the car later.
So, what do you think guys? buy or lease? I'm sure it's no brainer to buy the car, but this scenario only works if I can get $15k off of MSRP. The issue I'm having now is that I'm not in the state until this Sunday and I need a car by next Monday. I could only negotiate with a dealer over the phone, and it is making a deal really hard...
Thanks in advance
