People who lease shouldnt modify their cars, sorry to say

[ybbiz34]

Originally Posted by Chipped B6

SMH at some of the responses in this thread.

If I owe 100k for a car.

1) I could pay the 100k, drive it for 3 years. Get sick of it, and get the 55k of it's original value back. Essentially losing 45k over the 3 years.

2) Imagine I find the same car, and get a GREAT deal on it. I pay about 750 a month for that same car on a 36 month lease. European Delivery 13% off and what have you.

After 3 years, I'm only out 27k instead of the 45k as previously mentioned for the same experience over the 3 years.

It's about the value of your dollar, if you choose to buy the car cash, that how you value your money. I bet you're the type that goes to house parties bragging about paying everything in cash.

Leasing benefits people if you can get a great deal for driving a nice car.

/rant

[Sedan_Clan]

Originally Posted by MarkY

(Not directed at 48Laws) From a financial standpoint, leasing a car and owning (mortgaging) a home are totally different animals. Now if you want to talk about renting a home and leasing a car, there are similarities there.

Not really! That car is in my name and financed via my credit (...and I can't just 'walk away' from my contractual obligation). The rented home is not. Two very different things.


....and let's be honest here, where the home ownership examples are concerned, most people sell before they ever own a home outright.

[/// M sa]

Originally Posted by Sedan_Clan

Not really! That car is in my name and financed via my credit (...and I can't just 'walk away' from my contractual obligation). The rented home is not. Two very different things.


....and let's be honest here, where the home ownership examples are concerned, most people sell before they ever own a home outright.

Totally agree, I have moved my primary home 4 times (purchased) so far and I am 40.

[48Laws]

Originally Posted by Chipped B6

SMH at some of the responses in this thread.

If I owe 100k for a car.

1) I could pay the 100k, drive it for 3 years. Get sick of it, and get the 55k of it's original value back. Essentially losing 45k over the 3 years.

2) Imagine I find the same car, and get a GREAT deal on it. I pay about 750 a month for that same car on a 36 month lease. European Delivery 13% off and what have you.

After 3 years, I'm only out 27k instead of the 45k as previously mentioned for the same experience over the 3 years.

It's about the value of your dollar, if you choose to buy the car cash, that how you value your money. I bet you're the type that goes to house parties bragging about paying everything in cash.

Leasing benefits people if you can get a great deal for driving a nice car.

/rant

Good luck finding a $100k car lease for $750/month lol.

[MarkY]

I misunderstood 48Laws' comment about weathering the storm. He must have meant most people sell before reaching the end of a mortgage. I agree with that and it has been my experience as well. However, even in a scenario where a bank perpetually owns your home, any equity realized is yours. If you rent, only the property owner is getting that equity.

[48Laws]

Yes. I'm saying that building equity in a home can be a slow, arduous process but it will always appreciate unlike a car. One may experience blips in the real estate market but it does come around.

[/// M sa]

Originally Posted by 48Laws

Yes. I'm saying that building equity in a home can be a slow, arduous process but it will always appreciate unlike a car. One may experience blips in the real estate market but it does come around.

It all depends where and when and what you buy.

[Sedan_Clan]

Originally Posted by //M sa

It all depends where and when and what you buy.

Exactly! Homes are sold for a loss all the time. The Short Sale is alive and well.

[48Laws]

Originally Posted by Sedan_Clan

Exactly! Homes are sold for a loss all the time. The Short Sale is alive and well.

Again...that home is almost guaranteed to increase in value over time unlike a car. You can't simplify a short sale as it has too many variables but, I tell you this....the price will always go up.

[ridin135]

Originally Posted by 48Laws

Good luck finding a $100k car lease for $750/month lol.

It can be done, I have personally seen multiple deals like this go through.

[Sedan_Clan]

Originally Posted by ridin135

It can be done, I have personally seen multiple deals like this go through.

...but we can agree that those are/were anomalies, not the norm.

[Roundown]

Originally Posted by Powaup

You sound so ignorant but maybe you never learned about finance in case that's not your fault. Does free cash flow ring a bell to you? Tax-Write off? Market value vs book value? Investments?

After doing some math you will realize that leasing is better decision even if you want to keep a car past lease-end


You don't have the option to buy your rental out when you're done with it either

Agree- I buy, cash... but I know that leasing and financing are functionality the same- they offer individuals efficient leverage against an asset. When it comes to deciding between leasing or buying; things like tax efficiency, financing incentives (lending rates vs. mfs), residuals (inflated residuals may make leasing more attractive), and usage are what should inform your decision.

Not how hard you can beat your chest.

[ridin135]

Originally Posted by Sedan_Clan

...but we can agree that those are/were anomalies, not the norm.

Yes I can agree they are rare and can usually be had if the person wants to work through all the dealers bs.

[Lorde]

Originally Posted by 48Laws

Again...that home is almost guaranteed to increase in value over time unlike a car. You can't simplify a short sale as it has too many variables but, I tell you this....the price will always go up.

Sure, but look at what happened to the bastards that bought in the few years leading up to 2008...

[48Laws]

Originally Posted by ridin135

Yes I can agree they are rare and can usually be had if the person wants to work through all the dealers bs.

There's very little way around a $1600 car note for a $100k car. Even with no interest and financed for 84 months the note is still over $1k/month. And with leases there's all types of fees. So, if one can lease a $100k car for $750/month...it's not really a $100k car lol.

[ridin135]

Originally Posted by 48Laws

There's very little way around a $1600 car not for a $100k car. Even with no interest and financed for 84 months the note is still over $1k/month. And with leases there's all types of fees. So, if one can lease a $100k car for $750/month...it's not really a $100k car lol.

Of course your not going to finance a car of that price for a low monthly but you can with a lease.

[48Laws]

Originally Posted by ridin135

Of course your not going to finance a car of that price for a low monthly but you can with a lease.

How? Where is this money disappearing to unless there's a promotional deal going on.

[ridin135]

Originally Posted by 48Laws

How? Where is this money disappearing to unless there's a promotional deal going on.

All depends on residual and money factor. The msrp may be high but what you agree to purchase the car for can be a good amount lower.

[48Laws]

So, hypothetically...I can get an M6 for $750/month? Wouldn't they be flying out showrooms????

[ridin135]

Originally Posted by 48Laws

So, hypothetically...I can get an M6 for $750/month? Wouldn't they be flying out showrooms????

If the residuals are really good you could but I am not sure what the current residuals are on the M6. They usually are not very good on the M5 & M6.

[dmk08]

Originally Posted by 48Laws

So, hypothetically...I can get an M6 for $750/month? Wouldn't they be flying out showrooms????

Ill personally go buy one right now. What dealer do I need to call?

[JDS]

It's easy to get bitten by the mod bug after just 10 minutes on this forum.

How many people that lease make some modifications to their cars?
What are the rules at lease end?
I assume the car has to be returned in its original purchase condition?
How would an engine map be viewed by the dealers?

I appreciate it might be a money hole, but I were a price buyer, it would be a Kia Optima I was thinking of modifying, not a ~$80K car

I figure I have 38 more months to enjoy the car, with or without mods. Just curious as to others' opinions.

James.