Re: "I need a Numbers Geek..."
Hey Paddy
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I get into the leasing thing with people all of the time. A guy I work with just cannot understand why I would ever lease, or "“rent” as he calls it. My response is why would I ever want to pay more every month, possibly $100.00 or even more, to be in a position where 2-3 years down the road I am upside down.
I see it like this:
1. Banks never want you to be upside down 2-3 years down the road because that means they have lost money if you return the lease.
2. Shorter term financing is always cheaper.
3. If you don’t like the car give it back at the end and walk away, no upside down concerns.
4. If you like the car, just buy it out at the end for cash or negotiate a good interest rate with the lessor. Remember, the last thing they want is the car back, too expensive for them to deal with, they are better off cutting you a deal on buyout.
5. Limited mileage can be a concern, but remember, you can buy more miles and you are paying, or should be paying, a lot less in financing charges. A good lease will give you a lower payment as well as a lower principal balance at the end of 2-3 years over traditional financing.
6. If the car is a business expense, there is no need to capitalize the car (include it and maintain it as an asset) it is pure expense. Even in the situation of a home based business where the value of the property and so on is an issue, there is none of this BS on a lease.
7. I think leasing can be the best way to buy a car. On the flip side, there are far fewer regulations on the structure and disclosure of leases. It is easier for the dealer to hide extra profit. If the lease you are looking at does not allow you to fulfill the lease, say for three years, and then buy the car for a reasonable interest rate, and the total of payments are not less than the total payments on traditional financing the lease is probably not worth it.
I tell you I work these people over when I lease. I go through ever little detail to make sure they are not showing a 2.5% effective interest rate, and then padding them the equivalent of 10% in profit. The money factor (interest) on mine is about 2.9%. Lower payments and a lower balance down the road should I keep the car.
If you have any questions let me know. It depends on what you plan to do with the car, keep it, trade later, or so on. Leasing is a good option to keep open I think.
Let me know if I can help in any way.
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Is Cheetahs topless or full nude? I've been meaning to go there.