Type R lease numbers

beldredge

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You will pay much than the cars original purchase price.
There are plenty of reasons to argue leasing vs purchasing, and it's not unwise advice to say that if you can't afford to purchase a car then you shouldn't lease it...but this statement is incorrect.

If you buy out a lease, you have simply purchased the car at the negotiated cap cost, through making the payments through the end of the lease, and then paying the residual. Generally, there are no additional fees when you buy it out at the end (as opposed to turning it in).

Now, if you're saying one pays more than the original purchase price when you add up all the payments, then yes, that is correct. That additional amount represents the interest, which you pay on a lease or if you finance.

Again, only paying for cars all in cash? You won't get an argument from me that that's admirable.
 


d1zguy

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84 months??? I thought 60 was bad, but that's probably what I'll be doing. The flipside is that if you have really good credit, you can probably get sub-3.0% and the interest isn't that bad anyway.
Almost had a heart attack reading this... I always think if you can't pay it off in 36 months you can't afford it. Especially at anything other than .9 percent APR
 

gtolio

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Now, if you're saying one pays more than the original purchase price when you add up all the payments, then yes, that is correct. That additional amount represents the interest, which you pay on a lease or if you finance.
There you go. paying it off in 7-8 years is going to take way more money (interest) than paying it off in 3-5. That's why leases cost more, if you are going to keep the car.

The only reason a lease makes any sense is if you want a new car every 3 years. I have yet to see another reason that makes financial sense.
 

Vaders CTR

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Well when you rent you sign a lease correct? In the end you can opt to buy the car but like I said when you buy a house you gain equity same with a car to a point but cars are not investments unless they are collectible.

If you can't pay for it in cash (homes not included) you should tend not to buy it. That is why this country itself is in debt with so many people with poor credit. Living beyond their means.
Oh and I think you are wrong also. Scenarios aside money is money and leasing or renting is throwing money away. Simple economics.
Needless to say, I do not entirely agree with what you are saying. It is interesting to hear and see things from other members' point of view. There are always pros and cons to everything! I do commend you for helping other board members make a educated buying decision. I helped those understand how things work that are not familiar in the old thread. In that thread, there was an individual that was really against it. Given their statements, I knew I wasn't going to attempt or try to change their opinion, much like you. That's okay! It isn't for everyone. Most people do not understand them.

If anyone has questions about leasing, shoot me a PM and I'll answer your question(s). Lots of people did on the other thread sent me tons of PM's. Questions are good!

@Gerothius777 Just for fun! If I was your financial advisor and I called you up and said, "Great news! I have this new investment! The initial buy in is $40,000. I guarantee that I will lose half of your money in 3 years!" Would you invest with me? You can shoot me a PM.
 

Gerothius777

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Needless to say, I do not entirely agree with what you are saying. It is interesting to hear and see things from other members' point of view. There are always pros and cons to everything! I do commend you for helping other board members make a educated buying decision. I helped those understand how things work that are not familiar in the old thread. In that thread, there was an individual that was really against it. Given their statements, I knew I wasn't going to attempt or try to change their opinion, much like you. That's okay! It isn't for everyone. Most people do not understand them.

If anyone has questions about leasing, shoot me a PM and I'll answer your question(s). Lots of people did on the other thread sent me tons of PM's. Questions are good!

@Gerothius777 Just for fun! If I was your financial advisor and I called you up and said, "Great news! I have this new investment! The initial buy in is $40,000. I guarantee that I will lose half of your money in 3 years!" Would you invest with me? You can shoot me a PM.
I would say no thank you :) On the other hand I may not agree but respect your standing on this also.
 

jgreen16

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Maybe they wanted to show more profit and have a higher penetration rate in F/I office. :dunno:
Quite a few people get penetrated in the F/I office. :rofl:
 


BlackStud525

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Appreciate the proof of purchase, and lease information. Shows you have confidence to show the financial works of buying/leasing a CTR, Majority of people bought for so called " MSRP ". I'm surprised documentation for cars is normally around 80-100 dollars, but for a ctr im seeing all 400-800 bucks holy hell!!
 

slowride

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Well when you rent you sign a lease correct?
In the end you can opt to buy the car but like I said when you buy a house you gain equity same with a car to a point but cars are not investments unless they are collectible.

If you can't pay for it in cash (homes not included) you should tend not to buy it. That is why this country itself is in debt with so many people with poor credit. Living beyond their means.
When you rent a car do you sign a lease?

Can you leverage equity in a leased car?

You don't always gain equity in a home purchase and can sometimes lose it, and big, due to several factors. You gain equity in a car...I don't even know where to go with that one.
 

True Story

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Well when you rent you sign a lease correct? In the end you can opt to buy the car but like I said when you buy a house you gain equity same with a car to a point but cars are not investments unless they are collectible.

If you can't pay for it in cash (homes not included) you should tend not to buy it. That is why this country itself is in debt with so many people with poor credit. Living beyond their means.
The credit requirements (score and history) to lease a vehicle are higher/harder vs a standard loan.
 

Gerothius777

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When you rent a car do you sign a lease?

Can you leverage equity in a leased car?

You don't always gain equity in a home purchase and can sometimes lose it, and big, due to several factors. You gain equity in a car...I don't even know where to go with that one.
You sign a rental contract. Not a lease. You don't have a credit check for a rental.

Yes. You gain equity in a car the more you pay off. All depends how well it holds its value, mileage and condition. Although it is diminishing.

Most people and I mean most gain equity in their homes. That why one of the best investments is land. Since you can't make anymore of it.
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