Sponsored

Purchase, Finance or Lease your new Mustang?

Old 5 Oh

Well-Known Member
Joined
Jan 18, 2014
Threads
24
Messages
2,423
Reaction score
329
Location
Wilder, ID
First Name
David
Vehicle(s)
2015 GT Premium AT
I've never kept a car for more then 3 years, the shortest was 9 months. So, maybe leasing is the better option for me. Idk??
Leasing is NEVER better for a private party (non-business). Not only is it expensive and restrictive on what you can do to the car (NOTHING!) but you can't change your mind. If you take a two-year lease, there's basically no getting out until then, and it's very expensive to keep it longer than that if you decide you like it better than you expected. A long-term loan, while not the very best financial option, will give you lease-size payments and infinitely more options.
Sponsored

 

rickstang

Rickstang
Joined
Jun 9, 2014
Threads
0
Messages
33
Reaction score
0
Location
Central Pennsylvania
First Name
Rick
Vehicle(s)
Race Red Ecoboast, auto, 50 Year package
Never is a tough one to justify in any case, 5 oh, including leasing vs buying a car. I agree with you and others that getting out of a lease is difficult, that if you are driving major miles per year, or if you want to hang on to a car for more than three or four years to offset heavy depreciation and see an end in sight for car payments, then by all means leasing is a bad idea for you. Tricky issues like residuals, money factors, and taxation make figuring deals harder than outright financing so you really must educate yourself before jumping into a lease. Having said this, leasing allows you to keep your money in appreciating assets as opposed to cars that are rapidly depreciating assets, it allows you to get a new car every three years or so if that's what you want, to have little or no maintenance costs, and for the cash outlay get more car for a lower payment. If this suits your needs and circumstances then leasing the better choice.
 

rickstang

Rickstang
Joined
Jun 9, 2014
Threads
0
Messages
33
Reaction score
0
Location
Central Pennsylvania
First Name
Rick
Vehicle(s)
Race Red Ecoboast, auto, 50 Year package
Forgot- if you want to modify your car leasing is out.
 

Old 5 Oh

Well-Known Member
Joined
Jan 18, 2014
Threads
24
Messages
2,423
Reaction score
329
Location
Wilder, ID
First Name
David
Vehicle(s)
2015 GT Premium AT
Never is a tough one to justify in any case, 5 oh, including leasing vs buying a car. I agree with you and others that getting out of a lease is difficult, that if you are driving major miles per year, or if you want to hang on to a car for more than three or four years to offset heavy depreciation and see an end in sight for car payments, then by all means leasing is a bad idea for you. Tricky issues like residuals, money factors, and taxation make figuring deals harder than outright financing so you really must educate yourself before jumping into a lease. Having said this, leasing allows you to keep your money in appreciating assets as opposed to cars that are rapidly depreciating assets, it allows you to get a new car every three years or so if that's what you want, to have little or no maintenance costs, and for the cash outlay get more car for a lower payment. If this suits your needs and circumstances then leasing the better choice.
You missed my main point, that leasing is NEVER favorable for a PRIVATE, NON-BUSINESS party. Businesses have other considerations, including all the factors you raise. But NONE of those apply to private individuals. Those of us (all individuals) not worried about balance sheet ratios can simplify the lease analysis tremendously. Lease payments are simply non-deductible.

A low-down, 60-72-month loan will leave you with very similar payments, a very similar residual balance at 36 months, no more money tied up (most low-payment leases require nearly 10% down -- why would I do that??), and all the freedom that a lease does not give you to shorten or lengthen your ownership, or modify the car.

There might be a case where a mfg is giving huge lease subventions on a slow-seller while not giving equivalent rebates on sales, but that hasn't happened in well over 10 years now.
 

rickstang

Rickstang
Joined
Jun 9, 2014
Threads
0
Messages
33
Reaction score
0
Location
Central Pennsylvania
First Name
Rick
Vehicle(s)
Race Red Ecoboast, auto, 50 Year package
Well 5oh, I guess we will have to agree to disagree on leasing. I think we can agree that we will love driving our new Mustangs- when they finally get here LOL.
 

Sponsored

Old 5 Oh

Well-Known Member
Joined
Jan 18, 2014
Threads
24
Messages
2,423
Reaction score
329
Location
Wilder, ID
First Name
David
Vehicle(s)
2015 GT Premium AT
Well 5oh, I guess we will have to agree to disagree on leasing. I think we can agree that we will love driving our new Mustangs- when they finally get here LOL.
We can do that, and I will agree that however you acquire possession, these cars are going to be fantastic. Cheers!
 
OP
OP

MustangCollector

Well-Known Member
Joined
Oct 3, 2014
Threads
130
Messages
899
Reaction score
237
Location
NYC
Vehicle(s)
Various vintage shelbys
I will add i have modified heavily leased cars and always sold them out of lease with no issues. I also have swapped leases fairly easily. No matter how you look at it any new car is a loss, you buy it youll lose depreciation. You lease it your basically paying for depreciation and interest. You buy a vintage GT500 or Boss 429 like i did its better than money in the bank as they hold value and go up and you can enjoy them. All new cars are the same which is why most mega rich guys lease all exotics and don't buy outright this is a proven fact
Sponsored

 
 




Top