Who's leasing? Who's Purchasing/Financing?

[ohtobbad]

Things might be different in the states, but up here, a car does lose 70% of its value in 2.5 years, let alone 4 years. I'm speaking from experience. I had to pay $6,000 CAD to balance the loan on the finance of my previous car before I could switch to my Mustang because my car depreciated faster than I was paying for its finance. That is disgustingly bad.

With leasing, I'm happy knowing at the end of the lease, I have the option to decide what to do depending on how much my car has depreciated. Again, things might be completely different in the US compared to Canada.

The only way it depreciates that much, is if you abused the car and put on a large amount of miles. I live in Canada also.

With the dollar where its at now, US dealers are coming to auctions here and buying trucks, to take home and sell.

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[MagneticA]

Ultimately, its all relative I suppose. I mean I guess for a depreciating asset I see where people are coming from. But, the old days of paying cash on everything are long gone (doesn't always make sense). Now financing more than you can afford is another topic where I can see where people could make an argument. But, lets not assume because people finance/lease they couldn't afford it. Money, can grow easily in this market, so tying it all up on a purchase isn't always the best move. If I went by that logic..I bought a house I can't afford since I didn't pay all cash for it....though I assume since its an appreciating asset that gets a pass? :shrug: There are some things that may cross the line such as financing a watch...but even then if they made more money over that period of the loan for their watch then I don't see the problem, as they may still be ahead.

TL : DR Personal opinion is a choice, so lets not generalize all things even though it is damn hard not too.

Every time someone posts that they paid in full for a car, someone jumps in to say how stupid of a choice that is. Very few people actually pay in full. And it's not because it's a bad choice. The simple fact is that people take out loans because they simply cannot finance a car or home any other way. Paying in full is really not that much different than paying on a loan. When you pay in full you must save your money for x amount of time before you have your purchase. When you borrow you must pay out for x amount of time while you have your purchase. The benefits of borrowing is that you don't have to wait to enjoy your purchase. And for that benefit you pay an interest rate. The benefit of saving up for your purchase before you have it is that you earn an interest rate along the way.

There is nothing stupid about making purchases with either one of these methods... so long as you are within your budget and not "stealing" money from your retirement.

 

[5.0 435]

I've read there are credit unions offering really outstanding rates like less then 02% . Make your best deal then take your loan to a credit union. Why tap your non-retirement investments with rates like these ? Crazy rate period we are living in for sure.
NEVER touch your personal retirement saving's for anything until you retire !!!!

 

[osu13]

Every time someone posts that they paid in full for a car, someone jumps in to say how stupid of a choice that is. Very few people actually pay in full. And it's not because it's a bad choice. The simple fact is that people take out loans because they simply cannot finance a car or home any other way. Paying in full is really not that much different than paying on a loan. When you pay in full you must save your money for x amount of time before you have your purchase. When you borrow you must pay out for x amount of time while you have your purchase. The benefits of borrowing is that you don't have to wait to enjoy your purchase. And for that benefit you pay an interest rate. The benefit of saving up for your purchase before you have it is that you earn an interest rate along the way.

There is nothing stupid about making purchases with either one of these methods... so long as you are within your budget and not "stealing" money from your retirement.

I will say I agree with you 100%. The point I was simply trying to make is that you if you do finance it isn't always because you can't afford the car. I'm sure that isn't always the case though...With the point you made, as long as money is still making you money then all is well. I'd never go broke trying to pay for a car even though it can be so tempting at times.

 

[MagneticA]

I will say I agree with you 100%. The point I was simply trying to make is that you if you do finance it isn't always because you can't afford the car. I'm sure that isn't always the case though...With the point you made, as long as money is still making you money then all is well. I'd never go broke trying to pay for a car even though it can be so tempting at times.

Agreed. People do borrow money in order to invest. Nothing wrong with that either. Leasing/Borrowing/Hedging/Cash... they are all ways people can choose to make their purchases. They each come with their own set of positives/negatives. I would not say one or the other is "better" than the other because everyone has different needs/wants/situations. The best choice is the one that fits your lifestyle and financial situation.

 

[Cars_1959]

Svt cars do not have lease programs generally. Couldn't lease a s197 Shelby. You won't be able to lease a s550 either. The reason the mustang leases are not that great is because of the nature of the beast. The first thing most people do to a mustang is a nice smokey donut, then add exhaust and intake. At the end of the lease the car is trashed because the leasee has no pride in ownership of a car he/she is not planning on keeping. When you go lease a Bmw you generally aren't going to modify the vehicle and if you do Bmw will charge you a premium to return the vehicle to stock as would any manufacture.


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I've had two dealers in L. A. tell me you can lease an S550 but Ford doesn't usually have any special lease programs going on for this car like the others.

Not sure how far this goes but here is a link to Cars Direct updating financing for the S550: http://www.carsdirect.com/2015/ford/mustang/prices-deals?utm_source=cdpi&utm_campaign=insider-update&utm_medium=email&utm_content=body-full-analysis

 

[Blk2015GT]

I've had two dealers in L. A. tell me you can lease an S550 but Ford doesn't usually have any special lease programs going on for this car like the others.

Not sure how far this goes but here is a link to Cars Direct updating financing for the S550: http://www.carsdirect.com/2015/ford/mustang/prices-deals?utm_source=cdpi&utm_campaign=insider-update&utm_medium=email&utm_content=body-full-analysis

Right but we're talking the special build cars- Shelbys, SVT, etc. He said SVT/Shelby specifically in the S197 and its unlikely on the 2015+ as well. You can obviously lease a V6/Eco/GT S550

 

[Blk2015GT]

Every time someone posts that they paid in full for a car, someone jumps in to say how stupid of a choice that is. Very few people actually pay in full. And it's not because it's a bad choice. The simple fact is that people take out loans because they simply cannot finance a car or home any other way. Paying in full is really not that much different than paying on a loan. When you pay in full you must save your money for x amount of time before you have your purchase. When you borrow you must pay out for x amount of time while you have your purchase. The benefits of borrowing is that you don't have to wait to enjoy your purchase. And for that benefit you pay an interest rate. The benefit of saving up for your purchase before you have it is that you earn an interest rate along the way.

There is nothing stupid about making purchases with either one of these methods... so long as you are within your budget and not "stealing" money from your retirement.

This.

I paid full cash for my car after trade-in, $30k and change. I had it saved it up after maxing out my retirement every year, so I didn't hurt my future savings. And it was only a dent in my "cash reserves" in the bank, so why worry about payments every month being on time, writing check etc.? I dont have to do a thing now but pay the insurance every 6 months.

I don't think I'm "better" than anyone paying cash. I worked damn hard for years to save up cash for my GT premium- even [voluntarily not out of necessity] working 2 jobs for years (one full time and my side business). I also was in school for 7 years including law school at the cost of $100k just in tuition, not counting incidentals like books at $2-3k per semester and living expenses for 3 years- so more like $150k+.

 

[Cars_1959]

Here is another source for leasing a Mustang GT

http://www.ford.com/cars/mustang/pricing/http://www.ford.com/cars/mustang/pricing/

Looks like there may be leasing options depending on how hard you want to look and terms you'll have to work with.

I'm toying with leasing and maybe jumping over to a GT 350 in a few years.

 

[Cars_1959]

Right but we're talking the special build cars- Shelbys, SVT, etc. He said SVT/Shelby specifically in the S197 and its unlikely on the 2015+ as well. You can obviously lease a V6/Eco/GT S550

It's not obvious to all. I have seen on this Forum and heard some dealers say you can't lease a stock GT and I don't think that is the case. Hopefully this will serve as a clarification for those thinking about leasing but seeing a lot of conflicting information.

Kinda like some people thinking they can upgrade the MFT with Sync 3, that is a not according to :ford:

 

[4 ROUSH]

Probably no lease on the SVT new toy. Sale ONLY...........Leasing this ride will not make an impact on $$$$ . Where as sale for title would. Leasing on various 4,6,8 cylinder Mustangs are available. I could have leased a GT Mustang in my area.:faint:

 

[-=Hot|Ice=-]

I've read there are credit unions offering really outstanding rates like less then 02% . Make your best deal then take your loan to a credit union. Why tap your non-retirement investments with rates like these ? Crazy rate period we are living in for sure.
NEVER touch your personal retirement saving's for anything until you retire !!!!

Yes, they are! Right now is the best time to borrow! It's 'free money'!

 

[Blk2015GT]

It's hard to say its better to finance at a low rate and invest the money. Another 2008 could happen tomorrow and the market crashes and the car was the better place to dump the cash. It's all a game of guesses. Do what you're comfortable with more than making this an investment strategy.

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