how much do you pay on your lease?

[sde]

i was wondering what kind of payments are being made on a 48 month lease of a gt ltd? ballpark is fine. i want to compare that to the purchase payments.

[mmm def]

36 mo I'm paying $390. (just for reference)

[rallispec]

Out of curiosity, if you dont mind me asking - i'm always interested to hear why people choose leasing over buying.

 

I'm paying about 400 in monthly payments.. I couldnt justify leasing and then having nothing to show for it in 3 years. When i'm paying a little more per month now - but can mod my car with no fear and have unlimited miles.

 

And in 3 years i can sell my car if i really wanted too- and depending on how well this car holds its value - might even come out ahead of whats left on the loan.

[Jaxx]

406 for 42 (i got screwed)

[Jeffn]

I'm getting 399+tax w/absolute 0 down for 39 mos on a SB1(GT Ltd Auto wagon). decent deal? I think I'll offer 375. mo.

[kinddog]

Out of curiosity, if you dont mind me asking - i'm always interested to hear why people choose leasing over buying.

 

I'm paying about 400 in monthly payments.. I couldnt justify leasing and then having nothing to show for it in 3 years. When i'm paying a little more per month now - but can mod my car with no fear and have unlimited miles.

 

And in 3 years i can sell my car if i really wanted too- and depending on how well this car holds its value - might even come out ahead of whats left on the loan.

 

It's obvious you put down A LOT up front to have $400 buying payments. You should at least tell the truth.

 

Second, for people who like to change cars every three years, it makes all the sense in the world.....

 

Cars are DEPRECIATING assets, unlike a home. So the Rent/Buy analogy doesn't work here. The ONLY way that buying a car is a good idea is if you keep it for 10+ years and absolutely run it into the groung. Then, yes, buy away. Also, if you put a lot of miles on your car, then leasing might not be best. But many many people never exceed 12 or 15K, so that's not an issue.

 

Leasing wouldn't still be so popular today if it didn't make sense, you know?

 

I put zero money down, and got $390/mo for 39months. That's with tax and the high-mileage limit. For a $31K Legacy GT.

 

My payment would be higher, but I know someone at Subaru, so I got it at dealer cost. ($28-something)

[melayout]

Read the lease tips on Edmunds they are very helpful. One thing I found was that if you are going to buy the car at the end, mileage overage doesn't matter. You can also negotiate a different buy-out price depending on the current market's price instead of the residual value.

 

Leasing is usually for people that like new cars every few years and have other cars so they don't put a-lot of miles on the leased car or if it is a company lease car.

 

Now for my situation, I'm a new graduate who just started a new job and I was looking a for a new car with a low monthly payment. So, here is what I test-drove in order and with what intention:

 

1. VW Jetta - finance, fell-in-love, thought of AccessPort

2. VW GTI - finance

3. Subaru RS 2.5 - finance, weak

4. Subaru Legacy LGT - for kicks and that's when I creamed my pants

5. Nissan 350z - Nice, fast but small and not practical

6. Infiniti G35 Coupe - Nice, fast, but smaller than 350z, not practical and too expensive for me

7. Subaru WRX - Finance, Sedan, fast, but LAGGGGY

8. Subaru LGT - creamed my pants again

9. Subaru Un-LGT - the color I wanted, monthly payments I can afford and only one they had, so I leased it.

 

Even though I research before I buy anything, I was probably screwed cause' I couldn't think of anything else but the car, so here is the deal I found out I got:

 

Subaru Un-Limited Legacy GT 5EAT

$3000 total downpayment includes everything + first month payment

$400/month for 39 months

15K miles / year

about $28,000 total car price

about $13,000 for residual value

 

They suckered me into getting the 3-month gap extended warranty upfront for $750, but as I'm going to buy the car in the end, hopefully it will pay for itself.

 

Now, I went for a lease because:

1. Much lower monthly payment compared to financing, especially that I don't have any major credit history, i.e. loans or mortgage, which would have hit me with a very high finance rate. Also they had leasing offers for new college grads, which made it more attractive.

2. Much easier and cheaper to get out of lease, e,g, if I lost my job, than having to sell the car at a loss and pay off the loan, I think. Also, I hate loans, I prefer to buy stuff outright with cash.

3. If next year's model is better, I can invest 2-3k and get into the newer car

 

Also, I intend to buy the car at the end, because I think I will have advanced in my career and be in a better financial situation to pay for the car outright.

 

I thought of buying a used car, but for something that would have fit my budget, it would have had to be a very high mileage car, which will probably be accompanied by a lot of maintainence work and therefore not a good investment.

[Whitestar Pilot]

It's obvious you put down A LOT up front to have $400 buying payments. You should at least tell the truth.

 

Second, for people who like to change cars every three years, it makes all the sense in the world.....

 

Cars are DEPRECIATING assets, unlike a home. So the Rent/Buy analogy doesn't work here. The ONLY way that buying a car is a good idea is if you keep it for 10+ years and absolutely run it into the groung. Then, yes, buy away. Also, if you put a lot of miles on your car, then leasing might not be best. But many many people never exceed 12 or 15K, so that's not an issue.

 

Leasing wouldn't still be so popular today if it didn't make sense, you know?

 

I put zero money down, and got $390/mo for 39months. That's with tax and the high-mileage limit. For a $31K Legacy GT.

 

My payment would be higher, but I know someone at Subaru, so I got it at dealer cost. ($28-something)

 

 

Dave Ramsey would eat you for breakfast.

 

The "smartest" thing to do is WAIT until you have the money to afford the car outright with NO PAYMENTS.

 

The 2nd option is to finance the car, make payments for X amount of years, and then you will own the car.

 

The worst option is to get fleeced, or uhm... lease the vehicle.

 

http://daveramsey.com/

 

I'm only trying to help! If someone wants to donate a portion of their salary to an automotive leasing company throughout their life, then that's their decision.

 

Oh, and rallispec's payments are probably lower because he owned a trade in vehicle.

 

And as for the popularity comment,

 

Payday loan services are HUGE! Are they smart?

 

Actually people in general are pretty dumb. That's why everyday I see this car commercial with a masked man on a horse shouting, "I"m the Loan Arranger!" 'Bad credit, no credit, bankruptcy, no problem! You are dumb, and we will take advantage of you!'

 

--

[Guest JessterCPA]

I pay $450/mo on a 36 mo, 18k/year lease with almost nothing down.

 

Here we go again..lease vs. finance vs. buy outright.

[sde]

thanks for the replies and sorry to bring up a topic that has been discussed before, but i wanted the details

[smoss]

I just leased a new Legacy GT limited 5spd. I only paid $900.00 (tax and all fees) when I picked up the car. My payments are $398 a month for 39 months. They also included at no charge:

 

1 Auto dim mirror with homelink

2 Extended my warranty until 48 months

3 Gave me the spoiler.

4 They are storing the Subie for one month until I sell my Audi A4 lease (piece of crap)..........

 

 

By the way this is only a 12k mile year lease which I never go over. The buy back at the end of the lease is 14k. Since I take care of my cars I have sold my last leased car for more than the buy back. I made around 2k on it. So I don't consider leasing to be a bad deal. Also, I love getting new cars every 3 years...... Any thoughts?????

[retslo]

We leased Legacy GT Ltd Wagon for $374 (including tax) - 39 months, 16K per year, standard maintenance included with $1000 paid (fees and other stuff) at delivery.

[melayout]

We leased Legacy GT Ltd Wagon for $374 (including tax) - 39 months, 16K per year, standard maintenance included with $1000 paid (fees and other stuff) at delivery.

 

Man, I got screwed big time.

 

Mojo

[mjcdriscoll]

i put nothing down got the lgt limited for 26k plus the 3k i was upside down on my impreza and am paying $600 for 60 months

[Driver72]

$1,700 down including all taxes, license, fees, first months payment, everything and

my lease payments are $399 a month for 39 months.

LGT Limited 5MT

 

I also got the STI short throw, rubber mats, subwoofer/amp, security system upgrade, wheel locks, Momo shift knob.

15K miles a year and custom ordered with 6 miles on it at delivery.

Sticker was 29,900+

Deal was written at $100 over invoice.

Residual was 52% (if I remember correctly).

[StopSweatinMe]

wow i guess i got a pretty good deal....

$1000 down

48 month lease

12k miles/yr

 

$348/month

+ gap insurance + $5k worth of dings/dents are overlooked when i turn the car in.

$360/ month.

 

The car is a LGT Limited 5MT. Sticker was 29,871.

[smoss]

No, you got an average deal. A 48 month lease for me would have been around $350.00 with 1k down. I didn't want a 48 month lease since at that point the car will be out of warranty (I had it extended anyway) and it will need tires and brakes. I didn't want to put tires and brakes on a car that I didn't own. The only 48 month lease I did was my last Audi lease where brakes were fully covered (and it's a good thing). I needed all brake pads and rotors at 30k and the Audi guy said that was normal for an Audi........ What's up with that???

 

Also, 48 months is a long time to dirve a car for me. Just think about all the new things the new legacy will have by that time. 39 months is a lot easier to handle.

 

Anyway, can't wait to pick up my Subie from dealership next week. Now I just have to sell the Audi, or turn it in.....

[jdepew]

I'm paying about 400 in monthly payments.. I couldnt justify leasing and then having nothing to show for it in 3 years. When i'm paying a little more per month now - but can mod my car with no fear and have unlimited miles.

It's obvious you put down A LOT up front to have $400 buying payments. You should at least tell the truth.

 

He couldn't have put down that much, I put down 10K on a LGT Ltd and my payments are $303/month. (26,900+tax/tags)

[RockHart]

Zero down, 48 month 15k miles/year - $345 with tax.

6% tax here...

Non Ltd GT

[OCDetails]

I'm paying $440 a month for 62 months and then the sucker is mine. I am the type who likes to drive the same car for 80 or 100 thousand miles before selling it and getting something else. I buy the cars I like and it usually takes me awhile to find one I like more. Maybe in 6 or 7 years I'll find a car I like more than the Legacy and buy that one. Or maybe I'll do like I did with my Accord and just enjoy being payment free when it is paid off. The car is worth nearly $10K and its paid for and waiting for my wife to find a car she likes better so I can sell it and get a new car payment.

 

The bottom line is to not lease the car if it is something you want to buy. That never ever works out. If you want a new car every few years then leasing is great. You'll always have a car payment, but you'll also have a car that is under a full warranty. You'll never own it, but unless your plans are to customize it, then ownership doesn't really matter. Just don't run it into the ground while you have it and leasing can be fun. Worse case scenario is that you absolutely love your LGT and at the end of your lease you get another brand new one. Gee... lemme think about that one... lol

[Driver72]

Out of curiosity, if you dont mind me asking - i'm always interested to hear why people choose leasing over buying.

 

I'm paying about 400 in monthly payments.. I couldnt justify leasing and then having nothing to show for it in 3 years. When i'm paying a little more per month now - but can mod my car with no fear and have unlimited miles.

 

And in 3 years i can sell my car if i really wanted too- and depending on how well this car holds its value - might even come out ahead of whats left on the loan.

 

To answer this question it's mainly because for less money than what you pay for owning the car, you get to drive a brand new car every 3 years.

 

You say you are paying $400 a month now. But unless you put a pretty big chunk down, I'm guessing that's for 60 months...or more!!

In 4 years, you'll still be paying $400 a month for a 4 year old car with 60,000 or more miles on it and have another year or so of those payments left.

In the meantime, those of us who leased, will be driving a brand new car after 3 years and just about the time you are paying your car off, will have yet another new car in the driveway soon.

Granted, you then don't have car payments, but you are driving a 5-6 year old car with 80,000 miles on it. No warranty, and have all kinds of maintainence in your near future. You've already gone through a couple sets of tires, a set of brakes, and who knows what else.

Another year past that, when the car is pushing 100K miles, you'll be jonesing for a new car. You'll sell your 6-7 year old car and have payments all over again anyway.

So, you avoided car payments for maybe a year or so, but spent hundreds on repairs and upkeep, drove around in a car that no longer thrills you, and had a tough time selling a car with 100K miles on it, so you took a beating on the selling price.

 

All the while, we who've leased, have enjoyed 3 NEW cars. Had them fully warrantied, all maintainence taken care of, just had to drop off the keys when finished, and didn't feel quite so bad when we "beat" on the car a bit because we knew we were going to turn it over before the warrantied expired anyway.

 

And mileage is not an issue. You can get as many miles on a lease as you please. You say, "but you pay more for those miles"

I say, "so do you when you own." The more miles you put on a car that you own, the less it's worth when you sell, so the less money you're going to get for it.

 

You say, "but when you lease you have to pay for "excessive" wear and tear."

I say, "when you own, you do to." The more beat up, damaged, or thrashed your car is when you own it, the less it's worth when you go to sell it. The less appealing it is to people, and if you want to sell it fast or for top dollar, you need to spend money to fix of your excessively worn car.

 

I could go on and on.

 

But there's a reason that financial planners, investors, and consultants say, "buy what appreciates, rent what depreciates."

 

99.9% of cars depreciate...therefore rent (lease).

[OCDetails]

By that logic I assume you lease your electronics including your computer, stereo, TV, etc. If I buy a car and drive it and love it for 5 years and then sell it for 12 or 15 thousand dollars to put down on another car, how is that a bad decision? Imagine what would happen if you could put 12 of your car payments in a bank account. Think of what kind of down payment that would be. Buy and sell your cars responsibly and you could end up just paying cash for a car after awhile.

[imperator]

In NY apparently they don't lease anymore. They do "balloon financing".

 

I got my base 05LGT with dimming mirror for $2100.00 down (taxes, plates), $337.00/mo for 42 mo, with a final payment of $11,900 with the option to return it at the end with 12,000 miles/yr allowed. I didn't go looking for this, but I think this is the best of both worlds. Low monthly payment, the title is in my name, and if I decide to sell it at the end instead of keeping it, it should be worth substantially more than the final payment. The car itself was $23,600.

[StopSweatinMe]

In NY apparently they don't lease anymore. They do "balloon financing".

 

I got my base 05LGT with dimming mirror for $2100.00 down (taxes, plates), $337.00/mo for 42 mo, with a final payment of $11,900 with the option to return it at the end with 12,000 miles/yr allowed. I didn't go looking for this, but I think this is the best of both worlds. Low monthly payment, the title is in my name, and if I decide to sell it at the end instead of keeping it, it should be worth substantially more than the final payment. The car itself was $23,600.

 

I almost did the "baloon financing" , but its a little different than a lease. If i turn my lease in 4 years from now and its worth $10k i have no worries even though the estimated value was 12,700 when signing the lease. However, if its only worth 10k after baloon financing then u are gonna have to pay that $2700. The lease was~$12 more per month than the baloon, but i leased to have peace of mind.

[Driver72]

By that logic I assume you lease your electronics including your computer, stereo, TV, etc. If I buy a car and drive it and love it for 5 years and then sell it for 12 or 15 thousand dollars to put down on another car, how is that a bad decision? Imagine what would happen if you could put 12 of your car payments in a bank account. Think of what kind of down payment that would be. Buy and sell your cars responsibly and you could end up just paying cash for a car after awhile.

 

 

Or think about how much interest you can make on the thousands of dollars you put down on a car to make the payments into the range of a lease.

Or think of how much less your payments are with a lease if you put equal amounts down, and then think of the thousands you'll save over a couple years of payments.

 

No, I don't need to lease my computer, TV, stereo, etc. Because I was able to buy them with the extra money I had laying around because I didn't need to put $5-8K down on a car in order to keep my payments at $400 a month.

There's a reason why the majority of cars are leased. There's also a reason even the wealthy lease. The vast majority of cars over $50K are leased.

These aren't stupid people.