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Hey everyone,
Just as many others have done before me, im looking into trading in the ol' 6s for the speed. After searching and lookin thru the pricing thread, what do u think is the smarter choice? buy or lease?

Im asking this because i bought my 04 6s fully loaded for $25k....i have 25k miles on it and its in great condition, plus like 1.2k in mods. KBB marks it at 18,000 private, 15,000 trade. now if my car dropped that much in 2 yrs...would a speed do the same in 2 years?

thanks in advance...
 

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looks like resale is gonna suck. you're better off leasing if this is just a daily driver for you. problem with leasing is that all your mods need to be reversible in the event you return the car. you are also limited on the amount of miles you can drive. so it all depends on what you plan to do to/with your car.
 

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Lease with the intention of buying it out. That's assuming you can get lease incentives better than the purchase incentives. Another friend of mine that is in finance pointed out that the lower lease payment improves your debt to income ratio in case you're looking to finance something like a house during the period of the lease.
 

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Another friend of mine that is in finance pointed out that the lower lease payment improves your debt to income ratio in case you're looking to finance something like a house during the period of the lease.
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Yeah, buying a cheaper used car will also lower your payments and your debt to income ratio. I would hesitate taking too much advice from this "friend in finance".
 

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Yeah, buying a cheaper used car will also lower your payments and your debt to income ratio. I would hesitate taking too much advice from this "friend in finance".
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In the context of his complete post, the advice from the "friend in finance" is actually pretty solid. If for some reason you disagree, you could always provide some sort of content in your post as to why that is.
 

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In the context of his complete post, the advice from the "friend in finance" is actually pretty solid. If for some reason you disagree, you could always provide some sort of content in your post as to why that is.
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Leasing a car builds zero equity in that vehicle. If an individual is leasing for the purpose of lowering debt to income ratio, that isn't sound financial advice. In that scenario, better financial advice would be to either not get a new car in the frist place, or buy a cheaper car. If the difference between the buy payment and lease payment is going to make or break your deal on a home, maybe you should be looking closer at your own personal financial situation.

Don't get me wrong, I lease my car. But not simply so I can qualify for a bigger house.
 

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Leasing a car builds zero equity in that vehicle. If an individual is leasing for the purpose of lowering debt to income ratio, that isn't sound financial advice. In that scenario, better financial advice would be to either not get a new car in the frist place, or buy a cheaper car. If the difference between the buy payment and lease payment is going to make or break your deal on a home, maybe you should be looking closer at your own personal financial situation.

Don't get me wrong, I lease my car. But not simply so I can qualify for a bigger house.
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I've always been intrigued with a lease option. Out of curiosity, why do you lease and why is it a better option for you? :)
 

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I've always been intrigued with a lease option. Out of curiosity, why do you lease and why is it a better option for you? :)
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My rational for leasing is that I normally get bored with a car after 3 years. Back in 04 when I bought my 6, I could lease for $330 per month for 3 years or buy for $450 per month for 5 years. Both of those quotes were zero down amounts. If I would have purchased instead of leased, after 3 years I would still owe approx $10,000 on the loan, and I would have paid an additional $4,320 over the course of the first 3 years. If I wanted to trade after 3 years, I would need to get around $14K to break even.

I work in the world of finance, and I know it would be smarter for me to buy the car. Heck, the smartest thing would be to buy the car on a 5 year loan, pay it off and then keep it at least another 5 years and have no payments during that time. Of course, my "I want a new car" bug outweighs my financial sense, so I have done 3 year leases on my last few cars. I have under a year left on my 6, and I'm already thinking about what I can get next... maybe a speed6!!!

There are a few other issues with leasing: 1) Make sure your contract contains the # of miles you need, because most mileage penalties are killers 2) You probably don't want to lease if you like to heavily modify your car 3) Don't put a large downpayment on a lease, if something happens to the car, in most cases you are SOL regarding that downpayment 4) Carry GAP insurance so that the vehicle is fully covered in case it is totaled or stolen. 5) Watch the lease for hidden fees such as security deposits and disposition fees (all of which are negotiable)
 

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Thanks for the info. For the most part, I think the mileage is the biggest concern...but if that's not an issue, it might be the choice for us who have "wandering" eyes! :drive:
 

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My last car when I kept for 12 years so financially it was a huge savings for me. My second car is the 6 and I purchased along with the same intent of keeping it 10+ years.

But one thing, 12 years ago I wasn't as into cars and all I cared about was getting through school and going from point A to point B.

Once you become a car enthusiast its hard to think of a car as just a transportation vechicle... and its always cool to want to try new cars -- even though its not finanically cool.

So I'm going to seriously consider leasing the next time round... cause I think the real advantage is if you flip every 3 to 4 years. Then you'd save a whole lot more by leasing than financing every 3 to 4 years.

But from a fincial standpoint, its not good because its better to borrow money towards something that builds equity (home) than borrow/lease money towards somethng that loses money (cars).
 

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When leasing, all you have to do is state the amount of miles you want on a yearly basis.

My last 3 cars have been leases and I always get 17K miles. You'll pay for it, but you can get it.

John :cool:
 

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When is leasing better? When the amount you pay is less then the amount the car will deprechiate (special deals) etc at the end of the term. If you strike up a deal that when you buy the car out its somewhat reasonable then its also ok. Say you buy a 20K car and you pay for it via credit, say 36 months, at 6% apr. I will omit tax and title. Your payments are 608 a month. You end up paying some 22K in the end and that is your cost. If you lease and at the end of your lease + buyout come up with a figure less then that, and then do not buy it out on credit, leasing becomes the better option. Now, take into account all the lease limitations such as milage, mods, etc etc and if its still better, you lease. So in the end after 3 years the car is worth 12K you lost 10 with a purchase. This is how I understand it but am no expert by any means, so someone correct me if im wrong.

Leasing as far as I know is often not the better choice because in the end you end up buying the car MSRP (lease + buyout) however special deals do come around where it is a few thousand cheaper to lease even if you dont buy the car out in the end because had you purchased it, you would have lost more due to deprechiation anyway.

So I'm going to seriously consider leasing the next time round... cause I think the real advantage is if you flip every 3 to 4 years. Then you'd save a whole lot more by leasing than financing every 3 to 4 years.


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This is true if you are paying say MSRP on cars and taking a huge loss in deprechiation over the course of that 3 years, however if you get a great deal on a car, and you buy and are able to recover most of that money back then its not.
 

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I took a look at both leasing and financing my car.I work at a dealership and at the time was in sales,I bought mine at S-plan and took all the rebates and put $1,500 down to cover the taxes.I have had it for 2 years and am in a $1000 equity situation.
It really all depends on where you want to be at with that car in 5 years on what you should do.
 

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The thing to remember is a car is always going to loose value. So buying new cars no matter how you look at it is just not a smart thing to do. But what fun is it buying a used car? The only way buying a new car makes the most sense is to buy it and drive it till the wheels fall off. Thats not going to work for most of us though because we all get way to bored with the same car for more then 2 or 3 years. So I guess we will continue to pay out the ass to have fun! The longest ive ever owned a car was 7 years. It felt like forever...
 
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