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As I posted a couple days ago, my car was obliverated by a geezer so I need a new one. I'm looking at the difference between leasing and loaning to get a blue M6 auto (can't wait for the 5M) with sport and bose. If you have a car with a similar set up, what do you pay for your loan or lease and what are the conditions?

Thanks!

(sorry... wrong group :( )
 

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Reading Topic: What do you pay a mo

Leasing vs. loan is something that gets hashed on every car board. Many people feel that leasing is the best thing since sliced bread. Many others feel that leasing is the dumbest thing ever (I'm on this side). I'll try to put out the impartial view, but I've let you know my bias, so here goes:

Leasing pros:
1. lower monthly payment
2. If you switch cars every three years anyway, you end up paying less

Leasing cons:
1. You own nothing
2. Mileage limited
3. You have to keep it immaculate
4. Any changes you make you have to undo (ie stereo)

Let's take a Mazda 6s auto and create two hypothetical situations:
1. Lease: $24,000; 3 year term; 50% residual; 6%; $2000 down
This basically nets you a $305 payment for three years. You would likely have a 12,000 mile per year limit.
2. Loan: $24,000; 6 year term; 6%; $2000 down
This nets you a $365 payment for 6 years.
At the end of three years, you owe about $12,000. Theoretically, the car should be worth a couple of thousand more than that if you sell it yourself.

At the end of six years, you owe nothing, and the car should still be worth several thousand dollars. Now when you go in to buy the next car, you have that much more to put down.
 

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Reading Topic: What do you pay a mo

Lease. Self-employed. I can write stuff off :D

And yeah sure I own it. I plan on buying it out at the end of the lease. In this case a km allowance also doesn't matter. Except of course for the warranty, which you'd have limits on either way.
 

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Reading Topic: What do you pay a mo

Also on most car loans you will pay less in interest than a lease. Which is figured by what is called the money factor. Money factor you say, what is money factor? Well here goes,

Money Factor is a reflection of the interest rate used in lease payment calculations (also called the "lease factor.") Money Factor is a method of expressing an interest rate that is more suited to computing your monthly payments. It is calculated by dividing the percentage interest rate by 2400 (regardless of the length of the loan). For example, 7.2% interest expressed as a money factor is 0.003.

So when you see that money factor multiply times 2400 and you get your interest rate. 9 times out of 10 it is higher then a new car loan rate.

And if you buy the car out at the end of the lease, unless you pay it off outright, used car loan interest rates are higher then new car rates. So you still pay more.

With the way interest rates are right now, leasing is a waste.

I often compare leasing and buying to renting or buying a home. If you can afford the monthly payment of a home why would you throw you money away renting. Just like a lease you end up with zip, zilch, nada, nothing, squat, zippo.

Just my 2 cents
 

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Replying to Topic 'What do you pay a mo'

I'm currently trying to figure this out for myself...
It comes down to this: are you going to get a new car after your payments on this one end?
For work purposes, I always have to be driving a car less than 4 years old.
Therefore, no matter how I calculate it, lease makes more sense.

This is all for a I4 GT package in Canada (leather etc, but no bose/gfx/roof) :
48 month lease with 0 down: 485/month = $23,280 by the end.. 25,000 km allowance(~15,600 miles.. which is plenty for me anyway)

48 month finance: 3000 down + 660/month = $34,680 by the end... assume I can sell it then for around 12 or 13 grand, I end up spending around $22,000 when all is said and done..

Since I don't plan any mods or to drive over 25K a year, I think I'd prefer to not have to put any money down and have almost $200 less in monthly payments, even if I end up spending about 1000 more after 4 years..
 

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Replying to Topic 'What do you pay a mo'

I am a prospective owner (so I haven't bought the car yet) but here is my info:

Lapis Blue 6S
auto trans
comfort package
moonroof
leather interior
Emissions package for Northeast
*NO* Bose (standard CD)

Invoice price - ~23,000 us

Let's assume I can walk out with the keys for $23,500.

My credit union's current interest rate is 3.9% for 60 months

I'm expecting to put down $5,500 at time of purchase, so the total amount financed will be $18,000

Spread that over 5 years, and the monthly payment is $331.

Because of Mazda's site, I know exactly where the new car is and what the VIN is. With the Kelly Blue Book site, I know what the invoice price is. Long live the Internet.
 
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Replying to Topic 'What do you pay a mo'

QUOTE
Originally posted by kenoka


            Leasing vs. loan is something that gets hashed on every car board.  Many people feel that leasing is the best thing since sliced bread.  Many others feel that leasing is the dumbest thing ever (I'm on this side).  I'll try to put out the impartial view, but I've let you know my bias, so here goes:

Leasing pros:
1. lower monthly payment
2. If you switch cars every three years anyway, you end up paying less

Leasing cons:
1. You own nothing
2. Mileage limited
3. You have to keep it immaculate
4. Any changes you make you have to undo (ie stereo)

Let's take a Mazda 6s auto and create two hypothetical situations:
1. Lease: $24,000; 3 year term; 50% residual; 6%; $2000 down
This basically nets you a $305 payment for three years.  You would likely have a 12,000 mile per year limit.
2. Loan: $24,000; 6 year term; 6%; $2000 down
This nets you a $365 payment for 6 years.
At the end of three years, you owe about $12,000.  Theoretically, the car should be worth a couple of thousand more than that if you sell it yourself.

At the end of six years, you owe nothing, and the car should still be worth several thousand dollars.  Now when you go in to buy the next car, you have that much more to put down.  [/b]
this is a pretty good lease rate. The best quote I got was 299 (out the door) and 3K down for 48 months (Price is 22500). Where'd you get your numbers from?

thanks
 
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Replying to Topic 'W

I don't believe in leasing as I generally keep the car for many years. My last car was a Plymouth Acclaim with 150,000 miles(I know hard to believe). I just picked up up my 6S with auto,sport, comfort, leaather, sunroof, bose, side air and curtains for 23,700. I wrote them a check for 10K, the rest over 3 years at 429/month. I am keeping the car I currently drive for my son as he is 16(boy is that bringing back memories for me:D and also giving me nightmares).
 

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Reading Topic: What do you pay a mo

My financing details (fully loaded GT-i4 manual):
$670/mnth for 60 months, 6.5% financing
No payments until October, though, thanks to Mazda's Spring Breakthrough Sales Event :)
 
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