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My lease on my 2010 Town and Country ends in July. (wife's ride)
1. Release for 3 years at $442/mo.
2. Buy a new van at $601/mo. for 6 years.
3. Wait till my lease ends in July and buy it out for 3 yrs at $500/mo.
My vehicle is a 05 Taurus with 70,000 miles.
A van costs 600 for 6 years? Anything over 5 is too long.
turn lease in---"buy" 2010 town and country for $20,000 over 5 years which is roughly $340 before insurance, title etc tack an extra $35-40 a month to be conservative.....point is--you would own the car but someone else has already eaten up the inflated value of the car while lowering your payment.
I didn't know Cadillac made a van? Whew those are some steeeeeep prices there. Go to the Kia dealership and get one for $200 bucks a month. He wants to see ya, in a Kia!
i said goddayum! how many upside down loans have you built into that payment?
I don't know how this pertains to you but I am awesome. Paid off my truck last month, Colorado crew cab 4x4, 5 years 0% apr and only 40k miles on it. Payments were only $400 a month too. But that extra $400 a month pays for lots of booze and strippers. Were we talking about a minivan?
I don't know, I think you would be better off with the strippers in the Towne and Country.
That is one random photo.......pretty sure it is from adventures in babysitting........
You live in a land of 0% 60 month loans on used vehicles?
That's what the crew cab and bed is for bro.
Nah....was supposed to included in part of insurance and etc. sentence. My bad
Guinness makes you drop mud.
This post was edited by y2kMgrad 18 months ago
You realize that leasing a vehicle is just about the worst investment anyone can make, correct?
Well, that depends whether you're going to eventually buy it or not. Doesn't every dollar go toward the cost of the vehicle?
Leasing or buying a car isn't an investment to begin with.
Buying a vehicle is not an investment; It's a purchase.
A car fleece is basically renting a car. You pay $400 a month and at the end of the new car lease, you turn it back in. If you want to buy it, you are buying it for what they estimate at the beginning of the fleece to be the market value. At the end of the lease, it’s called the residual value. If you pay $400 a month for 60 months, you pay $24,000 before turning it in. The car will not have gone down in value more than that, because the car companies would lose money if it did. When they get the car back, you will have paid them more than the car has depreciated during that time
No. Generally, that ~$3k you pay up front is paying the interest in advance. The payments you make after that are usually counted against the value of the car. If you amortize that up front interest payment, you'll find your interest rate is much higher than market.
When buying cars, your concerns should be:
1. Total amount financed (watch for dealer fees, etc.)
Monthly payment is a product of 1 & 2. If you start with monthly payment (exactly what they want you to do), you're fooked.
Actually you are paying their estimated depreciation over the lease term. The idea is for you to pay the same amount over the lease term as the car depreciates. Thus, if you were to buy it after the lease term, the purchase price will be roughly equal to the actual value.
The scam is the down payment, which is not applied to the value of the car.
Now, if you can get a good lease payment with no money down you might have a chance to come out ahead.
So if you decide to buy it outright, instead of turning it back in, that 24k will go toward the original cost of the vehicle, right? So if the original cost of the vehicle was 30k, you would still only owe 6k at the end of the lease, right?
Car companies make more money on leasing you the car than if you bought the car with cash, according to the National Auto Dealers Association.
Of course, because they're charging an interest rate. If you bought the car with cash you wouldn't have to pay interest.
Not quite, you still pay money factor (finance rate for leasing) so in that example part of that 24k you paid will go towards that and tax. Also you will owe tax on the residual value if you decide to purchase, as tax is paid monthly on a lease.
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