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Old 01-16-2013, 09:07 PM   #1
mlatner
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Thinking of leasing

So I'm kind of stuck and need some opinions. All I have right now is a work van that I can only use for work and my girlfriend wants me to get my own car soon. I looovvvveee the Golf R, but with the MK7 R supposedly coming in 2-3 years in US, I'm wondering should I wait, lease a GTI for now at a 3 year lease (thinking 4dr, mt, sunroof, laguna wheels) or buy.....or even buy the MK6 R?
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Old 01-16-2013, 09:23 PM   #2
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Leasing is a poor financial move in most cases - even short term. You simply have to run the numbers for yourself as everyone is different. Leasing actually turned out cheaper for me due to my mediocre credit but on average it is not.
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Old 01-16-2013, 09:25 PM   #3
mlatner
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Yeah it would be about 70 a month cheaper for me to lease than to buy. I'm worried about being upside down in payments when the MK7 R comes out...well if it comes out.
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Old 01-16-2013, 09:40 PM   #4
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Leasing can be a good choice if you have good credit, dont drive more than 12k mikes per year and trade up cars every 3-5 yrs. if youre going to finance new cars with large down payments, people can go ahead and show me on paper how thats a better financial move, but its really not. Say you put 5k down on the R and finance it for 5 years. Your payments will be high, youll pay taxes on the lump purchase, not just the payments like with leasing, and youll pay interest for the life of the loan. In the end after its all paid off, sure youll have "equity", but you will have also paid out a lot more money over that term than you woukd have leasing. Anyone who disagrees with me can go ahead and do the math.

Caveats are you must take good care of vehicles, have top tier credit to get the lowest money factor, no down payment or drive off fees etc, must not drive more than said miles per year etc. if you have a small business too you can write off the payments etc.

If none of that applies to you then dont lease.

For reference, my car was bought cash after less than a year of payments, i own it outright and we leased my wife a tiguan and got an extremely good deal. Everyones situation is different and there is no blanket lease or dont lease rule. For some people it works well and for others its a nightmare. If youbdont understand how leases work and how they can work for you and only want a lower monthly payment, thats a bad reason to lease since youll most likely get into a bad lease and not know how to negotiate a good lease. Leasing is just another way to finance a car.
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Old 01-16-2013, 09:44 PM   #5
mlatner
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I definitely can't buy a car outright, or even pay it off in a year. I've been paying on student loans for 3 years and they're still expensive for me. It would take me years to save for a car to pay cash that I simply can't do. More than likely I'd finance 60-72 months...
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Old 01-16-2013, 09:47 PM   #6
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Originally Posted by McQueen77 View Post
Leasing can be a good choice if you have good credit, dont drive more than 12k mikes per year and trade up cars every 3-5 yrs. if youre going to finance new cars with large down payments, people can go ahead and show me on paper how thats a better financial move, but its really not. Say you put 5k down on the R and finance it for 5 years. Your payments will be high, youll pay taxes on the lump purchase, not just the payments like with leasing, and youll pay interest for the life of the loan. In the end after its all paid off, sure youll have "equity", but you will have also paid out a lot more money over that term than you woukd have leasing. Anyone who disagrees with me can go ahead and do the math.

Caveats are you must take good care of vehicles, have top tier credit to get the lowest money factor, no down payment or drive off fees etc, must not drive more than said miles per year etc. if you have a small business too you can write off the payments etc.

If none of that applies to you then dont lease.

For reference, my car was bought cash after less than a year of payments, i own it outright and we leased my wife a tiguan and got an extremely good deal. Everyones situation is different and there is no blanket lease or dont lease rule. For some people it works well and for others its a nightmare. If youbdont understand how leases work and how they can work for you and only want a lower monthly payment, thats a bad reason to lease since youll most likely get into a bad lease and not know how to negotiate a good lease. Leasing is just another way to finance a car.
well put...
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Old 01-16-2013, 09:57 PM   #7
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Quote:
Originally Posted by troyguitar View Post
Leasing is a poor financial move in most cases - even short term. You simply have to run the numbers for yourself as everyone is different. Leasing actually turned out cheaper for me due to my mediocre credit but on average it is not.
Not really. In a way leasing protects you from vehicles that end up having terrible resale values since your guaranteed a fixed buy out price. Also money facors are typically much less than interst rates so you save money for 3 or 4 years your leasing.





Quote:
Originally Posted by McQueen77 View Post
Leasing can be a good choice if you have good credit, dont drive more than 12k mikes per year and trade up cars every 3-5 yrs. if youre going to finance new cars with large down payments, people can go ahead and show me on paper how thats a better financial move, but its really not. Say you put 5k down on the R and finance it for 5 years. Your payments will be high, youll pay taxes on the lump purchase, not just the payments like with leasing, and youll pay interest for the life of the loan. In the end after its all paid off, sure youll have "equity", but you will have also paid out a lot more money over that term than you woukd have leasing. Anyone who disagrees with me can go ahead and do the math.

Caveats are you must take good care of vehicles, have top tier credit to get the lowest money factor, no down payment or drive off fees etc, must not drive more than said miles per year etc. if you have a small business too you can write off the payments etc.

If none of that applies to you then dont lease.

For reference, my car was bought cash after less than a year of payments, i own it outright and we leased my wife a tiguan and got an extremely good deal. Everyones situation is different and there is no blanket lease or dont lease rule. For some people it works well and for others its a nightmare. If youbdont understand how leases work and how they can work for you and only want a lower monthly payment, thats a bad reason to lease since youll most likely get into a bad lease and not know how to negotiate a good lease. Leasing is just another way to finance a car.
Pretty much this.

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Old 01-16-2013, 09:58 PM   #8
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So if I have average credit, planning on having my dad with excellent credit co-sign. Want a fun car now, but also want the MK7 R when it comes out. What would work best?

^^The top comment above is why I was thinking of leasing. At the end of the term I can just hand the car over, not have to worry about having negative equity when I want to trade in.
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Old 01-16-2013, 10:01 PM   #9
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well put...
I used to say it was dumb to lease until i really sat down and started crunching numbers. People seem to forget all the out of pocket expenses associating with the joys of car ownership as well. For instance, my car is still well under powertrain waranty, is only 3 yrs old and i just dropped 900 bucks on tires. My wife had her last car for ten years. When we added up total cost to purchase the car, down payment, repairs, taxes, fees, maintenance, finance charges etc. it basically cost her about 50 bucks less a month to own that car (which was just a bummer of a car after about five years) vs. the cost of leasing her current brand new car, or comparable, every 36mos. So YES, it was about five grand cheaper over ten years for her to own and operate the same, very reliable, car than if she leased. She also cursed that car for the last three years and we had to shell some serious coin towards the end for maintenance and repairs.

Whoopie. If its worth it to you have five grand more after a decade the trade off being that you had to drive the same shitbox for 1/7th of your entire life, then ok. Otherwise......
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Old 01-16-2013, 10:07 PM   #10
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Originally Posted by mlatner View Post
So if I have average credit, planning on having my dad with excellent credit co-sign. Want a fun car now, but also want the MK7 R when it comes out. What would work best?

^^The top comment above is why I was thinking of leasing. At the end of the term I can just hand the car over, not have to worry about having negative equity when I want to trade in.
Uhm... Thats a big assumption. I dont want to get into all the pitfalls of your specific plan but id say your dad is making a mistake, cosigning on a lease for you. Sounds to me like you should suck it up and buy a beater and drive it while you save money. If you need a cosignor to get a loan, you need to get your life in order before you drive around a new car.
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Old 01-16-2013, 10:37 PM   #11
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Originally Posted by mlatner View Post
So if I have average credit, planning on having my dad with excellent credit co-sign. Want a fun car now, but also want the MK7 R when it comes out. What would work best?

^^The top comment above is why I was thinking of leasing. At the end of the term I can just hand the car over, not have to worry about having negative equity when I want to trade in.
i mean... i love the R as well and I can def own one if I wanted to... but i feel as if I am talking to a young me. Don't make the mistake of buying a car you can't afford or sign for yourself. Take the time to do things right and do it on your own if you can. There is nothing wrong with a GTI... yes we would all love an R... but, be smart. If you are lucky enough to do this then congrats. but just think about it...thats all...
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Old 01-16-2013, 10:41 PM   #12
mlatner
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Yeah I am only 24, that's kinda what I am thinking also. I mean, I miss one payment and I have to be screwed over for 5 to 7 years on my credit? And my school loans were bought out several times by sallie mae and now on my credit report it shows up as 13 different loans making my credit look bad. I can afford the GTI pretty easily and I could afford the R also, it would be a little tighter. I don't want to have to wait til I'm old to get the things I want and enjoy life either. But I'm thinking a GTI would be a smarter choice.
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Old 01-16-2013, 11:23 PM   #13
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Originally Posted by mlatner View Post
Yeah I am only 24, that's kinda what I am thinking also. I mean, I miss one payment and I have to be screwed over for 5 to 7 years on my credit? And my school loans were bought out several times by sallie mae and now on my credit report it shows up as 13 different loans making my credit look bad. I can afford the GTI pretty easily and I could afford the R also, it would be a little tighter. I don't want to have to wait til I'm old to get the things I want and enjoy life either. But I'm thinking a GTI would be a smarter choice.
i just turned 26 today... I'm married, bought a house, and just got a 2013 GTI... i would love an R... trust me... i want to enjoy life as much as I can too... i know that feeling... but I also want to have money in my pocket for other things...i have school loans... i know how you feel... but this is the problem with our generation... we want and want and want, but sometimes aren't smart... I am a manager of a bank and i see it all the time... but hey if u can get an R and afford everything that comes with it.. go a head... =)

just trying to help... either way its all up to you... this is just my 2 cents...
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Old 01-16-2013, 11:27 PM   #14
mlatner
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Yeah I understand. Thanks for the input, I really appreciate it. You're right though. I should just go with the GTI. $200 less a month payment. I'll use that money to put more toward my student loans.
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