What's going on errybody!? I need some wisdom...

I was thinking about putting like $5-7k down on a new MCS and leasing it for 36 months. BUT...I am going to buy it after my lease is up, so I'm not going to be worried about any restrictions that come with a lease...i'm going to drive it like I own it right from the start. Now, the reason I would do that is so that I can get into the car sooner and for less money up front(to be at the same monthly payment if I financed I would have to put like 12-15k down). As far as I know, about the only true financial benefit to leasing is that you can write off 100% of it on your taxes?...as opposed to a traditional finance where you can write off 60%? If it's a $30k car, will I end up paying more one way or the other?

Anyway, your input is much appreciated and can't wait to figure out what I'm going to do!

 

Wait until you can afford to buy. Leasing will cost you more in the long run. No matter how you figure it out leasing is not a cost effective option.

 

tag is right buy.

 

I agree with what's said above. Buy it. Look for a longer term loan if needed to keep the $ low, but a lease is not a good deal for you in the long term.

 

You must be self employed (?)

I'm not aware of a way to write it off on your taxes
when you work for the man.

I have a good friend that is self employed and he
buys a new car every 4 years. He does stuff with it
for his taxes. He says he can either lose it on a new
car or he will lose it in taxes. (he prefers not to buy
so often).

The financial information shows not naming any call leasing
Fleecing, as in you get fleeced.

 

There was a recent thread of someone else who leased .... and the bottom line was that the MINI cost him $10K more than if he had bought it. His advice was to never lease a car like a MINI which holds its value so well!! He even kept his mileage low because they "said" it would get some payback in the end .... It did not!!!

 

I've known dozens of people who have leased vehicles. I've only know one who leased a second time. That should speak volumes.

 

Look into the MINI select financing. It's kind of a lease and traditional finance combination.

http://www.miniusa.com/#/financialSe...hasePrograms-s

 

That's what I was talking about! Heck yeah. A rep at the dealership told me about it, but he called it leasing, and then buying...but it's not. Why wouldn't everyone do MINI Select?? Thanks for finding that...I'm stoked!

 

MINI Select is a lease with a different name. It's still a lease. I looked into it when I bought my MINI. It would have cost me more per month if I went with MINI Select over buying and I still would have a ballon payment and the end of the "lease".

 

Oh. Dang it! Is there no hope for me!? The balloon payment doesn't sound bad because you can just finance that...and the financing will probably end up being around the same monthly amount or less than what I was paying for that initial term, right? I mean, if the car is $30k, I put $7k down leaving $25k to be paid. If I finance for 36 months at like $300/mo, that'll be another $10,800 paid toward the car...and then that would leave $12,200 to finance. Financing that would be cake. And hopefully in 3 years my business will have blessed me to the point that I don't even feel that remaining payment...

 

Plus, unlike a lease you can customize your MINI all you like.

 

To me the lease seems a complete waste of time. But the traditional finance and MINI select both have advantages and disadvantages. I would say compare the pro's and con's and go with the one that works best for your situation.

 

Leasing is an attractive option if you save the money that you "get back" with the lower payments each month for the balloon at the end of the term. The reality is that most (closer to all) people that purchase a lease end up financing the balloon and in that scenario you end up spending extra dollars in finance charges. These additional finance charges can add up quickly. Also, if you are planning on ignoring the mileage restrictions, et cetera that come with a lease then your car's value will be decreased relative to the residual amount left which makes your balloon go up.

 

I don't think anyone mentioned 1 very important thing about leasing.

1. If you don't have excellent credit, don't bother. That's your bargaining chip.


Personally, I like having a new car every 3 years. It's a personal choice. I never pay for service or pay for brakes, tires, etc... (36k miles/3 year lease). I'm ok with always having a car payment.

Here's how I break it down.

Example (my other lease). Ford Edge 2007, MSRP = $32,000
Financed 5 years @ 6% = Monthly is about $566, probably a lil more. (I own, guess what - I don't want to deal with it)

Lease 3years/36miles = $380 (including tax), 3 years. No Money down. [I know, it's a ford]

Another Lease I have: Leased a new 2005 Honda Accord (MSRP 22k), no money down, 3years/36k miles, payment = @$274 (inclduing tax, FL = 7.5%)


Some people will say, they get a lease to have lower monthly payments and plan to buy at the end.

Why would I make payments for 3 years, and possibly have a 12k ballon payment at the end of 3 years (probably finance it, I don't have that kind of cash). I don't want the car, and I don't want to service/maintain. (I know, I'm lazy and spoiled).

It comes down to personal choice. What are your future goals?


I haven't piked out the MINI I want yet, but I figure I can do 300/month with no money down, on a MSRP of 24k. It amazing when you have good credit and are serious to buy, what the dealers will do. In my case, I have several MINI dealers around so that also helps.

Peace,
Alex V.

 

Frick. Anyone want to donate to the "Get Me A Mini" fund? Just need about 5 grand more and I'll put 13k down and just buy the little guy!

 

buy to buy

 

false. if you buy the car after you've leased it the residual/balloon will not be affected by mileage in any way.

If you turn it in at the end of a lease and you went over milage you'll have to pay 20 cents per mile.

 

Read the fine print on the MINI select deal. I've just moved to MD from VA but was ordering my Mini from a dealership in VA. Even though i was buying from a VA dealer, i couldn't use MINI select because the car was actually being garaged in MD. Bottom line: it's only available in certain states -- and MD is not one of them.

Also, they do some kind of college grad program w/ Mini financing if you've graduated in the past 12mo. I was able to get a better deal without going through Mini Financing altogether though.