OMG Suze Orman says LEASE!

[Dj4Money]

 I'm in the middle of paying down my balances but around June/July I wanted to buy the car I wanted in the first place. I am for the first time considering a lease, in fact two leases (one person, one business).

 Who determines what a car is worth to counter the negative equaity? The bank that re-fi'ed my car says it's worth about $5,000 more than dealers say it's worth. Let's just say I take it to a dealer instead of a leasing company and they give me $10,000 for it. I would owe about $3,000 still. Would that amount be rolled into the lease and if so how much does that impact the payment?

 Is it better to work with a dealer or with a leasing company?

[Creditaddict]

Trading in your car value vs bank value for refinancing? Is that what you are talking about??
A bank uses blue book for financing.
A dealer will use black book if lucky when trading in.
Carmax uses auction prices over last 7 days and blackbook so usually that's your best bet if you aren't going to sell it yourself.

[Chris679]

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@drkaje wrote:

Why are people who can't afford down payments buying/leasing new cars every few years, anyway? Seems like they'll always be upside down or renting a vehicle.

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IMO down payments are for suckers. Buying/leasing new cars every few years is a bad financial strategy no doubt but the people who do it want to always have a new car and are willing to pay a premium for it.  I understand the math of leasing and I know intelligent people who do it but I find it hard to see it as anything other that throwing money away.  

[Creditaddict]

You only benefit from putting money down and buying a car if you actually will keep it and benefit from no car payments at some point.
If you trade in every 2-3 years you are far better off leading then buying it.

[Anonymous]

Leasing is a good strategy for businesses, and for people who are already committed to making a bad financial decision.

[Creditaddict]

LOL

[bada_bing]

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@Anonymous wrote:
Leasing is a good strategy for businesses, and for people who are already committed to making a bad financial decision.

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+1    lol, one of the best comments in a while.

[Schoolbuskid]

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@Creditaddict wrote:

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@DaylightSlaving wrote:

Frankly, you're renting until the finance agency mails you that sweet, sweet pink piece of paper in the mail.

Again, it comes down to your personality. Are you happy going through that hassle every year? Doubt it. Are you the type of person who'll be happy with the same car for 2-3+ years? Will you be happy with a car for 5+ years? Totally depends.

I don't think a lot of people put 0 down on a car and sell it back after a year, but that's just me. I could be totally wrong. It just sounds intensely irresponsible LOL.

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I have 2 personalities that I fight:

1. I wish I could have my Honda Accord back that was on a 24 month loan and would almost be paid off... it was a great car and in great shape.

2. I LOVED my Infiniti and it was only leased for 24 months, they are making so many changes with cars, i want the new one that is out... 24 months isn't to long to go before getting the latest.

long term I would like to be person 1 that is happy with a car for what it is and own it and put my cash elsewhere but honestly currently im person 2, rather i should be, can afford to be, i always want a different car... i practically want to buy a car each week as i drive on the road and see a new car, I want it!

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This is me, only i can't afford it haha!

[Anonymous]

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@drkaje wrote:

Why are people who can't afford down payments buying/leasing new cars every few years, anyway? Seems like they'll always be upside down or renting a vehicle.

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Exactly my feelings.  I 100% get the aspect of a lease when you own a business and that math checks out.

But whether folks are willing to admit it or not it always sounds like a generous % of non-buiness leases are folks getting into cars they truly can't properly afford.  Just because one is ok with a $500/month payment it doesn't mean they can afford it.

Maybe it's just me and what has evolved with my age but I can't stand the idea of any debt.  No, I'm not saying a mortage is bad debt and it is certainly worth it, but I would much rather take that $500 each month that was a car payment and either invest it elsewhere or put aways in cash reserves.  When I was in my 20's I made having a new car a priority, and oi boi what a mistake that was.

Also, I'd be lying if I said I was a "point A to point B" car person because I am not.  If I was in a place to do so I'd roll with an Audi S8 as a daily driver and have a high end sports car for weekend fun, but alas I am a powerball shy of that currently .