: Lease or Buy my V Coupe?



JohnnySpagz
04-26-11, 10:38 PM
Hey everyone

I am going to be picking up my V this week. Went to the dealer to look at some numbers and he thought that I should lease the car. My original intent when I first ordered the car was that it was something I was going to keep for a very long time. This will not be an every day car - just driven in good weather - Spring/Summer. I was going to put down a substantial down payment - but the Sales Manager thought that I should just lease the car, keep the money in the bank, then buy it at the end. It seems like it is a good idea, but I dont know.

Can anyone give me some opinions on what they think and maybe what you did when you got your V?

I really appreciate all the valuable information that I find on here.

Thanks!

neverl8
04-26-11, 10:56 PM
Bought mine used so take this for what it's worth. I have lost so much money buying new thinking I was going to keep them and then 2-3yrs at the most I was ready for a change. So I say buy used/like new or lease and keep you money in the bank. You going to lose close to the same amount of money turning in your lease or when you trade it in or sell 3yrs from now. JMO.

neuronbob
04-26-11, 11:56 PM
The lease deals on Vs have been AWFUL in the past.

Before you make your decision, crunch your numbers carefully.

When I bought in the depths of the Great Recession over two years ago, the lease deals were terrible, and I actually saved money by purchasing/financing. If GM is running a 0% or 0.9% finance deal, that's even better.

neverl8, I agree with your second sentence. Nowadays, I have decided that I should have fun as much as possible in this life and since I switch out every two years typically, I'll just enjoy the ride even if I have to pay a little. Actually, I've had the V a little longer than average for me and in fact am planning to keep it at least another year, maybe two. We'll see....

e6t
04-26-11, 11:58 PM
id be curious to see the actual numbers on your deal.

GM-4-LIFE
04-27-11, 11:13 AM
I leased my V Coupe and the numbers are much better on a lease than on a purchase. I would recommend leasing 100%. If for any reason you don't plan on purchasing it after the lease term is up, you can simply walk away. You aren't stuck with having to trade it in or sell it private party and taking a bath. I don't think I will EVER buy another car again. Leasing is great! It gives you flexible options.

JohnnySpagz
04-27-11, 01:16 PM
Thanks everyone.

The numbers are as follows:

Selling Price is 68634.00 (MSRP of 72210.00)

NJ Sales Tax up front, Registration, inception fees - $5564.99

36 months 12K a year $909.19

Residual would be 36312.00

e6t
04-27-11, 01:20 PM
Thanks everyone.

The numbers are as follows:

Selling Price is 68634.00 (MSRP of 72210.00)

NJ Sales Tax up front, Registration, inception fees - $5564.99

36 months 12K a year $909.19

Residual would be 36312.00


what is the quoted money factor? i could back into that, but it would be easier to see what they have quoted you.

that residual is only 50%.... that seems low but after searching, looks about where it was earlier this year...

36 Month – Residual 48% of MSRP (for 15k a year, add 2% for 12k) – .00031 Base Rate

is there anything being applied to cap cost?

JohnnySpagz
04-27-11, 01:23 PM
Thats the one thing he didnt give me - so I am not sure.

GM-4-LIFE
04-27-11, 01:24 PM
If you purchased the car, your payment would be higher. No doubt about that!

JohnnySpagz
04-27-11, 01:35 PM
The total Cap cost is 5564.99 of which:

$2541.84 is NJ Sales Tax
$430.00 is NJ Registration
$6.00 is tire fee
$263.00 is the dealer fees (paperwork, etc)

Total - 3204.84

I guess the remaining is a down payment?

CTS-V-TWIN

For sure, the lease payment would be less if I put the same out of pocket down - however if I financed I was going to put down more money.

thatcoder
04-27-11, 02:17 PM
pay cash

GM-4-LIFE
04-27-11, 02:43 PM
Put as little drive-off fees down as you can, lease the car and put that large downpayment you were going to put down in the bank. Why put all that cash into a depreciating machine? Don't buy it! Lease it now and buy it at the end of the lease term if you still want to keep the car after 3 years.

I did a 24 month lease term on my V Coupe. I have 22 months left, just in case GM comes out with anything new that I just have to have. I can always give the car back or buy the car at the end if I want. I like having options. Leasing gets me into a $70K car for little down with a lower monthly payment and I will never be stuck with the car unless I feel like buying it at the end of the term.

GS7
04-27-11, 03:01 PM
My original intent when I first ordered the car was that it was something I was going to keep for a very long time. This will not be an every day car - just driven in good weather - Spring/Summer. I was going to put down a substantial down payment - but the Sales Manager thought that I should just lease the car, keep the money in the bank, then buy it at the end. It seems like it is a good idea, but I dont know.

People have varying opinions about leases, but one thing few disagree with is that if you drive it infrequently/low miles, leases seldom make sense (except for the lease company), and you don't even need to run through various scenarios. Also, generally a bad idea to take advice from a salesman; they give the advice most beneficial to them.

With very low miles, you'll get far more for it as a trade in, and even more if you sell it yourself. If you can give a guesstimate of how many miles you'll drive per year (I assume way less than the 36,000 miles over 3 years the lease is based on) that will help in making the comparison. Also would need to know what financing rate/term you'd be eligible for, to compare lease vs buy (it can vary widely depending on your credit scoring). For example 2.49% to 2.99% loans are available for 36-48 month terms from some credit unions if your credit score is high enough. Some Cadillac dealers are currently offering 1.9% on V's for 36 months, but that may mean a higher selling price on the car.

JohnnySpagz
04-27-11, 03:24 PM
You make a great point - and that is what I was stuck on. I only drive 12K-15K a year now - so the mileage on the V would be at most 3K - 5K a year. SO at the end of 3 years I would be at 9K-15K for a 36K lease. That is why I am so torn.

Trust me, on my daily driver, I lease that and would again, because it is a daily driver. There are so many good points people mentioned here, but since I will be driving so little - I just wasnt sure what was best.

e6t
04-27-11, 03:33 PM
You make a great point - and that is what I was stuck on. I only drive 12K-15K a year now - so the mileage on the V would be at most 3K - 5K a year. SO at the end of 3 years I would be at 9K-15K for a 36K lease. That is why I am so torn.

Trust me, on my daily driver, I lease that and would again, because it is a daily driver. There are so many good points people mentioned here, but since I will be driving so little - I just wasnt sure what was best.


using that logic, you could lease the car put very few miles on it, sell it at the end for more than the residual and pocket the difference to recoup some of what you paid.

its all in what you want to do.

i wont finance a car unless the interest rate is less than what my money earns. i bought mine for 0%...

the one GREAT thing about leasing this car is that if you should decide you dont like it, you have a light at the end of the tunnel. you basically have a 3 year option on the car!

mrl859
04-27-11, 03:38 PM
People have varying opinions about leases, but one thing few disagree with is that if you drive it infrequently/low miles, leases seldom make sense (except for the lease company), and you don't even need to run through various scenarios. Also, generally a bad idea to take advice from a salesman; they give the advice most beneficial to them.

With very low miles, you'll get far more for it as a trade in, and even more if you sell it yourself.
You can trade in or sell a leased vehicle just as easily. Leases have payoff amounts as well.

mrl859
04-27-11, 03:39 PM
Put as little drive-off fees down as you can, lease the car and put that large downpayment you were going to put down in the bank. Why put all that cash into a depreciating machine? Don't buy it! Lease it now and buy it at the end of the lease term if you still want to keep the car after 3 years.

I did a 24 month lease term on my V Coupe. I have 22 months left, just in case GM comes out with anything new that I just have to have. I can always give the car back or buy the car at the end if I want. I like having options. Leasing gets me into a $70K car for little down with a lower monthly payment and I will never be stuck with the car unless I feel like buying it at the end of the term.Exactamundo!

mrl859
04-27-11, 03:48 PM
As stated so many times in this thread, a lease has four major advantages:1) MUCH lower payments overall with much less down, 2) you don't pay that horrific sales tax all at once, or at all if you don't buy the car out from the lease, 3) if the value takes a big dump or you just don't like it, you can walk away at lease end, 4) if you are truly disciplined enough to set the difference in payments aside, you can buy it at lease end for about the same as what it would have cost to purchase it initially. A lease just gives you a lot of options that a purchase doesn't (dependent upon lease rates versus interest rates, of course). And if you have car commitment issues, as I do, why pay all that tax every x months when you see something else shiny? Also, regarding Hipo cars, even the gas guzzler tax is residualized!

thatcoder
04-27-11, 11:49 PM
don't forget the mod-ability factor concerned with leasing. u'd have to revert it all back to stock when it is time to turn it in.