: Lease Info wanted



gavinsxpops
06-03-06, 08:05 PM
Hello all new to the board here. Strange question but anybody have an 06 through gmac lease, if so what are the terms, wondering if i should go new with a lease or 05 to buy. Thanks in advance.

dqw1
06-03-06, 11:20 PM
Nothing to offer except welcome to the greatest forum.

blown black caddy
06-03-06, 11:52 PM
I've leased mine. It's the first car I've tried doing a lease. In the past I've always bought and then done a few mods to them and then lose more money trying to sell it later. I usally change every 3-4 years. :bigroll: If you plan on keeping the car longer than that then maybe a purchase is better for you? I would go to a dealer you trust and ask them to give you all the options? When I leased my V they had a good rebate offer that I applied back into the agreement. Your mileage may vary!

Closer_2001
06-04-06, 10:46 AM
Hello all new to the board here. Strange question but anybody have an 06 through gmac lease, if so what are the terms, wondering if i should go new with a lease or 05 to buy. Thanks in advance.

go to www.gmbuypower.com

Drop down link top right - "Shopping Tools"

Click " GMAC Financing"

You can run all lease and Smart Buy Scenarios

crowan
06-04-06, 04:30 PM
One thing to consider is that the V is a terrific platform for mods. For example, the addition of basic mods such as a performance exhaust greatly improves the seat-of-the-pants feel of the car, as does an aftermarket shifter, intake, custom tune, etc. Modding a leased car can be a pain when it comes time to turn it in and you have to put every thing back to stock.

There are so many deals to had on Vs, you might want to just do some careful shopping and buy one.

Welcome to the Forum.

CR

anim8orCTSV
06-04-06, 05:02 PM
I am leasing a new 06 and I have to say that it is the way to go. Be careful which dealer you use. I nearly got SERIOULY ripped off (+300/month more than what I am paying now). I ended up going through costco and I got a great price.

I calculated that by leasing I am saving money. The big thing about leasing, that scares people away, is the lump sum payment at the end. Since this is for a business and a write off it all makes sense for me.

If the lump sum does not scare you when the lease is up (and you plan on keeping the car - important) then I say lease.

You end up financing like 25k and you get a better percentage rate (gm is being pretty good right now on financing rates for leases).

If you plan on turning it in at the end of the lease then I'd say stay away.

-Anim8orCTSV

erp2863
06-04-06, 05:14 PM
If you plan on turning it in at the end of the lease then I'd say stay away.

-Anim8orCTSV

That makes no sense. Being able to walk away from the car at lease end it exactly why you should lease. If you're always in a new car every 2-4 years, leasing is the way to go. I could care less right now that the V has taken a nose dive in value and will be worth much less than the residual. Not my problem. Tell that to someone that financed for 5 or 6 years and goes to trade it in halfway through the term.

What you're doing is pushing a bulk of the principle to the backend of the deal and saving a small amount of interest in the first few years. Hope you like paying a premium for a 2-4 year old car when you make your balloon payment.

Eric

Luna.
06-04-06, 06:31 PM
The bottom line is that a lease CAN be better than purchasing a car outright, but, very often, it is NOT less expensive. The primary reason is that at the end of the financing (when purchasing the car outright), you now own an asset. When that is subtracted from the payments made, in comparison to a lease, you are generally "ahead."

Leases are often much more complicated than purchasing. "Excessive wear" is a very gray area (and you think that getting a dealer to perform warranty services is tough...), wait until they get ahold of this, especially with a CTS-V. Also, leases often carry a mileage overrun charge that can be very expensive if not monitored/considered at inception.

Leases CAN be better, but they require careful consideration of many factors and are generally more complicated.

Primary benefits of a lease probably relate to not paying taxes at inception and the ability to "walk" away at the end of the lease (which is also a drawback, as you now have to get another form of transportation).

Cash out of pocket can be less than purchasing, but only if someone who "purchases" a car does so nearly as often as one would if leasing and then takes a bath when re-selling his car. Otherwise, the "purchaser" will generally come out ahead.


That makes no sense. Being able to walk away from the car at lease end it exactly why you should lease.

Well, not if you don't have another form of transportation. That is exactly one of the risks/costs of leasing.


If you're always in a new car every 2-4 years, leasing is the way to go. I could care less right now that the V has taken a nose dive in value and will be worth much less than the residual. Not my problem. Tell that to someone that financed for 5 or 6 years and goes to trade it in halfway through the term.

Firstly, this isn't apples to apples, based on the terms of each. Further, what you are arguing is that not owning an asset, during periods of declining values, is what you want to do (this assumes you are renting/leasing) and is, of course, the correct answer. On the flip side, if the value of a car doesn't drop as fast as expected, the "purchaser" will generally end up much more ahead than otherwise.

The cheapest solution (barring an unusual situation where a car requires an unusual amount of money to keep running) is to purchase the car and keep it for nearly as long as possible, say like 8-10 years. You will end up drastically ahead doing it that way.

When people talk about a car as an investment, I literally crack up. You don't invest in something that is guaranteed to lose value (well, unless you are an idiot). It's a cost, nothing more. Minimizing costs is clearly something that one should strive for, but I don't believe many view it that way.

anim8orCTSV
06-04-06, 08:49 PM
That makes no sense. Being able to walk away from the car at lease end it exactly why you should lease.

It does when you go over your mileage, which I will do since this car is for my Business.


What you're doing is pushing a bulk of the principle to the backend of the deal and saving a small amount of interest in the first few years. Hope you like paying a premium for a 2-4 year old car when you make your balloon payment.

Look, if I added up all the payments I would make on a purchase and compare them to all the payments I make leasing then buying it out in the end. Leasing saves me money.

Either way I am paying for the car. By keeping the balloon payment at the end I pay less interest since I am only financing (about) half the price of the car.

I'd say get a quote both ways, add them both up then do whichever one costs you less money.

-Anim8orCTSV

Luna.
06-04-06, 09:13 PM
It does when you go over your mileage, which I will do since this car is for my Business.

Not sure what this means. Is this to suggest that if you purchased the car via the business that you wouldn't get expense it through the company?


Look, if I added up all the payments I would make on a purchase and compare them to all the payments I make leasing then buying it out in the end. Leasing saves me money.


I think you are over-looking some things that you otherwise might want to consider (i.e you own the car at the end of the financing).


Either way I am paying for the car. By keeping the balloon payment at the end I pay less interest since I am only financing (about) half the price of the car.


There is a "lease factor" charged when leasing & this is often HIGHER than the related interest rate when purchasing outright. Your comment here ignores the lease factor costs. If you were going to purchase the car outright, you'd probably be much better off financing it at minute one & not touching a lease to begin with.

Leasing is tricky and a lot of things need to be considered.

guyspat
06-04-06, 09:48 PM
I lease my '06 and used sites such as edmunds and gmbuypower to make my time at the dealer as painless as possible. Edmunds gave me the number that I should be paying and then I plugged that into the payment calculator on the gmbuypower site. I then played around with the terms and then took the numbers to the dealer. The transaction completed very painlessly and quickly.

My two cents is that if you do your research and walk in to a decent dealer with the paperwork in hand there is nothing really left to negotiate. If they are not close on the numbers then walk away and use gmbuypower to find another dealer with the car you want.

As to modding a leased car there are some very helpful people on this site who I am sure will give you some good suggestions.

erp2863
06-05-06, 12:32 AM
As I originally qualified my statement, if you are in a new car every few years, leasing is a better way to go. Especially if you don't have enough money to finance with a 2-3 year loan. If you plan on keeping the car for 5+ years, financing is the way to go.

erp2863
06-05-06, 12:36 AM
Well, not if you don't have another form of transportation. That is exactly one of the risks/costs of leasing.




Ya, it's called walking (with your God given form of transportation) across the street to the BMW dealer and leasing the new '07 335i coupe (your next form of transportation).

starfox86
06-05-06, 01:10 AM
I leased an 06 because I didnt have enough credit for a loan to buy an 05 that was there. I am doing the buyout at the end for sure.

do the lease to buy:thumbsup:

anim8orCTSV
06-05-06, 02:18 AM
Not sure what this means. Is this to suggest that if you purchased the car via the business that you wouldn't get expense it through the company?

It is my company and it is easier to write off the lease. Although I have heard that I could write off a purchase the same way. AS for the mileage I am definitely going to go over my allotted
miles.



I think you are over-looking some things that you otherwise might want to consider (i.e. you own the car at the end of the financing).

I own the car at the end of the lease as well, as soon as I pay off the balance (which I did not have to pay interest on).


There is a "lease factor" charged when leasing & this is often HIGHER than the related interest rate...
Like I stated earlier when I added all the costs of leasing vs. buying, leasing was cheaper. The only thing to consider (in my situation) was to have the buyout ready at the end. In cash. If I was to finance the balance at the end I would completely negate any savings I made by leasing. So I have to plan ahead.


Leasing is tricky and a lot of things need to be considered.

AGREED!! Anyone reading this post and trying to decide whether or not to lease or buy should REALLY do their homework.

-Anim8orCTSV

Kadonny
06-05-06, 10:21 AM
I leased my 06. There is no doubt if you are writing it off for business, leasing is the way to go. Most of your monthly payments are 100% deductible in a lease, but if you buy it the IRS caps what you can write of each year and it is usually significantly less in cars costing over 40k.

The biggest issue with leasing IMO is the mileage. You definately get penalized for putting on too many miles.

Luna.
06-05-06, 01:48 PM
It is my company and it is easier to write off the lease. Although I have heard that I could write off a purchase the same way. AS for the mileage I am definitely going to go over my allotted miles.

You definitely can write off a purchased car in a similar fashion. Some tax accountants may argue that you might have to split up how much is used for business vs. personal, but that's a very gray area. :)

And I'm not sure I understand what point you are making with going over alloted miles. Wouldn't that be a "bad" thing? That, in my mind, is exactly one of the risks associated with leasing that makes them to tricky and, as a result, often frustrating.



I own the car at the end of the lease as well, as soon as I pay off the balance (which I did not have to pay interest on).

I can assure you, my good man, that you are paying a "cost" above and beyond just the right to use the car (one might call this "deprecation" or a "usage" cost). :) Call it whatever you want, interest, lease factor, green eggs and ham, it's still a cost/expense. While it technically might not be "interest," it's still a cost that would be avoided if you were purchasing the car. In other words, one way or another, they get you. In the case of a lease factor, this is often higher then the corresponding interest rate.


Like I stated earlier when I added all the costs of leasing vs. buying, leasing was cheaper. The only thing to consider (in my situation) was to have the buyout ready at the end. In cash. If I was to finance the balance at the end I would completely negate any savings I made by leasing. So I have to plan ahead.

I think they quoted you a bunk rate for financing it to entice you to lease it!! :)

CIWS
06-05-06, 02:27 PM
Thank the maker I didn't lease this car. I'm simply putting too many miles on it right now between work and going to the Patriot Guard stuff. It will be 6 months old in one week and I have 9985 miles on it already. In fact I went last week and had the warranty bumped out to 100K.

HushH
06-05-06, 04:42 PM
If you're considering leasing I strongly recommend you go to leaseguide.com and read up on it as much as possible. Also, make sure you find out the current base money factor and depreciation values for the car before you go in to negotiate. Once you know these you can use the lease calculator on leaseguide.com to calculate your payments based on your negotiations of the vehicle's selling price (always negotiate on the selling price, not the monthly payment).

The most recent money factors and residuals I've seen on the CTS-V are (as of 5/31):

24 mo/15k mi – Residual Value 63% of MSRP – .00165 Base Money Factor Rate
36 mo/15k mi – Residual Value 53% of MSRP – .00165 Base Money Factor Rate
48 mo/15k mi – Residual Value 45% of MSRP – .00165 Base Money Factor Rate

24 mo/12k mi – Residual Value 65% of MSRP – .00165 Base Money Factor Rate
36 mo/12k mi – Residual Value 56% of MSRP – .00165 Base Money Factor Rate
48 mo/12k mi – Residual Value 48% of MSRP – .00165 Base Money Factor Rate


That money factor equates to about 3.95% which compares well with the buy rate depending on the term. Bottom line is do plenty of research before making a decision.