"NOYB" wrote in message
ink.net...

"Don White" wrote in message
news
NOYB wrote:
"P. Fritz" wrote in message
...

"NOYB" wrote in message
ink.net...

"Shortwave Sportfishing" wrote in message
...
On Tue, 31 Jan 2006 01:27:34 GMT, "NOYB" wrote:


"Wayne.B" wrote in message
...
On Tue, 31 Jan 2006 00:14:20 GMT, "NOYB" wrote:

But I can assure you that in their latest
entries to the market, the American auto maufacturer's quality and
engineering is on par with the best of them again.

Let's talk again after 100,000 miles.

I'll be out of it before 40,000 miles. ;-)

see - thats what i don't understand. you dont gain anything by
leasing a vehicle for a stated length of time.



I gain a new car every 3-3 1/2 years. If I bought the car, but
financed it,
I'd barely be even in 3 years. If I paid cash, and traded it, I'd
lose
$25k
in depreciation in that time period.


we ordinarily keep our cars for at least 100k if not more than
that -
i think the grand marquis my wife had before the town car had 140k
on
it when we traded it in.

You're smarter than me. But I've got a soft spot for new cars. Your
way is
of course the smartest way to own a car.

Not necessarily......if you drive exactly the miles that the lease
alllows you every year, it is better to lease, at the end of the lease,
if market value is higher than the buy option, you simply buy it and
sell it, if it is lower, you let the auto company take the loss.


I search for leases with the highest residual value. The car I just
bought had a 59% residual value after 39 months. That's about 20
percentage points too high for what is realistic on that car. But it's
GMAC taking the hit...not me.



I was over to a local Toyota dealer recently and we were talking about
this. The saleslady said they aim for actual market value at the end of
the lease. Their higher payment schedule must reflect a more accurate
cost of the value you receive. Better I guess if you plan on buying the
vehicle at the end of the lease period.
Not sure if leasing is a good option for someone like me who drives 10K -
12K km per year.

Are you kidding!? You're the ideal candidate. Get a low mileage (10,000
mile per year) lease, and you'll save at least $150/month over financing
the same vehicle.

Consider this:
My car has an MSRP of just under $42k.
I paid $1800 to the dealer when I picked it up...plus another $422 for the
first month payment.

That's just under $18,500 in total out of pocket and monthly payments.

If I financed the same car for 66 months, rolled the sales tax into the
payment, and paid out the same $1800 when I picked up the car, my payment
would have been nearly $700/month. $700/mo * 39 months=$27,300. Add the
$1800, and you're at nearly $29k to drive that car for 39 months.


On a 66 month finance deal, with very little money down, you end up owing
after 3 years about the same amount as the car is worth. In other words,
you have zero equity and still owe $20k on a 3 year old car. And you've
paid out almost $10k more in cash over that time period!

The only way purchasing the car makes sense is if you keep it a year or
two past the last payment (ie--7 or 8 years). And hope that nothing
breaks when it's out of warranty.

OR.....like me, drive 20-30k miles a year.