Genesis Coupe Buying/Leasing Tips (Read before you sit with your dealer!)

[tarpumn]

A very wise CEO I worked for about 10 years ago told me once "Never own a depreciating asset". I never understood nor took his advice. Now about 4 cars later, I look back and see that on average the depreciation alone has cost almost $500 a month.
Argue all you want but that is why it's wise to lease.
Only in the case of drive it till it drops is it worth owening, and then, depending on the original cost of the car, it my be worth buying.
My $.02 worth.

PS
Love my 3.8 Priem. plus at $435 a month, 36/15 w/$2500 down

 

[i8acobra]

A very wise CEO I worked for about 10 years ago told me once "Never own a depreciating asset". I never understood nor took his advice. Now about 4 cars later, I look back and see that on average the depreciation alone has cost almost $500 a month.
Argue all you want but that is why it's wise to lease.
Only in the case of drive it till it drops is it worth owening, and then, depending on the original cost of the car, it my be worth buying.
My $.02 worth.

What if you drive 25K a year? What if you don't like driving a bone-stock car? What if you live somewhere where people act as if the get points for leaving door dings on your car? I never have nor will I ever lease. If I want to rent a car, I go see Hertz, not a dealer.

 

[Goose]

The notion of "never own a depreciating asset" applied to a private auto was started by somebody in the car business. In other words, leasing is a way to separate folks from more of their money. The fact that most people usually want more than they can afford helps convince people that leasing makes sense. It doesn't.

Let's face it: the only way that owning a car "makes financial sense" (it still costs money) is when you buy used and then drive the wheels off of it. Only when the old car costs more to maintain/run do you consider spending money on another used car. Not a very exciting scenario, right?

There's nothing wrong with leasing a car. It's a nice way to "own" a nice new car ever few years. The reality, though, is that most people don't invest the money they would have tied up into the car; even if they did, the rate of return on the investment rarely exceeds the cost of the lease.

 

[monblanc]

Not if you buy it... see my numbers. ^^^

Don't understand all of these people leasing anyways. Unless you can deduct it as a business expense, makes no sense at all to me. Of course the idea of only driving 12K a year also boggles my mind (I do at least double that).

That's exactly why it's better to lease in certain situations. I mean if you know the miles you drive... But even if you exceed it, it's no big deal. Average owned cars depreciate 8-10 cents per mile anyway.

If you plan to change your ("new") car within 4 years, it's better to lease. It's better to buy if you are going to own longer than 4 years.
(Of course the best is to own used cars for longer than 4 years. It's assuming the "new' cars only here.)

For example, I leased BMW 5 series last 3 years. It was a wise decesion for me. The huge recession came. The used car market down. The car depreciated more than usual (because of huge recession) and it could have costed more if I purchased it (and I need to sell it now....).

Also some manufactuerer intentionally offer great leaseing offer(like BMW) to push their high-end cars to people with lower income bracket. I took advantage of it basically. BMW was giving great residual and something like 0.01% interest on their set depreciation(which was set faily small). Assuming that I am not going to own BMW longer than 4 years (maintenance cost can sky-rocket after 4 years for BMW's), BMW was practically giving away money to have people like me....

BMW basically lost money on the leasing deal but they are hoping that someday I might come back abd purchase BMW ( I might after all. I have been impressed with the Bimmer.). See ? this is a win-win situation.