Lease vs Finance

[EdP]

Or keep a financed car for 5 years. No payments for 2 years. How much is that?

I was on a roll turning them over every three years. Circumstances change and the miles wend down so I figured four years. They the auto market went crazy so at 4.5 and will hold for probably another year. I was thinking a 2023 but now may be 2024. The value of a used car is better return than recent stock market.

 

[Trixie86]

I was on a roll turning them over every three years. Circumstances change and the miles wend down so I figured four years. They the auto market went crazy so at 4.5 and will hold for probably another year. I was thinking a 2023 but now may be 2024. The value of a used car is better return than recent stock market.

It certainly is

 

[Mcc]

It certainly is

But only if you sell now.

 

[EdP]

But only if you sell now.

Who would have thought you could make a fortune buying a bunch of 3 to 5 year old cars about 18 months ago?

 

[helloGen]

Why is the 48-month lease rate of the GV60 (5.4%) higher than other Genesis models (3.4%)?

 

[MrL]

Now that the lease and finance rates have been announced (for Canada anyway), it would be interesting to read your perspectives on the leasing versus financing options.

• How do you, when you get a new car, decide between leasing or financing?
• What thought process, considerations, calculations do you typically do?
• For leasing, what do you make of the residual value, i.e. is this something you worry about being too high or too low and/or try to argue? How do you pick a leasing term (36, 48, 60 months)?
• How do you decide on the amount of down deposit you will make...assuming it's not 100%?

Hello
Just confirmed my order today after a test Drive
fora

Now that the lease and finance rates have been announced (for Canada anyway), it would be interesting to read your perspectives on the leasing versus financing options.

• How do you, when you get a new car, decide between leasing or financing?
• What thought process, considerations, calculations do you typically do?
• For leasing, what do you make of the residual value, i.e. is this something you worry about being too high or too low and/or try to argue? How do you pick a leasing term (36, 48, 60 months)?
• How do you decide on the amount of down deposit you will make...assuming it's not 100%?

GV60 performance
Residual value annonced 21 357$ for 60 month lease and 5000$ cash down

 

[goldentoque]

Why is the 48-month lease rate of the GV60 (5.4%) higher than other Genesis models (3.4%)?

Because they can?

 

[helloGen]

Because they can?

I get it... Still very disappointing. I wonder if this will change at all in the next year or so...

 

[unlock42]

Keep in mind that if you're a cash customer, it may be worth it to finance if Genesis is offering any incentives. If you can get $500 or $1000 off as a financing incentive, you can still turn around an pay off the loan immediately--but you've saved a little on the purchase price. (Or refi out to a lower rate, if you don't have the cash to pay it all off).

I was just about to reply about the benefits of the incentives offered by just financing anyway etc... on that note, for what it's worth wouldn't it also look good on your credit report to show a fully satisfied loan? Granted there wouldn't be any history really, but for the sake of having another bronze star on the credit report to reflect a paid off loan. Sucks that credit is built by stretching out a debt lol...

 

[Looney100]

I was just about to reply about the benefits of the incentives offered by just financing anyway etc... on that note, for what it's worth wouldn't it also look good on your credit report to show a fully satisfied loan? Granted there wouldn't be any history really, but for the sake of having another bronze star on the credit report to reflect a paid off loan. Sucks that credit is built by stretching out a debt lol...

I doubt anyone shopping in the price range of the GV60 is concerned about establishing credit history. This isn’t the type of vehicle anyone is getting as a first car.

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[unlock42]

I doubt anyone shopping in the price range of the GV60 is concerned about establishing credit history. This isn’t the type of vehicle anyone is getting as a first car.

Yea you're right, but never say never. It was just a side note / an interesting point. I'll be buying cash, but will for sure take advantage of the cash incentives. Why wouldn't you?

Do any of you use a rewards CC for a down payment? (Airline miles, CB etc...)

 

[Mcc]

Yea you're right, but never say never. It was just a side note / an interesting point. I'll be buying cash, but will for sure take advantage of the cash incentives.

I believe the days of cash incentives are long gone. I’ve never seen them even once at Genesis over the last 5 years. Dealers know there is money to be made by leasing and there may be an incentive to do that. Of course you can play that game and lease, get the incentive, and turn right around and buy the car out of the lease. You are a winner!

 

[Trixie86]

I believe the days of cash incentives are long gone. I’ve never seen them even once at Genesis over the last 5 years. Dealers know there is money to be made by leasing and there may be an incentive to do that. Of course you can play that game and lease, get the incentive, and turn right around and buy the car out of the lease. You are a winner!

Although I agree incentives are harder to come by, but my last 2 Genesis' (20/21)both had cash back for loans. Also, 1.9% and 0.0% respectively.

 

[Mcc]

Although I agree incentives are harder to come by, but my last 2 Genesis' (20/21)both had cash back for loans. Also, 1.9% and 0.0% respectively.

Yes I agree. For a lease or loan. My point was that it is very unlikely you are going to get an incentive for an all cash deal.

 

[Trixie86]

Yes I agree. For a lease or loan. My point was that it is very unlikely you are going to get an incentive for an all cash deal.

My deals were not contingent on taking a loan, but I get what you're saying.

 

[connormag]

For myself, I didn't consider leasing. I was willing to invest in a loan instead of overpaying on a rent. I'm already renting a house and another rental seemed too much for me.