Quote:
Originally Posted by Cyberdemon
Per the previous comment, see why this is wrong and incorrect in thinking.
1- Residuals and programs vary month to month. I got a great deal in December and all those programs went poof on Jan 4th.
2 - Putting cash down on a lease is a bad idea for the same reason gap coverage is important. If you put $10K down on a car, drive it off the lot and into a ditch - the insurance will almost certainly ONLY satisfy the remaining payoff on the loan, and not repay money you paid in advanced on taxes or capital cost reductions.
And that's why lease swaps can be attractive. Most BMW loaner cars can be leased for 16-18% discount before those incentives. For those who don't care about a very particular spec this is a tremendous way to get a car that is fully covered under warranty for an extremely low monthly payment. This is what I recommend to many people who leases will work for.
Nobody has to convince you to lease, but once you visit a site like Leasehackr you clearly understand there are ridiculously good deals to be had out there on new cars, and if you follow the process and buy when a deal is good it is very easy to get a car for extremely little.
Volvo also has tremendously good deals over the past few months. Here's a near $70k Volvo for $495/mo by stacking $10k+ in incentives. Some of these deals require a substantial amount of legwork to achieve, but if money is worth some to you then it's hard to argue driving the same car that would cost you ~$1200+/mo to finance.
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Not following how insurance only pays off the balance of the loan. Sure doesn't work this way with a purchase. After a serious accident they don't ask you about how much you owe and instead pay what the value of the car at the time of the accident. So if I decide to pay up front for a 3 year lease and total the car the next day insurance pays nothing or only what the residual is at the end of the lease?
As far as the "great deals", maybe great compared to buying new and replacing every 3 years but I don't see it compared to other ways to get a car. I bought my car at a huge discount from new because it was a year old and had 11k miles on it. Now 6 years later I would be not on the same car but instead getting my 3rd leased car. I would have zero equity, need to come up with cash for the 3rd car and be looking at car payments for the rest of my life. Said over and over if you want a new car every 3 years it's a good way to do it but don't make it out to be economical way to have a car.
Local dealer occasionally sends me offers that if I trade my car in on a new one very close to what i have now that I only need to come up with $35k cash/finance to get it. Makes me laugh.