Originally Posted by mooty

if there's tax benefit thru your business, then leasing may have an edge. but that's case by case, it doesn't mean lease is better than or worse than financing or cash. it's individual's legal tax minimization issue.

buying out lease at end of 24 month then sell it. yes, i understand it. and it 's often done. but you cannot predict the future. also u are talking about the disposition strategy to minimize loss .it doesn't show lease is bad or financing is bad per se.

yes and no.
again if you have tax benefits, then different story.
but fundamentally,

financing is usually 5 years
leasing is usually 3 years

calculate the total money out of pocket in 5 yr of finance
calculate the total money out of pocket in 3 year of lease, then pay the residual in cash (PREMISE WAS THAT I HAD THE CASH TO PAY, BUT I CHOSE NOT TO). you will find the total speng in both closes are really really close. generally less than 5000 in 100k cars.

assuming u have comparable leasing and financing rates. if the manufacture is subsidizing leases (like porsche did 10 yrs ago or as bmw continues to do) then you are not comparing leasing vs financing. you are distorting the result with unnatural rates.

valid points. and that favors leasing at least academically, especially considering the cash you kept and invested. BUT the dpn risk (residual value) is calculated by a brain trust of actuaries. the are USUALLY pretty accurate ( they blew the 4.0) and when they are off. they arent off by much. and i would not buy out lease, sell privately and pocket $5000. too much work. now if i can pocket $20k, sure. but they dont usually make that big a mistake. but your point is very valid.

no nerve, but an interesting discussion however.
but as another poster stated: depn and method of purchase are totally independent.

i am just playing devil's advocate and make you all think a bit more about this topic. as an ex - banker, we create these products to confuse you and take money away from you so we can buy porsches too

Originally Posted by Gef3rd

I was told the buy rate on the GT3 lease was .0020. Therefore the dealership makes additional money on anything over this money factor. I always try and ask two dealerships what their buy rate is and compare notes to see if the story is the same. The dealerships also have a sheet they use (looks like a matrix) from the leasing companies which I will ask to see to double check what their buy rate is

Originally Posted by Nizer

Am I the only one that notices Mooty's grammar improves dramatically when he talks about money.....?

Originally Posted by Zucc

I think that most people that buy a $150,000 car can pay cash for it if they want to. People who are concerned about payments don't buy $150,000 cars. The question is what is the best way to pay for it, cash, finance, or lease. For me it is just math. When I can borrow money at 2% or less I finance. If lease rates were 2% or less, then I would lease, assuming the acquisition and disposition fee are in line. When rates are higher, I pay cash.

For those that are worried that the car won't feel the same, don't tell it!

Originally Posted by NateOZ

I suffer from car ADD, so I pay cash. Makes changing cars much more convenient.