Lease vs Cash vs Finance...not that simple anymore is it?
#1
Burning Brakes
Thread Starter
Lease vs Cash vs Finance...not that simple anymore is it?
I wonder how many who thought "I can make more money in the market....let it work for me since financing is so cheap", have regrets.
I don't know about those know it alls, but I know I am not smart enought to make those big returns. Its so easy to look back....now if I only had a crystal ball.
abe
I don't know about those know it alls, but I know I am not smart enought to make those big returns. Its so easy to look back....now if I only had a crystal ball.
abe
#4
Drifting
If you are keeping the car for the long run (7+ years), then buy.
If you want to make the car yours (customize), then buy.
If you want to trade it back in after 3-4 years, for the next model, then lease.
If you cannot afford to buy, then make payments.
If you want to make the car yours (customize), then buy.
If you want to trade it back in after 3-4 years, for the next model, then lease.
If you cannot afford to buy, then make payments.
#7
Even if you don't think you can invest the cash elsewhere, there is a value to having cash on hand vs. in an illiquid and depreciating asset.
Trending Topics
#10
Burning Brakes
Thread Starter
#12
Three Wheelin'
One of the plusses in leasing is it gives you two opportunities to negotiate the price. Once when you get the car, another when you turn it in. There's a reason many car companies are eliminating leases. The residuals, in markets like this anyway, are usually higher than the cars value at the end of the least. Many car compaines will let you buy the car at the actual value rather than the residual so you get two discounts not one.
#13
Three Wheelin'
#15
Lease versus buy
If you have access to various financing options you can finance a car independently (and own it) but emulate the characteristics of a lease except you take the residual risk. For tax purposes, leasing versus owning does not result in a material after-tax difference. It is about the opportunity cost of capital and the residual value risk. I wouldn't be quick to discount leasing even in this environment. If you can pass on residual value risk to the dealer, leasing has advantages, it just carries an imputed interest cost. The benefit of owning is flexibility and the benefit of paying cash is ....well you just don't have to think about payments, but most Porsche owners probably aren't concerned about the payments generally.
I would have thought that Porsche, like other OEMs are having challenges determining appropriate residual values in this market. To the extent calculated residuals go down, lease payments will go up and the opportunity cost equation gets a lot more interesting. Of course some manufacturers will not lease you a car in this environment and have the consumer take the residual risk now. To me it was always the residual value risk that made leasing an option, but I have opted to buy ...up until now.
I would have thought that Porsche, like other OEMs are having challenges determining appropriate residual values in this market. To the extent calculated residuals go down, lease payments will go up and the opportunity cost equation gets a lot more interesting. Of course some manufacturers will not lease you a car in this environment and have the consumer take the residual risk now. To me it was always the residual value risk that made leasing an option, but I have opted to buy ...up until now.