Quote: (03-10-2017 03:03 AM)Zelcorpion Wrote:
Lease is a terrible option for a private person. Lease is even a lousy financial option for a mid-size company.
The only company who is doing well with a lease is a large multinational company with their own bank. You can really calculate the net savings there if you don't pick a new car.
By the way - OP - you can get a 5yo Mercedes Benz CLS for that money:
In Germany you could even get an AMD version for that kind of money - and the original buyer spent 60.000-70.000$ on it.
With respect, Zelescorpion I disagree with your statement that leasing is necessarily a terrible option. In fact, I used to be one of those people who would automatically say the same thing whenever folks around me would talk about leasing so I think I have an idea where the statement is coming from but hear me out.
Firstly, there are some absolutely crazy lease deals out there. For instance, this deal for a 2 year Chevy Cruze that had a positive return of $23.80:
https://leasehackr.com/blog/2015/11/25/e...th-0-down. You would be "making money" with this deal. Obviously, insurance would still make it a net negative and you'd have to value the $700 Costco card as 1:1 to cash, but you get the idea that it's still a slamming deal.
That site has plenty of other examples of leases with extremely low payments that stem from very low money factors, high residuals and big discounts off MSRP. e.g. Infiniti Q50's for $180/month, well equipped E-classes for $289/month, all $0 down. These lease deals are much better from a financial perspective than if you bought them outright and although uncommon, they pop up every month, sometimes multiple times a month.
And even if you are paying more for a lease than if you'd purchased the car and sold it after the equivalent timeframe, there are many intrinsic factors that aren't easily quantifiable but could provide oversized value to a lessee. In my case, I know I'm paying 28% of the car's value for the two years I have it. I doubt I'd be able to get the same resale value on the open market, and I'd have no idea what the economy would look like in 2019, or if I'd have to take a big haircut on it if I had to suddenly move.
I'm never going to worry about maintenance issues because they're all covered under warranty unlike in a used car past 5+ years out. In the event of a total loss, gap insurance will pay off the difference between the payout my primary insurance provider doles out and what's left on the lease payments. The freedom and certainty (albeit at a financial cost) of the lease is worth the extra money to me to avoid these headaches.
Circling back to the OP's follow up statements: he wants the car to inject a more dangerous vibe, he's trying to avoid an old car because he was afraid it'd remind people of his age, and he's in a high earner profession. My initial recommendation of a Datsun 240z and the 996 Porsche with the IMS fix were rebuffed so I figured I'd suggest this angle. Seems to me that if you're going to play maintenance Russian Roulette with these 5-10 year old German tanks you'd have a good chance of spending a hefty percentage of that initial $25k on repairs or see the value of the car drop accordingly when you try and offload it. Why not instead look into leveraging that $25k into something that's obviously brand new which checks off one of his boxes? Especially if he can afford it.
This response is already too wordy as it is but it gets into strong feelings I have that Americans are very spoiled when it comes to the affordability of luxury goods. To wit, a business partner recently paid $360k USD for his base Porsche 911 in Singapore. The guy booked a seven figure bonus after his trading desk hit champion numbers and he finally felt that he could treat himself to his dream car. When he found out what I'll be paying for a similarly equipped model he lost his shit and jealously cursed me out for five minutes straight. In SG they gotta scrap their cars or export them after 10 years, so it's an even shittier deal and another reminder to grab on to every advantage I can take while I'm still a resident of the US.
TLDR: Lease deals can sometimes be fantastic financial decisions and even when they're more expensive than buying, they can still be worth it.