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      12-10-2012, 11:44 AM   #20
Freon
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Drives: 2009 135i
Join Date: Nov 2007
Location: Indianapolis

Posts: 856
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Quote:
Originally Posted by RWD4Life View Post
*leasing is awesome*
This is why I tell people to never lease. People don't understand cap cost, miss that they still need to negotiate the "sales" price of the car, what a money factor is, tend to think its ok to have extra $$$ fees since it is a lease, always have really big bank/lease aquisition fees, etc. They think leasing is cheaper and also as a magic slap-chop-like bonus gets you a new car every 3 years, when nothing could be further from the truth as far as your long-term financial health.

I used to work for a software company that dealt in this arena and supported some pieces that helped pencil both leases and traditional finance deals. Specifically I worked directly with finance managers on the product to make sure it calculated correctly. I was constantly amazed on how they'd shoe in bad rates, BS fee on top of BS fee, automark sales price to MSRP for cars that normally never did, etc. But consumers always think "monthly price". There were a few that seemed to be pretty honest and only defaulted a $500 lease aq. fee and defaulted to a MF that was reasonable, but a vast majority always defaulted new deals to horrid numbers.

I strongly suggest traditional finance for everyone. Leasing, unless you are an expert and come armed with your own laptop and a strong understanding of how it all fits together you are making yourself extremely vunerable.

So many people are so uninformed on this I think dealers just don't feel like bothering with people who know what they're talking about. Perhaps that's where RWD4Life's disconnect comes from.

Solution? Don't lease! If you buy, pay it off, sell, then buy again, you will eventually be driving a nicer car with a lesser payment than if you had been leasing the entire time. While a car is not really a great equity investment, there still is a huge chunk of equity left in a car after 3-5 years, enough to make a huge dent and downpayment into your next car. I think leasing is a trap, and a vast majority of consumers get hosed on them and don't even realize it due to the complexity.
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