Will be heading the dealership tomorrow to possibly purchase my first car tomorrow (2022 Kia Forte LXS). Current price is $21,500. I am wondering given the $50 difference in monthly payments would it be better to lease or buy in this situation.
Lease: 36 month
$1,500 cash down
$1,500 trade in
$650.00 acquisition fee
$2,000 other fees
$18 sales tax
Lease payment: $277/month
Buy: 72 month 3.25% apr
$2000 cash down
$1500 trade in
$1,400 sales tax
$2000 other fees
Finance payment : $327
Will be relocating from Florida to California in 6 months and they offered to deduct shipping cost to California from lease payments if needed. What should I be thinking in this situation and how should I go about negotiating tomorrow? Thank you so much
How long is the lease and how long is the financing? If you plan on keeping your car for a while (5+ years), finance it. If you like switching cars out every few years, lease. If you’re solely going off monetary considerations, finance because you’ll build equity in the car that you can eventually monetize upon sale or trade-in. Leasing really only makes sense when you’re using the car as a hobbyist type of thing and the payment doesn’t affect your budget or any emergency needs for money.
Buy it… The $50 difference monthly in payment is offset by $35 difference a month in insurance.
My advice is don’t commit to buying it tomorrow unless they give you a good deal. The second they know you are walking away papers signed is the second they won’t budge. Be prepared to walk out without the car tomorrow.
Having said this, watch out for the interest rate, because they will often lower the total price but raise the interest rate to make up the difference.
Final piece of advice – remember that cars are normally depreciating assets, so make sure you are financially in a position where this is the move that makes sense. That’s my advice.
Don’t lease. Read older posts on this sub.
What’s with all the leasing posts lately? You guys hate owning things?
Double posted oops
Cars are depreciating assets, so a lease is always financially better. You can have the intention of purchasing at the conclusion of the lease, but just make sure that you save each month. The best part of a lease is that dealerships place GAAP insurance on your vehicle, so if you total it during the lease you are not upside down in most cases. FYI, this advice was given to me by the VP of Finance of a 300 chain dealership. He leases all 8 vehicles for his family (wish I had his bank acct)
You could probably get a better interest rate than that. Shop around for financing.
Leases are almost always terrible ideas. Fees and nonsense run the bill up high.
Just buy it.
He writes off his kids cars at the dealership he works for and doesn’t own? Smart guy, let me ask how you write off a business expense when you don’t own the business?
Dear IRS, we have an idiot replying. Please audit for all of our benefit. He doesn’t understand that when possible you DO NOT purchase unless you are 100% certain you are keeping long term.
The person asking the question has kept his previous car forever, so it is possible he could purchase. However, the liability of owning a depreciating asset rarely makes sense. I hope you total your car soon, so I can hear your response when the insurance company gives you 70 cents on the dollar and with the rise of car prices, you are screwed for giving people advice that you don’t understand.
Hello very cool site!! Man .. Excellent .. Superb ..
I’ll bookmark your web site and take the feeds also? I am happy to search
out numerous helpful information here in the put up, we need develop
extra techniques in this regard, thank you for sharing.
. . . . . https://homeinsiderguide.com/user/BANK111
online porn video
Express Glass is committed to total care and tailored support,
so costs will vary per project and are personalised based on the project requirements.
free Windows 7 key
buy viagra online
Anyone whho has ever been in a partnership iss aware of that they could
be both exhilarating and tiring. From thee first butterflies of yokur new rmantic relationships toards
the convenience a long-word relationship, connections can be found
in all shapes annd forms.
I constantly spent my half an hour to read this web site’s content everyday along with a cup of coffee.
Whoeveer has been inside a romantc relationship is aware
of that they may be both thrilling and strenuous.
Through the initial butterflies of the new romantic endeavors towards
the comfort off a long-expression relationship, relationships come in all shapes and forms.
Excellent post. I am experiencing some of these issues
Hello there, You’ve done a fantastic job. I’ll certainly digg
it and personally recommend to my friends. I am confident
they will be benefited from this site.