Despite good economy, many still in trouble with car loans.
02-25-19, 07:23 PM
#181
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Thread Starter
So, she works in the USA for a Canadian company. The Canadian company sent her there for three years and pays her rent, living and car expenses. Now, the US side of her company has decided to hire her on as opposed to her returning to Canada as her contract has ended after 3 years. All those perks go away once someone gets hired on in the US.
. If they want her bad enough, they might just continue (or re-negotiate) some of those perks.If not, when the lease is officially up, it might (?) just be time to go car-shopping again....this time for a purchase. The way you keep up with the new-vehicle market, you should have little or no trouble giving her advice, or even shopping with her......just like some of us here on Car Chat do with the people we shop with.
02-25-19, 07:26 PM
#182
Lexus Fanatic
Interesting question. Maybe she can negotiate something with hew new employer....sounds like she impressed somebody high enough up the ladder to take her on (and congratulations to her) . If they want her bad enough, they might just continue (or re-negotiate) some of those perks.
If not, when the lease is officially up, it might (?) just be time to go car-shopping again....this time for a purchase. The way you keep up with the new-vehicle market, you should have little or no trouble giving her advice, or even shopping with her......just like some of us here on Car Chat do with the people we shop with.
. If they want her bad enough, they might just continue (or re-negotiate) some of those perks.If not, when the lease is officially up, it might (?) just be time to go car-shopping again....this time for a purchase. The way you keep up with the new-vehicle market, you should have little or no trouble giving her advice, or even shopping with her......just like some of us here on Car Chat do with the people we shop with.
02-25-19, 07:40 PM
#183
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02-25-19, 07:42 PM
#184
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LOL, you keep suggesting I'm saying the opposite of what I'm saying. I keep saying I'm personally not a proponent of leasing. I'm merely discussing some reasons why people lease. Since you asked a hypothetical about when you should stop leasing what other answer would there be other than when your income stops? Anything else is arbitrary.
02-26-19, 05:19 AM
#185
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Interesting question. Maybe she can negotiate something with hew new employer....sounds like she impressed somebody high enough up the ladder to take her on (and congratulations to her) . If they want her bad enough, they might just continue (or re-negotiate) some of those perks.
If not, when the lease is officially up, it might (?) just be time to go car-shopping again....this time for a purchase. The way you keep up with the new-vehicle market, you should have little or no trouble giving her advice, or even shopping with her......just like some of us here on Car Chat do with the people we shop with.
. If they want her bad enough, they might just continue (or re-negotiate) some of those perks.If not, when the lease is officially up, it might (?) just be time to go car-shopping again....this time for a purchase. The way you keep up with the new-vehicle market, you should have little or no trouble giving her advice, or even shopping with her......just like some of us here on Car Chat do with the people we shop with.
Back to the car loans, again it's like losing weight. Do you hire a trainer who is nice to you and lets you eat donuts or hash browns before your workout, or do you hire someone to get the results? I would say if you want the results you want to listen to Suze or DR. They are not really nice necessarily, they are harsh, but you will get the results.
02-26-19, 05:22 AM
#186
Respectfully, that's sometimes true but it's not universally true.
Perhaps the more accurate way to put it is that if you don't do the homework before you buy and you don't do the legwork as you buy, then it's likely you're going to pay more than you could. That's true no matter whether you are paying in full, financing or leasing.
Some leases, for example, are based on subvented residuals where the manufacturer consciously sets the lease residual at a number that's higher than the actual predicted value at term. Additionally, money factors can be subsidized too. And finally, your actual purchase price should be the same/in the same ballpark regardless of how you choose to finance. My own view is you should always, always negotiate the purchase price and make no mention at all of how you plan to finance until the sale price is agreed. And of course you should never entertain any discussion at all around payment expectations if you are planning on financing or leasing,
There's also the tax aspects to consider. If we're discussing leasing it's more likely than not that we're talking new cars. It varies by state, but in most cases you're on the hook for sales tax on the purchase price (plus rebates in some cases). With a lease, in most states the sales tax is calculated on the payment. Some front load, but most do not.
I'd simply say that there are good deals and bad deals, that good or bad deals are not specific to one financing model, and that a vigilant, prepared customer is more likely to pay less in all cases.
Perhaps the more accurate way to put it is that if you don't do the homework before you buy and you don't do the legwork as you buy, then it's likely you're going to pay more than you could. That's true no matter whether you are paying in full, financing or leasing.
Some leases, for example, are based on subvented residuals where the manufacturer consciously sets the lease residual at a number that's higher than the actual predicted value at term. Additionally, money factors can be subsidized too. And finally, your actual purchase price should be the same/in the same ballpark regardless of how you choose to finance. My own view is you should always, always negotiate the purchase price and make no mention at all of how you plan to finance until the sale price is agreed. And of course you should never entertain any discussion at all around payment expectations if you are planning on financing or leasing,
There's also the tax aspects to consider. If we're discussing leasing it's more likely than not that we're talking new cars. It varies by state, but in most cases you're on the hook for sales tax on the purchase price (plus rebates in some cases). With a lease, in most states the sales tax is calculated on the payment. Some front load, but most do not.
I'd simply say that there are good deals and bad deals, that good or bad deals are not specific to one financing model, and that a vigilant, prepared customer is more likely to pay less in all cases.
02-26-19, 05:43 AM
#187
True, but life isn't always about finding the cheapest way to do things. I don't recommend leasing every 2-3 years for the rest of your life but for certain people and under certain circumstances, leasing can make sense. Leasing is somewhere around 40+% of "sales" for a reason.
Like every comfort and convenience in life, it costs money. That means always having a warranty, never needing a repair out of pocket (except for at fault, non-warranty repair), the luxury of the latest features, the latest safety, latest style - and always new condition, piece of mind reliability, and while there's constant payments, the payments are significantly lower than purchase payments.
Like every comfort and convenience in life, it costs money. That means always having a warranty, never needing a repair out of pocket (except for at fault, non-warranty repair), the luxury of the latest features, the latest safety, latest style - and always new condition, piece of mind reliability, and while there's constant payments, the payments are significantly lower than purchase payments.
02-26-19, 06:23 AM
#188
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That would probably make most sense. A while back I asked what would one need to afford a $1000 a month payments for two mainstream cars (Accord/Camry) and pay it off during the warranty period. $1000 per month/per car hits the average transaction rate in the US. Somewhere around $250K house hold income was sort of mentioned.
02-26-19, 07:18 AM
#189
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Of course because an old car costs less to own than a new car but cost isn't the only element in car ownership. Otherwise we'd all be in Corolla's with 200K miles on them.
02-26-19, 07:30 AM
#190
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At any rate, nowadays, other than young professionals, it seems the most unpopular choice is to drive a vehicle until the wheels fall off, which was pretty popular in my grandpa's days.
02-26-19, 07:41 AM
#191
Well obviously there are other reasons people want to lease a car, for example wanting new wheels every 2-3 yrs etc, but speaking strictly from a cost point of view leasing will always be more expensive in the long run. Unfortunately there is a vast majority of the population that don't understand that.
02-26-19, 07:45 AM
#192
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Well obviously there are other reasons people want to lease a car, for example wanting new wheels every 2-3 yrs etc, but speaking strictly from a cost point of view leasing will always be more expensive in the long run. Unfortunately there is a vast majority of the population that don't understand that.
02-26-19, 09:09 AM
#194
Unless you're paying cars off in 2 -3 years which most people don't, they have 60 month loans and buy a new car in 5-7 year anyways so how is that any different than leasing? You're basically financing a car every 5-7 years most of your life. Nobody keeps cars 20 years anymore. By the time you're done paying off your car your warranty is out and you start going into the high mile area and issues arise and the first thought, I need a new car. I actually think these new cars are meant to be disposed of after 6 years. It's a giant scam, especially with the Germans, all their newer models start self destructing after 4 years.
Last edited by Kense; 02-26-19 at 09:16 AM.
02-26-19, 09:17 AM
#195
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Unless you're paying cars off in 2 -3 years which most people don't, they have 60 month loans and buy a new car in 5-7 year anyways so how is that any different than leasing? You're basically financing a car every 5-7 years most of your life. Nobody keeps cars 20 years anymore.