Need New DD...~15k

[JET]

I agree with Kracka, if you are going to end up buying the car anyway, why not just buy it from the beginning? Get locked in to 0% interest and not have to deal with any possible hidden surprises later on.

[Murlo26]

Keep payments lower and I am not so sure that they will let me finance 24k or whatever it is.

The big problem is that I have two houses, one I technically don't have anything to do with but hurts my debt to income ratio. I am cosigned on a condo with my dad as he needed me to get a loan back in 08 when things went to shit for his business but that is all paid for and I am just on the loan which hurts me.

So trying to finance 24k could be an issue which is why I didn't think that is a good idea.

I dunno, maybe I should just buy a shitbox that is slightly better than my shitbox.

[Kracka]

Step 1: Have your dad refinance his condo to get your name off it.

[Murlo26]

Step 1: Have your dad refinance his condo to get your name off it.

Just refinanced it like a month ago...can't get me off it. Used the fannie/freddie upside down shit to do it from the govt.

He owns two other houses too and a business, so they wouldn't let him take me off. I don't even want to know all the nonsense he has to deal with on finances lol. Mo money mo problems for him i guess.

But that is the reason I didn't look at getting a brand new car to begin with and the lease seemed like a way to just get a new car.

So for real though, is leasing it really that bad when you only have 13k to pay off at the end? What if I ended up saving for the buyout amount and paid cash, then that is only 3 years of very low interest on the car. I see several people saying the lease to own is dumb but I just want to know which part makes it so icky. Edumacate me :)

This is also the reason I am locked in a dumb ass mortgate for my house and can't refinance to something good. We actually bought my house in cash and I paid my dad as I had the other loan at that time.

Lot of crazy financing mumbojumbo.

[Trogdor]

At the risk of affecting the chances Dave buys a Kizashi, leasing to own isn't a terrible idea like people think it is as long as you are well informed about how to do it.

You want your lease:residual to be as close to 50:50 as you can get it. This way your payments don't go up $100 a month when you buy the car. You also need to take in to account that interest rates will be higher. Not only will they be higher because lease rates are subsidized. It will also be higher because it's now a used car.

Are you paying TONS more money than you would if you were to buy it? No. Kare11 actually ran a story about this recently showing that you save money in most cases by leasing for 3 and financing for 3.

That said, and this is where I go back to trying to sell Dave a car, 0% for 72 is lower than any lease rate and any interest rate you can get on a 3 year old used car!

[Kracka]

0% for 72? That's almost unheard of. What's the warranty? 7/100?

[Murlo26]

Ok, now I get what you are saying Bobby with the whole 50/50 thing lol, I was a little lost reading it at 1am last night enjoying a sorrow drink after the vikes game :)

So I think I am looking at this correctly then, or at least you are one person saying its not "stupid" to do it that way.

But i understand the interest rates will go up for several reasons which is why I said I'd plan to put down some of my own money to offset as much of that as I could at the time. But aside from that it doesn't seem too dumb. But I guess I wanted to hear what the people saying leasing is dumb think and why. Just because extra interest? Well that is what noobs like me get for not putting money down or financing an entire car lol. I am ok with paying someone some extra money to buy me a car essentially. But seriously just looking for honest opinions. I am pretty good at paying off structured debt, aka something with payments I dont' have problems with, I account for them every month and they get paid off in a timely manner. Then I pay off big chunks with tax return/bonus at work.

I am by no means a financial expert and I love to spend money espeically other peoples, lol, which is why I am asking advice. Hell I had to talk myself out of signing papers last night at Kia as I just want a car and I felt like that one fit the bill. But I wanted to make an informed decision. I am an engineer so I am good at math, so feel free to math it up.

I guess bottom line is it comes down to how much I want to pay someone else extra for something to have it right now instead of waiting type of deal.

[Murlo26]

0% for 72? That's almost unheard of. What's the warranty? 7/100?

Yes, 7/100 on that car. And they had a bumper to bumper for 3/36k or something, well minus radio i think haha.

[Trogdor]

0% for 72? That's almost unheard of. What's the warranty? 7/100?

Yep! 0% for 72 months on an AWD sedan that comes with a 100,000 miles warranty!

[Trogdor]

Figure this. 300/m for 3 years then 400+interest for 3 years. If you split the difference it's $350 a month for 72 months. But that doesn't include interest on the second 1/2 of that.

So the Suzuki is about $335/m with the 0%. Averaging the 3 years of lease vs 3 years of loan you're probably somewhere like $360-370 a month for the total of 72 months, on a front wheel drive car.