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Leasing an Acura TL

Nov. 20, 2015, 3:45 p.m.
Posts: 14604
Joined: Nov. 20, 2002

Strongly leaning towards leasing something as cheap as possible for 4 years and giving it back at the end. .

Majin?

Nov. 20, 2015, 4:12 p.m.
Posts: 33437
Joined: Nov. 19, 2002

I'm eyeing up a full size to replace my relatively young Taco and I can't seem to see past a Dodge with an Ecodiesel.

A friend bought the new Dodge. Riders pretty good, and is fairly nice inside. But the diesel option is quite a premium.

It is easy to dodge our responsibilities, but we cannot dodge the consequences of dodging our responsibilities.
- Josiah Stamp

Every time I see an adult on a bicycle, I no longer despair for the future of the human race.
- H.G. Wells

Nov. 20, 2015, 6:57 p.m.
Posts: 142
Joined: Oct. 23, 2003

As for financing for new, we started with the idea of buying used (~2 or 3 years with less than 100K), but the price of used and the higher rate of financing, it was cheaper to buy new with a lower rate from the manufacturer. Was also able to use one of the recycle programs [HTML_REMOVED] employee pricing programs.

How can a new truck be cheaper to buy than a used 2 year old one?

Ha Ha! Made you look.

Nov. 20, 2015, 7:34 p.m.
Posts: 13965
Joined: Feb. 19, 2003

How can a new truck be cheaper to buy than a used 2 year old one?

Let's say you have 20K saved up for a new car. If you buy a used 20k car, that's done.

If you can get 0% financing, then you can look at what that 20K could be earning. Let's say you have a mortgage at 3%, that 20K would reduce your interest expense on the mortgage by 600/year (math isn't quite right, am using simple math, not compound). So now a new 26K car is the same as a used 20K car (600/yr * 10 years).

Numbers change as you change rates of return on both sides of that equation.

Nov. 20, 2015, 7:42 p.m.
Posts: 494
Joined: Dec. 29, 2006

Let's say you have 20K saved up for a new car. If you buy a used 20k car, that's done.

you dont buy a used car for 20k, you buy one for 2k then spend 18k on it over 10 years, and then you sell it for 20k.

Nov. 20, 2015, 7:51 p.m.
Posts: 16357
Joined: Nov. 20, 2002

If you can manage to scrape together savings of $50k, and 0% auto loans are available then …

1) Pay $10k down payment.

2) Put $40k into solid dividend-bearing investments. Diversify - 4 investments of $10k each. You can easily hit a 6% return on these investments.

3) $40k at 6% is $2400 in dividends per year = $200 per month. You can finance for 60 months at 0% so that's $2400 x 5 = $12,000. Add to the $10k down and you'll be able to get something that costs $22k.

4) At the end of 60 months you have a car (depreciated over 5 years) and still have $40k in the investment account (assuming no appreciation of the stock's valuation) earning $200 per month.

5) profit.

When one person suffers from a delusion, it is called insanity.

When many people suffer from a delusion, it is called religion.

Nov. 21, 2015, 11:44 p.m.
Posts: 10077
Joined: Nov. 19, 2002

They also don't offer employee pricing on used cars.
They don't offer vehicle recycling incentives on used cars.
The finance rate on a used car is MUCH higher than a new car.

When we were looking there seemed to be a shortage of a couple year old vehicles with less than 100K of the model we were looking for, so prices were higher.

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