Auto loan argument (Long)

[Detroitmuscle]

bla bla bla, sorry but I won't take hard advice from someone on this who makes a ridiculous amount of $ each year on people leasing cars. I used to work at a dealership so I know that is their major cash cow, why would you encourage others to ever buy used if it keeps your business running when they lease? Again I'm not referring to buying a new car I would probably never do that because taking your chances on something a couple years old is much cheaper than paying for something that drops about 5% in value the second you drive it off the lot not to mention another 5% every year you own it. You think maintainence (tires, brakes, oil) is a lot of $, give me a break. I'm simply stating that leasing cars are not practical in any way to me.

 

[WhiteHawk]

I have had a lease car steadily since about 1997. It is good to have a reliable vehicle, and then the other car is my Camaro or something that isn't quite as reliable. I think they are a great compliment for any gearheads. It is nice to have a car you never have to worry about.

-Geoff

 

[91trunk]

bla bla bla, sorry but I won't take hard advice from someone on this who makes a ridiculous amount of $ each year on people leasing cars. I used to work at a dealership so I know that is their major cash cow, why would you encourage others to ever buy used if it keeps your business running when they lease? Again I'm not referring to buying a new car I would probably never do that because taking your chances on something a couple years old is much cheaper than paying for something that drops about 5% in value the second you drive it off the lot not to mention another 5% every year you own it. You think maintainence (tires, brakes, oil) is a lot of $, give me a break. I'm simply stating that leasing cars are not practical in any way to me.

Really? Do you know how much I make leasing car? Please enlighten me how much I make! I love people that don't know SHIT talk it all the time.

What do you do at the dealership?

5%? I don't know what world you are living in, but a newly purchased car drops more than 5%. Shit drops 6% just from the sales tax smart guy. Notice I said "newly purchased"? Not just NEW. Used cars too.

So the average guy that isn't gonna sit in his drive way to do a brake job doesn't spend a decent amount of cash on a brake job????? Tires? Have you price a new set of tires lately? They aren't cheap.........well if you put cheap shit on they might be.

 

[soap]

So the average guy that isn't gonna sit in his drive way to do a brake job doesn't spend a decent amount of cash on a brake job????? Tires? Have you price a new set of tires lately? They aren't cheap.........well if you put cheap shit on they might be.

That is a terrible argument. Basic maintenance is dirt cheap compared to a monthly car payment. A brake job is $250 tops (for front) and last 50,000+ miles or about 2-3 years. Good tires, I agree, are expensive for a set of 4 but even at $750-1000 the tires will last 60,000 miles or about 3-4 years.

--Joe

 

[91trunk]

That is a terrible argument. Basic maintenance is dirt cheap compared to a monthly car payment. A brake job is $250 tops (for front) and last 50,000+ miles or about 2-3 years. Good tires, I agree, are expensive for a set of 4 but even at $750-1000 the tires will last 60,000 miles or about 3-4 years.

--Joe

So when you buy a used car you don't have a payment???? Damn sign me up! We are talking about leasing compared to buying something used or at least that's what I thought. The OP doesn't have the money to pay cash for a used car.

Lease car=payments, oil changes, fuel and washer fluid and done in 2-3yrs

Used car=payments, oil changes, fuel and washer fluid and not done in 2-3yrs which is wear putting money into maintaining it comes into play.

--Matt

 

[soap]

So when you buy a used car you don't have a payment???? Damn sign me up! We are talking about leasing compared to buying something used or at least that's what I thought. The OP doesn't have the money to pay cash for a used car.

--Matt

Yes I was referring to buying used, but paying up front for it as was mentioned in this thread. If comparing two with payments it is a wash regardless.

--Joe

 

[91trunk]

Yes I was referring to buying used, but paying up front for it as was mentioned in this thread. If comparing two with payments it is a wash regardless.

--Joe

Yes, but if you read in the thread he doesn't have the cash flow to purchase up front.

Comparing the two payments are not a wash. How do you figure? After 2-3 yrs you get a new car on a lease. Purchasing, notice I didn't say owning since after 2-3yrs you still have at least 2-3yrs left of payments.

 

[99slverZ]

If your debt to income ratio is high already, how do you know you can afford it? If your credit is "platinum" as you say...Which would be atleast a mid 7xx FICO score, extremely good utilization and ZERO lates in the past 6-7 years you should be able to get two cars without an issue, especially if its through GMAC. You can have semi-shitty history with a 620 FICO and qualify for 0% on qualifying vehicles. Getting them at the same time at the same dealership may be a different story. I had my 2008 Mlaibu leased when I was 18, a brand new Raptor 700 and my Camaro. (All financed). That was with a income of under $30,000 a year. Believe me when I say they care more about your fico score and history than your income. GMAC could give a flying fook about what other payments I had, as long as my income covered their lease payment.


On a realistic note, if your wife isn't working why not get one new car and a nice reliable used car?

 

[DSG SNAKE]

If your credit score is good, the other thing that could stop you from getting approved for the two loans is "too high of a debt to income ratio" basically meaning the sum of your monthly payments is expected to exceed monthly income. When I was purchasing my house, the bank initially told me that my debt to income was too high since they thought I had two houses in my name already. The two houses were actually in my dads name since we have the same name. my score was around 750 at the time.

 

[wikdsvt]

I have a friend that bought:
1 Car
2. engagement ring
3. boat

All in the same week as none of it hit his credit report

 

[91trunk]

I have a friend that bought:
1 Car
2. engagement ring
3. boat

All in the same week as none of it hit his credit report

If you have been to more than one place the rest can see. Sometimes Ford will put stips such as "one unit" if they see you have been to more than one place. Just because it didn't "hit" your credit report doesn't mean they didn't see it.

 

[black_cobra_95]

Need more info...
What exactly is your income to debt ratio?(under 30% is good, under 9% is great) Have you checked your FICO scores recently? A credit union will most likely give you better apr than the dealer/bank. I can most likely get you the best price on any new car/lease. PM for details.

 

[02 Silver Z]

Need more info...
What exactly is your income to debt ratio?(under 30% is good, under 9% is great) Have you checked your FICO scores recently? A credit union will most likely give you better apr than the dealer/bank. I can most likely get you the best price on any new car/lease. PM for details.

I doubt if he has that worked out to know where he is at as far as Debt to income ratio. I can tell you he has a lot of CC debt, a mortgage modification and has a few toys. Credit score supposedly is good. I wouldnt expect a credit union would be willing to work with him like a dealership for what he is looking for in this day and age but I could be wrong.

 

[02 Silver Z]

If you have been to more than one place the rest can see. Sometimes Ford will put stips such as "one unit" if they see you have been to more than one place. Just because it didn't "hit" your credit report doesn't mean they didn't see it.

would they see it the same day?

 

[Killjoy]

Leasing makes the most financial sense when the car you're interested in has a high residual, you can get an employee discount (as most of us locally can) and the person driving can live within the 12k/15k mile annual allowance. Under those circumstances, it's almost always more advantageous to lease vs. buy. The only other time it makes financial sense to lease is when someone wants to drive a new car every 2/3 years, doesn't really care about the monthly payment, and doesn't want to be bothered with selling cars every time.

Leasing has turned less attractive over the last couple years due the the Big 3 struggling, getting called out on their bogus inflated residuals to help new car sales, all while taking a massive loss in the end. Leasing isn't the "no brainer" it used to be since the residuals are more realistic... and the days of getting a $200/month lease on a new truck are long gone.

As far as used, I've been shopping this market for about the last 6 months. I can tell you that the used truck market is, and has been, very hot. Supply is limited, demand is high, gas prices relatively low... and prices reflect that. If you're looking for trucks, you either need to look for something very used (over 5-6 years old)... otherwise, you might as well forget about it. For the models I'm looking at, the new truck is ~$35k... and the same exact truck that is 3 years old with 75k miles is $30k. But, if you're looking at cars, it may not be as bad.

PS. Personally, I wouldn't buy/lease a new car for an unemployed spouse. And I certainly wouldn't sign up for 2 new cars in this economy and job market if the other 1/2 is out of work.

 

[02 Silver Z]

based on what I've heard from others who have rescently leased, you are correct. The cheap lease days are gone! The guy is in fact looking to buy a pick up and lease a car. He has to have a pick up for work so thats not an option. And yes, the used market for trucks is crazy! One may has well get a new one!

 

[02 Silver Z]

If your debt to income ratio is high already, how do you know you can afford it?

The payments that they have on the vehicles they are about to turn in exceed $1,100. per month and they are making those. Whatever they get will be much less (along with insurance most likely)

 

[99slverZ]

The payments that they have on the vehicles they are about to turn in exceed $1,100. per month and they are making those. Whatever they get will be much less (along with insurance most likely)

Did the wife not have a job the whole term for the previous vehicles? If not, then rock on! If she did and lost it recently they might want to seriously cut back on what they pay every month. $1,100 per month for car payments alone from a single income is pretty rough unless he makes buku money.

 

[black_cobra_95]

I doubt if he has that worked out to know where he is at as far as Debt to income ratio. I can tell you he has a lot of CC debt, a mortgage modification and has a few toys. Credit score supposedly is good. I wouldnt expect a credit union would be willing to work with him like a dealership for what he is looking for in this day and age but I could be wrong.

Lots of CC debt= a credit score that can be as much as 100 points lower then where it should be....
If he has a load of CC debt at the moment he will not get the best rates that are possible. I suggest he pull his credit report and pay off 90 to 99% percent of his CC debt. After that, apply for a for the car loan and lease through a credit union.(some credit unions have lease specials also)

 

[91trunk]

I doubt if he has that worked out to know where he is at as far as Debt to income ratio. I can tell you he has a lot of CC debt, a mortgage modification and has a few toys. Credit score supposedly is good. I wouldnt expect a credit union would be willing to work with him like a dealership for what he is looking for in this day and age but I could be wrong.

This will be a tough one to overcome depending on where in the process he is.

Lots of CC debt= a credit score that can be as much as 100 points lower then where it should be....
If he has a load of CC debt at the moment he will not get the best rates that are possible. I suggest he pull his credit report and pay off 90 to 99% percent of his CC debt. After that, apply for a for the car loan and lease through a credit union.(some credit unions have lease specials also)

WOW!!! That's awesome advice. Seriously don't you think if he had the means to pay off the credit card debt he wouldn't be worried about buying/leasing 2 cars. :lol: