Anyone here know about LEASING or LEASE TRADING?
10-22-2004, 04:18 PM
#1
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Anyone here know about LEASING or LEASE TRADING?
So I'm sitting here thinking about how I'm going to mod my car. Because I just got this awesome job w/ Lockheed Martin that will lead into a summer job after the school year and I'm thinking to myself, "this job, after taxes, will net me about 10,000 dollars over the 12 week summer. Man, 10,000 dollars is a lot. I could buy a lot of stuff for my car with 10,000 dollars. As in an STI block, STI tranny, FP green, etc. etc."
Then I thought: "10,000 dollars is a lot to spend on a 20,000 dollar car..."
So I realized: "I need to sell my car for at least 15,000 dollars at the end of this school year (june) and I will be able to pay off the remaining loan balance on the car"
And thus I thought: "After the summer ends, I'll be graduating in another 9 months. So I will have 10,000 dollars, and in addition paid off the loan on the WRX in full after selling it."
This made me do math: "I've got good contacts at Lockheed Martin, so after I graduate I'm almost guaranteed a job there. Even though it's not as good a job as others, it's still 60 grand a year, and a bachelor can damn well afford a corvette on that salary."
SO this finally comes to the subject of this post: why don't I, after I sell my car and after the summer, go and take over the lease, or start a new lease, on a corvette? After all, I don't need to be able to continuously pay 1000 a month for payments and insurance, I only need to have 10,000 dollars in the bank (which I will) so that I can dish out 1000 a month until i graduate and start making bank.
So this leads to my concern: How does not having a lot of credit yet (By virtue of a student) affect leasing, and more specifically lease TRADING.
Because looking on sites like swapalease.com and leasetrader.com, the payments for taking over a lease on a 2002-2004 Z06 'Vette range from 6-800 dollars/month (I guess depending on the original leaser's down payment, duration of the loan, and how they were at negotiating), a 2001-2004 M3 about the same. And that sound like a good idea to me. And insurance quotes I got will be 2-300 dollars on either car, so that works out.
Except I'm thinking that there MUST be some kind of catch, either the financing corporation won't like you because your credit isn't as good as the original leaser's, etc. The way I got around that with the WRX was that my dad signed off on the loan in his name, and he just set up an automatic deduction on my account each month for the monthly payment on the wrx. But I was under the impression that with a LEASED car, only the official leaser can drive it, therefore I can't do the same thing now.
Any help? Feel free to COMMENT, or maybe FLAME, since this is BAIC, and we like to do PLENTY OF BOTH.
Thanks,
Ambert
Then I thought: "10,000 dollars is a lot to spend on a 20,000 dollar car..."
So I realized: "I need to sell my car for at least 15,000 dollars at the end of this school year (june) and I will be able to pay off the remaining loan balance on the car"
And thus I thought: "After the summer ends, I'll be graduating in another 9 months. So I will have 10,000 dollars, and in addition paid off the loan on the WRX in full after selling it."
This made me do math: "I've got good contacts at Lockheed Martin, so after I graduate I'm almost guaranteed a job there. Even though it's not as good a job as others, it's still 60 grand a year, and a bachelor can damn well afford a corvette on that salary."
SO this finally comes to the subject of this post: why don't I, after I sell my car and after the summer, go and take over the lease, or start a new lease, on a corvette? After all, I don't need to be able to continuously pay 1000 a month for payments and insurance, I only need to have 10,000 dollars in the bank (which I will) so that I can dish out 1000 a month until i graduate and start making bank.
So this leads to my concern: How does not having a lot of credit yet (By virtue of a student) affect leasing, and more specifically lease TRADING.
Because looking on sites like swapalease.com and leasetrader.com, the payments for taking over a lease on a 2002-2004 Z06 'Vette range from 6-800 dollars/month (I guess depending on the original leaser's down payment, duration of the loan, and how they were at negotiating), a 2001-2004 M3 about the same. And that sound like a good idea to me. And insurance quotes I got will be 2-300 dollars on either car, so that works out.
Except I'm thinking that there MUST be some kind of catch, either the financing corporation won't like you because your credit isn't as good as the original leaser's, etc. The way I got around that with the WRX was that my dad signed off on the loan in his name, and he just set up an automatic deduction on my account each month for the monthly payment on the wrx. But I was under the impression that with a LEASED car, only the official leaser can drive it, therefore I can't do the same thing now.
Any help? Feel free to COMMENT, or maybe FLAME, since this is BAIC, and we like to do PLENTY OF BOTH.
Thanks,
Ambert
10-22-2004, 11:43 PM
#2
it might give u problem buying the car after lease cause it depends on the owner if he or she wants to sell the car or return it to the dealer also the other thing to check out is option to buy price of the car for example used zo6
market value today is 29k-35k now the leasers would probably sell u the car below blue book value im guessing 23-25K now add the lease payments u been making for $800 month for 1- 2years lets just say 18months= 14400 + 23k so ur looking at $37400 total and 6+ years u been paying for a used car hope this helps.
market value today is 29k-35k now the leasers would probably sell u the car below blue book value im guessing 23-25K now add the lease payments u been making for $800 month for 1- 2years lets just say 18months= 14400 + 23k so ur looking at $37400 total and 6+ years u been paying for a used car hope this helps.
10-23-2004, 01:25 AM
#3
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verc, you do not want to be in debt. even a lease has reqired payments and so on as you well know. people i know who had to borrow for college are misserable with all the debt they've racked up. make sure to reason out if a corvette is necessary compared to investments such as a piece of property or just the bank.
just some food for thought =)
just some food for thought =)
10-23-2004, 12:28 PM
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Originally Posted by TheOmega
verc, you do not want to be in debt. even a lease has reqired payments and so on as you well know. people i know who had to borrow for college are misserable with all the debt they've racked up. make sure to reason out if a corvette is necessary compared to investments such as a piece of property or just the bank.
just some food for thought =)
just some food for thought =)
well, you miss my point. This is just a funny thought I had laying in bed one day. I'm not saying this is a GOOD idea, I'm just pondering it and wondering how it would all work out.
10-23-2004, 12:31 PM
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Originally Posted by SDD
it might give u problem buying the car after lease cause it depends on the owner if he or she wants to sell the car or return it to the dealer also the other thing to check out is option to buy price of the car for example used zo6
market value today is 29k-35k now the leasers would probably sell u the car below blue book value im guessing 23-25K now add the lease payments u been making for $800 month for 1- 2years lets just say 18months= 14400 + 23k so ur looking at $37400 total and 6+ years u been paying for a used car hope this helps.
market value today is 29k-35k now the leasers would probably sell u the car below blue book value im guessing 23-25K now add the lease payments u been making for $800 month for 1- 2years lets just say 18months= 14400 + 23k so ur looking at $37400 total and 6+ years u been paying for a used car hope this helps.
What do you mean? So even if the original leaser legally transfered the lease to me, they would still have say at the lease end?
Right. I understand the part below. Mainly I don't understand the concept of lease trading. So what you are saying is that lease trading is not a complete trade of the lease from one legal party to another?
10-25-2004, 12:45 AM
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Dahveed aka Robin Hood
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I've heard of lease trading, and it sounded weird.
I wouldn't do it personally...
When do you graduate?
Can you afford a nicer car during the school year?
I wouldn't get a more expensive car if I was depending on making my payments the whole year off of salary earned only during 12 weeks.
Get a nicer car after you've graduated, and have been at your job longer.
I wouldn't do it personally...
When do you graduate?
Can you afford a nicer car during the school year?
I wouldn't get a more expensive car if I was depending on making my payments the whole year off of salary earned only during 12 weeks.
Get a nicer car after you've graduated, and have been at your job longer.
10-25-2004, 01:20 PM
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Originally Posted by dahveed
I've heard of lease trading, and it sounded weird.
I wouldn't do it personally...
When do you graduate?
Can you afford a nicer car during the school year?
I wouldn't get a more expensive car if I was depending on making my payments the whole year off of salary earned only during 12 weeks.
Get a nicer car after you've graduated, and have been at your job longer.
I wouldn't do it personally...
When do you graduate?
Can you afford a nicer car during the school year?
I wouldn't get a more expensive car if I was depending on making my payments the whole year off of salary earned only during 12 weeks.
Get a nicer car after you've graduated, and have been at your job longer.
Yeah lease trading sounds too good to be true. Anytime you hear people praise something without any downsides, there's gotta be a catch, which is what I was wondering.
You're right my plan would totally fail; I'm planning on going to Bondurant racing school this summer and snowboarding camp in New Zealan, both of them will already add up to almost 5 grand so I doubt I'd in reality have this money laying around
10-25-2004, 01:22 PM
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verc,
First off, DON'T EVER LEASE.
Second, where in Lockheed Martin do you work at? I'm in Lockheed Martin Technical Operations in Sunnyvale, just off of the Missiles and Space Campus near Moffett Field. lunch meet
Third, DON'T EVER LEASE.
You are better off buying a slightly used lease return than leasing a brand new car. Leasing a car just brings all sorts of headaches and financial repercussions you seriously don't need yet.
60K a year is not a lot, once you factor in cost of living (you don't really expect to live with your parents while you are making 60k a year, do you? ). Just some quick math: 60K a year, minus federal and state taxes, and FICA, roughly equals 42k. 401k? Pretax max is .. 15%, so if you max it, that's about 750 a month, or 9K a year. Let's not confuse things by adding this, so I will assume you will not max out 401k contributions yet. Now, if you are adding in insurance costs (health, dental, life, car, renters/home), that's another .. say .. 3-8K annually depending on a lot of factors. Now, let's say rent for a one bedroom is roughly .. 1000 a month (decent apartment in a good complex). That's almost 15-20k gone, and you haven't even factored in the car payments and other living expenses.
Let's assume you buy a 36k car, with a down payment of .. say ... 10k. That's 26K in loans you have to pay off. Let's assume you can manage to get a generous 4% rate. Your monthly payments would be around 480 a month. So, let's see.. a 60K a year salary is about 5k a month, before taxes. After taxes it's closer to 3500. You have 3500 a month to play with. Let's take out the rent. 2500. Let's take out the car. 2020. You now have 2020 to pay all the rest of your insurance and other living expenses. Doesn't leave much for savings, does it?
But wait, you can LEASE! Uhm.. As Suze Orman says "leasing is someone's way of driving a car they can't afford to impress people they don't know." See http://biz.yahoo.com/pfg/e16buylease/ for a series of articles by Suze Orman on why leasing is bad, mmkay?
Starting to get the picture? I know how exciting the prospect of making all that money seems, but you have to make yourself step back and do a reality check. Before you do any serious financial decisions, understand the ramifications. If you still think it's a good idea once you've had a chance to calm down and think about it, then by all means, go for it. Just understand what you are getting into.
Note, I'm not slamming on you or anything. I'm simply pointing out that you need to take a good look at what you are getting yourself into if you intend on any big purchases.
Now... about that lunch meet
shadowcat
First off, DON'T EVER LEASE.
Second, where in Lockheed Martin do you work at? I'm in Lockheed Martin Technical Operations in Sunnyvale, just off of the Missiles and Space Campus near Moffett Field. lunch meet
Third, DON'T EVER LEASE.
You are better off buying a slightly used lease return than leasing a brand new car. Leasing a car just brings all sorts of headaches and financial repercussions you seriously don't need yet.
60K a year is not a lot, once you factor in cost of living (you don't really expect to live with your parents while you are making 60k a year, do you?
). Just some quick math: 60K a year, minus federal and state taxes, and FICA, roughly equals 42k. 401k? Pretax max is .. 15%, so if you max it, that's about 750 a month, or 9K a year. Let's not confuse things by adding this, so I will assume you will not max out 401k contributions yet. Now, if you are adding in insurance costs (health, dental, life, car, renters/home), that's another .. say .. 3-8K annually depending on a lot of factors. Now, let's say rent for a one bedroom is roughly .. 1000 a month (decent apartment in a good complex). That's almost 15-20k gone, and you haven't even factored in the car payments and other living expenses. Let's assume you buy a 36k car, with a down payment of .. say ... 10k. That's 26K in loans you have to pay off. Let's assume you can manage to get a generous 4% rate. Your monthly payments would be around 480 a month. So, let's see.. a 60K a year salary is about 5k a month, before taxes. After taxes it's closer to 3500. You have 3500 a month to play with. Let's take out the rent. 2500. Let's take out the car. 2020. You now have 2020 to pay all the rest of your insurance and other living expenses. Doesn't leave much for savings, does it?
But wait, you can LEASE! Uhm.. As Suze Orman says "leasing is someone's way of driving a car they can't afford to impress people they don't know." See http://biz.yahoo.com/pfg/e16buylease/ for a series of articles by Suze Orman on why leasing is bad, mmkay?
Starting to get the picture? I know how exciting the prospect of making all that money seems, but you have to make yourself step back and do a reality check. Before you do any serious financial decisions, understand the ramifications. If you still think it's a good idea once you've had a chance to calm down and think about it, then by all means, go for it. Just understand what you are getting into.
Note, I'm not slamming on you or anything. I'm simply pointing out that you need to take a good look at what you are getting yourself into if you intend on any big purchases.
Now... about that lunch meet
shadowcat
10-25-2004, 02:59 PM
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I've leased 2 cars, and its been great.
I'll admit the first time I did it was because I owned a business, and I don't care what that crackhead blonde says, but it was def. worthwhile to lease when I had a business.
first was an '02 WRX, and I leased it no probs (price was below invoice).
after someone totalled my WRX, I leased an '04 STi, also priced below invoice.
Cars aren't an investment, you know, and I've always had a lot of insurance coverage.
I've made it worthwhile by negotiating the sale price first, then working out the leasing terms.
I don't know if I want to keep my car, and I might change my mind in 3 years...
I like flexibility...
David
I'll admit the first time I did it was because I owned a business, and I don't care what that crackhead blonde says, but it was def. worthwhile to lease when I had a business.
first was an '02 WRX, and I leased it no probs (price was below invoice).
after someone totalled my WRX, I leased an '04 STi, also priced below invoice.
Cars aren't an investment, you know, and I've always had a lot of insurance coverage.
I've made it worthwhile by negotiating the sale price first, then working out the leasing terms.
I don't know if I want to keep my car, and I might change my mind in 3 years...
I like flexibility...
David
10-25-2004, 03:04 PM
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okay, big diff between leasing as a person and leasing as a business. Also, leasing for short term is ... iffy. Leasing for long term is just a losing proposition.
I've always been a buy kind of guy. Leasing never attracted me. Besides, from personal experience (my brother had to deal with a lease situation... he vowed never to lease again) I know firsthand what a pain in the *** it can be.
Not to say that leasing may not be a BAD alternative for a person.. as always, it depends on one's individual circumstances. For a majority of people however, leasing is just a bad move.
shadowcat
I've always been a buy kind of guy. Leasing never attracted me. Besides, from personal experience (my brother had to deal with a lease situation... he vowed never to lease again) I know firsthand what a pain in the *** it can be.
Not to say that leasing may not be a BAD alternative for a person.. as always, it depends on one's individual circumstances. For a majority of people however, leasing is just a bad move.
shadowcat
10-25-2004, 05:40 PM
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Originally Posted by shadowcat
verc,
First off, DON'T EVER LEASE.
First off, DON'T EVER LEASE.
Second, where in Lockheed Martin do you work at? I'm in Lockheed Martin Technical Operations in Sunnyvale, just off of the Missiles and Space Campus near Moffett Field. lunch meet
You are better off buying a slightly used lease return than leasing a brand new car. Leasing a car just brings all sorts of headaches and financial repercussions you seriously don't need yet.
60K a year is not a lot, once you factor in cost of living (you don't really expect to live with your parents while you are making 60k a year, do you? ). Just some quick math: 60K a year, minus federal and state taxes, and FICA, roughly equals 42k. 401k? Pretax max is .. 15%, so if you max it, that's about 750 a month, or 9K a year. Let's not confuse things by adding this, so I will assume you will not max out 401k contributions yet. Now, if you are adding in insurance costs (health, dental, life, car, renters/home), that's another .. say .. 3-8K annually depending on a lot of factors. Now, let's say rent for a one bedroom is roughly .. 1000 a month (decent apartment in a good complex). That's almost 15-20k gone, and you haven't even factored in the car payments and other living expenses.
). Just some quick math: 60K a year, minus federal and state taxes, and FICA, roughly equals 42k. 401k? Pretax max is .. 15%, so if you max it, that's about 750 a month, or 9K a year. Let's not confuse things by adding this, so I will assume you will not max out 401k contributions yet. Now, if you are adding in insurance costs (health, dental, life, car, renters/home), that's another .. say .. 3-8K annually depending on a lot of factors. Now, let's say rent for a one bedroom is roughly .. 1000 a month (decent apartment in a good complex). That's almost 15-20k gone, and you haven't even factored in the car payments and other living expenses.
Let's assume you buy a 36k car, with a down payment of .. say ... 10k. That's 26K in loans you have to pay off. Let's assume you can manage to get a generous 4% rate. Your monthly payments would be around 480 a month. So, let's see.. a 60K a year salary is about 5k a month, before taxes. After taxes it's closer to 3500. You have 3500 a month to play with. Let's take out the rent. 2500. Let's take out the car. 2020. You now have 2020 to pay all the rest of your insurance and other living expenses. Doesn't leave much for savings, does it?
Starting to get the picture? I know how exciting the prospect of making all that money seems, but you have to make yourself step back and do a reality check. Before you do any serious financial decisions, understand the ramifications. If you still think it's a good idea once you've had a chance to calm down and think about it, then by all means, go for it. Just understand what you are getting into.
Note, I'm not slamming on you or anything. I'm simply pointing out that you need to take a good look at what you are getting yourself into if you intend on any big purchases.
Note, I'm not slamming on you or anything. I'm simply pointing out that you need to take a good look at what you are getting yourself into if you intend on any big purchases.
yes, which is why I reassert that this was a THOUGHT EXPERIMENT. lol, yeah thanks for the analysis, helps me a lot.
10-25-2004, 06:29 PM
#12
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Originally Posted by shadowcat
okay, big diff between leasing as a person and leasing as a business. Also, leasing for short term is ... iffy. Leasing for long term is just a losing proposition.
I've always been a buy kind of guy. Leasing never attracted me. Besides, from personal experience (my brother had to deal with a lease situation... he vowed never to lease again) I know firsthand what a pain in the *** it can be.
Not to say that leasing may not be a BAD alternative for a person.. as always, it depends on one's individual circumstances. For a majority of people however, leasing is just a bad move.
shadowcat
I've always been a buy kind of guy. Leasing never attracted me. Besides, from personal experience (my brother had to deal with a lease situation... he vowed never to lease again) I know firsthand what a pain in the *** it can be.
Not to say that leasing may not be a BAD alternative for a person.. as always, it depends on one's individual circumstances. For a majority of people however, leasing is just a bad move.
shadowcat
Shadowcat, you know anything about lease trading then? I know leasing is a bad option already, but if I trade leases maybe I can find one where the original leaser already put in a big down payment.
10-25-2004, 09:54 PM
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Originally Posted by rxvagon
first off if you own a house...leasing is great. second save your money and buy a house if you don't have one. it will be the best investment you can make.