Car Lease - 45K car - zero down?
![[Post New]](/jforum/templates/default/images/icon_minipost_new.gif){kind=icon}
Anonymous
| How much can I expect a monthly lease payment to be for a 45K car, putting zero down and rolling the taxes into the lease? |
Anonymous
| You cannot afford it, if you don't have enough for a down payment. |
Anonymous
I have down payment funds, but don't want to put cash on lease; ie if car is |
Anonymous
|
I have down payment funds, but don't want to put cash up, seems like a waste of capital for a lease. Perhaps I should buy. This is my first go round buying a car in this price range and earn the annual salary to afford it. Trying to figure it out.
Currently still driving the same car that my parents bought me new when I entered college 13 years ago. |
Anonymous
| It depends on the car and the residual value. |
Anonymous
this is the right answer. The cost of the lease is the cost of the car less the residual value times the money factor, so change any one of those factors and you change the monthly payment. With a few exceptions (like people who can deduct lease costs as a business expense, people who plan to buy a new car every three years, and some electric vehicle leases), leases are generally a bad financial move. In fact, big car payments are an easy way to blow a hole in your monthly budget so I'd encourage you to think twice or 3x about whether that's really the best use of money for the next 3-5 years. |
Anonymous
| If you were happy driving a new car for 13 years you're not really a good candidate for a lease. And how many miles do you drive per year? |
Anonymous
Good point. Less than 10K miles |
Anonymous
| The bummer is, if you put money down on a lease, say $2,000, and then total it, you lose that $2,000. Meanwhile, back to your question: it depends on the car. Some American made cars lose 35% of their value the second you drive it out the door. Some only lose 10% over the life of the lease. The lease will essentially cost you that drop in value, over the time period. Remember the car insurance adds where the guy says the car lost value before its first oil change? Not the insurance company fault - he bought a piece of crap! |
Anonymous
|
If the only way you can "afford" a $45,000 car is to lease it, you cannot afford the $45,000 car.
What state do you live in? |
Anonymous
Did you read the title? OP said "lease". Rule No. 1 on lease - never put money down on lease (same way no one puts money down on rents). If you put money down on lease and wreck your car out of the lot, that downpayment is gone. OP: don't let the dealer sell you on monthly payment. Ask them for money factor and residual value (for the mileage amount you want, 10K, 15K, etc.). If they refuse to tell you, walk out. Once you have these two numbers, you can run the lease payment yourself (do you know how?). Last, pick the car/options/color/etc. then NEGOTIATE the price just like you are buying a car. |
Anonymous
| I'm in NY. Thanks for all advice. |
Anonymous
| OP - if you are a young person trying to build your wealth, I'd strongly suggest against leasing or buying an expensive car. Go buy a Camry or an Accord. Save the money. |
Anonymous
|
With < 10k per year, you're better off buying the car. The lease will assume a higher driving amount and the residual value appropriately. They'll mkae more money off you.
Basically your car depreciates less with fewer miles on it, but this isn't factored in as closely with a lease. |
Anonymous
|
Your question is going to elicit a lot of non-responsive commentary on your leasing a car. Leasing a car can actually make sense under a lot of circumstances, and if you're going to lease, minimizing money down also makes sense.
As to your actual question, 7:59 is correct. Essentially, the lease price of a car is the purchase price of the car minus the residual value at the end of the lease term, divided by the lease term. You haven't told us two of the three parts of the equation. |