Financed a used Explorer in 1995... In 1997 I started to lease my vehicles... Wife's 2007 Grand Caravan lease was coming up (27 month lease) and buyout with tax was $3500+ less than what it is valued at (Less than what my buddy just paid for one at a dealer auction) and not to mention she only had 10,800 miles on it. Also, it qualifies for the lifetime power train warranty. Was planning on buying it from the dealer. However, I got pretty annoyed because they added fees that were unacceptable (lease purchase fee, documentation fee, etc.). I didn't mind the documentation fees and from what I understand chrysler gives the dealership some $$$$ to handle the loans but they practically added about $800 to my buyout price w/ taxes. So, I ended up calling my sister in laws credit union and ended up getting a loan with no fees and 1% lower interest (5% for 5 years with option to pay it off at anytime without penalty).

Feels pretty weird to actually be buying a car for the first time in 14 years! Hope I don't regret my decision. I did feel pretty good to know that after I filled out the application online I was called and approved within 30 minutes of fill it out!!! 790 credit score!!!

One lease gone... one more to go in February 2010!!!

Sounds like you got a great deal! Nice Credit Score BTW!

---

Grateful11

Don't regret buying your car. Leasing cars is what you should be regretting.

Oh, and the only thing I regretted was not paying cash for the sales tax. Yikes. Sucks but nothing I can do now. Oh, and my payment is about $20-$25 less a month than what we are paying now.

Quote
bwicklander
Don't regret buying your car. Leasing cars is what you should be regretting.

Ditto that. Unless the car is written off as a business expense, it is generally a lose-lose proposition to lease a car. Until my current car, I've always paid cash for the car (meaning I usually had a crummier car than other people I knew (those in hock up to their eyebrows). The only reason i financed my current car was that they gave me an offer I couldn't refuse (0.9%).

---

"Man is a little germ that lives on an unimportant rock ball that revolves about a small star at the outskirts of an ordinary galaxy... ...I am absolutely amazed to discover myself on this rock ball rotating around a spherical fire. It’s a very odd situation. And the more I look at things I cannot get rid of the feeling that existence is quite weird." - Alan W. Watts

credit unions are how businesses should be run.

---

*********** Sig, line ******************

Edited 673,234,176,493 time(s). Last edit at 07/13/2009 09:04AM by AAA.

My condolences.

---

Trees are poems that earth writes upon the sky,
We fell them down and turn them into paper,
That we may record our emptiness.

Quote
Black
My condolences.

Really? Why? Because we financed over paying cash?

Real impressed with the credit union. What was annoying was I was there for 1-1/2 hours setting up an account and getting the paperwork ready to close... Then at closing we were there at least another hour!

Quote
spacescape

Quote
Black
My condolences.

Really? Why? Because we financed over paying cash?

Don't take this personally but


I think a good goal is to only pay cash for things that drop in value like a rock (cars, life's toys). Some people say its too hard to do that, but the real problem is American buying habits are buy now pay later. Some how we need to reverse that thinking.


gg

Quote
goosegunner
American buying habits are buy now pay later. Some how we need to reverse that thinking.


gg

27% interest on CC seems to be helping with that.
The economy is suffering a little, though.

Quote
goosegunner

Quote
spacescape

Quote
Black
My condolences.

Really? Why? Because we financed over paying cash?

Don't take this personally but


I think a good goal is to only pay cash for things that drop in value like a rock (cars, life's toys). Some people say its too hard to do that, but the real problem is American buying habits are buy now pay later. Some how we need to reverse that thinking.


gg

I don't take that personal... However, I have a mortgage which I've never missed a payment and two car payments... Credit cards are paid off once a month if there is anything on them. So, I think I'm doing fine living within my means (Edit... I guess if I need to pay cash for everything I'm not living within my means).



Edited 1 time(s). Last edit at 11/07/2009 09:21AM by spacescape.

Quote
billb

Quote
goosegunner
American buying habits are buy now pay later. Some how we need to reverse that thinking.


gg

27% interest on CC seems to be helping with that.
The economy is suffering a little, though.

The credit card companies and financial institutions of just of been left to crash and bur IMO. My opinion is especially now that they (all the big ones) are taking bonuses with our money and in the meantime raised peoples interest from under 10% to over 20% !!! In fact, my citi bank credit card was 6.99% and moved up to 17.99% "due to the current financial situation". Doesn't matter to me because I pay 0% a month seeing it gets paid off!

Leasing is financing. You are paying for the anticipated depreciation plus interest. The big difference at the end of a lease is that you own nothing and may owe due to damage or unexpected wear and tear.

What's the difference if someone saves $300/month and then in five years pays $18000 for a car or finances a car at a low interest rate and pays like $325/mo for the same thing?
$25/mo is not very much....if it is, purchase a cheaper car.

WIth interest rates so low and some 0% offers out there, you are foolish to throw all your cash in on something that depreciates when you are being given a loan for next to nothing.

Now, high interest rate loans are another deal altogether.

I purchased a new Honda Civic last year and financed it at 2.9%. Sure, I paid the tax and title with cash, but I'm financing the rest. Why blow my savings when over the course of 5 years I'll probably make near that interest in an online savings account.

Quote
macphanatic
Leasing is financing.

Exactly. Lessors are financing depreciation which is why it is a big lose-lose double-whammy and by far the most expensive way to purchase the right to drive a vehicle. The most economical way to get that right is to 1) NOT get a new car - buy at least 2 years old so you don't throw your money away on depreciation; and 2) pay cash or get far-below-market financing (I'm talking 3% or less).

---

"Man is a little germ that lives on an unimportant rock ball that revolves about a small star at the outskirts of an ordinary galaxy... ...I am absolutely amazed to discover myself on this rock ball rotating around a spherical fire. It’s a very odd situation. And the more I look at things I cannot get rid of the feeling that existence is quite weird." - Alan W. Watts