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Discussion Starter · #1 ·
Looked up leasing options on tC...

That's for basic 5-speed tC ($16465):

Financing for 60mo - $306/mo (4.35%)
Leasing 36mo/12K miles/year - $269/mo + $944 due at signing (includes first payment, $275 refundable deposit and $400 acquisition fee).

So if you lease you end up paying $10100 for 3 years. tC will not depreciate $10 grand in 3 years / 36K miles, will it? So why the hell would you lease?
 

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from my understanding of leasing, the advantages are you pay lower monthly payments than a loan and you have a fixed trade in value for the year that your lease is up in. but like you said, i don't think that the fixed trade in value is ever too far off from the actual trade in value once that year comes along. so if those numbers are right, leasing really is stupid, for this car at least.
 

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Discussion Starter · #4 ·
The numbers are from scion.com

Lower monthly payments - yeah, kinda - $40 difference a month.

Fixed trade-in value of $6.5K with 36K miles on the car - call me when you will be selling your tC with 36K on it in 3 years - I'll give you $6.5K cash.


On the other hand - if it was a Taurus - I'd completely understand.
 

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yeah this lease doesnt pay, ive leased cars before. it worked awesome for me because i got gap insurance on the car as part of the lease and i run through a new car every two years or so. i took the car, traded it in, bam new one usually more expensive car, same payment. ownership for me and cars isnt something i care for, besides my classics.

correction..also i care if i plan on modifying it heavily or with parts i dont wanna have to put back on. for example my civic
 

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Where are you getting the idea that you would "trade in" your leased tC for $6,500 after 3 years? A lease is just an agreement that allows you to pay the owner of the car so you can drive it -- you do not own the car...so how could you "trade" it in for anything? Once you make the lease payments, your lease is over -- you owe nothing, but you also have no car and no equity in the vehicle.
 

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He's just comparing lease to buy, saying that if you lease you end up spending $10k anyway. This leaves you with ~$6.5k difference between full purchase price and lease cost. The tC will be worth much more than $6.5k after 3 years, so leasing=losing.
 

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I agree with you about leasing generally being a waste of money, but I don't think you're really looking at the right numbers to make the comparison. You'd have to compare the cost of leasing a car for five years to the cost of financing a purchase for 60 months. Otherwise, it's like comparing monkeys to baseball bats.

Using the numbers you provided from Scion's website, the 60-month financing will require you to pay a total of $22,032 over 5 years. A reasonable guess would be that your car would be worth $5,000 or $6,000 or so after 5 years. If it's worth $6,000 at that time, then you've spent a net of $16,032 and you now OWN the car -- as in, you don't have to go out and start paying for a new one like you would when a lease is up.

With leasing, on the other hand, you end up paying somewhat more, and NOT having a car that you own free and clear. Let's assume, for the sake of simplicity -- and because the lease price you quoted is a pretty good one -- that you could get the same lease price for another 2 years, on a brand new car, after your original 3-year lease is up. After 5 years, you would have paid $16,940, and would need to get another car. The second part is the biggest difference, and that's what I think a lot of people forget when they compare buying and leasing.

The other thing to remember about this is that the comparisons really get ridiculous if you shorten the purchase finance term. Then you're talking about thousands of dollars less paid, for a car you now own, versus one that you won't (when the lease ends).

Hope that some of that made sense outside of my mind.
 

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exactly, ownership is a key there. cars i lease i dont plan to own, i put virtually nothing down and drive the #### out of em. not miles but hard, trade em in and i move on. its a complicated situation. leases in general are not the best investment of money but a car is one of the worst anyways besides a california bond;)
 

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Originally posted by Ericgladden55@Nov 21 2004, 11:53 PM
exactly, ownership is a key there. cars i lease i dont plan to own, i put virtually nothing down and drive the #### out of em. not miles but hard, trade em in and i move on. its a complicated situation. leases in general are not the best investment of money but a car is one of the worst anyways besides a california bond;)
hmmm.... they are like a long term rental car. I've never thought about it like that. I will never buy a used car again.

late
 

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i know this is kinda reviving the thread, but ive been searching
does anyone have any realistic lease rates that dealers have given, i never trust anything from any official website, i know scion is pure pircing but when it comes to leases, the last of your concern is the MSRP you care more for hte money factor and residual which you generaly do haggle.. so does anyone have any realistic lease quotes?
 

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MSRP is the price you pay with Scions. You can trust the website price.
 

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Discussion Starter · #15 ·
The guy said that MSRP is irrelevant for the lease. And he is right.
 

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For Stan229....what you see online is what you'll get for a lease. The ONLY thing that would change....is your % rate which is based on your credit. So, if you want realistic rates, just do it online, it's damned close.

Okay, since I am leasing my tC. and zoltiz threw this at me probably because he KNOWS I'm leasing, here goes my two cents.

Leasing is NOT any better than buying ASSUMING you want to make a profit. Leasing is ONLY good if you don't want the car and don't care if you own it. So, why Cheryl, do you lease then?

I have owned 9 cars in the past 13 years. OWNED. Except two of them. I bought them and sold them within 1-2 years and usually broke even (didn't help I was buying Honda's, which are expensive, however, they keep their value, so I would break even, or make money off of it).

I would NEVER recommend leasing a vehicle that loses value fast, nor a car that would keep its value above the market, like the tC.

HOWEVER, leases are good for a few types of people. The kind that don't have a lot of cash sitting around, the kind with not so great credit or lots of debt and who have troubles getting loans, or decent rates on loans, and people who like to turnover cars within 2-3 years and don't want the hassle of ownership.

I personally could not get a loan (too much debt compared to my income), however, I needed a car. So, because my credit is good, I figured I could get a lower rate on the lease, which I did. And I didn't have a lot of cash (spent it all on getting my MR2 to run) so, my down was less than $1000. So, with "bad credit", I walked out of Scion with a new car, $260 car payment, and I believe, about $600 out of my pocket. How can you beat that deal?

Long-term I have no plans on keeping the car. When the lease is iver, I will turn it over to Scion, say buh-bye and take my deposit and walk over to another dealership and lease another car. I have turned over cars fast and well, I have made money off of it. My credit looks great with 6 car loans paid off, and 1 car lease paid off. I have no intention of keeping a car ever, over 4 years, so I see no point in purchasing one, unless I know for a fact, I can make money off of it.

BTW, if my pay-off at the end of my term, is a lot less than what the car is actually worth, I'd get a loan, buy it, then sell it and make a profit. So it's not like you can't make a profit on a leased car. I did on my Civic. HOWEVER, Scion, I guess, has a lot of confidence in their car, because my pay-off is so ridiculously high, it looks as though the car won't lose any value on my lease. Scary, but true.

To each their own. I can't buy because of my income/debt/credit levels, but I also buy and sell before my actual loan is up too. Either way, it's stupid in most people's eyes, however, not all of us can buy a $20k car and pay it off within one year.

And lastly, when you get into cars that cost $50k and more, buying those, and turning them over withing 3 years, is stupid. At that point, you should lease. And well, that's my goal in life, lol. Own cars that cost more than $50 and get rid of it every 3 years.
 

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the lease factor is all you worry about, then, that with the price will come up with a payment. or, something like that.

we have only leased one scion at maita, EVER! maybe, that should say something. leasing pwns for the dealership and it creates more money than selling because you are renting the car. and we get another used car on the lot to sell for bunches of money. now, we don't lease scions because the management doesn't recommend it. it is kinda like buying a condo in sacramento. who wants to buy an apartment?
 

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Originally posted by zoltiz@Mar 27 2006, 04:25 PM
The guy said that MSRP is irrelevant for the lease. And he is right.
Oop.. my bad.... Well.... try using the "build your scion" section on the website - it should give correct lease prices, no?
 

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well for example, as happened with every single other car that ive seen being leased

obviously htese werent scions so lets exlcude that whole no-haggle theory because im not sure how it works for lease

the lease we have on our lexus es330 is almost $100 cheaper than what hte internet finance calculator gave, a general rule of thumb that ive seen is that you'll get at least 50$ cheaper monthyl on the lease IRL in comparison to the online calcualtor, maybe this will be different with scion, but who knows


the reason i am getting a lease is because my father doesnt want ot put the money up front and owuld rahter pay monthyl while im in college and keep his payments as low as possible
 
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