car leasing experts...your opinion/views/comments on this camry please, pls....

  • rnch

    Posts: 11524

    Dec 15, 2010 12:35 AM GMT
    toyota is offering a $199 a month, 36 month lease, on new 2011 camry LE car, $1999 due at signing, 36000 miles max usage for 3 years.

    wadduathunk?
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    Dec 15, 2010 12:38 AM GMT
    I'm not sure, but from all the financial advice I've heard and read they always say leasing isn't a financial savvy decision.
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    Dec 15, 2010 12:44 AM GMT
    I think it depends on if you're one of those people who has to have a new car every three years, in which case it makes sense. Not such a good deal if you plan to keep the vehicle. I've been driving my Toyota for 21 years now.
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    Dec 15, 2010 1:36 AM GMT
    Buy a used Camry or Corolla or better yet a Mazda 3 that you can afford to pay for even by taking out a car loan.

    Leasing is renting.. sorry but that's my take on it.. If you can't afford to buy it you shouldn't be driving it.
  • rnch

    Posts: 11524

    Dec 15, 2010 1:46 AM GMT
    mindgarden saidI think it depends on if you're one of those people who has to have a new car every three years, in which case it makes sense. Not such a good deal if you plan to keep the vehicle. I've been driving my Toyota for 21 years now.


    yes, I am "one of those people". icon_wink.gif

    however, even if the decision to keep the car at the end of the lease is made; the pre-set purchase price seems quite reasonable, using a used, 2008 camry for a reference.


    icon_neutral.gif
  • rnch

    Posts: 11524

    Dec 15, 2010 1:48 AM GMT
    beneful1 saidBuy a used Camry or Corolla or better yet a Mazda 3 that you can afford to pay for even by taking out a car loan....


    corollas are too darn small inside for me!

    finding a clean, non-smoked in carmy that doesn't have a shit-load of miles is darn difficult to find around here.

    after watching what my niece went thru with the power steering/front suspension on her mazda 3, i will NOT consider that model! icon_mad.gif
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    Dec 15, 2010 1:50 AM GMT
    Hi:

    I would check also, the penalty for going over 36,000 miles, and the terms of return in terms of the car if there is extensive scratch or dents, what are those penalties...just some thoughts since I heard sometimes they can really get to you in your pocket for that. Nonetheless, it would be nice to have 'new' wheels for Xmas, especially if they delivered it with a big red bow.icon_biggrin.gif Good luck.
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    Dec 15, 2010 1:52 AM GMT

    Do you know the invoice price and the pre-agreed repurchase price? If so, it's easier to do a quick calculation of one measure of whether the deal is good. Let me know.
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    Dec 15, 2010 1:53 AM GMT
    They still sell those boring ass cars? I thought the stupid people that bought them stayed away now that they were accelerating out of control and killing people.

    Must be why theyre giving them away for so little.
  • metta

    Posts: 39144

    Dec 15, 2010 1:59 AM GMT
    Chase21 saidI'm not sure, but from all the financial advice I've heard and read they always say leasing isn't a financial savvy decision.



    It really depends on your situation. There are situations where leasing is a good option, especially if you are self employed and you only want to keep your car for a few years. You can always ask how much more it would cost to up the annual mileage allowance. I get 15k miles/ year on mine, just in case. Personally, I don't want to deal with the maintenance of an older car. I drive a Prius and would not want to have to replace the batteries. I got a new one this year and did not even need to go to the dealer. They brought the car to me and took away my old one. icon_smile.gif
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    Dec 15, 2010 2:04 AM GMT
    Do you need a car the size of a Camry?

    If so Hyundai has a similar lease special on the Sonata.

    If you don't mind going a bit smaller then the same lease rate can get you into a nice new 2011 Elantra. Lease special will be $159 monthly starting in Jan.

    29/40 MPG city/hwy
    2012-hyundai-elantra-opt.jpg
    lead12-2011-hyundai-elantra-fd.jpg
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    Dec 15, 2010 2:06 AM GMT
    rnch saidtoyota is offering a $199 a month, 36 month lease, on new 2011 camry LE car, $1999 due at signing, 36000 miles max usage for 3 years.

    wadduathunk?

    You don't state the selling price for this particular car, though a base LE without options, which is the next model up from the lowest Camry, goes for $21,175 USD. If the lease costs you $9,163, that's equivalent to 43% depreciation after 3 years. Meaning that if that same Camry can be resold in 3 years with less than 36k miles, and returns back more than $12,012, then you'd be better off to buy it. Because your cost of owning it for 3 years would be less than this $9,163 lease will be.

    Of course, that's assuming you bought it cash, and didn't have any options over the standard LE equipment. If you have to finance, then the total cost of the car to you is the selling price plus the interest. Then you'd have to run those numbers again, to see what the "break" point is where the resale value of the car subtracted from the total cost to you (as optioned, but also with any dealer discounts and Toyota rebate incentives) delivers a number less than $9,163.

    I've known a number of people who weren't happy with their car lease, which only works for certain kinds of drivers. Certainly staying under 12K annual mileage is very critical, which is below the US national average. Going over your 36K will get you charged very heavy penalities, though I assume you know your average mileage. But remember, it can't change for 3 years, so something like having a longer commute, due to job change or relocation could mess you up.

    On the other hand, a lease may appeal to those who simply can't afford the monthly car payment, but could afford a lower lease bill, and still want that more expensive car. But for many it's a false economy, similar to renting a home, that gets you a lower monthly payment but no equity. Fine if you can't afford a mortgage, or are moving often (analogous to swapping cars every few years), but not good economics if a mortgage is within your budget and you're likely to own the home for a while.

    In the past the Camry had excellent depreciation numbers, maintaining a high resale value, and you can get an idea of what 3-year-old low-mileage Camrys are getting by checking around online. Depreciation may have worsened a bit lately since the throttle recalls, but should still be easy to beat that $9,163 figure when you run the numbers yourself. Frankly I'm dubious that lease is a good deal if you can afford to finance for 3 years at the current lower interest rates, and possibly getting a dealer discount and any factory rebates.
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    Dec 15, 2010 3:16 AM GMT
    This is coming from a guy who is a relative of one of the largest car dealers in the US. Seeing as you get a new car every 3 years, it is a good deal. Make sure that you calculate how many miles you drive each year. If you are going to go over in miles make sure and buy extra when you lease the car because they will charge you up the yingyang if you don't. they will also charge you for wear and tear if there are any scratches or dents on it when you turn it back in at the end of the lease. I lease a new Mitsubishi every 3 years and they have a program where you can turn it in 3 months early as is and there will be no addition charge for wear and tear. I had one that I had an accident with one week before I was to turn it in and there were no charges.some other companies will do this too so they will keep you as a customer.
  • rnch

    Posts: 11524

    Dec 15, 2010 3:18 AM GMT
    flieslikeabeagle said
    Do you know the invoice price and the pre-agreed repurchase price? If so, it's easier to do a quick calculation of one measure of whether the deal is good. Let me know.
    invoice price: $23484, capitalized cost $20259, purchase price at end of lease $13702
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    Dec 15, 2010 3:20 AM GMT
    May I suggest you check out www.LeaseTrader.com ?
  • rnch

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    Dec 15, 2010 3:24 AM GMT
    fifteen cent per mile penalty past 36,000 miles.

    given that my current 5 1/2 years old car has 54000 miles on it; and that i have 2 other older, but still reliable "collector" cars that i can drive more frequently than i do now, i don't think the 12k mileage cap will be a problem for me.
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    Dec 15, 2010 3:36 AM GMT
    I got them to bump my miles up from 12k to 15k a year. I got a Prius with $1k down, $190 a month, 15k mile per year, and free maintenance for 2 years. The original advertised lease deal was $2k down, $220 a month, 12k miles per year and free maintenance for 2 years.

    Make sure you go lease the car an hour before they close. If you keep them there late they will be more likely to submit to your demands since they want to get the car leased and go the fuck home. I kept the entire team there (Salesman, Manager, Finance Person, and lot attendant) until 10:30pm and they were supposed to close at 9pm. They got so tired by that time that they just gave in and gave me what I asked for. However, make sure you bring the process to about 70% complete before negotiating the final price. They will not give up if they think they got that close to a deal and will try to seal the deal.

    You might have to come back the next day to pick up floormats or have the car washed but whatever.

    Again, do not pay for additional miles. Make them give it to you! They'll try to bump up your payments if you ask for more miles. Say NO!

    I've gone through 3 leases in my life and have always gotten what I asked for.
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    Dec 15, 2010 3:40 AM GMT
    Honda is offering zero down leases right now on the Accord. So that totally makes your Camry lease look like a rip-off. If you're set on getting a Camry, see if you can get a lower down payment. I mean, $2000 sounds like a lot anyways, assuming you have excellent credit.
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    Dec 15, 2010 4:23 AM GMT
    Speaking from experience.......keep the car you have, it is most likely paid for I'm assuming if you bought it new and it has 54,000 miles on it. Put the 2,000.00 in the bank and bank the 199.00 a month then just buy a new car when you can sell your old one and have enough savings to pay cash plus the price of your old car. I mean if you really needed a new car I'd say go for it because you probably could not get a brand new car for that payment.

    Suze Orman says never lease a car and only take out your payments for 36 months. If you are taking out payments for longer than that you can not afford it, her advice not mine, but it does kind of make sense.




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    Dec 15, 2010 5:21 AM GMT
    figures0108 saidSpeaking from experience.......keep the car you have, it is most likely paid for I'm assuming if you bought it new and it has 54,000 miles on it. Put the 2,000.00 in the bank and bank the 199.00 a month then just buy a new car when you can sell your old one and have enough savings to pay cash plus the price of your old car. I mean if you really needed a new car I'd say go for it because you probably could not get a brand new car for that payment.

    Suze Orman says never lease a car and only take out your payments for 36 months. If you are taking out payments for longer than that you can not afford it, her advice not mine, but it does kind of make sense.

    This pretty much explains what I've always done. Of course, some people need a car now, and don't have the luxury of waiting until those monthly self-payments into the bank build into the cost of a new car.

    For over 40 years I've never bought a motorcycle or scooter except for cash. Likewise all my cars, except for a few years in the 1980s following my first divorce, when I was financially drained and had to live solely on an Army Officer's meager pay. My ex-wife, an Army Officer herself, kept my car over in Germany (actually illegally, since it was titled in my name), while I was back in the States and needed a car right now. I did as Orman advises, and got car financing for no more than 36 months.

    My parents likewise always bought all their cars cash. Except once, when my father asked me for advice regarding a 1% interest rate deal on a new car they were considering. I asked him what returns he was currently getting on his investments. I ran the numbers, and said he could make a little money by doing the monthly car payments and keeping the rest of his money earning better interest.

    Actually it wasn't that much of a saving, in my view, for the bother of having to be saddled with monthly payments to which they weren't accustomed. But they were getting older, and I think another unspoken motivation was the thought my father might die, the loan insurance rider paying the car off, and the unspent money available to his estate.

    He did outlive the loan, and the car itself by 1 year, but it was my mother who didn't, dying unexpectedly. And the car was actually for her to drive. She always got the new one, my father driving her old hand-me-down cars, because he was the world's worst driver, always having accidents.

    And so he didn't start driving that car until after she died, and soon wrecked it. During the last year of his life he bought a used thing, promptly dented it all up, too, until I came to live with him and took the keys away, driving him everywhere myself. But he did pay cash for it, and so I sold it easily when he died shortly afterward, the money going into his estate. :::SIGH:::
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    Dec 15, 2010 5:23 AM GMT
    rnch said
    flieslikeabeagle said
    Do you know the invoice price and the pre-agreed repurchase price? If so, it's easier to do a quick calculation of one measure of whether the deal is good. Let me know.
    invoice price: $23484, capitalized cost $20259, purchase price at end of lease $13702


    From a purely financial perspective this doesn't look bad at all. So the questions that come to mind are:

    -do you like the car?

    -do you think the mileage limits will accomodate your driving ?

    - are you confident that you will be in a position to replace (or buy) the car when the lease is up?
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    Dec 15, 2010 5:34 AM GMT
    You are investing around 10k for 3 years for a car that has value of around 20k. If you are the guy that keeps changing car, then def. do it. Otherwise NO.
  • KinesiologyMa...

    Posts: 123

    Dec 15, 2010 5:38 AM GMT
    no matter what you think leases are scams used to work for a dealership they are robbing you of money don't do it
  • rnch

    Posts: 11524

    Dec 15, 2010 3:58 PM GMT
    flieslikeabeagle said
    rnch said
    flieslikeabeagle said
    Do you know the invoice price and the pre-agreed repurchase price? If so, it's easier to do a quick calculation of one measure of whether the deal is good. Let me know.
    invoice price: $23484, capitalized cost $20259, purchase price at end of lease $13702


    From a purely financial perspective this doesn't look bad at all. So the questions that come to mind are:

    -do you like the car? yes

    -do you think the mileage limits will accomodate your driving ?just barely, yes. i have twoother older cars that can "take up the slack" if needed.

    - are you confident that you will be in a position to replace (or buy) the car when the lease is up?
    yes. even more so 3 years from now.
  • rnch

    Posts: 11524

    Dec 22, 2010 2:22 PM GMT
    i popped for the 3 year lease earlier this week; but got the dealer to bump up the mileage to 15K a year. i might had been able to live with 12k a year (i have 2 other reliable, older cars); but it was just too close to call.

    strangely enough, i feel that i might just purchase this car at the end of the lease! i like it that much.

    'course who knows what i will feel in 3 years...... icon_lol.gif