I found an interesting acticle in my local paper about leasing. Since I know some of you are leasing it might be an interesting read. Here is the link http://www.projo.com/business/content/projo_20021230_lease30.b0fe8.html

I don't know if you need an user name, but if it asks you for it mine user name is cueball1029 and password is rotary.
Hope this helps some people.

Thanks cueball, I registered to get access (your username/pass didn't work).

Good read. However I am leasing regardless because there is a definate benefit in having lower payments. I can't afford to buy the car outright in the beginning if I wanted to, but a 2 grand down payment and ~$350-$400 a month payment I can swing. It's when that payment goes up to $600 or $700 that I cannot.

Besides, at the end I can always turn in the car and lease something else (like a MPS RX-8 :D), so there is that benefit for me. Many people enjoy the equity in the car but I personally, enjoy the car and the drive it provides. After three years I will tire of the same old thing, and thus my upgrade will be to the MPS RX-8 or something else, depending on my financial situation.

I will be leasing too.. It's not financially smart to have so much cash tied up in a very depreciating asset.. If you can even call a car a financial asset.. :)

buying outright will save you money in the long run by far

Originally posted by Immi
buying outright will save you money in the long run by far
Not if you are in the high/highest tax bracket and use the money saved by leasing for RSP's and investments. Leasing will cost more in the long run IF you do not use the leasing savings for write off and/or investments.

Say after taxes you pay $50K Canadian for it brand new. In two years it will be worth $35-40K. You just lost $10-15K in two years.. No thank you. :)

Originally posted by Quick_lude

Not if you are in the high/highest tax bracket and use the money saved by leasing for RSP's and investments. Leasing will cost more in the long run IF you do not use the leasing savings for write off and/or investments.

Say after taxes you pay $50K Canadian for it brand new. In two years it will be worth $35-40K. You just lost $10-15K in two years.. No thank you. :)

And if you lease you have paid the $10-15K. If you paid for it and then sold it, you are still out the money. I some cases it is better to lease and some it is better to buy. It really depends on the residual value they give you in the lease vs. what the real value of the car is after the lease.

In the mid to late 90's you could lease SUV's for very cheap due to the high residuals on the leases. But, the banks have taking a bath in the early 00's on leases and are making the residuals low. Therefore the lease payment can be higher that a loan payment.

If you leased and invested the money in stock market the past two years.... you were better off buying the car :o(

I will put the car on a home equity loan, write off the interest, and invest my money :o)

roachman

Well I'm in Canada so taxes and lease details are different.. but in my case I'll "make" more money by leasing and using the savings for tax write offs. Darn higher bracket tax structures.. :mad:

the interest on the leases payed is much more higher than what can be earned in the market today

- in case you haven't noticed, the interest rates are practically zero in bond markets, north american stock markets have been on negative decline for the past three years - and you still have to pay 6% or so on a lease - NO thank you!

leasing is only good if you have your own business for tax reducing purposes - than the actual cost value of the lease is small ~ thats how car rental companies make their money

for 80% of the world buying a car is much better off

i leased my TLS for the sole reason of my business and the amount I money i save - If I was working for someone I would have bought it.

think about this - car dealerships want you to pay the full amount (for both parties its a win win situation), if they offered an interest higher than that of the market this encourages people to buy the car instead of leasing. If the interest rate they offered was lower, everyone would lease and eventually this would drive the interest rate up (dealerships realise they can make more money). I dont think there has ever been a time where german and japanese automakers have ever offered an interest rate lower than that of the markets'.

I think, quicklude, you forget that these companies want to make money - and money earned on leasing accounts for approx. 40% of gross income.

I don't think there has ever been a time where leasing has been more advantageous than buying a car.

Also, the leasing company gets a tax deduction for the depreciation of the vehicle (since they are still viewed as the owners under the tax code). Thus, a leasing company will theoretically pass a portion of that tax savings to the consumer to induce them to lease.

Also, the leasing company gets a tax deduction for the depreciation of the vehicle (since they are still viewed as the owners under the tax code). Thus, a leasing company will theoretically pass a portion of that tax savings to the consumer to induce them to lease.

Sorry about the password, but i am glad some people found it interesting.

Well I plan on leasing my 8. My question is how is the value of Mazda's in general. If they are moderate to low, do you think that the RX-8 will have a higher value? For those of you who don't know...the higher the resale value of a car, the lower your lease payments will be because you are paying on the depreciation of the vehicle. I hope the RX-8's value is high so my payments will be lower. I think if Mazda keeps production relatively low, then it's depreciation will be low, but I don't think that will happen, since the RX-8 has to get into many garages, carports, driveways, etc...as possible in order for Mazda to justify bringing back the RX-7 nameplate.

Will they be leasing cars right away or will there be a period of time where you can only buy...? I plan on buying, but I own my own side business so a lease could be practical. That way if an MPS RX-8 came out it'd be easier to trade up!

Originally posted by RotorMotor
Will they be leasing cars right away or will there be a period of time where you can only buy...? I plan on buying, but I own my own side business so a lease could be practical. That way if an MPS RX-8 came out it'd be easier to trade up! As soon as they get a residual cost on the vehicle they can lease it, at least that's my assumption.