To lease or not to lease?

I went to look at some GTi's yesterday at my local dealers. Unfortunately didn't realise that they are closed on a sunday so just had to window shop. They had 9 on the lot in every colour except black.
I was just wondering what the best option to purchase is. The dealers have some good lease deals at the moment and as I change my cars quite often, I thought that this might be a good road to go down.
Do most of you guys lease or just buy?

TIA

I would buy my GTI cause I have serious modding-plans which you can't do with a lease car. I wouldn't lease a car. To my opinion you can better buy the car cause if you drive such a car for like 5 or 6 years you have probably paid as much money as the price of a new GTI at the dealers and still the car isn't fully yours

GTI2007 said:

I would buy my GTI cause I have serious modding-plans which you can't do with a lease car. I wouldn't lease a car. To my opinion you can better buy the car cause if you drive such a car for like 5 or 6 years you have probably paid as much money as the price of a new GTI at the dealers and still the car isn't fully yours

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My last car was a lease, not feeling the pride of ownership literally drove me mad. Also the mileage drove me insane as well, if I drove too much I felt nervous about going over the limit and losing money, if I drove too little I still felt nervous about not meeting the limit and losing money. Anyways, leasing is definitely not for me, I'm glad I tried it once but I'm done with it forever. I know it's tempting to switch cars without having to worry about anything in a couple of years, but think it through, make sure you will be happy with it, I wasn't.

It will be the first time that I have leased a car, I have always bought them outright in the past. One of the tempting things about the lease is the low monthly payments, but as you say, there are a lot more considerations involved.

Leasing can often mean a lower payment, nothing or little down on purchase, and a new car every three, four or five years depending on term. However, you have no equity and very little you can do if you want out.

Also, it depends on the situation. If you are driving more than 1000 miles per month, you are going to be going over on the lease mileage. As KharatosGTI stated, it is nearly impossible to not think about every single tick you put on the odometer.

For my next car, I have decided to purchase. I may even go with a 72 month loan over the traditional 60 month loan. One main thing I am considering is the value of my next car at the end of three years. Can I sell it for more than it is worth, or at least break even? Amortization schedules are important in this case, so that is why I have to avoid cars like the Mustang or Dodge SRT-4, because the car will depreciate faster than I am paying on a standard schedule. My choices are Honda or VW, and I am still up in the air, but I am certainly going to buy it.

Slowride said:

Leasing can often mean a lower payment, nothing or little down on purchase, and a new car every three, four or five years depending on term. However, you have no equity and very little you can do if you want out.

Also, it depends on the situation. If you are driving more than 1000 miles per month, you are going to be going over on the lease mileage. As KharatosGTI stated, it is nearly impossible to not think about every single tick you put on the odometer.

For my next car, I have decided to purchase. I may even go with a 72 month loan over the traditional 60 month loan. One main thing I am considering is the value of my next car at the end of three years. Can I sell it for more than it is worth, or at least break even? Amortization schedules are important in this case, so that is why I have to avoid cars like the Mustang or Dodge SRT-4, because the car will depreciate faster than I am paying on a standard schedule. My choices are Honda or VW, and I am still up in the air, but I am certainly going to buy it.

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Good thinking.

One thing though...the residual or even used value/depreciation of a Mustang over a VW?
The Mustang will take it by quite a bit for at least another year or two. Then, the Mustang will level off once they hit the dealers like cheesburgers at McD's. But, the VW will depreciate faster anyway. You know the used VW market is s-l-o-w.

But, with your 6 year plan, and if VW improves reliability perceptions, it could pay off in the end. I just get bored with having the same car after about 3 years, it's actually a bit earlier than that. But, I wouldn't lease a GTI either. It's not the car for it. Look to high residual brands like BMW, Audi, MB for leases that make sense.
GTI? Just buy the thing. Of course, one must realize that they don't own the car either until the loan is paid, pretty much like a lease. But, if you mod, loan purchase is the best option.

TT

I had an M3 for $452 per month.

I've only leased one vehicle in my lifetime ( 04 BMW M3 ) I got it off "swapalease.com" and I only had it for four months.
( Of that four months I was alowed 2,849 miles per month average, and it cost me about $1,900 dollars total. )
It was perfect, I enjoyed the car over one summer and gave it back. Although I've heard terrible stories about people having bad experiences on that site. You just have to be very careful that your not getting a beat up leased car. If you did you'd be stuck paying the added expenses. Fixing a scratch, dent, ding, or even a snag in the leather. Example... I got charged for not having the original tires in the rear. ( The client who had the vehicle up on swapalease.com enjoyed burring the tires a little too much. ) Looks like he killed a few sets in the short amount of time he had the auto. Overall it was something I overlooked and had to pay for. Leasing can be fine if you have no problem with the mileage requirements, and don't want to modify the car. Also sure.. It can be fun if you like the idea of getting a new vehicle every three years without having to trade/sell.

Just make sure you read all the fine print.

You might like swapalease.com if you'd enjoy getting in and out of a new car more often.

P.S. NO! I don't own, work, or have stock in swapalease.com.

From what I understand leasing the new MKV at this point won't save you much in the way of monthly payments. I saw over on vortex someone ran the numbers and it came out to maybe $20 cheaper IIRC.

Some good points raised there that I had not yet thought about. Thanks guys.

My other main interest in leasing is that I have recently moved to the US from the UK on a working visa, and if I decided to go back in the next three years it will be one less headache knowing that I could just hand the keys back rather than having to sell privately.

Anyway, I will be off for a test drive this weekend and then hopefully.......

Wait what?, Wouldn't it be half of the full cost of the vehicle? If the price to buy is 23,000 your 48 month payment would be $541 with zero down. So wouldn't 11,500 for the 36 month lease with zero down be $319 per month? I just don't get some of the math work posted above. A leased GTI would come out to allot less than a $20 difference.

My last car was a lease...

check out my mods here:

http://www.parts4vws.com/registry/registry_detail.asp?MemberCarID=7637

Just be prepared to return the car back to stock to turn it in at the end of the lease...or purchase it (what I did) and either pay it off or sell it outright (what I did).

Also when you are modding a car be prepared to have your warranty voided if you start making real horsepower and breaking expensive parts...you will be paying for repairs out of pocket. Luckily I never had to replace anything other than a bunch of MAF meters, Clutch and one inner CV in 24,000 Stage 3 miles.

Slow ride- I actually did this w/ my 02 MKIV and didn't make out to bad. Did a trade in with 75,000 miles after 3 years and 11 months of ownership/delivery. KBB was $8500, I owed $7500 and the dealer gave me $7500 for it. Selling it private party would have put some cash in my pocket, I was just impatient and kind of in a squeeze. Pick up the MKV tomm after work.:smile:

Slowride said:

Leasing can often mean a lower payment, nothing or little down on purchase, and a new car every three, four or five years depending on term. However, you have no equity and very little you can do if you want out.

Also, it depends on the situation. If you are driving more than 1000 miles per month, you are going to be going over on the lease mileage. As KharatosGTI stated, it is nearly impossible to not think about every single tick you put on the odometer.

For my next car, I have decided to purchase. I may even go with a 72 month loan over the traditional 60 month loan. One main thing I am considering is the value of my next car at the end of three years. Can I sell it for more than it is worth, or at least break even? Amortization schedules are important in this case, so that is why I have to avoid cars like the Mustang or Dodge SRT-4, because the car will depreciate faster than I am paying on a standard schedule. My choices are Honda or VW, and I am still up in the air, but I am certainly going to buy it.

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When I sold cars my rule of thumb that would cause me to push a lease was if it was $100 less a month on a 36mo lease vs a 60mo buy. Right now, leases have been very attractive. You can always build the extra miles in upfront. A five year buy on $21000 is anywhere between 380-420 a month depending on credit. If a lease was $250-275 with no large money due at inception, I'd consider it.

Another thing to keep in mind being that you are on a work visa, is that most lease contracts force you to pay a pretty hefty fine for ending your lease early. If you think you MIGHT leave before the lease is up that is something to figure in. At least if you buy it you can avoid that arbitrary fine, although you may owe more than your car is worth at three years by buying it.

VW have something called a Foreign Professional Purchase Plan where they tailor the lease to the length of your visa stay. It is something I am investigating at the moment and may be the best option for someone in my position.