alextaylor29

Hi all, question for you. I love the CTS-V but the car payments may be higher than I prefer. Anyone here leasing one?

I've never leased a car and frankly prefer owning one. But with a $45K starting point a lease isn't completely unattractive for this vehicle.

Thoughts, advice welcome. Just curious, what would leasing payments be on a 2004 CTS-V?

Thanks in advance.

zooyork

We only lease cars, owning them is, frankly, a pain in the ***. At the end of your lease you simply turn over your keys and you have no headaches. You dont need to deal with the stresses of finding a buyer, etc.

We leased our 2004 V for 4 years/ 15,000 miles, I believe our lease payments are somewhere around $800/mo. We felt leasing the V was a good idea because it was first year production, and we were concerned that if it did, in fact, have the 'first year blues' -- lots of problems, recalls, etc-- we would be able to hand it over and not worry about explaining those problems to the next buyer.

So far the car has been great. Some minor problems, but what car doesnt have its fair share of problems.

alextaylor29

Thanks for the input.

98Z28MASS

iTrader: (6)

I agree with zooyork. If you are not looking to heavily modify, or modify the cts-v period, then leasing is the way to go. Aslo, if you always find yourself wanting the newest car out on the market, then def. lease because after a few years you can get the new car you want and not have to worry about selling/trading in the car, or having to pay off your car payments in one lump sum. Definately get the cts-v, I havent had a chance to dirve one yet but they are absolutely gorgeous sports cars. Good luck!

1LEZ28

So expensive that you probably don't even want to think about it, unless, of course, you're wealthy.

Wait a couple of years (or less) and you'll see used ones showing up. You should be able to BUY one for ~ $30K.

2k2blkss

Yes it's true that you can just turn the car in and walk away when the lease is up but you never have anything to show for your payments. It's just like leasing an apartment vs buying a house. Think about it this way, You are paying about $800/month for 48 months thats about $38,500 (give or take). You are giving someone 38,500 dollars to borrow their car, because at the end of your lease you give them back their car, they keep all your money (not to mention any few dollars more for a door ding, scratched paint etc...), then they sell the car to someone else and they make almost double the profit on the same car. Now if you bought the car say at like 5.9% over 60 months your payments would be like $930/month thats $55,800 give or take with interest. If you decided to sell it yourself in 4 years (same time as the lease turn it) you would be out of pocket approx 44,600. Lets say you could sell the car for (worst case) 25,000 and say your payoff is approx 9,000. So you just pocketed 16,000. Subtract that 16,000 from your 44,600 that you payed and your only out 28,600. You are about 10,000 better off than you were by leasing it.
True you don't have as many headaches with leasing, and you taking more of a gamble with buying BUT look at your return. 16,000 that you could be using toward the purchase of a new car, now your payments will be even less than if you go to lease another new car in the same time frame.
Just something to think about.

zooyork

The situation you described MAY happen, but will it? Looking strictly at opportunity costs, the time I would need to invest writing ads, searching out new buyers, dealing with the multitudes of people you can expect that will want to test drive a V but will never buy it-- that $10,000 quickly diminishes in value. I'll choose leasing any day.
BUT, leasing isnt for everyone.

alextaylor29

Thanks guys, great feedback all around, much appreciated.

Closer_2001

iTrader: (6)

GM is offering a lease special on the 05s

www.gmbuypower.com

4.5% APR

wright4lfe

ok, unless you can write off the car as a business expense, not one financial advisor will recommend you lease a car or buy a car brand new. i've seen cts-v's in the autotrader and on online for anywhere from 35000-45000 with only a few thousand miles on them. what sense does it make to walk into a show room and drop that kinda cash on a new car or even worse, lease a car for 700-1000$ a month with absolutely NOTHING to show for it when the lease is up.

and selling a used car is pretty easy if you aren't an idiot about it. if you take the time to screen calls you can weed out the lookers real quick. i've sold porsches, vettes, old custom cars, etc and never once had the problem of dealing with people out for just a drive. why? probably because i won't even let them get in the car unless they show me that they have the cash/check on hand to buy the car. sounds a little ****, but it weeds out idiots real quick. as far as making the ad, if you are too lazy to write a 4 or 5 sentence paragraph about your car to sell it, you got problems. i've never lost money on a car deal and only lease an suv cause i write it off, basically not losing a cent on it.

but if you want to throw away 25k-40k, then go sign a lease tomorrow. hell, forget buying a cts-v, just go all out and lease a nice benzo or beamer and be like everyone else living outside their financial means.

willis 00

could not have been better said!

Closer_2001

iTrader: (6)

Ok - Let me be the counterpoint here and speak from personal experience.

You have to lease the right car at the right time. The lease described above it not a good move. I agree. Here is an alternative.

2000 Tahoe Limited (Old Body)
Special GMAC Smart Buy
MSRP 36700
Selling Price 28100
Residual: 23250, 30 Months, 18k miles/year
Payment, 0 Cash. taxes, title rolled in = $454

We drove the truck for 26 months and GM offered a special program, wherein they would make the remaining payments. The truck acutally was already over by 800 miles, so it made total sense and helped us avoid an over mileage penalty.

We spent $11,804 to drive the truck for 26 months.

At the end of the Smart Buy, it was only worth about $18k trade in.

If we had purchased the car, we would have got about 8% on 60 months, w/ tax, payment = $588, 0r about $15000 in payments.

After 26 months we have owed $17800 on the truck. Or about break even.

So, for my extra $4000 "Investment" in that fine Tahoe, I would have just about broken even.

I saved about $4-00 and let GM take the depreciation and responsibility market conditions.

Assumptions:

After 26 months and 45k miles, I was done with the truck

I knew going in, that the truck I was buying for $28k would not be worth $23+ after 2.5 yrs.

GM did this to move this truck and for my purpose, it worked great.

This is when leasing/smart buys make sense.

If you want a CTS-V, get a used one in Jan. Get one with low miles, take advantage of the winter value depression and go with the highest residual.

I'm about ready to do this again on an 04 GTO while I wait for my 07 Z06.

cz2898

there is a reason that if you lease a car the payments are cheaper than if you buy it, the DEALER gets the car back and all you have are the memories.

The Professor

iTrader: (3)

i agree with closer, leasing and buying have their pros and cons but it ALWAYS depends on the specific car. $800/mo for 4 years? any way you justify it, it's still a $38k rental bill. and i think a few headaches in exchange for 10k is an even deal.

the comparision between owning a home and a car is not the same, though. homes appreciate and cars depreciate (for the most part).

zooyork

Actually, in most cases-- if not all-- the lease company gets the car back, not the dealer.

Closer_2001

iTrader: (6)

I don't to beat this to death, but you are missing my point.

I didn't want the Tahoe any more

Had I bought it at a good rate at the time, I would have spent $4000 more in payments.

The depreciation on the truck was more than the lease company expected.

Therefore, I made $4000 less in payments and was able to walk away.

If I had bought it, I would not have had that option and would have made the $4000 in payments with nothing in return.

This doesn't usually happen, but it can and you can take advantage of the situation.

lil2liter

I completly agree with Closer 2001. I'm about to do a smart buy on a 2004 GTO for three years. The price is right at $330 a month with 1090 down 35 months. I have no intention of buying the car. This way it gets me in a nice car for the price of an average car. I get bored with my cars after about 30 months. Then the last six months of my lease or smart buy is for research on my new car. The hunt for a new car is incredible fun. Although the smart buy has one big pitfall you must pay for all the tax if you keep the car or turn it back in (Thats right the 27,000 selling price times .06% which is $1620 is divided by 35 and added to your monthly payment so if ya don't buy the car at the end you end up paying like 16% tax). A lease you only pay taxes on the differnece of the selling price and the residual.

ahahnu

Why don't you do a smart buy?

TNT V

I always buy my cars. That way after 6 months if I am sick of things like axle hop and the tires being consumed like pencil erasers, I can get out of the car. Under a lease you are stuck for the term. I like to control the options rather than GMAC.

Closer_2001

iTrader: (6)

Funny - I just hooked up on a GTO myself!! 04, MN6, 24 month Smart Buy, $356/month - NOTHING DOWN, TAXES Rolled in. Call Matt Cross at Dave Cross Motors in Lees Summitt, MO. They gave me a great deal. I did use some GM points to get that deal.

Two Clarifications:

1. A Smart Buy is simple interest so you can get out early. In 6 months you will not have paid much toward principle, but it is not an issue of penalties or finance charges.

2. TX charges sales tax on the whole amount, no difference with Lease, purchase or smart buy.

FYI: On the GTO, the rate is 3.5% lease and 4.5% Smart Buy.