My friend is thinking of buying a tC (im getting mines around spring). His car is giving him a lot of problems right now and he needs a new car asap. Unfurtunaly all he can put as a dp right now is $2000. He was thinking for leasing the car for 4 years and during those for years save up whatever is left on the price and pay it off.

He was wondering wheather scion's leasing program has an option to buy?

The leasing shouldn't be more than $250 a month and in four years he would have payed $12,000. He is hoping that in those four years he can save up the remaining $6,000.00 and pay off the car. When he told me this it sounded kinda good, a little too good so i was wondering what you guys think?

 

This would cost more in the long-run.

If he can afford the payment, buy/don't lease.

I understand, sometimes you can't afford the monthly bill.

 

I would think all leases have the option to buy at the end. I'm sure the dealer or finance company would love for you to buy it after you've already rented it for so long. :D

 

How much more do you think that this would cost in the end?

 

it would cost a lot more if your friend were to lease it for 4 years and then buy it. you gotta figure he will be paying $280 is per month for 48 months. thats $13440 after 4 years. then, to buy it he would have to pay the buyout price which should probably be around $8000. so he would have to finance $8000 on top of the $13440 he already paid. without finance charges it comes out to $21440. way to much money for a $17000 car. he should just pay the extra few bucks a month and buy it right away. with the $2000 grand down the payment should be that bad.

 

How is your friends credit? I am financing and I down payed $2500 and my monthly payments are $313/month. But I am in the top credit rating. So my numbers are not much higher than yours estimated for a lease.

If your friend has good credit, buy the tC. Its a no brainer. Oh and keep in mind I have options installed which raised my montly payments by $20/month.

If your friend is buying stock with no options and has good credit, the montly payment should be around $293.

DEFINITELY BUY!

 

Well, we called a dealer and found out that leasing the car would cost him $200 (w/ $2000 as a downpayment) the finance and leasing manager was cool. In 48 months he would have payed $9,600 (assuming is $200/mo)so that leaves about $7,000.00 . He's certain that he can come up with the $7,000.00 in 4 years and just pay off the car at the end of the lease.

I did tell him what you guys said on this site, but it seems like he might be going w/ the lease because since he's only 20 the insurance might be kind of expensive and he can use the extra $100 a month.

Well, ill let you know if he gets it. (i cant believe that he's getting it before me when i was the one who told him about the car )

 

The residual value payoff will be more than that. It will be more around $10-12K. The lease is only a good idea if he knows he wants to get another car every 2-5 years.

 

Correct, thats why I aways buy. Car payments for 3-4 years. No car payments 5-7 years. Some people (usually entry level jobs) can't afford payments for buying, so they lease. This tends to get you in deeper car after car. I've never leased.

Some rich people that get new cars every other year lease too.

 

well my friend just pust his deposit on the tC. He is financing for 60 months and he'll be paying $308 a month.

thanks to all of you who replyed.

 

yeah i leased my tC.. that way i don't have to worry about trying to sell it in three years.. and if i want.. i can buy it outright.. the cost is about $8300.. i don't put that many miles on a car, so a lease works for me..

 

well, if he's planning on buying the car, leasing is always a bad idea. i guess saving the 100 a month will help him. but, as long as he realizes that he will be paying more in the end. just remember leasing was made for rich people, buying expensive cars. not for people with little money buying inexpensive cars.

oh, and where are you location wise? because here in cali, you're adding tax and dmv fees in to that payment, which is another $30 or so.