Lease for C6

Im looking at leasing a 2006 c6 thats brand new from dealer. Lets say i got it for 50,000. and leased for 2-3 years. Aprrox how much would my monthly payments be?

Thanks in advance,

Chris

About $1000-$1100, I'd think. I always lease one car for business/tax purposes.
Here are some past lease numbers:
$49,000 for 5 years, $940
$57,000 for 4 years: $897,
$77,000 for 4 years, $1350
The last two were European cars that depreciate a bit slower and thus have a hgiher residual (that makes a difference) the top one was an 02 vette.

Im alittle confused. wouldnt a 2-3 year loan be alittle cheaper. The guy at the dealership told us awhile back for a 06 c6 for 52,000 if we straight up bought it would be 8-900. Now i figured lease would be about half that 4-500? any ideas?

Somebody isn't doing his math.

Begin by realizing that if you lease a car, you are in a dilemma if you want to modify or personalize it: the car really isn't yours and at the end of the lease you either have to come up with the final payment to buy it (the residual) or take the custom parts off, or just give them up (if the lease company will even take it back that way).

Approximate the cost this way: forget the interest for a moment.

Buying the car, let's say its a $52,000 car and has $3.5K in taxes (6%), delivery and prep and dealer added stuff on top of it, and you put $5.5K down and finance $50,000 for 60 months, without interest you would have to repay $833 of principal per month. Say the interest is 8% ==>> 8% of 50,000 is $4000/year, but of course the interest drops as you pay off the car, so assume half of that, $4000/12months/2=$180 mo.. so add that to the $833 and you have something close to $1000. Your $800-$900 is probably assuming a larger down payment (salesmen usually estimate payments on the fly based on assuming 20-25% down).

Leasing for 3 years, assume the same car with the same costs, only you don't pay the tax up front on a lease so the dealer delivery and charges would be only about $5000. Assume you put $2000 down. The monthly depends on the residual target value:::say 55% (let's say about $29000), so you have to pay $52000-2000down-29000residulal = $22000 over the 3 years, or $611 per month. Then you need to add sales tax (6%) or $36/mo, for a total of $647, before interest. Again assume 8% interest rate, but realize this time it won't be decreasing to zero by the end of your lease -- in fact it won't even decrease to half, because you are still carrying $29K (55%) of car, so figure the average this time is not half the $360 above ($180/mo.) but 2/3, or $240 mo.. Add that to the $647 and you get right below $900 for a 36 month lease, if you can get 8% and if you put $2k down and if there are no additonal fees. If the dealer gives you a better residual (say 60%) then your payments will be lower (and he might, on a 'vette).

I generally pay a bit more than this in lease payments (see my #s in the first post), for the following reasons:
First, for business (tax deduction) reasons I never put any money down (I drove my Porsche, at $77K, home with not a dollar payment at the dealer),
second, I often negotiate a slightly residual target value than the dealer offers (they are always pleased to do this) which increases the pyament but lower the price to buy the car at the end
and I lease a car with all maintenance and service pre-paid.
These three things I do for tax and business purposes.
Then, I buy a long-term warranty (I will never use it since I only keep the car the length of the lease, but I always buy the car at the end of the lease and either give it to one of my kids or sell it: either way the warranty is useful (makes it much easier to sell) and, of course, if cost me nothing personally.

Ok explain to me why leasing is a good thing then? when buying is cheaper and you actually own the car?????

Generally leasing DOES have lower payments, by about 20% or more, but realize you don't get to keep the car are the end. Lease are also shorter- you have to pay $1000 for 60 months in the example above but for only 36 months on the lease. Some people prefer this (me). You always lease a car for 2-3 years and you so you are always driving a nearly new car. (I buy my cars when they come off lease for cash but that is another story/other business or personal reasons, but I don't keep them).

I work out slightly higher rates that the lowest I could get, for the tax reason below. Note in the example I gave for the vette, it was $1000 to buy with $5.5K down and $900 to lease with only $2K down. The residual would probably be a bit higher than in my calcualtion so the actual lease in the example might be about 850$ - a significant difference for someone who really wanted the car but could not afford $1000.

Why are leases preferred by many people? Well, first on the list overall is that they have lower payments.
But beyond that, when you lease a vehicle for business, you can deduct the lease payment as a business expense (if you or your account set up things right). In my tax bracket, that means the government pays 34% of the lease payment. If I buy the car, I can take only the standard government decution allowed on ownership and that is only about half as much. If I load up the lease with maintenance and long term warranty I am still getting that 34% tax break on it, and it is completely legal.

ok next question.....To acheive that monthly payment of 400-500/month Could i do this with a 35,000 lease for a 03 z06?

I'm not sure. You can probably work out something. But leases on anything but a new model are often problamatical. I'd think you'd be able to buy an 02 or 03 ZO^ for about $500 a month over 60 months, with something down.

Bought mine out right 6 weeks ago, financed 3 yrs, no down pmt = $1,800 mo. It's a C6 06 loaded convertible.

Yeah, that sounds about right. Expensive puppies, aren't they?

quote:

ORIGINAL: Flyr3465

Ok explain to me why leasing is a good thing then? when buying is cheaper and you actually own the car?????

without getting into specifics of an exact vehicle, leasing is generally better for most people for a few reasons, some of which lee already pointed out.

in southern california, the average length of time that someone keeps a car is about 3 years. when you finance a new car and go to trade it in after 3 years, you will be upside down (most likely, but not always) and will have to deal with that negative equity in some way (money out of your pocket, rolling it over into the new loan, rebates, etc.). now, when you go for another 3 years and want another new car, you will not only have the negative equity from the car you're trading in, but also from your first car because that was rolled into the new car. so now you're stuck with a car that has 2 other cars buried in it

leasing takes care of this problem because if you turn in your lease after 3 years (assuming you have a 3 year lease), no matter how much negative equity the car has, you are not responsible for it. now you can get into another new car without having to worry about your previous car. some people say that "you never own the car" on a lease. not true. you will have the option of buying the lease out in the end, just like a purchase. the difference between a lease and a buy is leasing gives you options (turn it in, sell it for profit, buy it out) buying gives you one obligation (a 60 month contract that you can't get out of). so if you're the type of person that will keep his car for years and years, leasing will probably not be for you. but if you're like most of the people in this country, and desire a new car every 3 or 4 years, leasing will save you so much money.

quote:

ORIGINAL: Flyr3465

ok next question.....To acheive that monthly payment of 400-500/month Could i do this with a 35,000 lease for a 03 z06?

if you can find a lending institution (bank) that will lease a 3 year old car for a good rate, go for it. the problem is that most banks don't like to lease out used cars, so the rates they offer are usually very bad. you would probably be better off financing a used car and leasing a new one. and to get a $50k+ car for $500 a month, when gm isn't helping you out with great rates, will mean putting up a substantial down payment.

a 50k lease should be in the low 800 range for 48 mos. with about 1300 drives. A purchase for 72mos will be in the mid 9's depending on rates with the same down
Matt

In terms of a Corvette I can't understand wanting a 4 year lease...a vette is like money in the bank, after all those thousands in payments I want to own it!

I guess you have to realize that some people treat Vettes like anyother car, after driving it for 3 or 4 years they are tried of it and want the newest toy on the shelf. If that is the case than the lease have the ability to save you money and aggravation in most cases.

I know everyone loves their 'vettes (me included) but in my view all cars are just cars. I'd just buy it the way you want it - short orlong term, and assume that one day it will be worn out and not nearly as appealing as newer models, because this nearly always happens, in all but very rare cases. If you want to keep it forever (as I do my 'vette) you will find a way to afford it, even if it was originally on a short-term lease.
I would never recommend assuming that the car you are buying will be a classic or appreciate in value - even the new ZO6 will not (there will be faster, more powerful ZO6s down the road -- I have confidence the GM there).
The cars that truly appreciate in value are either expensive when new (everyone knew the Mercedes 300 Gullwing was a classc from day one, but it cost about four times what a Cadillac did from day one, too), or if not exotic and expensive then very hard to predict if they will become a classic (in 1970 no one thought a convertible Plymouth Barracuda Hemi was particularly grear or desireable -- that's why so few were sold and why they as so rare today that the best go for $3 million).

>I know everyone loves their 'vettes (me included) but in my view all cars are just cars.

That is 100% correct. To "us" car lovers we get more involved, but, to most people cars are just a transport mechanism.

All "brand new" cars depreciate at a rapid rate, whether you lease or buy a new car you will pay for the depreciation on a brand new car.....only eased by owning it a long time.

I never lease, I can't right off the payments against income tax, I always pay cash, never finance, and never sell until the cost of maintenance outweighs the current value of the car. Simply put, pay cash, and drive it 'till the wheels fall off!! That is simply the cheapest way to enjoy a nice ride :)