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?