I have read a lot of threads of guys bad mouthing leasers of the the cobalt SS/SC, and I plan to change there mind especially Zinner. The reason it may be better to lease a car is that you are left with much lower monthly payments, and may leave u erextra money to mod ur car thats right UR car, just beacause ur the leasee and Gmac owns your car it really isnt any different from financing, if u right off ur financed car u still have to pay GM the remaining value the same as a lease, and you can always purchase at the end of a lease, its part of ur contract, they cannot refuse to sell the car to you



Aswell service, part, and sales manager assured me mods such as stage 2, exhaust, intake, and torque dampener would in no way affect my warranty.

I hope this post has helped anyone torn between leaseing and buying, and if u think leasing is just renting u have no clue.

 

^ Welcome to the site BCBalt SC.

Buying vs Leasing certainly has room for arguments on both sides. Not even Financial Advisors are on the same page when it comes to this.

I have studied accounting and finance. Generally speaking, the only time it may be worth leasing a car is when you want a new one every coupe of years. Otherwise, buying your vehicle is a better option. My .02 on the subject matter I have a degree in.

That’s not a very professional way of disagreeing with someone.

 

I wrote a 12 page paper in college over buying vs. leasing.


There are SO many options you have to consider when deciding. The biggest problem is the mileage constraints.

And, your comment towards modding a leased car IMO is pointless - but so is modding a financed car to a degree. You can argue both sides of it....


I'll have to try and dig up my paper.

 

if u plan on buying at the end of the lease it doesnt matter if u have 200k on it at the end there is no mileage restriction on it if ur going to buy it.

And it is much better for a younger person like me to lease cause it is a much more affordable monthly payment.

and as for prffesional asmin read some of zinners post replies he is downright rude to other members

 

I put 10K down so I small payments. I'll own it and be able to trade, sell or keep it. Most likely I'll keep it for a daily driver and buy a secret car in which I plan to rule the world.

 

want to keep it? buy it
want to play with it and then change cars in the future? lease it

 

You are right one advantage is a lower payment. If you plan on buying the car when the lease it up it would be cheaper to just buy it to start with, you are spending more money in financing fees. I am not against leasing cars, I am against leasing a car and planning to mod the car using the excuse you plan to buy out at the end of the lease. I never said it was impossible, I think it's a bad financial choice.

I dunno how to put this delicately, but if you think leasing and buying out the lease is a "good" idea thats one of the reasons you can't afford a bigger payment. You are giving away your money to financing a company that is counting on people making bad money decisions to increase there profit margin. If you can't afford the payment because you are young get a cheaper vehicle.

The only situation I would get a lease is:
1) Lower Payment
2) Keeping it stock
3) Drive low mileage
4) Want a new car ever X months
5) Guaranteed residual, so you don't lose money on a trade in.

As to mod's not affecting your warranty, the service manager doesn't have the final say on warrenty claims, GM does. The service manager might have some say or may be able to get the dealer to foot the repair bills but they can't guarantee any future warrenty claims.

 

I understand what ur saying but ive done the calculations, and in this case i am paying no more in fees then if i had financed the rate is 2.4% right now on lease or finance, so as long as i pay the buy back outright i am actually paying less in interest cause i am paying interest on a smaller amount, i am aware if i refinance the buy back i will get faked with higher interest rates, and as for warranty claims, i used to sell cars for many different companies and its the same story all around, if a mod is a direct reason for the warranty claim remove the mod before u go in. When I sold one of the first mustang GT'S in vancouver a guy chipped his car then faked it up, the service manager just told him to remove the tuning before repair...problem solved.

Plus I think if you are doing such mnior mods as exhaust, intake, ande stage 2 you will be fine especially if u use GMPP parts which are guranteed to not void warranty.

So in this particular cause i am no better off financing than to lease, and i have read my contract well enough to know other than the 2.4% lease interest there are no other lease specific fees.

The only way I could have gotten a better price would be to pay cash, and in my specific case I would have only saved like 500 dollars, cause i know my salesman and the dealer gave me my car for $1000 over which for any car is a good fakin deal considering to start there is almost $3000 in gross on a cobalt SS. So maybe people who have no knowledge of buying cars are getting ripped offf on leases. i know when i sold cars we would always try to keep all available rebates and programs on leases cause it is easier to confuse the purchaser with numbers on a lease.

 

mine is leased but i got screwed on my lease. 500$ a month. but i have some extras. more like 440$ a month before the extras.

btw BCbalt i want to say thank you for using fake instead of **** because it lets people who view these forums at work like me breathe a little easier.

I wish there was a profanity filter option.

 

Screw that.


Cheap Car =

 

i leased my G5 its for 4 years and 12k is what i can drive it a year. i am going to by the car back at the end of the lease because after this car im done with payments for a wile i hope lol.

 

Modding a car in a lot of cases is against the lease agreement. Maybe you should read that closer.

 

Unfortunatly GM has been voiding the warantee on cars with only GM Stage 2, so that still wouldn't be a safe route to go. Either way you get screwed if you mod the car, whether you pay full cash, take out a loan, or lease.

 

I know I leased my car and I am very happy with my moove.
1 Gives you the opertunity to let go of the car at the end, and even if i pay to get out, who cares really? F#$K if I get to bully a car like this for 4 years, i dont want it anyways
2 U can lease the performance parts, and I got my dealer to residualise the parts, so its perfect.
3 If GM says they dont want to give me warranty because of my GMPP S2, or mu GMPP catback, U know what, i dont own the car, so they can keep the car. Option you cant do when financing the car.

The bottom line is, when the purchase or finance have the same interest rate, go for the lease hands down. If they are different then its harder. But when you pay 2% for lease and purcahse was 2%. The question for me is easily answered. If i want the car at the end, I can find the 11000 CND grand.

 

I agree,

on another note, it was 2.4% to lease and 7% to finance... u figure it out,

and HackAbuse is right... no chick factor in a crappy car lol

besides, i pay more in insurance every month than my car payment,

430 insurance, 350 car

 

Leasing is a great alternative to financing, for some people.

One thing you have to keep in mind is the money up front you need when you lease a car. When you finance a car, you can get away with no money down if your credit is good. All the leases I've seen require money down.

Some of these things may be specific to IL.... They normally (I know there are "specials" sometimes) require first and last month payment, plus a security deposit. Then, you have to pay the sales tax on the entire sales price of the car, even though you're not "buying" it.

As someone mentioned, milage restrictions are OK until you pass the maximum. Then it's about 15˘ per mile. Doesn't sound like a lot at first, but just 1,000 miles over and that's another $150 you have to shell out at the end of the lease.

Plus, it's all based on residual value at the end of the lease. In the fall of 2004, who knew what a used 2005 Cobalt SS/SC would be worth today? Nobody. So they "guess" what it will be worth, subtract that amount from the purchase price, and that's what you pay for, plus taxes, title, license, security deposit, etc.

With the buy back option, it's a no-lose situation.

E.G., If you buy the car for $22,000 using a 3 yr lease, and three years later they forcast it to be worth $10,000, then your payments are based on $12,000 over 36 months with interest.

Now, if the forcast was wrong, and the car is really worth $5,000 after the lease is over, you made one hell of a good deal. You can drop off the keys and off you go to get another car.

If the car were worth $12,000 after the lease then you didn't make such a good deal. You paid for a $12,000 difference even though the real difference was only $10,000. But, you have the option to buy that $12,000 car for $10,000 then turn around and sell it the next day for $13,000 which is really the only way to get your money back, per say.

One thing people don't take into consideration when talking about the option to buy the car at the end of the lease; you have the option to buy it for the remaining balance, not what the car is "worth". And the forcast used is the wholesale value, not retail value. That's why you could actually make a little money, like in the above example.

Where it's really nice is when you buy a car that has a very high residual value, like a Cadillac, BMW, or a Corvette. Sometimes you can lease a Cadillac for about the same as if you were to finance a Cobalt because of the residual value.

AAMOF, with $3,000 down, I could lease a Cadillac CTS for ~$390/mo where a Cobalt SS/SC would cost me ~$330/mo with regular financing. Yea, it's $50 more a month, but we're talking a $22,000 car compared to a $43,000 car. To finance that same CTS, it would cost $810 for 60 months (5 yrs).

There's an old saying I heard a long time ago that seems to apply here.... If you want to be rich, do what rich people do.

 

Aj, you are somewhat incorrect but I agree with most of what you say. With a lease you pay the sales tax month to month not all at once. Also, a lot of times a lease may require first month and security deposit but most places will allow you to roll that into the lease payment.

I agree with you on the buy back options; That is what I love about my lease.

 

welcome to ontario lol 540 insurance 420 car.


I just bought out my lease because GM was screwing me over. It is hands down way better to buy the car or finance right off the bat. If you can manage the payments do it. In canada there is no clause where we can mod and it wont affect warrenty as long as it's not the cause....here, if you mod warrenty goes up your intake and out your exhaust lol. As well, if you ever want to take the car of the road for the winter (like me) then you cant do it on a lease. Lease agreement requires full insurance all the time.

my .02

 

My point was that YOU have to pay the sales tax on the car as if you were buying.

Besides, I said ..... Some of these things may be specific to IL

 

as already said, when leasing you pay the tax on a monthly basis

at your buy-back, you only pay the tax on the buy-back amount, not a penny more

for me it worked out cheaper by a few thousand to lease and buy back then to finance

 

i did the exact same thing Sr. brown did. Finished up today. Saved $2230

 

Either way if you lease or finance your vehicle you technically dont even own the car. The bank does! by the time your lease is done your not upside down at all. If you finance it with no money down chances are youre already upside down by the time it leaves the car lot.

 

good job buddy, funny how that worked huh? i couldnt figure out why but the numbers were there, and i did the calculations myself

 

U guys are getting screwed, iam paying 433 for my car and like 190 for insurance. You guys are getting screwed big time, and i find i pay to much right now. And GMPP S2 and GMPP catback and manifold, they cannot void any warranty becuz of that buddy. It says right on the GMPP website if you go look at it, thats everything is covered if you get it installed at a GM dealership!! So yeah, intake is starting to get scetchy, but whatever breaks has to be becuz or could be becuz of the aftermarker(NON GMPP) part you installed. Like they cant void ure sunroof warranty becuz of a smaller pulley kind of thing. I know that for a fact!

 

I leased my car only because i get sick of cars realy easily. I have a 4 year lease but if i want to give it back at 3 1/2 years i can get out of my lease and own nothing for that. i pay $360 a month now for my car which i dont really mind because i dont have to pay my car insurance because im a daddys girl and talked him into paying it still!! haha

but the only bad think about leasing a car all the time is that you will always have a car payment as to if you buy one and pay it off you can have that extra cash. so its weather you want to have car payments for ever or not