Alfa Romeo Owners Advice

[rr-nyc]

If you're buying, dump it before the warranty ends. Personally, I'd never own a car that isn't under the manufacturers warranty and includes all service.

[GB-man]

Originally Posted by keithl

This part is very true. However: Leasing is the most expensive way to operate a vehicle, period.

No deanship is going to offer you a residual money factor that isn't heavily in their favor.

That's simply not true. The residual is set by the manufacturer not the dealer. Residuals are often inflated by the manufacturer plain and simple. bmw has been doing it for years although they are starting to take their foot off the gas. A dealer cannot change a residual.

MF is also set by the manufacturer (really the bank but most big names have in house financial arms) but dealers CAN mark up a MF.

In some cases you're correct, the MF will be like .002 (4.8%) and the residual will be realistic aka 50-55%. Those cars will lease like crap.

Other cars will have a MF of .0001 and a residual of 60% or more.

Leasing a car takes a lot more effort to find a good deal. It's not ideal for the average joe who walks in and negotiates monthly payment.

[towernick]

Originally Posted by GB-man

Leasing a car takes a lot more effort to find a good deal. It's not ideal for the average joe who walks in and negotiates monthly payment.

Can you please go into more detail on this point? I'm genuinely interested.

[keithl]

Originally Posted by towernick

Can you please go into more detail on this point? I'm genuinely interested.

I used to sell cars, and finances are sort of a hobby of mine. Leasing a car makes no financial sense, for an individual. There really isn't any debating that. If that's the only way you can afford the car you have to have ok, but that doesn't mean you should do it. It's true that there are plenty of ways of buying a car that make no financial sense also (high interest, long terms, more car than you can afford, trading in a car you're upside-down in) but there is no such thing as a good lease deal.

You're renting a car that you have to maintain like you own it, and you get charged for excessive wear and tear, miles, etc. When the lease if over you have nothing. And if you want to buy it (which almost no one does) you'll have to pay more than market value for it (that's what is negotiated up front and it's always in the dealers favor).

People get into auto leases because they think it's easy, want to change cars every two years or because that's the only way the can afford the car but it's not a good financial strategy. Car salesmen sell/lease the car based on the payment, but smart consumers buy based on price.

If you're a multimillionaire it doesn't matter go ahead and lease, if you want to be one, don't lease a car.

[GB-man]

Originally Posted by towernick

Can you please go into more detail on this point? I'm genuinely interested.

Here's the rub. There has to be a reason you want to lease. Common reasons are as follows

1) running it through a business

2) You plan to get a new vehicle every 3 years regardless

3) You have other means of investing the capital for higher returns.

Last time I started preaching about lease deals on here I was harassed so I won't get too detailed.

I'll say this. Do some research. Know the lease calculation or get the leasematik app or similar. Find the numbers via Edmunds forums. Do the math yourself.

Email dealers within a 500 mile radius for the car you want towards the end of the month. Start with those already advertising low prices on autotrader etc make sure any factory discounts or incentives are applied after you negotiate price above invoice.

Some cars lease well (BMW, Toyota) some lease okay (MB) some lease horrible (Audi, Range Rover). Really depends on the model.

I only buy cars that are Japanese. Everything else I lease. If you aren't comfortable driving it to 100k then someone else won't want to either when you go to sell.

Cars are a depreciating asset. Rapidly depreciating in most cases. You're not a fool for not wanting to tie up your money in a rapidly depreciating asset when you could be investing it elsewhere. Some people treat cars like they're real estate, they aren't!

[Abdullah71601]

Thanks guys. Good advice.

Originally Posted by keithl

I used to sell cars, and finances are sort of a hobby of mine. Leasing a car makes no financial sense, for an individual. There really isn't any debating that. If that's the only way you can afford the car you have to have ok, but that doesn't mean you should do it. It's true that there are plenty of ways of buying a car that make no financial sense also (high interest, long terms, more car than you can afford, trading in a car you're upside-down in) but there is no such thing as a good lease deal.

You're renting a car that you have to maintain like you own it, and you get charged for excessive wear and tear, miles, etc. When the lease if over you have nothing. And if you want to buy it (which almost no one does) you'll have to pay more than market value for it (that's what is negotiated up front and it's always in the dealers favor).

People get into auto leases because they think it's easy, want to change cars every two years or because that's the only way the can afford the car but it's not a good financial strategy. Car salesmen sell/lease the car based on the payment, but smart consumers buy based on price.

If you're a multimillionaire it doesn't matter go ahead and lease, if you want to be one, don't lease a car.

Originally Posted by GB-man

Here's the rub. There has to be a reason you want to lease. Common reasons are as follows

1) running it through a business

2) You plan to get a new vehicle every 3 years regardless

3) You have other means of investing the capital for higher returns.

Last time I started preaching about lease deals on here I was harassed so I won't get too detailed.

I'll say this. Do some research. Know the lease calculation or get the leasematik app or similar. Find the numbers via Edmunds forums. Do the math yourself.

Email dealers within a 500 mile radius for the car you want towards the end of the month. Start with those already advertising low prices on autotrader etc make sure any factory discounts or incentives are applied after you negotiate price above invoice.

Some cars lease well (BMW, Toyota) some lease okay (MB) some lease horrible (Audi, Range Rover). Really depends on the model.

I only buy cars that are Japanese. Everything else I lease. If you aren't comfortable driving it to 100k then someone else won't want to either when you go to sell.

Cars are a depreciating asset. Rapidly depreciating in most cases. You're not a fool for not wanting to tie up your money in a rapidly depreciating asset when you could be investing it elsewhere. Some people treat cars like they're real estate, they aren't!

[Chewbacca]

just a follow up... i'm talking about a CLOSED END lease being the best way to make a new car purchase, not an OPEN END lease. avoid open leases like Invicta's

i think most of the hard & fast NO to lease comments are a result of simply having a bad lease agreement in the past -- likely an OPEN one from a buy here pay here place.

[joli160]

Lovely drivers car, but I like one which always starts, without unexplainable rattles, reliable electrics, neatly organised wiring and very well protected against corrosion.

[amg55]

Originally Posted by joli160

Lovely drivers car, but I like one which always starts, without unexplainable rattles, reliable electrics, neatly organised wiring and very well protected against corrosion.

You're obviously not talking about Alfas ;)