Loan or Lease?

[Danny Ocean]

I hope this is the correct forum for this question, and if not, my apologies. I'm a "newbie" around here...

A few years ago I purchased an older Stingray Convertible using a loan from People's First (now Capital One). The deal was no money down and 4.5% for five years. This was a no-brainer as the vehicle has appreciated more than 4.5% annually over the last three years and it appears it will continue to do so. I anticipate the vehicle's appreciation will "zero out" the finance charge in the end.

I would like to purchase a used Viper ('97 ~ '99 GTS) for a second car and am wondering if the aforementioned math will work with this vehicle. It seems that clean, low-mileage GTS's are holding their value, if not depreciating very little.

My other option is a lease. After three years, if the vehicle has appreciated, buying it back would make sense. If the vehicle has depreciated, I just walk away.

Any/all opinions are welcome.


Very Best regards,

Danny Ocean
Miami, FLA

 

[DodgeViper01]

Danny, personally I would not buy the car thinking it is going to go up in value because mostly likely it won't. Prices on 97-99 GTS are at good points right now and they are not going to loose much more value over the next few years.

It also depends on the deal you get. If you are paying $50K + then you might loose a little bit over a few years. No one can foresee the market to the exact tee in three years but going with trends, the car is going to loose value and not gain.

 

[Danny Ocean]

Thanks for the input.

I'm not purchasing the car for speculative value, I'm purchasing to drive it! I purchased my Vette for the same reason and the appreciation was an added bonus.

Was just wondering out loud as to financing strategy.

Thanks again,

D. Ocean
Miami, FLA

 

[DodgeViper01]

No prob. I totally understand. Get it to drive it and have fun. There are good values out there on leases. I have just seen a few:

$499 for 36 Months
$4,000 Down
12K Miles A Year or 15K (Can't Remember)
2001 RT/10 in Yellow with 10K miles or so

$579 for 30 Months
$3,000 Down I believe
12K Miles or 15K A Year (Can't Remember Again)
2001 or 2002 RT/10 in Red with 15K?? miles

There are deals, just have to look for them.

 

[V10 MOJO]

sometimes leasing is a good way to go, it would all depend upon your usage of the vehicle and the setup of the lease itself. if its best for you and your future plans for the car itself then do it.

 

[Hypntzd]

I lease my daily drivers through my business, because it makes sense. I would not recommend leasing a viper. Why would you when you can get up to a 6 year loan with a low interest rate and no $$ down? When you buy the viper you can always sell it, if you lease you are stuck for the term of the lease, and at the end you still don't own anything.