Will anyone lease the Elise? - Page 2 - LotusTalk - The Lotus Cars Community
Reply
 
LinkBack Thread Tools Display Modes
post #21 of 39 (permalink) Old 03-19-2004, 01:51 PM
Registered User
 
ROCKCENTER's Avatar
 
Join Date: Feb 2004
Location: NYC / Newport Beach, Ca.
Posts: 212
sorry to do this on a Friday, but...

AGHHHHHHHHHHHHHHHHHHHHHHHH...

ROCKCENTER is offline  
Sponsored Links
Advertisement
 
post #22 of 39 (permalink) Old 03-19-2004, 01:55 PM
 
Join Date: Nov 2003
Posts: 1,000
Lillie,

The effective interest rate is based upon the money factor that is quoted to you for the lease. Here's a website that will help you to calculate the 'effective interest rate' of a lease:

Lease Interest Rate Calculator

In order to write-off a lease, you probably should own your own company. If you do have your own company, you're probably better off buying the car, then "leasing the car to your company" for 3 years at an inflated lease rate. This will allow you to write-off the lease payments your company pays you as a cost to the company. (e.g. Your monthly payments are $700 on a loan, but you lease it to your company for $1,500 a month. Your company writes off this payment and receives about $500 tax credit.)

I really would encourage you not to lease. If you intend to purchase the car at the end, then you'll be double-charging yourself in interest. (Lease interest + purchase interest) I would just purchase the car either via loan or home equity line. The beauty of a home equity line of credit is that you can write off the interest expense from this money that you've borrowed.

The reason that a lease doesn't work "financially" for a car you intend to keep is that you'll end-up spending more money on the lease payments and buying it in the end than you would if you had bought it to begin with. Every dollar that you save in a lease payment now will cost you in terms of higher principle amount later. If you only plan to keep the car for 2 years (3 years MAX, never go beyond 36 months) and are willing to walk away from it with no attachments, then maybe leasing might work. If you plan on selling the car at the end of the lease period and it's a high demand car where you're sure your residual value will be lower than market value, then it may work out. If you're not willing to take that gamble, don't lease.

Hope that helps!

Bob
rtking is offline  
post #23 of 39 (permalink) Old 03-19-2004, 01:58 PM Thread Starter
Registered User
 
Modern Wedgie's Avatar
 
Join Date: Mar 2003
Location: Geneva, Switzerland
Posts: 2,744
Thumbs up

Cheers!

Long live the
Modern Wedgie is offline  
 
post #24 of 39 (permalink) Old 03-19-2004, 01:59 PM
 
Join Date: Nov 2003
Posts: 1,000
Yes, leasing can be available from secondary sources

Amazon Leasing is where I leased my old '82 Ferrari 308 GTSi from. They were in Canoga Park area before, but I think they've moved to Westlake Village. I'm almost certain that they can arrange leasing on the Elise for you.

Bob
rtking is offline  
post #25 of 39 (permalink) Old 03-19-2004, 02:05 PM
Registered User
 
Allan Gibbs's Avatar
 
Join Date: Aug 2003
Location: Back in Gilbert, AZ(formerly Montrose, CA)
Posts: 7,610
Garage
Re: Yes, leasing can be available from secondary sources

I think I mentioned this before, but I will be leasing from a secondary company IF the dealer's leasing program is not competitive. At the very least, having a secondary company adds a bit of competition to the deal.

The company I plan on using is called Automoble Consumer Service (ACS Corp). They have a "lease module" called Leasecompare.com that allows you to select the vehicle and the lease criteria. Also gives you a break down of the payments, terms, money factor, and residual.

Right now, they don't have figures for the Elise, since it's not out yet and no residual have been established (at least publicly). However, I'm told they will have those figures when the first Elise arrive.

Here's their website:
http://www.acscorp.com/

Here is their lease quote module:
http://www.leasecompare.com/

Hope this helps.
Allan Gibbs is offline  
post #26 of 39 (permalink) Old 03-19-2004, 02:12 PM
Registered User
 
LarryB's Avatar
 
Join Date: Mar 2003
Location: NorCal
Posts: 3,927
The main advantage of a lease is, the smaller down and monthly payment. It doesnít look like Lotus USA has anything in place for a lease, so itís going to be more up to dealers if they want to go that route. On the financial side this kind of a sports car doesnít make much sense, so Iíll leave that one alone.
LarryB is offline  
post #27 of 39 (permalink) Old 03-19-2004, 02:49 PM
Registered User
 
wstrohm's Avatar
 
Join Date: Dec 2003
Location: Fountain Valley, CA
Posts: 58
Talking

Not a bad franchise for the Internet... "www.e-lease.com"

---- Bill
wstrohm is offline  
post #28 of 39 (permalink) Old 03-19-2004, 05:04 PM
 
Join Date: Dec 2003
Posts: 2,269
If you need to lease an Elise because it doesn't require a substantial down-payment and still has affordable monthly payments, make sure that there is a 'buy-back' at the end of the lease.
Then, while your socking away as much
savings as possible for the 36 to 48 month lease period, you could enact full ownership at that time by paying the balloon payment on the end. If you don't have the cash at that time, you could
approach a bank for a used-car type loan
and buy it that way, continuing with monthly payments but now with ownership a 'definate' at the end of the
loan period.
Ridgemanron is offline  
post #29 of 39 (permalink) Old 03-19-2004, 06:31 PM
Registered User
 
Tripledigits's Avatar
 
Join Date: Oct 2003
Location: Colorado
Posts: 302
Quote:
Originally posted by Derek
I'm just guessing but I don't think you can track a car that you lease. At lease I've never heard of anyone doing it.
I know several people who have tracked their leased cars. One fellow has modded his car, and just took the aftermarket parts off at the end of the lease.

1998 D Sports Racer
2002 CBR 1100XX
2008 Mazdaspeed 3
Tripledigits is offline  
post #30 of 39 (permalink) Old 03-19-2004, 06:36 PM
Registered User
 
LotusLust's Avatar
 
Join Date: Dec 2003
Location: da woods of tn
Posts: 3,684
i may well own my company by the time the car is here. i have indeed been pondering the concept of the company leasing the car from me. it is on the list of items for discussion with accountant and legal types. works for antiques as office furnishing and other interesting items as well

Storm Titanium, LSS, touring, hard top. my other car is a ...oh yeah i remember the other car...a spyder. no, wait. some dumb bitch ran a light and destroyed the spyder. now it is a 4 runner trail edition
club111 member. i tried to buy a lower spot and become member #13 but was spurned!

fun around every turn
LotusLust is offline  
post #31 of 39 (permalink) Old 03-19-2004, 06:42 PM
Registered User
 
Tripledigits's Avatar
 
Join Date: Oct 2003
Location: Colorado
Posts: 302
Lillie

The only way to tell if leasing is cheaper than buying is to have the details of both contracts in your hands, then run a present value comparison. Sometimes leasing is cheaper than buying, and sometimes not. The last time I bought a car, I ran the analysis, and the present values of the 2 contracts were within $200 of each other. One advantage of leasing, previously mentioned, is not paying full value sales tax up front. Also, lease residuals are negotiable, and it's not uncommon for people who want to buy at the end of the lease to walk away with a sweet deal. I typically buy because I keep my cars a long time, and restrictions on some leases can be a burden. A financial person should be able to run the present value comparison for you, if you're not familiar with it. I may lease the Lotus, in that you never know how you're going to like a car until you've owned it awhile, and I've never had a chance to see the dam* thing, much less drive it.

Jeff

1998 D Sports Racer
2002 CBR 1100XX
2008 Mazdaspeed 3
Tripledigits is offline  
post #32 of 39 (permalink) Old 03-19-2004, 06:55 PM
 
Join Date: Oct 2003
Posts: 1,579
I have never leased a car, and don't plan to, so this is just something I've heard: Don't typical lease contracts also require you to have all the recommended maintenance done at a dealer? If that's true, and you normally like to take care of your cars yourself, it could add a substantial amount to the total cost.
ConeFusion is offline  
post #33 of 39 (permalink) Old 03-19-2004, 07:01 PM
 
Join Date: Oct 2003
Posts: 1,201
Personally I will buy the Elise outright. But, a friend leased for not a financial reason but as a put option against getting a lemmon from Porsche.
agent.5 is offline  
post #34 of 39 (permalink) Old 03-20-2004, 01:31 AM
Registered User
 
etypeiii's Avatar
 
Join Date: Oct 2003
Location: Bothell, WA
Posts: 352
In general:

If you know you're going to give the car up in 3 years - lease.

If you know you're going to keep it - buy it.

As others have mentioned, it depends on the terms. But if you know you're going to sell the car, then not only are you paying interest on the money you've borrowed to buy the Elise, you also will eat the depreciation on the car when it comes time to sell. If you're the gambling type, you could hope that Elise-mania holds up for three years, and then you would not be hit hard by this. But I don't think the Elise will be extraordinary in this department, not 3 years from now.

But:

If you are going to put lots of miles on it (daily driver/lots of commuting/road trips) - leases usually have high mileage penalties.

Track days - if even track days are forbidden (as opposed to competitive events) - I guess the risk in ignoring this prohibition is, what if you crack it up on the track? If you make a claim on insurance, they'll know. If you don't, the repair cost might outweigh the money you saved.

If you like to mod the cars - you have to choose reversible mods (ones you can economically roll back - if you bored and stroked the motor, it would probably be pretty expensive to revert back to stock.

If there is no prohibition on track days (or you're not worried about a traceable mishap), and the residual is anything close to reasonable, lease.

If there is a prohibition, buy. If you can't use the car for the purpose you intend, what's the point?

I'm guessing, unless the Elise turns into the next Pinto, with some grievous safety defect, the Elise's resale value will hold up fairly well. It might be close to a wash if you get a good interest rate.


Though of course, in the end, just do the math as others have advised based on your options...




DLY
etypeiii is offline  
post #35 of 39 (permalink) Old 03-20-2004, 09:32 AM
 
Join Date: Mar 2004
Posts: 36
My dealer informed me I am probably better off not leasing. As far as I know there are a few companies that could. However it might not be as appealing. Many of the manufactures rebate when you lease for example on 39K BMW z4 you could lease for $399 with $2500 down for 36 months. Which is not bad. My estimate on comparable lease on Elise would be closer to $600 with double the amount of money down. If you canít afford the out of pocket your second best choice would be a loan from companies like people or etrade. You get a good rate depending on your down payment and length of the loan. You could have a payment between $600- $800.

Personally I will try to negotiate the best price I could and just purchase it. I hate payments, even though I did consider a lease for tax purposes.

Last edited by happytrails; 03-20-2004 at 09:38 AM.
happytrails is offline  
post #36 of 39 (permalink) Old 03-20-2004, 09:45 AM
 
Join Date: Mar 2004
Posts: 36
My dealer informed me I am probably better off not leasing. As far as I know there are a few companies that could. However it might not be as appealing. Many of the manufactures rebate when you lease for example on 39K BMW z4 you could lease for $399 with $2500 down for 36 months. Which is not bad. My estimate on comparable lease on Elise would be closer to $600 with double the amount of money down. If you canít afford the out of pocket your second best choice would be a loan from companies like people or etrade. You get a good rate depending on your down payment and length of the loan. You could have a payment between $600- $800.

Personally I will try to negotiate the best price I could and just purchase it. I hate payments, even though I did consider a lease for tax purposes.


Allan I checked this web site (ascorp.com) however on the exact same vehicle I was looking at the quote they offered was twice the price of what the dealer offered. I would do a bit more shopping around.

Last edited by happytrails; 03-20-2004 at 09:51 AM.
happytrails is offline  
post #37 of 39 (permalink) Old 03-20-2004, 10:59 AM
Registered User
 
Buck Dharma's Avatar
 
Join Date: Aug 2003
Posts: 138
Quote:
Originally posted by Tripledigits
Lillie

One advantage of leasing, previously mentioned, is not paying full value sales tax up front. Jeff
Depends on the State.
Buck Dharma is offline  
post #38 of 39 (permalink) Old 03-22-2004, 08:50 AM
Registered User
 
Join Date: Jan 2004
Location: Texas
Posts: 255
Several years ago I almost leased a new second generation MR2 but decided not to when I found out that the lease would require me to carry stricter (more expensive) insurance.

GOT IT! 1/18/05 - Ardent Red, Touring (biscuit), Hardtop, Starshield
WorldGoneWild is offline  
post #39 of 39 (permalink) Old 03-22-2004, 09:02 AM
Registered User
 
Paul MD's Avatar
 
Join Date: Aug 2003
Location: Back in Sunny Maryland
Posts: 739
... and that was a bad thing????
Paul MD is offline  
Sponsored Links
Advertisement
 
Reply

  LotusTalk - The Lotus Cars Community > Lotus Discussions > Lotus Elise

Quick Reply
Message:
Options

Register Now



In order to be able to post messages on the LotusTalk - The Lotus Cars Community forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.

Password:


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:
OR

Log-in











Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page
Display Modes
Linear Mode Linear Mode



Posting Rules  
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

 
For the best viewing experience please update your browser to Google Chrome