Chevrolet Malibu Forums banner

Status
Not open for further replies.
1 - 20 of 21 Posts

·
Registered
Joined
·
64 Posts
Discussion Starter #1
I am interested in trading in my 2006 Mazda 3 and would like to know how much it would be to lease a 2008/2009 Malibu LTZ 4 cylinder with the 6 speed transmission?

I have loved the car since it came out and wanted this exact configuration, now its here and I want it.

I got prices on an LT2 about 6 months ago but I definately want the LTZ with the 4 cylinder now that its out. I would assume most leases are 36/39months for the best deal?

Any help is appreciated!
 

·
Registered
Joined
·
167 Posts
I have a V6 LTZ, but for comparison purpose, my lease is $432 a month for 39 months @ 12,000 miles/yr with $432 down (the first payment). I included everything in my lease including the GM lease Protection plan. Of course there are a lot of variables that go into calculating your lease price...
 

·
Registered
Joined
·
239 Posts
I pay $471 per month on a fully loaded LTZ that I bought. Put $2800 down, financing 25000 at 5.29% over 60 months.

A lease is such a terrible deal.
 

·
Registered
Joined
·
167 Posts
I disagree that a lease is a terrible deal. As long as you are putting no money down, and consistently want a new car every few years, a lease is the best financing deal (unless of course you can purchase a car outright each time). I also only want cars while they are under their warranty period.
 

·
Registered
Joined
·
239 Posts
Here's a great analysis of buy vs lease from another forum that I go to. They're talking about another car, but Bar, you need to do these calculations to figure out what would be better. Keep in mind that the new Malibu is highly rated as well, so most likely resale value should be good.

1) The lease special is on the $19,560 base model Jetta Wolfsburg Edition. It appears like you selected upgrades in your purchase (automatic, and the extra airbags). Thus, you aren't comparing apples to oranges. To get the $219/month lease price, you'll have to cough up the difference of $21,200 - $19,560 = $1640. This is in addition to $2294 downpayment + other fees. It appears that in your case the other fees are $23,000 - $21,200 = $1800 (including dealer fees, delivery, etc.) Total money up front for the lease: $1640 + $2294 + $1800 = $5734.

2) Thus, we are comparing (A) $6600 down, $361/month, for 48 months of buying to (B) $5734 down, $219/month, for 36 months for leasing.

3) Lets compare what happens at the 36 month point for a more fair comparison.

Buying

After 36 months, you have paid 36*$361 + $6600 = $19,596.

You still owe $4327.84 on the loan to own it outright.

Leasing

After 36 months, you have paid 36*$219 + $5734 = $13,618.

You still owe $11,312.00 to own it outright. (See the link I gave)

Option 1: You want to keep the car.

If you buy the lease outright at the end of 36 months, you have paid $13,618 + $11,312 = $24,930.

Compare that to if you pay off the car loan at the end of 36 months: $19,596 + $4328 = $23,924.

Clearly buying is better if you buy the car at the end of the lease. Buying is $1006 cheaper.

Note: If you invest the ($6600-$5734 = $866) downpayment and the ($361 - $219 = $142) monthly payments at 5% as mentioned above, you would have made $531 in interest. After tax (assuming 25% federal + 5% state), that nets you ~$372 of interest.

Even including that investment interest, buying is cheaper.

Option 2: You don't want to keep the car.

Assume you have $250 in damage / overmileage fees on the lease.

Assume you sell the car yourself for $11,000 (A bit below the lease estimated value of the car).

Leasing cost you a total of: $13,618 + $250 = $13,868.

Buying cost you a total of: $23,924 - $11,000 = $12,924.

Thus, buying and selling is cheaper by $944 than by leasing and ending the lease.

Of course, you must include the $372 in investment interest, but buying is still cheaper.

Extra considerations

Your state may have property tax differences. This may make leasing better than buying.

Your income taxes may be different in some cases. This may make leasing better than buying.

If you do better than 5% on your investments, leasing may be better than buying. Here, you'd need to make ~13% before taxes on your investments to break even.

If you read the lease fine print in that link, it says the dealer must cough up $543.51 in incentives for you. Now, think about that, the lease option I calculated above already has a discount on the price. You can also get the dealer to give you a discount if you buy. That will make buying ~$543.51 better than what I posted above.

Conclusion
Buy. Leasing is almost always the worse choice unless (A) you lease for 2 years or less vs. buy/sell the car for 2 years or less, or (B) one of those tax breaks helps you. In those cases, leasing can be really good for the consumer. But in MOST cases, leasing is only a profit gainer for the car dealership. There is a reason they advertise leasing so much, because usually they make more profit from you.
 

·
Registered
Joined
·
167 Posts
There are parts of that I agree with and disagree with. You are always better off purchasing if you plan on buying the car at the end of the lease. The only reason to do this is to keep your payments smaller per month, but yes you will pay more for the car.

A lot also depends on the number of miles you drive a year.

That post also assumes putting lots of money down and possibly going over on miles or have damage. True you need to play the mileage game but have never found it to be a problem. Most of the time it works in your favor if you are under on miles because then you can negotiate a trade instead of a turn-in. Also I would never sell my car outright unless I could get more than the residual. I have also done calculations that 36 or 39 month leases are better than 48 or more month purchases. 60 months is the most you should ever finance a vehicle for purchase if you want to break even.

For I believe it was $460, I was able to purchase the GM protection plan which allows me to return the car with 5 instances of damage that are no more than $1000 per incident for repair.

I've always used the following rule from research and financial advice I have been given. If you are willing to keep a car for at least 5 years then purchase. If you want a new car every 2-4 years and you can't purchase it outright (w/o financing) then lease, IF you don't drive more than 15,000 miles per year and if you don't have to put more money down then your first month's payment. There are lots of attractive lease deals but most require you putting thousands down. Those in my opinion are not deals (for the consumer, it is for the leasing company...)
 

·
Registered
Joined
·
27 Posts
Conclusion
Buy. Leasing is almost always the worse choice unless (A) you lease for 2 years or less vs. buy/sell the car for 2 years or less, or (B) one of those tax breaks helps you. In those cases, leasing can be really good for the consumer. But in MOST cases, leasing is only a profit gainer for the car dealership. There is a reason they advertise leasing so much, because usually they make more profit from you.
If you are resigned to the fact that you will always have a payment the lease is the way to go. Very rarely do you not have equity problems if you try to trade out of a retail after three years.
Ask the salesman and sales managers at most dealerships most of them lease.

What is good for the dealership is they have people coming off lease all through the year. There are times when things are good for both the customer and the dealership.
 

·
Registered
Joined
·
240 Posts
In most cases leasing is used to purcahse a car that the buyer can't afford. In cases like that leasing is usually a nightmare.

IMO if you buy within your budget leasing makes 0 since. For example we traded in our 07 HHR that was paid for and financed the rest for 60 months @4.99% and our payments are just under $300 a month. We are now sending in 2 payments a month taking that 60 month and turning it into 30 (probably less) and in less then three years we'll have a paid for car.

We financed for 60 months because 4.99% was the lowest available rate and we figured a lower payment would help incase something happened.
 

·
Registered
Joined
·
326 Posts
Several people here at my office lease because they want to drive a BMW, Lexus, and Mercedes. Otherwise they would be driving Chevys like the rest of us. It's all about status.
 

·
Registered
Joined
·
64 Posts
Discussion Starter #11
In most cases leasing is used to purcahse a car that the buyer can't afford. In cases like that leasing is usually a nightmare.

IMO if you buy within your budget leasing makes 0 since. For example we traded in our 07 HHR that was paid for and financed the rest for 60 months @4.99% and our payments are just under $300 a month. We are now sending in 2 payments a month taking that 60 month and turning it into 30 (probably less) and in less then three years we'll have a paid for car.

We financed for 60 months because 4.99% was the lowest available rate and we figured a lower payment would help incase something happened.
I guess I don't understand why what you said makes sense. Why would you trade in a 2007 model year car that you must have only owned for a year or so and take the huge hit on depreciation? That right there is the worst financial mistake you can make.

Also, your now paying $600 a month for a Malibu that you will have paid off in 3 years? A malibu will probably only be worth about 15k for the highest end model that came out for the 2008 model year.

So the way I see it you lost about $7k - $8k after using the HHR for the short period of time and selling it. Then you traded that in for a Malibu and your payments are still $300 a month for the next 5 years. What was the cost of the malibu after you factored in the HHR trade? Even if you bought top of the line LTZ you would only be financing $14k - $16k, your basically paying a ton of money a month for not much

You would have been much better off leasing the HHR and just buying the Malibu if you keep it for awhile, otherwise if you do the same thing your better off leasing.
 

·
Registered
Joined
·
240 Posts
I guess I don't understand why what you said makes sense. Why would you trade in a 2007 model year car that you must have only owned for a year or so and take the huge hit on depreciation? That right there is the worst financial mistake you can make.

Also, your now paying $600 a month for a Malibu that you will have paid off in 3 years? A malibu will probably only be worth about 15k for the highest end model that came out for the 2008 model year.

So the way I see it you lost about $7k - $8k after using the HHR for the short period of time and selling it. Then you traded that in for a Malibu and your payments are still $300 a month for the next 5 years. What was the cost of the malibu after you factored in the HHR trade? Even if you bought top of the line LTZ you would only be financing $14k - $16k, your basically paying a ton of money a month for not much

You would have been much better off leasing the HHR and just buying the Malibu if you keep it for awhile, otherwise if you do the same thing your better off leasing.
I never said that trading the HHR in was a smart move but having it paid for allowed us to come out 'on top'. My wife didn't like the HHR and since it's her car we decided to take the hit. Also, there are guys on here that are paying 400+ a month to lease for 36-39 months with money down. At the end of that lease they are still going to owe or walk away with nothing but in 2 1/2 years (30 months) at $600 I'll own mine free and clear.
 

·
Registered
Joined
·
64 Posts
Discussion Starter #13
I never said that trading the HHR in was a smart move but having it paid for allowed us to come out 'on top'. My wife didn't like the HHR and since it's her car we decided to take the hit. Also, there are guys on here that are paying 400+ a month to lease for 36-39 months with money down. At the end of that lease they are still going to owe or walk away with nothing but in 2 1/2 years (30 months) at $600 I'll own mine free and clear.
I get that you had equity in your car which is the same position I am in.
The $600 you say you are paying a month is more like $800+ if you add in the trade value you got from the HHR which makes that an OK move if you want to keep that car for 5+ years but $850 x 30 months is $25,500 (has to be more since LTZ's are priced higher).

Since I don't like to keep my cars too long I will pay my $400 a month for the same car and not have to worry about selling it or the major maintenance on it and use that extra cash towards my next car.

I just don't like when people say leasing is never a better deal and they purchase a car and trade it in a year later which is the total opposite of good deal.
 

·
Registered
Joined
·
240 Posts
I get that you had equity in your car which is the same position I am in.
The $600 you say you are paying a month is more like $800+ if you add in the trade value you got from the HHR which makes that an OK move if you want to keep that car for 5+ years but $850 x 30 months is $25,500 (has to be more since LTZ's are priced higher).

Since I don't like to keep my cars too long I will pay my $400 a month for the same car and not have to worry about selling it or the major maintenance on it and use that extra cash towards my next car.

I just don't like when people say leasing is never a better deal and they purchase a car and trade it in a year later which is the total opposite of good deal.
I agree that trading in a car 1 year later is NEVER a good thing to do. We had our reasons and went back and forth about it for several weeks before we bought.

However, leading up to the Malibu I like to think I did pretty good for myself. In 2001 I saved up and put down 5k on an 01 SS Camaro. I took advantage of there 0% for 60 months and paid it off in late 2004. In June of 05 I traded it in on a for an 05 Pontiac GTO and got a good 3.99% for 48 months but I paid it off just shy of 2 years in april of 07. In July of last year my wife and I decided that gas was too high to have her driving a crew cab pick-up 120 miles a day so with a heavy heart we traded the GTO for an 07 HHR 2LT. In that trade we got the HHR and a check for $1800 bucks. Now had I leased the cars I would be "stuck" with no equity and no way out.

The bottom line is when dealing with cars you are going to loose money. The way I see it when you purchase you take the hit up front but you get the upper hand in the next deal, and the benefits of ownership. When leasing you take the hit on the backside and are at the mercy of the dealership.
 

·
Registered
Joined
·
167 Posts
Now had I leased the cars I would be "stuck" with no equity and no way out.
This is not completely true. I was able to get out of my CTS lease 9 months early with no penalty because I did have equity in the car. It just so happens that I over estimated the number of miles I was going to put on the car.
 

·
Registered
Joined
·
240 Posts
If you are in a new car every three years or so a lease works. Always in warranty and never out of equity. The lease may not be for everyone but It works for me and many other people.
This raises another question for me. Why are we so spooked by the warranty monster. If there is no 'major' mechanical problem in the fist 36,000 miles that means there is no major mechanical defect and odds are there won't be any major problems. I'll spare you guys the ripp-off that is extended warranties.
 

·
Registered
Joined
·
167 Posts
I have a theory that there are time bombs in anything that has a micro-chip. Once that warranty period runs out, then things start breaking... ;-)
 

·
Registered
Joined
·
19 Posts
In my opinion you do not get any value out of buying a car until is paid off, then the miles you put on it after that is value. Leasing (which I do on both of my cars, and yes they are both chevys) is a better fit for me, because you keep you payment down, short term, new car every three years in my case, never have to worry about any maintenance other than oil changes etc., you will always be under factory warranty. If your worried about the mile fees don’t, you can trade the car in 6 months before your lease is up, have the dealer buy the lease out, at that time blue book is right at lease buyout and get into a new car, no fess, no nothing, if the dealer wants to give you 2 grand less than the lease buy out, use your skills and make them eat it, or if their are incentives on the car you are looking at then you have nothing to worry about. Its all a matter of what fits you best. Another thing to keep in mind if you want to buy the car after the lease you can usually have them eat a couple grand because otherwise they have to pay for transport, inspection, and most of the time auction fees.


Here is a good article:

http://www.bankrate.com/nydn/green/auto/basics1-4a.asp?caret=5
 

·
Registered
Joined
·
27 Posts
This raises another question for me. Why are we so spooked by the warranty monster. If there is no 'major' mechanical problem in the fist 36,000 miles that means there is no major mechanical defect and odds are there won't be any major problems. I'll spare you guys the ripp-off that is extended warranties.
People are not spooked they just like to have a car that is never older then three years old. On a lease you are paying for what you use and then turn it in. A car is not like a house it is not going up in value. I will have three cars in ten years. It is a choice that works for me. I wouldn't think of telling people buying is the wrong way to go either.
 
1 - 20 of 21 Posts
Status
Not open for further replies.
Top