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Originally Posted by drew4392
I've always leased. For me, it has made more sense. It's a nice business write-off, affords me flexibility because I usually don't keep a car longer than a couple of years, etc.
Lately, I've been really itching for the next higher class of car: C63, M3, ATS-V, Quadrifoglio, older 911 or newer-ish Cayman, etc.
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Leasing is a type of financing, so if you can make this approach work for you (don't worry about going over miles and can write off some portion of the lease cost, etc), why would you want to own something? Why not just keep leasing, but move your game up to a nicer car?
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The only reasonable financial way I can pull it off is by buying a used version of one of these cars. Typical 60 month financing and very minimal down would result in a payment that I can afford. About the same or a tad more than the typical lease payments of my last several cars. I would be buying with a warranty (Fidelity Platinum, which I've heard great things about) to cover me for 2-4 years.
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There are so many variables here, that it's almost impossible to give you an answer. I bought my m3 used a few years ago. Between my trade-in and some cash, I was able to pay half of the price of the car. I had a 60 mo loan and my monthly was <500/mo. I paid the loan off in 3.5 yrs.
Here's the thing though, paying for the car is only one piece of the pie. Maintaining the cars you want to buy is a completely different level than the less performance oriented cars you've had. Oil changes, fuel costs, brakes, tires, and potentially insurance together is WAY higher than your basic 335/340. If you are stretching to just pay for the car, then you aren't in a good spot to maintain it. Brake jobs on most high end, high performance cars are eye wateringly expensive, especially when done at a dealer. You save a good chunk if you can do the work yourself, however.
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Does it simply boil down to, you have to pay to play? I'm worried about being significantly upside down in 2-4 years, or whenever I want to sell. Will the market value stay commensurate with my principle balance? That's the magic question. If I end up having to eat several thousand dollars when I decide to sell, if I annualize that negative equity, then that's the extra cash I would need to foot a lease on a NEW version of one of these cars. Hoping that makes sense?
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If you are buying used, you have less to worry about regarding being upside down vs a brand new car. Are you planning on selling the car in 2 yrs? I mean, if this is only a short term affair, then you should keep leasing. If you are going to keep the car for at least 4 years, that's when financing makes more sense. How many miles do you put on your cars in a year? This is another factor as to how much value you will lose over a given period of time.
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Originally Posted by positiveions
The only car I would finance for long term is a Porsche 911. This model is known to hold its value. In addition, I wouldn’t put more than 10% down.
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Seriously? Have you priced out modern 911s? Their resale is no better than anything else. Special edition watercooled and most aircooled 911 do very well in resale, but something like a basic carrera (997 or early 991) don't have impressive resale. Back in 2015, I could get into 997 carrera for similar money as the e92 M3 I ended up purchasing.