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Old 03-05-2013, 06:09 AM   #26
Rogerschro
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Join Date: Oct 2011
Fan#: 90661
Location: Bellbrook, OH
What I Drive: '12 frosted glass SEL '67 Gal vert.

Posts: 759
FF Reputation: 3 Rogerschro Good Standing Member
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Quote:
Originally Posted by asting View Post
I'm not trying to tell you what to do, but there's very little room for opinions in finance (as paying less for the EXACT same thing is objectively better).

Depending on your options, and what you were offered you did not do well.

Most leases have a fixed monthly payment, however the depreciation rate on most autos is very heavily front weighted. That is, you experience a 25% drop in value within the first year, and the rate of depreciation decreases over the life of the vehicle.

Fixed lease payments don't cover the drop in value the first year, however they make up for it in later years by charging you more than the monthly value decrease of the car. By trading in after one year, you took the largest hit for depreciation and "paid" way more than you would for a lease.

If this doesn't make sense I can make a graph showing the linear, vs exponential, concave up decreasing costs under each scenario.
LOL! no need for graphs! I understand statistics and finances. As you state Depending on options and such I may or may not have done well.... So a weak argument to state I didn't do well if you don't know the numbers... BUT, I will say you are right in that in almost every case it is a loosing proposition to trade early. I did not get the Cmax at a steal, I got it at a price I considered fair. That makes it a good deal for me. My dealer has gotten a fair but of business from me lately and because of this, they hunted down the car I wanted at the terms I asked for and found a Cmax with not only the features I wanted but also the heated seats and MFT system that I didn't ask for, but was available rather than ordering one. I was very specific on what color exterior and interior. I also specified the Zebart protection plan and ESP plan be a part of the sell price. I set the terms of how much I was willing to pay, my monthly payment and length of payments. I set this on their table and said if you meet these requirements I will buy. They exceeded these requirements with the winter pack and MFT. I got the color and the interior features I wanted. I didn't have to settle for a second choice or pay more than I agreed to. Some may say I didn't do well, I should have done better or waited until I owed less on the car than the current value, but I got what I wanted out of the deal, the car is great and my girlfriend loves it, so I got a good deal. ( I even got a lower interest rate than usual for the duration of the terms, it helps to have a high credit rating....)
Here is a shot of the new car.

And one with my FGM which I still own. Two great cars!

Last edited by Rogerschro; 03-06-2013 at 08:13 AM.
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