Poll : The official 2013 "Did you Lease or Buy?" thread

[Yodrak]

I bought. Used.

[cynicl12000]

^^ X 2

[arnis]

Is it also called leasing if I pay every month and after 5 years (60 months) of successfully doing so vehicle will be mine?

[dhanson865]

Is it also called leasing if I pay every month and after 5 years (60 months) of successfully doing so vehicle will be mine?

In English we call that "financing" and so long as you intend to keep it instead of turning it back in to the manufacturer or whoever is taking your payments you can say you "bought" it.

[arnis]

I see. In EU usually bank buys the vehicle (pays 100% to manufacturer on the first day).
Agreement says that until the last cent hasn't been paid back real owner is the bank.
It is also possible to choose not to pay "residual" value 10-15%. Vehicle will be taken away.
Financially it is always reasonable to buy the vehicle and then sell on the next day (if ever).
For example German site: http://www.mobile.de/?lang=en
Or my local: http://eng.auto24.ee/kasutatud/nimekiri ... tsi=search
Dealers and private sellers use the same portals. Everybody pays small fee to site owners (1-5€ per car).

So selling a vehicle costs almost nothing. All you have to do is answer calls and let others do test drives.
To sell all you have to do is log in at Road Administration website , click "ownership transfer";
Then receive the money from whoever wants the vehicle and then click "confirm transaction";
New owner gets documents by mail within few days.
So selling a vehicle takes literally less than 5 minutes (plus 10 minutes to click check-boxes and take some photos for the ad)

[dhanson865]

I see. In EU usually bank buys the vehicle (pays 100% to manufacturer on the first day).
Agreement says that until the last cent hasn't been paid back real owner is the bank.
It is also possible to choose not to pay "residual" value 10-15%. Vehicle will be taken away.

If there is a residual we call it a "lease"
If there isn't we call it "financing"

Either way some company has their name on the title and you share ownership with them until pay the last payment and there is no outstanding debt.

If you pay in full it is "bought", if you "finance" you are "buying" until you "pay it off".

If you "lease" you may or may not "pay it off" so we don't consider that buying until you decide to pay the residual.

[kennethbokor]

I see. In EU usually bank buys the vehicle (pays 100% to manufacturer on the first day).
Agreement says that until the last cent hasn't been paid back real owner is the bank.
It is also possible to choose not to pay "residual" value 10-15%. Vehicle will be taken away.

If there is a residual we call it a "lease"
If there isn't we call it "financing"

Either way some company has their name on the title and you share ownership with them until pay the last payment and there is no outstanding debt.

If you pay in full it is "bought", if you "finance" you are "buying" until you "pay it off".

If you "lease" you may or may not "pay it off" so we don't consider that buying until you decide to pay the residual.

Yes, also within financing option they've got this "balloon payment" amount, which means they take this amount off of the final total and then figure out the financing payments based on the final total less this balloon amount. Then you make your finance payments as normal for the selected Term/Rate and at the end pay this balloon amount. This is not a lease but a way to purchase finance and get your monthly payments down. I've not looked at the Total Borrowing Costs in this method but it did not interest me.

Just something else they throw at us here in North America.