I am on my way to getting my HHR, and I am trying to figure out all the options and angles. What I am looking for now is good information or opinions on going Lease vs Loan?

Thank you all in advance!

 

buy cash

 

Lease if you have your own business & desperately need the expense.

Otherwise, pay cash (or have a loan lined up).

 

If you change cars frequently, leasing may make sense. Otherwise, it is better in the long term to buy your vehicle. Make sure you are aware of all of the costs, and mileage restrictions before leasing. Also, I don't know the law in CA, but in IL you have to pay sales tax on the whole cost of the vehicle when leasing, which is pretty costly. You only finance the depreciation cost, but must pay tax like you bought the whole car.

 

You should be able to get a better deal with a cash price... negotiate a deal with your bank before hand and you'll probably come out ahead.

Even at 0% interest with GM... it's not 0%. It's built in to the price of the car.

 

I've always gotten loans set up ahead of time, and then had the dealer meet or beat the financing I had found.

As for the 0% statement, if you have decent credit and a down payment I have usually found it better to take the cash rebate over the financing. On the other hand, when I purchased my HHR (early 2006) there was no cash rebate available just special rate financing. In that case, you're kinda stupid not to take the special financing.

 

lease = long term rental with down payment.
so if you dont want the same car for a long period of time, or if you dont plan to exceed the maximum mileage allowed by lease terms, AND need the write off, it'll work.

some folks dont want to own...or finance...they'd rather throw a down payment, sign some docs and drive away...they can end the lease early for a fee or transfer the lease to another vehicle for a fee.

i have never been a fan of leasing unless one owns a business.

buy it....line up your own financing, and shop like a cash buyer...you hold all the cards when you find a car and have the power of a cash buyer. be prepared to 'walk' away from any car you are considering if the dealer/seller doesnt meet your criteria or price.

having all the cards can actually make car shopping fun. let the salesman sweat for you, not vice-versa....haggle like your life depended on it...and if they still wont deal....walk.

 

In my opinion a lease on an HHR doesn't make much sense. Since the cost of the vehicle is so low - the residual value is even lower. That means you burn more depreciation than you would if you were looking at a higher value vehicle.

If you buy the key is to look at how long it will take you to work out if being upside down. Look at that time period and your buy payment - and compare it to a lease. I think you'll find that with the buy your payment will be lower - if you can live with the time it takes to get back to break even.

Hope that helps!

 

Hey Matt,
Welcome ( in advance ). Surfer Panel here in the OC. If you are going to build your HHR, best to own it. These are not alot of money anyway and loan rates are reasonable if you don't want to pay cash. What style are you going to get?? A 2 seater ( panel ) ?? An AA5 ( simi panel ) ?? SS ?? Hurry up so you can get it built in time for the Feb 17 run to Santa Ana !! Bring it to the Donut Shop on Saturday Morning ( Adams & Magnolia -- HB ). Use the On Star to order parts on the way home from the dealership !!! ........

 

Adams and Magnolia? I live at Harbor and Adams in CM.
What time in the AM? Do you mind if I bring my present wheels?

As for building it. I am tempted to go after a used, as I have found some decent prices that way!

Tanks,
Matt