Collin and I have been discussing the pros and cons of leasing and buying, and i think he wants to lease as it is cheaper. The way i have always understood it if you are wanting to keep the car then buy it or if you wanna get rid of it before then lease. The thing i dont like is the guidlines of them setting the expectation of a mileage limit. Chime in guys and let me know if I am wrong...

 

I'm planning on buying the car either way. This is just a cheap alternative for a long term goal. Yea, I can afford to "buy" a brand new S2000. But your looking at an extra $250 added to the $398 of a loan payment to buy it.

Plus its a closed end lease. I'm guranteed the cars resalve value AND buy value will be $18,119.40 at the end of the term. If I exceed the mileage it wont void my lease. They wont fine me at the end of my term. They will if I try to trade it in or sale it. But, if I buy it. What do they care. They can't fine me. They aren't going to take it cheaper than the given $18,119.40 or they will lose their hurting themselves. They can't penalize me for a closed end lease when its going to be my car.

My plan is to sign on a closed end lease. Pay the cheaper rate on it for 4 years. Which gives me time to invest a minimum of $200 a month for 4 years which will equilize to $20,000. I can use that money to pay cash and own the car at the end of the term.

Plus another restriction on a closed or open end lease is that the car has to be 100% stock at the end of the lease if you are to trade it in or sell it. Which this will not matter either. It will be my car. When I walk into the dealer in 2010 I will walk in. Buy the car and wont be fined on it because its MY car.

I know, it sounds to good to be true but its financially smarter for me to do it this way. Simply because I do plan to buy it. I wont struggle to own this car paying $238 on insurance matched with a $638 car payment and not have room to enjoy life nor invest. Yea, I'll own the car in the end but it will suck real bad.

 

4 year lease?? are they giving you an extended warranty with that. in 3 years you are out of warranty, meaning when you go to buy the car you are liable for all problems. I just read on hondas lease financing agreement online you WILL be fined .15 cents a mile if you go over mileage and during lease you cannot add mileage either only at signing you can pay for extra mileage. Factor your drive from work to home and back X5 plus there will be additional mileage if you go to school or go out. My mileage just going to and from work a year is 8640. Thats not counting trips or movies, going shopping or anything extra...even school. There are alot of factors you have to take into consideration you dont know what will happen. What if you wreck the car, the dealership might give you trade in of that amount but because of the wreck the value of the car drops and so you are still paying the same price that you negotiated for a car techincally not worth as much. Plus by 4 years i would want to have paid more on the car then the standard payment. You pay just a 100 bucks more a month for four years you already paid an additional 5000 dollars that you now have equity in the car. Lease cars you dont get that. You always hear people leasing cars they cant afford. I dont know anyone that goes i wanna keep this car, let me lease it. My bet is that by the end of the 4 years you will trade it in and lease another one. if you are wanting cheaper payments go with a used S, get lower payments, pay it off faster and MOD the hell out of it

 

I think Bobby is correct here. If you know you want to own an S long term, then buy one. In your situation I'd get together a good down payment and then browse the forums here and look at something in the 20K range. You and Chopper should really be looking outside the local area for S2000s. I see lots of really clean ones on this site for sale. If you have to fly to Cali. to pick it up.....so be it.

I would just hate to see you get "upside down" in a contract.

If you're dead set on doing the lease, at least make sure and negotiate the sticker price of the car down just as if you were buying it.

 

https://www.s2ki.com/forums/index.php?showtopic=440784
https://www.s2ki.com/forums/index.php?showtopic=425832
https://www.s2ki.com/forums/index.php?showtopic=444057

 

I agree with Bobby and Keith on this one! I've never been a big fan of leasing unless it's for a house. I think whta you saying you want to do is a Smart Buy in the long run your going to end up paying more. I would suggest saving like Keith said so you can make a downv payment and then browse around there are Honda dealers in Dallas and you have Baton Rouge 3 hours away as well.

 

that second one is ownage baby.. supercharged already

 

Btw, I meant 3 year lease. Used, my payments on the used one at Yokem was a few bucks cheaper monthly.

 

I will have money to mod it if I lease it and they do not fine me unless I go over my mileage at the end of my term when I try to trade it in or sale it. They wont charge me if I'm turning around and buying the car. The payments I put down for the lease will carry over towards the purchase of the car.

 

good luck collin