I'm going to (most likely) trade my CSX in on an RDX w/ tech package, but the big issue I'm having at this point is figuring out which is the best option.

36 month lease versus 60 month finance.

Both are with the equity in my CSX as a down payment (for argument sake, let's say I have $6,000 equity in my CSX). We'll also assume the RDX is at full MSRP... $45,000 + Freight.

36 month lease: $669.11

60 month finance: $846.03

To get the 60 month finance down to the same payment I'd have to put an additional $9,000. I'm thinking that 9k could go to a lot better use in other places right now, so I'd probably rather not throw it at a vehicle.

If I'm going to get a new vehicle in 3 years anyway, is a 60 month finance deal with 6k down even worth it, or will the RDX likely not have enough equity at that point?

Decisions, decisions...

 

koala if you are shopping in edmonton
my brother can help you with all of this

his name is tin and you can call hm 7807083388

but one thing i know about trade ins expect your csx be be traded below base price.

but yeah PM me if you are planning on selling the csx and the price

 

Well here's the math. You basically end up in the same spot using Honda's rate of 6.4%

At the end of the 36 month lease, you owe $23,850+tax=$25,281
At the end of the 36 month finance (60 month amortization and extra $9k down), you owe $15,000 but that's tax included.

You take your $9k and invest it and 10% (conservative) returns/year = $12,000
$3000 capital gains, get taxed $600.

You would have to sell the RDX for $15000+11400=$26,400 in order to get your $9000+interest back. No such guarantee of that although Honda's tend to really hold their value.

Why bother, just lease, bag on it and give it back haha

 

To answer your question of $6k down, $846 payment and 60 month term. At the end of the 36 months, you will owe $19,000. So basically you'll pay an extra ($846-670) $176/month ($6336 total) for no reason. Keep the extra cash in your pocket. Plus you run a business, write a portion of it off, or all of it if you can.

 

Huh?

 

And huh?

 

I've never actually leased before, how would I be eligible for a tax break?

 

depends, you gotta buy the vehicle through the company then and make it a company car. Then its considered a cost to the business and is an expense. If you buy it personally then you have to be self-employed.

 

You guys should be using accountants...

 

i say finance!