These are the numbers I got from the dealership after getting the price down to $31500. I still have not signed anything with them and just wanted to get some advice/comments on these numbers. Looks ok to me except the money factor seems a little high ;this will be my first lease and I'm not sure if they're adding on anything extra that doesnt belong.



if everything looks good then I'll have a 04 Sebring Silver with red/black interior in my garage next week.

Thanks

 

The monty factory looks fine if they are waiving the security deposit. If this is the case they must raise the rate by .00010. Congradulations it looks like you'll be getting a car at a great price. FWIW, here in Hawaii (sunny all year around) the cars sell for MSRP+ (but then everything except Kona Coffee and Macadamia nuts cost more here)

 

.0023 is equal to an interest rate of 5.5% which is very competitive for a non-subsidized lease.

I recently shopped for a BMW M3 lease and though the car price was discounted by $1600 the asking money factor was .0035 which is more like 8.5%. BMWFS was selling them the lease for .00245 so the difference was all profit for the dealer, around $4000. Needless to say I passed.

I think your lease deal looks very good.

(Also as I now drive an S2000 I also think your car choice is very good)

 

thanks for input fellas, next week its time for

 

.0023 Money Factor as JohnMCe stated is equal to an interest rate of 5.52%. This is a good interest rate. What is the sales tax rate in your area. Basing my numbers on the tax rate stated of 6% your monthly payment including tax will be $462.00. Have you ever thought about going with a Balloon Loan. I got my S with a Balloon Loan, it gave me the flexibility in terms of insurance, your not required high liability coverages, and you can break out of the loan at any time with out any penalties being incurred. Also if you make any payments over and above your monthly payment, they go towards your balance.

 

[QUOTE]Originally posted by pikkashoe
.0023 Money Factor as JohnMCe stated is equal to an interest rate of 5.52%.

 

don't lease it, man, unless you want car payments forever. if ya lease, waddaya got at the end of 36 months? nothin. if ya like the car, buy it. offer $30,500. no more. 10% down. at 5.5% interest, your payments will be an additional $150/month over the the lease payments. at the end of 5 years, you'll own the car outright.

 

If that lease is through Honda Financial, your dealer may also be able to get you through an independent bank or lender for the lease, which may make your payments lower.

It made more sense for me to lease at the time, so I did. It may come back to haunt me later. I dunno.

Edit: Look at that lease paper, apparently the S2000 is a 5 speed now :-P

 

Just like Sasprof said, when you lease you have nothing to show at the end of the lease, let me explain more about the balloon loan, basically it works just like a lease in the way they figure your monthly payment. First you work out the sales price of the car, then the lender determines the residual of the vehicle. You finance the difference between the price you have negotiated and the residual which they have set. You get the low payment just like a lease, but like I stated you also can sell the vehicle at any time and actually recover money back, not to mention lower insurance bill. Quick example using my car, I purchased for $30100 a 2003 S2000, the residual they came up with using 5 years and 12,000 yearly mileage allowance was $16500, I put down $5000, so i basically financed $8600 ($30100 - $5000 - $16500) , now the principal is based on this amount ($8600), the interest is based on the full $30100. My payment came out to $240 a month. Now after about two years my balance including the balloon payment at the end is going to be around $20,000, now tell me how much can you sell a 2 year old S2000 with normal mileage? I should be able to recover most of my down payment back, plus I am making payments of $280, instead of the $240 so $40 extra each month goes to paying down the principal sooner. PM if you like and I can go into more detail if you like. Obviously the numbers I gave you are not exact, I did not figure tax into it, but if you like I can pull out my loan paperwork and give you exact numbers for you as well as create an amortization schedule to show you how much you will owe at certain times during the loan. Also, with a lease you pay tax on your lease payment, at least that is how it is here in Miami, FL, i would assume its the same where ever you are located.

 

Balloon payments are illegal in some States, like Wisconsin.

After the lease period, you may be able to re-negotiate the residual and buy the car for far less than what is indicated. This could make the total cost less than buying now.

When you get out of the lease or buying, you will be out of warranty also. Even the extended warranty you can buy won't take you much out of the purchase period of 5 years.
So if having a warranty is important to you, you'll be getting a new car in a few years anyway.

If you don't plan to keep the car for 8 to 10 years, then leasing is a better option. It keeps the payments low and it saves you getting ripped off on trade values. Honda also has good lease terms (like 1500 off of damage costs).