ok this is more complicated than the title sounds. I am going to have an S2000 and I have the following to work with. I have ~$12,000 and i have the ability to make slightly over a $500 payment per month. Know that I have never been one to keep a car for very long. Also, i don't want to buy a car and sink much in modifications into it (although i'd love to have all the goodies) because i have done that lots of times and always get burnt when i try to sell. Lastly, i don't want any sort of finance or lease over 36 months. Ok, with that being said, here are the two options i am thinking of...

1) lease a brand spankin new S2k with 3,000 down + my first payment. My monthly payments would be 439+tax.

2) Buy a modified S2k w/supercharger and all the nice stuff for around 30 grand, put the 12 down and finance the balance of ~18k. That should put me at just over 500 per month.

My stepdad wants me to lease because he is an investment banker and says we could make a lot of money with that 12 grand in the market right now given the current conditions. I personally would rather own the modified car, but i do see his point. What do you guys think?

-Steve

 

I think I would lease the new one. Not only can you invest the extra money, the buy out and the end of the lease will be a lot less than the car is worth (most likely). So at lease end you can buy the car, or sell it to someone else and get several thousand back.

What money factor and residual percentage were you quoted on the lease, by the way?

Dennis

 

I had another thought. Some lease compaines (BMW, for example) will give you a great deal if you pre-pay your lease. If Honda finance would do that, you may have just enough to pay the 3yr lease up front for a discount. Then take the "payments" and invest or save them, by the time the lease is up you will have almost enough money saved to buy the car - if you want to.

The residuals I have been quoted for 3 yr leases were 63-65% - so the buyout on a $33k car would be $20,790 - $21,450. I think if someone had a well cared for 3 year old S2000 right now they would have NO PROBLEM selling it for more than the lease buy out.

I would also be leary of a 'charged car - no warranty and a potential for high repair bills. The new car will be fully covered. Also, if you think you would have to boost the HP to be happy, then maybe the S2000 is not the right car for you?

Dennis