[B]Here's my dilemma. I have an '01 (yellow) with 31k miles; the engine has only 16k miles (replaced after accident). Car performs wonderfully. Only problems: plastic rear window, roof tear about to happen behind driver's head, terribly underpowered stereo. I can buy out the lease for $20k Or, lease a new '05. I love the '01's high-revving engine, dependability, handling and interior. I could keep it, upgrade the stereo, live with the rear window and poor torque. [COLOR=blue]The '05 offers the revised handling, bigger tires/wheels, better stereo and glass window. What would you do?

 

look at it this way:
if you buy the 01 you will own a car in 4 years or you can lease the 05 for *ABOUT* the same payment and own nothing in 4 years. I'd imagine the 01 will still be worth over $10K even 4 years from now. That's a lot of money.

You can buy a whole new top with the glass for $800 new and do the mod on the frame (maybe 8 hours labor?). Or, you can wait for someone to sell their top+frame for $1100 or so and bolt it in (5 hours?). That'll solve the glass-window issue. A decent stereo can be had for well under $1G with amps/speakers.

Do what you want, but the quick depreciation on the 05 vs the slow depreciation on the 01 makes this a big financial difference.

 

I just checked with my dealership on the lease of a new S, and they said it would be over $500/month. Then I ran a 72 month loan at 4.5% ($0 down payment), and the payment was barely over $500/month if you get it for a little under MSRP. If I were in your shoes and liked the AP2, go for a $0 down loan, and own the '05 in the end. No prior accident, no $$ out of pocket in repairs over the near term.

Just my $.02.

Good luck,

JPOG

 

By the way, the numbers I ran were just arbitrary from Edmunds calculator today, and the lease info was a ballpark from a salesperson today as well. Your mileage may vary obviously. This may provide guidance, though.

JPOG

 

Hmmmm.... some differences of opinion here.
Refresh my memory, please. AP2 means what? Year 2 of production?
Thanks, all, for your opinions. Still working on the solution to my dilemma!

 

You can get a MUCH better car for 20k than the one you described.

 

Sorry, AP2 are the '04-'05 model years. As I said, my opinions are just that. I also saw a thread on down about leases, and some are able to get 4 year leases with 2000 or so down for about $400 / month. This may be attractive to you. Not my M.O., but different strokes...

JPOG

 

What is a good '01 going for these days? And, what's a dealing taking for trade-in on an '01? $18k?

 

I know a 0 down loan is tempting but it's a lousy idea IMO. You'll be a couple of grand upside down on the car the moment you drive it off the lot. I you have an accident and total the car two days later, the insurance will pay the street value and you'll be stuck for the rest unless you buy even more insurance like gap coverage.

It seems to me that you'll be a lot better off saving up for a while and putting 10 to 15% down if you want to buy the car outright. Try Car Buying Tips!

Best of luck in what you decide.

Drive Safe,
Steve R.

 

A good 01 will go for 20-22, depending on mileage and equipment. 18 sounds right on a trade, though some dealers like carmax will pay top dollar for in-demand trades like S2000s.