Good lease???
02-13-2003, 06:57 AM
#1
Banned
Thread Starter
Join Date: Jan 2003
Location: FL
Posts: 539
Likes: 0
Received 0 Likes
on
0 Posts
Good lease???
Ok, here's an email I got from Kim at Honda of Joliet... Tell me what you guys think. It's the best lease I've been able to find to date....... Think I should do it??
Hello Steve,
I'm sorry about the delay in getting these payments over to you. We had to wait for Honda to call our Business Mgr. back to let him know how to tax the vehicle, etc. The lower part of this letter is what my husband, Lou (General Sales Mgr.) sent to me via email.
48 MONTHS 12K MILES PER YEAR
TOTAL DUE AT LEASE SIGNING $1678.09
MONTHLY PMT $346.09
WAIVE SECURITY DEPOSIT $ 0.00
CAP COST REDUCTION
(DOWN PAYMENT) $1200.00
FLORIDA ONE TIME FEE $60.00
TAX DUE ON DOWN PMT $72.00
ACCORDING TO HONDA, THERE IS NO STATE SALES TAX, ONLY A 6% TAX ON THE MONTHLY PMT, WHICH IS INCLUDED IN THESE PMTS.
PAYMENTS MAY CHANGE BY A FEW DOLLARS FOR FEB., BUT I WOULD THINK LESS THAN $5.00 PER MONTH, IF THE RESIDUAL CHANGES AT ALL.
SELLING PRICE OF CAR IS $30536.00 WHICH IS $750.00 OVER INVOICE
THE LEASE PMT HE SAW (ON S2KI WEBSITE) DID NOT HAVE A MONTHLY LEASE TAX COMPUTED IN IT.
RESIDUAL VALUE AT END OF LEASE IS $19505.40
THIS SHOULD ANSWER ALL QUESTIONS FOR THIS GENTLEMEN.
LOU
Please don't hesitate to give me a call or write with your questions or concerns. Also, if you're interested in purchasing from us, please choose a color and I'll let you know the earliest we can secure the vehicle for you. In order for us to dealer trade, we require a fully refundable $1,000.00 deposit which may be placed on a credit card over the phone and a signed buyer's order which I can fax over to you. A letter of intent to purchase via email is also acceptable.
I hope to hear from you soon.
Enjoy your weekend,
Kim Tornabeni
Internet Sales Consultant
Honda of Joliet
KimHoVo@mc.net
815-439-2222
Hello Steve,
I'm sorry about the delay in getting these payments over to you. We had to wait for Honda to call our Business Mgr. back to let him know how to tax the vehicle, etc. The lower part of this letter is what my husband, Lou (General Sales Mgr.) sent to me via email.
48 MONTHS 12K MILES PER YEAR
TOTAL DUE AT LEASE SIGNING $1678.09
MONTHLY PMT $346.09
WAIVE SECURITY DEPOSIT $ 0.00
CAP COST REDUCTION
(DOWN PAYMENT) $1200.00
FLORIDA ONE TIME FEE $60.00
TAX DUE ON DOWN PMT $72.00
ACCORDING TO HONDA, THERE IS NO STATE SALES TAX, ONLY A 6% TAX ON THE MONTHLY PMT, WHICH IS INCLUDED IN THESE PMTS.
PAYMENTS MAY CHANGE BY A FEW DOLLARS FOR FEB., BUT I WOULD THINK LESS THAN $5.00 PER MONTH, IF THE RESIDUAL CHANGES AT ALL.
SELLING PRICE OF CAR IS $30536.00 WHICH IS $750.00 OVER INVOICE
THE LEASE PMT HE SAW (ON S2KI WEBSITE) DID NOT HAVE A MONTHLY LEASE TAX COMPUTED IN IT.
RESIDUAL VALUE AT END OF LEASE IS $19505.40
THIS SHOULD ANSWER ALL QUESTIONS FOR THIS GENTLEMEN.
LOU
Please don't hesitate to give me a call or write with your questions or concerns. Also, if you're interested in purchasing from us, please choose a color and I'll let you know the earliest we can secure the vehicle for you. In order for us to dealer trade, we require a fully refundable $1,000.00 deposit which may be placed on a credit card over the phone and a signed buyer's order which I can fax over to you. A letter of intent to purchase via email is also acceptable.
I hope to hear from you soon.
Enjoy your weekend,
Kim Tornabeni
Internet Sales Consultant
Honda of Joliet
KimHoVo@mc.net
815-439-2222
02-13-2003, 07:13 AM
#2
Registered User
Join Date: Jan 2003
Location: Omaha,NE
Posts: 2,875
Likes: 0
Received 0 Likes
on
0 Posts
Doesn't look like too bad of a deal. What color, and is it a color you like? I know there is a silver stone metallic at our dealership for about the same price. I think the monthly payments won't be too far off with the same down payment. They get $399 a month with nothing down.
02-13-2003, 07:13 AM
#3
Registered User
Join Date: Apr 2002
Location: East Bay
Posts: 507
Likes: 0
Received 0 Likes
on
0 Posts
During my past (thankfully) experience as a consumer, salesman, and lender: I've leased a car, bought out a lease, leased cars to other people, and helped others find financing to buy out their leases, and I can now honestly say that THE ONLY GOOD LEASE IS A DEAD LEASE! Don't do it man!!!! 
Leasing is renting, and the sales tax implications are a killer if/when you ever buy the car out. Since you'd just be renting the car, you can't mod it if you wanted to, and you must be wary of how much you drive it or it'll cost you.
It's better to go to a company that rents exotic performance cars and rent one for a day or two a month to get your jollies. In the end it'll be easier on you wallet as well as your heart.
And oh by the way, dealerships LOVE to lease cars. They make sooo much more money in the long run.
Just purchase the car if you can.
Leasing is renting, and the sales tax implications are a killer if/when you ever buy the car out. Since you'd just be renting the car, you can't mod it if you wanted to, and you must be wary of how much you drive it or it'll cost you.
It's better to go to a company that rents exotic performance cars and rent one for a day or two a month to get your jollies. In the end it'll be easier on you wallet as well as your heart.
And oh by the way, dealerships LOVE to lease cars. They make sooo much more money in the long run.
Just purchase the car if you can.
02-13-2003, 08:02 AM
#4
Registered User
Join Date: Jan 2003
Location: NoVa
Posts: 1,059
Likes: 0
Received 0 Likes
on
0 Posts
if this a, '02 or an '03????
my suggestion is to check the resids for 36 months. the 36's (if through honda finance) are very favorable when compared to the 48's. with 48, you'll be out of warranty for TWELVE long months.
purchase price of $30,500 sounds good.
btw- it is unwise to make general statements about leases and/or their tax implications. situations vary from person to person AND sales/use/property tax laws vary wildly from state to state. leasing can be advantageous, if you know what you're getting yourself into!!!!
my suggestion is to check the resids for 36 months. the 36's (if through honda finance) are very favorable when compared to the 48's. with 48, you'll be out of warranty for TWELVE long months.
purchase price of $30,500 sounds good.
btw- it is unwise to make general statements about leases and/or their tax implications. situations vary from person to person AND sales/use/property tax laws vary wildly from state to state. leasing can be advantageous, if you know what you're getting yourself into!!!!
02-13-2003, 08:14 AM
#5
Registered User
Join Date: Apr 2002
Location: East Bay
Posts: 507
Likes: 0
Received 0 Likes
on
0 Posts
Experience speaks loudly, Ace. If leases were so advantageous, why do you have to qualify your statement with "...if you know what you're getting yourself into."
Leases are best for folks who don't drive alot, who like the car just the way it is, and who want to drive something new every few years and don't mind always having a car payment.
Residual values are only favorable to the consumer when the persons setting them screw up. Don't be foolish; they're designed to benefit the lenders and the dealers, not the consumers, which is why so many folks get screwed when they find out they're upside down at end of lease term and they've driven too many miles to make it practical to pay the turnback fees and drop the keys on the dealer's front desk.
Leases are best for folks who don't drive alot, who like the car just the way it is, and who want to drive something new every few years and don't mind always having a car payment.
Residual values are only favorable to the consumer when the persons setting them screw up. Don't be foolish; they're designed to benefit the lenders and the dealers, not the consumers, which is why so many folks get screwed when they find out they're upside down at end of lease term and they've driven too many miles to make it practical to pay the turnback fees and drop the keys on the dealer's front desk.
02-13-2003, 09:08 AM
#6
Registered User
I have leased 3 cars and all of which I modded quite a bit (a 99' integra ls, a 01' ITR, and my 01 s2000). Leasing is not renting! Plain and simple....IF YOU DO IT RIGHT! You have to make sure you know all your numbers!! i.e. - residual value, cancelation fees (if any), and all the normal stuff. With a lease you have options...you can leave the car stock, not put to many miles on it, and give it back when you are done with it. Or you can do what ever the hell you want to it, drive it as much as you feel like, and plan to not give it back. If you choose option #2 you have even more options. A- you sell the car when you are sick of it, and as long as you sell it for more than you owe on it, you made money out of the lease. B- you decide you really wanna keep it, so you go to your bank and get a loan for how much you still owe on it, and buy it. Option A is good if you have a low residual (I have chosen that option twice and made about 8 thousand dollars that way, by selling the car for more than I owe on it, then use that for my next down payment). At any point durning your lease you can call up honda and get your payoff amount, and if you choose you can pay it off at any time w/out a penalty.
My first car....I had it for 3yrs (the lease term), at the end of the 3 years I owed 12k on it and sold it for 18k (I found someone in the market for a highly modded LS). I only put 1k down on that car in the begining so I made 5k total.
Second car....I had it for 1yr (lease term was 3yrs), I sold it on ebay for 22500 and I owed 18k on it. I put 2k down on it in the begining so I made a total of 4500 on that one.
The S2000....Ive had it for a year (lease term 3yrs). I still owe 22500 on it. I put 2.5k down on it. So in order to make any money on this one in the end I will have to keep till the end of the lease (residual 19k). So if I can sell it for over 21k in 2 years I will make my money back. Just for the record, I plan on purchasing this car when the lease is up.
I have prooved over and over that if you do it correctly, leasing is not a bad way to go. I just do it for the low monthly payments, and I only do it on cars that I know will be worth more than their residual value. But im fighting in a dead end battle...too many people belive that leasing is renting, so they wont even consider that you can benifit from a lease like I have.
My first car....I had it for 3yrs (the lease term), at the end of the 3 years I owed 12k on it and sold it for 18k (I found someone in the market for a highly modded LS). I only put 1k down on that car in the begining so I made 5k total.
Second car....I had it for 1yr (lease term was 3yrs), I sold it on ebay for 22500 and I owed 18k on it. I put 2k down on it in the begining so I made a total of 4500 on that one.
The S2000....Ive had it for a year (lease term 3yrs). I still owe 22500 on it. I put 2.5k down on it. So in order to make any money on this one in the end I will have to keep till the end of the lease (residual 19k). So if I can sell it for over 21k in 2 years I will make my money back. Just for the record, I plan on purchasing this car when the lease is up.
I have prooved over and over that if you do it correctly, leasing is not a bad way to go. I just do it for the low monthly payments, and I only do it on cars that I know will be worth more than their residual value. But im fighting in a dead end battle...too many people belive that leasing is renting, so they wont even consider that you can benifit from a lease like I have.
02-13-2003, 09:16 AM
#7
Registered User
Oh yeah, Trendy26, sounds like a great deal 
. I normally don't like to go more than 3yrs on my leases, but read my above paragraph and decide what your goal is, then decide if you can do that w/ a 4yr lease
. I normally don't like to go more than 3yrs on my leases, but read my above paragraph and decide what your goal is, then decide if you can do that w/ a 4yr lease
Trending Topics
02-13-2003, 10:36 AM
#9
Join Date: Oct 2000
Location: Tulsa, OK
Posts: 3,642
Likes: 0
Received 0 Likes
on
0 Posts
spapdx, I wouldn't say you "made" money on any of your leases. Your monthly payments paid for the depreciation that occurred. It looks like you paid more than you needed to because the residual was set too low and you got some of that back, but that's still money you paid out earlier. If you had just bought the car, you still could have probably sold it after three years and owed less than you sold it for. Leasing does let you get in for a lower monthly payment, but your interest costs are generally much higher than purchasing a car. You don't get your interest that you paid back.
02-13-2003, 11:00 AM
#10
Registered User
Join Date: Apr 2002
Location: East Bay
Posts: 507
Likes: 0
Received 0 Likes
on
0 Posts
You make some gGood points, Ace. Touche. 
But watch your tone w/ the Biz101 stuff. Your rebuttal also supports MY argument, not just yours. By virtue of your wise reminder that dealers are out to make a profit, you prove that the whole concept of (f)leasing is tilted.
And just because the residual is set (w/ a closed end lease) doesn't mean the car won't be worth less at lease end. If so & the car has too many miles on it &/or the driver's is in love with the car, both options (turn back & buyout) are too costly compared to purchasing the car new.
Also, your point about letting the dealership assume the risk of depreciation makes sense vs purchasing on one level, but I say that it won't matter if the buyer is in love with the car and is certain they will keep it long enough to enjoy it enough to feel they got their money out of it. I for one knew going in that this purchase is not an investment. I bought mine b/c it's a gorgeous high performance roadster that was (barely for me) affordable, and that I planned to drive the hell out of it.
Besides, I stongly suspected that I would want to keep it at least until I could afford a high-end Porsche or Ferrari or something else so expensive that I wouldn't trip on the resale value of the S2000.
As a person of your obvious intelligence, I'm sure you'd agree that "good deal" is in the eye of the buyer. Perhaps I'm arguing the wrong point. Maybe the real arguement is the overall costliness of a lease vs a buy. I'll concede that there are advvantages to leasing, but they come at a cost. For those that fear/dislike purchasing for whatever reason, perhaps its worth it to pay more for the flexibility a good (f)lease can provide.
But watch your tone w/ the Biz101 stuff. Your rebuttal also supports MY argument, not just yours. By virtue of your wise reminder that dealers are out to make a profit, you prove that the whole concept of (f)leasing is tilted.And just because the residual is set (w/ a closed end lease) doesn't mean the car won't be worth less at lease end. If so & the car has too many miles on it &/or the driver's is in love with the car, both options (turn back & buyout) are too costly compared to purchasing the car new.
Also, your point about letting the dealership assume the risk of depreciation makes sense vs purchasing on one level, but I say that it won't matter if the buyer is in love with the car and is certain they will keep it long enough to enjoy it enough to feel they got their money out of it. I for one knew going in that this purchase is not an investment. I bought mine b/c it's a gorgeous high performance roadster that was (barely for me) affordable, and that I planned to drive the hell out of it.
Besides, I stongly suspected that I would want to keep it at least until I could afford a high-end Porsche or Ferrari or something else so expensive that I wouldn't trip on the resale value of the S2000. As a person of your obvious intelligence, I'm sure you'd agree that "good deal" is in the eye of the buyer. Perhaps I'm arguing the wrong point. Maybe the real arguement is the overall costliness of a lease vs a buy. I'll concede that there are advvantages to leasing, but they come at a cost. For those that fear/dislike purchasing for whatever reason, perhaps its worth it to pay more for the flexibility a good (f)lease can provide.