Honda sets the residuals at where they feel is fair, HOWEVER, you guys need to be smart and work what ever program is best at the time of purchase. Sometimes you can come out ahead with a honda lease over a purchase. For instance this month a lease on a 2004 Pilot can save you about 1000-1200 OVER financing it at 4.39% (if you can get that rate) because Honda has a better money factor for the lease than the interest rate to buy it. BE SMART, WORK THE PROGRAMS THAT ARE OUT.

If they have 2.9% for 60mos on a buy and 2.5 as a money factor on a lease, (assuming you can afford the payments) then buy it. You need to look are the total cost with interest and your monthly budget for the buy and the lease to see where the best deal is. FINANCING DOES NOT SAVE YOU MONEY EVERY TIME (most of the time, not every time. )

The s2000 buy rate now with no security deposit is 2.45, not 2.05. The money factor and residuals can change the same way interest rates do. The difference is if you want to pay a little per month and decide at the end of the lease if it is worth buying, or pay more per month and to finance and loose your money when you sell it? If you can afford the payments, buy it and take your chance with what ever the market does when you get sick of it and want a new nsx when it comes out in a few years (or M3, or what ever).

here is todays math on an s2000 at 1000.00 over invoice =31155.00 and using 7.75% tax here in Orange County, if you actually think you will keep it longer than 5 years.

LEASE:
12000 mi/year
Down payment (drive-off) $ 755.00 +
48mos x $438.38 = $21042.24 +
residual at 54% = $18071.10 = Total $39868.34

Fianace at best rate available from Honda (4.39%((need 720+ credit& 5years history)):
Down payment $ 755.00 +
60mos x $617.03 = $37021.80 = Total $37776.80

Total loss at TODAYS numbers to Lease = <$2091.54>
KEEP IN MIND you only actually save this IF you keep your car for 5years or longer AND do not facor in what you will loose when you sell it. (cars do not go up in value)

Total payment per month difference = $ 178.65
I can think of alot of things to do with an extra 178 per month (Morton's steak with the wife sounds nice)

The guy who leased his car can hand in the keys after 4 years of enjoying it and start fresh with less out of pocket each month and enjoyed the same car you spent 178.00 per month more on.

If the guy who financed his car tries to get rid of it in 4 years I would bet he would loose more than the $2000.00 that he thought he was saving.

Cash is best but other than that you need to work the deal and see what is best and if you are actually going to keep the car for 5 years or more. If not, why pay more per month, trade in the car (or sell it) in 4 years and still loose more than $2000? If you keep cars a long time (which not many do) you can possibly save the 2000.00. Let me know if I am way off here, it's late
Matt
(yes, I work for a dealer, that does not change the math)

 

I'm not leasing, but financing. I looked into leasing, and it just didn't seem like a better deal. I put $6000 down and my payments are a measly $258/month.

 

pierceman is exactly right. dont think of leasing as renting the car. sometimes it pays to lease and then buy out the car. gotta be smart about your money. Leasing allows u to buy a more expensive car and allows you to get rid of it w/o a hassle when you want a new car.

 

[QUOTE=toosoonjunior,Oct 4 2004, 09:14 AM] I'm not leasing, but financing.

 

Just an opinion here but, leasing is just giving your money away. Leasing started out as an option for companys that wanted to write the entire amount of the car off the year you took possesion of the car. It's only been since car companys took a new approach to leasing and started to market it and package it in ways that fooled or made it appealing to buyers that people started to buy into all of this. Anyway you work out the figures, your loosing out.

Make your best deal with price, get all the add-ons you can with your salesperson, place as much as you can down, take the biggest payments your able to, pay it off. You now have equity in which to work with.

 

You are 100% wrong. Leasing is not just for companies. There are restrictions. For the most part S2k Leases, are NOT for business, unless your CPA is a magician. (Mine is). Most tax deducatable leases are SUV or vehicles over 6000+ Lbs. (Hence why you see so many Porche SUV as of Late).

Leasing is a GREAT alternative to those who don't want to allocate much cash down. Like Pierceman said, its only a difference of 2-3K at most at the end of the deal. Like myself, it is a tax write of, but I can allocate more money into the company or my personal business.

For those who are in debt, use that extra 10,000 down and pay off your creditcard debt @ 7-12% and use to finance a 5% car, net savings of 2-4% plus its a tax write off.

Another senario:

Lets say you lease a car for 400 X 48 months=19,200 and your buy out value is 22000. Total cost: 41,000. After 4 years

Now you finance a car @ 5%. 10,000 and 475.00/m for 60 months =38,500.
Net loss of 2,500. Now lets look at the big picture. While you spend money on a 15K, 30K, 45K, 60K, 75K 90K (5 years assumition), that has cost you well over 2,000 if you brought the car into the dealer. Now if you leased a car for 48 months, (you can drive the CRAP out of the car, change its oil every 7K, not do ONE SINGLE TUNE UP if you please) and still come out ahead, and still have another 36K warranty on your next car. You never have to worry about maintanance.

The only time the car is in your favor, if if you keep it >5-7 years, depending on models ie: Accords.

My .02

 

[QUOTE=Back-cracker,Nov 7 2004, 09:53 AM]You are 100% wrong.

 

the best thing about leasing is resale risk.

I feel sorry for those poor saps that bought a domestic near sticker in 2000, and are trying to sell it now. The 0% GM/ford/dmx pulled out of their hats demolished domestic residuals.

when you lease, you are shielded from that. If you only intend to have the car a few years, leasing IS the superior option.

 

i agree w/ comments above - honda FS gives residual value of $19,700 for a 4 yr/48k mile lease.

try selling a 48k mile 4 yr old s2k for $19700..

 

The cheapest 00 S2k that I've seen is 17.5K Avg is 19K, anything is possible with the right people (I've seen worst)

BC