[QUOTE]Originally posted by DFul4d
I am leasing an 04 for about $425 a month w/ $0 down.

 

Most of the posts again point out that buying is better then leasing. Most people just don't understand how to run the numbers. Lets look at the one set of number provided.

3 year lease at 465 per month. 1000 down. Residual should be around 21,000 to buy the car at the end of the lease.

If you purchased using the unsecured line of credit mentioned by the one poster at 4% interest and the purchase price was 32,000 with 1000 down you would owe 16800 on the car after 3 years. You would also have the advantage of unlimited milege. Yes taxes would be higher however in the end they work out about the same. If you buy the car off lease you will pay the rest of the taxes and if you trade the car as an owner you recoup the taxes on the remaining value. One last thing to remember is that lease companies are increasingly charging extra fee's to turn a car in off of lease if the car does not meet their standard of normal wear and tear. These charges can be large and hard to dispute.
George

 

my 03' lease:

0 down, 36months 12K a year. 360$ a month.
purchased in june of 03

 

These purchase interest rates being mentioned seem unrealistically low. 5% is the going rate for car loans.

Honda leasing provides gap insurance and covers the first $1500 in any damages when returning the car off lease.

If you buy the car after leasing it, then it will cost you more in the long run to lease rather than buy. Unless you can renegotiate the residual at the end of the lease, in which case it might cost less to lease and then buy. We aren't talking a fortune here either when describing the difference in what's paid. If you know you are going to buy the car and have the money at this point in your life, then buying is still better in that it saves you a couple grand in the long run to just buy it.

But if you are not planning to keep the car for a long time and in fact will want a new car in 4 years, then you are better off leasing. You won't get ripped off on trade in, will pay less taxes, and will have signifcantly lower payments, provided that you don't significantly exceed the mileage allowed. Over the 4 years you would have paid somewhere in the neighborhood of $14,000 less to lease the same car rather than buying it (combined savings in payments, insurance, Etc.).

 

4% is available at any bank on a home equity. I just looked at a new 2004 and they offered me 3.5% financing. Honda has had periodic deals at 2.9%. The Home equity would be fully tax deductable which makes it even better from a cost standpoint.

 

Thanks guys good info on both options....lease vs buy...a little more info on me..I want a new car every 3-4 at this point in my life..i,m 27..no kids..make good money...basically a pimpLOL: ..laughs... and want to enjoy this point in my life with a new sports car...and yeah you do get raped on trading in a new car..dealers always throw low book at ya.


I,m got going to mod much..maybe intake. and am looking for a zero out of pocket lease...36-39 months 12 k a year and i,m thinking in the low 400's..that works for me...anyone done a 36 or 39 momnth lease 12 k a year on an 04? what was the selling price? residual? Thanks guys..i,m itching for a silverstone/red/black::

 

[QUOTE]Originally posted by GeorgeP
4% is available at any bank on a home equity. I just looked at a new 2004 and they offered me 3.5% financing. Honda has had periodic deals at 2.9%.

 

You are correct, it is a choice. What I am saying however is to make sure you run the numbers and are making the right choice. Leases are a dealers most profitable product. A recent article said dealers make as much as 3 times the profit on an average lease then a sale. If they are making money the buyer is paying more in the end. No one situation fits all people. Run the numbers and decide what is right for you.l

 

bump

 

I agree that leasing will be more expensive, but there are other disadvantages worth considering:

• You're stuck in a lease rut: You don't have a down payment for your next car, so you're compelled to lease your next car
  
• You don't have the option of having a car without making payments at some point in time.
  
• As mentioned before: If there is damage, you have to pay for it when you turn your car in
  
• The most economical thing you can do is keep a car for a long time. Repair costs are rarely as expensive as depreciation on a new car.

Remember, an automobile is not an investment. It is a means of getting from point A to point B. You pay extra for the style, prestige, speed, comfort, security, etc. How much more you want to pay for these added features is up to you.