I am working with the bank right now as I am selling my car. My current s2000 will be out of my hands in about 10 days or so. I have been planning on buying an s2000 in the area for around $27000. Its an 04 with about 2500 miles on it. Would it be better to do that or to lease one from my dad (who is GSM of Norm Reeves Honda) for:

$320 a month
$2024 down
35 months
Residual is $19800.

My notes are exactly the same as when I am buying the 04 I mentioned above since I am putting a little over $10,000 down.

I am pretty much decided on the used 04 but my dad is not that happy that I am not getting the car from him so I am giving him a chance. He swears by leases. He is also located in CA. and I am in TX. and he said he will have it dropped off for me.

What do you guys this is the better choice. I have tried learning a little about leases and have posted a topic about it before but now the time has come where I need to make the decision and I want to make the right one. Thanks alot,

--Mark

 

I would never lease a car. Think about devaluation after so many years and what you can sell a car for a few years down the line. The hit you take is almost always less than if you lease the car. If he wants to sell you a car that badly, have him find an S2K and sell it to you

 

Well I dont think I could afford a brand new s2k. And I already have a car ready to buy down here. And I also think the prices are higher in CA. So it probably wont be worth it to buy from my dad.

I just wanted to give it a shot on the lease and get some opinions. I am probably 95% sure I will buy but I wanted to get some reasons not to lease also so I have a legitament reason to give my dad on why I dont want to lease it.

 

You know there is a factory-backed lease dea; going on right now, right?

[QUOTE]
Terms and Conditions


2005 S2000 Special Featured AHFC Lease

* $299 per month for 36 months
* $2,499 capitalized cost reduction.
* $3,693 total due at lease signing (includes first month

 

Man that seems pretty good. But it also says "Taxes, license, title, registration, documentation fees, options and insurance extra."

So its probably pretty close to the same lease that my dad has for me (I guess). I think I will probably end up buying though. Im kind of afraid that I wont care for the car as much if I lease it. It just does not feel like I own it as much even though its close to the same as financing.

 

I on the other hand only lease my cars...there is an old saying:

Buy things that appreciate in value, rent (lease) those that depreciate.

I have invested the extra money into real estate and made some money, I could buy more than a few S2K's now if I cashed in.

I first leased a Civic Si for 3 years, then a 2002 S2K, then a 2004 S2K which I currently have. I love the security of never having to worry about anything other than regular maintenance as the warranty is there the whole time. I only drive about 12k miles a year, the busier I am with work, the less I am around and the less I drive, so far in the last 6 months I have only done 3000 miles.

I would say lease the car if you have the money to buy it, but want to use it for better things than a car that will depreciate. Don't stretch for a car, its just not worth it, you could easily get something that is a lot of fun for much less money.

If you were to buy the car at $27,000 over 60 months at 6.5% interest, with the same 2024 down your payment would be $520 a month. Thats $200 a month more, $2400 a year, $7200 over the course of the three years.

Honestly there is no right or wrong answer to whether you should lease or buy, a lot of it is personal preference and what else you have going on in your life. Leasing works for me, I know it doesn't for my friends who drive 25k miles a year so they buy. The most important thing is not to overextend yourself, having a car in the driveway without any gas money isn't any fun at all.

 

why i lease:

1. i can drive the fcuk out of my cars, on street & racetracks, & not worry about long term reliability

2. let someone else worry about depreciation, the residuals are always a lot higher than market value

3. sportscars get out of style fast.. who really wants to drive the same car for 7-10 yrs?

4. i dont have to b1tch & moan about every single rock chip & swirl marks for hours on s2ki

5. dont have to lay out thousands up front in 6% sales tax on purchase price

6. interest rates on my leases are lower than APRs for purchases

7. i usually assume someone else's lease, i got my s2000 w/ 0 down, $290 per month for 30 months 6% tax included

8. dont have to deal w/ fanbois & scammers when trying to sell my car private party, or endure the agony when dealing w/ used car stealerships

 

 

Another thing I need to consider is mileage. I average about 20k a year. I think the lease is for about 12 or 15k a year. My dad mentioned something about just selling it when I am ready to. How would that work?

 

Oh and money is not really a problem. Even though I am a student, I just started a new job making much more than I have been. (Currently working 2 jobs until school starts again). I also dont have that many bills and such since I live with my parents.