my question is why are you selling your 02 s2k for a new one. it would be cheaper for you to hold on to that in the long run, but if you must i say buy it if you are going to drive that many miles.

 

Well I got a really good deal on the car I bought. Thousands below blue book at the time. It was not the exact color I wanted but since it was such a good deal I could not pass it up. Now I can get out of it without losing very much money at all and get the exact car I want. I have about 9k equity and around 1500 in the bank for the car.

Also want to sell it because it has almost 50k miles and depreciation is really going to start coming into play pretty soon.

 

Yeah I was referring to buying used. New cars are just as bad investments as leasing, if not worse due to the horrible depreciation a car goes through the first 3-4 years after it's out.

Buying quality used cars is definitely the way to go

 

If your dad is the GSM, why dont you get a used 04 or 05 thru a dealer auction. They sure are cheaper than finding it anywhere else.

 

That seems like it would be a good idea as well. I dont think I will be able to do that now though because of time issues since my car is about to be gone.

 

Check out www.leasetrader.com, and you could assume someone else's lease for short money and have to put down zero.

 

It seems like the dealer is kinda low-balling the residual value.....historically, our cars have been worth more than $20,000 after 3 years. Try finding an MY02 in good condition for $20,000.....very hard to do. What is the interest rate on which the loan payment is calculated? That is another important aspect of any lease.

Go buy a TI-83 graphing calculator (if you do not already have one), and use the TVM Solver function. This function will allow you to enter the current value of the car, down payment, residual value, and the interest rate on which its based. It will then spit out a number in the PMT section, that should be the payment amount. Sometimes dealers hike the payments a bit for their profit, which should be 0 on the lease, seeing as they are getting the car back for free to re-sell in 36 months.

Personally, I would not take it unless the interest rate is under 5% and the residual is around (if not over) $21,000. The problem with low-balling the residual is that you end up paying the extra $1000 or so in your payments. It does make it a bit more practical if you are looking to buy-out the lease towards the end (you will end up paying less for the car than it is worth).

John

 

the current honda lease on S2000's is a great option IMHO.....i would not buy a used MY04 for $27K!!! That's way overpriced...seems like your dad should be able to get you in a new, leftover MY05 for very close to that.... GSM = sales manager???? come on I think he can do it

 

All you need to do is run the numbers. You know the lease costs. Now run the same numbers on the purchase. Put the same amount down as the lease and make the same payment each month. Figure out where you end up on both cars. I have done this for 20 years and have yet to find a lease better then a purchase. Leased vehicles account for far more profit to the dealers then regular sales. There is a reason for that. Also keep in mind hidden charges. A friend just bought his Toyota off lease and got hit with over 1000 in costs to buy his own car.
If you run the numbers and the lease is better then by all means lease the car. If not buy.

 

If it were me, I would buy the car from my father for two reasons:

1. He is your father - 'nough said
2. He is your father - if something goes wrong with the plan/car he sells you he can always back you up.

I wouldn't even get into the details of how I purchased it too much - he's your father, he should take care of you

I'm also a dealer and it would break my heart if an immediate family member bought a car I could have helped him/her with. My aunt bought a car here in the states to ship to England because of the family bond.