Why I hate leasing:

1) Introduces too many other variables (i.e. lease rate, res. value, etc.) into the deal that give lessor another chance to stick it to you. In my experience, the money factor tends to be higher than the int. rate I can get from my badass credit union.
2) Lessors get a tax break from depreciating the car...this s/b reflected in a lease rate subsidy, but what portion of this benefit do you get?
3) You're stuck w/ the car for the entire lease term, or be prepared to bend over. I know most of us would want to part w/ our cars anytime soon, but what if your family situation unexpectedly changes, or you decide you need to tow another newly acquired toy?
4) Don't go over your mileage limit, or be prepared to bend over.
5) What about mods? Complicates the situation, at least limiting your freedom or creating more of a hassle at the lease termination.
6) Annual personal property taxes on leased vehicles
7) Good idea to buy gap ins. if car is totaled during lease term. #6 & 7 are incremental costs vs. ownership.
8) At end of lease term, you have nothing but freedom from your lease contract, and possibly a purchase option for the vehicle.
9) Will you maintain it as well as an owned vehicle, or will you be tempted to buy el-cheapo tires near the end of your lease term? The desire to save $ on something you don't own could compromise your enjoyment (& safety) of the car.

I had a friend who just got out of a lease on a car he hated. He felt stuck, and vowed never to lease again. You can get many of the same cash flow benefits of leasing w/o the downsides by financing w/ a balloon pmt.

My $.02...

 

[QUOTE]Originally posted by Chris S
[B]
I had a friend who just got out of a lease on a car he hated.

 

[QUOTE]Originally posted by ironwedge
[B]

I'm quite certain that I could drive my YM2000 S2000 for three years, at which time it will paid for, and sell it for more than $6000 (barring damage, etc.).

 

Oh yeah, one more thing, my investment will still be less in 3 years, you can't fight the numbers.

Andrew

 

Nobody is going to argue your numbers..... or that your investment on the car is less than a buyers would be....... but the fact remains that you DON'T HAVE THE CAR at the end either. Someone in an earlier post made referrence to how a person would/would not take care of a car that they don't own (leased)........I agree totally that it makes a difference, and the Pride Of Ownership speaks for itself.

 

Someone mentioned the Balloon Payment Plan. Audi offers this .. I assume Honda does (Leadership Program) ? This is what I plan on using...IF I still like the car in a couple of years I can pay it off and keep it for a looong time. Lower payments - one buys the car in the back end instead of up front. Keep MY money now and worry about everything else later

 

This is a good point and is sometimes a good option especially on expensive cars that hold their value well. However, if you decide to sell the car prior to the end of the term...you've paid the entire tax on the car which is not the case when leasing.

To lease or purchase...depends on your situation. The lending institution is going to make money on you either way.

If you do lease however, my recommendation is to compare the offered lease rate with other financial institutions (just as you would an interest rate) & make sure the contract offers a purchase option. For example, lets say you lease an S for 4 years and your contracted residual is 20K. At the end of the lease you find out you can easily sell your S for 22K....in that case, you sure wouldn't want to hand over your S.

Whether purchase or lease, the buyer should maintain a healthy skepticism regarding the lease rate or interest rate. Dealerships will and do make money selling you a rate which is higher than offered by the lending institution.

 

[QUOTE]Originally posted by Radster
[B]

 

My dealership has a leasing department:

www.baystateleasing.com

Simple interest 60 month leases (low payments) that normally tie you to the car for about 36 months. PM me if you want to lease an S2000 and I will get you one with no BS.

 

60 month lease that ties you for 36 months? Hmmm... This kills the "it's outta' warranty so lets get a new one" vibe for me. Also, how is it a 60 month lease that only ties you for 36 months? Inquiring minds want to know...

Andrew