Hello Gang:

An S2000 owner referred me to this forum and I was wondering if I can get your thoughts on my pending lease of a new 2005 S2000. Right now, Honda has a special on S2000 leases nationwide with $2,499 down and $299 per month for 36 months (plus fees, of course). This will be the first time that I'll be leasing and I would like to avoid getting caught in the numbers game. So, for those of you who are familiar with leasing, would you mind enlightening me on the following?

1) What is the residual value on a 2005 S2000 after 36 months? Is this a negotiable item?
2) What is the money factor currently for Honda cars that you've seen?
3) I was told that on top of the $2,499 down, there's a bank fee, which I believe is about $595. Is it reasonable?
4) When leasing, I read that one should always negotiate the price of the car first, and not the monthly payments. I understand this since the payment is directly related to the cost of the car (as if one is purchasing). My question is- for those who have leased cars, where do you start negotiating?
5) Are there any hidden costs that I should be aware of?
6) Anything on the leasing contract that I should pay special attention to?

Thank you in advance. I went to three dealers yesterday and got three different prices from the same Honda promotion so I am a little worried about being ripped off. Any help/advise is greatly appreciated.

 

Hate to be your first reply but all I know is my Daddy always told me, "Never, under any circumstances, lease a car!!!"

Sorry...I guess it works for some people.

 

That lease isn't too bad from the surface.

Yes, it's best to negotiate the price of the car first. To the dealership, it doesn't matter how you finance the car, they are getting a check for the sale price either way. Leases a favorable for newer cars (an 06 would be better than an 05) unless the manufacturer is subsidizing the lease some.

You want as little money down as possible and don't over estimate your mileage allowance or you'll be paying for miles you don't use, like I am.

The buy back at the end doesn't really matter unless you intend to buy the car in the end, and that is self defeating because your loan payments after the lease are going to more than if you just lease another new one when this car's lease expires.

I think leasing is a good option if you want to have a new car every 3 years and don't mind perpetually having a car payment, like rent. You could never have the same car for a similar loan payment with no money down.

 

The sad thing about a lease is that you're getting no equity for your investment. It has to suck to be constantly considering your mileage also. It seems like most people who lease are in over their heads and are driving a car that is priced out of their range. New York City is a great example of lease heaven. A lot of the hot cars in the city are leased.

I'm not implying that this is any specific person's situation...just saying.

 

One's realistic budget and mileage requirements should be taken into consideration first. If your car payment is a stretch, then you should look for a less expensive car to lease.

I over estimated how many miles a year I thought I needed, and am paying for it. I am a consultant and wasn't sure if I would drive to work or take public trans. as I do now. I didn't want to pay for miles at the end of the lease and the mileage allowance up front was in my budget.

I intend to lease again after the S2000 contract is done. I still have 1.5 years left on the lease.

One other thing to keep in mind is that not all cars of the same dollar value lease at the same rates. Two cars that are $32K may come out to lease prices that are dramatically different (eg: S2000 vs. STi). STi is like $150.00+ more a month to lease and costs the about the same as S2000.

 

the s2000 has such a high resale "residule" sp.. value. that the llease factor is very low..
the accord and civic are a formula like .001522 as a multiplier.. the s2000 is .000815
this is the money factor to determine the cost of the lease..

the s2000 is the best value in a lease that honda has now.
due to the resale value of the car.

leasing is only a good deal if :

you own a business and can run it thru as a company car.. all expenses, payments, etc are deductable.. right off the top

i have leased several cars thru the company.. never had a problem.
i have alway gotten out of them early , without losing money too !!

if you lease an american car.. well.. good luck

ie:
i love caddy's , new ones..
45k-55k list.. one year old.. selling in low 30's high 20's ..
ouch .

you will get beaten like a red headed step child if you try to get out !!

watch your mileage.. this is the biggest problem with leases.. people go for the lower miles to get the money $$ savings.. and then go over.. and pay .. or park it for the last 6 months and pay the lease..
not smart
i have 4 cars..
so i do the 12k miles per year.. its easy for me

not for everyone.

 

I agree with all you're saying except: If your car payment is a stretch, then you should look for a less expensive car to BUY.

I don't want to be the anti-lease guy anymore. I'm screwing up the thread!

Sorry...good luck and hope to see you on the road sometime soon with an S regardless of how you finance it!

 

If he can't afford to lease an S2000, he definetely can't afford to buy one. No money down on a loan for an S2000 is probably $650+ a month, where a lease is well under $500, and in his quoted lease around $300

To get a loan on a car for under $300.00 a month, he's be lucky to get a Civc, never mind an S2000.

 

Properly negotiated, a lease is the same $'s as a buy. The advantage of little money down and the option to buy at the end (if the car is a keeper) are compelling to many, whether they own a business or not.

I lease or buy, depending on who has the lowest financing rate and/or incentives. I've made money on leases, and worst case, came out even giving the car back.

If you keep cars forever, a lease can still make sense, as you can buy it at the end with the knowlege of the cars history and without getting dinged on the miles. Get a loan amortization program, find a lease calculator (I have an excel spreadsheet that anyone is welcome to) and you'll see a lease is basically a purchase with the balloon at the end, not the beginning.

As far as Honda's current deal, find out the money rate, residual %, sales price of the car, and it's easy enough to calculate what kind of deal it is. They will provide this info if you ask/insist upon it.

fwiw, every time my car makes a strange sound or does something unusual, I'm glad I'm in a lease this time around.


Mark

 

Thanks for all of your input so far. I'd like to clear up a couple of things. I am considering leasing because I'm a real car nut and very particular with my current car (old BMW that I've owned since new for 17 years!) and don't want to have to worry about a little ding here and there when parking with the S2000 and just really want to drive and enjoy the car for 3 years. Second, mileage is not an issue for me since I'd have more than one car. Third, living on the East Coast, there may be times that I'll have to drive it in snow and I'd prefer not to deal with things like rust over the long run. If I was still living in the Bay Area, I'd buy the car instead of leasing for sure.

With my situation, I feel that leasing is a good option for me right now. I can afford to buy the car, that's for certain. I was just asking these questions to make sure I get a fair lease deal.

Again, thanks for all of your input and I'd welcome more of your thoughts.