leasing an S2k?
Joined: Dec 2000
Posts: 4,404
Likes: 1
From: Cape Girardeau
Chris,
You are right about one side getting screwed...kinda'. When you lease, the deal is the same as a purchase for the dealer, so leave them out. Just think of leasing as renting with the owner making a guess of what the depreciation is...if he judges the market wrong it can cost him a lot of money...of course, better him than you...right? Also remember, renting to own will take it's toll, so you have to make up your mind first. Keeping it? Then buy it. Trading up in a few years? Lease it (if... you treat cars good, drive average miles, and don't plan to add a gazillion aftermarket accessories). My lease payment is $86 dollars less than my loan payment would have been, and I only pay taxes on the percentage of the car I use. Do the math...
86X36=$3,096 (savings)
Tax=2,180 (savings)
Total savings in 3 years is...$5,276!!!!!!!!!!!!!!!!!!!!!!!!!
And...I'll get a new one in 3 years, unless they stop making it of course, then I'll just keep this one...choice is mine.
Andrew
You are right about one side getting screwed...kinda'. When you lease, the deal is the same as a purchase for the dealer, so leave them out. Just think of leasing as renting with the owner making a guess of what the depreciation is...if he judges the market wrong it can cost him a lot of money...of course, better him than you...right? Also remember, renting to own will take it's toll, so you have to make up your mind first. Keeping it? Then buy it. Trading up in a few years? Lease it (if... you treat cars good, drive average miles, and don't plan to add a gazillion aftermarket accessories). My lease payment is $86 dollars less than my loan payment would have been, and I only pay taxes on the percentage of the car I use. Do the math...
86X36=$3,096 (savings)
Tax=2,180 (savings)
Total savings in 3 years is...$5,276!!!!!!!!!!!!!!!!!!!!!!!!!
And...I'll get a new one in 3 years, unless they stop making it of course, then I'll just keep this one...choice is mine.
Andrew
Registered User
Joined: Aug 2001
Posts: 47
Likes: 0
From: Bay Area
IMHO, leasing for an individual (as opposed to a business) is often a way of getting a car that you can't really afford. The worst thing about leasing is that you will never have any equity in the car and will have to start from scratch each time you get a new lease. After paying off and selling a sequence of cheaper cars I now own my 2000 Type-R, so if decide to get an S2000 (am considering it) I will only need a ~$10k loan (or even less if I buy used). The payments on a $10k loan are a lot smaller than they would be on a $32k loan. More importantly, I now have the option to keep my current car and pay nothing every month. With a lease you will (realistically) have a monthly car payment forever.
Joined: Jul 2001
Posts: 3,303
Likes: 23
From: Calgary
As for moi, I had to make this big decision when contemplating the purchase of my S2K. I am an individual not making 100,000 a year. I also have a lot of risky investments which don't help my credibility with the banks. IE lots of mortages on investment properties. While my credit is 100% perfect, my income would not be sufficient to qualify me for a loan as big as one needed for the S2K. Similarly, since I have numerous properties, I can write off the S2k as a business expense, when in all reality I will only be driving it for myself on the weekends. I do, however, intend on keeping the car for a long long time.
For me, leasing just makes more sense. I can get a car that technically, according to the banks, I can't afford, and also , get a nice tax refund at the end of the year, since my realestate investments are now operating at a loss!!
Just my 02c
Asif
For me, leasing just makes more sense. I can get a car that technically, according to the banks, I can't afford, and also , get a nice tax refund at the end of the year, since my realestate investments are now operating at a loss!!
Just my 02c
Asif
Joined: Dec 2000
Posts: 4,404
Likes: 1
From: Cape Girardeau
You fella's that talk of Equity in a car crack me up. Let me let you in on a little secret...psssst...come'ere... YOU DON'T HAVE ANY EQUITY IN A CAR AFTER 3 YEARS!!!!!!!!!!!! Did I say that loud enough? Unless your car payment is $900 a month...forget it. I used to work in the car business, I've been a salesperson, F&I, and GSM, so the facts remain. Now if you plan to keep the car, and not trade, go ahead and buy, but if you plan to trade and are foolish enough to think you'll have some sort of equity in 3 years I have only one thing to say to you... "A fool and his money are soon parted."
Andrew
Andrew
Registered User
Joined: Aug 2001
Posts: 47
Likes: 0
From: Bay Area
S2kguy> You fella's that talk of Equity in a car crack me up. Let me let you in on a little secret...psssst...come'ere... YOU DON'T HAVE ANY EQUITY IN A CAR AFTER 3 YEARS!!!!!!!!!!!!
Well, my rule of thumb is that if I can't afford to pay off a car in full in three years, then I can't afford the car. Once upon a time, that was the standard reasoning when buying a car.
Well, my rule of thumb is that if I can't afford to pay off a car in full in three years, then I can't afford the car. Once upon a time, that was the standard reasoning when buying a car.
Joined: Jul 2001
Posts: 3,303
Likes: 23
From: Calgary
F20C,
I hear ya. I have leased before, and when it came to selling the vehicle after exactly 3 years (with 1 yr left to go) I called Honda Canada, asked for the payout, including taxes, and sold the vehicle for $2500 more than that amount. I never had to go about trying to get the title in my name. It simply got transferred from Honda Canada to the new owners name who bought the vehicle cash. No problemo there.
Asif
I hear ya. I have leased before, and when it came to selling the vehicle after exactly 3 years (with 1 yr left to go) I called Honda Canada, asked for the payout, including taxes, and sold the vehicle for $2500 more than that amount. I never had to go about trying to get the title in my name. It simply got transferred from Honda Canada to the new owners name who bought the vehicle cash. No problemo there.
Asif