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Discussion Starter #1
My '02 EXL-RES is finally here, but there is a snag at the dealer. I am thinking about leasing as the lease numbers I found online are very attractive:
-$430/month
-48 months
-15K miles/year
-$450 refundable security deposit.

Dealer could not come close. They are at $500/month and said that the internet numbers were just a guide and you could not actually lease an EXL-RES for that amount of money. I have until tomorrow at 4:00 pm to decide on what to do.

Any advice would be greatly appreciated.

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Trying to sell my '00 TW LX to make room for '02 TW EXL-RES

[This message has been edited by fourmoshers (edited 03-13-2002).]
 

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So-called "leasing" is actually renting the car. At the end of the rental period you own nothing and have to go out and start all over again. You never will escape making car payments. If you buy the car, you own it after all payments are made.

Sure, there's the argument that you may have lower monthly payments with renting. That's because you don't own the car at the end of 48 months.

If someone can't afford to buy a certain model, maybe they shouldn't be renting it. Renting costs more than buying in the long run.
 

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I used to work for Toyota Financial Services and worked in the leasing department. Leasing is suitable for customers who don't mind making monthly car payments forever and want to get new vehicle every couple of years. However, if you plan to purchase the ODY after your lease matures, I would highly discourage leasing because you will pay a lot more for the ODY than if you had financed it out right. Also, if you plan to lease, make sure you take good care of your ODY or you will most likely be charged for excess wear and tear in addition to any excess mileage. Anyway, if you know the residual value (amount to purchase the vehicle at the end of the lease), you can go to this website and calculate the equivalent interest rate: http://www.calcpartner.com/csLeaseRate.asp?mainframe.htm

Hope this helps.
 

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My husband and I toyed around with the idea of leasing....then we saw the figures for leasing a car that you won't own in the long run. I agree, leasing is for someone who wants to get a new car every 2-3 years. We decided that we may as well buy it for payments a bit higher and will own it in the end. Good luck.

Dana
 

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<font face="Verdana, Arial" size="2">Originally posted by Steve P:
So-called "leasing" is actually renting the car. At the end of the rental period you own nothing and have to go out and start all over again. You never will escape making car payments. If you buy the car, you own it after all payments are made.

Sure, there's the argument that you may have lower monthly payments with renting. That's because you don't own the car at the end of 48 months.

If someone can't afford to buy a certain model, maybe they shouldn't be renting it. Renting costs more than buying in the long run.
</font>

I just got through "renting" my '99 EX and dumped it on the dealer in exchange for a 2002 NAVI. Since I was such a good "renter" he wanted to give me a check for $3000 and "rent" me the 2002 for the same payment even though it has $3,500 more in options. Instead of taking the cash I had them apply it as a downpayment and reduced my monthly by $100. Which is sort of nice, because I cannot afford the NAVI in the first place, that's why I am "renting".
I suggest your "rent" theory needs a better basis in facts and really contributes nothing to helping make a decision one way or another.
 

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<font face="Verdana, Arial" size="2">Originally posted by legend700:
.... Which is sort of nice, because I cannot afford the NAVI in the first place, that's why I am "renting". I suggest your "rent" theory needs a better basis in facts and really contributes nothing to helping make a decision one way or another.
</font>
There is nothing false about my statements. As a renter you will never be out from under car payments. If you had bought your '99 and financed over 4 years, after just one more year you would own it. As it is, with the '02 you just locked yourself into another 3 years (4 years, whatever the rental contract term) of car payments.

With buying a car you own it after the car payments are complete. If you kept a car for 8 years, after a typical four years of financing your payments are $0.00 per month. Save a mere 1/2 of the monthly rental fee during that second four years and you'll have a hefty down payment built up for the next purchase. Sure, you pay for maintenance when you own a car, but after all we're mostly discussing Hondas here!
It's clear which is less costly in the long run.

As you say, you are renting as you couldn't afford the NAVI otherwise. Yes, your single monthly payments are indeed lower than purchase financing. I didn't say they weren't. But you are still paying more overall for your vehicles than if you were to buy a more affordable car and keep it longer than 3-4 years.
 

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<font face="Verdana, Arial" size="2">Originally posted by legend700:

Since I was such a good "renter" he wanted to give me a check for $3000 and "rent" me the 2002 for the same payment even though it has $3,500 more in options. Instead of taking the cash I had them apply it as a downpayment...
</font>
Wow, and I thought the balloon payment thingy worked the other way around. Explain this... you put a "downpayment" on a vehicle you will never own? The dealer gave you $3,000 CASH (Check) for a LEASED 99 Ody?

So you earned equity in a vehicle that you never had the title for... America, what a country!


fourmosher
What did you decide to do? I think most would agree with Steve P about leasing, especially with a "high" wear and tear family vehicle.
 

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<font face="Verdana, Arial" size="2">Originally posted by cmt4:
Wow, and I thought the balloon payment thingy worked the other way around. Explain this... you put a "downpayment" on a vehicle you will never own? The dealer gave you $3,000 CASH (Check) for a LEASED 99 Ody?

So you earned equity in a vehicle that you never had the title for... America, what a country!

What did you decide to do? I think most would agree with Steve P about leasing, especially with a "high" wear and tear family vehicle.
</font>
I wondered if he was turning in the 1999 early, and the dealer was able to get more on the dealer's resale of the 1999. The dealer then offered that money as an incentive to get legend700 to sign up for a new contract.

I'm just guessing, as all the details weren't given.
 

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Discussion Starter #11
I obviously was not clear in my question as I did not want to start "Buying vs. Leasing - Round 75".

I was only asking about the difference in lease figures from the Honda web site ($431/mo) versus the dealer at $499/month. Dealer said I would not be able to lease at $431. Any thoughts?

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Trying to sell my '00 TW LX to make room for '02 TW EXL-RES
 
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