Honda Odyssey Forum banner

Lease / Finance?

1713 Views 9 Replies 9 Participants Last post by  Homer
I am struggling b/w leasing / financing. I basically will keep the vehicle for around 4 years. If I lease, I simply just pay per month and when the 48 month is reach, I just have to return the vehicle. Again, I always have to option to purchase..which I don't think I will, but want to keep this option open, just in case I love the vehicle. If I finance, I will do a 60 month finance, but most likely will sell the vehicle after 4/5 years (maybe b4 the 60 month finance period ends). I am a newbrie in this lease and finance terms. So I don't know the pros and cons. Can some of u give me some suggestion as to which one will cost me less?
1 - 1 of 10 Posts
There is an entirely different way to look at this equation that most people don't see. Leasing can be viewed as just another way to finance. The only way to make a truly informed decision is to calculate the imputed interest rate on the lease (us accountants know how to do that, and I would always be available to do that calculation for anybody on this board). Further, you have to have a very realistic (conservative) view of what you could sell the vehicle for on the open market at the end of the lease.

Additionally, with leasing, you pay your sales tax over the life of the lease, not up front - so you are in essence financing less.

With that information, you can calculate how much interest you are really paying over the life of the financing.

It's a very complicated topic, and my explanation probably only makes it worse. I have gone both routes, but only after very careful consideration and calculation.

1 - 1 of 10 Posts
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.