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I've cranked the numbers for the 3 offers and assuming a 3% discount rate, the NPV of the cash flows show that the last offer, the no money down first payment, is the best financial choice for either a close end lease or to lease and buy at the end of the lease.
Some lease programs allow multiple security deposits that you get back & the end of the lease to reduce the monthly payment. Better plan than actual cash down.
Roll your eyes all you want. Why lease if you know you are going to buy? It's your money to throw away,. have at it.
Oh , don't take it the w wrong way, I m just asking because it's my first lease...
I thougt if i give money down, my monthly payments would be lower, and lower price at the end to purchase.
Correct me if I'm wrong
Oh , don't take it the w wrong way, I m just asking because it's my first lease...
I thougt if i give money down, my monthly payments would be lower, and lower price at the end to purchase.
Correct me if I'm wrong
No worries. Sorry for being a bit harsh.
You are correct, that is why you come in with cash, to lower the monthly but you are spending that out of pocket now. It's basically the same money spent, trickle over time or all at once.
^^ Further to what Stew said, which I agree, if the lease rates are super low, then leave your cash in the bank and let it earn some interest. Even if you are going to buy your lease at the end, if the rates are low, just keep your money in the bank.
One advantage is if your car gets into a serious accident and you don't want to buy your car at the end of your lease, you will not take the depreciation on the vehicle and you are not forced to buy it out. Just have it professionally repaired, bring it back and walk away...the same can be said if you get a lemon and just don't want anything to do with it at the end.
Now if the lease rates are high, as BEAR mentioned, taking advantage of the MSD is a great way to buy down the rate but still have that money refunded at the end of your lease....Keep in mind, this is a security deposit, not a damage deposit. The dealer can't keep it
STEW....Stop being so harsh, learn from this softie *LMAO* - teasing ya buddy
What am I missing that two columns have the same down payment but different monthly rates?
I had the same question. I think that might be two different offers from two dealers- looks like the car's initial price is the difference in terms that causes the payment difference?
Oh , don't take it the w wrong way, I m just asking because it's my first lease...
I thougt if i give money down, my monthly payments would be lower, and lower price at the end to purchase.
Correct me if I'm wrong
That would be incorrect.
Your purchase price at the end is the same no matter how much money you put down. Also if for any reason your car is a total loss, you will loose any money that you put down. When you lease, the car still belongs to the leasing company. With most leasing rates so low, i would keep whatever money you were going to put into the down payment, and put it into an emergency fund.
^^ I respectfully disagree....I much prefer leasing over buying given my lifestyle, the low mileage and how pristine I keep my vehicles. It is certainly not for everyone, but but for some, it is a great option.
^^ I respectfully disagree....I much prefer leasing over buying given my lifestyle, the low mileage and how pristine I keep my vehicles. It is certainly not for everyone, but but for some, it is a great option.
This. I normally buy, but I don't begrudge people who lease. They all have their own reasons and not all of them are going above their means. Some people just like a new car every 3 years, and leasing is a more economical and trouble-free way of doing that than buying is, provided the lessee does not drive an atypically large amount and keeps their car in good condition (I would suggest people with young children don't lease, lol).
Leasing is a prison. If you cannot afford the payment to buy, you are buying beyond your means.
I disagree as well. I've leased only once and it was a great idea. During the lease, they ate my negative equity as I was upside down by almost 6k due to the fact I tried an SUV for the first time years ago when gas prices were crazy high and I had to fill up twice a week. So, I traded that sucker in for a loss. So to eat up the difference, I leased for 2yrs. Negative equity gone, now buying again without the extra weight from negative equity.
Leasing is a prison. If you cannot afford the payment to buy, you are buying beyond your means.
Originally Posted by weather
^^ I respectfully disagree....I much prefer leasing over buying given my lifestyle, the low mileage and how pristine I keep my vehicles. It is certainly not for everyone, but but for some, it is a great option.
Originally Posted by youngTL
This. I normally buy, but I don't begrudge people who lease. They all have their own reasons and not all of them are going above their means. Some people just like a new car every 3 years, and leasing is a more economical and trouble-free way of doing that than buying is, provided the lessee does not drive an atypically large amount and keeps their car in good condition (I would suggest people with young children don't lease, lol).
Originally Posted by keith7120
I disagree as well. I've leased only once and it was a great idea. During the lease, they ate my negative equity as I was upside down by almost 6k due to the fact I tried an SUV for the first time years ago when gas prices were crazy high and I had to fill up twice a week. So, I traded that sucker in for a loss. So to eat up the difference, I leased for 2yrs. Negative equity gone, now buying again without the extra weight from negative equity.
I also disagree.. Some of my cars I have bought and some I have leased. When I lease the reason is simple, in most cases me and my wife like driving a new vehicle every 3 years, and since I am OCD with caring for them it has never been a problem, even when my three boys were young.
But here is what I don't get, why do people who don't like leasing for one reason or another, always feel the need to knock and tell those who do like leasing that they're leasing because they really can't afford the vehicle.
IMO for someone to say people lease because they can't afford to buy the vehicle, and are living beyond their means is an ignorant statement. How does anyone know what the reasoning or financial position is of someone you don't even know?
Some people love to pump their chest and tell everyone they paid cash for their vehicle. IMO I think it's crazy to tie up cash on an asset that depreciates 20% plus moments after taking delivery, especially with interest rates being low for leasing and financing. But I don't go around knocking these people, if they're happy good for them.
After-all why should it matter to me how strangers spend their money.
I think that some may have objected to the "buying beyond your means" vs the prison portion of the comment....or maybe just me.
i do not typically lease since I put on so many miles and keep my cars for many years, but I might actually consider it for some cars if I did not want to hold onto it for my typical 10 years. Three years with the current TLX might be more than enough.
If my current car crapped out today, I would consider a short lease until Acura got the MMR out so I could see their direction. Just my 2 cents.....and money is not an issue for many lease holders I suspect.
...I have had dealers buy back my lease...I would do a 48 month lease and after 30 months, the dealer would buy my lease, put the vehicle on their lot and would not have any penalty whatsoever.
I think that some may have objected to the "buying beyond your means" vs the prison portion of the comment....or maybe just me.
i do not typically lease since I put on so many miles and keep my cars for many years, but I might actually consider it for some cars if I did not want to hold onto it for my typical 10 years. Three years with the current TLX might be more than enough.
If my current car crapped out today, I would consider a short lease until Acura got the MMR out so I could see their direction. Just my 2 cents.....and money is not an issue for many lease holders I suspect.
^Exactly - It doesn't matter to me if a stranger leases, finances or spends all of their savings on a car because it has no effect on me. If someone doesn't like or understand leasing that's fine, they shouldn't lease if it's not for them. But when someone makes a comment to the affect that people who lease do it because they can't afford the car, well IMO that is just plain ignorant.
Originally Posted by weather
...I have had dealers buy back my lease...I would do a 48 month lease and after 30 months, the dealer would buy my lease, put the vehicle on their lot and would not have any penalty whatsoever.
Good point Weather, your example is becoming more and more common with dealers today. Usually the people who think they know everything there is about leasing, but truly don't, are the same people who think there is no way out.
Well, this is my first lease, and I am happy with it.
I put money down , so the payments were not that high.
I know I couldn't finance a 41K car ( SH-AWD + tech) or the cash to buy it outright, so lease was the best option for me.
I just finished school, and have a good job that let's me pay for the car.
And after my lease is over, the price of 25k for the car sounds reasonable. In fact, I saw a few 2013 Acura TL AWD+ tech going for 26k ( New Jersey prices). so the price of 25k after the lease is over sounded reasonable, AND most importantly i LOVE the car.
Leasing is a prison. If you cannot afford the payment to buy, you are buying beyond your means.
Agree. All you're doing is renting a car. You'll always be making a monthly payment. A car isn't something you should be buying new every 2-3 years. The largest value drop is over the first 2-3 years, so you're always behind the curve and paying for the largest depreciation.
I negotiate the best price for the vehicle and pay cash, then keep 5-10 years.
Agree. All you're doing is renting a car. You'll always be making a monthly payment. A car isn't something you should be buying new every 2-3 years. The largest value drop is over the first 2-3 years, so you're always behind the curve and paying for the largest depreciation.
I negotiate the best price for the vehicle and pay cash, then keep 5-10 years.
And one could argue that this isn't the best route to go either, as you are the one taking the biggest depreciation hit [if you are referring to buying new]. Point being financial decisions aren't always black and white (especially with a depreciating asset) and I could give you a list of pros and cons with each decision.
Leasing is only going to get more popular as the price of cars increase and heck, even leasing used cars is now popping up in the marketplace. I have always owned my cars and hung on to them for YEARS but I have to be honest, with the more complicated cars are getting and with the more technology being packed into them (and in turn how quickly said technology can be outdated), I am entertaining leasing now more than ever.
And one could argue that this isn't the best route to go either, as you are the one taking the biggest depreciation hit [if you are referring to buying new].
You're correct. The absolute best financial decision is to buy a used vehicle that's 1-2 years old with low mileage. The discount from the early depreciation is huge, compared to the actual wear and tear.
For me, as the TLX shows, is that many times when a vehicle is available for sale used after only a year or two, often there are issues with that vehicle that caused the original owner to sell so soon. Either that, or it was in a rental fleet and that's another reason to steer clear.
I just prefer new cars. My 2007 Lexus IS cost me roughly $38K new, and the insurance company gave me $15,500 whe it was totaled in Nov. Thats almost 40% of the original purchase price after 9 years and 106K miles.
Alright guys....we have gone all over the place with the comment about the lease. I just want to clarify that my original response was with respect to a post that said that those people that lease are for those who can't afford to buy a car.
After I gave my view, then it turned to the fact that the lease was a prison, which I also explained my view on the issue
Then we went to the fact that leasing is not the best financial decision over buying a car, which again, I agree but talk about oing all over the place *lol*
For the record, buying or leasing cars don't do it from a financial point of view as cars aren't growing equity....heck, why hasn't the comment about buying a Honda is a far better financial decision than an Acura?!?
My point is that some of us who have money like to have toys.....Some like to travel. For me, spending 3k for 10 days in Aruba is money wasted but to some, it is the best thing they can spend money on. Some like to buy boats, or to eat out in restaurants or buy electronics or what have you. We all work very hard to have fun and to enjoy some of the things we are passionate - For me, I love buying cars and the reason I lease is because:
1. I don't have to worry about mileage
2. I can keep the payment a little lower
3. Not have to deal with trading or deal with jerks trying to buy my cars
4. I can get out of my lease very easily
5. If my car is in an accident, I am not the one taking the depreciation
6. I can afford it and love getting new cars
I am fully aware that financially, it is not the best investment, but I couldn't care less...who is going to enjoy my money when I am dead? Now I am NOT trying to convince people that leasing is better than buying, but FOR ME, I prefer leasing my toys. My daily driver, a 2017 Elantra, that one I purchased it.....
I respect all of your opinions, but nothing you have written refutes the fact that it is a prison.
You have to be 100% absolutely sure you will want to keep the car for 3 years. You have agreed to make 36 payments. Period.
If you decide you want to make a change to the car, you cant for example tinting. You don't own it.
You are still subject to the whims of the manufacturer when they inspect the car at the end.
You are subject to unclear maintenance requirements.
And most importantly, unless you know what you are doing assessing the value of a lease deal is difficult.
For example,
Anyone who leased a lemon 2015 TLX is stuck. If the issues are not corrected, and today issues still exist, you cant move on.
Acura's goal is to tell you nothing is wrong. Take no responsibility.
So what can you do...be angry for 3 years is all. Sounds like a prison to me.
I agree with weather, you are free to do what you think is best for you. But for the people that choose to lease, it's up to them.
You can actually easily get out of the lease. You can trade the car in. You can turn in the car early (and payoff the payments). Somebody can take over the lease. Or you can actually sell the car to somebody else if you really wanted to.
You can also make certain changes to the car. For example everyone that i've known that has leased and myself included has tinted their vehicle that we leased. Some have even put wheels on it. If you really want to heavily modify the car, i agree then dont lease. But not many people do much more or want to do much more than wheels and tint.
At the end of the lease, there are specific guidelines for vehicle inspections. Most brands give you a sheet detailing the types of scratches and dents that are allowed and not allowed. It is all very clear. Plus if you had bought the car, it would add to depreciation anyways or you would still have to pay for repairs if there is any damage.
When you turn in the lease, i have not heard of the inspector wanting to see the maintenance records on the car. They only inspect for wear and tear usually. If they really wanted to push the issue, the manufacturers recommended maintenance schedule is very clear. But even so, in the first 36,000 miles... there isnt much. A few oil changes... maybe a couple of air filters. That's about it...
Roll your eyes all you want. Why lease if you know you are going to buy? It's your money to throw away,. have at it.
Think of the lease period as a trial period. If the car is troublesome, return it at the end of the lease; if it has been a good car, purchase it for the residual amount.
I agree with weather, you are free to do what you think is best for you. But for the people that choose to lease, it's up to them.
You can actually easily get out of the lease. You can trade the car in. You can turn in the car early (and payoff the payments). Somebody can take over the lease. Or you can actually sell the car to somebody else if you really wanted to.
You can also make certain changes to the car. For example everyone that i've known that has leased and myself included has tinted their vehicle that we leased. Some have even put wheels on it. If you really want to heavily modify the car, i agree then dont lease. But not many people do much more or want to do much more than wheels and tint.
At the end of the lease, there are specific guidelines for vehicle inspections. Most brands give you a sheet detailing the types of scratches and dents that are allowed and not allowed. It is all very clear. Plus if you had bought the car, it would add to depreciation anyways or you would still have to pay for repairs if there is any damage.
When you turn in the lease, i have not heard of the inspector wanting to see the maintenance records on the car. They only inspect for wear and tear usually. If they really wanted to push the issue, the manufacturers recommended maintenance schedule is very clear. But even so, in the first 36,000 miles... there isnt much. A few oil changes... maybe a couple of air filters. That's about it...
I agree, I have been leasing some of my vehicles since the mid 1990's and when it was time to turn them in (at least 10 vehicles) I NEVER had an inspector or leasing company request my service records. I have numerous friends and family members who have never been asked for their service records either.
As far as modifications I agree with you again. You can easily add tint (I have on every one) and return the car at lease end with the tint on it and you will not have a problem. If you want to add wheels, spoilers etc you can do that too. But if you have holes drilled to mount a spoiler be prepared to return the vehicle with the spoiler.
As far as engine modifications, it doesn't matter if it's leased or owned. Because either way, depending on what you do, you could risk voiding your warranty anyway. As for simple bolt-ons like an intake, just remove it before you return the car.
Alright guys....we have gone all over the place with the comment about the lease. I just want to clarify that my original response was with respect to a post that said that those people that lease are for those who can't afford to buy a car.
After I gave my view, then it turned to the fact that the lease was a prison, which I also explained my view on the issue
Then we went to the fact that leasing is not the best financial decision over buying a car, which again, I agree but talk about oing all over the place *lol*
For the record, buying or leasing cars don't do it from a financial point of view as cars aren't growing equity....heck, why hasn't the comment about buying a Honda is a far better financial decision than an Acura?!?
My point is that some of us who have money like to have toys.....Some like to travel. For me, spending 3k for 10 days in Aruba is money wasted but to some, it is the best thing they can spend money on. Some like to buy boats, or to eat out in restaurants or buy electronics or what have you. We all work very hard to have fun and to enjoy some of the things we are passionate - For me, I love buying cars and the reason I lease is because:
1. I don't have to worry about mileage
2. I can keep the payment a little lower
3. Not have to deal with trading or deal with jerks trying to buy my cars
4. I can get out of my lease very easily
5. If my car is in an accident, I am not the one taking the depreciation
6. I can afford it and love getting new cars
I am fully aware that financially, it is not the best investment, but I couldn't care less...who is going to enjoy my money when I am dead? Now I am NOT trying to convince people that leasing is better than buying, but FOR ME, I prefer leasing my toys. My daily driver, a 2017 Elantra, that one I purchased it.....
Weather, you hit the nail on the head, perfectly said.
And I'm not trying to convince anyone to lease either, everyone should do as they please. But all of these myths and misconceptions about leasing is ridiculous.
Why do people who have never leased or understand leasing get so obsessed and post false information about leasing? I see it on every forum. a Prison LOL. Buying a car every 5-10 years you might as well be leasing too, you just have longer terms and have to pay more for maintenance.
Why do people who have never leased or understand leasing get so obsessed and post false information about leasing? I see it on every forum. a Prison LOL. Buying a car every 5-10 years you might as well be leasing too, you just have longer terms and have to pay more for maintenance.
Leasing makes perfect sense for those who get new cars every 3 years.
I normally keep a vehicle 7-8 years, but I got out of my Accord after 5 as I hated aspects of it and didn't want to keep it another 2-3 years. If my financial situation changes due to the economy, I may want to keep past 10 years. I try to pay off my vehicles fast (1-2 years max) and enjoy "owning" the vehicle, having the title, and not being in debt.
I make sure to ask "what is the entire lease - every last dollar - going to cost me?"
My experience in early October was "a ton". Zero wiggle room, sky-high money factor, and 7500 miles a year. No thanks.
BTW - in Atlanta (where I live), Acura dealers don't do well with the "lowest price" email. Nor Costco buying service.
(this is due in part to the mega-dealers - i.e. Nalley/Asbury Automotive - coupled with small niche dealers - Ed Voyles Acura and Jackson Acura).
At least they don't try to mess with add-on's (like Toyota, Genesis, Honda, etc.).
But ultimately my relationship with Ed Voyles got me great pricing years ago, although that really hasn't translated to recent years...
04-17-2016, 10:36 PM
