NJtsx

anyone call their leasing company and get their buy out yet???? Well i did...mine is one year old and the buy out is 25,000!!! WTF WTF. i put down 3800 and i am paying 309 a month ( 4 year lease)!!! my TSX just turned into a 32,000 car. Infiniti will give me 21,000 for my car. I might see a g35 coupe in my future

brerpie

I owe more than you! :'(

justinnum1

same with me
with the fuck?

I wanted to get a c230 and they told me i owed 25 and change. does anyone know why this is?

NJtsx

thats how they get ya at the dealerships....when i bought mine their was not that much room for discount cause it was so new....but i owe almost as much as some people are paying for one now.

gfxdave99

That down payment you put down cut down on some of the capital cost of the car and paid for your taxes/title.. i mean NJ probably has some high sales tax so lets say 7% of 28 grand is 1960...

You are right about where you should be.

bbbradley

On a lease you don't pay sales tax on the full amount of the car, only the amount "used" during the lease.

Buying out of a lease is rarely the most cost-effective way to buy a car, that said those numbers do still seem a bit high. Did you ask them to itemize it? Are there any penalties for early lease termination? The buyout amount should be the total of your remaining payments plus the contracted residual. The leasing company has no obligation to do any better than that amount, you signed a contract stating you would pay that amount. Some leasing companies are more likely to reduce the buyout as you get closer to the end of the term. I have leased two cars, BMW Financial Services would not budge one bit from the contracted amount, whereas Honda took an amazing amount off the buyout price. Only one year into the lease, which I'd imagine is 3+ years, it doesn't surprise me they aren't moving on the total. Wait 'til closer to term end, the cost to them to flip the car (reconditioning, transportation, holding, etc...) may let you deal a bit.

/bill

Volrus

That's why you should just buy your car. Forget the fleece.....I mean lease.

gfxdave99

Leasing has worked out for me so far.. If i'm going to just want a new car at the end of the lease anyway, what advantage do i have buying it and having more out of pocket costs per/month?

vwong

When you're leasing a car, you're paying to use the car, not buy the car. If you plan on keeping the car, you should've not leased it. I made that mistake with the Integra, and I'll never lease a car again (except if I have my own business).

slo007

You pay more on a lease... (except if you own a business).

Volrus

vwong said exactly what I was trying to imply.

LannyM

Leasing is not for everyone; especially those who do not understand how it works. However, if you do understand the financial concept behind leasing, you will see that it is just one more financial tool for paying for a vehicle, and it has the potential of being a reasonable option.

Here's one example of a lease vs. finance that I ran when the TSX first came out last year:

2004 TSX MSRP $27,035 Resid 64%, MF .00220 (=5.28%) .Purchase price = $25000, residual value = $17302.40, 36 months/12k per year. Rent charge = 213.83, interest charge = 93.06, tax (6%) = 18.41. Total payment $325.30. Startups (first month, acq fee and reg )= $1120.30.

So, you drive the car for three years for a total of $12505.80

Now here's the finance deal. Selling price $25,000.00, tax and reg = $1664.30. Down payment = $1120.30. Amount financed = $25,544.00 5 years at 5% = $482.05. At 36 months, the total outlay of cash is $18474.10, and the amount still owed is $10,987.61

So, as the guy who financed, you decide to sell your car at this point. You get $17302.40 (the amount that the lease company says it's worth.) You pay off your loan, and you're left with $6314.79. That brings your total expense for three years to $12159.31.

The guy who financed has saved $346.49, assuming he can actually sell the car for $17302.40. To me, this lease is worth it, so I don't have to worry about the car's value at the end....

Now, if the resid drops, then this lease wouldn't make sense, and right now, I think the resid is at like 59% for the same scenario. In that case, financing would be the better option.

The important thing is to understand exactly how leasing works, and see if the lease makes sense. Sometimes manufacturers put crazy numbers (resid and mf) to move cars and the lease deals are awesome.

slo007

What about mileage restrictions? I bought my car thinking I would put 10K miles per year. It already has 17k and it's not even 12 months old. A lease in my case would not have made sense, right? The penalties would kill me.

soopa

thats what happens with leasing people... thats why theres buying and theres leasing

LannyM

Yeah, no doubt mileage can kill you in a lease. Your situation has to be pretty stable mileage wise to even consider it. Take me for example; same employment for 17 years, built a house about two miles from work 4 years ago. Not planning any moves. If the dollars made sense I could consider it.

One thing about leasing a TSX Navi- AHFC drops the resid to the point that you will basically pay the entire $2k in your lease. Too bad you can't take it with you after the lease .............

Nick250

Looks good except the "amount stilled owed" is not the same as the "pay off" which will be less than the amount stilled owned. Using your example the pay off will be less than the the amount stilled owned because you are not paying the interest on the loan for the fourth year. "Pay off" is the number you have to use in this type of calculation and can be obtained by contacting the lender.

LannyM

Actually, the amount still owed at the 36 month mark, or at any other point during the loan, can be easily calculated using an amortization chart. This will not give you an exact number, but it will be within a few dollars. The only reason that it would differ would be if you were really early with payments, thereby reducing interest, or really late, which would add interest and penalties....

So anyway, my number is correct-note the 36th month on this chart.




Amortization Schedule Powered by TValue ©1998-2004
Event Date Payment Interest Principal Balance 5.00%
Loan 07-23-2004 25,544.00
1 08-23-2004 482.05 106.43 375.62 25,168.38
2 09-23-2004 482.05 104.87 377.18 24,791.20
3 10-23-2004 482.05 103.30 378.75 24,412.45
4 11-23-2004 482.05 101.72 380.33 24,032.12
5 12-23-2004 482.05 100.13 381.92 23,650.20
2004 Total 2,410.25 516.45 1,893.80

6 01-23-2005 482.05 98.54 383.51 23,266.69
7 02-23-2005 482.05 96.94 385.11 22,881.58
8 03-23-2005 482.05 95.34 386.71 22,494.87
9 04-23-2005 482.05 93.73 388.32 22,106.55
10 05-23-2005 482.05 92.11 389.94 21,716.61
11 06-23-2005 482.05 90.49 391.56 21,325.05
12 07-23-2005 482.05 88.85 393.20 20,931.85
13 08-23-2005 482.05 87.22 394.83 20,537.02
14 09-23-2005 482.05 85.57 396.48 20,140.54
15 10-23-2005 482.05 83.92 398.13 19,742.41
16 11-23-2005 482.05 82.26 399.79 19,342.62
17 12-23-2005 482.05 80.59 401.46 18,941.16
2005 Total 5,784.60 1,075.56 4,709.04

18 01-23-2006 482.05 78.92 403.13 18,538.03
19 02-23-2006 482.05 77.24 404.81 18,133.22
20 03-23-2006 482.05 75.56 406.49 17,726.73
21 04-23-2006 482.05 73.86 408.19 17,318.54
22 05-23-2006 482.05 72.16 409.89 16,908.65
23 06-23-2006 482.05 70.45 411.60 16,497.05
24 07-23-2006 482.05 68.74 413.31 16,083.74
25 08-23-2006 482.05 67.02 415.03 15,668.71
26 09-23-2006 482.05 65.29 416.76 15,251.95
27 10-23-2006 482.05 63.55 418.50 14,833.45
28 11-23-2006 482.05 61.81 420.24 14,413.21
29 12-23-2006 482.05 60.06 421.99 13,991.22
2006 Total 5,784.60 834.66 4,949.94

30 01-23-2007 482.05 58.30 423.75 13,567.47
31 02-23-2007 482.05 56.53 425.52 13,141.95
32 03-23-2007 482.05 54.76 427.29 12,714.66
33 04-23-2007 482.05 52.98 429.07 12,285.59
34 05-23-2007 482.05 51.19 430.86 11,854.73
35 06-23-2007 482.05 49.39 432.66 11,422.07
36 07-23-2007 482.05 47.59 434.46 10,987.61
37 08-23-2007 482.05 45.78 436.27 10,551.34
38 09-23-2007 482.05 43.96 438.09 10,113.25
39 10-23-2007 482.05 42.14 439.91 9,673.34
40 11-23-2007 482.05 40.31 441.74 9,231.60
41 12-23-2007 482.05 38.47 443.58 8,788.02
2007 Total 5,784.60 581.40 5,203.20

42 01-23-2008 482.05 36.62 445.43 8,342.59
43 02-23-2008 482.05 34.76 447.29 7,895.30
44 03-23-2008 482.05 32.90 449.15 7,446.15
45 04-23-2008 482.05 31.03 451.02 6,995.13
46 05-23-2008 482.05 29.15 452.90 6,542.23
47 06-23-2008 482.05 27.26 454.79 6,087.44
48 07-23-2008 482.05 25.36 456.69 5,630.75
49 08-23-2008 482.05 23.46 458.59 5,172.16
50 09-23-2008 482.05 21.55 460.50 4,711.66
51 10-23-2008 482.05 19.63 462.42 4,249.24
52 11-23-2008 482.05 17.71 464.34 3,784.90
53 12-23-2008 482.05 15.77 466.28 3,318.62
2008 Total 5,784.60 315.20 5,469.40

54 01-23-2009 482.05 13.83 468.22 2,850.40
55 02-23-2009 482.05 11.88 470.17 2,380.23
56 03-23-2009 482.05 9.92 472.13 1,908.10
57 04-23-2009 482.05 7.95 474.10 1,434.00
58 05-23-2009 482.05 5.98 476.07 957.93
59 06-23-2009 482.05 3.99 478.06 479.87
60 07-23-2009 481.87 2.00 479.87
2009 Total 3,374.17 55.55 3,318.62

Grand Total 28,922.82 3,378.82 25,544.00