Lease Vs. Buy?

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Old 02-04-2006, 01:37 AM
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Lease Vs. Buy?

This is my FIRST lease. I decided to lease for a couple reasons. First of course is the lower payment. But what got me THINKING about leasing was when a friend leased a Porsche that got hit the first week he had it and was in repair for months. If he had bought it he told me, he'd have had to worry about lower resale value. When it's leased on the other hand, as long as it's fixed with OEM parts the wreck won't affect him. I also like the fact that with a lease I only pay tax on my payments not on the full value of the car. Finally I'm told that writing a leased vehicle off my taxes might be easier and/or better.

Having never leased before the only thing I know to negotiate was the selling price (which still affects payments). As I posted before I got a good price of $27,200 with NAV, a price I got BEFORE I said I was going to lease. I'm concerned however because everyone here seem to think it was TOO good a deal, so I'm wondering if I might have somehow been screwed on the back end.

Does anyone know about leases and anything else I might check? Should my payment be $400 even on this price?

Also - I was surprised to learn that the dealer said I should go with a 12K miles per year lease (and a lower payment) not 15K on my42 month lease. I'd have expected he'd reccommend the higher payment? He explained the mileage will never come into play (unless I get crazy) because he said I'll want to trade it at around 32 months (before much depreciation) where he said I should be about break even. Apparently mileage only matters if you actually turn in the car at the end of the lease something most people don't do. Does this sound right?

It's a done deal now, but I'd like to know if I got as good a deal as I thought and what to watch for next time. My lease is through American Honda (for which he said he gets a flat fee and has no room to adjust any numbers).
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Old 02-04-2006, 09:12 AM
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Plenty of threads with advice on this. If you go through those threads and are still not entirely sure you got a good answer, PM me and I will try to explain it to you as much as I can.

In the meantime,
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