jhl1963

Friends, toying with getting a TSX and I am wondering if they are a good car to lease (I want to have some info before I head out to the dealers)? Are the residuals decent? Anyone willing to share their deal?

Thanks,
Jay

slo007

There are several threads on this. Run a search for the keywords you want.

CAMSHAFT

Dont Lease!!!!!!!!!!!!!

xLusi0n

I jsut got back from the dealer...sealed the deal...

pretty much 355 (tax included...LA County - 8.25%) a month 48 months lease with 2000 drive off. and free trunk mat...

this is an auto w/o navi

Thanks CGTSX2004 for helping me out.

CGTSX2004

iTrader: (1)

Hey, did you get my fax?

CGTSX2004

iTrader: (1)

Why not?

Leasing makes the most sense if you change cars often and don't feel the need to alter it from stock. I will likely get new cars every 3 or 4 years and by leasing, I can continue to drive cars like the TSX for around 60% of what it costs me each month to buy the car. When I'm ready to settle down with a family, then I might consider buying, but until then, leasing is a far better deal.

xLusi0n

Not just that...but basically, I calculated my total payments:

If I paid my 48 months AND bought the car out at the end of the lease, my total cost with fees, tax, license, etc... is about 32500...if I financed it at 72 months (in order to get the same payment), I would need to put 5000 down...anyway...with financing, tax, etc...it would come out to about 31300 (assuming a 27000 OTD price)...

basically, the premium I pay is of about 500-1500 dollars, depending on interest rate, down payment, and OTD deal...thats a premium I'm willing to pay to get initial lower montly payments (and a lower drive off price)...also, if you want, you could walk away from the deal at the end of the lease...and it comes automatic with GAP protection...

Of course if you had 27000 dollars cash in had...you could get a better deal than leasing

Financing is better for people who can afford higher montly payments but want the best bottom line deal possible.

Leasing is for people who change cars often, own businesses, AND IN SOME CASES, want initial lower monthly payments...for example, I jsut graduated college, I know I wont be making that much now...but I know ill be making more later...etc...

CAMSHAFT

Advantages of Leasing

Usually you need less up-front money to drive car away.
You only pay for depreciation during the term. Your monthly payments are 30%-60% lower than a purchase loan.
Since monthly payments are lower, you get more car for your money and drive a new car every two to three years.
Lower monthly payment, but not necessarily lower total costs.
It is a form of "off-balance sheet" financing, so it may not add to your borrowing maximums for other loan qualifications.
The higher the cost of the car, and the higher the business use percentage, the greater the tax advantage may be under certain circumstances.
At the end of a close end lease, there is no hassle trying to get rid of a used car.
If you are first time buyer or have bad credit, leasing may be an easier option than buying a car.
If your lease term coincides with the manufacturer’s warranty, major repairs are always covered hence you have fewer maintenance headaches.


Disadvantages of Leasing

High insurance cost - leasing company requires you to have insurance policy with higher limits.
Many times you don’t get the appropriate rebates or reduction in MSRP when you are buying a car.
Sometimes dealers can lie about the money factors and other costs associated with the leasing.
Usually long term cost of leasing is more than buying. If dealer is showing that leasing is cheaper than buying then check their numbers very carefully.
Penalties of terminating the lease during the leasing term can be expensive.
Leasing limits you to 12,000 miles per year. Cost of driving the car beyond the allowed miles can be very high.
Excess wear and tear clause can cost you decent some of money if you haven’t maintained the car during lease period.
All four tires must match – this condition is in every lease contract. If the tires don’t match then leasing company will change all four tires and they will charge you MSRP of the tires.
Too much fraud and unfair selling practices. Because most of the people don’t understand how leasing work companies play unfair games in leasing contracts.


Advantages of Buying

Car has a residual value to you after a time. If you want you can sell the car.
No restrictions on how many miles per year you can drive it, but with high mileage market value of the car will reduce.
No insurance problems associated with a "premature" termination.
If a home equity or investment-type loan is used to finance, the interest charges may be deductible on your tax return.
You can treat the car any way you wish. No turn-in problems with arguing over residual value.

Disadvantages of Buying

Monthly loan payment will be higher.
If you don’t like the car or car gives you lot of trouble then changing the car is not easy.
If your car is totaled during the first year or two you may be a big looser even though you have the appropriate insurance.
You may get bored driving the same car for a long time (10 to 12 years).

CGTSX2004

iTrader: (1)

So CAMSHAFT, next time, don't jump out and say "DON'T LEASE" without qualifying your statement

And you should have full insurance coverage on a new car anyway. Plus, if you're not getting discounts when making the lease, then that's your own fault. Most people say that you should never go into a dealer saying that you're going to lease. Go in and negotiate the price first, then tell them you're gonna lease and you want that to be the asking price. Also, money factors are fairly easy to calculate and translate into an APR for comparison. My lease resulted in an APR of around 2.4% for 4 years, which most people would be hard pressed to find even when buying the car. Also, if there is excess wear and tear, then you deserve to be charged for it. I maintain my cars very carefully regardless of lease or buy so it's up to the owner to keep the car in good shape.

As for the long term cost of leasing, if you're gonna be getting a new car in three years, there are no long-term costs. It would be same if you were to buy another new car in three years. Even if you traded in an old car that was paid off, you likely wouldn't be paying that much less than on a car with a high residual.

jozza

given all the talk on leases you missed out the key point -

what residual did they give you and at what age - love to see what honda finance is (conservatively) betting what the car will be worth?

Cheers

A

CGTSX2004

iTrader: (1)

I leased the car back in May of 2003. Residual was 57% after 4 years.

ric

My circumstance is a little weird, because my lease is company-financed and has to meet their criteria - max 36 months, 4D, Auto Tranny, no money down and 20,000 (yep) miles per year. Recently negotiated a lease for a basic TSX (no fog lamps, no navi, etc) for $445 per month exclusive of taxes. Sticker price on the car was $26500, I believe. My firm does't care what the residual value is, but obviously care about not paying for miles at the end of the lease - thus the high count on miles. Standard lease at 12,000 or 15,000 will be much much lower, as they figure that a threee-year 60,000 mile car will be pretty fried - and they're right

mcourt83

Hmmm ...

If people are leasing *because of* lower monthly payments or are considering 72-month loans, it might be a good time to sit back and ask, "Can I really afford this car?"

M

CGTSX2004

iTrader: (1)

I lease because I'm a recent college grad, starting a new job, and like to change cars every few years. The lower monthly payments are an added bonus. Honestly, buying a used car worth around $13K will net similar payments to leasing a new car worth around $26K. It's all a matter of what you want. I had an Integra before and felt it was time to step up in luxury and refinement. The result is that I now pay $10 more a month on the TSX than I was paying on the Integra.