I am lost and confused. I have an 05 anthracite TL with navi that I have leased now for 36 months. Allowing me 15k a year, I have paid $435 a month. I am 5000 miles under my limit; i have 40 and was permitted 45k.

Now, I have been searching feverishly for a new car to fall in love with. I have been to BMW, Audi, Lexus, and Infiniti, and Cadillac. Nothing is igniting the fire and making me very hungry.

I have to say that my TL is perfect, and I have been pleased in every regard. The car is an absolute treat. All those other cars have such subpar navis as well.

So i have kind of given up the hunt and am leaning towards purchasing the TL. I realize that this isnt the smartest thing economically, but it seems better than jumping into some other car thats twice as much with the same features, and some of those features being inferior.

I can purchase the car for $19,000. How fiscally irresponsible is it to have leased this car for 36 months at 435 month, and paying for the tax, tags, and title at signing, and then now purchasing it for $19,000??

I greatly appreciate all feedback.

 

its like your buying the car for 35k ...

 

I am in similar situation with my 04...I am going to extend my lease for six months to wait for the '09 model. If I like it, I may re-up, if not, I will probably buy my TL. I don't think I can find a similar car for the same amount of money...can you?

I'm willing to spend more for an "upgraded" TL, but the TL-S and the newer models are not quite what I'm looking for. I feel you on the "can't find another car to fall in love with.."The TL is an absolute hit in my book...I just hope they don't mess it up with the redesign.

 

quick noob question how does a lease work?

 

In making your decision, don't look at the past -- the lease is a sunk cost. You should only focus on what you'll pay in the future, so if you can't find anything better for $19,000, stick with the TL. It sounds like anything else you're considering will cost a lot more, so buying the TL would be the most fiscally responsible move.

 

buy out the TL, you won't regret it...

 

good advice i think. not much out there right now for $19k that even comes close to a TL.

 

I say if you love the TL then purchase it.

 

Why not extend the lease 6 or 12 months then make a decision? See how you like the 09 like the other person. I'm really glad I bought mine.

 

Don't buy out the lease. But if you love it then go for it. But its like you are buying the car for more than 30k and it is a 05. Not worth it

 

um. just an FYI... i kind of felt the same with the whole "sub-par" navi.. but.. dude, go sit in a new 328 or 335i w/ nav and i-drive or whatever its called....

its probably the sickest navi/electronics control i have ever seen in any car

 

me... I'd go to a bmw dealer and see what the trade in value on the tl is... lets say they offer you 24k for it... and 19 is the buy out... after taxes that is 21k... you would pocket 3k for the new car as a down payment... would definitely save you some money.. even if they offered you 22k for it, trade in value for an 05 is atleast that much...

if you can't find another car to replace ur 05... then get the type s... after the model redesign you won't regret it....

ps. buy it out rather than extend the lease than trade it in at another dealer see how much they would give you trade in value... either way I look at it 19k is a bargain

 

19k is a bargain for an 05 with 40k.......i wouldnt wait on the 09 model ,just my .02

 

agreed. If you still love the TL, 19k for an 05 navi with 40k is a steal.

 

you get the car for a certain amount of time, with a certain monthly purchase. You usually have a down payment you have to pay at signing, and sometimes you have a remainder to pay at the end of the term, or you could buy the car back for the remaining price. That's basically how it works

 

OK, since you're 24 "sick" means really good, right? You actually LIKE the infamous BMW i-drive??

 

Get a TL-S!!!

 

I really love hearing everyones take on this. Thanks all!!! Some very good ideas by some of you.

I wish I had some inkling as to what the next TL will look like. I have my google alerts set to "2009 acura TL" and have yet to get even the foggiest notion what the hell going on. I can't figure out who's worse, Acura or Apple, in keeping people in the dark.

I am leaning toward purchasing the car for $19,000. Especially since I just went and washed it and its even sexier now.

I just priced out my credit union and what it would be. With the current APR of 5.4%, for 60 months I will be paying $343.00 a month. Very reasonable. Come fall, when lots of cars will be rolling out, i will regroup and reassess. At that point, by trading in i should still be able to be ahead and be able to have a profit to use toward down payment.

 

I'm in the same boat, and have exactly the same thoughts, although I have only sat in the competition but not driven them yet. A buyout off the lease would leave me with about $4K-5K equity based on a used TL's value.

It makes financial sense to buy the TL, then sell it if you (or I) decide to get another car, assuming no dealer will assign a near-market value for the TL. Nicer position to be in than to try to buy out a car that is worth less than the residual, right?

And for those who said you'd be paying $35K for the car-- isn't that pretty close to what the cost would have been had the car been bought new instead of leased??!

 

You wind up paying the same price in the end, no matter how you finance the car. Of course, if you take your money and put it in an account to yield some interest, you may wind up with a little extra cash than if you paid it off from under your mattress...

 

I say buy out the TL...1) because you like the car and 2) $19K for a 05 w/ 40K is not that bad ESPECIALLY since you know the history of the vehicle!

Whatever you paid for the lease is done with, it's in the past.

 

I am in a similar situation. My car is an 04 tl/w nav with 21000 miles. I owe 15xxx. I am leaning towards buying the car because nothing excites me out there.

 

Excuse me for saying this, but I work for a leasing company. Extending your lease is stupid. We call it "evergreen" because it's always blooming (as in flowers). Your lease cost is based on having the car for a certain amount of time and it's depreciation. You "extending your lease" is solid profit for the leasing company.

Dave

 

a lease is time and money, nothing else. You're renting the car for a fixed period of time, with the car being worth a certain amount of money at the end. Time, Value, Money

Dave

 

I would love to buy your car for 19k right now!

 

It is clear from your first statement that you should keep the car.

You should by the car and it is indeed the smartest thing economically. Leasing a car is generally the most expensive way to drive a car. The typical life expectancy of a car is 18 years. By the time you have it paid off there will be 10 years of life left for you or whoever you decide to sell it to.

$19,000 for a 2005 TL with 40k and good history is a good buy. As others have already stated what is past is past. It makes no difference at this point how much your lease payment was or how much you paid. All that matters is your situation today.

Buy the car and enjoy the ride!

 

Rodney, it's probably not as bad as you think. Likely a few grand difference in total payments. Do this:

Add up all the lease payments (including any Down Payment i.e. Cap Cost Reduction)

Then add up all the payments to buy the car over, say, 3 years.

Now add those two together - that's your total 6-year purchase cost.

Now compare what it would have cost to finance for 6 years. The diff is what you'd lose.

(you could also compare, say, a 5-year finance, but then you'd have to add the depreciation for the 6th year. IOW - the "term" of finance has to equal the term of "lease then buy" to see the apples-to-apples difference).

 

Just stick with your TL. Purchase it.

 

sheesh peeps making definition of lease even hard for me to understand

simple words... (just an example of a 36month lease)... cars price new is 35k + taxes title etc... if you lease it for lets say 36 months, you'd be paying $17.5k (half the mrp) plus taxes title etc... on only that amount... at the 34th-36th month you'd make a decision on keeping it or giving it back...

IMO lease to buy = financing (there is no difference no loss or gain unless ur credit is horrible)

with honda financial I believe there is a 2nd to last month inspection required if you choose to return the car...

 

my 2c.
As my 4 year lease up on April 21, I am in same boat.

The way I look at it:
You paid: 435*36=15,660.00 (more or less)
to drive new, under warranty vehicle.

If you to buy it out for 19,000.00 :
You will pay (at 6%& 48 month)
446*48=21,408.00
Maybe you will be able to sell it @ 6,000.00 (7 year old TL with 100,000?)
At the end you end up paying 15,408.00 (more or less) to
drive 4-7 year old car with no warranty.

To me it made no sense.
I'd be better leasing new one at 359.00+tax a month.

 

Perhaps you did not notice the quote from the OP below. Owning a car for less than what it costs to rent seems like an easy decision. I have seen promotional lease rates at $359 with a down payment of around $2,500 but I have not seen one at that rate with 0 down.

I just priced out my credit union and what it would be. With the current APR of 5.4%, for 60 months I will be paying $343.00 a month. Very reasonable. Come fall, when lots of cars will be rolling out, i will regroup and reassess. At that point, by trading in i should still be able to be ahead and be able to have a profit to use toward down payment.

 

I was faced with this same dilemma back in February. Do I buy out my 04 base TL with only 22k miles or explore its trade -in value and get something else. I was ready to do the former but decided on the latter. After investigating the usual suspects, I realized that there was no car out there that fit my style and personality better than the 3g TL! Miami Acura offered me 19k for the 04 which not only covered the buyout cost but gave me the down payment money needed to get an 08 TL with Navi at the same monthly payment as the 04. If the 4g is worth sneezing at, I'll be ready for a 2010 in 3 years. In the meantime, I get to drive a new version of the car I have loved with no repair worries and Navi to boot.

 

rent/buy call it whatever you want, at the end it is about how much you spent $/time owned.

BTW: 19,000.00 has to be at 3.25% for 343.00 monthly. @ 5.6% monthly =363.00

So, I have option:
1. pay for brand new, under warranty TL 359.00 for 36 month.
(Down payment of 1,999.00 includes security deposit and 1st month.- so it is 1,281.00 cap reduction)
2. pay for 4-8 year old TL with no warranty 362.00

Sorry - I'd stick with rent.

 

I am going down tomorrow to finance it. Thanks to everyone for the advice and opinions

 

My take:

If you are not happy with IS350, 335i, G35, CTS which are all just 1-2 years into the model ,which means at least 3 before they get refreshed.

If the car is solid, buy it out and keep it until something else come up.

If the car is starting to have problems, lease a new 08 for 3 years and see what the competitions will be like then. I'm sure there are a lot of good deal for 08 right now that you may end up with a smaller payment than you have now. Or even financing.

Is leasing right for you? My rule is:

Yes if
- you have a lot of $$$ and don't want to tie it up in depreciating asset.
- you have a business to write it off for tax purposes
- you never keep a car past warranty, no exceptions
- lease rate is lower than saving account rate

No if
- you want to drive the car to the ground, way pass warranty
- you want to mod it
- you can't afford it by buying it out right or finance payments
- lease rate is higher than saving account rate

 

BTW, like I say in the other thread,

335i and IS350 are WAY more fun than TL and TL-S and will run circles around it. But the interior is where TL got it perfect.

I know for sure 09 TL will be a better car performance-wise (it has to). But I doubt they'll get the exterior and interior styling right. Hard to improve perfection.

 

the new mercedes c300 or 350 isnt 2 bad either...the 300 stars at 32k

 

the -overall- price would be fair.
Personally, I would never lease -unless- you can write off for business purposes at the end of the year. Just see it as a lesson in life.

 

How does one extend their lease? I've never heard of this even as an option. Is this done at the time of turn in or can it be done earlier.. I always thought once your lease was up you either turn it in or buy it out and that was it

 

pay the $19K. Extending the lease is like renting a car. You'll save money if you make up your mind now. You can't find an 05 at that price and on the plus side you know about this car already so you know what you're getting.