Had originally planned on buying a used 02 S2k but the lease special on the S2k from Honda came up and it seems like too good a deal to pass up.

After some haggling these are the terms I've got:

12000miles, 36month closed ended lease
$1000 down (includes first months payment, tax, title, and all other fees)
$360 a month for the remaining 35 months
If I chose to purchase the vehicle at the end of the lease, it will cost $19722 + the tax on that amount.
* I think I can get them to throw in the trunk spoiler and/or wheel locks

Excluding the tax on the $19722, the car works out to be $33,322 over the 3 year period if I chose to buy it at the end. I like the lease because it gives me a lot of flexibility: if I don't want to keep the car, I can give it back, and if I want to purchase it, then the deal isn't too bad. $33322 is under the MSRP for the car. Even if I was to purcahse the car for $31k and then finance over a 3 year period, I would still end up paying the same.

I've been told to find out what my cap cost is, but I'm not sure how that would affect the above. My credit is in the "Preferred" tier, and they reckon they can talk to AHF (american honda financial) and get me bumped to "Super-Preffered". I've known the sales guy for a while, and he "seems" halfway decent, and I've told him I won't give him a penny until all the above it set in stone.

Any input on the above would be greatly appreciated. Please chime in with any advice. Thanks.

 

At $1000 OTD, the monthly payments seem pretty reasonable. I'd take that opportunity if it were me.

 

I'd consider it, but make sure you keep in mind that you're responsible for any damage, extra miles, etc when the lease term is up. Personally, it's not worth it for me to lease a car mainly because of mileage. The other thing you might want to consider is the depreciation factor. You might be able to buy the car at the end of the lease term for $19722, but what is the car actually going to be worth by then?

 

edmunds has a good lease calculator and there's some info on leasing of a m35x as an example here. do some searching w/in this thread: http://townhall-talk.edmunds.com/WebX?14@@.ef9da25/433 and you shld find something.

 

Might also try www.leaseguide.com.

 

It's a great deal... Don't hesitate.

 

As a general rule, in almost all cases.......you don't buy a car after the lease term is over.

Only time that makes any sort of sense is if you buy the car outright at the end of the term.....not financing the payoff.

If the deal really is $1k down (total out of pocket), 12k/year, 36 months, $360/month. That's a strong program, an has only been the case for the last couple months. S2k programs for quite awhile really weren't all that great, mid to upper $400's under similar terms. I know because my buddy was looking to get one, got an 06 STi instead.

But still find out what the cap cost of the car is (selling price).

 

What the guy I'm talking to is saying is that: "If the three variables (total down payment, monthly payment, and buyout price) are locked in, then the cap cost shouldn't matter. The cap cost would be something the finance guys will have to sit down and talk to you about"

I'm inclined to agree with what he says, because it does make sense. Nonetheless, I was faxed a "buyer's order" and asked him to write the "cap cost" of the vehicle on it. He said no problem, but then called me back a few minutes later and said that his manager told him that "the buyer's order is a legal document and thus I can't write the cap cost on it". Also, the buyer's order only mentions $1000 total due a t signing, and 35 additional payments of #360 a month, but nothing on the buyuot price, which he says is pretty much fixed at $19722 for all 36k/3yr lease, because they have a fixed residual for the car. Buyout is $19722, plus tax on that amount. Again, I'm inclined to believe him, but was wondering whether this is true?

Any advice would be appreciated. Thanks for the responses. And yes, I plan on paying the buyout amount in full. I would have even been close to paynig the car off in full, but I figured I could invest the other $20k quite wisely over 3 years and be better off, than just dump it all up front.

 

The cap cost doesn't matter at this point. According to my numbers, they are selling you the car under invoice. The price is right.
Just make sure that you are definately getting super preferred, otherwise you aren't going to get the monthly payment that they are quoting you. I'm sure on that buyers order they wrote very clearly "SUBJECT TO CREDIT APPROVAL".
FYI, the difference in the money factor goes from .00059 for super pref. to .00099 for pref., and the diference in monthly payment is about $23 more per month between the two.
As for the residual, it is 19,722, and the only way that could change is if you do 15k(lower res), or another monthly term.