[Spoiler]

I have till tomorrow to decide whether to change my lease to a buy, and I'm not sure what to do!
I walked into the dealership ready to trade my '98 Accord EX V6 and cut a check for the difference (around 21k), but after the lease was explained it seemed to make sense.

Anyway, I ended up with a 48 month lease using the Honda as a down (They gave me 14.5k, about $500 short IMO but they wouldn't budge) coming to $285 a month, and a residual of $16516. No money down, 1st month paid.

If I buy the car I'd want to pay cash rather than finance, for the savings in interest. I can afford it but it's still a big hit.

The lease mileage is 12k a year and is not issue. I won't come near it most probably. (The Honda had 11k miles, used as a second car.The IS300 will definitely have more, but still way under 12k/yr)

The advantages to leasing are if the car gets totaled or stolen, I walk away scott free (assuming I'm not hurt!) If you own, you take a loss even with insurance. Also, I still have the 21k I can invest.

I guess I just need assurance that I did ok here... any ideas?? Should I go back and buy it? Grrrr... fantastic car tho!

 

[habibnazir]

i thought if the car is stolen or totalled you have to pay a deductible around 500 bucks and the rest is coverd by insurance...hmm my dad's been leasing cars his whole life and he told me the only advantage to it, si if you plan on keeping the car stock, don't drive a lot, and like to get new cars frequently
but if you think about it, all you are technically doing is renting the car and end up paying more than half the price of it and have to return it in the end...i dunno too much. but congrats on getting a 02 atleast!!

 

[DukeSam]

I would buy if I drove "way less" than the milage limit. Your car's residual value is bases on that much of usage. If you return it with less than that, you are paying too much for the usage fees.

I leased mine because the following:
1. Rate on leasing was better than financing
2. I wasn't sure if I wanted to keep the car for more than 3 years
3. Wasn't planning a a whole lot of mods

I am now feeling the following disadvantages:
1. I now want more mods than just bolt-on's
2. I am over the milage limit
3. If I buy the car, I have to pay tax again (in maryland)

I hope these can give you some things to consider.

 

[DownShift]

Dude if you lease the car then your out your down payment, which I believe you said was an Accord that was paid for already. I have always bought each car and paid in full.......however, right now is a good time to keep cash on hand.....you have to weigh your current situation also.....how is your job security, how well are you at investing (could you make enough with your 21k to pay off the car in a few months or even a year?), and most importantly, your mileage....you may think you aren't going to break your 12k but once you start driving your car the more you enjoy just driving it and you'll find a reason to go to the grocery store three times a day just to get outside and on the road with your IS.........I'd say finance the rest and see what you can do with the 21k, the tech sector is not the way to go!
Try pharmeceudicals or something that is still doing well while were in this slowdown.....hope that helps

 

[SeattleSheila]

Don't bet on not putting many miles on that car. I thought I wouldn't either...and I'm driving more than I expected, simply because I can't bear to leave it parked. It's too fun to drive!

 

[shinto]

when you say leasing, do you mean that smart buy thingy? where you own the car for 3 yrs and then at the end of the 3 yrs you can either give it back or keep it and finance it again? or are you talking about just straight up leasing it?

cuz i think that if you lease the car, you dont own it..but if you smart buy then the car is yours. but there is still the milage thing you have to worry about on both buys.

 

[Spoiler]

No shinto, they didn't offer any smart buy lease. And SeattleSheila, I know what you mean about the mileage! I Knew I was on to something when I read articles about this car. I drove around the city (2nd nite having it) taking random paths, just to experience the amazing point and shoot character of this car. I'm not gunning it yet because of break-in, but I can tell the gearing is correct for me because of the torquey, even pull in each gear. The stereo has better highs, lows, and especially better dynamic range than the Accord. I found myself re-listening to stuff I got tired of earlier because of nuances I didn't here before! The blue paint is gorgeous! I believe it's a tad lighter than SBM, which is what I was looking for. Anyway, I can see that more miles than the Accord had are on their way...

Investing the 21k properly would be troublesome, since I'd be skiddish about putting that much in one place, or several stocks for that matter. Realistically, I probably wouldn't average more than 6% on that money, unless someone out there knows better.

Looks like I either pay now or later. It seems as if I pay now, interest is saved,I have no payments, the car is MINE, leaving me free to do as I please mileage and mods wise, (not too much planned there cause of warranty issues, but least I'm free to choose), and if something happens later where I need a load of cash cause of an emergency or the like, I can get a decent price for it because of it's good resale value. It's a second car after all, my "I'm done with the BS of work and time to play" car. Uh oh.. sounds like I'm leaning towrds the buy thing....

 

[Firebird_EOU]

I leased a 01, picked up 8/1.

You would have screwed yourself over if you put your Honda trade-in as a down for cap cost. You would lose ALL that money if your car gets stolen. If you put part of that money towards the 9 multiple security deposit to lower down the interest rate for the lease like I did then that's OK. Or are you saying you paid the entire 48 month lease with your Accord trade-in?

48 months is also quite a long time for lease. I did it for 39 month manf lease deal, with your Accord trade-in you could have done a 5 or 6 yr fiance for the remaining 21k and you get to keep the car.

I am paying $400/month w/tax included for 15k/yr 39 months. 52% residual value at the end. MSRP 34,600. auto, leather, heated seat, wheel lock, trunk mat. For 48/12k I could probably get it for $350/month or lower. What's your car's MSRP though?