master986

Hello. I just purchased a 2008 Civic DX coupe from Toronto Honda. Here are the specs.

- 60 month lease
- 1.5% interest
- $229 per month
- $1000 Eco Rebate from Government
- Free Interior Aluminum Trim kit
- Buyout/Residual of $7500
- paid MSRP of $17,190 + taxes, freight PDI
- $0.00 down / $0.00 Security deposit.
- Lease Insurance at $2400

Is this a good deal? It seems fair to me. What do you guys think?

Mr E

... I think it is, from what most of the other guys have talked about and offers Honda is giving.

But you've already bought it. Soo it really doesnt matter whether it's a good deal or not. You're kind of stuck with it.

DumbasSi

I'd say so. My 07 Si is almost twice the payment and my interest rate is about 3 times your's. I really wish I waited a few months before I got mine. The rates and incentives offered now are great.

screwface

kind of an oxymoron to be asking that since you got it financed. id recommend putting away at least 3 payments worth into savings just in case you happen to go unemployed at one point during the next five years.

on one hand, you got a terrible deal since there is a good chance you will miss at the very least one of 60 payments and that will slam your credit rating at 30+ days past due

on the other hand, i spend all day looking at this kinda data and rarely see anyone on a 60 month term with a brand new car owing less than $300/mo

master986

Thanks for the replies. You've all brought up some good points.

Happy New year!

DelSloow

according to you...everyone should just pay cash for their cars?!...

even if you have the cash it makes more sense to finance....say if you take that cash and invest...if you are lazy and simply do GIC...even some saving account will get you 4% rate....than you are ahead of the game since you can pocket the diff in saving 4% vs 1.9%...

ForSale

seriouly, what does it matter!, you bought/leased the car already, if you are having second thoughs too late.

$229/per month is still to expensive for a honda imo.lol

screwface

i don't even understand what you're sayin man. a GIC is a good investment, a car is not. they're not even in the same league since one is you lending money and the other is you borrowing money. the problem is the borrowing, because not only has one or two payments evaporated into thin air as soon as you drive the car home due to how quickly they depreciate, but hypothetically you continue to pay, for five years, the same amount of money on collateral that is losing value by the day.

by the end of the loan, taking time value of money into consideration, you end up paying a few thousand dollars MORE for the vehicle than someone who pays for it all before driving away.

another issue stems from the fact that vehicles require maintenance, which over the course of five years can get pretty expensive... and what happens if the vehicle is stolen or totalled? you have to keep making payments on time until the insurance payoff arrives. and as i've mentioned, vehicle depreciation doesn't impact the loan so the insurance payoff may not even cover the remaining loan balance and leave the poor debtor owing payments on a vehicle that is no longer useable.

but in the most absolutely basic terms... if you can afford to buy the whole vehicle at once, why would you sign to a monthly payment plan for five years and even pay interest on top of the hassle?

sorry, i didn't mean to jack the thread but this is kinda on-topic banter anyway since we're talkin bout deals

Shazza

what the guy is trying to say is that you can use the money for investing elsewhere and gaining a return as opposed to putting it all on paying for a car that you're going to pay for anyway. for example, let's say a car costs $20,000 and the financing rate is 1.5%. you have $20,000 cash, and thus, can pay for the car in full right away. however, if you instead put a downpayment of $1000 and pay the 1.5% financing rate and then use the rest of the $19,000 into an investment plan that gives you a 4% interest rate return, you will have, in the end, gained $$$ in interest as opposed to if you used that $19,000 to pay for the car in full b/c you would have lost the opportunity to gain interest off that $19,000. the 4% interest you would have gained in the investment would exceed the 1.5% interest you would have paid for in financing.

07Ex

I think you got a good deal man! I am financing my 07 Civic and I definitely pay more than that in both interest and monthly payments.

Anyway, welcome to the club and welcome to the 8th Gen Civic. They are nice cars to drive.

DumbasSi

Especially the K20 version.

ForSale

well said^^

screwface

ah tru. i dunno, not worth the hassle for me to have such a massive bill each month