Leasing Help...
28-Apr-2008, 09:09 AM
#1
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Join Date: Apr 2008
Location: Mississauga
Posts: 74
Leasing Help...
hey, just wondering if anyone could enlighten me about leasing.. my dad wanted to lease one of the new civics but he nor I know what to expect.. where could I get good deals? or what would a good deal even be??? any help would be much appreciated !!
28-Apr-2008, 11:39 AM
#2
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Join Date: Apr 2008
Posts: 458
Leasing is a rip off you end up paying more for a car you will never own, will have to maintain it up to par, and will be allowed to drive a limited amount of km per year.
The costs associated with Leasing per month are much higher than if you financed the vehicle, Leasing started off for corporate fleets. It has always been a higher rental cost, as it was originally aimed to assist large corporation with company cars for employees and business transportation until Leasing vehicles became public.
Leasing is for people with very fat wallets, who are meticulous at maintaining a car, and who won't feel bad for paying so much but still never owning the vehicle.
"Experts Calculate Cost Of Buying, Leasing Cars
(KDKA) Americans spend an average of $28,000 for a new car and paying that kind of money means consumers have a lot riding on getting the best deal.
Now, Consumers Reports is offer tips on how to know whether leasing a new car or buying one is a better deal.
Experts say consumers can get stuck trying to figure out if it is better to get a loan or take out a lease. So the web has countless online calculators all offering to help consumers make their decision.
"Online calculators can be great, but they may not tell you the whole picture," says Consumer Reports Money Advisor, Tobie Stanger. "For example, they may not capture the financial data like sales tax, insurance costs, or acquisition fees."
Consumer Reports says using the most common financing options, they calculated the difference between taking out a five-year loan versus leasing a vehicle for five years. Experts say also factored in was getting a new lease after three years.
The first comparison was on the 2008 Honda Accord EX, which sells for $24,495 and can be leased for $239 a month. Consumer Reports says they calculate leasing this car costs almost 4,600 more than if you'd purchased it.
Also, experts say that calculation doesn't include the end of lease costs, which can include excess mileage and wear and tear charges.
As for vehicle number two, a the 2008 Lexus ES 350, which sells for $38,405 a month. Consumer Reports says their calculations show leasing costs $9,245 more over a five year period.
Researchers also say monthly lease payments have dropped dramatically in the last five years by some 44 percent so they can seem really attractive, but that doesn't necessarily mean you're getting a better deal.
One reason people often turn to leasing is that consumers can get more car for less of a monthly payment as well as the latest model car more often, which also means the latest in safety equipment.
However, Consumer Reports says if it is just about dollars and cent - buy don't lease. "
http://kdka.com/seenon/Consumer.Repo....2.692181.html
The costs associated with Leasing per month are much higher than if you financed the vehicle, Leasing started off for corporate fleets. It has always been a higher rental cost, as it was originally aimed to assist large corporation with company cars for employees and business transportation until Leasing vehicles became public.
Leasing is for people with very fat wallets, who are meticulous at maintaining a car, and who won't feel bad for paying so much but still never owning the vehicle.
"Experts Calculate Cost Of Buying, Leasing Cars
(KDKA) Americans spend an average of $28,000 for a new car and paying that kind of money means consumers have a lot riding on getting the best deal.
Now, Consumers Reports is offer tips on how to know whether leasing a new car or buying one is a better deal.
Experts say consumers can get stuck trying to figure out if it is better to get a loan or take out a lease. So the web has countless online calculators all offering to help consumers make their decision.
"Online calculators can be great, but they may not tell you the whole picture," says Consumer Reports Money Advisor, Tobie Stanger. "For example, they may not capture the financial data like sales tax, insurance costs, or acquisition fees."
Consumer Reports says using the most common financing options, they calculated the difference between taking out a five-year loan versus leasing a vehicle for five years. Experts say also factored in was getting a new lease after three years.
The first comparison was on the 2008 Honda Accord EX, which sells for $24,495 and can be leased for $239 a month. Consumer Reports says they calculate leasing this car costs almost 4,600 more than if you'd purchased it.
Also, experts say that calculation doesn't include the end of lease costs, which can include excess mileage and wear and tear charges.
As for vehicle number two, a the 2008 Lexus ES 350, which sells for $38,405 a month. Consumer Reports says their calculations show leasing costs $9,245 more over a five year period.
Researchers also say monthly lease payments have dropped dramatically in the last five years by some 44 percent so they can seem really attractive, but that doesn't necessarily mean you're getting a better deal.
One reason people often turn to leasing is that consumers can get more car for less of a monthly payment as well as the latest model car more often, which also means the latest in safety equipment.
However, Consumer Reports says if it is just about dollars and cent - buy don't lease. "
http://kdka.com/seenon/Consumer.Repo....2.692181.html
Last edited by usdm; 28-Apr-2008 at 11:48 AM.
28-Apr-2008, 01:02 PM
#5
Senior Member
Join Date: Aug 2005
Location: Photographer's Corner
Posts: 13,424
how can leasing be more expensive than buying? i dont think so. its all in the variables.
usdm....what that article doesnt specify (and this is my assumption) that in case of leasing, you are shooting over your total allowed mileage and the lease rate is higher than the finance rate (which is typical in the US) but in Canada, the opposite is true in alot of cases. unless that article shows what the rate, term, dp, residula factor and other comparable variables were in their calculation...i dont buy the argument. i bet they were not the same.
I leased my 08 civic si and i am paying almost half of what i would have paid if i had financed it. there was no down payment or security required and lease rate was half of the finance rate offered at the time. the residual factor, in case of most japanese manufacturers is 51%...meaning your payments are based on this percentage as per the total value of the vehicle. in case of higher end brands like porsche etc., the opposite is true.
if your mileage is predictable, if you can get a lower than finance lease rate, if you can negotiate a deal with zero down and zero security...and if you wanna drive a new vehcile every few years....leasing is the way to go. some will argue that at the end of the term, you will have a vehicle with some market value in your hands....yes thats true but you have had paid extra every month over the years to build that equity so in the end......you have that value cuz you paid out of your pocket.
my simple rule is...buy what appreciates and lease what depreciates.
usdm....what that article doesnt specify (and this is my assumption) that in case of leasing, you are shooting over your total allowed mileage and the lease rate is higher than the finance rate (which is typical in the US) but in Canada, the opposite is true in alot of cases. unless that article shows what the rate, term, dp, residula factor and other comparable variables were in their calculation...i dont buy the argument. i bet they were not the same.
I leased my 08 civic si and i am paying almost half of what i would have paid if i had financed it. there was no down payment or security required and lease rate was half of the finance rate offered at the time. the residual factor, in case of most japanese manufacturers is 51%...meaning your payments are based on this percentage as per the total value of the vehicle. in case of higher end brands like porsche etc., the opposite is true.
if your mileage is predictable, if you can get a lower than finance lease rate, if you can negotiate a deal with zero down and zero security...and if you wanna drive a new vehcile every few years....leasing is the way to go. some will argue that at the end of the term, you will have a vehicle with some market value in your hands....yes thats true but you have had paid extra every month over the years to build that equity so in the end......you have that value cuz you paid out of your pocket.
my simple rule is...buy what appreciates and lease what depreciates.
01-May-2008, 02:42 PM
#8
Junior Member
Join Date: Oct 2007
Location: Scarborough
Posts: 27
Leasing used to be way more expensive compared to finance if you calculate the final car $$ (assuming u are buying off the car). However, with the recent economy and canadian dollar, the game is changed.
I just lease a 2008 Taffy White Honda civic, 4 door, LX-sunroof
0 down, 0 sec deposit, 300$ month tax in for 48 mths, 24000 KM a yr.
Buy back is $10500 after 4 years. 1.5% leasing rate, 1000$ green rebate on manual
So if u do da math, its around 24-25K after 4 yrs assuming I buy out.
If you decide to choose finance, the final car payment would be about the same. Just take the final car price divided into payments and add the interest rate. Maybe up/down $1k difference in da end.
Its really how u want the car in the end. If u drive a lot, finance is the better option.
I just lease a 2008 Taffy White Honda civic, 4 door, LX-sunroof
0 down, 0 sec deposit, 300$ month tax in for 48 mths, 24000 KM a yr.
Buy back is $10500 after 4 years. 1.5% leasing rate, 1000$ green rebate on manual
So if u do da math, its around 24-25K after 4 yrs assuming I buy out.
If you decide to choose finance, the final car payment would be about the same. Just take the final car price divided into payments and add the interest rate. Maybe up/down $1k difference in da end.
Its really how u want the car in the end. If u drive a lot, finance is the better option.
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