Buy or Lease?? - Honda Motorcycles - FireBlades.org
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post #1 of 29 Old 06-30-2004, 10:25 AM Thread Starter
 
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Buy or Lease??

Well I started thinking the other day about scoring a new cage in the relatively near present. Found the one I want now I cant get it out of my head so whats your opinion buy or lease??
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post #2 of 29 Old 06-30-2004, 10:33 AM
 
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Re: Buy or Lease??

Buy.

The only way leasing is financially better is if you need to reduce your cash flow or you can write it off as a business tax expense. Given my conversations of NH in the past, I doubt "tax write-off" is a route you'll care about.

Purchasing with such low interest rates is dirt cheap so why not? Leases ALWAYS screw you in the end... They're VERY nice to you for the duration of th lease and turn like sharks the minute your lease is over.

Jordan H.
The three most feared words in racing, "Powered by Honda".
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post #3 of 29 Old 06-30-2004, 10:54 AM
 
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Re: Buy or Lease??

I have leased and bought several cars in the past.

They both have their merits and disadvantages. I'd say if you wanna get a car with no money down, do a lease. But be prepared to keep it the duration of the lease. "Buying out" a lease to trade for something else can put you seriously in the hole. If you buy a car with no money down, you are practically in the same boat if you try to sell it before its paid off, so its not much better...
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post #4 of 29 Old 06-30-2004, 11:13 AM
 
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Re: Buy or Lease??

dont forget about the mileage usage. if you are going to go over be prepared to pay
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post #5 of 29 Old 06-30-2004, 11:26 AM
 
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Re: Buy or Lease??

Oh crap what in the hell did you get in your mind now Capt. Impulse. Will this put a damper on you plans for the future? IMHO...I say buy, leasing is only good if you don't drive that much. I guess it depends on what type of vehicle you are speaking of...truck, 2 or 4 wheel drive, car?

Dano

Dan
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post #6 of 29 Old 06-30-2004, 11:59 AM
 
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Re: Buy or Lease??

It depends on multiple things.
What car are you looking at?
How long will you (really) keep it?
How much do you want to put down?
Manufacturers will put special leases on certain cars, and shitty leases on others. There are leases out there that have "rates" (there is no interest rate at all on a lease, but a 'money factor' that can be used to determine what an equal interest rate would be) of less than .3%.
If you plan on only using the car for ~3 years, you'll be better off with a lease - if you can get on a special lease program. True, you can be screwed at lease end if you just turn the car in. However, if you trade for a new car from the same make the miles driven don't mean anything, as it is just like trading in any other car.
You have more options with a lease, and if you are smart about it you will save money in the end on the right car and right lease.
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post #7 of 29 Old 06-30-2004, 12:06 PM
 
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Re: Buy or Lease??

Quote:
Originally Posted by BDA116
If you plan on only using the car for ~3 years, you'll be better off with a lease - if you can get on a special lease program. True, you can be screwed at lease end if you just turn the car in. However, if you trade for a new car from the same make the miles driven don't mean anything, as it is just like trading in any other car.
You have more options with a lease, and if you are smart about it you will save money in the end on the right car and right lease.
What do you mean by a special lease program?

"However, if you trade for a new car from the same make the miles driven don't mean anything, as it is just like trading in any other car. "

Can you expalin a bit more on this?
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post #8 of 29 Old 06-30-2004, 12:13 PM
 
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Re: Buy or Lease??

Quote:
Originally Posted by RRWANTR
What do you mean by a special lease program?

"However, if you trade for a new car from the same make the miles driven don't mean anything, as it is just like trading in any other car. "

Can you expalin a bit more on this?
Just what he said... You can "buy out" a lease just like you can a financed vehicle. There is a cost associated based on the lease price and what you have already paid, just like on a "buy". That amount vs. what the car is worth will dictate your trade. So if you "owe" more on your lease than what the car is worth, you are upside down, just like in a financed situation.
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post #9 of 29 Old 06-30-2004, 12:20 PM
 
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Re: Buy or Lease??

Well, I can give you specific details on the way Mitsubishi works their special leases, and pretty much all manufacturers have them.
Mitsubishi's top tier Diamond lease typically is at 48 months. However, after 36 months they offer to buy out your remaining lease if you trade in on a new vehicle. You are given a "payoff amount" that more or less equals your residual value plus the remaining payments. They then offer you a dollar figure - typically equal to your remaining payments - to reduce your "payoff amount". You go to a Mitsubishi dealer, they offer you the typical wholesale figure on your "trade in" which would more or less equal your residual value. You do not pay the 15-17 cents per mile or any other typical lease-end hits and drive away in a new car.
Just for example, it looks like the Lancer Ralliart lease has a money factor of .00001, which gives and effective "interest rate" of .024% (money factor * 2400).
On the Galant and Edeavor they are throwing in the scheduled maintenance for free, so you don't pay for oil changes or tire roation/balance, etc.

Every manufacturer does these types of leases, I just used Mitsubishi as an example because I have first hand experience with theirs. You just need to find the right timing and the right car.
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post #10 of 29 Old 06-30-2004, 12:29 PM
 
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Re: Buy or Lease??

No matter how you slice it, leasing is more expensive. Like I said, it's easier to write-off as business expense and the payments are lower than a finance. However, if you total all the expenses at the end of the period, a finance is least cost.

Also, when comparing the two, you make assumptions like "I won't get in any accidents" and "I won't go over the mileage".... but in reality, these things happen and the lease company will ding you at every chance they get. Up here, the normal mileage per year is 24,000km (15,000miles)... I couldn't keep it under that if I tried. So for every km after that, they ding you a large amount! Those dimes add up quickly and you end up paying $thousands -or- they offer you the 'easy' way out of leasing another one of their cars. It's a rock & hard place sell... not a good place to be.

Jordan H.
The three most feared words in racing, "Powered by Honda".
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post #11 of 29 Old 06-30-2004, 12:35 PM
 
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Re: Buy or Lease??

oh, and I got a special lease program on the 2004 RSX Type S I bought back in march. It was actually cheaper than the base RSX lease was. I paid no money down, no taxes, no security deposit and I only had to make 35 payments, not 36.

They do this on vehicles they may need help moving off the lots etc. Also note, a lease is better on a car that will typically hold its value. You can lease a nice acura or lexus for about what a chevy would be...
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post #12 of 29 Old 06-30-2004, 12:58 PM
 
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Re: Buy or Lease??

You are also held responsible for any repairs that need to be done to the car when you turn in it from leasing. Buddy of mine forked over about 1k on a Bug.
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post #13 of 29 Old 06-30-2004, 1:25 PM
 
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Re: Buy or Lease??

Again, all these lease end expenses such as mileage, repairs, etc. ONLY apply if you are just turning the car in at lease end.
You do not have to just give the car back at lease end, you have options.
If you are planning on driving the car for a few years and trding it in, you will be better off on the special lease cars - and yes, you will be paying less overall on ANY special lease vehicles than if you buy.
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post #14 of 29 Old 06-30-2004, 1:53 PM
 
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Re: Buy or Lease??

**** leasing. If you are smart, can find a great price on the car/truck (use Edmunds.com, great info there), get a good APR, and buy something that has resale on the higher end of the spectrum, you can beat leasing anyday of the week. I've had 4 cages in the last 3 years, and the only $ I've spent is the payments but I built equity or broke even with 0 money down on all of them, and I didn't have to worry about mileage, damage, etc. Leasing is for business write offs or for suckers
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post #15 of 29 Old 06-30-2004, 1:59 PM
 
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Re: Buy or Lease??

The Plant Controller here at work says unless it's a write-off, buy, buy, buy.

'Nuff said!!
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