Help! Confused, lease or buy?
Thread Starter
Newbie
Joined: May 2007
Posts: 24
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From: NYC
Honda
Help! Confused, lease or buy?
I used to think that it is always cheaper to finance than lease in the long run. I have been reading all the lease info out there and am really confused now. Maybe someone can help me out.
08 S550 4matic MSRP 105,635k
I had initially planned on financing putting down 35k 60 months at 6% interest rate to get a 1,391 monthly.
Then I read that it doesn't make financial sense to put money into a depreciating asset. Instead I should look into a lease and put nothing down.
Using some calculators, a lease for 48 months(warranty period)/nothing down/12k miles. Residual 33,066, MF .00242 =1,869 monthly.
Which route is more financially prudent?
I kept my 1st car for 5 years and my second car which I now have for 8 years. I plan to keep this new car for at least 8 years, possibly until a new model comes out.
I live in NY.
Thanks.
08 S550 4matic MSRP 105,635k
I had initially planned on financing putting down 35k 60 months at 6% interest rate to get a 1,391 monthly.
Then I read that it doesn't make financial sense to put money into a depreciating asset. Instead I should look into a lease and put nothing down.
Using some calculators, a lease for 48 months(warranty period)/nothing down/12k miles. Residual 33,066, MF .00242 =1,869 monthly.
Which route is more financially prudent?
I kept my 1st car for 5 years and my second car which I now have for 8 years. I plan to keep this new car for at least 8 years, possibly until a new model comes out.
I live in NY.
Thanks.
Last edited by scriber; Aug 30, 2007 at 06:27 PM.
Former Vendor of MBWorld
Joined: Jan 2005
Posts: 583
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From: Cincinnati, OH
I would say with your history you would probably be better off not leasing.
One reason to lease in your situation would be to "test" the car for a couple of years and then decide whether you want to buy it after the initial lease term or turn it in.
Another reason to lease would be if the vehicle were in some type of accident. Most accidents are now reported to Carfax and will show up on the title, as "frame damage". We are running into this a lot on higher end cars that have had repairs done, even though the repairs have been performed flawlessly. A lot of cars are unibody and any type of repair made to them is considered "frame damage". Bottom line as with this branding by Carfax your vehicle will sell for less. If you had leased it there is not hit to you.
One reason to lease in your situation would be to "test" the car for a couple of years and then decide whether you want to buy it after the initial lease term or turn it in.
Another reason to lease would be if the vehicle were in some type of accident. Most accidents are now reported to Carfax and will show up on the title, as "frame damage". We are running into this a lot on higher end cars that have had repairs done, even though the repairs have been performed flawlessly. A lot of cars are unibody and any type of repair made to them is considered "frame damage". Bottom line as with this branding by Carfax your vehicle will sell for less. If you had leased it there is not hit to you.
