Originally posted by Bullet:
Lease
48 month lease at 3.40% is $430.34 per month with $11,736.00 left in order to buy at the end of the lease. That comes out to $32392.32 in total for the car.
There is a slight flaw with that. The $11.7k buyout does not include taxes which are about 15% IIRC.
I would not lease long term, especially w/ high KM rates that you plan to do. What if the particular car you are leasing is a lemon. Well, not quite a lemon enough to use the lemon law if you have it in CA, but it is plagued with problems, or you just don't like it after 3-4 years. You either pay the penalty for the extra KM's and turn it in, or buy it, and sell it for significantly lower than the residual because of the extra KM's.
Those who drive a lot should not lease (except for business writeoffs in the US at least). A friend of mine was caught up in that and ended up carrying over the penalties into the 3rd car he leased. His montly payment is double what the special lease rate should be. He fianlly financed a car and is almost paid off, but he still had $7k USD rolled into that car cost on a basic $16k Accord.
If you cannot afford the 48mo finance, how about the 72 month one? $55 more/mo, but you'll get equity at some point (4-5 years probably) and if you do keep it you'll pay it off sooner with a lower overall sum of payments. If you cannot afford the 72 mo payment, then look for a cheaper car for now.
How many KM's per year do you think you'll be using? It is almost always cheaper to pay for them up front on a lease.
I am leasing two vehciles right now and buying/financing a third. One lease I paid for 6k extra miles/yr up front at 12c/mi after taxes. If I had not paid up front, they would charge 20c/mi when I turn it in. The other lease has standard mileage allowance, 12k/yr. Since I paid for the whole lease up front (special promotion $2279 USD out of pocket for 2 yr/24k miles), I'll just turn it in when I reach the mileage limit, be it at 18 months or 20 months projected.
Last edited by APT; 01/17/06 05:23 PM.
