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BR1T1, that's a pretty silly statement: Leasing isn't dumb - actually, it can be to your advantage (financially) and end up costing you a lot less in the long run.


For example:

Lets say you have $20,000. Check out the 3 examples and tell me what you'd rather do:

1. Pay for the car up front and dump the whole 20K and pay tax on the whole 20K. I think this is the worst move: Too much oppurtunity cost (can't do anything else with your money).

2. Finance the car. This means that you have the bank buy the car and then you pay them them a compounded 3-11% interest rate (this can be very costly) and you're stuck paying for the car, even if you dont want it a few years down the road and you pay tax on the full amount. Worse, if the car depreciates more than expected you can end up owing more than the car is worth 3 years down the road.
However, you still kept most of the 20K, so at least you can invest it in something like a money market account (so you might be able to beat the finance charges).

3. Lease the car (pay for depreciation). Finance charges are usually a lot less (.9-5%). You can also walk away without any down payments (you keep your money, so your money can make money for you, not your damned dealer). Also, if you choose to buy out the car at the end, you pay the balance of the list price (which, after 2-4 years, is going to have a lower "net present value" because money costs us (or in this case, the dealer, 3% a year (inflation)).

So, it's clear to me (and should be to you) that leasing can very well be to your advantage.


The lease for my 2001 Integra GSR (list: $23K)

12,000 miles a year, $275.00 a month, nothing down.
Buy out = $19.5K - 275 X 36 (buyout = 11K)

The agreed upon selling price was $19.5K and the APR was calculated at .9% (so I had the lease calculated at invoice, with a super low finance charge). So after 36 montly payments (about 10K) I'll owe the balance... all the while, I was able to pay most of my lease with the interest earned from the original 20K :) and I don't worry about the 12K miles per year, becaus I'm going to buy it out at the end of the lease anyway.
 

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if you have all the cash its better to just pay it of in one at bat. ys you have just spent the 20,000 but you pay no percent of interest and now you can start saveing money again that is actualy yours and not anyone elses,obviosly if you pay in cash thats the best deal.
 

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one more thing:

Leasing isn't hard. And you shouldn't decide upon a lease based solely on what you can afford per month. Break it down:

Assume that the car will lose 50% of its value in in the first 3 years (most leases are 36 months).

1. So first, agree upon a selling price for the car (some where between invoice and MSRP).
2. Then get a good APR % from Honda Finance.
3. Then take 1/2 the car's cost and divide it by 36 (for 36 monthly payments).
4. Then calculate the buyout: buyout should = the other half.

It's really quite simple... and there's a reason why dealer's dont tell you this: they like taking advantage of people.
 

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Integra15lb, if you can beat the finance fees with intelligent investments and financial planning, why not? It's free money, dude.
 

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Well I hope you have the buy-out figure in writing. If so, you got a great deal. Usually, there are bank fees and deposits associated with leasing. You're lucky if they didn't add them on...Plus you won't get 0.9% financing on a RSX.

I think you got a great deal, but I don't think your numbers are typical.
 

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Discussion Starter #27
By "oem widebody" im assuming you just mean the underspoiler? No, I didnt get it or the wing yet because I want to put the Type R bodykit and wing on the car.
 

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Not to snipe the thread, but here is a chart of the gear ratios that someone made a while back for the RSX-S. This is in regards to the 1st to 2nd shift post showing that you will land around 5300 rpm from 1st to 2nd gear. Hopefully it will not get distorted upon posting.



speed vs rpm (in MPH)
Rear End Ratio= 4.388 mm in
Revs/Mile= 835 Size= 205 55% 16
factor= 0.92 for "loaded" radius of tire

Gear Ratio
....... 3.266 2.130 1.517 1.147 0.921 0.738

RPM
2,200 11.03 16.91 23.75 31.41 39.12 48.82
2,400 12.03 18.45 25.91 34.26 42.67 53.25
2,600 13.04 19.99 28.07 37.12 46.23 57.69
2,800 14.04 21.53 30.23 39.98 49.78 62.13
3,000 15.04 23.06 32.38 42.83 53.34 66.57
3,200 16.04 24.60 34.54 45.69 56.90 71.01
3,400 17.05 26.14 36.70 48.54 60.45 75.44
3,600 18.05 27.68 38.86 51.40 64.01 79.88
3,800 19.05 29.21 41.02 54.25 67.57 84.32
4,000 20.06 30.75 43.18 57.11 71.12 88.76
4,200 21.06 32.29 45.34 59.96 74.68 93.19
4,400 22.06 33.83 47.50 62.82 78.23 97.63
4,600 23.06 35.37 49.66 65.67 81.79 102.07
4,800 24.07 36.90 51.81 68.53 85.35 106.51
5,000 25.07 38.44 53.97 71.38 88.90 110.95
5,100 25.57 39.21 55.05 72.81 90.68 113.16
5,200 26.07 39.98 56.13 74.24 92.46 115.38
5,300 26.57 40.75 57.21 75.67 94.24 117.60
5,400 27.08 41.52 58.29 77.10 96.01 119.82
5,500 27.58 42.28 59.37 78.52 97.79 122.04
5,600 28.08 43.05 60.45 79.95 99.57 124.26
5,700 28.58 43.82 61.53 81.38 101.35 126.48 vtec
5,800 29.08 44.59 62.61 82.81 103.13 128.70
5,900 29.58 45.36 63.69 84.23 104.90 130.92
6,000 30.08 46.13 64.77 85.66 106.68 133.14 142 lbf-ft
6,100 30.59 46.90 65.85 87.09 108.46 135.35
6,200 31.09 47.67 66.93 88.52 110.24 137.57
6,300 31.59 48.43 68.01 89.94 112.02 139.79
6,400 32.09 49.20 69.09 91.37 113.79 142.01
6,500 32.59 49.97 70.17 92.80 115.57 144.23
6,600 33.09 50.74 71.25 94.23 117.35 146.45
6,700 33.59 51.51 72.32 95.66 119.13 148.67
6,800 34.10 52.28 73.40 97.08 120.91 150.89
6,900 34.60 53.05 74.48 98.51 122.68 153.11
7,000 35.10 53.82 75.56 99.94 124.46 155.32
7,100 35.60 54.59 76.64 101.37 126.24 157.54
7,200 36.10 55.35 77.72 102.79 128.02 159.76
7,300 36.60 56.12 78.80 104.22 129.80 161.98
7,400 37.10 56.89 79.88 105.65 131.57 164.20 200 hp
7,500 37.60 57.66 80.96 107.08 133.35 166.42
7,600 38.11 58.43 82.04 108.50 135.13 168.64
7,700 38.61 59.20 83.12 109.93 136.91 170.86
7,800 39.11 59.97 84.20 111.36 138.69 173.08
7,900 39.61 60.74 85.28 112.79 140.46 175.29 redline
8,000 40.11 61.50 86.36 114.22 142.24 177.51
8,100 40.61 62.27 87.44 115.64 144.02 179.73
8,200 41.11 63.04 88.52 117.07 145.80 181.95 shift
8,300 41.62 63.81 89.60 118.50 147.58 184.17 rev limit
8,400 42.12 64.58 90.68 119.93 149.35 186.39
8,500 42.62 65.35 91.76 121.35 151.13 188.61
 

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Leasing sounds great on paper, but most people are unable to trade out of a lease without huge inequity if they decide they want something new in just a few years.

I leased my 99 Accord, and we will keep it through maturity, but then I am turning it in, and buying another Honda/ Acura, but this time used.

Why buy used?

Easy: The depreciation hit has already been taken by the previous owner, and I still get a Honda product that will last for as long as I care for it. I shop around, and find the ideal used piece, then buy over a short term for little money. This frees up the bulk of my dual income for other "opportunities" (mods baby MODs!) and I own it, so I don't have to worry about buying the damn thing again later, or stripping off my mods to turn it in.

And now there are lots of RSX Type-S's out there for me to choose from.... Yummy!

Phil
 

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Discussion Starter #30
Yea but if it wasnt for leasing, I wouldnt have the car. Im only 20 and im paying for the car and the insurance by myself. Not to mention my $14,000+ college loan and all my other bills. Its not easy.
 
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