Part of this post was about you wanting to pay cash. Because you didn’t want to jump through hoops on financing. Now you’re talking about leasing,which is even more complicated. You’re just starting all over again. Just buy the car. If you’re tired of the car in 3 years,trade or sell it.I am wondering if leasing is good for me to change my mind 3 years down the road (I know I can trade in as well).
I have seen postings that leasing terms are supposed to be better because you're paying depreciation and interest.
So for the sale price of 45,592, what would be good lease price and terms? I have never leased a car before so I know very little.
(I am looking at 12K miles/year) 3 year lease.
I went with cash + 10K lease to get discounts.Part of this post was about you wanting to pay cash. Because you didn’t want to jump through hoops on financing. Now you’re talking about leasing,which is even more complicated. You’re just starting all over again. Just buy the car. If you’re tired of the car in 3 years,trade or sell it.
I don’t think any financial analyst is going to tell you that leasing makes more sense in the long run. Unless you are writing it off. Leasing and buying the car after the lease makes even less sense. If you are only interested in lower monthly payments,then what was this whole post about? Less leasing will give you lower monthly payments. Then at the end of 3 years you have nothing. How do you go from paying cash to renting a car? Yes,leasing is renting a car.
“I have seen postings that leasing terms are supposed to be better because you're paying depreciation and interest.” Doesn’t even make any sense.
I was just checking all my options with making sure that lease didn't offer more savings (it doesn't).I second what Elvis wrote.
The bottom line - if a dealer is pushing something, as they often do with leasing, it's usually because they stand to make a larger profit. They have teams of people whose entire job is to set up things like lease programs in a way to maximize profits and at the same time obfuscate for the 'buyer (renter)' the terms such that they don't really comprehend the true ROI cost.
By paying cash you'll know exactly what the vehicle will cost, you'll feel the 'emotional hit' with writing the big check, which is good for helping you decide whether to buy the more expensive versus less expensive vehicle (as opposed to thinking of it in terms of a somewhat higher monthly payment, which hides the actual cost emotionally somewhat), and 3-4 years down the road, when a typical lease term would have been up, you get to have that second 'emotional feel' when it comes to deciding whether to buy another vehicle already given the depreciation hits, and can better decide whether to write more big checks or just keep what you have longer now that it's on the gentler depreciation curve. That emotional aspect is another reason why car sales people would just as soon you either lease or get a loan and make payments - it's easier to talk you into churning vehicles and thus maximize their profitability.
I think you were on the right track at the beginning of this thread with paying cash versus getting a loan or worse, a lease.
That 45k stays invested when you finance also. But,we have already had that discussion on this forum.You guys are making generalizations on leasing. Right now is a great time to lease an MDX. The dealers lease offer is obviously a lousy offer as he is keeping almost all of the incentive. However, if a customer knows, like I mentioned above, that there is $9,800 of incentives available, you can actually negotiate a better deal than buying, where there is only a $2,500 incentive.
Should have been able to get the adjusted cap cost, including fees, down near 40k. And never pay anything down on a lease. The downside on the current deals is a 5.16% interest rate on the lease. Also not considered is that your 45k (plus sales tax) remains invested (most of it for three years) and you can use income/growth to make lease payments and to write a check for the 28k (plus tax) at the end of three years. Plus you still have the option to hand the car back if you decide you want something else.
Leases are complicated, and you have understand them to make them work. At model year changes is usually the best time to lease.
Congrats on the purchase.Final update:
I picked up the MDX sport hybrid today.
I live in NH but dealer was in MA (Acura of Peabody) so I had to go there this morning to sign the loan paperwork.
I was afraid they would take an hour to sell me all the extra stuff and warranty etc.
Well she did walk me through all of that but firm no was sufficient, I like that low pressure attempt.
I was out of there in 20 minutes, not bad.
As it turns out loan is better than I thought.
My rate was 3.69% which is tad higher than what I could have gotten at local credit union.
The sales guy drove the car to my house and I went with him to the city hall.
He had all the paperwork and he handled the whole process, all I had to do was write the check to city.
After that he explained me all the options of the car and helped set up default settings and pair my phone.
He had his own ride to take him back to dealership in MA.
Very happy 2nd MDX owner