ASMspec

But thats what some people want to do and thats all on them. Personally, I put $20,000 cash down. I walked away with what I wanted to pay a month and for a short period of time. No way in hell I would pay more than $300 a month for this car. I hear of so many people paying $500 a month. For $500+ a month I would have a Ferrari . So glad its paid off.

Scot

[QUOTE=QUIKAG (A CERTIFIED PUBLIC ACCOUNTANT) ,May 26 2005, 11:13 AM] A local dealer is offering me a brand new '05 S2000 with $5,000 down (including tax, title, license fees, 1st month payment) and 35 subsequent payments at $400/month for a total of 3years/36k miles.

In Texas you pay 6.25% sales tax on the total price.

mic_crispy

hey guys. im looking to get into an s2k VERY soon... i will more then likely get a used 04... but after seeing what some of you are paying for your leases i might do that.. my question is.. how on earth do you lease a 30k car, for 3 years, 350 month with zero down etc? i havnt gone into serious negotiations with my dealer yet... but after some quick chats he lead me to bealieve that anything under 500/month lease for this car is impossible.. am i missing something? and my credit is not bad at all so that wont be a problem.. (but we havnt even gotten that far yet).

and i know this may sound newbie, but on honda's little lease calculator, even if i got the selling price to 32,000. with zero down it says 512 a month.. i dont understand...

Jay2000

You are correct, you will probably be around 400-450 a month 0 down, It depends on what percent alg puts the residual at for 36 months.

mic_crispy

what about stuff like that?

LaZySeE

that is an insane deal my friend, is that including tax, if so im sure id like to lease, id even settle for 299 a month

Brownergy

I didn't read through the entire thread, but I put $16,000 down on a used 02 going for $24,500 over a year ago and am now in a position to pay the car off, sell for $22,000 - $24,000 and buy an 05-06 for $30,000, taking the exact same loan I did a year ago. I believe owning is so much better than leasing. Good luck in whatever you decide, you're getting more than you're paying for no matter what the price is.

knlg

This is a bad deal. Everone who has told you that you do not want to put money down is correct. The idea with a lease is that you will never own the car, therefore, you want to spend as little money on the car. That is why you need to consider the residual. This car has a good resale value, so the value of the car in three years should equal the residual.

Start with the cost of the car now. You should be able to get the car for about $29500. I know that is what my dealer will sell one at if you have a Costco membership. This price is also hassle free, so I bet it could get even lower. So, $29500+ tax of 6.25% = $31,344. Plus tags... So lets say $31,500 should be the "out the door" price.

Your lease that your mentioned has you paying a total of $19,000. One thing to consider is sales tax of the lease. Does the $400 include the sales tax? If not, the deal is worse. But, lets just say it does inlude the tax.

The way your payments work out says that the residual is about $12,500 (31,500-19,000). There is NO WAY that a 2005 S2000 will be worth $12,000 or less in 3 years with 36k or 45k miles. Kelly Blue Book says an '02 with 35k miles is worth $23,950 retail. So, you see, this is a bad lease. You should only be paying about 31,500-23,950 = $7,550.

The way you deal with a lease is to negotiate on the selling price. However, no matter how low you can negotiate this price, this may not work out. This car is just a bad car to lease. It may not be the dealer screwing you over (enitrely).

The other factor in determining the lease is the is the MONEY FACTOR. This is the "interest" of the lease. It has a huge factor in how the lease works out. I used to know the equation but I have forgotten. Check out this link to understand more:
http://www.edmunds.com/advice/leasing/arti...81/article.html

Regardless, this is a car to buy. If you have $5000 to put down, you could easily buy an '04 with a warranty and have your payments be less than $400 a month. How do I know, I just did it three months ago. I got my '04 S2K with 10k miles for $24000. My out the door price was about $24,000. With $4000 down, my monthly payment is $380 for 66 months. This is a decent deal for a car that holds its value. I also took the 66 month lease b/c it was the same rate as the 60 month. i just pay more monthly now, but, if finances become problematic at some point I can revert to the lower payment.

I hope this helps you out some.

By the way, the last thing you want to do when leasing a car is pay for maintenance. This car is going to need 2-3 sets of tires during the 3 years you have it. That is another $2000-3000 to consider.

steven975

lease price = depreciation + interest

depreciation: (Purchase price-residual)/#months

interest: (Purchase Price+residual)/*money factor

the money factor * 24 is your effective interest rate in % form. If it is >5% and you have good credit, you are being robbed.

Jay2000

Quick scenerio:

purchase price, realistic $30000-31000.

residual is a % of msrp; around 65% = 21775 close to that.

money factor .00200= around 5%

term 36

A zero down scenerio 30500*6.25%=1906+30500=32406 cap cost (If that is how your state does it.)

cap cost- residual= 10631 divided by term= 295(depreciation)

cap + res =54181 * money factor=108(interest)

dep+int= 403 That is pretty close from the info you gave us the res and money factor are guesses but will be close. The only thing left will be sec dep and 1st payment up front. For a little higher money factor they will do a 0 sec dep. you can roll your first pmt into the cap cost, it will raise your pmt. accordingly. any money down you would use take off cap cost and recalculate.

Good luck