Gone are the days where an Accord Sport could be leased for $230 a month sign and drive with barely any negotiations…
There are countless threads here that show the Accord is better to buy than lease.
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My last sport I had for around $235-240 range.
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So I’m assuming the civic Is a 12k lease. You are approximately 3k over with a few months left. Sounds like you will be 5k over, which im sure with a new Honda lease they will work it out. Aside from that whats the cost of the buyout? And if you could make 2k private I think that would be well worth the hassle. Just saying.
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If it’s not this month, in OP’s region doesn’t matter. Different programs, incentives, and inventory no?
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@chrishs2000 @EC99
I just went to an auto loan calculator and with the same purchase price ($28,160), 0 down, and 9% tax with an APR of 1.9% for 60 months - my payment would be $535. I don’t understand how that is a better deal? I won’t keep the car 5 years or more - I will keep it like 2 or 2.5 and then sell/trade in and move on to the next. Wouldn’t the better deal be to lease it at 10k miles which will drop my payment where I need it to be…knowing I will go over miles but also knowing I won’t drive the car the full lease term anyway. Sorry if this is a dumb question, maybe I’m just not understanding this situation correctly.
@Traderx I shouldn’t have said a “few months” lol - it’s March of next year the lease is up. I can’t go through another winter in Kansas with these tires - I slid coming out of the car wash the other day lol. I of course do all routine maintenance timely and as directed by Honda but once we get into buying tires and brakes etc. for a vehicle I do not own and will never own…that’s when leasing doesn’t make as much sense. (Unless I’m missing something…which is possible.)
No. You’re not. Don’t look at payment, look at long term cost. If you drive short term, then you have a lease payment, but if you purchase you have a reliable car worth more than the financial service believes.
You can drive as much as you want, your real world RV is often higher than what Honda sets, and you can spread the cost over 60 months of reliable accord driving.
28k and interest over 10 years service life, adding routine maintenance and parts replacement is going to be less than your effective lease payment of closer to 400 per month.
If you keep a brand new car for just 3 years that not a wise financial decision, maybe buy a late model year CPO, unless Honda added some features recently to the 2020 MY: which I am unfamiliar with.
You’re basically paying for someone else’s depreciation, either the person who buys you’re car when you sell it, or the financial service. Why?!?
How much can 4 tires for a Civic be?
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As a preface, i’m thinking total cost of ownership not cash flow. At the end of two years I’d rather my total cost be lower even if my monthly payments were higher. But this is a very personal decision based on your financial situation and preferances.
As for your plan, to me it has the same/greater risk as buying. You want to lease with way fewer miles than you need to keep payment down and then plan to sell it after 24-30 months. That should work most of the time since since the RV is artificially low. The problem is an accident. You get in a serious accident that doesn’t total the car you likely won’t be able to sell it for enough to cover remaining payments and RV (after 24-30 months) or to cover RV (at lease end). If you finance the car then you just keep making payments till you are even. But in a lease you will need to bring a lot of money to table at lease end to cover the mileage overage. You could always buy out lease but then you are buying a car for less than it’s worth and at a higher used car APR.
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I also don’t think it’s good to assume the value will be higher than your payoff two years from now (even without an accident). This used car bubble will eventually end and we’re likely looking at a slow economic recovery.
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I really appreciate all the feedback and insight from everyone but I will admit I am extremely confused with the number of people saying to buy vs. lease. I will be straightforward in that I can’t afford over $500 a month in a car payment and even if I could afford it - I would resent spending that much on an Accord (vs a much more expensive vehicle). I get what you all are saying about long term value - totally get it - that math works out. But I am not in it for the long term. I thought that was the point of leasing and the point of this site and forum. Don’t look at payment? That is all a lease is right, assuming no money down, etc. The sale price of the car determines that payment but if I say 10k miles a year my payment will be like $357, not $400. Spending $150 more a month to buy a car I never plan to own will be more cost over 24 - 30 months right (assuming no accidents which I thought that’s what GAP coverage was for, which Honda provides automatically).
Don’t most people on this forum lease for 2 - 3 years and then move on to a new lease? I am so confused by advice telling me not to lease a new car - isn’t that the point??
Also - new tires for my Civic that aren’t trash tires are about 800 - 1000 - about what I need at signing for a new lease and dealer said it will not affect my trade in value or what they will pay me - so it makes no sense to me. I am so confused by this advice - I feel like it is all over the place lol. Wow. I will think about it but buying the car is pretty much out for me. I’m leasing - that’s the only way I can afford the car I want…
At least for this car at this time you are trying to force a square peg through a round hole. Leasing can be great but you sometimes need to be flexible on the car you want to get a good deal.
Also personally I try to lease cars I could also afford to buy bc just going with the lease payment you can afford is financially short sighted.
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800 to 1000 for a set of tires for a civic seems high
Not too too bad - I picked up by 2.0T back in Sept - yes yes, I know, more than 10 months ago and not really valid in this situation. It was a $0 sign and drive with 15k miles for $379 all in, on a standard 36 month lease in NJ. Most dealers were originally quoting me as high as $430, but obviously that was way out of the question. With being home from covid all these months I only have 6600 miles on my car - gonna end up selling to carvana or vroom once I’m in a little bit of a profit (incase they try to lower the value of the car for whatever reason). Too bad Honda doesn’t allow lease transfers - since you only planned on keeping the car 2 to 2.5 years this would’ve fit the bill perfectly. Good luck tho, keep us updated!
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There are some cars that do not normally lease well based on the residual value, incentives, money factor and dealer discount. For example, most Porsches don’t lease well since they are not normally discounted much and the manufacturer does not offer much in incentives.
As for the Accord and your deal, if 12.9% off MSRP is the best discount you have been able to negotiate, then I will go for it (if I were in your shoes). However, since we are now in August, confirm numbers for MF and RV on Edmunds.
How many more months do you have left on your civic lease? Looks like you are already over the alloted miles, correct?
Yes, but everyone’s situation is different. Before this forum, I purchased my 2013 Accord brand new 5 years ago. 2 years ago, I decided I wanted to try leasing and got myself into an Audi A4.
At the end of the day, do what makes sense financially. If you plan to drive 15k miles a year, I would suggest getting a lease with those terms.
Good luck.
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I just looked at Tirerack’s decision guide … for an assumed 2018 Civic LX I put emphasis on winter traction and value, it came back with three tire choices between $95-120 each.
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If OP is already over on mileage I don’t think selling the car to carvana or vroom now is a bad idea. If used car prices don’t hold she could be suck paying at the end of the lease (plus the cost of tires, out of warranty…). My advice would to just be open to other cars.
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If you can’t afford a $500 payment like you said then don’t finance, lease it.
Yes, this is a leasing forum but the point of this forum is not “leasing it no matter what”. There are some instances where buying makes more sense than leasing.
Also you can’t compare a monthly lease payment with a monthly car loan payment just buy the monthly number. You do realize that after paying off the car you own the car and you can sell it for certain amount of money right? So, in reality those $500 monthly payments don’t go to air entirely.
This poster is driving an alfa Romero for just about the same price as that sport 2.0
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Tires don’t just go from having snow traction to sliding out of a July car wash in 6 months. I suspect you must have realized last winter your tires needed to be changed. So even though you had almost two winters and 15 months left on your lease you decided you weren’t going to spend a dime on a leased car, no matter how danger it posed to yourself, your passengers and innocent bystanders.
TLDR leasing probably isn’t right for you. Buy something that’s in your budget.