Lease vs Buy Civic Type R | Please help me understand!

Hi trusty community. Can you please help me understand why financing this Civic Type R is better than leasing it for 3 years and just selling it back to a different honda dealership? See calculator

Yes the MSRP is inflated, yes it’s not a ‘‘good’’ deal, but as you see from my previous forum, my friend doesn’t care. It’s a car he wants and I just helped him with the sale price negotiations cause he doesn’t enjoy the process (three places just recently tried to sell it to me for $25k over asking :rofl:)

I know financing is better in this case, but I’ve never dealt with such a bad car (over MSRP) so I’m just super confused. It’s probably easy math that I’m not understanding and am over complicating it. He mentioned when you look at the totals over lifetime spend it doesn’t seem too far apart - but I know that’s wrong.

My friend was either going to 1. lease it and turn it back in/sell it back to a different honda dealership in 3 years or 2. finance it, and probably sell it in 3 years anyways

  1. The one pay lease at for $52k sale price ($45,375 car with 71% residual) is closer to $31k. One pay reduces the APR from 7.32% to 5.4%. I know this is bad.

  2. Financing it with the same $30k down payment means he needs a $27,665 loan for the remaining. The best rate he could get with excellent credit right now is 6.49% - so that’s $500 p/ mo over 66 months. He would only keep it for 36 months then sell it, though (give or take). Of course if we refinance over the term he will continue to save money.

I think the savings difference is around $2k - $3k, but I’m overwhelmed with the calculations.

For reference - the residual value puts the cars value in 3 years at $32,195. Here’s a link to an example of a car from 3 years ago and what it’s being listed for, to give a range on what it could sell for (IDK if this is what I should even be doing for comparison) -

10 posts were merged into an existing topic: Honda Civic Type R | $52,000 | $30.9k one pay (update inside)