Added 1,000 of conquest rebate to this quote, which brought the payment down to $405/mo.
Why not just buy it?
A post was merged into an existing topic: Off-Topic Landfill 6
While leasing isn’t for everyone, it has some advantages compared to buying.
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Leasing has built in GAP insurance, and provides optionality to exit at the closed end residual. If the vehicle is totaled or damaged during the lease term, the lessee can exit it without worrying about diminished value or being underwater.
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Leasing has the optionality at the end to choose if purchasing the 3 year old vehicle makes sense, rolling the equity into a new vehicle makes sense, or simply disposing of the vehicle makes sense. Since we cannot predict the future, having optionality carries some intrinsic value.
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The cost of funds for a lease are in line with the borrowing costs of a loan. We’ve determined (based on the LH Calculator) that the buy rate was not 0.0015 as the above sheet states. The buy rate was what Fobi126 signed, 0.00245. Leasing and buying are broadly equal from an APR perspective
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Leasing provides opportunity cost benefits. If Fobi126 had purchased this vehicle with a 5 year loan, the monthly payments would be higher than on this comparable lease. This is because a loan has a interest + principal payment, while a lease is only the rent charge. If Fobi126 saves the monthly differential between the lease vs buy scenario, then he could invest this cash (or use it to pay down debt) and take advantage of the opportunity cost of capital. At today’s interest rates, this is a significant possible return.
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The $0.15 per mile overage with Honda is pretty good. If Fobi126 goes over miles, he won’t get absolutely worked over on this lease. Unlike the Dodge Charger EVs with a $0.50 per mile overage.
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Leasing allows access to future loyalty incentives. While some on LH think leasing a Honda “is dumb”, if Fobi126 decides he always wants a fresh new Honda, then he’d get some incentives.
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This was already extensively discussed in another thread, which you can read here (so it does not need to be re-discussed in this thread):
Congrats! At the end of the day paying under $500/mo effective for a practical, fuel efficient crossover is solid.
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It says 436 per month, how come u say 405?
Not a bad deal - I was looking at 450/mo with just 1st at sign same trim/msrp. Conquest only and dealer cash 1950.
Did you miss the first sentence?
”Added 1,000 of conquest rebate to this quote, which brought the payment down to $405/mo”