Originally Posted by reechy
i paid no down with an interest rate of 1.7%. residual was 59%. how's that?
and oh yeah...the lease was based on invoice price.
Well if you know what you are doing you can swing a good lease :fawk:
Originally Posted by Tark
dude... i am not arguing that it doesnt come more explensive... however it does make a lot of sense for a lot people to lease instead of buying. Go on honda.com, look at a accord LX sedan AT 2000$ down, lease for 48 months = 324/month* (total 15552$). To buy at a interest rate of 8%/48 months it comes to 490/month(total 23500$). now total that up and the difference is 8000$ cheaper to lease...
yes you dont own anything but monthly payment are less dont need as much of a good credit to lease(car is not yours) and many people want to just change cars after the 4 year with no hassle. you have to understand that for alot of people that 8K(with will porbably put down to 7K because of trade in value...) is worth it.
The problem is that with the worse your credit is, the higher your money factor is going to be. It is a higher risk for the leasing company to allow you to drive their car. So, the worse your credit the more you will pay. If your credit is bad enough to be paying 8% on a new car loan, your money factor will be really high or you may not qualify for a lease at all.
Trust me, I know that sometimes leasing is better. My uncle leases all of his cars through his business which gives his overhead a much lower hit. However, leases for a normal consumer usually screw them.