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  • Feb 5th, 2019 9:23 pm
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[OP]
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Sep 5, 2009
218 posts
36 upvotes

lease vs finance

Initially decided to lease the 2019 acura mdx. After doing all the math i figured i will save about 4k if i do financing. Dealer (Pickering Acura) is playing hard ball not to switch. They are saying i need total protection loss and it will cost me so much more..bla bla bla. How much do these people make by selling a lease car? All the dealership seems to be really pushing for leasing. On the surface i don't see much of a difference but maybe i am missing something here on why they are pushing leasing so much.

i may have switched my decision a few times between leasing and financing but for such a big purchase i hoped the dealer will be more accommodating. very disappointed.
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Apr 8, 2010
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aren't they two different things? do you want to own the car or rent the car?

The only benefit to leasing to own is that if theres an accident, you can just repair it and return the car and tax benefits i guess, but you'll be paying more vs financing.
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Sep 1, 2004
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Why are you doing math AFTER you signed the paperwork? And if you have not signed anything and the dealer is giving you the run around, go to another one.

If I recall, MDX is one of the worst car to lease. Good car to lease are ones with high residual but low real life resale. MDX is exact opposite, low residual and high resale.

BTW, a 48 month lease vs a 60 month finance is same at 2.9%.

Leasing would yield $7200 of interest for the term. Finance will yield $6700 of interest for the term.

Lease would be $800/month for 48 months and finance would yield $1130/month

At the same rate, lease will always cost more than finance since you are only paying back depreciation.

Also would love you to disclose your term to find out why your are out $4K. I can only see $500 difference between 48mth lease and 60mth finance.
Last edited by Xtrema on Feb 4th, 2019 4:33 pm, edited 4 times in total.
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Gotoff wrote:
Feb 4th, 2019 3:03 pm
The only benefit to leasing to own is that if theres an accident, you can just repair it and return the car and tax benefits i guess, but you'll be paying more vs financing.
In addition to what you mentioned, there are more factors.

cash-buy vs finance vs lease-return vs lease-cash-buy vs lease-finance
all have pluses and minuses and depends on 4-5 factors.

even saying that "...one pays more in lease vs finance..." is not
universally true: it can be 0% lease and final cash purchase vs. 6% finance.

There is no universal rules here and every situation has to be considered
separately from concrete client prospective.

Cheers!
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Jan 27, 2014
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Lease every time. No one wants to be driving in a 4+ year old car that is an old model.
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tequilla wrote:
Feb 4th, 2019 4:18 pm
In addition to what you mentioned, there are more factors.

cash-buy vs finance vs lease-return vs lease-cash-buy vs lease-finance
all have pluses and minuses and depends on 4-5 factors.

even saying that "...one pays more in lease vs finance..." is not
universally true: it can be 0% lease and final cash purchase vs. 6% finance.

There is no universal rules here and every situation has to be considered
separately from concrete client prospective.

Cheers!
i think even with taking the borrowing cost into account. I think its still always better to finance to own rather than lease if you're planning on keeping the car till it dies. Leasing is a preimum in cost for the convenience of not having to own
ar2020 wrote:
Feb 4th, 2019 4:45 pm
Lease every time. No one wants to be driving in a 4+ year old car that is an old model.
I think dealers love people like you lol
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Gotoff wrote:
Feb 4th, 2019 5:40 pm
i think even with taking the borrowing cost into account. I think its still always better to finance to own rather than lease if you're planning on keeping the car till it dies. Leasing is a preimum in cost for the convenience of not having to own


I think dealers love people like you lol
Don't care what they love as long as I'm happy. All that matters. Ask anyone who financed a brand new car after 4 years if they honestly would rather have the brand new model. Almost everyone would say yes. That's not even to mention those that finance for greater than 4 years. How's it like paying a monthly payment on an old model? Who cares that you own a car that's 7 years old?
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ar2020 wrote:
Feb 4th, 2019 5:51 pm
Don't care what they love as long as I'm happy. All that matters. Ask anyone who financed a brand new car after 4 years if they honestly would rather have the brand new model. Almost everyone would say yes. That's not even to mention those that finance for greater than 4 years. How's it like paying a monthly payment on an old model? Who cares that you own a car that's 7 years old?
all you're paying is the depreciation and then returning to the car to the dealer on a silver platter to make some profit on it.
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... if you lease, your dealer will sweet talk you to get another one about 6 months prior to end of lease. They do have a choice to buy it out from Acura fs and in turn, they can sell it for a margin of 25-35% . Win-win for dealer.
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Oct 24, 2004
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Finance it, add extended warranty, do the regular maintenance, and drive it till it dies. Amen
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I only lease...
Few thousand dollars spread out over 4 years is nothing.... It's not like Im upgrading iphone every year....
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Gotoff wrote:
Feb 4th, 2019 5:58 pm
all you're paying is the depreciation and then returning to the car to the dealer on a silver platter to make some profit on it.
Nothing stops you from making that profit for yourself at lease end if there is profit to be made with a bit of effort. I've yet to actually return any lease to the dealer.
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aleks wrote:
Feb 4th, 2019 8:21 pm
Nothing stops you from making that profit for yourself at lease end if there is profit to be made with a bit of effort. I've yet to actually return any lease to the dealer.
there's no profit for you because you paid for the depreciation too, there's a ton of profit for the dealer because they didnt have to take the depreciation hit.
Not sure why this is a hard concept to understand
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Gotoff wrote:
Feb 4th, 2019 8:30 pm

there's no profit for you because you paid for the depreciation too, there's a ton of profit for the dealer because they didnt have to take the depreciation hit.
Not sure why this is a hard concept to understand
You clearly don't lease cars or only leased domestics.

There are lease with low residual that you can buy out and sell privately for $3-$6k gain.

There are leases with high residual that whoever own that lease will lose money when customer returns it.

There was a time when $cad was on a tear that BMW lost a bunch of $ in Canada because they set the residual so high when everyone just returns them.
Last edited by Xtrema on Feb 4th, 2019 8:42 pm, edited 1 time in total.

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