Purchase vs Lease?
 

Is purchasing an alot smarter option then leasing? I am more comfortable with leasing, as it fits into my budget, and I do not know if I plan on keeping the same car for more then 4 years. Is there any tax incentives on leasing? I plan getting a HCH II within a month. Thanks!

Re: Purchase vs Lease?
 

I have never understood the concept of leasing, except for business reasons. I leased my first new car due to financial reasons (I could get the payment lower). By the end of the lease, I was over in miles, I had a cracked windshield, and minor body damange. I would have taken a HUGE hit had I not bought the lease out, so I did. In retrospect, I would probably would have spent less doing a 84 month loan (the period of 3 years lease + 4 years of payments after).

I REALLY don't understand the concept of leasing a hybrid since you need to own them longer than 3 years in order to make the differential pay for itself....

Re: Purchase vs Lease?
 

Unless you can write off the cost of the lease through personal business use, leasing always costs more.

If you are looking at leasing because of the lower monthly payments, then you are looking at the wrong car.

Not trying to be harsh, just trying to help. Go test drive a Honda Fit. The note on buying a Fit is prob similar to leasing an HCH.

Good luck, nf

Re: Purchase vs Lease?
 

If you plan on getting it in a month, you probably want to order the car yesterday.

I ordered mine over a month ago, in mid May and I'm supposed to get it early next week.

I went with a purchase, b/c I keep cars a long time and I drive a lot of miles each year.

Leasing should be interesting, since the resale value on the HCH is so high and rising. I'm not an accountant, but if the numbers work for you, it might be a good time to lease.

Re: Purchase vs Lease?
 

Generally speaking, I would say leasing is a bad idea, since when the lease is up you have paid several years worth of payments, and unless you then buy the car from the dealer, you have nothing. Even if you don't plan to keep a new car for many years, it still makes more sense to buy than to lease, because your purchased car will be yours, and have resale value--in fact a Honda Hybrid will have a high resale value. My feeling is something is better than nothing.

Re: Purchase vs Lease?
 

"I am more comfortable with leasing, as it fits into my budget."

No it doesn't. Some dealer has convinced you that it does, simply because a lease offers a lower monthly payment than a purchase. But that's false logic.

When you lease, you're renting a car. 100% of your monthly payment goes down the rental drain. You never gain equity, and at the end of the lease the car is worth $0 -- you have to give it back.

When you purchase, you're buying a car. Most of your monthly payment goes toward equity in the car. And even though the car depreciates, it's still worth SOMETHING at the end of the purchase period. That's either money in YOUR pocket (not the dealer's), or continued use of the car without having to pay any more.

Whatever you "save" in monthly payments on a lease vs. a purchase, you will lose much more by having to start over from scratch when the lease is done.

Plus, leases restrict the miles you can drive. Purchases don't. And leases make YOU pay the dealer for any minor damage to the car. With a purchase, any damage is your decision whether to repair or leave alone.

Finally, with Honda offering 2% or 3% financing, a purchase is the proverbial no-brainer.

A lease is for suckers. Don't be a sucker.
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