Acura TLX Forum banner

1 - 10 of 10 Posts

·
Registered
Joined
·
16 Posts
Discussion Starter #1
I drive my TLX 10-12K per year, and usually purchase and keep my cars for five years or so. I've started to think that it might make more sense to trade more often, maybe 36 months on a lease rather than buy and trade at five years. Thoughts?
 

·
Premium Member
Joined
·
4,800 Posts
I always lease my vehicles but it just depends on your particular situation.

A lease is good for someone who likes to switch cars more often and who doesn’t normally put a lot of mileage on their vehicle. The downside is that you’re paying for something that you’ll never own.
 

·
Super Moderator
Joined
·
515 Posts
Depends a lot on your financial preference. Like Andre mentioned, the downside to leasing is your just renting a vehicle you'll never own outright. I personally have never leased a vehicle. I always buy and hold on to it for 5 or more years and then trade in for another new vehicle.
 

·
Registered
Joined
·
25 Posts
I drive my TLX 10-12K per year, and usually purchase and keep my cars for five years or so. I've started to think that it might make more sense to trade more often, maybe 36 months on a lease rather than buy and trade at five years. Thoughts?
Depends what ur situation is. If u like driving a better car or half the monthly cash flow leasing is the way to go. Figure out what u want to spend then compare it it to the total amount you can afford for a 5 yrs term loan. ( Buys a base kiab or lease a TLX) it's lifestyle choice.

Sent from my SAMSUNG-SM-G891A using Tapatalk
 

·
Registered
Joined
·
57 Posts
I went through the same process few days ago when I bought my car today. Decided to financed it. Lease is for short term. You're paying low now but once the lease is up, if you decided to finance, it's usually higher rate, higher payments and longer months compare to putting 5 years loan. It's up to you. What got me thinking is, when my car is paid off in 5 years, at least I have something valuable to trade it for a better car. With lease, I have nothing but another down payments for another car.
 

·
Registered
Joined
·
206 Posts
I'm a former Mercedes-Volvo sales guy. Never lease. There are too many nefarious ways to manipulate a lease. Say you want an option. The right way to price the option is to take its cost, divide it by 36 and add to the monthly payment. I did that once and got chewed out by the general manager for "leaving money on the table." I should have doubled the price internally and "he'd never know." The residual value, i.e. the market value of the car at the end of the lease is a projection and highly suspect.
 

·
Registered
Joined
·
4 Posts
Leasing is the way to go, especially if you trade every 4-5 years. Cars depreciate so much you are better off leasing than financing and losing all the money due to depreciation. With a lease you are postponing your right to own, not denying it. Some brands make no sense to buy at end of lease (The domestics with poor resale for example)

As far as the other comments, good dealers will give the customer a lease worksheet showing the price of the car, accessories etc. Acura and Honda does not allow money factor markup like other brands, so some of these comments are grossly inaccurate. I just leased, and the sale price on the lease was much less than a buy, and the money factor (interest) was less than 2 percent (multiply money factor times 2400 to get interest amount). If I wrote them a check for the buyout at the end I would have had a $12000 discount on the car, far less than if I would have purchased.

Right now the lease incentives on the TLX are so good you can lease a car based on a sale price of $30,000 for example with an MSRP of 42000. The residual is set by the manufacture, not the dealer. You could literally lease and finance the buyout at the end and pay less than if you financed for 5-6 years.

If you plan on keeping the car for 7 years or more buying makes sense, but if you are the typical person that trades out every so often leasing is the way to go. Car loans use simple interest, so if you finance you are paying more in interest than you think.

I don't sell Acura, but am in the car business. Most car salespeople don't know how leases work, let me know if you have any questions I am happy to help

I just re leased another TLX, the buyout on the old one was 3k less than market value on a pre owned of the same car. So for brands with good resale, leasing and then buying out at the end can make sense.


To the comment on adding accessories - most OEM accessories can be "hard add" residualised, so you wouldn't pay near the close amount divided by 36. Dividing by 36 is wrong and the customer would pay more than they need too. The rest of it gets dumped to the buyout, so the customer only pays for the portion of the accessory cost that correlates with lease term. For example, a remote start of $600 would probably only cost the customer 300 on a lease if it was added in correctly.
 

·
Banned
Joined
·
12 Posts
If its a financial decision you make, then buying or leasing means you will be owning a new car which will most likely depreciate about 20% within the first year and around 50 % after 48,000 miles.
 

·
Registered
Joined
·
91 Posts
Acura often has very good lease incentives on the TLX. In my case, it made more financial sense to lease than to buy. Love my 2018 TLX 2.4 Tech.
Exactly they have some of the best lease incentives out there. Acuras are better leasing, but again everyone needs to look at their own situations.
 
1 - 10 of 10 Posts
Top