honda civic ex lease buy logic help?
hi , on kbb a 3 yr old ex with 36k miles trade in value is $12k. (new invoice is $20k). So basically about $7k to $8k depreciation in 3 years. Honda has a one lease program. (link is http://www.hondafinancialservices.com/leasing/one-... If I get a 3 yr, 36k miles one lease on a 2013 ex for any amount under $7k it is good deal right ? (rule of thumb without all the money factor, residual mumbo jumbo). Thanks
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Your logic is almost correct except that you've left out finance charges (money factor). Even though you make a single payment for all your lease payments, there are still finance charges included. It's not like paying off a loan -- you're still "borrowing" the lease company's car for the duration of the lease.
You're right that the depreciation is about $7000 but finance charges add about $2400, for a total of about $9400, not including sales tax. If you like, you can check out the numbers yourself with the lease calculator at the link below.