Lease 2012 or Buy 2009-2010? Questions I have

[FFactory0x]

Ok so I have a 2005 Acura TL w/ Navi with about $5500 left to pay on it from my purchase. Payments are about $450/mo.

I want to trade it in and get either a 2009/10 TL Tech for Purchase or 2012 w/ Tech for Lease.

I am a bit confused on which way to go. I assume I can get around $10K for my car.

1. I still dont understand the Money Factor thing. Can someone explain.

2. Is there a way they could low ball me on the trade in value?

3. Is there anyway to get a 2012 w/ tech lease for around $400 to $450/mo. How much should I look to put down and is this a way for them to some how make out better on the deal? Also what would be the best way to work with the dealer to get it down this low.

4. How much should one look to pay for a 2009 or 2010 w/ tech with 10K-30Miles


Could you maybe help me understand any advantages to paying of the lien and getting a clean title?

I have the $ to pay it off today online but would their be any advantage?

So lets say I trade in for $10K and owe $5500. That gives me a difference of $4,500. Lets say I put $3500 towards the new car, will they cut me a check for $1K to pocket.

Any suggestions would help.

 

[evident]

the 2012 has the much needed beak refresh and looks much better IMO. i still think your generation TL looks the best however.

 

[WackyDan]

Why would you need the $1k in your pocket?

 

[FFactory0x]

the 2012 has the much needed beak refresh and looks much better IMO. i still think your generation TL looks the best however.

The 2005 is slick especially with the huge touch screen navi

 

[mafia]

05 TL looks best. I'd stick to it. Pay off loan and save money.

 

[dirtboy]

I don't know if the lease rates are different for the TL base vs the TL w/Tech, but all I could find was the 36 month rates for the TL base. I'll use the TL base's numbers with the Tech's prices.

2012 ACURA TL BASE
36 month | 12k miles | residual 64% | .00186 base money factor

Residual is the residual value at the end of the 36 months
Money factor is the interest rate (MF X 2400 = int rate)

2012 TL w/Tech MSRP $40,220
2112 TL w/Tech Invoice $37,437 (per Edmunds) which I'm using as your purchase price

Base monthly payment is $442.41, which doesn't include sales tax for your area. This assumes you can negotiate for invoice, pay all drive off costs and aren't negative on your trade in.

 

[Jumpem]

I would always lease if you drive 15k or less. You're in a new car regularly with lower payments than buying.

 

[ichy]

Ugh, pay off the current car and get off of the car payment treadmill.

 

[MotF Bane]

Buy it.

 

[Doppel]

Pretty good link on leasing finances, not too complex, and answers for you what money factor is.

http://www.leaseguide.com/lease08.htm

Generally you need to know the MF vs what finance rates you can get. Lately some places like toyota (well, maybe not since earthquake) and nissan have had money factors very low, equivalent to 1-2% interest rate, which is unusual. But, if it's up around 7-8% or more and you can finance for 3% things do look quite different.

 

[StrangeRanger]

Loan vs lease is always a personal preference thing. I sold cars for ages and would say it was a about a 60/40 split lease/loan for what I sold.
Pros & cons for both depend on the person. If you like a new car every X years, don't drive a lot and don't mind always having a payment then leasing could work for you.
But those factors are key. I can't tell you how many customers would come into the stealership screaming about the bill they got when they turned in their lease because they were over their mileage or the car was a shit hole and needed cleaning/repairs.
The big thing to me with a lease is you have no equity at the end.
On their site Acura is advertising 0.9% financing on all '12 models. Not bad, but you're still going to have to put down a large chunk O change to get your payment to ~ $400/mo if you purchase.
Do not put money down on a lease. Stoooopid thing to do.
Can they low ball you on the trade-in value? Of course, that's their job. Sell it privately.
One thing people can't fathom, Edmunds, KBB, NADA etc are guesses at car values. A car is only worth what the market supports. Just because NADA says your car is worth X doesn't mean it really is or that is what you'll get. They're starting points.
Don't forget too, in a lot of states when you trade in a vehicle and purchase another (not lease) you get a tax credit on the sales tax.
Do some research on TL's in your area and see what they're going for at stealerships and private sales.
Think about leasing and does it fit you're looking for. Do you want to own something at the end or piss your money away?

 

[MiataPaul]

I would always lease if you drive 15k or less. You're in a new car regularly with lower payments than buying.

But then you have payments for ever. I will never understand why people are willing to have payments for ever. Makes no sense at all to me.

Pay off you current car and drive it till it drops. Just keep making the payments to a savings account, the only way you will get ahead. Heck a 2005 Acura should be reliable to at least 200,000 so just enjoy it. Once you start having to fix a lot of stuff, then sell it.

 

[Arkaign]

But then you have payments for ever. I will never understand why people are willing to have payments for ever. Makes no sense at all to me.

Pay off you current car and drive it till it drops. Just keep making the payments to a savings account, the only way you will get ahead. Heck a 2005 Acura should be reliable to at least 200,000 so just enjoy it. Once you start having to fix a lot of stuff, then sell it.

Hah, speaking of this, I know two older guys who both drive early 90s LS400s with over 500k miles on them. In Dallas traffic. Incredible. Both could easily afford to buy a new one every year in cash, but they just drive those things today. One owns an AC service company that's got locations all over the southwest, the other runs a security guard company with many thousands of employees that are rented out.

Of course, not all cars are built that well, but most good choices should make it to 200k without serious issues as long as common sense maintenance applies.

 

[Jumpem]

But then you have payments for ever. I will never understand why people are willing to have payments for ever. Makes no sense at all to me.

Pay off you current car and drive it till it drops. Just keep making the payments to a savings account, the only way you will get ahead. Heck a 2005 Acura should be reliable to at least 200,000 so just enjoy it. Once you start having to fix a lot of stuff, then sell it.

I plan to have a car payment until I die. I have no issue with that. I see it as just another monthly utility expense like an electric bill.

I don't want to drive a vehicle outside of warranty. I don't want to keep a vehicle long enough for it to rust from all of the road salt. I want the newest safety features in cars. Due to all of these, I get a new one every two and a half to three years.

 

[T2urtle]

I plan to have a car payment until I die. I have no issue with that. I see it as just another monthly utility expense like an electric bill.

I don't want to drive a vehicle outside of warranty. I don't want to keep a vehicle long enough for it to rust from all of the road salt. I want the newest safety features in cars. Due to all of these, I get a new one every two and a half to three years.

If that's how u view things, by all means you should start leasing. With leasing u don't have to worry about selling the car at the end of the term. This is all pending u stay within lease terms, mainly under 10k/ year or pay for the extra miles.

Selling a car private party is easy when it's a cheap car like sub $5000 because its all cash. With your car no so much. I would take it to carmax first and then see what the dealership can offer u.



Sent from my Nexus One

 

[Jumpem]

If that's how u view things, by all means you should start leasing. With leasing u don't have to worry about selling the car at the end of the term. This is all pending u stay within lease terms, mainly under 10k/ year or pay for the extra miles.

Selling a car private party is easy when it's a cheap car like sub $5000 because its all cash. With your car no so much. I would take it to carmax first and then see what the dealership can offer u.

When I move I will lease. Right now I drive 30k miles a year, and get a new one just before the 100k mile extended warranty is up.

 

[the DRIZZLE]

I plan to have a car payment until I die. I have no issue with that. I see it as just another monthly utility expense like an electric bill.

I don't want to drive a vehicle outside of warranty. I don't want to keep a vehicle long enough for it to rust from all of the road salt. I want the newest safety features in cars. Due to all of these, I get a new one every two and a half to three years.

If you want a new car every 3 years because you like nice things, that's your choice. Leasing because you want a warranty is kind of silly. Most car companies offer at least 5 years/60k on the powertrain. If you choose reasonably reliable cars the odds of the something catastrophic happening before 100k that's not covered by the warranty are pretty small.

 

[Jumpem]

If you want a new car every 3 years because you like nice things, that's your choice. Leasing because you want a warranty is kind of silly. Most car companies offer at least 5 years/60k on the powertrain. If you choose reasonably reliable cars the odds of the something catastrophic happening before 100k that's not covered by the warranty are pretty small.

I go through that 100k mile extended warranty in three years.