Type R lease numbers

[True Story]

You sign a rental contract. Not a lease. You don't have a credit check for a rental.

Yes. You gain equity in a car the more you pay off. All depends how well it holds its value, mileage and condition. Although it is diminishing.

Most people and I mean most gain equity in their homes. That why one of the best investments is land. Since you can't make anymore of it.

What?

Equity in a car loan does NOT mean the car appreciated in value.

Youre horribly misinformed or ignorant to financing, please stop posting about it.

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[Gerothius777]

What?

Equity in a car loan does NOT mean the car appreciated in value.

Youre horribly misinformed or ignorant to financing, please stop posting about it.

I never said it appreciated in value. I said you gain equatity as you pay the car more off. So if I purchased a car for 30k and put down 10k. Drive the car off the lot and lose 4K in value. I still have 6k in equity. As I pay the loan down let's say a 3 years down the line and now own the car and it's worth 16k per market value.( JUST AN EXAMPLE).

That is now the value.

Im far from misinformed or ignorant you just can't read and comprehend what I wrote. No where did I say it gains value. I even stated it's a diminishing value.

 

[True Story]

I never said it appreciated in value. I said you gain equatity as you pay the car more off. So if I purchased a car for 30k and put down 10k. Drive the car off the lot and lose 4K in value. I still have 6k in equity. As I pay the loan down let's say a 3 years down the line and now own the car and it's worth 16k.

That is now the value.

Im far from misinformed or ignorant you just can't read and comprehend what I wrote. No where did I say it gains value. I even stated it's a diminishing value.

I never said it appreciated in value. I said you gain equatity as you pay the car more off. So if I purchased a car for 30k and put down 10k. Drive the car off the lot and lose 4K in value. I still have 6k in equity. As I pay the loan down let's say a 3 years down the line and now own the car and it's worth 16k.

That is now the value.

Im far from misinformed or ignorant you just can't read and comprehend what I wrote. No where did I say it gains value. I even stated it's a diminishing value.

You're generalizing leasing with poor credit decision making, which is absurd.

You're stating that paying in cash is better than financing, which is hilarious considering subvented rates through banks are lending at close to 1% or less.

You're comparing purchasing a home (?) to buying/leasing a car. Stop confusing equity with value, what you owe (or what you don't owe) on the car does not determine the value.

 

[UberCivic]

If anything paying cash for a car or even putting a lot of money down can be argued as a terrible financial decision. Unless there is a recession and/or you have horrible credit the interest you pay on a loan is less than the interest that you would earn keeping that cash invested and paying the payments. That said, very few people have the willpower to invest that cash and not spend it. In practice those types are better off putting it into the purchase rather than letting it get pissed away because you have access to it.

 

[slowride]

Still way, way off. There are so many factors

You're generalizing leasing with poor credit decision making, which is absurd.

You're stating that paying in cash is better than financing, which is hilarious considering subvented rates through banks are lending at close to 1% or less.

You're comparing purchasing a home (?) to buying/leasing a car. Stop confusing equity with value, what you owe (or what you don't owe) on the car does not determine the value.

Not only that, but he is leaving out, oh 99% of what is needed to prove his point...

"Purchased a car for $30k" - what about taxes, licensing, fees, etc? Those do not apply to the value of the car and are immediately sunk. What is the actual value of the CAR in this example?

10k put down, for sake of flat numbers here, leaves him at $20k financed, with a 3 year pay off in the example. What interest rate?

Without knowing the exact car, exact deal, and every numerical detail, this guy is wasting everyone's time.

 

[True Story]

Any financial expert, or person with wealth, will tell you to use the bank's money as opposed to depleting your funds outright.

The only thing that is stated correctly is that the CTR isnt a good vehicle to lease because the residual is excellent and the money factor ("interest") is terrible.

HOWEVER, the CTR is selling (and also reselling) so strongly that you could get into a lease and actually gain equity over your residual value set by the bank because of the demand on the car, despite having such a high money factor (~4.6% APR).

 

[beldredge]

I agree that leasing is unfairly associated with poor financial decision making - though unfortunately it often does reflect an individual "buying" more car than they can reasonably afford. But that's more reflective of the buyer than the lease structure itself.

At the end of the day, the most significant cost of owning a car, particularly a new one, is the depreciation. And that cost is the same whether you pay cash, finance the car or lease. Costs of ownership such as fuel, repairs, maintenance, etc. are obviously the same no matter what. Interest cost on a lease or finance obviously are incremental over a cash purchase, but those rates have been pretty low in recent years (though they are increasing).

 

[Gerothius777]

You're generalizing leasing with poor credit decision making, which is absurd.

You're stating that paying in cash is better than financing, which is hilarious considering subvented rates through banks are lending at close to 1% or less.

You're comparing purchasing a home (?) to buying/leasing a car. Stop confusing equity with value, what you owe (or what you don't owe) on the car does not determine the value.

No, what I said was if you dont have the cash to pay for it, you should not buy it. I financed both of my cars for very low APR's but if something bad happens I can payoff both notes. You should have the money in the bank, investments, 403b, 401k or you really cant afford it. You're paying for it monthly but if you lose your job and have no income well kiss your car goodbye.

You really like to take things out of context. Leasing a Type R is not a good deal. Leasing a Civic LX for $189 a month is because of supply and demand

No where did I say what I owe on the car is the value either. The market will portray the value.

 

[Gerothius777]

Any financial expert, or person with wealth, will tell you to use the bank's money as opposed to depleting your funds outright.

The only thing that is stated correctly is that the CTR isnt a good vehicle to lease because the residual is excellent and the money factor ("interest") is terrible.

HOWEVER, the CTR is selling (and also reselling) so strongly that you could get into a lease and actually gain equity over your residual value set by the bank because of the demand on the car, despite having such a high money factor (~4.6% APR).

For now but the value will change as time passes. There will be new versions of the R that will hurt the value of the current one.

 

[Gerothius777]

Still way, way off. There are so many factors


Not only that, but he is leaving out, oh 99% of what is needed to prove his point...

"Purchased a car for $30k" - what about taxes, licensing, fees, etc? Those do not apply to the value of the car and are immediately sunk. What is the actual value of the CAR in this example?

10k put down, for sake of flat numbers here, leaves him at $20k financed, with a 3 year pay off in the example. What interest rate?

Without knowing the exact car, exact deal, and every numerical detail, this guy is wasting everyone's time.

It was a general "example" not an actual purchase. No where in this example do you need those other details as that is not the purpose.

 

[True Story]

For now but the value will change as time passes. There will be new versions of the R that will hurt the value of the current one.

Can you back up this claim with a case study, example or source material?

Honda's have always retained strong resale value, common sense (and current ADM sales) show that the car is highly in demand.

New CTR models will come out, sure, but itll never be a mass produced vehicle and will always appeal to a large audience, even older people like yourself.

 

[Gerothius777]

Can you back up this claim with a case study, example or source material?

Honda's have always retained strong resale value, common sense (and current ADM sales) show that the car is highly in demand.

New CTR models will come out, sure, but itll never be a mass produced vehicle and will always appeal to a large audience, even older people like yourself.

In the late 90's Type R's always held their value but nobody was paying the mark ups that are happening today. My EM1 held its value very well but as time passes they all drop down but no where near other cars depreciation.

I don't think it will drop a lot but buying a Type R appears to be a much wiser descision.

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