2005 Pilot lease...

[Tom B]

Any opinions on the latest offer... $279 per month for 36 months on a closed end lease? At lease end the buying price is just a tad under $19,000. I'm thinking about it. Thanks, Tom

[N_Jay]

Any opinions on the latest offer... $279 per month for 36 months on a closed end lease? At lease end the buying price is just a tad under $19,000. I'm thinking about it. Thanks, Tom

In general, leases are a bad deal, unless you have a business and want to have an operating expense rather thn a a capotal expense.

Specifically, no one can tell you if the lease is just bad, or terible without knowing all the details, such as,
the REAL price of the car,
the cost of maony used to calculate teh lease payment,
all other fees and charges,
the total initial payments and what they money is being applied to,
the final payment,
ALL the conditions of the lease,

AND what you could have bought the car for on a conventional loan!

[Tom B]

I went with the lease on the 2005 Pilot EX. The lease pymt. is $269.85 for the next 35 months. Initial outlay was just over $2800. I can buy the Pilot at lease end for $18,994. I'm retiring at the end of 2007 and will have the option of getting paid for accrued annual leave...which will come close enough to buy the vehicle outright at lease end (all things working out as I hope they will). I figure my total outlay then to be just around $29,000 or 30K when all is done. But without having to finance the vehicle for over 5-6 years and paying the interest on an auto loan. I did discover that insuring a leased vehicle costs a little more than buying one though. Tom

[4hondaowner]

Speaking from a past experience when we leased a 2003 Polot EX, most people lease for they can't afford a new car. We had a 1994 Chrysler minivan we traded in. Dealer gave me $2,800 like Tom B mentioned in his writing. I could afford the payment but what rubbed me the wrong way was after 36 months, I had to give back my weekly washed, non smoked in, taken care of vehicle to someone else. Leasing is an affordability thought. I believe the new car rate if you were to buy is somewhere close to $18.50 per thousand financed. That's why so many people lease new vehicles.

[Tom B]

Speaking from a past experience when we leased a 2003 Polot EX, most people lease for they can't afford a new car. We had a 1994 Chrysler minivan we traded in. Dealer gave me $2,800 like Tom B mentioned in his writing. I could afford the payment but what rubbed me the wrong way was after 36 months, I had to give back my weekly washed, non smoked in, taken care of vehicle to someone else. Leasing is an affordability thought. I believe the new car rate if you were to buy is somewhere close to $18.50 per thousand financed. That's why so many people lease new vehicles.

Did your lease on the 2003 Pilot give you the option to buy the vehicle at lease end? My contract states that I can purchase the Pilot at lease end for $18,993.70. Given the fact that Honda has such a very high resale value, I'm thinking this is a good plan. I leased my Pilot through Honda's "Leadership Leasing" program. Back in 1994, I leased a Ford T-Bird for 2 years and then bought it at lease end for a good NADA price, then totalled it not long after and got over $2K from the insurance company. Much better than trading a vehicle and paying "negative equity" methinks.... which I've done in the past. :shock:

[4hondaowner]

Yes Tom our lease did have a buy-back provision at the end of it. But other factors played my hand in getting rid of it after one year. Your thought processes are correct regarding resale value and to me it would be a wise investment on your part if you have crunched all the numbers and the Pilot fits into your future plans.

[N_Jay]

I went with the lease on the 2005 Pilot EX. The lease pymt. is $269.85 for the next 35 months. Initial outlay was just over $2800. I can buy the Pilot at lease end for $18,994. I'm retiring at the end of 2007 and will have the option of getting paid for accrued annual leave...which will come close enough to buy the vehicle outright at lease end (all things working out as I hope they will). I figure my total outlay then to be just around $29,000 or 30K when all is done. But without having to finance the vehicle for over 5-6 years and paying the interest on an auto loan. I did discover that insuring a leased vehicle costs a little more than buying one though. Tom

$31238.75

[Tom B]

I went with the lease on the 2005 Pilot EX. The lease pymt. is $269.85 for the next 35 months. Initial outlay was just over $2800. I can buy the Pilot at lease end for $18,994. I'm retiring at the end of 2007 and will have the option of getting paid for accrued annual leave...which will come close enough to buy the vehicle outright at lease end (all things working out as I hope they will). I figure my total outlay then to be just around $29,000 or 30K when all is done. But without having to finance the vehicle for over 5-6 years and paying the interest on an auto loan. I did discover that insuring a leased vehicle costs a little more than buying one though. Tom

$31238.75

Thanks for doing the math for me.... :lol:

[N_Jay]

I went with the lease on the 2005 Pilot EX. The lease pymt. is $269.85 for the next 35 months. Initial outlay was just over $2800. I can buy the Pilot at lease end for $18,994. I'm retiring at the end of 2007 and will have the option of getting paid for accrued annual leave...which will come close enough to buy the vehicle outright at lease end (all things working out as I hope they will). I figure my total outlay then to be just around $29,000 or 30K when all is done. But without having to finance the vehicle for over 5-6 years and paying the interest on an auto loan. I did discover that insuring a leased vehicle costs a little more than buying one though. Tom

$31238.75

Thanks for doing the math for me.... :lol:

Yes, but we still don't know the real selling price of teh Pilot (Typical dealer trick) to figure out if it is a good deal or not!

[Tom B]

Stated sale price was $27,250. I asked for this figure before I made my decision to lease, then went home and checked a few payment calculators and the end difference was nil. Payments of $269.85 versus $510 +/- made the difference in my decision. I can buy the Pilot outright at lease end when I retire with a lump sum check for accrued annual leave. Tom