I want to lease a new Honda CR-V. Should I lease a 2008, or should I be able to get a better deal on the 2007s they still have on the lot? On a quick preliminary visit today, the salesman told me the 2008s and 2007s were the exact same car - no manufacturer changes - and the price would be the same.
I doubt there would be any savings as long as both have the FULL warranty applied to it.
The 2008 would be better if you decide to purchase the car at the end of the lease. The 2007 should be cheaper however, especially this close to the new year.
right now is the time to BUY an 07 since dealers are trying to make room for the 08 models and will likely offer better rebates on the 07
The obvious answer is to never lease anything, buy a new car only if you can pay cash (negotiate the best deal you can), if you cannot pay cash for a new car buy a used car you can actually afford. Leasing rarely makes sense (never for individuals) and will cost you more over the long term. If you are considering a lease to avoid having to make a significant down payment, that probably means you are trying to buy something you can’t afford, don’t do it (been there, done that). Sorry, that’s probably not the advice you were looking for.
My philosophy on car buying, leasing, and how to pay for a car purchase is exactly the same as Craig58’s. While it might not be what you wanted to hear, this is something to contemplate.
Also–I have heard too many horror stories about penalties that lease holders had to pay at the end of the lease because of:
Non-matching tires
Tires of the wrong speed range
Too many scratches
Wear on upholstery
etc. etc.
Also, mileage limits can get you in trouble.
When I was much younger I leased a car I could not have afforded to buy (stupid), and proceeded to significantly exceed the mileage limits on the 3 year lease. At the end of the lease, I had no choice except to take out a used car loan from a credit union to buy the car for the residual value. I ended up making payments on that car for many years (first the lease, then the used car loan). In the end, it was much more expensive than buying the car outright. I should have bought less car for cash (or at least with a much smaller loan). I did like the car (a Saab 900 turbo), and I drove it for quite a while after it was paid off. Since then, every one of my cars has been bought for cash.
You may have good reasons to lease rather than buy the CR-V. Share them with us. I would never lease a car, either, and for the same reasons mentioned.
If you still want to lease, you are stuck with whatever programs the dealer has. If they charge the same price for 2007 and 2008 cars, you’re stuck. You might try another dealer if there is one close by. I’d try any dealer within 25 to 50 miles of home.
I don’t have any ‘good’ reasons to lease, just ‘my’ reasons. I drive a 2002 Civic and it’s practical but boring. I bought it for cash and agree with everyone who advises ideally not to lease or finance a car. I really like the new look and features of the 2007-8 CRV and I’m a loyal Honda fan. I’d like to be able to have a newer car every 3 years, to not worry about big service items on an older car, and figured I’d splurge some on leasing in order to make that happen. I haven’t heard any horror stories, only good experiences, from people I know who lease , but I’m sure there are plenty to go around. Thanks for all of the input - really!
“The salesman told me . . .” First rule of car buying or leasing: NEVER believe what the salesperson tells you.
I say this as a former car salesperson.
They will tell you ANYTHING if it gets you to sign the deal. ANYTHING. You cannot believe a word they say. It might be true, and it might be totally fabricated. You won’t know the difference until it’s too late.
Most car salespeople know NOTHING about cars. The could just as easily be selling refrigerators or time shares in Vail. They don’t care. They just want a SALE, or in your case, a lease.
It makes no difference to me whether you buy or lease. Just BE CAREFUL! They will take you, and your money, in a heartbeat. Do as much research as you can, and DO NOT take the salesperson’s word for ANYTHING.
mcp, that’s what my high school English teacher called a "hasty generalization. Not all car salesmen (or women) are dishonest or liars. Unfortunately those who are have given those who aren’t a bad reputation.
That said, I agree with those who have said not to lease a car. The only reason to lease one is if the lessee can charge all of the lease expense off on their taxes. It may or may not make sense in every one of those cases either. Check with your accountant.
I want to lease a …
No you don’t. 
Leasing is almost always a very bad idea. It locks you into that deal, you can end up owning them at the end with nothing to show for it, you usually have less bargaining power and end up paying more than any other option. Leasing is just another tool the dealers uses to make the deal more complex so you are at a greater disadvantage and are likely not going to figure it out until you need a new car.
I agree that leasing is economically not the best idea. However, I do believe that if you desire a new car every three years that it may be prudent. Allow me to explain. If you buy a car with no money down and after taxes and tags, etc, it is a $25000.00 finance, then your payment will be roughly $500.00/ mth. In my experience you could usually get lease for about 20% less (depends on car and lease deals). That would make your payment $400.00/ month. So each year you would have $1,200.00 less in payments. In three years you will have paid less by $3,600.00. If you purchased, you would still owe around $10,000.00 on that car. So you would have to be able to trade it in for $13,600 in order to break even. Most cars will not hold over 50% of their value as a trade-in three years down the road. Therefore, if you want a new car every three years, it is as feasible to lease as it is to buy. Is this a good long term economic decision- no. However, how many people don’t have hobbies/ desires that effect their long term economic picture, but still do them. I would be more concerned about my happiness than about what others think of my decision. I drive a seven yo car with 105,000 miles on it and have no plans of buying another anytime soon. It doesn’t bother me to have an old car or deal with the problems that they present. If I wanted a new car and a new car would make me happy, I would get it. No sense in not being pleased in life.
ref
I forgot. As for an 08 or 07, look at their numbers. The 07 might have incentives, but should have a lower residual (which affects lease amount). This may or may not bring the payments close. In addition, don’t forget to negotiate what the price is. Your lease is essentially the purchase price- the residual value plus financing and taxes. If you negotiate down the price, then the monthly payment goes down. Do not negotiate by simple payment unless you are totally overwhelmed. Good luck.
ref
refaller: Thank you! You are so right. Long-term leasing is bad planning financially. But for an intermediate (3-yrs) length of time, it doesn’t differ financially too much from purchasing a car. By leasing, my monthly payments will be lower and that extra money is earning better interest in investments. Plus Honda’s do retain >50% residual value. So sure I will pay more for the privilege(?) of having a new car every 3 years. But it is not my goal to hang onto a car and drive it to death. Or worry about repairs. (I buy new running shoes every year too, whether I really need them or not!)
I understand that you think this is a good idea; at one point, I did too. Frankly, you are simply trying to buy more car than you can afford if you are either leasing or borrowing money to buy it. You are setting yourself up to be making car payments indefinitely, and continuously paying much more than necessary for vehicles. You are also exposing yourself to a lot of unnecessary risk.
IMHO, borrowing money for anything that does not appreciate (i.e., real estate or some business investments) is just about the dumbest thing you can do with your pants on (and I’ve done some pretty dumb stuff, with and without my pants). Leasing is much dumber than buying for almost everyone. The problem (risk) with a car loan is the potential of being trapped in an upside-down loan and having to take a loss, a lease is significantly more difficult to escape. Consider the possibility that your life (and auto needs) will change within the next three years. People lose jobs, get married, have kids, become disabled, buy houses, move to other countries, get divorced, have to care for ill relatives, get sued, have other financial setbacks, etc. There is an entire cottage industry to help people get out of leases with the minimum damage to their finances, I’m sure those folks all thought it was a good idea.
If I really wanted a new honda (or whatever), I would start putting the equivalent of a car payment in the bank every month until I could write a check for the full amount. Once I had my new car, I would continue to make deposits to my “car fund” so I could replace it in three years. Of course, you may not think having a new car every three years is a priority if you actually have to spend real money to buy it.
I don’t know anyone who has accumulated wealth by borrowing money to buy toys they couldn’t afford. Just something to consider.
Ah, the voice of reason. Thank you, Craig58. You make a good argument. I think it has finally sunk in.
When leasing you always want to do the next year up because resiual’s are the highest… lease end values. When theyre high the payments are lower. What I would have them do is to run a side by side at the same selling price and see what that comes out to, also when the 09’s are out you’ll have a one yr old vehicle or if you did a 07 you’ll have a 2 year old car. Good luck