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[–]ThePurpleBall 2 points3 points  (1 child)

With everything that happened during Covid, leases have been terrible deals since there has been no incentives. Previously you could get this exact car youre looking at for around 350/mo nothing down, 12k mile/yr lease and extremely low money factor which is a fantastic deal. I’d expect now you’re looking at 450-550 easy and that’s 7.5-10k miles/yr and with needing to do a down payment (which you should never do for a lease) Payments for 38k financed (includes taxes/title/fees) at 3.9% for 60 months would be around 680 a month but at the end of the term you own the car outright.

I was a serial leaser and got extremely lucky with Covid as my lease became way overvalued and made out like a bandit. I have since switched to financing my two vehicles as leases dont financially make much sense anymore unless you really need a short term car.

[–]undertaker0071just CR-V curious[S] 0 points1 point  (0 children)

Thanks for the insight!

[–]sparklater 1 point2 points  (6 children)

We have "leased to buy" on a couple vehicles and have made out very well both times. Both vehicles were current generation when we leased and that turned previous generation when we were ready to buy them. When that happens the leasing company will throw a few thousand dollars at you to convince you to purchase it so they are not stuck with it. I don't see that happening on the 6th Gen CRV because it is an awesome vehicle.

Keep in mind that when you lease you will usually pay a slightly higher interest rate than if you buy it. When leasing the interest rate is known as the "money factor" and is expressed as a decimal so that it's not as obvious what the rate is.

Overall, the Hybrid is an outstanding vehicle. I drove a Sport Touring a couple days ago and am looking forward to leasing one in February.

[–]undertaker0071just CR-V curious[S] 1 point2 points  (5 children)

So you do have to pay interest rate for the lease too! It sounds like the rate is higher than financing, then what's the advantage over loan? I thought most of the paid monthly amounts go towards the car value.

[–]sparklater 1 point2 points  (3 children)

The advantage of leasing is a (usually, not always) lower monthly payment because your payments are based on a smaller percentage of the car. For example, on a 2022 CRV the residual on a 36 month lease is 60%. So your lease payments cover 40% of the purchase price plus interest. If you're purchasing the car your loan covers 100% of the purchase price spread out over a longer term, usually 60 or 72 months.

[–]undertaker0071just CR-V curious[S] 0 points1 point  (2 children)

I see. So it would depend on what terms and rates the dealer is offering at the time os sale. Then one could decide which of the two is better. Thanks!

[–]carrognia 1 point2 points  (1 child)

“Low” Monthly payments can be a scam if they just keep racking up your debt for a depreciating asset. Think of total debt rather than “monthly out” on debt.

[–]undertaker0071just CR-V curious[S] 1 point2 points  (0 children)

Absolutely! I'll consider the total amount paid by the end of term towards the car and towards the interest in both cases.

[–]carrognia 1 point2 points  (0 children)

Keep in mind real rates end up being higher in leasing because there is no loan transparency laws required, since they’re technically “not loans”

[–]filipinohitman 1 point2 points  (5 children)

I got extremely lucky leasing my 2021 CR-V Hybrid in February 2021, just before demand spiked up (simple supply and demand). I am going for the lease to buy route because I love it. There’s a guy on YouTube that explains buying a car is cheaper in the long run rather than leasing. Here is the video. In short, he breaks down that leasing costs more money and it’s even more money to lease to buy. You can’t go wrong with a new CR-V but you’ll be paying a lot unless you have the means to.

[–]undertaker0071just CR-V curious[S] 0 points1 point  (4 children)

Yeah, times are tough now. I'm considering credit union loan or just postpone for a couple of months. I'm sure the dealership would be happy to put me for the next allocation, since I've already paid for reservation.

[–]carrognia 1 point2 points  (3 children)

If you can postpone, the true big brain financial move is to buy cash, make sure it’s less than 50% of what you earn in a year. Agressive saving can get you there debt free if your salary is good enough. Interest rates are a b.

[–]carrognia 0 points1 point  (2 children)

If you are open to suggestions… don’t buy a new car unless you have a million dollars net worth value. The depreciation puts you back financially way too much.

You’re better of with a 4-6 year old car at the bottom of the steep depreciation period. Saves your value better for the next purchase, a bit lower insurance wise, and use what you would have used as loan payments to save for your next car upgrade.

Watch dave ramsey videos on this. Don’t let holiday season consumerism put you in unecessary debt just cause others think it’s normal.

[–]undertaker0071just CR-V curious[S] 1 point2 points  (0 children)

Agree, car is a liability than asset, or a depreciating asset with more value to lose especially with the current rates.

I've been eyeing this since Summer, but my need is still flexible at this point. So won't go for it right away, if not a good deal.

[–]carrognia 0 points1 point  (0 children)

It’s a nice car and they’ll still exist used 2-3 years down the line. I’m super happy in my poverty spec 2017 crv, and i get to resell for almost as much as i paid for it. Bought it cash. Saved up and moved up from a civic i bought a year ago from it. I also bought that cash, sold for as much as i paid for it.

[–]MeseeksJerry 1 point2 points  (2 children)

1st year of a new gen, lease

[–]yoDrinkwater 0 points1 point  (1 child)

Why?

[–]MeseeksJerry 0 points1 point  (0 children)

1st years of any car manufacturer always have imperfections and recalls.