Lease almost up, what to do.....

[graemeg]

I am the orig owner of a 2005 NSX with 15k miles.

I am wondering if I should:

1) Buy the car at lease end, drive it on weekends and hope it will go up in value in 10-15 years.

2) Extend the lease (does anyone know if this an option as I am financed through Honda. If I do extend does the payment remain the same?

3) Turn it in, which I hate to do as this car ROCKS!!!!!!!


Any thoughts on if you think this las year of production 2005 car will be worth a ton one day?


Thanks:smile:

 

[Steven Allen]

I am no expert, but I do not think that the car will be worth a ton in the near future. Perhapss 30 years out.

 

[Heeltoe914]

If you enjoy it keep it. You are going to have to get another car anyway so you should drive what you like its your money. But maybe try and get a payment based on buying it instead of leasing it longer.

 

[Aero]

What is your purchase price when the lease is up?

 

[DocL]

You can extend the lease with no additional fees and pay the same you are paying now. It will also reduce your buyout price.

 

[docjohn]

Ahh the mighty search http://www.nsxprime.com/forums/showthread.php?t=82946&highlight=buy+after+lease

 

[DrVolkl]

I WISH I leased an '05 when I had the chance.

Oh well...I'd hold onto it if I were you. You know where it's been.

 

[Maximus_NSX]

I would love to know the residual on the cars that had the special $799 lease offer. Does anyone know?

 

[RPM217]

I am the orig owner of a 2005 NSX with 15k miles.

I am wondering if I should:

1) Buy the car at lease end, drive it on weekends and hope it will go up in value in 10-15 years.

2) Extend the lease (does anyone know if this an option as I am financed through Honda. If I do extend does the payment remain the same?

3) Turn it in, which I hate to do as this car ROCKS!!!!!!!


Any thoughts on if you think this las year of production 2005 car will be worth a ton one day?


Thanks:smile:

Been there, done that, first I did #2, than after 6 months extension, did #1. Like Doc John says, do a search. As for why I did what I did, I was waiting for the iminent launch of the new NSX, when I realized that wasn't happening, I decided that for the $$$ there was nothing out there that I'd rather be driving, and since I knew how well it had been cared for, I bought it off lease. Now a year after my buyout, I can tell you that I'm glad I did it. If the car still gives you a thrill to look at and to drive, do it, if it doesn't, than dump it!!!

 

[bjxnsx]

Recommendation: Extend the lease. If you own a business (ie. LLC or equiv.), use it as a corporate car & deduct the lease. You can extend for additional 2 years at same rate (I think...). My lease was up and extended for the same rate. I am planning to buy it after my extended lease is over but milk the system via lease & then buy it later. I write the car lease off on my corporate tax return on an LLC. I have a 2003 NSX-T & my extended lease is up next June. Call Honda Finance to check extension rates & terms. It should be the same but I would negotiate the price.

I was in the same predicament...Extend the lease is the best way for taxes...Plus, my company car allowance covers this anyway...

My cost at the end of the extended lease should be around $40K or less...

With all the mods, I am not giving it back to Honda...


BJX

 

[bjxnsx]

Another thing...Get an extended warranty as well for $2500 4 years 48K miles when you are nearing your original warranty. Worth the money & reassurance from Honda.

BJX

 

[TOOLTIME]

redo the lease and extended the warranty if money not a issue. It's always that "what if"

 

[graemeg]

Payoff is $65,000

Scenario:

If I were to put $65,000 in a cd for 7 years I would have approx $97,000 at the end of the 7 yeard CD term.

So the golden question is will the car be worth $97,000 in seven years assuming I put 2,500 miles a year on the car.

I am basing this on paying off the lease with a loan I could take for 7 years for $65,000 at 8%.

Just a thought.

 

[docjohn]

Payoff is $65,000

Scenario:

If I were to put $65,000 in a cd for 7 years I would have approx $97,000 at the end of the 7 yeard CD term.

So the golden question is will the car be worth $97,000 in seven years assuming I put 2,500 miles a year on the car.

I am basing this on paying off the lease with a loan I could take for 7 years for $65,000 at 8%.

Just a thought.

No the car will not give you a positive financial return,,,but is the use of the car worth it to you.It was to me I bought my 96 off lease way back when.

 

[JeffShoots]

Payoff is $65,000

Scenario:

If I were to put $65,000 in a cd for 7 years I would have approx $97,000 at the end of the 7 yeard CD term.

So the golden question is will the car be worth $97,000 in seven years assuming I put 2,500 miles a year on the car.

I am basing this on paying off the lease with a loan I could take for 7 years for $65,000 at 8%.

Just a thought.

Buying a Car as an investment is ah

 

[RPM217]

No the car will not give you a positive financial return,,,but is the use of the car worth it to you.It was to me I bought my 96 off lease way back when.

Gee Doc, for a photographer, you're pretty astute!!! A car for the most part is not an appreciating asset, rather it's usually a depreciating asset. As Doc correctly points out what's it worth for you to be able to drive this car. On all the other cars (including this one) did you make any $$$ on the leases, were you able to recover your outlay? I don't think so, rather I think that you leased the car that you wanted at a monthly outlay that was acceptable to you. Decide if you can afford to purchase, and even if the car depreciated at the same rate as the lease assumed it would, is that acceptable. Be realistic in your assumptions, and you won't be disappointed. JMHO

 

[CL65 Captain]

The lease buyout is negotiable... if you like the car, make them an offer. It might take some haggling and a few calls as they will first tell you that the buyout is the price. However, they have an expense in coming to collect, process and sell the car if you turn it in. Eventually, you get to the right person who is "authorized" to make a deal and will.

FYI: My buyout on my old Lexus was $33k and I kept it for $29.5k

 

[Aero]

If you get a loan for 7yrs at 8% for 65k. Your total out of pocket will be $85k for the loan. Add that to your lease payment of ($800??/month for 3 yrs) which totals $29k so far. If you buy it and finance it you will have almost 115k tied up in the car. If you lease it for another 3 you'll have another 29k in it.

I'd only keep the car if you can buy it outright now or pay it off in a year or two.

Payoff is $65,000

Scenario:

If I were to put $65,000 in a cd for 7 years I would have approx $97,000 at the end of the 7 yeard CD term.

So the golden question is will the car be worth $97,000 in seven years assuming I put 2,500 miles a year on the car.

I am basing this on paying off the lease with a loan I could take for 7 years for $65,000 at 8%.

Just a thought.

 

[Hothonda]

Recommendation: Extend the lease. If you own a business (ie. LLC or equiv.), use it as a corporate car & deduct the lease. You can extend for additional 2 years at same rate (I think...). My lease was up and extended for the same rate. I am planning to buy it after my extended lease is over but milk the system via lease & then buy it later. I write the car lease off on my corporate tax return on an LLC. I have a 2003 NSX-T & my extended lease is up next June. Call Honda Finance to check extension rates & terms. It should be the same but I would negotiate the price.

I was in the same predicament...Extend the lease is the best way for taxes...Plus, my company car allowance covers this anyway...

My cost at the end of the extended lease should be around $40K or less...

With all the mods, I am not giving it back to Honda...


BJX

And when the IRS comes knocking be prepared to dig even deeper in your
pocket. They have no time for cars like the NSX (and similar vehicles) used for business deductions......

 

[SOURCE 1]

And when the IRS comes knocking be prepared to dig even deeper in your
pocket. They have no time for cars like the NSX (and similar vehicles) used for business deductions......

Ummmm, Since when can they dictate to you what your business vehicle of choice is? I have had all kinds of cars and deducted them out of my companies. It doesnt matter if you have an nsx or a freaking cargo van it is a viable business expense either way.

 

[TURBO2GO]

I am the orig owner of a 2005 NSX with 15k miles.

I am wondering if I should:

1) Buy the car at lease end, drive it on weekends and hope it will go up in value in 10-15 years.

2) Extend the lease (does anyone know if this an option as I am financed through Honda. If I do extend does the payment remain the same?

3) Turn it in, which I hate to do as this car ROCKS!!!!!!!


Any thoughts on if you think this las year of production 2005 car will be worth a ton one day?


Thanks:smile:

All I know is if you don't want it, I have someone that would interested in taking over the lease extension or buying the car.

This car will not appreciate to 97K. But it is the lowest depreciating least expensive car in this class to own. You can't compare the car to an investment, although if you compare it to any OTHER car, it sure starts to look like its an investment. Try looking at cost of ownership of other cars around 100K.

Silver/silver... wow... why would you want to sell that car. Everyone asks me when I will sell mine, and my standard reply is "never". I really mean it.

 

[Hothonda]

Ummmm, Since when can they dictate to you what your business vehicle of choice is? I have had all kinds of cars and deducted them out of my companies. It doesnt matter if you have an nsx or a freaking cargo van it is a viable business expense either way.

Dream on and good luck to you..........

 

[SOURCE 1]

Dream on and good luck to you..........

Very impressive answer....

 

[scooternsx]

I'm in BMW sales. You can use any car as a tax write off. You should see the amount of M6's and M5's that I sell under company names. If you can use it for work, then it's a write off.. Plain and simple.

Hell, we even get corporate ads suggesting these kind of deals to make it easier for our clients

 

[JeffShoots]

Ummmm, Since when can they dictate to you what your business vehicle of choice is? I have had all kinds of cars and deducted them out of my companies. It doesnt matter if you have an nsx or a freaking cargo van it is a viable business expense either way.

They (FED Tax Man) will question a Luxury or sports car in a case that a more economy car would have worked and been less of a Tax break or burden.

They deemed my H1 to be "Fitting" to my Job description but if I would have been taking a Tax deduction for my NSX I don't think it would "FIT"

I don't know the Tax code but I was under the impression that it would only be under review if I were abusing the Tax system and going to court anyway.