NSX $799 lease deal specifics?

[kgb_agent]

The balance sheet concept has confused many on this thread here. My point centered around the troll's initial criticism of paying $30-40K for an older car as opposed to leasing a new one. (Note: yes, I know that nearly every car depreciates no matter the age or condition. No, it's not generating interest or dividends, but if you own it, it's still an asset).

To me, it makes more financial sense to buy a 6-8-yr-old NSX than to lease a new one. Why? Let's compare two scenarios:

(# 1)
Buy a nice used 8-yr-old NSX for $40K. This is about 45% of original MSRP. (45% seems to be about where the depreciation curve seriously flattens out for cars like Ferraris and NSX's). Not counting sales tax, maintenance etc. you have paid $40K for a car that is yours to keep and drive as you wish indefinitely.

Change in net worth = + $40K while you own the car, declining annually, of course.

Chances are that you could own it for 5 years and easily sell it for $30K. Total cost to own per year = 10,000/5 = $2000.

(# 2)
Lease a brand new NSX for $799 per month for 3 years and give it back. Without all the maintenance and other BS fees/surcharges you have spent $28,764 to drive someone else's car for 36 months.

Change in net worth = $0.

Total cost to own per year = $28764/3 = $9588.


To me the choice is easy, but hey, different strokes for different folks.

 

[SCdS2K]

The balance sheet concept has confused many on this thread here. My point centered around the troll's initial criticism of paying $30-40K for an older car as opposed to leasing a new one. (Note: yes, I know that nearly every car depreciates no matter the age or condition. No, it's not generating interest or dividends, but if you own it, it's still an asset).

To me, it makes more financial sense to buy a 6-8-yr-old NSX than to lease a new one. Why? Let's compare two scenarios:

(# 1)
Buy a nice used 8-yr-old NSX for $40K. This is about 45% of original MSRP. (45% seems to be about where the depreciation curve seriously flattens out for cars like Ferraris and NSX's). Not counting sales tax, maintenance etc. you have paid $40K for a car that is yours to keep and drive as you wish indefinitely.

Change in net worth = + $40K while you own the car, declining annually, of course.

Chances are that you could own it for 5 years and easily sell it for $30K. Total cost to own per year = 10,000/5 = $2000.

(# 2)
Lease a brand new NSX for $799 per month for 3 years and give it back. Without all the maintenance and other BS fees/surcharges you have spent $28,764 to drive someone else's car for 36 months.

Change in net worth = $0.

Total cost to own per year = $28764/3 = $9588.


To me the choice is easy, but hey, different strokes for different folks.

Very well put. I agree with your scenario 99%...

However, what about the risk of having major issues with the used car (clutch) etc... and having to shell out thousands? Owning an 8+ year old NSX for 40k is going to be at some risk of these issues and you will be required to shell out big money all at one time. While this still might not off set the difference your formula came up with, it is definitely something to consider. Some people are also willing to pay more $$$ for a new car smell, no miles, color choice, '04 appearance, no paint chips, dents, dings, or scratches, etc...

As you said, different strokes for different folks.

 

[NeSX]

I agree with the arguement regarding service costs on the early NSX, however I know you can get fully documented cars (current clutch and valve adjustments / belts) with low mileage (around 35k) for mid $30ks.

I happen to purchase mine with 28k miles for $35k but then had to do all of the above maintenance ($4.2k was mu total) which has put me upside down in the car interms of getting my money back but from what I have seen / read that will likely be the only money (aside from oil, brakes and rubber) that I will put in the car for the next few years (my window regulators were done under warranty).

Personally I would like to think that I could sell the car some time in the future with 40k miles on it for low $30ks. If that happens I would have eaten $7k over potentially 2 years to drive a beautiful well cared for and (now) fully documented NSX that is a blast to experience everytime I get into it. $3.5k- $4k per year is a reasonable cost in my mind.

To each their own though... I know many people have many perfectly good reasons to buy/lease their cars.

 

[NSX-GUY]

The balance sheet concept has confused many on this thread here. My point centered around the troll's initial criticism of paying $30-40K for an older car as opposed to leasing a new one. (Note: yes, I know that nearly every car depreciates no matter the age or condition. No, it's not generating interest or dividends, but if you own it, it's still an asset).

To me, it makes more financial sense to buy a 6-8-yr-old NSX than to lease a new one. Why? Let's compare two scenarios:

(# 1)
Buy a nice used 8-yr-old NSX for $40K. This is about 45% of original MSRP. (45% seems to be about where the depreciation curve seriously flattens out for cars like Ferraris and NSX's). Not counting sales tax, maintenance etc. you have paid $40K for a car that is yours to keep and drive as you wish indefinitely.

Change in net worth = + $40K while you own the car, declining annually, of course.

Chances are that you could own it for 5 years and easily sell it for $30K. Total cost to own per year = 10,000/5 = $2000.

(# 2)
Lease a brand new NSX for $799 per month for 3 years and give it back. Without all the maintenance and other BS fees/surcharges you have spent $28,764 to drive someone else's car for 36 months.

Change in net worth = $0.

Total cost to own per year = $28764/3 = $9588.


To me the choice is easy, but hey, different strokes for different folks.

First of all, kgb, my original observation still holds.

You are attempting to compare owning an 8 year old car with leasing a new one. That's still "apples and oranges", but if you want to compare those 2 choices, be my guest.

However, here is my reason for my initial, somewhat semi-sarcastic "Whut" ???

Granted I took accounting a LOOOOOOOONG time ago and never completed a degree for it, BUT.........

In your example #1, sorry, but that is NOT correct. Your "net worth" has NOT gone up $40K. It has not gone up at all ! You have exchanged one asset (your $40K cash) for another, worth, at least right away, $40K. Your net worth has not changed !!!

Now, if you want to debate the pros and cons about leasing a brand new NSX vs buying a brand new NSX, let's go.

 

[mlambert890]

Very well put. I agree with your scenario 99%...

However, what about the risk of having major issues with the used car (clutch) etc... and having to shell out thousands? Owning an 8+ year old NSX for 40k is going to be at some risk of these issues and you will be required to shell out big money all at one time. While this still might not off set the difference your formula came up with, it is definitely something to consider. Some people are also willing to pay more $$$ for a new car smell, no miles, color choice, '04 appearance, no paint chips, dents, dings, or scratches, etc...

As you said, different strokes for different folks.

I disagree with it about 10000%. How can you say that paying more to own a BRAND NEW car over paying less to own a quite old car isn't worth while?

Of course the cost of owning the new car is higher! It's new! This seems like just a strong attempt to rationalize buying an old car over a new one.

For me, if Im in a position to afford to buy new/very nearly new, I just don't buy old. Even buying a ONE year old car saves you from the depreciation hit, so if anything, the argument should, as NSX-Guy points out above, really be about the 04 lease vs. an 04 purchase with an 03 preowned purchase thrown in to make it interesting..

Comparing against an 8 year old car is just way off. Why 8 years old? If my budget for a car is $90k, why wouldnt I buy a 2002 then? This is all just highly subjective at this point.

When you actually look at numbers only and ignore subjective measures, leasing the 04 under the deal is not that horrible against financing it thanks to the decent depreciation of the NSX.

 

[SCdS2K]

I disagree with it about 10000%. How can you say that paying more to own a BRAND NEW car over paying less to own a quite old car isn't worth while?

Of course the cost of owning the new car is higher! It's new! This seems like just a strong attempt to rationalize buying an old car over a new one.

For me, if Im in a position to afford to buy new/very nearly new, I just don't buy old. Even buying a ONE year old car saves you from the depreciation hit, so if anything, the argument should, as NSX-Guy points out above, really be about the 04 lease vs. an 04 purchase with an 03 preowned purchase thrown in to make it interesting..

Comparing against an 8 year old car is just way off. Why 8 years old? If my budget for a car is $90k, why wouldnt I buy a 2002 then? This is all just highly subjective at this point.

When you actually look at numbers only and ignore subjective measures, leasing the 04 under the deal is not that horrible against financing it thanks to the decent depreciation of the NSX.

Did you get posts confused? I never once said, "paying more to own a BRAND NEW car over paying less to own a quite old car isn't worth while." Nothing even in the ball park... I for one am on the side of leasing an '04. I was just comparing the scenarios. Coming to the conclusion that basically owning an older 6-8 year old car can have expensive ramifications while buying a new one for 90k will not.

 

[kgb_agent]

In your example #1, sorry, but that is NOT correct. Your "net worth" has NOT gone up $40K. It has not gone up at all ! You have exchanged one asset (your $40K cash) for another, worth, at least right away, $40K. Your net worth has not changed !!!

NSX-GUY,
You are absolutely right, and I thought about my wording after I posted this. What I should have written is that leasing a car is pure expense, whereas if you use that money to purchase a car at least it will *remain* on your balance sheet. And if cost is a factor, I like the idea of knowing it's my car. That's just me.

Comparing against an 8 year old car is just way off. Why 8 years old? If my budget for a car is $90k, why wouldnt I buy a 2002 then?

Because the original post by matteni was a comparison was about how to spend $30K: (a) lease a new NSX that you end up giving back or (b) buy an older one that you get to keep.

If your budget was $90K, I'd think you could do even better than an '02, don't you?

 

[fannsx]

After reading everything on this thread, Doc C makes the most sense. No name calling,no sarcastic comments.
I leased mine for the same reasons as his.

 

[kgb_agent]

After reading everything on this thread, Doc C makes the most sense. No name calling,no sarcastic comments.
I leased mine for the same reasons as his.

Did I miss the name calling?

 

[NSX-GUY]

I wanted to see how you early NSX owners respond, and just as I expected and most of you went berserk. You all seem to be very good at labeling a new guy who doesn¡¯t agree with your ¡°You must BUY a used NSX¡± idea a ¡°TROLL¡± and come up with lame internet pictures and weak childish jokes.

Face it, you all spent $30-40k on a 10+ year old car w/ often 50k+ miles and when someone questions your purchase decisions you all get defensive and refer to them as ¡°trolls¡±. Great level of maturity.

¡°NSX is not about 0-60¡±? Yes, sportscars are not all about HP. But you think a NSX can run circles around a Z06 or EVO8 in an autox competition? Are you telling me a NSX can turn in faster laptimes at any major racetrack in the states than EVO8 or STi, especially by non professional drivers like us?

People here seem to believe leasing is the next worst thing to committing homicide, and make absolutely ridiculous statements such as ¡°When you own a car it is an asset and increases your net worth.¡±, so tell me why 50% of BMW, Mercedes, Porsche buyers today elect to lease their cars? Are you telling me all those people are too stupid to know that leasing is a total waste of money and buying is the only way to go?

You conveniently leave out other crucial variables and keep defending your purchases. How about the history of the 10+ yr old car you just bought? There was a thread here where owner found out that his NSX was rolled 2 years after he bought it. How certain are you your NSX is all cherry? How about warranty issues and repair costs? Is your 10 year old NSX warrantied?

When you lease, you pay for the depreciation in X amount of years + interest. You don¡¯t think your NSX will depreciate if you BUY it? Unless you paid $40k cash for your NSX, you are financing it, often with 6+% interest rate, and congrats for OWNING a 18-20 year old car that¡¯s worth about $10k when it's paid off. Why some people here think owning a car increases one¡¯s assets, I have no f##king clue. You seem to be confusing real estate vs automobiles badly. Furthermore, the acura lease deal has an interest rate of less than 2.5%. Goodluck getting a finance rate of 2.5%. And are you geting tax writeoffs on your purchase? FYI a special nationwide 350Z NissanFS lease program is $509/mo $1500 down. What is the MSRP on that car? Still don¡¯t think the lease is a heck of a deal huh.

I¡¯m gonna stop here, but feel free to continue posting lame internet pictures and make sad attempts at childish jokes.

So what's your handicap ???

(BTW, Take a valium ! )

 

[NSX-GUY]

Because the original post by matteni was a comparison was about how to spend $30K: (a) lease a new NSX that you end up giving back or (b) buy an older one that you get to keep.

If your budget was $90K, I'd think you could do even better than an '02, don't you? [/B]

Good point. How to spend $30K ?!?!?!

Let's see now. Do I spend $60 on a Ruth Chris' steak, or $10 at my local dinner (on special of course )

As in the decision for that steak, buying new or used depends on your financial situation and what it's worth to you and what you can afford. For 2 guys looking to spend $30K, a 12 Y.O. NSX vs. a new NSX is still not really a fair comparison.

Given no unusual expenses upon buying the $30K car it will quite obviously cost far less to own after the same x number of years as a new one. Of that there is no question.

So, given these 2 buyers are not really fishing in the same stream in the same "game", it's not really a fair question to begin with.

Again, as for buying vs. leasing of a NEW NSX, I guess if we REALLY ran the numbers we might find out what a FABULOUS deal the lease deal really is !!!

 

[nkb]

Good point. How to spend $30K ?!?!?!

Let's see now. Do I spend $60 on a Ruth Chris' steak, or $10 at my local dinner (on special of course )

As in the decision for that steak, buying new or used depends on your financial situation ...

Are you saying that your local diner sells used steaks for $10. I recommend the Ruth Chris' steak in that case

 

[SCdS2K]

$60 for a steak at Ruth's Chris? That must be a 40oz or something...

PS - I don't like the butter on their steaks...

 

[NSX-GUY]

$60 for a steak at Ruth's Chris? That must be a 40oz or something...

PS - I don't like the butter on their steaks...

Steak = $28, Salad = $7, Potato = $8, Beer = $6, Tax = $3, Tip = $8, Tab = $60

 

[NeSX]

don't forget the seared ahi tuna app... possibly my favorite thing on their menu.