36 Month Lease ending April 2012 - Buy or Let Go?

[Zangetsu57]

Hello everyone,

In April 2009, I leased a 2010 Honda Insight EX w/o navi for 36 months. I've enjoyed the car, and am considering buying it at the end of the lease (or financing it if I can obtain a 0.9% APR).

What are your guy's feelings about the car? When your lease ends, do you think you will purchase the vehicle, or let it go in favor of something else (e.g. Nissan LEAF or Prius III)?

Some information on my lease is below. I realize I didn't get the best deal, even despite my excellent credit. I chalk it up to not being prepared in understanding lease financing at the time, this being my first loan/lease *ever*, the fact that the I2 was just released at the time, so the good deals didn't come about until months later.

Gross Capitalized Cost: $23292.00
Down (not including state fees): $830.00
Rent Charge: $4308.48 (7.67% interest rate)
Total of payments at end of term: $13806.00
Residual/buyout value: $14939.00

So I can buy the car at $15k, or let it go. I'm tempted to buy it, seeing as the I2 seems to hold its value well. Even if I don't want to keep it, I'm wondering if buying out and reselling higher would be feasible - I'm seeing used EX's go for 18-22k, which blows my mind considering the MSRP is around 19-20k IIRC.

What do you guys/gals think?

On an unrelated note, the black trim on the door sides and spoiler area is starting to splotch and fade, even though I treat it after each car wash with Meguiars Back to Black. I live in SoCal, and the car sits in the sun all day at work (garage at night). Is this happening to your cars as well? How do you mitigate it, if at all?

[Zwolfe]

I can't comment on leasing since we financed to buy, but what I can say is that I like the Insight more now than I did when we first bought it (having more knowledge on how to maximize its efficiency helps.)

Plus it just hasn't missed my expectations and has overachieved.

About the Meguiars, it seems it has UV blockers in it. So, do you apply it to the panel that is beginning to splotch and fade? Seems you do. I use Zaino, hopefully after another couple years it'll still be holding.

[Zangetsu57]

I'm glad to hear that you enjoy your car, Zwolfe. Yeah, I apply it to the panel that is beginning to fade. I took a closer look and it appears that the splotches are actually residue from the Costco car wash. They rub off with a rag. The rear spoiler *is* starting to fade in some areas though, even with Meguiars Back to Black.

[Jayemtee]

I see you don't need to make a decision until April 2012. Things could happen between now and then, although I think you are doing a wise move in considering your options now. You have time to look around. And you never know what gas prices will do between now and then.

I don't think you could go wrong keeping the Insight, since you are happy with it now. You have time to clean it up and be ready to trade it in for top dollar if any smoking hot deals come along.

I see no reason to go with a Leaf or Prius if you are happy now.

[Cobb]

Whats the dealer doing? Are they calling yopu to bring it in and release another car? That would be a good sign. If they want you to purchase it, then it would be on your opinion if you like the car.

I had a friend with a mazda mitia. He wanted to trade it, but the dealer would not let him out of the lease. So he learned to live with it. Then when the price of the car shot up as well as valve they were willing to break teh lease early so he can get a different car.

[Zangetsu57]

Originally Posted by Jayemtee

I see you don't need to make a decision until April 2012. Things could happen between now and then, although I think you are doing a wise move in considering your options now. You have time to look around. And you never know what gas prices will do between now and then.

I don't think you could go wrong keeping the Insight, since you are happy with it now. You have time to clean it up and be ready to trade it in for top dollar if any smoking hot deals come along.

I see no reason to go with a Leaf or Prius if you are happy now.

I'm happy overall, but there are a few things that I'm not quite as satisfied about:
1. The ride is bumpy on the Insight. It is exacerbated by the crappy SoCal highway system, which is in need of much repair. I rode in a Prius II (touring) and it was noticeably smoother and had more power. I can only imagine the Prius III is better in those regards. That said, I really like the handling on the Insight to the Prius II.
2. Acceleration is a bit slow sometimes. It has only started to bother me recently when needing to get up to speed when merging *uphill*. Wasn't a problem in FL.
3. The damn AC shuts off in econ mode. Should have designed the compressor to run off the battery. But this is a minor gripe.

That said, the car is great. I like the Nissan LEAF, but the EPA 73 mile range somewhat bothers me as I couldn't drive from Oxnard to LAX - even one way. If the pack had a 150 mile range I'd be more apt to jump.

So that pretty much leaves the Prius and whatever Hyundai Elantra hybrid might pop up.

[circa1986]

I'd probably buy it from them, and then sell it at a higher price. You could probably get more than $15k for that car in the current market.

Your credit union or bank most certainly offers a lease buyout loan. Take a look at one!