Leasing
There may be other leases available. Contact a local dealer for more information.
Start: 12/01/2007 End: 01/02/2008 $199Monthly Payment Calculate Other Monthly Payments36Month Term$2645Down PaymentNASecurity Deposit12000Annual MileageRestrictionsLease is based on a 2007 Civic Hybrid (Model FA3627EW) and a $2645 lease bonus to customers who qualify for the AHFC Super Preferred credit. Dealer contribution may vary and could affect actual lease payment. See your local dealer for details. Comments$3439 due at signing. Dealer participation may vary. Incentives and Rebates are provided subject to the terms of our Visitor Agreement.

Obviously, the major drawback is that you don't get the tax credit. Still, interesting that this is the only Civic trim level they are offering a lease on.

 

I think I just rather purchase it, get the rebate, drive as much as I want, and actually have some value if I decide to sale it.

I dont know why they call it lease... it should just be called Rent-free

 

Agreed. I don't think it makes sense to lease a "normal" car, let alone a hybrid where it takes a couple of years to recoup the extra cost of the hybrid--especially when you don't get the tax credits!

 

Yes, it takes a couple years and a LOT more than 12,000 miles/yr. to make a hybrid worth buying. People who drive only 1,000 miles per month should get a regular car.

Also, that $199 payment sounds good until you see the $3,400 down payment. I'll do the math here compared to my recent purchase of a 2007 HCH on a 3 year loan:


Lease -- $3,400 down, $200/mo x 36 months = $7,200 ---- total $10,600

Buy -- $0 down, $650/mo x 36 months = $23,400 ---- total $23,400

(the 'buy' total doesn't include the $2,100 tax credit, since that expires next month)


The price difference looks tempting, but remember, the lease's $10,600 price only covers 36,000 miles. That's 30 cents per mile. The buyer gets unlimited miles -- in my case 24,000 per year. So that's 33 cents per mile.

Also, at the end of the lease, you have nothing. You either have to give the car back to the dealer, or buy it at an inflated price, or lease another car. At the end of a purchase, you own a car, which you can either keep or sell.

If you keep it, the cost per mile drops dramatically. If you sell it, you re-coup a large percentage of your outlay.

Say that you sell your 3-year-old Civic Hybrid for $14,000 the day after you pay it off. That reduces the $23,400 cost to $9,400. That's less than the lease, and it leaves you with 14 grand in the bank, instead of no car and no money.

Now, certainly, if you leased the HCH and put that $400/month that you saved vs. the purchase into a bank account for 3 years, you'd have $14,000, too. But, first of all, no one here does that, because if they did, they'd all be millionaires, and would be leasing Lamborghinis, not Hondas. Second, the guy who leased would have driven much less than the guy who purchased, which goes to value.

The proverbial bottom line is that leasing is rarely a good deal for the average guy buying an average car. It's best for expensive or exotic cars that are difficult to sell on the used market. And leasing a hybrid is pointless because you need years and miles to justify the extra cost, anyway.

To put it another way, look at it from the dealer's point of view. To him, leasing is great! He gets you to pay him 11 grand to rent a car for 3 years. Then, he gets the car back with low mileage and in perfect condition (otherwise you pay him a fortune for extra miles or body damage). Then he gets to re-sell the car for full market value -- about $18,000 in this case. So he winds up making $30,000 on a $20,000 car.

That's why dealers are always pushing you to lease cars.

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Great way of putting it 1stpik !

I remember I had leased a car before, then returned it... and still owed like $2K because of wear and tear and mileage.

 

lease on a honda civic is ridduclous. Last year I leased a honda accord lx for 1000 down 165 per month tax included for 12k 36 months. That is a deal.

and 2 years ago they had the altima 2.5 for 2500k down 12k per year 24month for 98 plus tax per month. that is a steal of a deal.