Lease to own rates lower than finance

[mr_chin]

So I was working a way around getting cheaper finance vs lease to own.

Taking the 2011 HFP accord v6, which is $39,440, lease to own would be cheaper than financing. What i mean by lease to own is not returning the car at the end of the lease.

5 year financing at honda is 3.9%.

If you lease for 2 year at 0.9%, and then finance the buyout for 3 years, which is 1.9%, you are saving 3k in interest.

I hope this is how they calculate the interest when financing the buyout.

Tax for leasing is about $40 more. And on top of that, your month payment won't be as much. Down side is, there is kms restrictions.

I would like someone to confirm if this actually works.

[LilKai]

I don't think you can use the new car finance rate after 3 years.

[CharlieH]

you don't need to worry about km restrictions if you're going to buy it out.

[Blinky]

I'm pretty sure that the financing rate when you buy the car out would be the rate at the end of the lease, when you actually decide to buy the car and take out a loan. I doubt you'd be able to get 1.9% to finance a 2 year old car, but I've never looked into it so I wouldn't know for sure.

[StylinRed]

yeah leasing rates are amazingly low lately and financing on used cars, depending on brand, is also insanely low (audi 0.9%)