[AlwaysHitVTEC]

What is the best way to buy a new Civic? What are you thinking?

I like the idea of leasing, but I'm betting the initial lease promotion will not be favorable. I'm sure Honda will offer a competitive lease special with time.

This will be my first brand new car, so I'm not certain how the financing options work. Can anyone with more experience chime in with some advice? Are there any helpful payment calculators out there that you recommend?

For example, if I decide to finance the Civic, what sort of interest rate should I expect? My credit score is 715, no derogatory marks except for some student loans. Key question: can I go to my credit union and get a competing interest rate/loan package? Will the credit union even finance something this new?

I'm thinking of putting 20% down. I like having liquid cash available and don't want too much tied up into the car.

Any guidance is appreciated!!

 

[AlwaysHitVTEC]

NEVER LEASE
I always pay CASH.
Never had a car loan in my life.

I like the idea of no debt.

But when I can put my money into other investments earning interest, why earn 0% and have the money be stuck in a paid off car? And what happens if somebody hits me and the car is totaled?

That's why I'm thinking 20% down.

 

[AlwaysHitVTEC]

Finance > Lease! At least at the end of the term you own the depreciating asset and can sell it, at the end of the lease you have nothing to show for the money you've been spending.

Plus if you take good enough care of the vehicle throughout the time owned you up your chances of getting more money out of it in comparison to the rest on the market at the time.

I've read that many times people who finance end up losing more money in depreciation whey they then go to sell the car a few years later. And they have nothing to show at that point for the money spent either. At least with leasing the money spent in depreciation is already set. You can come ahead or end up behind with a straight finance. Having set costs is one of the main reasons to buy a new car anyway. Otherwise, I'd just buy a used, really clean Honda S2000 and brace myself for an entirely unpredictable ownership cost.

 

[AlwaysHitVTEC]

If you're dead set on leasing at least get yourself pre approved before going in to deal. Most of the dealers profit off your new car comes from the arbitrage between their buy rate and what they lend to you at. Pre approval cuts out the middleman and saves you a percent or 2 in interest...

Are you sure you can get pre-approved lease rates from third party banks? I thought you could only do that with a straight finance deal. I'm a millennial who has never bought a brand new car before so I appreciate all the feedback everybody.

 

[AlwaysHitVTEC]

never lease a car...you're only asking for trouble
save enough money up to put down so you can afford your monthly payment
find a car payment calculator on the web...your interest rate would be under 2% i would think

Are there any calculators you would recommend?

I'm less concerned about the monthly payment -- more concerned about the total ownership cost (including interest and fees). I love the idea of a new car warranty to put my mind at ease. I need to be able to commute to work everyday and can't worry about car repairs all the time.