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I had a '99 Honda Accord EX that we got under Honda's SmartBuy program (similar to SmartLease)and thought it was a great idea. When we got the '01 wagon, we wanted to do the SmartLease but it was only available in TX. It's too bad SAAB hasn't gone national with the program-I'm sure they'd move even more cars that way.
The two main benefits are 1) the car (IIRC) is in your name (and not the lessors)-making it easier to unload the car if your financial or personal situation changes. You can sell it (or even trade?) at anytime-as long as you can cover what you owe on the car at the time you sell it. If it is a car that retains a high resale value (combined with low miles) and is a highly desirable model, you can even make a tiny profit. I sold my '99 Accord on my own and made enough money to pay off the note and a couple of hundred extra in my pocket!
Secondly, since you pay the tax upfront-you get the tax benefit when you buy/smartlease your next car. For example, of you bought a $20,000 car and paid tax for that $20k upfront-the next time you buy a car, that tax you paid on the $20k can be rolled over into the next car. So, let's say at the end of the smartlease term you bought a $30,000 car. You'll only be paying tax on the difference (or $10,000). Kinda neat. And you don't have to buy the same brand car to use this tax advantage.
You do not get this tax advantage through traditional leasing.
You get all the advantages of leasing without the weight of being tied to the lease. And you're not upside down in this type of leasing. It's a good deal!
My wife's friend's husband was the finance manager at the Honda dealer and told us about this when we getting a new car. Needless to say, I was very skeptical. Sounded too good to be true. But he was right!
'94 900SET
'01 9-5 LPT wagon
posted by 155.58.23...
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