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Thinking about leasing to buy - is this a good plan?

ajrosenajrosen Member Posts: 10
edited October 2014 in Honda
My wife is carting around our 2 kids and all her PT equipment in a small 2007 Civic and is getting pretty tired of it. We also rent a minivan once or twice a year for longer trips, which costs us $500-$1000/yr.

Problem is, we are still paying $380/mo on my 2010 Outback ($7K left on it). We got a trade in offer on her civic and have a few thousand we can use for a downpayment. So, is this a good plan:

Honda.com is showing 35 months, 0 down. With the internet price of $30,393 I was quoted on an EX, trade in of 6K and 4K down, that brings the honda payment estimator down to $123/mo. We can fit that payment on top of the other car payments until the Outback is paid off. If we went into this expecting to pay the $17000 (based on 56% retention rate) at the end of our lease, is that an ok plan, or is there something else I'm not seeing that makes this a bad idea? I do know that we'll have a higher interest rate on the loan for the residual, but we'll be socking away about $8K before that comes due so we'll probably have a 10K loan.

This is the first time I've looked at leasing, and I don't have hard lease numbers from the dealer yet (going tomorrow). I wouldn't even consider it if we had my car paid off already. Mostly I'm just looking for a good way to get into a bigger car now but we intend to keep it for 8-10 years.

Thanks for any advice!


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