2014 Honda Odyssey Lease Questions

40mogul

@Michaell@Edmunds said:
However, Illinois taxes the entire purchase price in a lease, so the selling price increases to $44,933.07 (9% tax?) and that raises the monthly payment to $661.19.

Yikes.
Would a down payment help me with the IL situation?

Michaell

@40mogul said:
Would a down payment help me with the IL situation?

It would, but it's not something I recommend. If the car is stolen or totaled, you would be out the down payment money.

Other models of the Odyssey have slightly better residuals, so you could save money there (as well as a lower MSRP and selling price).

40mogul

@Michaell@Edmunds said:

Ok got it. By the way, in Lake County(Chicago burbs) I think the tax is 7%.
Can you model another one for me since I may need to move to a Touring now.
MSRP $42,170
Sale Price $38,200
15k miles/year
$0 Down
36 months

Thanks

Michaell

@40mogul said:
Ok got it. By the way, in Lake County(Chicago burbs) I think the tax is 7%. Can you model another one for me since I may need to move to a Touring now. MSRP $42,170 Sale Price $38,200 15k miles/year $0 Down 36 months
Thanks

I spoke too soon, the residual for the Touring is the same as for the Touring Elite - 49% for 15K miles.

Using your MSRP and selling price (plus 7% tax added in) I get a payment of $592.79/mo for 36 months.

40mogul

@Michaell@Edmunds said:
Using your MSRP and selling price (plus 7% tax added in) I get a payment of $592.79/mo for 36 months.

Just to clarify - The $592 estimate is for the Touring...not Touring Elite, correct?

Michaell

@40mogul said:
Just to clarify - The $592 estimate is for the Touring...not Touring Elite, correct?

Correct. I took your selling price, added 7% to it for sales tax, and ran the lease numbers like normal.

Oops, one small correction. Used the wrong MF. New pmt for Touring is $595.25. Sorry.

j_michael

@40mogul said:
Would a down payment help me with the IL situation?

If you can wait until July, the IL situation may resolve itself. There is a bill sitting on the governor's desk waiting to be signed. It is HB 2317. Look it up. As I understand it, this would make the tax applied to your monthly payment instead of the tax applied to the full value of the car and then divided by the number of monthly payments. This would essentially save you about half of the taxes over the life of your lease. Assuming the governor signs the bill (it passed the house and the senate overwelmingly), then I think it is supposed to to into effect 7/1. My fingers are crossed that my 2003 Volvo holds on that long.

40mogul

@j_michael said:
If you can wait until July, the IL situation may resolve itself. There is a bill sitting on the governor's desk waiting to be signed. It is HB 2317. Look it up. As I understand it, this would make the tax applied to your monthly payment instead of the tax applied to the full value of the car and then divided by the number of monthly payments. This would essentially save you about half of the taxes over the life of your lease. Assuming the governor signs the bill (it passed the house and the senate overwelmingly), then I think it is supposed to to into effect 7/1. My fingers are crossed that my 2003 Volvo holds on that long.

Wish I could. Current car lease up in a week.
Would this change the payment down the road if I do a lease now?

40mogul

@Michaell@Edmunds said:
Oops, one small correction. Used the wrong MF. New pmt for Touring is $595.25. Sorry.

So once the selling price is established it just comes down to the MF and Residual %?

In this case I'm assuming both the Touring and Touring Elite are 49% Residual and MF: 0.00055 plus the tax situation?

Trying to prepare for the fun negotiation!

Thanks

Michaell

@40mogul said:
So once the selling price is established it just comes down to the MF and Residual %?

In this case I'm assuming both the Touring and Touring Elite are 49% Residual and MF: 0.00055 plus the tax situation?

Trying to prepare for the fun negotiation!
Thanks

Correct on the MF and residual.

As far as the IL tax situation is concerned, I would guess that any contract signed before 1 July would be subject to the current tax regulations.

If the bill is signed by the governor, I think there would be fewer leases written between now and when the new laws go into effect.

j_michael

@40mogul said:
Would this change the payment down the road if I do a lease now?

Any chance you go month to month on your current lease to see what happens?

My understanding is that the new tax treatment will be only for leases written on or after 7/1. I have reached out to the sponsor of the bill, but have been unable to start a dialog about it.

Good Luck!

kyfdx

@40mogul said:

Thanks

Keep in mind that the Touring Elite doesn't get the $1500 lease cash.

ucfphi225

Just left the dealership (I'm in Florida) was offered the following on an EX-L, with the following breakdown:

MF: .00055
Res.: 56%

MSRP: $36,544

Selling Price: $31,406.10

Acquisition Fee: $595

Inception Fee (capped): $912.54

Final Capital Cost: $32,913.64

Monthly payment: $376.52 + 22.59 (6%) = $399.11

12k miles for 36 months (35 payments)

Sign and Drive with no money down or out of pocket; however, the dealership will put $500 down for me. Problem is, the $500 AND the current $1500 lease incentive is factored in to that Selling Price. I think that should give me some more wiggle room. Am I correct in thinking that the incentives should not be negotiated in to the final selling price, because it benefits the DEALER, not the seller? I know people in my area have walked out with the same car for pretty much $30k.

Are the inception fees negotiable at all? I assume those are the tag/title etc.

zedm

Hi Moderator,

Minivan shopping - Appreciate it very much if you could provide residual and money factor for an EX-L with NAV . This is in Los Angeles. Please also confirm if the $1500 lease cash and the other $500 flex cash is available in this geography.

Thanks in advance

Michaell

@ucfphi225 said:
Just left the dealership (I'm in Florida) was offered the following on an EX-L, with the following breakdown:

MF: .00055
Res.: 56%

MSRP: $36,544

Selling Price: $31,406.10

Acquisition Fee: $595

Inception Fee (capped): $912.54

Final Capital Cost: $32,913.64

Monthly payment: $376.52 + 22.59 (6%) = $399.11

12k miles for 36 months (35 payments)

Sign and Drive with no money down or out of pocket; however, the dealership will put $500 down for me. Problem is, the $500 AND the current $1500 lease incentive is factored in to that Selling Price. I think that should give me some more wiggle room. Am I correct in thinking that the incentives should not be negotiated in to the final selling price, because it benefits the DEALER, not the seller? I know people in my area have walked out with the same car for pretty much $30k.

Are the inception fees negotiable at all? I assume those are the tag/title etc.

When I plug in your numbers, I get a pre-tax payment of $375.25 and a post-tax (6%) payment of $397.76 - pretty close to the numbers you reference.

One thing to note is that the dealer fees in Florida can be quite high - as much as $699. You should make every effort to negotiate your selling price to offset that fee.

And yes, I would try to get the best selling price before the dealer contribution and lease cash. You may have to work with multiple Honda dealers to get the best price. Check the "Odyssey Prices Paid" forum for information on selling prices around the country that you can use for reference.

Michaell

@zedm said:
Hi Moderator,

Minivan shopping - Appreciate it very much if you could provide residual and money factor for an EX-L with NAV . This is in Los Angeles. Please also confirm if the $1500 lease cash and the other $500 flex cash is available in this geography.

Thanks in advance

What is the lease term and how many miles per year?

I can confirm the $1500 lease cash is available for the EX-L with NAV. MF is .00055.

As far as the flex cash goes, that's something the dealer has to offer, but only in limited amounts each month. They may or may not have any left to offer you. All you can do is ask.

zedm

Hi Michael,

The lease term is 12k and 36 months for the ex-l with nav

kyfdx

@zedm said:
Hi Michael,

The lease term is 12k and 36 months for the ex-l with nav

.00055 MF and 54% residual. The $1500 lease cash is nationwide

foxlm22

Hi all, I'm very new to leasing and was just about to go to the dealer to sign for a car I negotiated and found this awesome site. I'm leasing a Honda Odyssey EX-L. It'll be $2000.00 down with a $351.00 per month payment. The purchase price of the car is $31,073 and it's a 15K lease. Is this a good deal or should I ask for more?

Michaell

@foxlm22 said:
Hi all, I'm very new to leasing and was just about to go to the dealer to sign for a car I negotiated and found this awesome site. I'm leasing a Honda Odyssey EX-L. It'll be $2000.00 down with a $351.00 per month payment. The purchase price of the car is $31,073 and it's a 15K lease. Is this a good deal or should I ask for more?

We need a bit more information before we can comment. What is the MSRP (sticker price) of the van you are leasing? How long is the lease term in months? Is the $2000 all a down payment, or does some of that cover the inception fees from the dealer?

foxlm22

@Michaell@Edmunds said:
We need a bit more information before we can comment. What is the MSRP (sticker price) of the van you are leasing? How long is the lease term in months? Is the $2000 all a down payment, or does some of that cover the inception fees from the dealer?

The MSRP is 36, 445.
The lease term is 36 months.
I should confirm but the dealer said I would owe nothing else at signing so I assume yes?

Michaell

@foxlm22 said:
The MSRP is 36, 445. The lease term is 36 months. I should confirm but the dealer said I would owe nothing else at signing so I assume yes?

Using the MSRP and selling price you've provided, and the residual of 54% and MF of .00055, I get a pre-tax payment of $344.38. Not sure where you are or what the tax rate is, but that's pretty close to the $351/mo you got from the dealer.

foxlm22

@Michaell@Edmunds said:
Using the MSRP and selling price you've provided, and the residual of 54% and MF of .00055, I get a pre-tax payment of $344.38. Not sure where you are or what the tax rate is, but that's pretty close to the $351/mo you got from the dealer.

Ok, awesome. That's great because my payment includes tax so it sounds like a good deal!

Patv

I am planning to lease 2014 Odyssey touring. The dealer give me this deal.
Down - $1500
Monthly Payment - 439 +Tax
36K miles for 36 months
Please let me know if its a good deal

kyfdx

We need a lot more information than that. Do you have an MSRP and a selling price?

koopa1

Im interested in leasing a 2014 odyssey touring and was wondering if there is a difference in the residual value with a 10000 mile/year lease. the MSRP is 42710, the selling price is 38500 and want to lease for 36 months. can you tell me the residual and the MF please. thank you.

kyfdx

@koopa1 said:
Im interested in leasing a 2014 odyssey touring and was wondering if there is a difference in the residual value with a 10000 mile/year lease. the MSRP is 42710, the selling price is 38500 and want to lease for 36 months. can you tell me the residual and the MF please. thank you.

The lowest mileage allowance offered by Honda is 12K/yr.

The money factor on the Odyssey varies by state. .00055 or .00160

The residual for 36mo, 12K/yr is 51%

mantha

I'm looking to lease a 2014 Honda Odyssey Touring. The dealer gave me his best selling price and then added $830.00 (freight) to it as well as $500.00 flex cash. This brings the total selling price up by $500.00. He then has a line item below the gross cap cost in which he deducts the 500.00 as a "cash down" pymt. I believe this is a wash and I am not really getting the flex cash. When I use the "Dealer Science" Honda calculator that some Honda dealers use I don't see them quoting an internet price and adding the flex cash into the selling price. I only see the entry of flex cash $500 as a reduction to the capitalized cost. How come it appears I am paying $500 more over the negotiated purchase price? Should they be adding the freight to the negotiated sales price? I was told I also am getting the rebate to dealer of $1500.00 in the negotiated sales price before freight and flex were added but don't think so since I just spotted a cheaper deal elsewhere! Also do you always have to pay the acquisition fee of $595.00 in addition to the freight? Thanks in advance

kyfdx

1) Correct.. the dealer is not giving you the flex cash. He is keeping it for himself.

2) Adding the $830 destination charge on to your negotiated price means the dealer's price was really $830 higher than what you thought you negotiated.

3) Yes... the $595 acquisition fee goes to Honda Finance on a lease.

It's not unusual for a dealer to obfuscate the buying process, so you are confused about the numbers... It sucks, but it isn't unusual.

mantha

Thanks for the reply glad that you are in agreement with this shady tactic. The good thing is I'm not confused and confronted the Sales Mgr and he claims he doesn't know where the $500.00 difference is! Even worse this dealership sold me a Program when I bought my present Odyssey where I get free car washes, oil changes etc for 3 years and I'm supposed to get a $500.00 credit when I turn in my car for a new lease or purchase. He won't honor that either! Says the deal is already good. What advice would you give to get the additional $1000.00 credit I am due other than going to another dealer? I am happy with their service department and I have bought 2 cars from them in the past. Do you think the GM or the Owner should be engaged in this?

kyfdx

Just tell them that you like to do business there, but at that price, you'll go somewhere else. The service department will still be glad to have your business, no matter where you buy the car. As you've found, their owner loyalty program doesn't mean anything, even if you paid for it.

I've never found an owner or GM do me any good, but you are welcome to try. I did run into an executive with a local dealership group in an elevator one time.. She gave me free Reds tickets, and set me up with the sales manager at their Audi dealership. I have to say... they gave me a pretty good deal, but the lease program on the Audi was still way too expensive..

KMS_Cleveland

Looking at leasing a 2014 Odyssey EX-L with RES. Below is the offer from the deal. Let me your thoughts on the price. I am putting zero down.

MSRP- $38,155

Sale Price- $33,264

Residual- 54%-$20,550

Money Factor- .00055

Taxes/lender fee- lorain county 6.5%- $1,530

Doc fee- $250

title and lice plate fee- $33.50

monthly payment- $426 O.T.D

Michaell

@KMS_Cleveland said:
Looking at leasing a 2014 Odyssey EX-L with RES. Below is the offer from the deal. Let me your thoughts on the price. I am putting zero down.

MSRP- $38,155

Sale Price- $33,264

Residual- 54%-$20,550

Money Factor- .00055

Taxes/lender fee- lorain county 6.5%- $1,530

Doc fee- $250

title and lice plate fee- $33.50

monthly payment- $426 O.T.D

My calculations with the above numbers give me a pre-tax payment of $381.30.

The residual number seems off .. 54% of $38,155 is $20,604 .. not a huge difference, maybe $1-2 per month.

Is the sales price excluding the taxes and fees? Are they being rolled in? That would increase the payment.

KMS_Cleveland

I assume the sale price EXCLUDES the taxes and fees which are $1,530 so the total sale price is $34,794.

KMS_Cleveland

I forgot to include the doc fee of $250 and the tags of $33 so total price of $35,077.5

Michaell

@KMS_Cleveland said:
I assume the sale price EXCLUDES the taxes and fees which are $1,530 so the total sale price is $34,794.

Generally, taxes are applied to the payment amount, not to the transaction price. The only states that don't are Illinois, Texas and Maryland - they tax the entire sales price and spread that amount over the lease payments, which grossly inflates the payment. The doc fees and registration can be added into the net cap cost, taking that amount to $33,547.50.

That gives me a pre-tax payment of $389.33 and, with 6.25% tax, a total payment of $413.67.

j_michael

Does Honda have a version of BMW's Owner's Choice Financing? http://www.laurelbmw.com/Owners-Choice
Basically a financing deal with a balloon payment at the end for states (like IL and others) that have arcane rules that make leasing less advantageous?

KMS_Cleveland

That makes sense. Here is what I think the offer is (am confirming with the dealer):

$33,264 - Sales price

PLUS $990 - Lender fees/title/lice plate fee / doc fee ($1,530 - (6.5% X ($33,264 - $20,604)) (ie tax rate on Sale Price - Residual)

$34,254 Total Sale Price (w/o tax)

Monthly Payment (w/o tax) = $379.18
Monthly Tax (6.5%) = $24.65
Total OTD Monthly Payment of $403.83

Does the calculations above make sense? Also, is a Total Sales Price (w/o tax) of $34,254 on a EX-L RES a good deal?

Michaell

@j_michael said:
Does Honda have a version of BMW's Owner's Choice Financing? http://www.laurelbmw.com/Owners-Choice
Basically a financing deal with a balloon payment at the end for states (like IL and others) that have arcane rules that make leasing less advantageous?

It looks like it's available .. search for "Honda Financial Services Leadership Purchase Plan".

Michaell

@KMS_Cleveland said:
That makes sense. Here is what I think the offer is (am confirming with the dealer):

$33,264 - Sales price

PLUS $990 - Lender fees/title/lice plate fee / doc fee ($1,530 - (6.5% X ($33,264 - $20,604)) (ie tax rate on Sale Price - Residual)

$34,254 Total Sale Price (w/o tax)

Monthly Payment (w/o tax) = $379.18
Monthly Tax (6.5%) = $24.65
Total OTD Monthly Payment of $403.83

Does the calculations above make sense? Also, is a Total Sales Price (w/o tax) of $34,254 on a EX-L RES a good deal?

You're almost there .. the $379.18 is the depreciation portion of the payment. You still need to add the 'rent charge' (cap cost + residual value multiplied by the money factor). That adds another $30.17 to your pre-tax payment - $409.35.

Then tax that amount at 6.5% to get a total payment of $435.95.

KMS_Cleveland

Thanks! I was quote a monthly rate of $420 with only first payment due at signing. Seems like a good deal.

j_michael

@Michaell@Edmunds said:

It looks like it's available .. search for "Honda Financial Services Leadership Purchase Plan".

Does anyone have experience with this? What kind of terms should one expect? Has anyone compared it to leasing? Any websites to provide more into?

Michaell

@j_michael said:
Does anyone have experience with this? What kind of terms should one expect? Has anyone compared it to leasing? Any websites to provide more into?

Yeah - I found the Honda Finance site pretty easily with my web search.

j_michael

@Michaell@Edmunds said:
Yeah - I found the Honda Finance site pretty easily with my web search.

Thanks, Michaell. I found it as well. Though, your indication of the name of the program was certainly useful. I have read what is included on the Honda Financial Services website. But what it does not say is what kind of terms are typical under this program. For example, they have a leasing calculator and a financing calculator, but nothing (that I saw) that relates to the terms of the Leadership Service Plan. What portion of the car is earmarked for the baloon payment? What APR is typical? etc. If you saw somthing that I missed, could you point it out?

Michaell

@j_michael said:
Thanks, Michaell. I found it as well. Though, your indication of the name of the program was certainly useful. I have read what is included on the Honda Financial Services website. But what it does not say is what kind of terms are typical under this program. For example, they have a leasing calculator and a financing calculator, but nothing (that I saw) that relates to the terms of the Leadership Service Plan. What portion of the car is earmarked for the baloon payment? What APR is typical? etc. If you saw somthing that I missed, could you point it out?

The documents I have reference the Leadership plan as if it were a lease - MF and residual, not APR. For example, the Odyssey EX has an RV of 56% for 12K miles per year and a MF of .00055. The only difference is that the residual value becomes the amount of the balloon payment at the end of the term.

xmona

2014Oydessy lease

I need help on a lease pmt for a Oydessy EX 10K mi/yr 39 mos lease (or if there is a better lease program out there) I live in NY. Credit score 690 $0 down just DMV cost. Dealer wouldn't tell me the residual or MF on it either. Dealer said $350/39 10K miles. Your help would be appreciated. Thank you in advance

Michaell

@xmona said:
2014Oydessy lease

I need help on a lease pmt for a Oydessy EX 10K mi/yr 39 mos lease (or if there is a better lease program out there) I live in NY. Credit score 690 $0 down just DMV cost. Dealer wouldn't tell me the residual or MF on it either. Dealer said $350/39 10K miles. Your help would be appreciated. Thank you in advance

Honda does not offer 10K miles per year leases.

For 39 months and 12K per year, the residual is 54% and the MF is .00055

KMS_Cleveland

Do you know the May lease figures for Honda leases? Trying to get more details but was quoted $405 / month for an Odyssey Touring with only first payment due at signing so $405 at signing and then 35 payments of $405. I am getting the breakdown but seems like a good deal.

Michaell

@KMS_Cleveland said:
Do you know the May lease figures for Honda leases? Trying to get more details but was quoted $405 / month for an Odyssey Touring with only first payment due at signing so $405 at signing and then 35 payments of $405. I am getting the breakdown but seems like a good deal.

We don't yet have the May numbers from Honda. Sorry.

kyfdx

@KMS_Cleveland said:
Do you know the May lease figures for Honda leases? Trying to get more details but was quoted $405 / month for an Odyssey Touring with only first payment due at signing so $405 at signing and then 35 payments of $405. I am getting the breakdown but seems like a good deal.

The April Honda program is good until May 12th.

.00055 MF and 49% residual for 36mo, 15K/yr. $1500 lease cash.