2013 and earlier-Acura TL Lease Questions

jinva

Thanks for your input Car_man. It reinforces our inclination to proceed with our negotiations this month.

J(ohn) in VA

1ohioguy

Thx for the advice on destination.

Regarding the rate, this is a rate he is giving me without an application. Credit will not be a problem with a score of 780 and being a three-time Acura lease customer.

I am paying the $595 "bank fee" up front...plus title..first mo..etc for $1,1xx cash OTD. "Security deposit" was not mentioned and I believe they waived it for me four years ago when I turned in our Integra and leased our current '02 TL from AHFC.

He is willing to give me the .0026 on 42 months... but says that the absolute lowest rate through AHFC for 36 mos is .00285.

Sounds like he is only doing this to get another $502.50 out of me. I wish he would come clean on the rate and simply tell me that the negotiated price is 32102.50 vs. the 31600 he is quoting me. Then at least I could shop the purchase price to other Acura dealers knowing that the Honda interest rate will be the same everywhere.

Has anyone else been told about the .00285 rate (TL/36 months)on or after 11/5/2005?

Thx

alec110

I got 0.00285 on a 36 month lease (12K/year). Also, the dealer "waived" the acquisition fee

blueline

Car_man, So when you say "When calculating lease payments, always include the destination charge in your vehicle's MSRP. It should be taken into account in the capitalized cost as well, but ultimately your car's cap cost depends upon the selling price that you are able to negotiate." Do you mean use the MSRP + the destination charge to come up with the Residual?? (ie $35,900 + destination x .61%) and to calculate depreciation you subtract Residual from Cap Cost (negotiated price) and multiply by 36? Can you confirm my understanding of this please???
Thanks, Blue

kyfdx

You've got it... The residual is multiplied by the bottom-line MSRP including destination..

Depreciation is Cap cost minus residual..

regards,
kyfdx
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atlantatl

Just did a 42 month lease at a local dealership here in Atlanta.

$470 per month (price includes tax)
42 months
12K miles
$600 due at inception ($470 of which was 1st month payment)

Residual was 57%
Lease Factor was .00245 or 5.88%

This was through AHFC.

Thought it was a good deal. Love the car!

blueline

Thanks for the quick response. I live in South Florida and I lost my DSL for the last couple of days. Thats why I have taken so long to thank you.

Let me ask you what you think of the following deal, assuming this is what I can get from the dealer:

Residual - 61%
Cap Cost - 33,500
Money Factor - .260
Money Down - 0
Term - 36 Months (12,00 Miles/year)

When you run the numbers on these figures, you get approximately $457.00 not including FL Sale Tax.
This figure also does not include any other fee's they might try to hit me with. Can you let me know what you think of this lease and what other charges they might try to lay on me???? Thankyou

blueline

What was your Cap Cost?? (ie,negotiated price) What did they tell you was the MSRP + Destination??? (Should be somewhere in the neighborhood of $33,900)

Thanks...........Blueline

blueline

Walt,

I just recieved an email from an internet salesman in my area who came up with some interesting figures for a 2006 TL Automatic with a Nav System. I am attaching his email and my response. Could you please help me clarify the differences in our numbers?? Thanks very much in advance.

Kelly

My response to his email


Mike,

Based on a 61% Residual and using the MSRP + destination at 35,900, I come up with a Residual value of $21,899. Assuming you used a money factor of .00260 and a Cap Cost of $32,935 for a 36 month term at 12,000 miles / year, here are the numbers I come up with: Depreciation = $306.55, Finance Fee - $142.56, + Florida Sales Tax. This brings my total to $449.11 plus tax. Did I calculate something wrong? Our numbers are off by almost $60. Let me Know.

Kelly

His email:


Kelly,

I'm using a sale price of $ 31, 625 plus your inceptions since you requested no money down. Willbring you cap to $ 32,935. 36 mo./12k. per year $ 508.82 plus tax. Add $ 19 a mo. to go to 15k. per year. Can I take your order?

Mike

mcasseba

06 TL with Nav, 42 month 15K and $2000 out of pocket for $475 (with taxes) a month?

kyfdx

I'm going to guess that he is quoting for a NON-navi unit.. Because that sale price is well below invoice, and he doesn't mention the residual...

But, even that would only raise the payment to $480/mo.

If you notice, you are the only one quoting residuals and money factors in your e-mail... Other than the selling price and cap cost, he doesn't mention any numbers, other than the monthly payment..

That leaves three possiblities..

1) Quoting NON-Navi.. which would have a lower residual, raising the payment.

2) Bumping up the money factor over the .0026

3) Your residual percentage is incorrect (I don't know it.. just pondering).

Or.. a combination of any/all of the above.. your original calculations were correct, given the numbers you were working with.

regards,
kyfdx
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njbig1

2006 TL w NAV - $467 includes tax for 32 months and 12k miles/yr with $1687 due at lease signing. This iS $60 less per month than the 2 other quotes I received. Anybody get any #'s cheaper?

blueline

Walt,

Just to correct a few items. I talked to the salesman on the phone prior to that email. When I mentioned to him, that I was looking for a residual of 61% and a money factor of .00260, he asked me if I was a dealer. I told him I had just done my homework. He said those numbers were exactly right, but in order to give me that money factor he would have to charge a security deposit. So those numbers in his email were assumed. Also, I made it perfectly clear which car I wanted: A 2006 TL automatic with Navi. Sorry I didn't make this clear to you in my last email. Looks like he is trying to hide some fee's (don't do that to a dealer-ha, ha). :shades: :shades:

dykast

Tommorow I am supposed to be picking up my car, but havn't signed anything yet.

06 auto w/nav and decklid spoiler

I owe $8200 on my trade in and they are giving me $7000.
(I could probobly get $8200, but I would need to spend about $1500 to get it there)

Deal is
$549 a month
42 months
12k miles
8% tax included in monthly payment
$1200 i owe on my other car rolled into the deal

$1311 at signing for first payment and other fees.

At this point I don't know the selling price, residual or money factor they are using. I was just concerned about monthly payment(yeah I know).At first I qualified for tier 3, but I had them pull from another credit bureau(with a much higher credit score and less mistakes) to get me into tier 2.

I want to know before I sign anything they aren't raising any rates on me because they think they can becuase I have not so perfect credit.

cgatto

Can some please post Honda's November Money Factor and Residual Values for the 2006 TL for a 36 and or 39 month lease?

This would be greatly appreciated.

Thanks you!

shore

Good Evening-

I am going to talk to a dealer tomorrow about the last 2005 TL he has on the lot-exactly the car I covet. Black with tan interior that they have discounted to $30,500 (say this is under invoice by $500). I want this car and want to lease. I want a lease of under $400 with as little out of pocket as possible. I get the feeling they want to get this car off the lot (deal fell through on it previously). What are the chances I can get this payment and how far should I push? Appreciate any input. Thanks much.

CarMan@Edmunds

You're welcome John.

Car_man
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CarMan@Edmunds

No problem 1ohioguy. Acura will waive your car's security deposit if you are currently leasing a vehicle through Honda Finance, and it sounds like you are. If Honda Finance will waive your security deposit at no charge, this car's buy rate lease money factor should be .00260 for 36 months and .00235 for 42 months.

Car_man
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CarMan@Edmunds

Yes, that is exactly what I mean, Blue. Your vehicle's residual value is equal to its (MSRP + the destination charge) x the residual value percentage.

Car_man
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CarMan@Edmunds

Hello mcasseba. You never mentioned the selling price or MSRP of the car that you are interested in leasing. These are important numbers for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing this car's selling price in relation to its MSRP you don't know how much of a discount you are getting on it. The second reason is that one needs the selling price and MSRP, including the destination charge, of a vehicle to calculate its lease payment. I would be more than happy to give you my opinion of this deal if you let me know what these numbers are.

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CarMan@Edmunds

Hi cgatto. If you were to lease a 2006 Acura TL without navigation through Honda Finance right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00260 and 54%, respectively. The numbers for an otherwise identical 39 month lease should be .00260 and 50%.

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CarMan@Edmunds

Good morning shore. I would be happy to give you an idea of how much this car should cost to lease, however in order for me to do so I need you to provide me with its full MSRP. this number is useful for two reasons. One, it will show us how much of a discount you are being given. Two, it is necessary to calculate this car's lease payment. So, let me know the MSRP (with the destination charge added in) and I will estimate what this car's lease payment should be for you and give you my opinion on the price.

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cgatto

Car Man or anyone else who can answer this,

In general, when you post Money Factors from the manufacturers financing companies, are they set in stone, meaning, there is no way to negotiate or lower the rates when you go to the dealer?

For Example, is there any negotiating with Honda Financings money factor rates right now (.0026 for the TL) or are they pretty much set in stone?

Thanks you for any insight you can provide.

izzydog

CarMan, (or anyone else contributing)

At this point in the year, would you recommend leasing a 2006 over a 2005? It seems I can get an '05 TL at or slightly below invoice, however its residual would be considerably lower as it is already one year old, thereby making the amount financed higher. It would appear an '06 may be slighly more economical this late in the year as I would be paying for less depreciation.
Additionally, a few days ago someone asked for the November Honda Financing info and you reported residuals of an 06 TL w/o Navi to be 54% and MF of .0026 (on a 36 mo lease @ 15k miles/yr). A link from Cars.com to obtain "ALG values" reports residuals of only 47%?

Lastly, when does the countdown on a car's warranty begin (at assembly vs when purchased)?

Thanks so much.

kperk

I have 3 years left on my lease, paying $ 500.21/mo (24,500 miles), 17,000/yr mileage. I drive 40 miles one way to work, so the cost of driving to work is considerable. I want to get a lower payment (It has a dent in the front bumper by the license plate). Any suggestions on what my options would be in trading it in for either a used or new car.

tkaluzny

What would be the rock bottom lease payment on a 36mo. 15k/yr 2006 TL lease with no down payment (although they're telling me approx. 1100 would be due at signing for 1st month, destination, and all the other initial b.s. they charge you for)? How much would the navigation add per month?

jinva

Yesterday a dealer offered us a zero down 36 month/12k lease of $525/mo for a TL auto w/nav. Using the MSRP of $35,615 (incl. desination), a residual of 54%, and a money factor of .0026, I calculate that the cap cost would have to be below invoice to get to $525 (incl. our state tax of 5%). It's hard to imagine the dealer would come down below that.

We're coming off a 39 month, 12k lease of an Audi A6 that had a cap cost of $40k for the same monthly payment. We expected that getting the TL could get us a lease closer to $500, but I am having serious doubts that it will happen. Lexus is giving excellent rates on the GS 300 at this time. It's difficult to justify the TL, when just a little more money would get a car with a MSRP of $10k more.

foncho

I just leased a TL 06 without Nav.in Tampa, Fl.
Nothing to brag about this transaction but I am posting it for the benefit of other shoppers.
800 down including first month
$490 monthly payments
42 month lease- 12000 miles/year
Protection pack included
Cap cost was 32315, money factor 0.0026, 57% residual
Good luck!

jinva

The MSRP I used in post #131 was in error. I should have said $35,940 (35,325 + 615). To add to the confusion, the dealer listed 21,964 as the residual, which would be slightly over 62%. It reinforces that you really need all of the details to be able to evaluate a lease. Since I thought I knew the residual percentage and money factor, the only variable was the cap cost. But, I guess, I really didn't know what I thought I knew.

We walked on the $525/mo deal. No numbers yet from another dealer. I'm beginning to think we might not have a deal before the end of the month. I'm not entirely confident that the new programs from Honda, to be announced in early Dec., will help any. However, they are getting killed by programs by other manufacturers, so one would think they would get better.

blueline

Does anyone know the typical charge for going over your mileage on a lease?? I've seen .15/mile. Is this accurate?

Thanks.........Blueline

blueline

Looking for opinions on the following deals: 2006 TL with Navi. Cap Cost is $33,820 (approx $1000 over Invoice), $700 out of pocket which includes 1st months lease payment. Lease terms: 36 months: $502 / month (12,000/year), $520 / month (15,000/year). 42 months: $473 / month (12,000/year), $489 / month (15,000/year). These number are excluding sales tax. Are these good deals and which one is the best way to go???

litekits

2006 TL with Navi automatic, 475/month, sale price 33,333. 36 month lease (15k miles a year). Excluding sales tax.

900$ out the door.

I dont know much about all this lease stuff, I just went to 3 different dealerships and put them up against each other until they finally got sick of me

blueline

I think you got a fantastic deal. What city and state did you purchase in? I got a deal similar, but I had to go for 42 months (15k miles/year). 473/month, first months lease plus $200 out the door. Did your $900 include first months lease?

Blueline

klee266

Hi,
I think is way too much for a lease seriously. I or actually dad leased a TL 04 when TL first came out for less than $380 plus taxes and fees for 42 months.

jinva

If I had waited one day, a local dealer was selling for $100 over invoice. Still, we're just glad to have the process over with.

The car: 06 TL w/ navi & auto; back-up sensors, wheel locks
Sales price: $34,500
Lease: 36/12
Monthly: $510
OTD fees: $917 (various undefined doc & acq fees + TL)
Dealer perks: oil changes & state insp. for life (the car's)

We did not negotiate very hard. But we still improved a lot over numbers we had gotten from other dealers.

mnoker

Hello
I was quoted a price for a 06 TL with navi. I just want to know an estimate of a lease for 36 and 48 months with 0 down and 12k a year.

MSRP - $35,325
Selling Price - $32,600
I live In CA and Tax is 8.25%

Thank in Advance!!

ejoyce423

Here is the deal so far. 2006 Acura TL (no NAV) for $410 a month, 32 months, 12K miles a year with $1000 due at lease signing (includes everything out the door). This is about $300 under invoice. The lease is through Haan with a 67% residual and no disposition fee due at lease end. Sounds too good to be true? What else should I be concerned with? This deal is with Open Road Acura of Wayne, NJ. Thanks.

mnoker

Is the 410 with tax?

CarMan@Edmunds

Hi cgatto. When I post a model's lease money factors they are the "buy rate" factors that are being offered by that vehicle's manufacturer through its captive finance company. Dealers are not allowed to lower these factors, though they are often allowed to mark them up to add additional back-end profit to deals. So you can't negotiate to get this car's money factor any lower than .00260, but you need to make sure that is the factor that is being used to calculate your car's money factor so the dealer doesn't secretly mark it up on you. By the way, this car's factor would increase to .00270 if you want to have its security deposit waived.

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CarMan@Edmunds

Hello izzydog. At this point in the model year, the 2005 TL's residual values have probably fallen to the point that it may actually be cheaper, or at lease around the same cost, to lease a 2006 model as it is to lease a 2005 model, even after taking the $500 dealer cash that is available on the '05 into account.

ALG residual values are different than actual banks' residual values in many instances. ALG is an independent company that estimates what vehicles' residual values should be. They are considered to be an industry standard, but every bank that leases its vehicles ultimately sets its own residuals. Many captive finance companies' (banks that are owned by manufacturers) residual values are significantly higher than ALG's. This happens because either the bank feels that ALG's residual value estimate is too low or often because manufacturers want to hide lease support by inflating their vehicles' residual values. BMW is notorious for artificially inflating its residual values.

Your vehicle's warranty will not start until you take delivery of it.

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CarMan@Edmunds

Greetings kperk. I am sorry to say that it is usually fairly expensive to get out of leases well before their scheduled end dates. In order to do so, you need to purchase the vehicle that you are currently leasing from the bank that you are leasing it through. It often turns out that it costs more to do so than your vehicle is worth on the open market. Furthermore, many banks expect consumers who end their leases early to still make all, or at least the depreciation portion of their remaining lease payments. As you can see, this can get very expensive.

You can determine approximately how much it will cost you to get out of your current lease by comparing its purchase price to its value on the open market at this time. You should place a call to the bank that you are leasing your vehicle through to find out its exact price. Once you know exactly how much money it is going to cost you to buy your leased vehicle you need to compare it to its current value on the open market. You can find out approximately what your vehicle is worth by looking up its Edmunds.com True Market Value in the Used Vehicle Pricing section of this site. You also may want to stop by the following discussion: "Real-World Trade-In Values". One of our most knowledgeable community members, Terry, frequents that discussion and he is often kind enough to give community members who give him an accurate description of their vehicles with his opinion on their value. Don't forget to check to see if you are still on the hook for your remaining lease payments. The difference between your leased vehicle's current value and how much it will cost you to buy it plus any remaining lease payments that you are obligated to pay will equal the cost of getting out of your lease right now. You may find that you are better off waiting until you are closer to the scheduled end of your lease to get another new vehicle.

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CarMan@Edmunds

Hi tkaluzny. I would be happy to give you an idea of what sort of lease payment to expect for the cars that you are interested in, however it would be a big help if you would provide me with their full MSRPs and approximate selling prices. You can find pricing information on the 2006 TL by visiting the following section of this site: Edmunds.com New Vehicle Pricing. You also may want to stop by the following discussion to see how much other community members have paid for similar cars recently: "Acura TL: Prices Paid & Buying Experience".

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CarMan@Edmunds

Congratulations on getting your new car, foncho. Thanks for taking the time to share the details of your deal with everyone. Enjoy!

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CarMan@Edmunds

Hi Blueline. Honda Financial Services, Acura's captive finance company, charges and 15 cents per mile over 12,000 miles per year for vehicles with MSRPs that are less than $30,000 and 20 cents per mile over 12,000 miles per year for vehicles with MSRPs that are over $30,000. If you haven't leased yet and feel as though you will drive more than 15,000 miles per year, you can purchase additional miles at a discount at lease signing.

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CarMan@Edmunds

Hey blueline. The payments that you were quoted look reasonable to me, but in order for me to give you a more complete assessment of them it would be a big help if you would provide me with this car's full MSRP.

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CarMan@Edmunds

Hi mnoker. According to my calculations, if you were to lease a 2006 Acura TL with navigation with an MSRP of $35,325 and a selling price of $32,600 through Honda Finance right now for 36 months with 12,000 miles per year, its zero down, pre-tax monthly payment should be around $457. The payment for an otherwise identical 48 month lease should be around $430.

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CarMan@Edmunds

Hi ejoyce423. $300 under invoice is an outstanding price for this car. I am not surprised that the dealer that you are working with is running your lease through Hahn, Acura's is not currently providing any sort of lease support on the 2006 TL.

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jongold

I negotiated a lease on a non-navi TL yesterday at Montgomeryville Acura. Term are as follows:
48 Months, residual value 47%, money factor .00165, selling price of $31,850. Total payment of $466 (tax inclusive) with approx $600 out the door (1st month and a couple of nuisance fees)
The residual seemed a little low, any comments?
Also a question. The invoice price, including $615 destination charge, is right at $31,000. When figuring the residual, do they include the destination charge. Total MSRP incuding this charge is $33,940

kyfdx

The residual is calculated on the full MSRP including the destination charge..

jongold

Thanks for the info. Do you have any idea if the residual % is reasonable? Also, how do these numbers compare to any other recent deals out there? I think I may still be able to get the sale price, and therefore the lease payment, down a bit closer to invoice before going back to them on Saturday