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2013 and earlier-Honda Accord Lease Questions

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Comments

  • camokatucamokatu Posts: 19
    I've never dealt with these companies, http://www.easyleasingdeals.com/ for example, but was wondering if anyone had experience with these types. How are they different from dealers? What makes their prices cheaper?
  • huskerfan5huskerfan5 Posts: 163
    They may have relationships with dealers where they can buy the car for less than you can. They also may charge higher disposition fees and have tougher wear and tear standards. I did a lease with a third party leasing company in 1998 and will never do so again. Unless someone told you about their positive experience about a specific company, I would stay away.
  • camokatucamokatu Posts: 19
    edited July 2013
    Still deciding when I should lease Accord. I was waiting for new programs from Honda that started today, but looks like there aren't any programs for leasing yet. Also saw this post which seems to make sense and makes my decision even harder to make. Will higher residual value of the vehicle make up for higher price of 2014 models? How will money factor play out? Should I wait until end of July or wait for end of August/September to make my move? Lastly, are all these things that I am preoccupying myself with only makes $5-10 difference on the final lease price?
  • huskerfan5huskerfan5 Posts: 163
    Re-read post 5315
  • camokatucamokatu Posts: 19
    edited July 2013
    Yes, that the post I was referring to. At the end of June I had the following numbers for 2013 Honda Accord Sport Manual for example from Weymouth Honda:

    • residual: 59%

    • MF: 0.00089

    • price: $21506.05

    • lease price: $265.63 (includes tax)

    When I checked today it is:

    • residual: 58%

    • MF: 0.00075

    • price: 21,490.43

    • lease price: $266.69 (includes tax)

    This shows how residual affects final price even though MF and sales price have decreased. So what I am worried about here is that as I move to August and September, available 2013 models especially manual will become less available (hard to negotiate price?) and 2014 models will just start showing up, making negotiations hard as well?

    While the numbers above the difference is only $1 per month, but as I said with lack of cars I might have hard time getting a good deal. Thoughts?
  • huskerfan5huskerfan5 Posts: 163
    The biggest factor is the money factor. No way to predict, it's the economics dept vs the marketing dept.
    A point drop in the residual would be offset by about a $250 decrease in price. That's not going to kill you if you guessed wrong by a month.
    Why don't you check out the board last Sep and see how residuals changed. This year's change should be less since it isn't a redesign.
  • camokatucamokatu Posts: 19
    edited July 2013
    OK, thank you for your help.
  • nirvana3nirvana3 Posts: 1
    Carman can you please give me the MF and residual for Accord EX-L w/Navi and w/o Navi. Also if there is any incentives offered this month. Thanks
  • syrsyr Posts: 10
    Is it possible to lease LX for 3 yr/12k 0 drive off $220 a month?
  • camokatucamokatu Posts: 19
    There are many factors at play in setting lease price of the car: sale price, residual value, money factor, state you are in (tax, registration fees). Quick look at lease calculator from Weymouth Honda shows around $270/mo with sign and drive.
  • pacinpelopacinpelo Posts: 142
    CarMan (or anyone)... Is Honda providing any cash on 2013 Accords (specifically EXL V6 trim)?
    It looks to me that inventory is bloated but not many V6s around
  • bigal77bigal77 Posts: 9
    edited July 2013
    I leased my wife a 2013 EX-L 4 cylinder sedan with navigation last night using the information gained from this forum. I showed the dealership the Weymouth Honda website details for the car and told them to match it. They actually did a little bit better. Just like my previous 2 leasing experience from non-luxury brand dealerships they tried playing some funny business with numbers. I told them I was putting $2000 down and I go sign the paper work and it says I am putting $2500 down at singing. They then said they were giving me $500 flex cash. It didn't say this anywhere on the contract so I made them write it in and initialize it. Bottom line is I put $2K down any payments are $299.07 a month for 36 months in Virginia where the tax is 4%. As a side note the Virginia sales tax on vehicles went up from 3% to 4% on July 1st. According the salesman the 4% sales tax is only paid on the amount the car depreciates during the lease. This of course wasn't the way they calculated the tax on the buyers order.

    Another thing I found interesting is the dealership had Honda summer clearance signs all throughout the dealership. I don't see this on Honda's website anywhere. They said the signs are up a little bit early. Makes me wonder if the offers are going to change next week? The current offers on Honda's website are said to last till Sept 2nd. Would Honda change the offers in the middle of a current incentive period? Anyone have any insight into this?

    Here are the details of my lease:
    Agreed upon value of the vehicle: $27050 (according to the honda contract)
    $499 processing fee (listed on separate buyers order)
    $1079 sales tax (listed on separate buyers order)
    $42.75 tags and title (listed on separate buyers order)
    This adds together to $28672.02
    $2200 cap cost reduction ($2500 down - $500 flex cash + $299.07 first month payment)
    Residual value: $16931.75
    rent charge: $1173

    According to the Honda contract the gross capitalized cost is $28725.27
    This of course doesn't match gross capitalized cost I calculated from their individual items listed on the separate buyers order. It is pretty aggravating that their numbers don't match up between the Honda contract (no breakout of the taxes and fees on the Honda contract) and the separate buyers order. It seems like the dealer just pulls numbers out of the air for the Honda contract to make the monthly payment workout. Oh well. As long as they don't call me in to sign a modified contract I am happy with the deal I got.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi gpb59. Honda Finance's July buy rate lease money factor and residual value for a 36-month lease of a 2013 Accord Sedan EX-L 4-cylinder with 12,000 miles per year are .00075 and 59% for consumers who qualify for its top credit tier.

    The numbers for an otherwise identical lease of a Sedan EX-L V6 are .00075 and 56%.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi camokatu. Honda Finance's July buy rate lease money factor and residual value for a 36-month lease of a 2013 Accord Sedan Sport with 12,000 miles per year are .00075 and 58% for consumers who qualify for its top credit tier.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    FlexCash means that Honda dealers were given a pool of funds that they can apply towards leases of vehicles through Honda Finance. Dealers can use $500 worth on leases of a '13 Accord if they so choose. Try to take this cash into account during your negotiations.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi nirvana3. I just mentioned the lease program for the Accord Sedan EX-L a few messages ago. Please check there for the information that you are looking for. Adding navigation knocks 2% off of the car's residual values, but has no impact on the money factors.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hey pacinpelo. The only cash that's out there on the Accord is the Flex Cash that I just described.

    They did get really aggressive with the Coupe leases if you're interested in that though. Its lease program is different than the sedans'.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • camokatucamokatu Posts: 19
    Thanks Car_man!
  • camokatucamokatu Posts: 19
    Can you elaborate on "really aggressive"?
  • mnz1999mnz1999 Posts: 12
    Hi everyone, I just got lease quote on 2013 Accord EX. I am wondering what do you guys think.
    MSRP 26195
    36 Months and 24K miles a year ( I drive a lot)
    35 Monthly Payment of $368 no money down or due at signing (not even first payment). everything was rolled into $368 (Tax 8%, DMV, all fees and first Payment).

    I didn't get the break down yet and i checked it with weymouth honda and it seems to be aligned with it. what do you guys think is it good?

    thanks
  • mnz1999mnz1999 Posts: 12
    I need to amend the payment of 2013 Accord EX i posted earlier. $368 does not include the 8% tax (miss communication between myself and dealer). i got a revised quote of $375 a month only 35 payments
    zero down (just sign and drive)
    36 Months and 24K miles a year

    Car Man please let me know how's the deal. i need to take the car by tomorrow. other members your comment and opinion are welcome as well.

    thanks
  • dandydan9dandydan9 Posts: 20
    Prepaying for that much additional mileage is a mistake.

    If the car is stolen or otherwise totaled, you will not benefit
    from that prepayment and the insurance company will not reimburse
    you for the additional monthly payments you made.

    It is similar to prepaying the sales tax in total up-front instead of including it
    in the monthly payment.
  • huskerfan5huskerfan5 Posts: 163
    The lease payment is based on the capitalized cost of the car (sales price, lease inception fees, DMV fees, doc fees etc), the money factor and the residual.
    If you provided those details, we would be able to provide comments. You don't negotiate a lease based on the monthly payment, you obtain the money factor and residual and lease inception fees and, then if they are reasonable, you negotiate the purchase price just as if you would be buying the car. Put all the numbers into the lease formula and then you understand what your monthly payment represents.
    The fact that this is a 24K miles/yr lease makes it impossible for us to even guess what price the dealer is selling the car since none of us have probably ever seen a residual percentage for such a lease. I can't tell if he is charging under invoice or over MSRP. Even understanding your DMV helps since fees can vary widely by state.
    Go back to the dealer and get all the details and then post. Rent a car for a day if you have to but don't blindly enter a lease because the payment fits within your budget unless you don't care that the dealer makes a huge profit at your expense.
  • huskerfan5huskerfan5 Posts: 163
    dandydan, did I miss something? He's doing a sign and drive with nothing due at signing.
    I agree with your position 100% and always do my deals with 36 equal monthly payments and nothing else paid at signing. He's not even paying the first month payment at signing.
  • dandydan9dandydan9 Posts: 20
    True, prepaying up-front for the mileage outside of the monthly payments would be the worst possible thing to do.

    I just do not like to pay for something I may not benefit from in the event the vehicle is totaled prior to lease expiration.

    Insurance plus gap will cover the termination of the lease if the vehicle is totaled, regardless of the mileage on the vehicle at that time.

    In that case, you would have been paying for the extra12k mileage annually for naught.
  • km38iakm38ia Posts: 16
    I just leased my 4 door accord ex-l 4 cy.
    sticker was 28795.
    36 months/15,000 miles a year
    0 sign and drive. didn't pay first month.
    335 plus tax.

    i think it was a pretty sweet deal. wish they would have thrown in a cargo net!
  • gmanusmcgmanusmc SoCalPosts: 436
    Dandy - I guess he could bet that he will total the car during his lease term but look at it this way - if he really does drive that many miles, he only pays about 8 cents a mile if it's cooked into the lease in advance and 15 or 20 cents a mile if not and he ends up 36,000 miles over at lease end resulting in up to $7200 mileage penalty. If he cooks those miles into the lease, he pays about $2880. If he actually drives those miles and the car is totaled or stolen, he really hasn't lost anything - he's just paid for his actual use of the vehicle. Now if he pays for those miles and doesn't use them - that's different - but even in that case, he will have a reduced residual and might realize some equity on a trade or private sale.
  • mnz1999mnz1999 Posts: 12
    thanks for the reply...waiting for the dealer to get more details.
  • mnz1999mnz1999 Posts: 12
    this is exactly i had in my mind. Yes I do drive 24K miles a yea... I could have bought the car I guess around 23000K plus 8% tax 23840 OTD and at the 1.9% interest rate for 60 months the payment would have been $435 (rough numbers). another scenario if the OTD price would be $24000 payment = $419 vs lease $375 (only 35 payments). But i am not planning on keeping the car for more than 3 years even if i had bought it so with high mileage that i drive the next dealer would defiantly ding me on my trade...that was the thought process behind lease vs buying (not sure how good assumptions i made)
    I am waiting for more details from the dealer to share with you guys (this will help future consumer with high mileage lease).

    thanks for your input so far
  • camokatucamokatu Posts: 19
    What state are you in and what dealership?
This discussion has been closed.