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2013 and earlier-Honda Accord Lease Questions

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  • dglozmandglozman Posts: 177
    Car_man,

    One more thing. MSRP for the car I want (according to Carsdirect) is $22,075 and the selling price is $20,038. I'm not sure to how obtain a residual value and money risk factor. But what should be the numbers I have to negotiate for?

    Thanks,

    Dmitry
  • nvnicknvnick Posts: 50
    Dmitry,

    The 36mo/12k miles yr residual is 59%, and MF = 0.00192, so using your CarsDirect numbers above, the pmt is $258/mo + tax. I think the standard Honda acquisition fee is $595, and security deposit $250, so adding the 1st month payment, you should be able to drive away in your LX/SE with just $1,103.
  • Car_man,

    It's great to see you running this forum and providing so much help to everyone. You were a lifesaver to me when I leased my Pilot in December, and now my wife and I are looking for a 2006 Accord (her 2003 Accord was totaled in Hurricane Katrina). I'm just trying to figure out how to calculate our monthly lease payments based on final selling price and as little down as possible. Because of short supply and high demand in our area, the best we can do on a 2006 Accord SE is $21,000 and we can get an EX for $23,000. We're looking at 36 mo/12k miles yr. I've tried using info you've provided for others here along with Edmunds Lease Calculator to determine payments, but don't seem to be doing it right. Can you please advise? Thanks so much!
  • I am wanting to get some input on leasing a Honda Accord before Oct. 31. My problem is, I am $3,000 upside down in the vehicle I currently own. I see that the Accord EX is being offered on lease for $269 a month with $2,138 due at signing. My question is: Is there any way for me to get my payment at $325/month on a 42 month lease with 15,000 miles, $325 with tax included? Any input or suggestions would be greatly appreciated.
  • Kirstie_HKirstie_H Posts: 10,890
    Hi accordlease,
    One thing we'll need to know before anyone is able to assist you is the tax rate in your area. It can vary widely, and it's important in being able to calculate payments.

    Also, we'll need the full details of the offer. What is the MSRP on the vehicle advertised? What is the assumed selling price? Any additional info you can provide on this offer will assist those who can help calculate a payment for you.

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  • Hi Kirstie!

    I am looking at the EX model Accord. I believe the list price is $23,300 and I am not sure what the actual selling price would be(?). You know Honda does not have a hard time selling vehicles and the dealers around here don't seem to want to deal much on the price of the car. The tax rate is 9.75%. I don't know how to calculate a lease payment to know if I am getting a fair deal. I am not sure what the residual is either. Thanks for all of your help.
  • jagm96jagm96 Posts: 7
    Hi there:

    I was wondering if when the current lease offers end if they continue to make special offers on Honda Accords? I do not quite of the amount I need to partake of the current honda leases. Also, it is my understanding the current leases go to 44 months when the warranty on the car goes to 36 months. I thought it is not wise to lease beyond the warranty on the car. Do I understand this correctly?

    Thanks,
    John :confuse: :confuse:
  • emma4emma4 Posts: 4
    To make a long story short, I leased a 2002 Honda Civic. When the lease was up I decided to buy the car rather than trade it in. I paid in full thinking my daughter would drive the Civic (she's a college student) and would pay me back (yes, I know, I know!). In the meantime I began a new lease on a 2004 Accord EX 4dr. Well you can see where this is going... dear daughter was unable to afford the Civic leaving me with two cars. It's been about 15 months and I still can't sell the Civic although it's in perfect condition, 51,000 miles, and a reasonable selling price (which goes down, down, down by the day). I've tried ebay, 5 local and state newspapers, autotrader, etc. and still only wholesalers contact me offering pathetic amounts.

    Recently with the high gas prices, I thought it might be a good idea to trade the Accord lease and put the Civic back on the road. Well it seems that Honda doesn't allow the trading of leases. Am I right on this? Then I thought I would just park the Accord in the garage til the lease was up (21 months) but can you actually take a leased car off the road? Stop insurance? I know I'll still have to make the lease payments. In another scenario I thought about taking both cars to a dealership and "trading" them in for a new car (which I'd buy, not lease) but again I'm not sure this is the wisest financial move to make. I've already lost thousands in this mess and was hoping you might be able to offer some advise about how I can get back to one car in the least expensive way possible? I could really use some help and would appreciate any advise on how to salvage this mess. Thanks! Confused in RI.
  • akireakire Posts: 2
    Are the manufacturer lease specials such as those advertised on the Honda website a good deal or are they simply a starting point for negotiations?
  • jagm96jagm96 Posts: 7
    Hi there:

    Is there a posibility that you can find someone to take over your lease on the Honda Accord. You might want to check into that and see if you can sublease the Honda Accord that you have.

    :)
  • haefrhaefr Posts: 600
    Honda doesn't give a rat's derriere whether you operate the car or even re-register yearly or not. They defintely have a vested interest in your keeping your lease payments current, though. I wouldn't drop the car insurance, though - these are high desirability vehicles and there's always the chance it could be stolen and end up in a chop-shop to be parted out.
  • I would be happy to help you out, Dmitry. If you were to lease a 2006 Honda Accord LX SE Sedan through Honda Finance right now for 36 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00184 and 59%, respectively. I can't tell you what your lease payment should be on this car without you providing me with its full MSRP (including destination) and approximate selling price.

    Car_man
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  • You're very welcome jagm96. Let me know if you have any other questions.

    Car_man
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  • Ahhhh, thanks for the additional information, Dmitry. I should have scrolled down before I responded to your previous post. OK, now we're in business. According to my calculations, if you were to lease a 2006 Honda Accord LX SE Sedan with an MSRP of $22,075 and a selling price of $20,038 through Honda Finance right now for 36 months with 12,000 miles per year, your zero down, pre-tax monthly payment should be around $256. If you were to roll Honda Finance's $595 acquisition fee into your car's capitalized cost, the payment for an otherwise identical lease would increase to around $274.

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  • Thanks nolafilm. I'm glad that everything worked out so well with your Pilot lease. I'm sorry to hear that your car was totaled in the hurricane, but at least it sounds like everyone is OK and that is the most important thing. You are still missing a key piece of information that is necessary to calculate your car's lease payment, its MSRP (including the destination charge). If you provide me with these cars' MSRPs I would be happy to estimate what their lease payments should be like for you.

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  • Hello accordlease. The fact that you are $3,000 upside down on your current vehicle will make leasing a new Accord much more expensive than it normally would be. You would be better off waiting until you are less upside down to lease a new vehicle. If you still want to lease a new Accord, it is important to negotiate as low a selling price as possible. Negotiate the best selling price that you can before entering the negative equity from your current vehicle into the picture. Once you have arrived at a good selling price, add the $3,000 in negative equity to your new car's price and calculate its lease payment. Honda Finance may not allow you to roll all of your negative equity into your lease. If that is the case, you will have to pay money out of your own pocket to make up for the amount that cannot be baked into your new deal. I would be happy to calculate how much it should cost to lease the new Accord that you want, with and without your negative equity, if you let me know its full MSRP and selling price.

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  • Hi there John. It is difficult to say exactly what Honda's lease program on the 2006 Accord will be like after its current special lease program on it expires on October 31st. It is fairly safe to say though that Honda will offer some sort of special lease on the '06 Accord in November. It's hard to predict whether it will be better or worse than the current program, but if I had to make an educated guess I would say that Honda's November lease program for the Accord will be at least as attractive as its current one.

    Consumers are free to lease new vehicles for however long they want to. Honda is advertising a 42 month lease on the Accord right now because the longer lease term enables it to tout a lower monthly payment. However, if you do not feel comfortable leasing this car for that long you can always lease it for 36 or 39 months. If you opt for a shorter lease term, this car's lease payment will be different though.

    Car_man
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  • Hi emma4. A number of banks, I believe including Honda Finance, do not allow lessees to transfer their deals to others. to be honest with you, unless you got an absolutely amazing deal on your Accord or were willing to sweeten your deal by paying money out of your own pocket, I suspect that you would have had a difficult time finding someone to assume it anyhow. You definitely would be allowed to stop driving your Accord if you want to, but I am not sure if Honda Finance will allow you to stop your insurance on it. Unfortunately, there is not really any inexpensive way for you to get out of your lease early. 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 selling your Civic for what you can get for it rather than trying to get out of your Accord lease. The market for smaller cars, like the Civic, has heated up a little bit now that gas prices are so high. Perhaps you will eventually find a taker for your car.

    Car_man
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  • Hi akire. Most manufacturers' advertised lease payments leave a little meat on the bone so to speak. Dealers would be pretty angry if an advertised lease didn't leave them with much profit. If you live in an area where there is a decent level of competition for your business, there is a good chance that you will be able to negotiate a more attractive selling price than the one that the current Honda Accord advertised lease is based upon.

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  • emma4emma4 Posts: 4
    Thank you for your thoughtful response to my situation. I've already gone through buying out the lease on the Civic, including having to pay state sales tax for a car that's not even being driven, and will never go that route again. Someone else on the forum mentioned the possibility of finding someone to assume the lease. Do you know what that entails? What happens at the end of the lease, am I still the responsible party, etc? In the meantime, I'll try to focus on selling the Civic again.

    Thanks for your advice!
  • emma4emma4 Posts: 4
    Thanks for the feedback... Once you put it into perspective in regard to the insurance, it makes sense to keep it insured. I hadn't thought about it that way. Sure wish there was another way out of this... but it looks like my focus needs to be on selling the Civic and continuing my Accord EX lease.

    Thanks again.
  • I am not sure where you are located but check and see if there is a Carmax near you. They will give you an offer to buy your car which is usually a fair deal. www.carmax.com.
  • emma4emma4 Posts: 4
    I just checked and the closest Carmax is in Maryland... I live in Rhode Island. Thanks for suggesting this though. emma4
  • Hi Car_Man,

    The car I wish to purchase lists for 22,500. What do you think I could get them down to? Also, I would like to add a spoiler to that. Please let me know what you think my payments would, or should be at (ballpark figure). Thank you for all your help on this board.
  • I am a currently leasing a 2003 accord and the lease expires this month. I am looking to lease a 20064 dr Accord LX Automatic in Maryland to replace my current lease. With an MSRP in the neighborhood of 21,000 and up front payment of only the first month's lease fee and title, registration fess, etc. (total of about $500 out of pocket at pick up) what should I expect as a reasonable monthly paynment including tax?? Also since I am a repeat leasee does honda ever waive aquisition fees, security deposits, etc.??
  • nvnicknvnick Posts: 50
    Based on October lease rates (MF 0.00192 & either 59% or 57% residual), a 36mo/36k mile lease is $254, or $265 for 45k miles. I'm assuming $250 over invoice for the purchase price. Honda has waived the security deposit in the past for returnees, but I doubt they waive the acqusition fee. Worst case scenario, the November lease rates stay the same.
  • I am wanting to lease a new Accord EX-V6....about 27300 + destination charges. I want a 3/36 with no money down. What should I expect to my monthly payments to be. I am currently leasing a 2003 EX 4 banger, but leased that when I lived in NYC,

    Any help is appreciated.
  • does the dealer have the ability to alter the money factor or residual or are these values set by american honda finance. along those lines, the dealer is telling me that the money factor is .00184 and the residual is 55%. are these accurate/reasonable?
  • I believe I have a handle on calculating lease payments but there is one thing I still do not understand--how to calculate the sales tax into the monthly payment. When using the Edmund's Lease Calculator, the sales tax does not show up in "total amount to be financed" line at the bottom of the calculation page and the "total to be financed" is only the selling price plus the aquisition fees. tax is figured in but I can't tell how--it does not appear to involve the entire amount of sales tax. when my dealer calculates the payment his "total to be financed" includes all the sales tax based on the selling price (5% in Maryland)and obviously results in a higher monthly payment. can anyone clarify how to figure in sales tax? Am I responsible for paying the entire amount of sales tax despite the fact that I am only leasing the car for 3 years?
  • kyfdxkyfdx Posts: 29,224
    The sales tax on leases varies from state to state.. I've heard that MD does tax the entire price of the car, but you should check with your local DMV...

    If your dealer isn't calculating it correctly (which is doubtful), then Honda Finance will kick the paperwork back to him..

    regards,
    kyfdx
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