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2013 and earlier-Honda Accord Lease Questions

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  • blaneblane Posts: 2,017
    wayde,

    Don't trade your car. Sell it privately. You'll probably come out at least $1,000 ahead.
  • Would I come out better financing this car for 3 years at 5.75 percent, as opposed to leasing it from Honda Finance for 3 years 12K per year and then buying the car from Honda Finance. Lets assume I am able to get Edmunds TMV deal.

    thanks, rdiamond
  • jagm96jagm96 Posts: 7
    I was wondering if it was better or to lease a 2005 or 2006 at this time. Can I get a better deal on leasing a 2005 than a 2006 at this time. I am looking at keeping my monthly payments around 225.00 and realize I cannot buy new. I would like to lease a Honda Accord for 15,000 miles per year for 2 - 3 years. I will consider longer lease if I have to. Also are there any residency requirements with Honda Leases?

    I live in Southern NJ near Cherry Hill, NJ.

    I am totally new and novice to leasing and am now doing research.

    Any information would be helpful!
    Thanks.
  • dpavdpav Posts: 19
    Car_Man - thanks for all your help with these forums :

    Can you help me calculate the tax on lease payments. My calculations jive with yours - but once I start talking final monthly payment with some dealers - I have no way of knowing if the "extra" in my payment is just tax or tax plus some fees. The HFA lease agreement does not break out tax seperately and I dont know how to back into the calculation. Thanks - I live in Ohio (6.25%).
  • You're very welcome, wayde. Good luck.

    Car_man
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  • Hi rdiamond. Honda Finance's current buy rate lease money factor for the 2006 Accord EX is .00192. This is equivalent to an interest rate of around 4.6%, which is better than the rate that you were quoted to finance this car, but not much. Once the additional costs of leasing are taken into account, such as Honda Finance's $595 acquisition fee, are taken into account the interest rates are almost a wash. If you enjoy the convenience that leasing provides then there's nothing wrong with leasing this car, but you really won't come out much ahead by leasing and then purchasing at lease-end over just financing from the beginning.

    Car_man
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  • Hello jagm96. Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

    Honda's lease program is more attractive on the 2006 Accord than it is on the 2005 model right now. Not only are the 2006 model's residual values higher, but its money factors are lower. Honda is providing dealer cash on the 2005 model that will help you to negotiate a lower selling price, but I don't know if this cash is enough to make up for the difference in these cars' lease programs. I suspect that it is not.

    I'm not sure what you mean by asking if there are any residence requirements with leases. If you are asking if you are allowed to move with a leased vehicle, the answer is yes, most banks allow lessees to move anywhere within the continental U.S. with their leased vehicles. I would be happy to give you an idea of what it will cost to lease the Accord that you are interested in if you let me know the exact model that you want, as well as its full MSRP (with the destination charge added in), and approximate selling price.

    Car_man
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  • You're very welcome dpav. I am not positive that I know how sales tax is calculated on leased vehicles in your state. I believe that I have heard Ohio taxes the entire selling price of leased vehicles. If this is indeed the case, leasing is expensive in your area. You would have to calculate sales tax on your car's entire selling price and then pay it at lease signing or add it to your car's capitalized cost before calculating your monthly payment.

    Car_man
    Host
    Smart Shopper / Prices Paid Forums
  • dglozmandglozman Posts: 177
    Car_man,

    Would you be able to provide me with the info on the lease for this car. I'm looking at 36 month lease 12K miles. Assuming I will pay TT&L upfront, what my monthly payments should be? I understand that in addition I have to pay $595 bank also which I would like to incorporate into payments. I live in NJ so taxes are 6%.
    I was thinking to pay around $1000 out of pocket ( to cover TT&L) and to have payments around 250 a month. Is this realistic? too high? or too low?

    Thank you very much in advance!

    Dmitry
  • jagm96jagm96 Posts: 7
    Dear Car_Man

    I wanted to thank you for the information you suggested I read. I deeply appreciate it. I am going to go read the information you suggested. I will check out the local Honda sites and see what they currently have in stock. I was looking at the lease sales on the 2006 Honda Accord SE for 239.00. But I see I need to read more and find out more information for you. I know I just want something simple, but it must include AM/FM/CD audio system and intermittent windshield wipers. I would like the exterior to be blue and the interior to be gray cloth interior.
  • 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.
  • 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.

    kirstie_h
    Roving Host
    Host, Future Vehicles & Smart Shopper discussions

    Need help navigating? kirstie_h@edmunds.com - or send a private message by clicking on my name.

  • 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.

    :)
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