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2013 and earlier-Honda Accord Lease Questions

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Comments

  • delta737hdelta737h Posts: 603
    victor23,

    You're absolutely right. The state does regulate the maximum amount dealers can charge for the doc fee and, currently, that amount is $250. Some dealers mislead consumers when they say that the state "mandates" the $250 doc fee... nothing couldn't be further from the truth.

    John
  • delta737hdelta737h Posts: 603
    jimfireftr,

    Accounting reasons? That's got to be a first! They should be able to account (itemize) for every item and every penny in the deal. Sounds like non-sense to me. I wouldn't let them get away with that!

    John
  • gerbiesgerbies Posts: 5
    Thanks, Victor. I've since gotten more information about this potential deal. You're right: my car is not even close to being worth the payoff. My car has a few issues not helping the matter: one mismatched tire, many scratches, and a paint scrape on the back and front bumpers (one would have been covered by insurance). The dealer confirmed the car is worth a trade-in of $14500 with the issues and low mileage. As shared, the payoff is $15664.

    I got the internet quote from TrueCar.com, so there wasn't much haggling. The salesman said something like I "backed" into a good deal, because I had already gotten a low internet price and they couldn't recover the trade in loss in the price of the car. You're right about the availability of this model. I called or e-mailed every Honda dealership within 100 miles and almost all of them didn't have the vehicle and weren't expecting to get any. Some offered to order one, but they couldn't match the low price I was already offered.

    Here's the final deal being offered:

    2010 Honda Accord EX V6
    MSRP $27555
    Vehicle Offer-$23200 ($2101 below invoice)
    Pay off trade completely (even though worth below payoff)
    3.9% APR
    $3000 down
    OTD payment for 60 months - $413 a month

    This seems like a good deal...thoughts??
  • victor23victor23 Posts: 201
    The price looks good to me. You may be able to qualify for 1.9% financing. Dealers often jack up rates and keep difference for themselves to make up for lower sale price.
  • gerbiesgerbies Posts: 5
    Thanks, I thought so, too. I was advised there's either dealer cash or the 1.9%. The price we were given includes the cash. Can you get both?
  • toyoman8toyoman8 Posts: 65
    edited June 2010
    no you can't get both, it's either low APR or cash back, but what you should be able to do is to get Cash back amount OFF the agreed $23,200 price.

    In another words is the agreed price is $23,200 and the cash back amount is $1000, you final price should be $22,200

    Now, if its dealer cash which is different from cash back,( b/c dealer cash is when a dealer throws an incentive and cash back is incentive from manufacture)
    then you could get both APR and dealers CASH
  • victor23victor23 Posts: 201
    I don't know all particulars of the current offer, but usually it is either-or when both cash and low interest are offered by the manufacturer, I agree with toyoman8 here. Now, can you discount the cash offer from the agreed price? It probably depends on what is meant by "agreed price". In my own case (and as I understood, in your case too), the scenario was like this: I ask, give me your very best bottom-line price. Dealer answers: our price is X for low-APR financing, Y for cash payment or alternative financing, Z for lease, and this includes all existing incentives. I knew what the incentives were, and his figures made sense to me, so I closed the deal. If you, however, negotiated best price before incentives, then the things are different (see toyoman's post).
  • mookie14mookie14 Posts: 252
    Does anyone have any experience with how Honda allows their customers to pay on the over mileage fees after turning in a lease vehicle? I'm not sure if they will expect everything all at once or will they allow the customers to make payment arrangements.

    If you know, please share.
    THANKS!
  • biswajitbiswajit Posts: 6
    I came back from the dealer this evening, after having tried in vain to finalize on a deal. I have a score of 760+, but a "thin credit" file of just 2 years 4 months, and 3-4 credit cards with about average limits of 5-6k on each.

    AHFC apparently considered my application to be "Standard Tier" instead of "Super preferred" or even "Preferred" tier.

    I had negotiated 0 down and 35 payments of $249 for the 2010 Accord EX sedan Automatic before credit check and loan application. However when the application came back from AHFC, I was finally offered 0 down and 35 payments of $331 dollars. Residual was 15504 and MF of .00364 !!!!!!

    Hope that helps...
  • victor23victor23 Posts: 201
    Something doesn't add up. I don't ask how do you manage to get 760+ after just 2 years 4 months, but if you do, the person with this score should have been "no questions asked". Are you sure it is Honda who is inflating your MF and not a dealer? I had a somewhat similar story last months: negotiated excellent sale prices, but couldn't get decent MFs even before a credit check. One of the dealers was honest: he explained that at this sale price they are not going to give me a "lease buy rate" (aka Super preferred) whatever the score because they need to make a profit.
  • toyoman8toyoman8 Posts: 65
    edited June 2010
    it's ok. Just relax and Go home, and wait, they will call you for another 3 weeks with much better offer each time 'till you tell them you bought another car already :)))

    So wait and choose the best deal
  • biswajitbiswajit Posts: 6
    Well, I think I did all the right things right from day 1, and hence the score. I had checked the score even an year back, when I had just 1 year 4 months, and it was in the 740's. But that is entirely another discussion.

    However, I am not sure if it is the AHFC or the dealership inflating the rates. You might be absolutely correct about the dealer hiking the price up. Now, as much as I do not want to. I am thinking of visiting the Toyota dealerships. I need the car, but do not fancy Toyota's as much. :(
  • biswajitbiswajit Posts: 6
    Thank you for your advice... I will keep the forum updated about what finally happens.
  • See this is what I was trying to find out, if I'm considered regular tier, whats their money factor?

    But I can't imagine it would drive up the price by almost $100 a month.
  • victor23victor23 Posts: 201
    I understand. I researched quite many cars this spring. I hate to say it, but I liked Camry more than the last generation Accord. Actually, there are so many really good sedans on the market right now. In this price range my top picks would be Altima and (I hate to say it even more) even Sonata. (Sonata is, probably, the most practical choice currently. If only not for her face.)
  • Standard Tier MF for Honda I believe is .00314... and one change in the tier shouldn't change your payment by almost $100... It sounds to me like they jacked up the selling price... I would keep shopping your offer around to other Honda dealers...
  • ejv207ejv207 Posts: 12
    edited June 2010
    Hi Carman,

    Would you please provide the money factor and residual rate for the month of June on a 2010 Honda Accord 2.4 LX Sedan w/AT? The term I am looking for is 36 months at 12k miles per year. I am located in Central NJ. I understand they have different MFs for their credit tiers. Could you give me the numbers for Preferred and Super Preferred? Thanks!
  • angus215angus215 Posts: 1
    Does anyone know what the money factor will be for an Accord after July 6,2010?
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    You're welcome, gperr. Congrats on your new ride. I've had a number of Accords myself. They're great cars. It's hard to beat $300 per month for a car that's loaded with options like it is.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi Jit . The dealer invoice price of a 2010 Honda Accord Sedan EX with an automatic transmission is $22,331. If we subtract the $1,200 dealer cash that Honda is providing on this car from that, the invoice price drops to $21,131. That's right in line with the price that you were quoted, so you're getting a very good deal.

    Just make sure that the dealer uses Honda Finance's buy rate lease money factor to calculate your monthly payment and you're in business.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
This discussion has been closed.