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2013 and earlier-Honda Accord Lease Questions

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi Edgar. Honda is not currently providing any cash incentives on the 2013 Accord. It does have 0.9% to 1.9% financing and a special lease on it though.

    Honda Finance's March 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 .00107 and 59% for consumers who qualify for its top credit tier.

    It's difficult to say when Honda will introduce cash incentives on the Accord. Traditionally it has maintained a decent level of cash support on it, however the Accord was recently redesigned and as a result Honda scaled back on the cash. I suspect that it will return some time later this year, but exactly when is difficult to say.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • kp600kp600 Posts: 5
    Hi folks,

    Thanks for all the great info shared here! It is fantastic!

    My question is: I am currently leasing a 2010 Accord LX and the lease expires soon. Like really soon. Was looking at purchasing it, but lease payments on a 2013 are getting close to payments for an outright purchase. The dealer says they will eat the over mileage (it's a lot) etc. to get me in a new one.

    The question for an expert out there is if I lease a 2013 and give this one back to the dealer, how much does the dealer pay AHFC for it? Do they pay the straight residual, the wholesale cost who exactly is eating the over mileage? Looking at NADA, auto listings etc. It appears the trade in value is about 10k. Retail value is 14kish, and residual is 14k. I am playing with the Weymouth calculator. In this scenario would I put 10k in trade in value and 14k in amount owed? That would add the negative equity to the cap cost of a new one. Or does it work completely different on the dealer end?

    Anyway, sorry for the long post, but this would really help me out, to be able to visualize where I have wiggle room for a deal.

    Thanks in advance for your assistance!!
  • gmanusmcgmanusmc SoCalPosts: 436
    Most likely the dealer is not going to "eat" the over mileage - they will determine the trade in value of your 2010 and roll any negative equity into your new lease or require an appropriate cap reduction (down payment).

    Bill G
  • kp600kp600 Posts: 5
    Thanks Bill! Figured that would be the case. So in this instance the residual is about $500 more than the retail value I am finding searching different sites etc. Should I be targeting the $500 difference on the deal (difference between residual and retail)? Or should I be targeting the difference between wholesale value and residual when negotiating. The difference between wholesale and residual is about $3k. If I present an offer of the difference between retail and residual will I get laughed out of the dealership :)

    I guess that is the last question I had. I have been inputting numbers in the Weymouth tool. What a great resource!
  • trusso69trusso69 Posts: 68
    The wholesale value is not relevant to your situation unless your miles overage is huge. That would be your fault for over-driving the lease. The dealer MIGHT be willing to "eat" some of the miles overage but i doubt they would give you a skinny deal on the new car. Think about it - why would they? You are responsible for the miles - not them. The new Accords are selling well so they are not hard up for sales. If all you have to "cover" is the $500 difference, consider yourself lucky.
  • gmanusmcgmanusmc SoCalPosts: 436
    edited March 2013
    I think you mentioned your lease is almost up - you might want to extend your lease with Honda while you are shopping for your new lease - the extension will be on a month to month basis so you're not locked in long term - this will give you flexibility while trying to work a good deal.

    Now back to the miles - if you are significantly over, you might be in a situation where the negative equity is less than the mileage penalty - if that's the case, it's to your advantage to trade rather than do a lease turn in. I think your best strategy would be extend the lease to buy some time, then do some smart shopping to get your best price on a new lease and you might have to work with a few dealers to negotiate your best trade in allowance on the 2010. Nice thing about Hondas - good resale (even with some miles).
  • trusso69trusso69 Posts: 68
    edited March 2013
    Please confirm or deny the following for a standard 12k/36 month Accord lease:
    1. Current mf for "1st and fees" lease is 0.00107
    2. Current mf for "sign & drive" lease is 0.00097

    Got the info from the weymouth honda site and want to know why the mf is lower for scenario 2. Does this make sense to you?
  • kp600kp600 Posts: 5
    edited March 2013
    Thanks. I am not debating whether or not it was my fault I am over mileage. I realize that it is my fault and I am not going to get the "best deal" available. I am just asking for advice from experts as to my situation. I don't seem to recall in my post where I said it wasn't my fault....
  • kp600kp600 Posts: 5
    Thanks again! I am in a situation where the negative equity is less than the over mileage fee. So I will keep doing some negotiation. Lease ends towards the end of the month. Good advice and I thank you for it!
  • dhyun3dhyun3 Posts: 11
    edited March 2013
    MSRP 22,480
    Price 19,895
    Destination 790
    Processing 189
    Acquisition 595
    Tag/Title 130.50
    Tax 644.07
    .00125 M/F
    293 Monthly Payment
    The residual value of the vehicle is 14,427.40.

    What do you guys think? I live in VA. Thanks!
  • trusso69trusso69 Posts: 68
    ref 5069
    Using your numbers (which aren't that great), i get 263 per month for 36 months. That included adding your tax and tags to the acq fee as part of the cap cost.
    I think the march lease data are 61% and 0.00107 for the LX (12k/year)
    use this easy calculator:
    http://www.leaseguide.com/calc.htm

    FWIW, a really good deal on an LX lease is closer to 250/month inclusive...
    http://pictures.dealer.com/v/vosshondaoh/0643/3ba28b630a0d02b700128cad4b0f8402.j- pg
  • dhyun3dhyun3 Posts: 11
    Thanks for your reply. You mentioned that my numbers are not that great. Would you please elaborate a little more. I checked on truecar.com and it seems like people pay around $20.8k. I saw the invoice price for LX is around $19k and want to push them to give me at $19k or slightly above.

    Do you think I can get a better price on the car? I guess destination, processing, acquisition, tag/titles are something I can't really negotiate right? Thanks for your help!
  • trusso69trusso69 Posts: 68
    edited March 2013
    You first need to understand how they came up with 293 when the online lease calc came up with 263. What did they sneak in that you aren't aware of?
    The weymouth honda online lease calculator is also helpful for benchmarking ANY deal. Their prices are very good but not the best you can do and they are at 20.7 for the LX. I think 20.5 is doable at the moment. How are taxes calculated in VA on leases? The other fees you quoted are reasonable IMO...
  • dhyun3dhyun3 Posts: 11
    Thanks I will ask them. When you said, 20.7, did you mean 19.7 or 20.7 included all other costs in addition to the price of the car?

    I will check out the Weymouth honda.
    Thanks again.
  • trusso69trusso69 Posts: 68
    edited March 2013
    The price of the car should always include destination since that doesn't vary by state (exc. AK, HI). Doc fees vary by state so that must be added. Your initial car quote was 20.9 which isn't bad but i think you can do better.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi trusso69. I can indeed confirm that these money factors are correct. For some reason Honda Finance reduces its money factors on all of the vehicles that it has special leases on by .00010 for zero due at signing leases.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • trusso69trusso69 Posts: 68
    Are all Accords on 'special' this month?
  • dhyun3dhyun3 Posts: 11
    This is for Accord Sport 4 door. I have difficulties in Accord LX. what do you guys think?

    MSRP: 24,980
    Sales Price: 22,165 (included destination)
    Processing, Title, Acquisition, Tax (VA 3.17%), etc: $1500
    Money Factor: 0.00107
    Residual: 60%

    They said "36 months 12,000 miles are 308.15 with 0 down or 263.59 with 1,500"
    What do you guys think? I would like to go tonight to pick it up.
  • trusso69trusso69 Posts: 68
    edited March 2013
    ref 5077
    I used ONLY your numbers in the lease calculator and came up with 278.52 using the CORRECT money factor for zero o-t-d leases, 0.00097
    Using 0.00107 it is 282.39; still much lower than what they gave you.
    Check their math...
  • dhyun3dhyun3 Posts: 11
    Yes, I couldn't get there numbers either. I told them and they tend to discuss when I actually get there. Also, the money factor is 0.00097? Where do I find the number from some reputable sources, so I can tell them to change. Also, what do you guys think about $22,165 on the price (included destinations)?
    Thanks for your help.
This discussion has been closed.