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2013 and earlier-Honda Accord Lease Questions

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Comments

  • huskerfan5huskerfan5 Posts: 163
    anthony, you need to understand how leasing works or no one is going to take you seriously. Read this forum and the prices paid forum. Keep in mind that in NY, you will have about $1K in cap cost for Honda Finance fee, doc fees and registration. If you use the Jun money factor found in this forum with your residual and include the $1K as I mentioned, and take the best deal for an EX-L found in the Prices Paid forum, you won't come anywhere near $250 if you aren't putting anything down. Use the calculator, use a price that you are comfortable with, arrive at the monthly cost using 36 equal monthly payments (no extra money at inception). Then use that amount for your negotiations and don't let the salesman change the parameters of what to include or exclude from the lease as that will make it difficult to compare scenarios.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi yoyolen. Honda Finance's June buy rate lease money factor and residual value for a 36-month lease of a 2013 Accord LX 4-cylinder (they vary by trim level) with 15,000 miles per year are .00089 and 58% for consumers who qualify for its "Super Preferred" credit tier.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • pjny77pjny77 Posts: 12
    I have the same EXACT question for the group. I'm looking at a 2013 Honda Accord and possibly the Acura TSX, but wasn't sure how much wiggle room there is with the manufacturer lease offers.

    I'm comfortable with the terms, but was wondering if there was more room to negotiate. I'm sure they are basing their numbers on MSRP, not invoice.
  • huskerfan5huskerfan5 Posts: 163
    It is extremely rare when a manufacturer lease offer is the best deal you can make. They generally build in plenty of profit for the dealer. You negotiate the lease cost by negotiating the price the leasing company will pay for the car and applying it to the lease formula that includes money factor, residual, etc. The price should the same as if you are purchasing the car yourself. After all, the dealer should make the same profit whether he sells the car to you or to Honda Finance. When you see the manufacturer's offer, they have come up with a price that essentially no dealer would turn down. You can certainly negotiate a better price.
  • marbetd77marbetd77 Posts: 13
    My dealer contacted us for an early lease buy out (ends May 2014). Currently we pay $365.62/month for accord EX-L V6 with Navi. Put zero down. I have the June money factor and residual value (.00089 and 58%) plus there's the possibility of $500 flex cash. Any idea if July would have better numbers, and if the flex cash would be available?
    .
  • lavjrlavjr Posts: 6
    Hi Guys,

    Is this a good deal please?
    2013 Honda Accord EX Sedan
    Selling Price 22605
    American Honda Finance 790
    Cash Difference 23395
    W.T.& L.A 6.5
    Electronic Fee 89.95
    Dealer Fees 699
    Total Taxable Amt 24190.45
    Lemon Law 2
    Dade Cty Tax 50
    Sales Tax 1,451.43
    Tag Fee tbd
    Sub-Total 25,693.88
    $315.00 tax in per month.
    36 months
    12 miles per year
    *$0.00 due at signing*.
    residual for the 2013 Accord EX is 60. Money f actor is :0.00089

    Thank you,

    Luiz
  • huskerfan5huskerfan5 Posts: 163
    I'll let others talk about price but they bumped up the $595 Honda Finance Fee.
  • jgstaffojgstaffo Posts: 1
    I just took in my 10 year old toyota sienna mini-van, which has about 185,000 miles on it in to see how much I could get for a trade in on a 2013 Accord LX Sedan. The lease offer was $210 a month with a $500 down payment. My trade in was valued at $2300 which was taken off of the monthly payment as well as the down payment. I believe it was originally a $2,000 down payment with no trade in so $1,500 was taken off of that. Is this a good deal and is it true that dealerships offer better prices as the month comes to an end in order to get sales numbers up? Any comments or weigh in here would be great. Thanks!
  • huskerfan5huskerfan5 Posts: 163
    What exactly is the deal? Is it you give him your Sienna and $500 and you then pay $210 per month or do you give him your Sienna, another $500 for the down payment, $595M for the Honda Finance fee, more cash for his documentation fee, your state's title/registration and, of course, sales taxes. In a typical lease, every $1,000 you pay up front lowers the payment by about $30, so your $210 + cash + trade is equivalent to $304. That is not a good deal. If it's the second case, you are really being taken to the cleaners.
  • gmanusmcgmanusmc SoCalPosts: 436
    I see your excellent posts where you try to explain leasing calculations to folks in the hopes of clearing up all their confusion and it is evident you have a firm grasp on the mechanics of leasing. What I can't understand is why shoppers don't just do their calculations based on no money (zero dollars) due at signing. That way if you have a target payment that you must reach, you just adjust the amount at signing, bargain for a better selling price (and/or better trade allowance if applicable), and make sure you are receiving the best money factor the dealer can offer. Jgstaffo's deal is a prime example of how a dealer can confuse the shopper by throwing all those numbers into the pot. I wish folks could just simplify and control the process - I know - I'm preaching to the choir.
  • huskerfan5huskerfan5 Posts: 163
    Thanks, you nailed it. Get the money factor and residual, take your target purchase price and add all the fees and TTL, throw it into a calculator and come up with 36 equal payments, then negotiate off that.
  • Hey guys,

    Love this forum. Have been reading it quite a bit, wish I saw it on my last lease! I never thought negotiating price first and then calculating lease price off that is the way to do it...well because dealers told me that it's not how lease works. Not it makes sense what you preach and I know better!

    So I currently have Honda Pilot EX lease for which ends January 2014, I wanted to get into Accord Sport or EX Manual. Is now a good time to start shopping for a lease and when is a good time to start really buying? I always though August/September. If timing is good, is 6 month turn over on a lease to get into new one a doable thing?

    What do you think about TrueCar.com? It seems like a good tool and the prices they show are around 10% lower than MSRP.

    And last question, is residual value calculated off MSRP or selling price of a vehicle?

    Thanks!
  • huskerfan5huskerfan5 Posts: 163
    Generally speaking, Aug and Sep may be good times to purchase a car but since you need to factor in money factors and residuals for a lease, you can't necessarily say that's the case if you are leasing. Residuals drop during the year and the money factor is a product of economic conditions and marketing strategy. Makes no sense to start shopping for a lease now. Money factors and residuals are set monthly, so it wouldn't even make sense to shop for a lease today unless you make a deal before Jul 1.
    Early lease terminations, unless there is a program by the manufactures, generally won't be in your favor.
    Residuals are based on MSRP.
    Tried using Truecar once. Never got any dealer replies. Based on what I've seen in forums, Truecar changed their pricing structure and deals are no longer as favorable. Regardless, you should negotiate up from dealer cost, not down from MSRP. You can price an Accord at $100K and take 50% off MSRP and it would still be a terrible deal.
  • gpb59gpb59 Posts: 69
    Car man, can you give me July (if you have) or June money factor on Accord EX-L with nav for 4 cyl and 6 cyl? thanks
  • gpb59gpb59 Posts: 69
    with 10k miles or 12k miles per year
  • camokatucamokatu Posts: 19
    edited July 2013
    CarMan,

    Are residual and money factor for Accord Sport Manual with 12K miles per year for July available?

    Thanks!
  • camokatucamokatu Posts: 19
    Thanks huskerfan5,

    Sorry, forgot my other login and don't remember email I used :confuse:

    When you say "Regardless, you should negotiate up from dealer cost", how can I find out what dealer cost is? As I understand there are number of things at play here - holbacks, hidden incentives, etc.

    I see that residual for Sport is 59%, I used Weymouth Honda lease calculator. I am trying to time when I will lease this vehicle, so when, if possible can I expect this number to go to 58%?

    Lastly, I thought that 2014 models are available starting August/September, but one of the dealers told me it's November/December, is this true?

    Thanks!
  • huskerfan5huskerfan5 Posts: 163
    I'll answer in reverse order.
    Based on a look back in this forum, both the carryover 2012 and the redesigned 2013 were introduced in Sep so I would expect the same.
    As for residuals, I suggest you do some detective work and go back through old posts to determine when Honda has traditionally changed the residuals and maybe you can predict.
    You can buy a report from Consumer Reports where they claim to show dealer's cost. Of course, with incentives based on sales, not even the dealer actually knows today the final cost of the cars on his lot. My point was the MSRP's are meaningless so negotiating down is not the optimal way to go.
    Write down your new username so you don't develop multiple personality disorder :)
  • camokatucamokatu Posts: 19
    edited July 2013
    Thanks huskerfan5, I'll try to remember this one :blush:

    Reading through posts I see "flex cash" mentioned. What does this term mean?
  • camokatucamokatu Posts: 19
    I've read enough posts and articles to see that dealers sometimes charge made up fees, or inflate real fees during leasing. Is there a list or perhaps someone can reply with one of the legitimate fees that one can expect to see during lease negotiations and their range values.

    Thanks!
This discussion has been closed.