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2013 and earlier-Honda Accord Lease Questions

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Comments

  • sdiver68sdiver68 Posts: 119
    Yes, of course it can be a good deal to buy out a lease. If it is worth more than the residual, then it is always a good idea to buy it out, then resell it even if you didn't want to keep it. If you have 14,000 mile on it, and you paid for say 36,000 miles worth of depreciation, then most likely you ARE coming out ahead buying it out. Put it this way, if you went looking for an 03 Accord with 14K miles, would you expect to pay more than your buy out? Most likely, yes!

    FWIW, some people work out a deal with the dealer to get it certified. If you are worried about warranty work (and I would not with a 3yr old Honda) then perhaps you can go this route. This is tricky, you have to make sure you do not overpay for what, in effect, becomes an extended warranty. Also, I do not know the exact terms of Honda CPO...this is more common with BMW's for instance.
  • Hi Car_man
    I am also interested in the factory lease incentive for 2006 EX Sedan 4 Cyl. I live in LA Area and looking at 12,000 miles/year.

    -I went to one dealer in my neighborhood by asking for improving those 42 months deal to 36. And they accepted it with lower monthly payment around $259.99. However, the up front cost is $2,500 rather than $2,138 from manufacturer incentive.

    -I received the internet quote from other dealer nearby at $21,513 including destination fee. How can I calculate the monthly payment from this price with 36 leasing months.

    Comparing those two and manufacturer incentive, which one do you think is close to the real deal?

    Thank in advance :)
  • jmax1jmax1 Posts: 9
    I do plan to sell the car myself after I purchase the Accord, my problem is a lease company wants to finance the deal for me at 900 profit to them. Should I go to my own credit union and finance myself?
  • Without a doubt you should go to your credit union. Unless the rate charged by the leasing company is low enough to offset to $900 charged up front.
  • oldjoeoldjoe Posts: 132
    Local newspaper ads here in Eastern Iowa have the Honda Ridgeline with A/T for lease at $219 and $2,900 down. Honda Pilot w A/T for lease at $239, about the same amount down. Residual value of the Hondas just can't be beat.
  • oldjoeoldjoe Posts: 132
    Your numbers are wrong. You should be able to getan Accord LX for about 2229 or less. Ridgelines are leasing for $219 and Pilots for $239...so check your local dealer for the real numbers they are offering at any given time. The well-sold leasing programs, available on the internet for less than $100 will teach you all that you want to know about all the new terms you may see. Make your best deal first and then decide whether to buy or lease.
  • Car_Man's number are correct. The numbers that you are quoting, as I see from the post just above, are with $2,900 down. Car_Man's number are with no money down. Actually, the number that he quoted in the post you replied to are for rolling negative equity into the lease, meaning the car that the poster was trading in was worth less than what he owed. Therefore, when Car_Man said that rolling $1000 into the lease bumps the payment up to $X, that is because the buyer is having the lease pay the extra $1,000 he owed on the trade-in.

    As far as the leases that you mention, I'm sure a quick search will reveal numerous reasons as to why money down on a lease is not a good idea.
  • oldjoeoldjoe Posts: 132
    Sorry, I did not realize that it was a "poor risk" deal he was trying to get into.
  • Hi Car Man,
    I need advice on negotiating lease on 2006 Accord EX V6 6sp w/NAV, fog lights and auto mirror. The best offer so far from a local dealer is $28,281 plus tax, registration and fees. I want to get a 42 month/15k annual miles and I'd like to keep my lease payments to about $400 a month. I've been pre-approved for a lease by American Honda, and I'm prepared to put about $2500 down. Are my expectations reasonable? Should I be trying for a lower price for the auto? I realize that right now I'll have to order this car. I can drop the lights and mirror now and add them later, to keep the payments within my requirements. Thanks for your advice and help.:confuse:
  • waydewayde Posts: 198
    HI CarMan -
    Don't have the selling price, but was quoted the following on an 2006 EX-V6 non-navi. Can you tell me if this looks good?

    3years/ 36,000 miles
    Monthly payment -- $388.10
    Down payment --- $388.10

    Thanks!

    MSRP is 27850
    Selling price - not sure, just got this quote.
  • dglozmandglozman Posts: 177
    Does this quote includes taxes and fees? I know that Honda Finance charge $595 and doc fee somewhere $100.
    When you get a quote, make sure it is "OTD" price that includes everything you pay (regardless if it is goes to dealership or the government)
  • waydewayde Posts: 198
    CarMan -
    The money factor is .00202 -- is that correct based on your AHFC leasing info?
    Yes, the 388.10 includes taxes.
    thanks :)
  • sdiver68sdiver68 Posts: 119
    I'm picking up my EX V6 non-navi this week for $395/month...36 months/45,000 miles with the same money factor and zero down and no security deposit in a 7% tax area. I think I worked out the selling price ~ $25,500...or about $400 above invoice (please double check my math...it's been a week since I calc'ed it)
  • I see on Honda's website that they are currently offering a lease for the LX Special Edition ($239/month for 42 months w/ $1999 due at signing). What would a similar lease be for an LX with no SE. Would the ~$700 difference in price make much of a difference, or would the special deal on the SE almost make up for the price difference?
  • gidocgidoc Posts: 3
    CarMan,

    Hoping for money factor and residual value for 36 mo, 12 k per year on Accord EX V6.

    Also, any insight into whether current lease incentives will cont into December?

    Thanks in advance.
  • I am considering leasing the LX SE. I have been quoted a buy price of 18,550 + the usual charges and 5% MD sales tax. There is plenty of competition here in the DC area. What should I be expecting to pay monthly if i want to put nothing down for 36 months? 42 months? Would I get a lower rate if I asked for 10K a year instaed of 12K. Historically are these good rates that Honda is offering right now?

    Sorry for all the questions, and thanks in advance for any help offered. I am looking to get a car by Monday.

    Thanks again.
  • Hi jmax1. You would be better off having the dealer that you are working with cut you a check for any equity that you have in your trade than using the proceeds from it as a down payment on a lease. I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your leased Honda would be exactly the same, regardless of whether you had put several thousand dollars down, or had made absolutely no down payment at all.

    Honda's lease program is much more attractive on the 2006 Accord right now than it is on the 2006 Civic. As a result, the Accord is the better value, but the Civic might actually have a lower lease payment because it is a less expensive vehicle, price-wise.

    Car_man
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  • Greetings rabbit2. Most manufacturer advertised lease payments leave a little meat on the bone, so to speak. If you are n an area where there is a decent level of competition for your business, I would not be surprised if you were able to negotiate a lower selling price than the one that this lease is based upon. Naturally, a lower selling price will result in a lower lease payment. For more specific feedback on how much you should expect to pay for this car right now, stop by the following discussion: "Honda Accord: Prices Paid & Buying Experience".

    Car_man
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  • Hi somtam. You can figure out what the lease payment should be on a vehicle, given its selling price, but you need a little more information to do so. In addition to the selling price, you need the full MSRP, lease money factor and residual value. I can give you the latter two numbers. If you were to lease a 2006 Honda Accord EX 4-cylinder 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 .00192 and 59%, respectively. Now all you need is this car's MSRP. Once you have it, plug all of this information into the formula that is outlined in the following article: Calculate Your Own Lease Payment.

    Assuming all of the cars that you are interested in are the same, theoretically the one that has the lowest selling price will be the best deal and have the lowest lease payment.

    Car_man
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    Smart Shopper / Prices Paid Forums
  • Hi erlkoenig. I can tell you exactly what your lease payment on this car should be like and I would be more than happy to do so, but I need you to tell me its full MSRP (including the destination charge) first. For now, I can tell you that you should keep your $2,500 in the bank rather than using it as a down payment on your lease. I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your Accord would be exactly the same, regardless of whether you had put $2,500 down, or had made absolutely no down payment at all.

    For feedback on how good the price that you were quoted for this car is, stop by the following discussion: "Honda Accord: Prices Paid & Buying Experience".

    Car_man
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    Smart Shopper / Prices Paid Forums
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