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2013 and earlier-Honda Accord Lease Questions

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  • I'm here leaseme. Sorry for the delay in my response, I was away on vacation for about a week and am just starting to catch up. I haven't seen Honda's new January lease program for the 2006 Accord yet. Its residual values were only scheduled to run through December 31st. I should be able to give you an idea of what the new residuals are like later on this week if you would like. Its lease money factors are scheduled to run through January 3rd. If you were to lease a 2006 Honda Accord EX-L Sedan through Honda Finance right now for 36 months, its buy rate lease money factor should be .00192 assuming that you qualify for its top credit tier and pay a security deposit.

    Car_man
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  • Greetings Sarah. 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. A vehicle's lease money factor represents the interest that you are being charged on it. Money factors are expressed in the form of a five digit decimal, such as .00150. Honda Finance's current buy rate lease money factor (the lowest possible money factor) for a 36 month lease of a 2006 Honda Accord Sedan EX is .00192. This is equivalent to an interest rate of around 4.6%. You have to qualify for Honda Finance's top credit tier and pay a security deposit to get this money factor. If you opt to have your car's security deposit waived, its money factor would increase to .00202.

    The capitalized cost that you were quoted for this car is very attractive as long as it is before the down payment that you are being asked for is being taken into account. I suggest that you ask for this deal to be based upon the exact sale selling price, but eliminate the down payment. This would make your lease payment increase slightly, but it is the right thing to do. 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 $2,000 down, or had made absolutely no down payment at all.

    Let me know if you have any other questions.

    Car_man
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  • Hi reechz. The selling price that you were quoted for this car is very attractive. Furthermore, the money factor that you were quoted for it is right in line with the money factor for a lease of a 2006 Accord LX through Honda Finance's top credit tier with a waived security deposit (.00194). I just worked up a lease payment on this car using the prices that you mentioned, and I came up with a zero down, pre-tax monthly payment of around $247. This is a lot less than the payment that you were quoted, even after taking sales tax into account. I would ask the dealer why the payment that you were quoted is so high if I was in your situation.

    Car_man
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  • Hi murphy123. You never mentioned the selling price or MSRP of this car. These are important numbers for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing this car's selling price in relation to its MSRP you don't know how much of a discount you are getting on it. The second reason is that one needs the selling price and MSRP, including the destination charge, of a vehicle to calculate its lease payment. I would be more than happy to give you my opinion of this deal if you let me know what these numbers are.

    Car_man
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  • Hi Car_man:
    Welcome back, hope you enjoyed your vacation. When you get a chance to respond to my post #138 could you please give me the details for January? I have been holding on the lease pending verification of the mf.
    Thanks
  • Thanks nikinnicky. It was very nice. Honda just published its new January lease program yesterday. Honda still is not providing any sort of lease support on any leftover 2005 models. It is a fairly attractive lease program on the '06 Accord though. This is why the factor that you were quoted is so much higher for the '05 model that you are considering. Honda Finance's standard lease money factors, which are what you would have to use to lease an '05 Accord are currently .00380 for 24 to 33 months, .00265 for 33 to 39 months, and .00250 for 42 to 48 months. These factors assume that you pay a security deposit and qualify for Honda Finance's top credit tier. Let me know if you have any other questions.

    Car_man
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  • leasemeleaseme Posts: 14
    Hi - Just saw new national 36 month Accord deal (ending now in Feb). Would you know the residual and money factors on this deal for January? Looking at 36 month / 15k per year (and 12k if you have data) on Accord EX-L 4 Cyl auto? Really need the help as I did not get my last deal...ran out of time.

    also, what is the diff in residual on a EX-V6 auto?
    and does honda offer a 1 payment lease? conflicting info
    also, one question on calcs - dealer told me I am wrong not to include the delivery charges in MSRP but all the calculators seem to do this - how should I calc it?
    thanks in advance
  • leasemeleaseme Posts: 14
    Whats the best way to get the info in MSG #161??? I know you are busy but I could use the details...thanks
  • Thanks car_man, you're the greatest! Thanks to your input I was able to tell the dealer that I knew they were inflating the money factor, and they backed down. When they gave me the info last month the residual was 50%. This month they say it's 41%. Thanks to you and previous posts of yours that I have read, I know the residual cannot be manipulated, but this seems like a drastic drop in one month. What say you my auto oracle? Thanks
  • Hi Car Man,
    Thanks for your previous post, I appreciate it. I had read through the leasing section of Edmunds which I found to be a gold! The Fleet Manager was a little awkward when I haggled the price and then asked for a lease quote. He said "well that's a different story". I just went with it, because I figured I'd just come back here to post the conversation. But then, I was hit by a major road block. Apparently, my name was never on the first car, that my mom helped me by. While my credit is "good", my FICA score is a whooping 635. The Fleet Manager said Honda was very strict on first time buyers. I asked about the Graduate Program and he said there would be little difference in interest rates and lease deals. Any helpful hints on how to get a good deal with this horrible score? What tier does this put me in? Third? Ugh!! I'm very disappointed. I've seen other dealers, Mitsubishi, just play w/ interest rates w/o using the score (it seemed shady), but perhaps they were desperate to get the cars off the lot. I don't know if it's worth shopping dealers or if I'm just SOL. I realize I can utilize a co-signer (which is available) but I'm trying to buy a car independently...maybe my pride will turn out to be too costly!

    After my credit score was pulled, I was quoted $349 for 48 mos or I could finance for 5 years at $404 a month. This was like a shot in the stomach. Bah humbug. Any suggestions would be appreciated.

    OTHER QUESTIONS

    Right now, is 20,500 good price sell price before taxes, document feeds, lic? (At this point I'm still debating on lease or finance)

    Is it true that as of the New Year, Honda has stopped offering the option of buying their extended warranty sometime before the 3 year warranty expired? Because they were "loosing too much money" Is it true that you must buy the extended warranty within the first 6,000 miles? Have you heard this?

    If I can strategize a way to independently buy the car, when is the next best time to buy? I feel like I just lost out on the best time to buy. I read some posts about buying in March.
  • leasemeleaseme Posts: 14
    Hi - Just viewed the new national 36 month Accord deal (ending now in Feb). Would you know the residuals and money factors on this deal for January / Feb? I am trying to calculate a price on a EX-L auto 4cl and EX-V6 and need some help quickly.

    Looking at 36 month / 15k per year (and 12k if you have data) on Accord EX-L 4 and V6 auto? Really need the help as I did not get my last deal...ran out of time. trying to get lease soon - so please help

    and does honda offer a 1 payment lease? conflicting info
    also, one question on calcs - dealer told me I am wrong not to include the delivery charges in MSRP but all the calculators seem to do this - how should I calc it?
    thanks in advance
  • hey Carman,

    Thanks for this service. I've been actively persuing an Audi A4 deal, but after the 4th, the numbers don't look so good. Do you have the current money factor and residuals for an ACCORD EX V6 12K and 15k for 24 and 36 months? Thank you.
  • leasemeleaseme Posts: 14
    is this info hard to come by - see above posts re: EX and EXV6 money factors and residuals...any help would be great!

    thanks
  • Hi leaseme. If you were to lease any 2006 Honda Accord EX-L through Honda Finance right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00140 and 56%. The residual value for an otherwise identical lease with only 12,000 miles per year would be 2% higher. Destination charges should be included in your vehicle's MSRP when you calculate its lease payment.

    Car_man
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  • Thanks nikinnicky. This car's residual values definitely did not drop 9 points on one month. Honda Finance's current 36 month, 15,000 mile per year residual value for a 2005 Accord Sedan EX 4-cylinder is 48%. Its 12,000 miles per year residual value is 2% higher than that.

    Car_man
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  • leasemeleaseme Posts: 14
    thanks carman -very helpful
    2 last ?'s...
    1. does the residual change for a V-6 EX-L or are they the same as the EX-L 4Cyl auto?
    2. does honda offer a 1 payment lease option
  • No problem cuzzy80. I'm sorry to hear that your credit score is lower than you thought it would be. You still should be able to lease this car through Honda Finance, just using a higher money factor than if your credit was in good shape. I see that you mentioned possibly financing this car. If you decide to go this route, make sure to get pre-approved to finance the car that you want by a local bank or credit union prior to discussing rates with your dealer. Doing so serves two purposes, it gives you an idea of what sort of interest rate to expect and it may motivate your dealer to beat the rate that you have been pre-approved at. Either way, financing your new Accord should help improve your credit score so that you qualify for a more attractive rate the next time around.

    I'd be happy to give you my opinion on the selling price that you were quoted if you let me know what the MSRP of this car is. Also, make sure to stop by the following discussion: "Honda Accord: Prices Paid & Buying Experience". It has tons of information on the prices that other community members have paid for similar vehicles lately.

    I haven't heard that Honda now only allows the purchase of extended warranties for the first 6,000 miles of its vehicles' lives. I suppose that anything is possible, but this sounds strange to me. It should be easy enough to confirm though. Remember that you do not necessarily have to purchase your car's extended warranty from the dealer that you bought it at or the one that you plan on using for service. You are free to buy it from any Honda dealer. Shop around via telephone or the Internet at sites like www.hondacares.com or www.jayhondacare.com/Pricing.htm to name a few for the level of coverage that you want. Once you have an attractive price quote, you can always go back to your dealer and give them an opportunity to match it.

    Car_man
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  • Hi leaseme. I believe that I answered the identical post that you made on this subject yesterday. Let me know if you can't find my response and I;d be happy to answer these questions for you again.

    In answer to your new question, I don't believe that Honda Finance offers a one pay lease option. I am not positive though, so it wouldn't hurt to ask your dealer to make certain that this is the case.

    Car_man
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  • You're very welcome goscfighton. Here is the info that you're looking for. If you were to lease a 2006 Honda Accord Sedan EX V6 through Honda Finance right now for 24 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00140 and 66%, respectively. The numbers for an otherwise identical 36 month lease should be .00140 and 56%. If you were to lease this car with only 12,000 miles per year, its 24 month residual would be 1% higher and its 36 month residual would be 2% higher.

    Car_man
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  • No problem, leaseme. I believe that Accords with leather interiors have the same lease program as their counterparts with cloth interiors.

    Car_man
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  • Hi Car Man
    I've been lurking on the forums for a few weeks now as I've narrowed my new car lease choices down to the Accord Coupe EX-V6 and the Acura TSX. I think I've got some good numbers going for the TSX (does a MF of 0.0027 for 15K 36mos lease and Residual of 61% sound right??) but I'm less sure about the numbers i'm being quoted for the Accord. I think the dealer said 0.00192 and 58%, but i'm worried he might have been repeating numbers I'd used during our conversation back to me. Are those numbers consistent with what they should be right now? What would be the difference on an otherwise identical lease with 12K miles.
    Thank you!
  • Hey, can anyone suggest the right #'s for a 24 mo. lease on an LX 4dr sedan with 12k miles? The best monthly payment quote I've gotten is $318 (before tax) with about $600 due on signing (1st mo payment + license, fees, etc.). I'd like to know if folks think that is fair and what the residual value should be. Thanks for any help!
  • xtacxtac Posts: 1
    Hi,

    I'm getting a Honda Accord LX 4CYl for 36 month lease, 12k miles. I'm getting it through honda at $319/mo. Credit wasnt so good so i couldn't get it at the original $272 that I was quoted for. Can someone tell me if this is a good price? what should I ask for, what should I know, this is my first new car, and I want to make the best decision.

    Also it's the black/black coupe
  • Hi Car man,
    I'm getting a quote of 20363+550(dest)+ Fees on the EX (MSRP 23950). My FICO is 703. What should the AHFS lease details be on a 36 month closed end with 15000 miles? Dealer in Oxnard California.
    What should the residual, money factor and estimated fees be, with a total down of $2000.00?
    I am a little confused about the residual too. Should it be a % of the MSRP or the 20363? Also, is the sales tax added before computing the Amount to be financed?
    Thanks for the help.
  • lmhudlmhud Posts: 1
    My daughter totalled her car and I'm trying to get her back in a new honda for the best mo. payment. I'm new to buying the vehicles for the fam and looking for advice. I can get the new '06 honda accord for appx. $239 mo with $1999 plus applicable fees. I was looking at this vs. just buying/leasing a civic. The dealer said the civic would be appx. $20-30 mo. more than the new lease deal on the accord. My problem is I don't have a lot to put down and was trying to get a decent payment with ) down. I'm trying to stay from the $230-$270 range a month. We have great credit. Any thoughts from anyone. Also, may be a stupid question, but can I negotiate the price on a lease deal? I didn't know if Honda would be negotiating much since they seem to be selling vehicles right now...
  • blaneblane Posts: 2,017
    lmhud,

    You should check back a month or two in this forum and read the many valuable comments that would affect your concerns. Try starting at page 5 or 6.
  • Seems like Carman is on vacation once more. Anyone else Please?
  • Hi,
    $22600 Out the door. EX+leather
    36 months 15K miles $2000 down. 703 FICO.
    What should the lease rates be?
    Thanks
  • blaneblane Posts: 2,017
    If he had read your post, CarMan would have recommended that you not to put that $2,000 down when leasing. Look back at his earlier posts.
  • I think I will put $1000 down.
    I still need the numbers.
    Help anyone?
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