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2013 and earlier-Honda Accord Lease Questions

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  • If that 1,000 is the only out of pocket $ you need to put down (meaning it includes first Mo payment, Acq Fee, and any doc fees they are charging) then it looks like a good deal.
    I tried to work with a lease calculator to get that number so i could see what they are selling the car to you for. ( I assumed you are in MA being charged 5% tax).
    I see the MSRP is 23,860
    using a Money Factor of .0027 and a residual of 63% (I've seen these number on the forum recently)
    If I plug in a selling price of 20965 i get a lease payment of 275.10

    This is a below invoice price (by almost $400). So i'm wondering if that 1,000 down isn't including the above mentioned fees. If it is, i would go for it.

    -Andy
  • jaxs1jaxs1 Posts: 2,697
    There is no blanket residual. The residual depends on the mileage and length of the lease. When people ask for and provide residuals, the term and mileage needs to be included.
  • Thanks vital411. The 1000 does include fees and 1st month. I think I should probably go for it.
    DL
  • My Bad, i should have mentioned i was working with the more popular 36mo 15k/ year lease
  • The Grand Rapids, MI Press for Sunday Dec.23rd has an ad in the Automotive section by the Honda Dealer advertising "HAPPY HONDA DAYS". And also touting 2.9% financing on all new Hondas. Ad states, "All prices plus tax,title,plate and doc fee. 2.9% for 36 months through AHFC with approved credit. Excludes any prior purchase. Interesting!
  • I've been doing some research for some time and came across this deal and need some seasoned help whether this is a good deal or not. Here's the following:

    Honda Accord EX-L V6 28554.00
    18" Wheels 2392.00
    Back up Sensors 649.00
    Wood Trim 242.00
    Wood Steering Wheel 202.00
    Interior Illumination 184.00
    Rear View Camera 652.00
    Auto Day/Night Mirror 374.00
    Tax Rate @ 3% 997.47
    Documentation Fee 398.00
    Tags 55.00
    Total Price: 34699.47

    I want to lease given the my situation instead of buying because I do not believe I will be in this vehicle after three years. If I lease I understand the MF is 0.0027 and the residual is 63%, what would my payments be and how much out of pocket should I go with? I want to lease for 36 months with 15K miles. Please advise.
  • jaxs1jaxs1 Posts: 2,697
    That is would be a horrific car to lease with all that junk installed and a doc fee of almost $400. Most of those add-ons wouldn't even count towards the residual.
  • Let me just ask a few quick questions:
    First of all the EX-L and the V6 EX-L both come with the Auto day/night rear view mirror - so why are you adding this accessory?
    Second, why would you want backup sensors and a rear-view camera. Just get the camera and save 650.
    Third - Leasing a car with so many add-on accessories is really a bad idea and i'm the biggest pro-lease guy there is! The reason is all of these are added in on-top of the agreed price of the car and not calculated into the residual of the lease.

    W/o all these accessories you are paying 28554 for a car with an MSRP of 30260. With a MF of .0027 and a Residual of 63% a 3 yr 15k/yr lease would be 392.18/ month without tax.
    Now when you add all the accessories in (and i took out the Day/Night Mirror and the backup sensors) you would be paying 32266 for a car with an MSRP of 30260. WIth the same terms as above, this makes your payment 504.10/ month without tax.
    Your down payment would be First Mo Payment, Acq. Fee(usually 595), Doc Fee (which in this case seems high at 400 - should be 100 or less), and Tags. (I'm not sure what this tax is as most leases have taxes charged per month on the payment and not based on the total price of the car but some states don't allow this, if you post what state you are in I or someone else may be able to help).

    Your only other option if you want all of these accessories is to pay them as part of your downpayment, since they total to $3672 you would end up with a downpayment of about 5,000 which is outrageous - especially for a lease which is really a rental. If the car is ever totalled you would lose all of that.

    My advise to you (and as i said before i'm a very Pro-Lease guy) is to buy the car, or forgo the accessories (or just pick one or 2 of them). Adding close to $4,000 in accessories doesn't work out well when you can't get anything for the at lease end where as if you bought the car when we went to sell or / trade-in you would get some value for them.

    Good Luck!
    - Andy

    The other alternative is to pay for the accessories as part of your downpayment
  • Hello vital411

    Thank you for your response, I want to say I was looking for another voice to tell me if I was making a bad decision. When I spoke with the dealers none of them said, "wait a minute you would be better to try this alternate solution" - I guess they figured I knew what I wanted. I was not aware you could get the day/night mirrors on this model and the comment about the backup sensors make sense. I live in the state of North Carolina where the state tax is 3%. I found myself over the number of years buying a new car almost every three years and reconsidered my buying habit to look at leasing. I will go with adding only the camera, and the tires which should take the total to $31598.00. Those other accessories were nice but in reality did not make sense as you have stated for a lease. Now that I have a better picture of what to ask for; what will my lease payments be based on the new total? If I understood you earlier, my down payment should be the first month lease payment + acquisition + documentation fees and tags. Can documentation fees be negotiable? Thanks for the reality check.
  • I just did some checking online and see that NC charges that 3% fee for any vehicle that is titled, including leased vehicles. This is instead of sales tax, so i'm assuming that this isn't going to be added to the payment like most states do as you'll pay the 3% up front.
    That being said, i worked up a new payment with the revised capital cost (price you'll pay for the vehicle) at 31598 brings the payment to 484.96
    therefore the difference in monthly payment to add these accessories (the wheels and the camera) is $92.78 / mo.

    I also just took the price of these accessories and divided them by 36 to see the price / mo without any interest - that comes to 84.55 - so you only save like $7 per month by financing the accessories vs. paying for them up front so i would advise to finance them as you don't want to pay any more money up front then you need to. (again since it's a car you don't own).

    Personally I'm in this same boat - i'll be leasing a EX-L 4cyl Navi MT (ordered it 4 months ago and it should be in this week) and wanted the camera, and the Spoiler but couldn't justify adding all these accessories to a leased car so i just went for the spoiler as i think it looks nice w/ it. Thing is my last car had the Rear Camera (2004 FX35) so i'll really miss it but it's a choice i'll make.

    Finally - if you want to run your own numbers you can go to google and search Lease Payment Calculator and find any number of these tools that will help you. I have my own excel spreadsheet that i made as I like seeing many options on one screen but for most people the web calculators are fine.

    Good Luck!
  • Hello vital411,

    You have been a great help...I am now armed to go ask for the vehicle I want based on your suggestions. Thanks for your help and I hope your EX-L V4 Navi MT comes through in a mighty big way!
  • pm79pm79 Posts: 13
    Hi:

    Most of us have seen spl. lease advertisements in newspaper that look too good to be true. Often these advt say - 1 or 2 cars available at this special rate.

    My question - are these deals for real? What are the hidden costs to lookout for?

    A local dealer is offering Honda Accord LX (Automatic) for $199 ($3,000 down, 36 months, 12K miles) with a residual of $14,000 and MF of 0027.

    The exact same car is being offered by Honda for $259 ($2,500 down, 36 months, 12K miles) with a residual of $14,000.

    Am I missing something? Or is this really a good deal.

    Please let me know as I am seriously considering this deal and plan to finalize this tomorrow.

    Thanks!
  • Hi quattro5. Honda still is not providing any lease support on the Accord. Given the current tough environment for auto sales and the intense competition in this segment I suspect that it will have to eventually introduce lease support on it some time in 2008. It is difficult to say exactly when this will happen though.

    The Accord's lease program varies by term and mileage allowance. For now I will assume that you are interested in a 36 month lease with 15,000 miles per year. Let me know if you want something different. Honda Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2008 Honda Accord LX-P Sedan or an EX 4-cylinder Sedan with 15,000 miles per year are .00260 and 63%, respectively.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Greetings mstylady. These aren't silly questions at all. There's no way that you would know what these terms mean if you have never leased before. They are specific to leasing and have nothing to do with conventional loans. The best way to find out how leasing works is to check out the following informative articles that are available here at Edmunds.com: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment. After you have read them, let me know if you have any specific questions and I would be happy to answer them for you.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Hi Jason. Honda Finance's lease program for the Accord varies by term and mileage allowance. For now I will assume that you are interested in a 36 month lease with 15,000 miles per year. Let me know if you want something different. Its current buy rate lease money factor and residual value for a 36 month lease of a 2008 Honda Accord EX 4-cylinder Sedan with 15,000 miles per year are .00260 and 63%, respectively for consumers who qualify for its "Super Preferred" credit tier and pay a security deposit at lease signing.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Here's the information that you're looking for, nring. Honda Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2008 Accord Sedan EX-L V6 with navigation and 12,000 miles per year are .00260 and 61%, respectively for consumers who qualify for its "Super Preferred" credit tier and pay a security deposit at lease signing.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Greetings roadtoruin. Honda Finance's lease program for this car varies by term and mileage allowance, so for now I will assume that you are interested in a 36 month lease with 15,000 miles per year. Let me know if you want something different. Its current buy rate lease money factor and residual value for a 36 month lease of a 2008 Honda Accord LX 4-cylinder Sedan with 15,000 miles per year are .00260 and 63%, respectively for consumers who qualify for its "Super Preferred" credit tier and pay a security deposit at lease signing.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Hi pm79. The "catch" in the deal that your local dealer is offering is the $3,000 capitalized cost reduction (aka down payment). I always advise consumers not to make down payments when leasing. Those who make them risk losing them if their vehicle is totaled in an accident or stolen and never recovered. Even though it means that your monthly payment will be higher, you would be better off going with a zero down lease.

    The best way to get a good deal on a lease is to negotiate as low a selling price as possible on the car that you want. Shoot for a price of a couple hundred dollars over dealer invoice.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • I recently leased an '08 Accord EX (4cyl) with rear spoiler. I put down $2,500. and walked away with a payment of $302. before taxes, etc. $330 with all included. I think this was a good deal and I'm happy with it because the car is sweet. It rides beautifully and has a lot more power than the 05 Accord. I test drove a 6cyl and found the 4cyl's increased power was satisfactory for me. :)
  • pm79pm79 Posts: 13
    Car Man:

    Thanks for your reply. So does that mean we should look for least capitalization cost?

    In my case Honda is offering a similar lease deal with same amount of down payment and $259 monthly payment.

    Besides the capitalization cost, is there anything else I am missing in this deal. It looks too good to be true, but the only catch is super preferred credit, which fortunately I have pre-qualified with Honda.

    Let me know if I should go ahead with $199 per month deal.

    Thanks!
  • can anyone tell me what the RV and MF would be on a three year lease with 12000 and/or 15000 miles?
  • Is the one at Vann York?
  • I was in a dealer today and they told me if I didn't sign up for a lease by tomorrow midnight, the prices would all go up. Is this true?

    Thanks for any info.
  • Hello jb turner

    Sorry about the delay...no this is not a vehicle quote from Van York Honda.
  • Well it's hard to say, because the money factor for the new month is usually kept secret until that month starts, but since the current money factor isn't great, there is only one way for it to go, and that is down (so if they money factor goes down the payment should go down).
    The dealer's price may go up however, as they are probably more motiviated to sell a car on Dec 31 vs. Jan 1.
    So it may be a half truth.
  • bvdj84bvdj84 Posts: 1,721
    last day of the month, they gotta move a car, so they can have 1 more sold on their list. I doubt much will change, or it could possibly get any worse, as it can only get better pricing from now on, as dealers can less likely claim the excuse, well its a new design, its too popular to keep on the lot, which I don't believe at all. If that were the truth, I would see them all over my town. Which I haven't. There are cars still on the lots that have been there since Sept arrival. If you go on the last day, you are more likely to get a deal, The first of the month, not so sure, because they have the whole month to meet quota. It is crazy though, you can get a fully loaded Acura TL, or TSX for a much better deal than the accord!

    I am hoping to get a EX-L 4cyl, Navi, with a final price in the 25k range. Hopefully, I can do it.
  • bvdj84bvdj84 Posts: 1,721
    I have an 06 SE Accord, with a 36mth lease, with 12k a year. My lease ends Jan09.
    According to the mileage that I should have at the end of each month, I should have 24k, on Jan 10 of 2008, but I have 29k miles. So I am about 5k over my projected mileage. Meaning, if I were to wait I would be atleast 5k over my 36 allowed miles. I also have been driving more lately, I see my mileage increasing past 5k over. Obviously, I am not going to keep it til Jan 09, because it would hurt my contract.

    When Should I trade? I am thinking this Spring, If I drive reasonably, I will have 33k in May. What looks better on my trade? Being a little under, so that way they can offer the warranty left? or wait right up til 36k. Let me know, its not too complicated, but just wanted a little bit of feedback. I am not worried about my trade in value, plus my payoff is low enough now.
  • Hi - actually, I never thought to look at an Acura TL fully loaded or not because I was told that Acuras are a fortune to lease or buy. Much more expensive than an Accord. My dealer gave me this deal for an Accord LX: $3000 down on a 42 month lease with a $250 a month payment. His thought was that I was crazy not to take such agreat deal. Then I found at another dealer a Zero down payment for an Accord EX for 32 months! Not such a great deal on the first one eh?
    I'm finding all of this car business very distressing along with the pressure that's put on you to go for a deal. I'm wondering if I just shouldn't wait for a 2 yr old car to lease!

    Would you mind telling me the deal for the fully loaded Acura TL? I'm curious to know. Thanks.
  • bvdj84bvdj84 Posts: 1,721
    Well, Acura is having much better incentives on all there cars, and they are very attractive right now. I believe you can get a TL with minimal down for around $360, or a TSX for around $300 with $0 down. But, check the Acura Forums for more specific numbers and deals. You are more likely to get a better deal on an Acura right now, than an Accord.

    If you really want an Accord, do your research, look at realistic numbers, then start putting in online requests. If you try hard enough, you can get close to what you want.

    I have seen a load EX-L 4cyl, Navi, around 26k, when the price is MSRP 28k. I have even seen around 25k,

    Remember start with $0 down on all deal, then if you feel you want your payment lower, EVEN after all the negotiating, then put some down, but don't tell them that til you have to.
  • Anyone have january Money Factors / residuals yet? Not sure if they were changing today or tomorrow.

    Thanks!
This discussion has been closed.