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2013 and earlier-Honda Civic Lease Questions

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Here's the info that you're looking for, bcwest. Honda Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2008 Honda Civic Sedan DX with 15,000 miles per year are .00270 and 50%, respectively for consumers who qualify for its "Super Preferred" credit tier and pay a security deposit at lease signing. You definitely do not want to lease this car for only 24 months. Its 24 mo. factor is much higher (.00370).

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi dodgehappy. Honda Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2008 Honda Civic Coupe EX-L without navigation with 15,000 miles per year are .00270 and 57%, respectively for consumers who qualify for its "Super Preferred" credit tier and pay a security deposit at lease signing. The residual value for a lease with only 12,000 miles per year is 2% higher.

    Car_man
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  • likuidlikuid Posts: 1
    Hey I could use some help,
    I'm trying to lease a new 08 civic:

    I wish to get a Honda Civic Coupe Ex Manual, They quoted me at msrp at $19435 $2000 down and monthly payments at $313. Is this a good deal? I felt that was overpriced so I walked away. Btw I'm in northern california. My credit score is in the high 750+ I wanted them to lower the price but they told me price was not negotiable since their inventory is running low. Is this true on civics?
  • dodgehappydodgehappy Posts: 118
    Just as a reference point, my sister was looking at a 08 Civic 2 dr EXL and the dealer quoted her $352 per month (incld 6.75% tax) and 0.00 out of pocket. This was based on high credit tier and a 3rd party lender. He said Honda Finance credit would come out to $374 with tax and 0.00 out of pocket. Both of these were on 15k miles per year and an Ohio lease
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi likuid. You never mentioned what the selling price of this car is. This is a very important number to know. The selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. Without the selling price, it is difficult to tell how good a deal this is.

    Also, you mentioned that you were asked for a $2,000 down payment on this deal. I always advise consumers not to make large down payments when leasing. Those who make them risk losing part or all of them if their vehicle is totaled. At lease signing, you should only pay your car's first month's payment, Honda Finance's $595 acquisition fee, and a security deposit equivalent to your car's monthly payment rounded up to the nearest $25 increment. You can even have your security deposit waived in exchange for a .00010 money factor increase and roll the acquisition fee into your car's cap cost if you want.

    Car_man
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  • I found the July rates (MF and RV) for a Civic Si here, but are the September rates available? Thank you
  • by the way, that is the Si without Nav, for 36 months or whatevcer the sweet spot is
  • Hi poorprof. Honda Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2009 Honda Civic Si without navigation with 15,000 miles per year are .00270 and 62%, respectively. The money factor for an otherwise identical lease with 12,000 miles per year would be the same, but the residual value would be 2% higher.

    Car_man
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  • Thank you very much
  • dad23dad23 Posts: 430
    Thanks Car_man, when you get a chance, could you please give me that current info again?

    Edited: 36/12K on an LX/EX Sedan, auto, no leather or navi ;)
  • hi, i live in NY and am in the process of LEASING a 08 honda civic sedan...would like to know if am getting a fair deal. i researched on the net and saw the invoice for like 19510 (without a spolier)..i negotiated 19600 this is with a wing spoiler (500 extra).everytime i put the figures in the lease calculator the numbers are not matching up...
    he's giving me the car at 1187 down (thats first month,dmv,bank fee)...monthly paymnets are $324/12000 miles/36mths...2yrs free oil change and the honda care package (24hr roadside assistance and whatever comes with that). and some $1500 waiver i get if the has any damages up to 1500..he also spread the taxes in the payments.....he said they money factor is like .0038(9.12%)
    playing around on the LEASE CALCULATOR...the residual value comes up to be like 13500 or something like that. anyways i would like to know if am geting a good deal before i sign up the paper work?????

    how would anyone credit affect this deal if your credit is not so great????thanks for your time.
  • Maybe your credit score is not very good. At the end of May I leased a 2009 EX 5sp manual trans for 252/mo with no down payment, 1200 mi 36 mo, tax included. Bank fee and first payment made $600 at signing. My FICO is 800 and there was special lease rate at the time. Residual is $12000 and lease was based on sales price of 17700.
  • Car_man, will you please post the specifics of Honda's newly offered "featured lease" in their "current offers" section on 2009 Civic's. The ad is for 09 LX models at $199/month for 36 months, 12K with $2799 due at signing. I am interested in an sedan EX-L Navi, Auto for 36months and 12 or 15K miles per year and do not want to make a cap cost reduction of $2005 as specified in this offer. I would like to know the base Money factor and residuals from Honda so I can configure what works best for me. I will qualify for best rates. Thanks!
  • Car_Man, as I see that Honda just introduced a new September lease program,

    Can you provide the following info on a 2009 Civic Hybrid w/o Nav:

    Lease in New Jersey
    36 Months
    15k miles year
    What is the residual?
    What is the MF?
    What is the invoice (not listed on edmunds as of this posting)?
    Confirm that security deposit not required?

    Thank you.
  • You're very welcome, poorprof. Good luck in your negotiations.

    Car_man
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  • No problem dad23. Here you go. Honda Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2008 Honda Civic LX Sedan with 12,000 miles per year are .00270 and 62%, respectively for consumers who qualify for its "Super Preferred" credit tier and pay a security deposit at lease signing.

    The numbers for an otherwise identical lease of a base '08 Civic EX Sedan are .00270 and 63%.

    Car_man
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  • Hey jmcbmw. Here's the info that you're looking for. Honda Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2009 Honda Civic EX-L Sedan with navigation and 15,000 miles per year are .00270 and 60%, respectively for consumers who qualify for its "Super Preferred" credit tier and pay a security deposit at lease signing. The residual value for a lease with only 12,000 miles per year is 2% higher.

    Car_man
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  • Yes, civhybrid07, I have seen Honda's September lease program. Honda Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2009 Honda Civic Hybrid without leather or navigation with 15,000 miles per year are .00270 and 61%, respectively for consumers who qualify for its "Super Preferred" credit tier and pay a security deposit at lease signing.

    Honda Finance charges a security deposit, equivalent to vehicles' monthly payments rounded up to the nearest $25 increment, on every vehicle that it leases. It will waive its security deposit requirement in exchange for an increase of .00010 in the money factor that is used to calculate your monthly payment.

    The dealer invoice price of this model is now available here at Edmunds. Here's a link to the page:

    http://www.edmunds.com/new/2009/honda/civic/101061157/prices.html

    Car_man
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  • Car_man, Thank you for getting back with the info. Now it looks like I will have to wait until October to lease as I'm going out of town. I will check back to see if the rates change then post my deal when I find a car. I'm hoping it will maybe even get a little better or at least prices paid will.
  • usairusair Posts: 23
    I can get a 09 Civic LX sedan for $225.00 PM. 0 down. sign and drive.. 42 months.

    Is this a good deal
  • gmosesgmoses Posts: 3
    So my girlfriend needs a car and we decided to go with the honda civic lx (either sedan or coupe). We live in NJ. I have tried to research prices and terms and all that but at the end i think it makes more sense to talk bottom line dollars. First question should i worry about residual and money factor etc.. if the monthly price and initial payment is a good one. I believe they claim the car is 18700 invoice 17500 or so.

    Honda civic sedan lx 36 months for 12k a year. The dealer asked me what i was willing to pay i went lower than any other quote i received and he came back and basically agreed. Price 1000 initial payment 239 included all fees taxes. I now feel like maybe i didn't go low enough. Is that a good deal?
    I also cant get a straight answer on how much more a month i should expect to pay for 15000 miles a year instead of 12k. any thoughts?
    I was offered from another dealer 1500 initial payment 227+taxes for 36 months 12k on the Lx coupe... is that a good price.
    I feel like i can negotiate further but can any one share their thoughts on a good deal and possibly a price i should shoot for...it would be much appreciated.
    Thank you
  • No problem. Talk to you then. Enjoy your trip.

    Car_man
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  • Hi usair. the best way to evaluate how good a deal a lease is is to look at the selling price that you are being charged for the car that you want. The closer your car's selling price is to dealer invoice, the better. You can stop by the "Honda Civic Prices Paid and Buying Experience" discussion to see how much other community members have paid for similar cars lately.

    Once you have arrived at a selling price that you are happy with, have the dealer that is quoting it calculate your lease payment using Honda Finance's buy rate lease money factor. Its current buy rate for "Super Preferred" tier customers who lease an '09 Civic for 42 months is .00255.

    Car_man
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  • usairusair Posts: 23
    go with 0 down and 12k miles. best I got was for a LX-S was $235.00 for 42 months. I am still looking.for better deal, my goal is to be close to $199.00 zero down.
  • usairusair Posts: 23
    ok, the selling price determines the payment, but I suppose the residual is always based on the MSRP. So lower the payment the higher the residuals, which means you pay more to buy the lease buyout. it always a catch 22 situation.
  • Hi gmoses. Are you saying that the dealer that you are talking about quoted you a selling price of $18,700 on a Civic that has a dealer invoice price of $17,500? If so, that's equivalent to around $1,200 over dealer invoice. The Civic is very popular right now, but that's still enough room that it wouldn't hurt to shop around with a few other dealers to see if you can beat this price. Also, make sure to stop by the "Honda Civic Prices Paid and Buying Experience" discussion to see how much other community members have paid for similar cars lately.

    Once you have a selling price that you are comfortable with, have the dealer calculate its monthly payment using Honda Finance's buy rate lease money factor, which is currently .00270 for "Super Preferred" tier customers who pay a security deposit at lease signing.

    This is the best way to assure that you are getting the best possible deal on the Civic that you want.

    Car_man
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  • gmosesgmoses Posts: 3
    I think i did not explain that well. Initially he spoke of those prices on the car. But I didnt bother haggling over the price of the car thinking that if the monthly numbers worked out that would be the most important. That being said is there a way to look at the monthly payments and giving me an idea if that is a good quote or am i paying to much... If not i will try and get a better idea of the msrp etc... thanks for the help and quick response.
  • ok, the selling price determines the payment, but I suppose the residual is always based on the MSRP. So lower the payment the higher the residuals, which means you pay more to buy the lease buyout. it always a catch 22 situation.

    I don't think you quite get it. It's not a catch 22 at all. You want higher residuals yes. But you DO want lower than sticker price. And a lower payment doesn't always mean you got good residual or sale price. It could've been a low money factor. Here's the breakdown...

    Residual is based on MSRP, yes. So, a $20,000 MSRP vehicle, FOR EXAMPLE, with a 50% residual would have a "buyout" of $10,000 at lease end. However, you want the negotiated sale price to be LESS than MSRP. The reason being is that the negotiated sale price plus any fees (aka NET CAP COST) is subtracted from the residual to form the BASE MONTHLY PAYMENT.

    EXAMPLE: If you negotiated a sale price of $17,000 including all fees on the $20,000 MSRP you would subtract the $10,000 residual value from the $17,000 (NET CAP COST) = $7,000. Divide by term 24, 36, or in your case 42. = your base monthly payment would be $166.67 IF YOU WOULDN'T HAVE NEGOTIATED A SALE PRICE OF $17,000 YOUR BASE MONTHLY PAYMENT WOULD HAVE BEEN $238.10 at the $20,000 sticker price.

    The next part of your payment is the so called RENT CHARGE. To calculate this you add the NET CAP COST plus the RESIDUAL then multiply by the money factor. $17,000 net cap plus $10,000 residual = $27,000 X .00270 = $72.90. The money factor .00270 (6.48%) Is the current Civic MF for "SuperPreferred" tier 1 credit. I PERSONALLY THINK IT IS RIDICULOUSLY HIGH AND WOULD NEVER EVEN THINK OF LEASING A CAR ABOVE 4% LEASE RATE. A MONEY FACTOR OF 0.00125 (3%) WOULD = $33.75 PER MONTH. A BIG DIFFERENCE. OF NEARLY $40 PER MONTH. Anyways..

    Add the two together $166.67 plus $72.90 = YOUR PRE SALES TAX MONTHLY PAYMENT OF $239.57

    Again, the NET CAP COST will include any and all fees so watch that number. You may negotiate a selling price $3K off sticker price then have a shady dealer add in $2,000 in bogus fees. I personally will only pay the acquistion fee. If they try to add in anything else I walk. Your state may require you to pay your sales tax up front but most just add it to your total monthly payment.
  • FYI, don't put any money down except your first monthly payment. If you make a right turn out of the dealership after putting down $1,000 and you are broadsided by a garbage truck, you will not be reimbursed for your down payment. Likewise if your car is stolen, you get nothing.

    To answer your question yes, you should definitely worry about residual and money factor. Most dealers are upfront and honest about them but it's best to get multiple quotes. You can call and ask to talk to a salesman or even email and he will give you the numbers 99% of the time, no questions asked. READ MY LAST POST ABOUT HOW TO CALCULATE A LEASE PAYMENT TO FULLY APPRECIATE HOW IMPORTANT THESE NUMBERS ARE.

    Get several quotes, in writing if necessary. Make sure they aren't adding in $1,000 worth of BS fees like window etching, paint sealant etc. They may give you the lowest sale price on the vehicle then add a couple of grand in bull crap fees to get their money back.

    Also, normally the only difference between a 12,000 mile per year lease and a 15,000 mile per year lease is the residual will be lower on the higher mileage lease. FOR EXAMPLE: If you are getting 50% on the 12K the 15K will be 48% or so.
  • t_ct_c Posts: 13
    why is honda's money factor so high? its about 6.5% when everyone else is like 2% lower.
This discussion has been closed.