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2013 and earlier-Honda Civic Lease Questions

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  • czphdczphd Posts: 1
    I'm in Richardson, TX. Credit score 690, first car purchase. Got the following deal for a Honda Civic LX:

    A money factor .00245
    $2,000 down (bc of first purchase) + $1,000 down for TTL (it's Texas :sick:)
    There is an acquisition fee of $595 included
    MSRP: 19155, although I think they may have jacked up the price a bit bc of add-ons.
    Residual value 61%
    36 months
    I negotiated a monthly payment of $185.

    Is this a good deal? I'm thinking it's OK since it's my first purchase.

    Thanks!
  • dwynnedwynne Posts: 4,018
    The featured lease deal is at 0.00127 (3.06%) but requires top tier credit, so paying more with a lower score / no car credit history is to be expected.

    The residual is correct and can't be changed by the dealer or your score.

    Even if you qualified for the featured deal as written you would need to pay TX taxes and put money down and put down nearly $2k, so your payment is not that bad compared to the featured deal.

    That said, there is a $1,000 incentive to dealers that can be combined with the lease deal, so selling prices of $1k under invoice are possible. Plug in your numbers into a lease calc and see what you are paying for the car, I would bet you can whittle the price down lower. With no car credit you may not can help the money factor, but you always try for a better price.
  • larryz007larryz007 Posts: 2
    I'm trying to help my brother out who lives in NY. He recently traded in his 2001 Honda civic to lease a 2010 Honda Civic DX Sedan. His payments are only $150 per month for 36 months at 12,000 mile per year. Is there any way he can purchase the car prior to the end of his lease? His problem is that he should have negotiated the lease for 15,000 miles per year instead of the 12k per year and he's worried about the penalty at the end of the lease. He just completed this lease around 2 weeks ago. Does he have any chance to re-negotiate this transaction or is too late? He has a very good credit rating.
    Thanks for taking the time to answer these questions.
  • @fuelcellguy

    Hi, I'm curious what dealership you were working with... I am trying to lease a civic lx, but in my neck of the woods, they won't budge from a $16,900 cap cost ... which puts my monthly lease payments at $259 (15K miles, 24 month lease, $0 down). I will gladly go upstate to get a better deal, but need to get the car this weekend.

    (sorry if this message posts twice ... not sure if it went through previously)

    Thanks,
  • I worked with Dick Ide in Rochester. They were advertising $199/month for 36 months with taxes and fees included. I did however get good prices from Keenan Honda in Doylestown, PA. The salesman at Keenan sent me prices for all trim levels. The LX automatic was $15,756.
  • dwynnedwynne Posts: 4,018
    edited July 2010
    I picked up a Civic LX sedan w/auto last night for my son.

    MSRP: $19,155
    Invoice: $17,706
    Sell price: $15,999
    Doc fee: $398
    Acquisition fee: $595
    Net Cap: $16,992
    Term: 36 months / 12k miles per year
    Residual: $11,684.55
    MF: 0.000127 (3.05%)
    Payment: $183.85 plus tax
    Due at signing: first payment w/tax + tags + title

    One dealer was doing $199 + tax + tags + title with a sign and drive.
    Another dealer was doing $179 + tax + tags + title with $240 due at signing (the best deal), but this dealer was several hours drive away.

    I e-mailed the sales manager of a local dealership and asked for a price. I mentioned the $1k incentive and the stepped dealer money that ended at the end of month (yesterday) and asked if he wanted or needed to sell one more. I guess he did, based the price I got. Counting the doc fee as part of the price (I always do) put it at about $1,300 under invoice net, I think the step was at least $300 and may have been $600 or more. So a break even or make money deal even at that price, and 100% of holdback as well.

    My son is very happy as am I :D
  • jleve1974jleve1974 Posts: 3
    edited July 2010
    OK so I basically need to know if it's realistic to think I can lease a Corolla (manual transmission) for under $200 a month for 36mos with no $$ down and 36K miles for lease term in NJ. Can anyone give advice?
  • dwynnedwynne Posts: 4,018
    This is the Honda Civic lease forum, you might want to post this in the Corolla lease forum.

    If you want a Civic, yes it is possible to lease a new Civic for under $200 per month with only the first payment down up front. Or at least it was last month and it of course depends on your tax rate and state.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi larryz007. If your brother signed his lease only two weeks ago he may be able to purchase additional miles on a per-mile basis at a discounted rate by speaking with someone at Honda Finance. There's no guarantee that they will be willing to work with him, but that's the first thing that I would try if I was in his situation.

    If that doesn't work, he really does not have much choice but to continue leasing his car. There really isn't any cheap way to get out of a lease several years early. Your brother may end up having to keep his car until the scheduled end of his lease and at that time decide whether he is interested in purchasing it. Doing so actually makes some sense at this point. Keeping his car until lease-end gives him the option to walk away from it if it ends up being in an accident at some point over the course of his lease (which would damage the car's resale value...why not let the bank take the hit instead of him) or if they car ends up giving him problems.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • dwynnedwynne Posts: 4,018
    Honda 15k leases carry a 2% lower residual than 12k leases, IIRC. So a DX sedan's MSRP is $16,408 so the residual would drop $328.20. The over mile fee is $0.15 per mile so 9,000 miles would cost $1,350 VS $328.20 plus taxes and interest. So worth trying to re-do if possible, but not end of the world if you can't.
  • kingpcgeekkingpcgeek Posts: 985
    Does anyone know the July lease numbers for a LX Coupe. Any dealer cash available?
  • larryz007larryz007 Posts: 2
    Hi Car_man,

    Thanks for the information. I appreciate it. I'll pass it on to my brother. I don't know if he can do anything at this point. One thing he told me that seemed rather strange, was that if the car had 60,000 miles at the end of the lease, they would not assess him with the penalty of 15 cents per mile. He has a 3 year, 12k per year lease. Have you ever heard of this or know anything about this?

    I appreciate any information. Thanks, Larry Z
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hey kingpcgeek. Here's the numbers.

    Honda Finance's July buy rate lease money factor and residual value for a 36 month lease of a 2010 Honda Civic Coupe LX with 15,000 miles per year are .00127 and 57%, respectively for consumers who qualify for its top aka "Super Preferred" credit tier.

    Honda is currently providing $1,000 dealer cash on this car that is compatible with its special lease program.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    You're very welcome, Larry. I'm always happy to help.

    If your brother has a lease that only allows 36,000 total miles, I don't see how he can avoid having to pay an excess mileage penalty if he returns it with 60,000 miles.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • geojregeojre Posts: 12
    Hey Car Man, Is the 1k dealer cash available on an lx sedan? What is the 36mo 12K residual? By other members quotes it looks like it could be 61% ? Is the rate .00127? Thanks for all of your help!
  • dkny330dkny330 Posts: 18
    May be looking at purchasing a Hybrid that can get me in the HOV lane alone. Anyone have lease prices/deals for the Civic Hybrid? Am considering the one with leather and navigation. Thanks.
  • dwynnedwynne Posts: 4,018
    Your answers are all available on the web :D

    From the Edmunds incentives page:

    $1000 Cash to Dealer start: 07/07/2010 end: 09/07/2010

    $1,000 Dealer Cash available towards the retail purchase or lease of a new 2010 Civic (excluding GX). Cash can be combined with Special AHFC Lease/Purchase Plan or Zero Due at Signing Leases, but cannot be combined with Special AHFC APR Financing. Please see your dealer for details.


    From the Honda current offers web page on the LX auto sedan lease special:

    MSRP $19,155.00 (includes destination) ...Option to purchase at lease end $11,684.55

    Purchase option (residual) / MSRP = 0.61 or 61%

    Also in the special details they give you the net cap cost = $16,480.74, the term is 36 months, and the payment = $169. Plug those numbers into a lease calc and solve for MF and you get 0.00127 . The formula is

    MF = (Payment-((Net_Cap_Cost-Residual)/Lease_Term))/(Net_Cap_Cost+Residual)
  • dwynnedwynne Posts: 4,018
    I have not seen Civic hybrid lease numbers, but I can tell you TFS is doing some sweet deals on Prius leases right now. 68% residual and 0.00075 MF (1.8%) makes for really nice deals. The numbers do vary by Toyota regions, but some have even BETTER lease deals. 2 years free maintenance included as well. Folks are getting the Prius II or III for under $300 a month with little or no money at signing.

    Edmunds Prius lease forum is here: at this link
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi geojre. The $1,000 dealer cash is available on all Civic trim levels.

    Honda Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2010 Civic Sedan LX with 12,000 miles per year are .00127 and 61%, respectively for consumers who qualify for its top aka "Super Preferred" credit tier.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • ethandethand Posts: 4
    What is it exactly? Is it the same as "dealer contribution" indicated in the Featured Lease details I've copied and pasted below?

    FEATURED SPECIAL LEASE: Closed-end lease for 2010 Civic Sedan 5 Speed Automatic LX (Model FA1F5AEW) for $230.00 per month for 36 months with a no capitalized cost reduction available to customers who qualify for the HFS Super Preferred or Preferred credit tier. $0 due at lease signing offer requires dealer contribution, which could affect final negotiated transaction.
    Dealer contribution may vary and could affect actual lease payment.

    Does it mean that the dealer is effectively reducing the price by X number of dollars, and that they, not Honda, is eating the cost?
  • delta737hdelta737h Posts: 603
    edited August 2010
    ethand,

    Please don't get hung up on things like dealer contribtion because it's absolutely meaningless and irrelavant. As a knowledgeable consumer, you should use national promo lease Ads to collect useful information such as residual factor, money factor, end of lease purchase price, MSRP, acquisition fee, excess mileage charge, and the implied selling price which may or may not be the lowest price that you can get.

    Next, establish the selling price by researching edmunds invoice pricing as well as all incentives available. Check overstock at zag.com for the lowest competitive prices in your area. Then, determine an approriate initial selling price. Don't be afraid to start low. Remember, you can always come up but never down. Next, determine what items you want to pay upfront and those items that you want to capitalize in the lease. I don't advise making a down payment because if the car is totalled or stolen, and never recovered, you may lose all or part of your down payment.

    The key to leasing is to establish the selling price first. And, from that point forward, everything else falls right into place. Remember that every leased car is a sold car. Someone is buying it and that someone is usually the fund provider (e.g., AHFC).

    There are three (3) basic equations useful in leasing...


    Gross Cap = Sell Price + Amounts Capitalitalized (1)
    Adj Cap = Gross Cap - Cap Reductions (2)
    P = F x (C + R) + (C- R)/N

    P = Monthly Payment
    F = Money Factor
    C = Net (adjusted) capitalized Cost
    R = Residual Value
    N = Term

    Simply apply these basic principles and you're on your way!

    Questions? Let me know.

    John
  • ethandethand Posts: 4
    Thank you for all your information, John. I'll look into the pricing on zag.com as you've suggested.

    It would appear that one of the 3 basic equations can be applied to arrive at a monthly lease payment. Can I do so to reach the monthly payment I want to spend? How would I take that to a dealer?
  • delta737hdelta737h Posts: 603
    edited August 2010
    ethand,

    You may want to enter a search on "lease proposal" and look for my posts (delta737h) regarding same. I've done a ton of these all over various Edmund's forums; some with extensive explanations. Basically, you need to construct a one-page lease proposal on your letter head. It must be professional looking and contain no errors of any kind. This will require researching the selling price, money factor, residual factor, etc.

    If you like, email me at

    diffeq@zoominternet.net

    and I'll be happy to send you samples.

    John
  • Hello,

    This is the first time I am leasing the car and I have got the following numbers from one of the local Honda Dealers in Philly Area. This is for 2010 Honda Civic LX Sedan with Auto. Transmission. Can someone comment on it and let me know if I can do better than this by emailing other dealers in my area? Here are the numbers:

    MSRP: $19,155
    Down Payment: $0
    Term: 36 months
    Rate: 0.00127
    Residual Value: $11,684.55
    ACQ Fees: $595.

    Monthly Payment Quote: $205.06 including tax,title and registration (NJ) for 36 months with no payment, no security deposit for first month. so basically we will be paying for $205 payments for 35 months plus some dealer perks like free airport parking, free oil change and no disposition fees at the end of lease with upto $1500 wear and tear allowance and gap insurance from Honda FS.

    Thanks for reading this and your suggestions in advance.
  • No takers for my post! Let me know if I am missing some information or asking in a wrong forum.
  • dwynnedwynne Posts: 4,018
    Right forum and right info, but you are missing the negotiated selling price (gross cap cost). That plus the dealer's doc / prep fees represent what you are paying for the car. We can compare that against invoice or what others are paying and see if you deal looks OK, poor, or super. The MF and residual at set by HFS and can't be changed, so the main variable in the lease deal is how low you can get the price, including any dealer fees. in your area the title, taxes, and other non-dealer fees should be the same no matter who you lease the car from.

    On the surface and not knowing your taxes, I would say that it is a decent deal. We got the same car a couple of months ago for a little less per month, but paid first payment, tags, and title at signing - so your deal is better (depends on taxes and fees).

    HFS has no disposition fees at the end of ANY of their leases and all include wear and tear forgiveness in them, so the dealer is blowing smoke with those "perks" which would come from any HFS lease from any dealer.
  • junooni110junooni110 Posts: 4
    edited August 2010
    Thanks a lot dwynne, the price is $16450 + $103 doc preparation fees. In fact here are the full details for this lease:

    Price: $16450
    Term: 36 months
    MF: 0.00127
    MSRP: $19155
    ACQ Fees: $595
    Govt Fees: $306
    Taxes: $488.23
    Doc Fee: $103
    Adj Residual: $11684.55

    so after including taxes, title and registration (NJ), total comes out to be $205.06 for 36 months with Honda is making first lease payment.
  • kingpcgeekkingpcgeek Posts: 985
    So here is how you tell if you are getting a good deal on a lease:

    Invoice of the car you are leasing: $17,706
    Dealer Cash: $1000
    Your Price: $16,450

    $17,706 - $1,000 - $16,450 = $256

    You are getting the car for $256 under invoice. You can consider this a good deal.
  • Thanks kingpcgeek.

    I have another question for the same car, one car dealer is quoting me the price of $14990 for the same model and color (but they are some 100 miles from my home). Now my question is; What will be the lease payments on this car? I have asked him to send me the detailed pricing information (dealer doc fees, acq fees etc).
  • dwynnedwynne Posts: 4,018
    You need to include the dealer fee in with the price, as (most places) they can vary widely.

    In June, my son's LX sedan w/auto was $15,999 + $398 dealer fee = $16,397.

    In any case, adding in his fee keeps the car under invoice which is always a nice price :)
This discussion has been closed.