2013 and earlier-Honda Odyssey Lease Questions

theflush

How is your "friend" able to buy your van for less than the residual and sell it to you? Does he work for a Honda dealer or can any used car dealer do this? I also have a '04 EX-RES with a residual of $20,575. If I could work a similar deal I would consider it, especially since I will be 5K miles over the limit which will cost me another $750.

Right now I am leaning towards turning the van in and buying an older van to drive for a few years since there are not any good deals like the '04 Ody lease offer. I will also probably extend the lease for a month to give me time to find a suitable used van. Ohio requires that you pay the entire tax bill for the term of the lease upfront, so I am only going to extend the lease 1 month at a time because you can not get a tax refund if you terminate the lease extension early.

I am also tempted to buy a new '05 Mazda MPV LX for <$18K which comes with a 4 year warranty. It's no Ody, but is still a good value.

dad23

He does work for a dealership that has Honda as one of the brands. I had asked the dealership were we bought the van what happens to the ones that get turned in and was told some go to auction and some they buy from Honda for their used lot, but wouldn't buy it and turn around and sell it back to me without running it through their shop, etc. Maybe isell could verify this, but I would think if a dealership wanted a lease return, they buy it from Honda at wholesale, not at the retail or residual amount. It couldn't hurt to ask your dealership if they would do something similar I guess, the worst they could say is no.

sileale

My first intention was to buy a Ody/EX/06.

I got the internet price offer of $24,571 (not bad at all!!) for the EX version.

I went down to the dealer and when I asked the salesperson that at this price I would rather lease, he says the price is not valid anymore and offered a selling price at $26,861 ($2,200 more expensive).

Now I am confused: can I be hard in the negotiation and keep asking for the internet price ???

CarMan@Edmunds

Thanks jenf. I completely understand why you do not like the car buying process. However, if you research your purchase thoroughly and treat getting a good deal like a game, it actually can be sort of fun. Always remember that you have the power in the buying process, not the dealer. You as a consumer can always walk away from a deal that you do not feel comfortable with. Understanding how leasing works will give you added confidence during the shopping process. 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.

I would be happy to estimate what your lease payments should be like on the two prices that you were quoted, however in order for me to do so I need you to provide me with these vans' full MSRPs (including their destination charges). Let me know and I'll run some numbers.

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CarMan@Edmunds

Hi smith83. Honds Finance's current buy rate lease money factor and residual value for a 36 month, 15,000 mile per year lease of a 2006 Odyssey EX-L with both the navigation and entertainment system options are .00270 and 53%, respectively. The money factor for a lease with 12,000 miles per year would be the same, but its residual value would be 2% higher. Using these numbers, an MSRP of $35,145 and a selling price of $33,000, I estimate that your van's zero down, pre-tax monthly payment should be around $539 with 15,000 miles per year and $521 with 12,000.

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sileale

Dear Car_Man
I need to close a deal !!!
My first intention was to buy a Ody/EX/06.

I got the internet price offer of $24,571 (not bad at all!!) for the EX version.

I've got to the dealer and when I asked the salesperson that at this price of $24,597 I would rather lease, he said the price was not valid anymore and offered a selling price at $26,861 ($2,200 more expensive).

Now I am confused: can I be hard in the negotiation and keep asking for the internet price ??? Can the internet purchase price offer be valid for a lease ?

Txs.
Al/Miami

CarMan@Edmunds

Hi dad23. Honda is still not providing any special lease money factors on the 2006 Odyssey. It did however introduce $500 dealer cash on it this month. This cash will help you to negotiate a more attractive capitalized cost on one that you could have last month. In case you are interested in what this van's standard lease program is like, if you were to lease a 2006 Honda Odyssey EX-L with the rear entertainment system 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 .00270 and 57%, respectively.

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CarMan@Edmunds

Hello medmdmd. Honda still is not providing any sort of lease support on the 2006 Odyssey in May. Not only that, but its standard lease program is a little worse this month than it was in April. On a positive note, Honda did introduce $500 dealer cash on the '06 Odyssey. At least this cash will help you to negotiate an attractive capitalized cost if you choose to lease. Honda Finance's standard lease money factors vary depending upon how long you lease. For consumers who qualify for its "Super Preferred" credit tier and pay a security deposit, its 36 month buy rate lease money factor is currently .00270. I haven't heard about any special enhancements for the Odyssey for Memorial Day, other than the introduction of 3.9% to 5.9% financing in a select few states (10 to be exact) for the weekend.

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CarMan@Edmunds

Hey medmdmd. Since Honda is not currently providing any sort of lease support on the Odyssey, its buy rate standard money factor would be the same for all trim levels (see my previous post). Its residual values do vary by trim though. I don't believe that Honda Finance has special money factors for existing customers, other than the fact that it might waive its security deposit requirement without increasing the money factor for repeat customers.

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CarMan@Edmunds

Greetings smith83. If you were to lease a 2006 Honda Odyssey EX-L with RES and navigation 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 .00270 and 55%, respectively for consumers who qualify for its "Super Preferred" credit tier and pay a security deposit. Using these numbers, an MSRP of $35,145, and a selling price of $33,000, I estimate that this van's, zero down, pre-tax monthly payment should be around a whopping $522. With 15,000 miles per year, this van's payment would increase to $539.

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CarMan@Edmunds

Welcome howard2dot0. Honda's current lease "special" on the Odyssey actually isn't all that special at all. It is being calculated using Honda Finance's standard lease money factor. The only thing that's special about the Odyssey right now is the $500 dealer cash that is available on it, and you would be able to get that (assuming that you negotiate it into your deal), regardless of whether you lease, finance or pay cash. Furthermore, your credit score is not high enough to qualify for Honda Finance's top credit tier, so the money factor that you will have to pay is a little higher than the one that the advertised lease you mentioned is based upon.

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CarMan@Edmunds

Hello genester1. In your post you mentioned that you don't care about your vehicle's price, but you need to in order to get a good deal on your lease. The main negotiable factor on leases is the selling price. The lower the selling price of the vehicle that you want is, the lower your lease payment will be. Shop around to get the best possible price on the Odyssey that you want, and then have the dealer that you are working with calculate its lease payment using Honda Finance's "buy rate" lease money factor. Its buy rate factor for a 36 month lease of this van is currently .00270 for consumers who qualify for its "Super Preferred" credit tier and pay a security deposit at signing. Make sure to check out the following discussion to get an idea of how much you should pay for this van right now: "Honda Odyssey: Prices Paid & Buying Experience".

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CarMan@Edmunds

Hi Al. It sounds like the dealership that you are working with is either trying to pull the old bait and switch with you. If not, I don't see any reason why they wouldn't honor the Internet price that they originally quoted you. If I was in your situation I would say "Look, this is the price that you quoted me over e-mail and I won't pay any more than that. Take it or leave it." If the price was realistic, I highly doubt that they will let you just walk away. Given the fact that Honda is currently providing $500 dealer cash on the Odyssey, I suspect that you should be able to get one for fairly close to dealer invoice right now if you are in an area that has a decent level of competition.

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jquackenbush

Hi Car_man,

We are about to buy a 2006 Odyssey EX-L w/RES (DVD)and live in Minnesota. You talked in an earlier post about ten states getting a preferred interest rate for the Memorial Day weekend. Is Minnesota one of those states? Also, we are planning on leasing the Odyssey 36/12,000 or 48/12,000. What are the current money factor and residual rates for the about lease terms and miles? Does $28,724 sound good for a final price? Thanks!

medmdmd

Forums like this may not completely level the playing field (we will always be the away team in a dealer showroom) but it at least defines the ground rules.

Thanks for all your diligent help.

howard2dot0

In Houston, Honda dealers are offering $269/month lease special for LX models. Do you guys think that as the summer car selling season heats up in June and July, that Honda might offer lease specials on other trim levels?
I've kept my eye on either EX-L or EX-L RES for a while, but I want to get a good deal on lease.
What do y'all think?

robertw477

They will do alot better. If you dont want to extend it for a year I am fairly sure they will do 3 or 6 months. I have done this before with American Honda. Wait. They will get itchy once they near the time they call for an inspection. My brother has the same deal but he insists on getting another new one. He knows the last deal was a sharp one.

Rob

medmdmd

Memorial Day "sale price" 2.6% below invoice.

AHFC Lease 36 mos/36k mi;
57% residual;
0.0027 factor;
$595 acquisition fee;

jidichandy

I know there is a lease special on the Ody LX version. Does anyone know if something similar will be offered on EX-L RES this month?

thanks in advance for any info....

momoffor

Car Man I am like jenf- I hate buying cars but I do get your concept of treating it like a game

can you answer a few questions for me

1.if my credit score is 781/830 will I be able to get the best deal as a Honda lease customer?
2. AAA offers a lease negotiation program- where they negotiate the "best" lease price for you- is it worth it
3. I went to one dealer last night and although I don't have all the info in the format you like it with a total out of pocket of 3000, my payments for a 36 month lease on Odysessy EXL/res would be $385 with a residual of 18778.65 at the end of the term. I live in NY and the tax is 8.75% what other information should I be looking for to see if I am getting a fair deal?

medmdmd

Edmunds does not note any Lease specials for Odys this month.

Are there any confirmed Honda Lease promotion for Odysseys from Honda?

medmdmd

Some preliminary questions:

I assume from your residual that you intend 12k mi per year?

Does the lease payment quote include taxes?

Does that lease payment also include all Dealer fees (i.e. Doc, title, reg, tire, acquisition, security deposit, etc.)?

medmdmd

Additional thoughts:

Like you, I am also curious to know the credit score cut off for AHFC Lease top tier rating. At present, I think the best lease money factor available from Honda is 0.00270.

Many warehouse clubs like Costco have an Auto Buying program that often has very fair, no haggle pricing arrangements with select local dealers. Does the AAA service have an additional cost for that service?

There are also some fairly good lease brokers who specialize in auto leases. They negotiate a great price with a dealer but also tack on their own fee into the lease. They sometimes can get a better overall deal especially if you are not inclined to spend the time and effort haggling and researching.

If your lease quote included all taxes and fees (assuming AHFC top rating) and is your final on the road number, it sounds competitive (sale price more than 3% below invoice).

Please keep us all updated on your experiences.

Knowledge is power.

momoffor

Hi Thanks for replying

29,956 purchase price for exl w/ dvd
the lease is 12,000 per year
the taxes were paid up front as part of the 3000 down(1195.42 ny tax, 595 aquisition, 385 first month, 824 down)
36 months at 385
residual 18,788.65

Am I missing something- it seems good but I am no expert- they told me that my credit qualifies me for the top tier program

as for your second post

the aaa no haggle program- it costs nothing you just walk into a qualifying dealer and the price is abt 300 aboce invoice- however I know people who have begotiated better prices themselves and the dealer will tell you you can't combine offers so you don't get the 500 dealer incentive

as for the aaa lease program it also costs nothing- they deliver the car to your door- I have no idea how good it is b/c they haven't gotten back to me yet.

howard2dot0

I just saw on Edmunds that Honda has a new lease special on EX for $309/month. My wife has a FICO score of about 687. Will she qualify?

howard2dot0

Thanks for the info, Car-man.
What about the new lease special on EX at $309/month?
I am debating if I should lease at that price or purchase one with 4.9 % APR for 60 months @ around $500/month payment with $500 down.
Does Honda Financing ever have any APR specials for purchasing?

howard2dot0

Car_man, what about the new $309/month lease on EX that Edmunds is showing?
Still using the standard figures?

medmdmd

I still don't see any lease specials on Edmunds when looking under new minivan honda Odyssey pricing Leasing section:

There are no special lease terms available at this time.

Where on the Edmunds site is this $309 EX deal listed and what are the particulars (how many months, cash up front, etc.)?

howard2dot0

Thanks for the reply.
Below are the specifics. It shows up when I type in my zip code, 77381. It might just be for Houston area.

http://www.edmunds.com/new/2006/honda/odyssey/100625408/incentives.html?vdp=off&- - setzip=77381&state=TX

$309 Monthly Payment
36 Month Term
$1999 Down Payment
$325 Security Deposit
12000 Annual Mileage
Restrictions: Lease based on a 2006 Odyssey EX (model #RL3826EW). Prices include $500 dealer contribution to achieve $309 monthly payment.
Comments: $3,228 due at signing. Dealer participation may vary. Incentives and Rebates are provided subject to the terms of our Visitor Agreement. Tax, tags and insurance are extra.

howard2dot0

cbsprings,
I am looking to lease a 2006 EX in Houston area and where did you get your quote?
If you don't mind me asking, what is your credit score like?
Mine is around 687 and I was wondering if I can get a similar deal.

medmdmd

The tax on the sum of the payments up front instead of on the payment stream threw me off.
I'm not clear on the financial incentive to pay your taxes three years in advance.

Usually the money down (cap cost reduction)is also taxed so your $824 may be also going toward some other taxes and fees.

Again we are assuming this a EX L RES 36/36 AHFC lease at a factor of 0.0028 (highest credit rating with no security deposit and not a repeat AHFC lease customer).

If the monthly lease number and $3000 up front are your final on the road numbers, it looks like a competitive deal.

I am skeptical, however, because your price of $260 over invoice with the above parameters could easily yield a monthly payment of over $420 monthly.

If given the opportunity, it sounds better to take the $385 per month with $3k down and run.

Let us know how the deal plays out.

medmdmd

Thanks. It must be location specific like you noted.

Taking a stab at it here but it looks like an offer of $390 below invoice (including dealer incentive) as a purchase price assuming a 57% residual and top rating money factor.

On some EX trim levels, some people on these forums are reporting much lower prices paid (for whatever that's worth).

howard2dot0

Thanks for the reply.
Should I just go and get the lease special before it ends or should I negotiate for a better monthly payment and wait until July?
$309/month sounds like a good deal to me, but I also want to get the very best deal I could get.

medmdmd

Possibly only you can answer that question in the end and that depends on how much time and energy you can spend.

The cost of a lease depends mainly on the initial purchase price, anticipated value at the end of the term (residual) and the interest rate. AHFC is probably the the primary lease agent for these new Hondas now and they have fair terms that might be hard to significantly beat. With AHFC, the residual and interest are non-negotiable. Getting the best purchase price is thus the only way you can improve your lease terms.

If the reports of EX purchase prices in Texas on this forum are accurate, you should be able to negotiate a much better lease than this "special" based on a much better purchase price. Also, this "special" requires a pretty hefty amount of money up front that you may not need to put down in your own negotiated lease. Lastly, this "special" lease quote does NOT even include any taxes or fees.

I don't know for sure what will happen with these 06 car prices as the 07s are introduced this summer but suspect that deals will continue to be available when dealers are eager to move inventory.

howard2dot0

I truly value and appreciate your insights are on this matter. I will shop for the best purchase price around town then see if I can lease it with only the first month payment as the down payment. Do you think it's reasonable to expect something around $350/month for EX, 36-month, 12k-mi/year term?

roxie1298

Got the following for a 36 month lease, Western Upstate New York region, 8% tax
Honda Odyssey EX: MSRP $28945
Dealer says they are selling for $25,690 ($500 under invoice?)
I can't seem to come up with the same payments they gave me, maybe I'm using wrong money factor or residual.

Dealer gave me the following:
15,000 mile/yr with $671.20 out the door payment
Lease payment including TTL = $421.20

18,000 mile/yr with $695.84 out the door payment
Lease payment including TTL = $445.84
-------------------
So I tried to calculate myself, here is what I did for the 18,000 mile/yr lease:
Net cap cost = $25,690 - 695.84 = $24,994.16
Residual = $15,888.10 ???
Deprec fee = (24944.16 - 15888.10) / 36 = $252.95
Money factor = .002800 ???
Rent charge = (24944.16 + 15888.10) x .002800 = $114.47
Payment = 252.95 + 114.47 = $367.42
Tax = 367.42 * .08 = 29.39
Payment with tax = 367.42 + 29.39 = $396.81

What am I doing wrong? I'm gettingn 396.81 verus 445.84 from dealer

howard2dot0

What is everyone's prediction about 2007 Ody lease specials?
Houston currently has a lease deal for $309/month for 36 months at 12k miles/year with $3200 down.
Would 2007 lease special be better?
When would Honda start offering 2007 lease specials?

seattleml320

MSRP for the vehicle (including destination) $31,345.00

Price offered $28,268.00 indluding destination (invoice)

Trading in for my Accord $19,000.00

(with $17460.04 remaining amount the down
payment will come out to be $1,553.96 + first month payment + title ($249) + $35 doc feet


with Money factor 0.00280 and residual of 59% ($18,453)

my monthly payment comes out to be $368.29 + tax ($405.45 including tax) for 36months 12000 miles
Let me know how I did.

CarMan@Edmunds

Thanks medmdmd . I'm glad that I was able to help you out.

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CarMan@Edmunds

Hello jidichandy. While Honda is currently advertising a lease payment on the 2006 Odyssey LX, this technically is not a "special." This lease is being calculated using Honda Finance's standard lease program. The only special support that is available on the '06 Odyssey right now is $500 dealer cash. Make sure to take it into account when negotiating your van's capitalized cost.

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CarMan@Edmunds

Always remember that you are in complete control of the car buying game, momoffor. If you don't like a deal or don't understand it, you can always just walk away. Your credit is in excellent shape. You should have absolutely no trouble qualifying for Honda Finance's "Super Preferred" credit tier. I am not all that familiar with AAA's buying program, but I personally don't see any need for it. All adding AAA or any other broker to the process does is add another party that needs to profit from your deal. Do some research here at Edmunds.com and find out how much other community members have paid for the vehicle that you want recently. You should be able to get a good idea by visiting the following very active discussion: "Honda Odyssey: Prices Paid & Buying Experience". Once you have an idea of how much you should pay, comparison shop with a couple of dealers in your area. Go with the one that offers you the best selling price and is willing to calculate your lease payment using Honda Finance's buy rate lease money factor, provided that you feel comfortable with them. I would be more than happy to give you my opinion on the lease that you were quoted, however in order for me to do so it would be a big help if you would provide me with its full MSRP and selling price. Let me know and I'll tell you what I think.

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CarMan@Edmunds

Unfortunately, medmdmd, Honda is not providing any sort of lease support on the 2006 Odyssey this month. It does have $500 dealer cash on it though. Make sure to take this cash into account when negotiating your van's capitalized cost.

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CarMan@Edmunds

Hi howard2dot0. I am sorry to say that consumers need a credit score of 710 or higher to qualify for Honda Finance's "Super Preferred" (best) credit tier. A score of 680 does qualify for its "Preferred" tier though.

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medmdmd

I think "super preferred" (over 710) will get a 0.0027 factor with security deposit or 0.0028 without deposit now.

What AHFC terms will a "preferred" (over 680) rating provide?

What other tiers and terms does AHFC have?

What are the AHFC residual formulas now?
12k mi 36 mos 57%
15k mi 36 mos 55%
18k mi 36 mos ??%

How about for the 48 month leases?

medmdmd

I think your residuals are off.
12k mi 57%.
15k mi 55%
18k mi <55% ???

Confirm if your lease is through AHFC and your money factor. Honda also has an acquisition fee of $595.

Is NY auto lease tax 8% or 8.25%?

Let us know what you learn.

medmdmd

As this forum demonstrates, leases are not that straight forward and not for the meek.

Many car buying "experts" including Edmunds suggest shopping for your best purchase price FIRST. If you start with a great purchase price you are in the best position to get a great lease. (See Car Man's advice in post #294 above).

SECONDLY, and separately negotiate the trade if you have one.

LASTLY, if you know your credit rating and the leasing company being used, ask for a monthly lease payment. It is often best to know your actual Capitalized Cost for the vehicle before cranking out a payment number.

Use the leasing calculator (on the Edmunds site or elsewhere) to check the dealer's numbers.

(This assumes that you have already done honest soul searching to determine if leasing a new car is best for your personal situation. In many cases, leasing a new car may not be the cheapest way to drive in the long run).

howard2dot0

Thanks so very much for the info.
As a "preferred" tier, what kind of "due at signing" cost and monthly payment should I expect for an EX?

CarMan@Edmunds

Unfortunately, there's nothing special about Honda's lease program for the Odyssey right now. Its advertised lease for this van is based upon its standard lease program. Honda is providing $500 dealer cash on it though. Make sure to take this cash into account when negotiating your van's selling price. The 4.9% financing for 60 months should like a better deal than the lease to me, as long as you can swing the higher monthly payment.

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CarMan@Edmunds

Yep, howard2dot0, the $309 per month advertised lease payment is still based upon Honda Finance's standard lease program.

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CarMan@Edmunds

Hi roxie1298. Leased vehicles' depreciation is calculated based upon their full MSRPs (including destination charges). It looks like you are using this van's capitalized cost as the basis for its depreciation. This probably explains why you and the dealer came up with different monthly payments.

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