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2013 and earlier-Honda Odyssey Lease Questions

CarMan@EdmundsCarMan@Edmunds Posts: 38,518
edited January 28 in Honda
Hi everyone. Please use the following discussion to post any questions that you have about leasing a Honda Odyssey. Thanks.

Car_man
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Comments

  • Anyone know what residual % and interest rate Honda is using on the 2006 Odyssey EX-L for 36 month leases?

    Thanks
  • Greetings mi_sat. Honda is scheduled to publish its new September lease program some time today. I should be able to find out what the Odyssey's new program is like within the next day or two. Post a reminder in this discussion for me in a couple of days and I will be more than happy to fill you in on what Honda's new lease program for this van is like. Talk to you soon.

    Car_man
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  • Car_man,

    Thank you for your reply. I will be interested in your information so that I may calculate an estimated lease monthly payment.

    I'm not sure how to articulate this question: Does Honda residualize dealer installed options the same way it residualizes the vehicle? I
    ve heard that Toyota has a different residual for its options than the vehicle itself.

    Looking forward to your input!
  • You're very welcome mi_sat. Unlike Toyota Financial Services, American Honda Finance Corp. allows the full residualization of any factory installed options, though Honda doesn't offer much in optional equipment anyhow. Most of its vehicles come fairly well equipped with standard equipment. I am not sure about its residualization policy for dealer installed options. As far as this van's current lease program goes, if you were to lease a 2006 Odyssey EX-L non-Touring and without the navigation or entertainment systems through AHFC right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00255 and 55%, respectively.

    Car_man
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  • Thanks again for your valuable information.

    My opinion: Honda's finance rate is absurd. 6.1% on a 36 month lease? Yikes. I can get a 60 month car loan at 5.2%. Maybe buying isn't such a bad idea. Payment difference is only about $110/month.
  • dpavdpav Posts: 19
    Car Man - does 12K miles effect the interest rate that much ? 6% for a 36 mo is a bit steep. What about a 39 mo ?

    Thanks
  • Mileage won't affect interest rates, only residuals. The interest rate is dependent upon the cost of funds for Honda Credit plus its markupt. Cost is dependent upon the term structure of interest rates (what various rates are for various bond maturities; a/k/a/ "yield curve").

    Given what one can get a car loan from a credit union, I think 6% is too high. But that's just me. Some banks are charging a lot more than that.
  • You're very welcome mi_sat. Most manufacturers' standard finance and lease rates are not very attractive. Honda doesn't need to provide low interest rates on the Odyssey because it sells well enough on its own. Financing this van through an independent bank is not a bad idea.

    Car_man
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  • Dpav, leases' mileage allowances have no impact upon their money factors. Honda finance's standard money factors are exactly the same for 36 and 39 month leases right now, .00255. Its standard factor drops slightly, to .00235, for 42 and 48 month terms.

    Car_man
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  • dpavdpav Posts: 19
    Thanks Car Man -one other question...

    What is the residual on a 36 mo lease EX-L thru Honda Finance (or other bank that you have access to) ? Have you seen anything yet ?

    Thanks
  • See message #5 in this chain of messages.

    Not many banks leasing -- at least that I am aware of.
  • I leased a 2004 Honda Odyssey for 24 months back in August 2004. Is there a way I can get out of the lease earlier, so I can purchased a new 2005 Honda CRV?
  • Do you know the current Base MF, Base Acq Fee and residual for a maxed out 06 Touring Odyssey for 36 mos @ 15,000 per year?

    Thanks.
  • You're welcome dpav. If you were to lease a 2005 Honda Odyssey EX-L (non-Touring and without the entertainment or navigation systems) though Honda Finance for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should currently be .00255 and 55%, respectively.

    Car_man
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  • Hello wfmud1977. I am sorry to say that it is usually fairly expensive to get out of leases well before their scheduled end dates. In order to do so, you need to purchase the vehicle that you are currently leasing from the bank that you are leasing it through. It often turns out that it costs more to do so than your vehicle is worth on the open market. Furthermore, many banks expect consumers who end their leases early to still make all, or at least the depreciation portion of their remaining lease payments. As you can see, this can get very expensive.

    You can determine approximately how much it will cost you to get out of your current lease by comparing its purchase price to its value on the open market at this time. You should place a call to the bank that you are leasing your vehicle through to find out its exact price. Once you know exactly how much money it is going to cost you to buy your leased vehicle you need to compare it to its current value on the open market. You can find out approximately what your vehicle is worth by looking up its Edmunds.com True Market Value in the Used Vehicle Pricing section of this site. You also may want to stop by the following discussion: "Real-World Trade-In Values". One of our most knowledgeable community members, Terry, frequents that discussion and he is often kind enough to give community members who give him an accurate description of their vehicles with his opinion on their value. Don't forget to check to see if you are still on the hook for your remaining lease payments. The difference between your leased vehicle's current value and how much it will cost you to buy it plus any remaining lease payments that you are obligated to pay will equal the cost of getting out of your lease right now. You may find that you are better off waiting until you are closer to the scheduled end of your lease to get another new vehicle.

    Car_man
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  • Hi gcr01. According to the latest information that I have seen, if you were to lease a 2006 Honda Odyssey EX-L Touring without the entertainment or navigation systems 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 .00255 and 59%, respectively.

    Car_man
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  • I am looking for an 06 Honda Odyssey EXL with no DVD/nav.

    I spoke with a dealer by phone and they sent me the lease worksheets .

    1600 down.

    595 acquisition fee

    3yr/45,000 miles (15k per year).

    .20 cents per mile overage.

    Money factor is .00265

    Vehicle price is 29,260 and the Residual is 19,120 (61%)

    It is coming to $429 per month as the total payment.

    Does this sound like a good deal?

    Thank you in advance .
  • dpavdpav Posts: 19
    Two questions : I'm assuming $429 is before taxes ? and what part of the country are you shopping ?

    There arent many banks offering a deal for leasing the Odyssey. HFAC seems to be the "best" relatively speaking. They have a rather high interest rate (6.1) but they make up for it with the high residual values. Most banks have this model at a 58% residual for 12K miles.
  • Thank you for your reply.

    The $429 includes taxes. That would be my montly payment total.

    I am in Florida.

    The money factor is showing .00265 and the residual at 61.00%.

    I believe the lease is through AHFC.

    Thank you again.
  • Hi skiiiii664. The money factor that you were quoted to lease this van looks right to me. This is a good sign because it means that the dealer that you are working with is not trying to mark-up your van's factor to add additional back-end profit to your deal. I cannot give you a complete assessment of this deal through because you never mentioned the selling price or MSRP of the car that you are interested in leasing. 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 happy to give you my opinion on this van's selling price and calculate a lease payment using Honda Finance's actual lease program for you if you provide me with these numbers.

    Car_man
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