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Honda Pilot Lease Questions

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Comments

  • kyfdxkyfdx Posts: 27,671
    Sales tax in Illinois is calculated on the entire selling price of the vehicle.. You can pay it upfront, or roll it into the payments..

    It's very expensive to lease in Illinois..

    Depending on where you live, you'll need to watch out for the Chicago lease tax.. That is an additional tax on the monthly payment.

    Good luck!
    kyfdx

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • Thanks for the info.

    I want to email several dealerships around the area. What information do I need to get from them in addition to:

    Base Cap Cost
    Costs added to Lease
    Cap Cost Reduction
    Residual Factor
    Money Factor
    Lease Term
    Mileage
  • dwynnedwynne Posts: 4,018
    Negotiate the price on the price first - you do have to let them know you are leasing since in this case it effects the amount of the dealer incentive. But you want to be around invoice less incentive ($1,500-$2,500) for the Pilot, destination, and any dealer doc or prep fees. I have never heard of a Honda dealer marking up lease rates, but I suppose some of them could do this. Once you have the best price, the other numbers like taxes, tags, title should be the same wherever you lease from - the same for the lease MF and residual. Just plug the price in and figure the payments.

    IL is one of the states with the special discounted lease rates. Good thing, since having to pay state and perhaps local tax on the whole Pilot would pretty much mean leasing would not be smart without such a cheap rate.

    Dennis
  • bigdadi118bigdadi118 Posts: 1,207
    Remember this is not standard charge in leasing. The floor manager at Boch Honda in Boston area always add the destination 600's. DO NOT bite this bait. They will take it off if one protects. Bank Acqui fee 500's is somewhat standard though.

    The lease should contain below upon signing. Anything else tell them take it off.
    1st month payment
    Tax
    Bank Acqui Fee
    Doc/Adm Fee
    Reg/Plate Fee
  • dwynnedwynne Posts: 4,018
    You do not understand, you do have to pay the destination charge it is standard on every vehicle sold.

    What Boch and many other dealers do is list prices on their web page, ads, and in e-mail and phone offers that DO NOT INCLUDE the destination fee. This makes their numbers sound a lot better than the competition and is used to lure you onto the lot where they then add destination back onto the price. Dealers do the same thing with a high doc or prep fee - they advertise or give out a good price, then sock the fee on top of it once someone tries to lease or purchase the vehicle.

    A smart shopper makes sure that all quotes they compare include the vehicle, destination, and any dealer dor or prep fees. Then you compare these quotes and choose the lowest and THEN you go to the dealer to get it. If you are not specific that you want the quote to include these three things then you will be fooled into going to a dealer that will try to inflate the price on you. If they do give you quotes that include everything and they try to add something once you are there, just leave.

    The bank fee / acquisition fee is $595 with AHFC and does have to be paid on every lease.

    Dennis
  • bigdadi118bigdadi118 Posts: 1,207
    I talked live online with Boch's internet sales person and I printed the conversation out. I asked the amount due at signing and the breakdown. Online he didn't quote me destination charge. I brought along the print out and showed it to that floor manager as soon as he showed me his figure due upon signing w/destination charge. He saw my printout then simply crossed it out and go in the office & come back again some other numbers. He just play around some numbers and intends to squeeze buyers as much as money as possible for the dealer.
  • dwynnedwynne Posts: 4,018
    If you specifically asked if the price included the destination and he said it did, then they lied and tricked you onto the lot hoping you would do the deal anyway.

    If you did not ask if it was included, then they just tricked you into coming onto the lot hoping you would do the deal anyway.

    Either way, bad dealer - no biscuit :D .

    Dennis
  • I am not sure that Honda charges a bank fee - and the security deposit is dealer optional - I havent had one on my last 2 hondas

    Here is the deal that I am picking up before the end of the month.

    It is the regional deal with a little improvement

    4WD Honda Pilot VP
    $335 a month (that includes sales tax in NJ) - sales tax in NJ is 7% on just the monthly lease payment - the base number is $314
    36 months, 36k miles
    $500 down and also $280 for 3 years of motor vehicle fees - the car wont need registration again while I own it

    I thought this was a pretty good price
  • dwynnedwynne Posts: 4,018
    I am not sure that Honda charges a bank fee - and the security deposit is dealer optional - I haven't had one on my last 2 hondas

    The acquisition fee / bank fee is $595. Security deposit is not "Dealer optional" it is required or waived by AHFC. For top tier lessees and returning lessees it is normally waived. If it is not, you can bump the MF up by 0.0001 (IIRC) and AHFC will waive the security deposit.

    You should not base your deal off on any published Honda "special" deals since those leave a lot on the table. You should negotiate the price of the Pilot down to invoice less incentive ($1,500 for the VP with cheap lease) for the vehicle, destination, and any dealer doc/prep fees - or less. Based on what you posted, I have no idea if you got a good deal or not - tell us how much the Pilot was and the dealer fees.

    Dennis
  • bigdadi118bigdadi118 Posts: 1,207
    Herb Chambers Honda (Boston) internet sales refused to quote any price over the phone or by email. They require me to go to the dealership to work out the numbers.

    Of course I refused and say "Thank you very much. I won't come down until I have some solid numbers that I understand. See you later!"
  • After getting some responses from dealers, my best first quote on E XL Nav is:

    36 mo/12k miles/year
    MSRP 36280
    Invoice 32905

    Base Cap Cost: 28,857
    Downpayment of : 2918.90 (including tax of 2326, 1st mo pmt of 424.90 and Title/Lic of 168).
    Residual of 18,140
    Payment of 424.90

    No info on money factor

    I have another quote, but nowhere near this one.
  • josephd05josephd05 Posts: 46
    Anyone have any predictions for a 2009 pilot Touring model? Sticker probably around 40k. Looking for 3 year, 15K per year lease with only inceptions down.
  • dwynnedwynne Posts: 4,018
    Probably be just like the new Accord when it came out - high MF like 0.00255 or so with dealers not discounting off of MSRP to milk the most out of the suckers, I am mean customers, that just have to be the first on the block with the new model.

    Looking at the pictures and specs *I* don't see enough to make me want to wait for an 09 - for sure if you live where the cheap lease is still in effect. Getting an 08 Pilot now for down into the hold back, less incentive, with a 1% or less lease compared to getting an 09 for MSRP at over 6% is, to put it mildly, a staggering amount of difference.

    I would think the new Pilot is not going to sell any better than the current one, if fact it should be worse given the direction of gas prices. If you wait a few months after launch Honda will probably have to put incentives and cheap leases on them to move them. You may have to be patient, but in car buying the one in the hurry usually pays the most money :D .

    Dennis
  • jcgray49jcgray49 Posts: 1
    Greetings

    It is my understanding that a gentleman named Dennis is the guru of leasing questions. If anyone else has experience with the following question, please feel free to share your experience.

    Does American Honda Financial Corporation (AHFC) negotiate on the residual price of a lease buyout IF the vehicle (2006 Pilot EXL-Navi in this case) has an actual book value that is considerably less? My 06 Pilot lease is up in July 2009 and has a residual of $19,200. I believe that price is going to be considerably more than most people would pay considering the skyrocketing fuel prices driving down the SUV market.

    I know it's not often that Honda has vehicles that depreciate quicker than normal, but I think the Pilot will and has become one of them.

    Regards,
    Jeff (Ohio)
  • bigdadi118bigdadi118 Posts: 1,207
    in car buying the one in the hurry usually pays the most money .

    This is absolutely correct. I went down 4 times total of 3 different dealerships and I am still searching best deal. Once you are in hurry, they hook the fish, Catch Of The Day. I always begin with email price quotes.
  • josephd05josephd05 Posts: 46
    Well I would never lease a 2008 Pilot. I'm 6'4", the legroom is not sufficient and no telescopic steering. The 2009 has about 1.5 inches of additional legroom and telescopic steering. Makes a world of a difference when you're my size.
  • dwynnedwynne Posts: 4,018
    Not that I am aware of. Most least banks do not negotiate buyout now - they purchase residual value insurance. Under the insurance terms the car has to be auctioned off and then they pay the difference. If they sell it to you at a discount, the insurance does not make up the difference.

    Even if AHFC does not take out insurance (and they may not since their leases usually feature artificially high residuals) they don't want to discount the cars. I think they prefer the lessee to lease or buy a new Honda instead of making them a deal on the old one. Also, off lease cars are a good way for dealers to get their hands on low mile, 3 year old cars to CPO and sell. If they have a choice of letting a dealer make profit and leasing you a new Honda OR giving you a better deal they would choose the former - I would think.

    I have been told if you want to buy out the Honda through a dealer they will discount it $500 to that dealer so that they can make a little money on the transaction. So it should be easy to find a dealer willing to do the deal for the buy out price (since they make $500). If you were friends with a GM or something at a Honda store maybe they would give you some of the $500? You can also buy it direct from AHFC if you want to.

    My 05 S2000 lease ends in a couple of months and I am trying to decide if I want to buy off the lease or turn it in and lease a new 08. The trade value of the car is $2k or so under residual so the auction value is even worse. If I could get a deal I would just keep it, but overpaying for it used does not make much sense when I can get a new 08 priced into hold back with a pretty cheap lease.

    All of that said, who knows what will happen in 15 months? If gas is $6 a gallon then you may not want to keep it either. Honda can't sell Pilots when gas was < $3 a gallon so they REALLY will struggle as prices rise - and used ones will not sell for much if new ones carry big incentives (as they do now). So they could offer you a discount to keep you from turning it in or keep financing or both. Historically they do not, but you never know.

    That is the nice thing about the lease - they take the chances on future value and not you. If the car held value better than expected (as my 01 S2000 did) then the buy out price is a bargain and you could take it (or sell or trade it for profit). If the car value tanked, you just turn it in a go get something else.

    Dennis
  • dwynnedwynne Posts: 4,018
    Then just be patient if you want a deal. It may take a bit, but they will have incentives and cheap leases. We looked at an 05 Pilot 3 years ago (we ended up leasing an 05 Accord) and they had big money incentives, cheap leases, and or cheap financing then. While I did not follow prices for the last 3 years, I would guess that there was hardly a month between then and now when they didn't have some help for the dealers on Pilots. So it was no surprise when the Accord lease was ending that we found we could still get a super lease deal on an 08 Pilot :D .

    They just can't sell Pilots - the current model nor will they be able to sell the new model either. Never have, probably never will be. So for sure cheap deals will follow once the initial sales spurt is over.

    Dennis
  • jetfanjetfan Posts: 55
    car_man: Looking to lease a 2008 Honda Pilot for 3yrs, 12K a year. I have been told that Honda has 1K rebate and/or lease cash available. Can you let me know what the residual & money factor should be for this vehicle. I am pretty sure they quoted me 51% which seems low for a Honda. Also, I am in no rush to lease as my existing lease does not end until June, do you thing better deals will come as the 2009 Pilots arrive next month? Can I expect better lease cash? Same residual? Thanks.
  • bigdadi118bigdadi118 Posts: 1,207
    In the Honda MFG site, you can view the NATIONAL & REGIONAL Special Leasing offers. All the offers on different Honda models are available there.

    It allows you to view details & print out a certificate to bring to Honda dealers. This way you don't need to negotiate any, can choose your favorite colors in & out (offer is good for EVERY vehicle under same Model# & MSRP) which is better than specials restricted to 1 to 2 car only on newspaper ad.

    Plus saw ad. promotion that a honda dealership advertised guarantee 120% KBB fair value Trade-In, this 120% is about = the Excellent Trade in value, that most dealership won't pay as high as figure in Excellent condition.

    Based on my regional offer ($259 vs $279/mo.), ONLY TO RESIDENTS OF: CT, DE, IL, IN, KY, MA, ME, MI, NH, NJ, NY, OH, PA, RI, VT & WV
    I just leased 08 AWD VP 3yrs/12K mi at
    $259/mo., $2499 due at signing, (1645 cap cost/down, 595 acqu fee, 259 1st payment)

    http://automobiles.honda.com/current-offers.aspx?ModelName=Pilot
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