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Honda Ridgeline Lease Questions

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

Car_man
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  • I got $259+ tax a month for 36 months, $2915 down, on an RTS with a $19494 residual. For that $$$, I can live without the sunroof. It's almost as cheap as cash as I can put what I was going to pay in a money market account or cd. I couldn't pass it up as my 1986 Toyota pickup had just croaked and I didn't have all the cash yet for my Ridgie. For cash, the truck would have cost $29590+ tax, $31385.40, before I beat the dealer down more on the price. This way, if I buy it at lease end, it costs $33533.88 with tax. Financing at the most favorable rate, 3.9% simple interest, with the same down payment for three years would have brought the total with tax to $334716.43.

    Summary: Cash is King; lease cost $2148.48; financing cost $3331.03, not counting interest earned elsewhere.

    Drat, forgot whether cash or the financing route included tag and title fees. My lease includes that stuff.

    Also, if the truck holds its value the way Accords, Pilots, and Odysseys do, by my reckoning, it may have a nice amount of equity at lease end.

    By the way, when I went by the dealer to have the running boards put on, the salesman came up to me and asked me to refer my friends to him, but "Please don't tell them how much you paid." ;)
  • Congratulations on your new truck, hazcat. Thanks for taking the time to share your lease experience with everyone.

    Car_man
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  • For an '05 or an '06 Ridgeline for a 24 month lease. If any lease incentives are available, that would be appreciated too.
  • Hello shfawaz. If you were to lease a 2006 Honda Ridgeline RT through American Honda Finance Corp. right now for 24 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00160 and 68%, respectively. Honda is not currently providing any cash incentives on AHFC leases of this truck.

    Car_man
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  • Looking at Ridgeline RTL w/Navi for $31,249. Need a lease for 36 months, 12k miles with either 0 down or $2000 down. I was given a monthly payment of $457 and $409 with a .00215 factor through Honda (I believe).

    Should I push for a better payment?
  • Greetings jbam1. The lease money factor that you were quoted for this truck definitely looks a little high to me. Honda Finance's current buy rate lease money factor for a 36 month lease of any 2006 Ridgeline is only .00160 with the payment of a security deposit and Honda Finance's $595 acquisition fee. It looks as though the dealer that you are working with may be marking-up Honda's base money factor for this truck to add additional back-end profit to your deal. Make sure that it uses the buy rate to calculate your truck's payment. I would be happy to calculate a sample lease payment for you on the truck that you are interested using the base lease program if you let me know what its full MSRP (with the destination charge added in) is.

    Car_man
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  • Hello car_man. I just recieved a lease offer on an 2006 ridgeline rts with a msrp of $30625. The price is $27256 for the truck. $625 down with payments of $351/mo.for 36 mos. and 12k mi. per yr. I was told the residual is 61% Do you think I can do better?
  • Kayakdog,

    This sounds like a good deal. It is very similar to what I worked out a few months ago. It looks like you are getting the RTS for very close to invoice. You should take note of the lease money factor (interest rate) as it is very important. To get a rough estimate of what it equates to as an interest rate, multiply it by 24. For instance mine was .00147 which converts to an interest rate of about 3.5%. I also believe that the money factor is set by Honda Finance. The one difference I see in your offer is that the residual is only 61%, it was 62% when I leased my RTS a few months ago.

    Pull the trigger and enjoy your Ridgeline.
  • Sorry to break it to you, but I've leased several Hondas and unfortunately I don't think I've ever had any equity at lease end. My guess is you'll be upside down too. :( Just don't get your hopes up.

    Everyone pays the tag and title fees.
  • europ91europ91 Posts: 13
    I have owned several Honda's and had only leased one prior to my Ridgeline. I leased a 2000 Odyssey LX for 36 months, 45K miles and at lease end I had about $2,300 in equity. The vehicle was worth about 16K and my buyout price was $13,750. I don't know if this is typical or not. The Odyssey's supply was lower than the demand for a few years which probably contributed to this.
  • Hello kayakdog. You are in luck if you have not leased this truck yet. Honda recently enhanced its lease program on it. I will estimate what its lease payment should be like for you using the prices that you mentioned and the new improved lease program. According to my calculations, if you were to lease a 2006 Honda Ridgeline RTS with an MSRP of $30,625 and a selling price of $27,256 through Honda Finance right now for 36 months with 12,000 miles per year, its zero down, pre-tax monthly payment should be around $258. As you can see, this payment is much more attractive than the one that you were quoted last month.

    Car_man
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  • Car_man I have not pulled the trigger yet on a RTS lease. The dealer I've been dealing with nearly had me. Today I was there and they tried to get me to agree to a 36mo.,12mi./yr. lease with a trade allowance of $13500 on my 2003.5 Mazdaspeed Protege with 18,000 mi. and a loan balance of $11040. Giving me $2460 of equity. They changed the selling price to $27577.22 and the MSRP to $30590. The residual remained at .61%.and a money factor of .00055. They quoted me a monthly payment of $250.64/mo. The numbers don't add up. If I use the Edmunds lease calculator I come up with a monthly payment of $235.76. However, in light of your information my $2460 of equity should reduce my payment under $200/mo. How do I get the new Honda lease information since the dealer didn't mention it?
  • fsufanfsufan Posts: 35
    Car_Man, what do you see as the best deal out there now regardless of vehicle type?
    I guess what I'm asking is which vehicles have the best combination of high residual value and low interest rate for 36 month leases with mileage of both 12k & 15k per year. Reading the boards it looks like it may be the Ridgeline?
  • sinysiny Posts: 4
    CAR MAN I JUST RECEIVED THE FOLLOWING LEASE OFFER ON A 2006 RIDGELINE RTL W/ MOONROOF.
    SELLING PRICE $28875.00.
    10,000 MILES PER YEAR ( I DONT DRIVE OVER 9000.00 MILES IN A YEAR).
    0 DOWN.
    RESIDUAL VALUE $19582.00.
    MONEY FACTOR .000555.
    $317.00 + TAX FOR 36 MONTHS.
    YOUR COMMENTS ON THIS HONDA OFFER.
  • Please tell Car_man the MSRP of this Ridgeline... He'll need that info to evaluate your deal..

    regards,
    kyfdx
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    Moderator - Prices Paid, Lease Questions, SUVs

  • sinysiny Posts: 4
    CAR MAN THE MSRP ON THIS RIDGELINE IS $33190.00.
    THANKS
  • > The vehicle was worth about 16K and my buyout price was $13,750.

    That's impressive. I still assume having equity at the end of a lease is rare, unless your payments were exceptionally high.
  • I saw this advertised on TV and pulled this from honda's website:

    2006 Ridgeline RT (Model YK1626EW). MSRP $28,250.00 (includes destination). Actual net capitalized cost $27,277.90. Total monthly payments $11,718.00. Option to purchase at lease end $16,385.00. 15 cents per mile over 12,000 miles per year with MSRP less than $30,000. For vehicles with MSRP of $30,000 or more, mileage cost is 20 cents per mile over 12,000 miles per year. For $279.00 per month for 42 months with a $326.00 capitalized cost reduction. $1,500.00 total due at lease signing (includes first month's payment, security deposit, acquisition fee and capitalized cost reduction; total net capitalized cost and base monthly payment does not include tax, license, title, registration, documentation fees, options, insurance and the like).

    I've never leased before, is this a good deal?
  • The lease program from Honda Finance is pretty strong, but the advertised lease only assumes a $650 discount from MSRP... If there is competition in your area, I could see you negotiating a lower price...

    regards,
    kyfdx
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    Moderator - Prices Paid, Lease Questions, SUVs

  • tawneycattawneycat Posts: 114
    It seems good until you realize the dealer using a cap cost of $27,xxx is only giving a $1000 discount. Now if you get them to drop the bogus cap cost reduction and first months rent and go to 15,000 mile year --that is a good deal. bottom line dealer is making good money on this lease deal more than a straight purchase.
    You should fight for another $1000 off in whatever form, less upfront.
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