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Honda Ridgeline Lease Questions

CarMan@EdmundsCarMan@Edmunds Posts: 38,515
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.
  • kyfdxkyfdx Posts: 27,881
    Please tell Car_man the MSRP of this Ridgeline... He'll need that info to evaluate your deal..

    regards,
    kyfdx
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  • 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?
  • kyfdxkyfdx Posts: 27,881
    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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    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.
  • Looks to me like they're buying a higher cap cost with a low money factor (.00055 or 1.3%). Let us know if you are successful in negotiating a lower cap cost with this low money factor.
  • postalpostal Posts: 3
    Hello Car man My Honda salesman is flipping out at this estimate. I am in the New York area and I want the same deal as kayakdog. Can you tell me the formula to use to get this result. First time leasing. Thanks.

    Larry B
  • Hey kayakdog. Honda Finance's October buy rate lease money factor and residual value for a 36 month, 12,000 miles per year lease of a 2006 Ridgeline RTS are .00042 and 61%, respectively. This informaiton is definitely right and your dealer will know it when confronted with it. Demand for the Ridgeline is soft enough that you should be able to get the dealer that you are working with to lease you one using this money factor, assuming that you qualify for Honda Finance's top credit tier and pay a security deposit.

    It's really not in your best interest to use the equity from your trade as a down payment on this lease. I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your Ridgeline would be exactly the same, regardless of whether you had put several thousand dollars down, or had made absolutely no down payment at all. If you really want the convenience that trading in your vehicle will provide, have the dealer that you are working with cut you a check for it rather than using the proceeds as a cap cost reduction.

    Car_man
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  • That's a good question, fsufan. There aren't any lease programs out there right now that completely blow me away, but there are still some models that have good programs available on them. Since nothing really stands out, tell me what sort of vehicle or vehicles you need and I will give you a short list of vehicles in that category that have good lease programs.

    Car_man
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  • Greetings siny. Both the selling price that you were quoted for this truck and the money factor that was used to calculate its lease payment look attractive to me. Let's calculate a lease payment on it using Honda Finance's actual lease program to compare with the payment that you were quoted. According to my calculations, if you were to lease a 2006 Honda Ridgeline RTL with a moonroof with an MSRP of $33,190 and a selling price of $28,875 through Honda Finance right now for 36 months with 12,000 miles per year (I haven't seen Honda Finance's residual values for a lease with only 10,000 miles per), its zero down, pre-tax monthly payment should be around $279. As you can see, the payment that I came up with is lower than the one that you were quoted. One possible explanation would be if you were having your truck's security deposit waived and/or its acquisition fee added into the capitalized cost.

    Car_man
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  • Hi racheysdad. Since you are new to the world of leasing, 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.

    Honda's lease program on the 2006 Ridgeline is very attractive right now. Like most manufacturers' advertised lease payments, there appears to be a little room left for negotiation with this deal. The '06 Ridgeline RT lease that Honda is advertising right now assumes just over a $600 dealer discount on a truck that has over a $2,700 spread between its full MSRP and dealer invoice prices. I wouldn't be surprised if you were able to negotiate at least another $1,000 off of this truck's selling price. Doing so would lower its monthly lease payment. For more feedback on Ridgeline pricing, stop by the following discussion: "Honda Ridgeline SUT: Prices Paid & Buying Experience".

    Car_man
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  • Hi Larry. The formula that is used to calculate vehicles' lease payments is outlined in the following article: Calculate Your Own Lease Payment. Use it, along with the MSRP and selling price of the truck and Honda Finance's 2006 Ridgeline RTS 36 month, 12,000 miles per year money factor of .00042 and residual value of 61% to calculate your truck's lease payment.

    Car_man
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  • fsufanfsufan Posts: 35
    Thanks for the reply Car_Man. I'm really flexible about the type of vehicle, but if I had to stick to one, it would probably be a 4 door sedan midsize-entry level luxury type car. I'm not pressed into buying immediately, so if something really jumps out as being a good deal, please post it. Also, what are your thoughts on the lease deals upcoming in November. I know its all just conjecture at this point, but all the recent news points to October as being one of the worst sales months in recent memory. Is this going to have an impact?
  • sinysiny Posts: 4
    Thanks Car_Man for your input. I called the dealership and requested that they
    examine the lease price that they quoted me. I told them that i felt it was on the high side. I was told that there was very little play with the leases and that the price that i was quoted was their "No Haggle Price" . I believe that they won't get back to me by this weekend to test my interest in the Ridgeline. I feel that eventually they will counter with a lower offer giving into the pressure of a slow market for trucks, competitive discounts from other truck manufacturers, and dealership end of month sales goals. I'll keep the board up to date on my results.
    Thanks for your help.
    siny
  • tawneycattawneycat Posts: 114
    OK, I have leased before when manufacturers offer subsized ones. 96 Senta for 129 a month and no down, no 1st payment, no fees for 24 months. Hated the car but for the price....
    anyhow, Ridgeline appears to be great bargain IF you can pay close to invoice on cost.
    In fact the lease is so cheap I would lease and then buy the truck at the end if I really liked it.
    Someone inform me on this. Can the dealer simply sell close to invoice (cap cost) and still make all the fees and holdback like a new sale? The prebuilt honda leases only offer a $1000 discount.... It seems to me dealers make more on leases then straight out purchase. Bottom line if someone can neg cap cost to invoice then payment drops nicely to around $250 for the base RT at 36 months with only about $600 up front. They advertise a $279 x 39 months with $1500 down which appears good until you know the dealer is making about $2000 on the deal.
    Someone posted some honda leases where the dealer was discounting RT to the $24,200 level for purchase and close to invoice on lease --since no factory to dealer cash on lease I assume.

    http://hondaofbloomfield.com/Specials-PrintAd.aspx
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