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Honda Ridgeline Lease Questions

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi utvolman. You really would be better served by having the dealer you are working with cut you a check for your trade rather than using the proceeds from it as a capitalized cost reduction for your lease. I always advise community members against making cap cost reductions when leasing because if their leased vehicle is totaled in an accident or stolen and never recovered, their cap cost reduction essentially disappears. You can always use the money that the dealer gives you for your trade to supplement or make a few of your monthly payments for you if you want.

    Let's estimate what your lease payment should be for the truck that you are interested in. According to my calculations, if you were to lease an '06 Honda Ridgeline RT-L with a sunroof with an MSRP of $36,000 and a selling price of $32,500 through Honda Finance right now for 24 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around a whopping $676. The payment for an otherwise identical 36 month lease would drop to a more reasonable, yet still high $530. If you were to make a $3,600 cap cost reduction, these payments would drop to $513 and $421.

    Car_man
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  • jakejjakej Posts: 13
    I am looking into leasing a Ridgeline, but am leery at the same time due to some horror stories I've heard of when a customer returns a leased vehicle....I take relatively good care of my vehicle, but how often do people get burned? Looking for your feedback Car Man. Also, one current lease offer is 298 per month for 48 months with 999 due at signing. The only problem is that I want to lease for 36 months. Can you tell me what I would likely be looking at for a payment for that time span, Car Man? Thank you. :D
  • maddoggermaddogger Posts: 1
    Any idea when the 2007s come out?
    Any changes?

    Anyone know historically how Honda incentives run? Ex: Better lease rates early in the model year and then more cash back incentives later in the year?

    I know the domestics always have incentives, is this true for Honda as well or are there times there are none?

    Thanks!
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    I wouldn't worry about leasing a vehicle through Honda Finance if I was in your situation, jakej. I have spoken with literally hundreds of community members who have lease through them without incident and have personally leased three vehicles through them myself. The lease-end process has gone very smoothly every single time. I would be happy to give you an idea of what it should cost to lease the truck that you are interested in for 36 months, however in order for me to do so I need you to provide me with its full MSRP and approximate selling price. Let me know and I'll run some calculations.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi maddogger. Actually Honda Finance just published a lease program for the 2007 Ridgeline the other day. This usually means that if dealers don't have this model yet, they will in the near future. I am not aware of any major changes that Honda is making to this truck, but you should be able to find out more information on it by visiting the following discussion: "Honda Ridgeline SUT".

    As far as this model's incentives go, Honda is currently providing $2,000 dealer cash on the 2006 Ridgeline, but it doesn't have any support on the 2007 model yet. I suspect that Honda will introduce a special lease program on the '07 model within the next couple of months and dealer cash on it later on in the model year.

    Car_man
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  • Dealer cash or subsidized rate?

    It seems to me that the subsidized rate is better in many cases... agree?

    Can you run a scenario using the money factor from April with $0 support (say for... an RT-L w/out sunroof for 36 months/15K per... $500 over invoice) vs. the May $2,000 dealer cash (same car, same terms, now $1500 under invoice).

    It seems like the payment will be less with the lower MF.

    Thanks.
  • O... looking through old posts, it appears that one month honda was offering higher residuals on the same model too (vs. factory cash).
  • jakejjakej Posts: 13
    Thanks, Car Man. They were advertising a Ridgeline at $22,777 before TTL. I live in New York State (8%). If you can run those numbers on a 36 month lease with $999 due at signing that would be great. And thanks for your encouraging words. It definitely makes me feel more comfortable about this whole thing.
  • I have a deal pending on a 2006 Ridgeline RTS with an MSRP of 30,625 that is as follows:

    $1200.00 below invoice or $26,421
    36 months and 15K per year
    Monthly lease of 450.38 with a drive off of 668.38

    Does that sound like a good deal? I have never leased before so I need some help
  • hartthartt Posts: 79
    Car_man or anyone else...

    I am trying to find the numbers for a 3 year 15K mile a year lease on an '06 Ridgeline RTL w/SR.
    Any help would be greatly appreciated.
    Thanks.
  • asalieriasalieri Posts: 3
    well i WAS in the market, but have cooled on it for a bit..
    Here in NYC area this is what i came up with:
    RTL SRoof 12K 36 mos. PLUS tournea cover, running boards and roof rack. (these options were approx $2600 dollars, negotiated price and about 800 of that was residualized. this is approx.)
    The upfront costs consisted of the usuals

    Dealer 1: 2700 in upfront costs, 475 /mos including tax
    Dealer 2: 3000 upfront 499/mos incl tax
    (interestingly this dealer was the lowest originally and the place i showed up expecting to sign and take delivery,but"there had been a mistake" blah blah.
    this was their new and improved offer. Potamkin,by the way.
    The originaloffer ,from them via carsdirect.com was, $418.00 mos including tax./ up fronts were, 585.00 at signing.
    Of course I went for it!
    I then talked about the above mentioned dealer add-ons (apprx 2600.00, and a fair amount residualized) and that kicked the price up to 480., and about 650 at sign. Then i show up to signand "Oh! we didnt realize that HONDA Finance squashes the 2000 cash back and also,your credit isnt top tier(and im sittng with an AmEx report in my bag that shows im 780 across the three agencies..I didnt argue,just up and split, not wanting to even vaguely reward that behavior. They emailed me, via my carsdirect contact the new and ACCURATE numbers.

    dealer 3: 1498 upfront 452, plus tax(approx498)

    so in my area , a nicely turned out Ridgeline needs 1500 upfront and 500 a month.
    Im on hold a while, hoping some spec finance comes around

    what do you fellows think of these numbers?
  • Happy 4th to all! Anyone know if there will be a subsidized lease program on the 2007 Ridgelines as of 07/06/06? The old programs seem to expire on 07/05/06 and I do not know if they include the 2007s?

    Thanks,
    Ken
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi granite_stater. It's tough to generalize about which is better, a special money factor or dealer cash because this will depend upon how low a money factor and how much dealer cash we are talking about. Having said this, I will do so anyhow. Special money factors usually result in more attractive lease payments than dealer cash and no special factor does. One of the reasons for this is that manufacturers often replace their special money factors with dealer cash at the end of the model year. By that point, vehicles' residual values are much lower than they were at the beginning of the model year. The lower a car or truck's residual values are, the higher its monthly payment will be. If I was in the marker for a Ridgeline, I personally would probably wait to lease one until Honda introduced special money factors on the 2007 model in a month or two.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    You're very welcome, jakej. I actually asked for this truck's selling price and its full MSRP. I can't estimate what its lease payment should be without both of these numbers. Let me know and I'll estimate a payment for you. If you wait a day or two, I should be able to give you an idea of what Honda's new July lease program is like.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi ctrader123. $1,200 under dealer invoice is a pretty good price on this truck. Keep in mind though that Honda is currently providing $2,000 dealer cash on the 2006 Ridgeline, so this is really more like $800 over invoice. I just worked up a lease payment on the truck that you are interested in using the prices that you mentioned in your post and Honda Finance's current lease program and I came up with a 36 month, 15,000 mile per year, zero down, pre-tax monthly payment of $406 assuming that you pay a security deposit and qualify for its "Super Preferred" credit tier. The payment that you were quoted looks slightly high, especially if it does not include tax.

    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.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi hartt. Honda's June lease program is only scheduled to run through the end of today. I'll give you an idea of what its current program is like and you can check back with me in a couple of days for info on its new July program. If you were to lease a 2006 Honda Ridgeline RT-L with a moonroof 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 .00270 and 51%. When negotiating your lease on this truck remember that Honda is providing $2,000 dealer cash on it.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi asalieri. It sure sounds like you've been working with some shady dealers. The $2,000 dealer cash is absolutely compatible with leases of the 2006 Ridgeline through Honda Finance. Furthermore, a credit score of 780 is way higher than Honda Finance's 710 cutoff for its "Super Preferred" credit tier. At least you are in the New York City area. I am sure that there are tons of Honda dealers within driving distance of you. Ditch these dealers and find a new one.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi Ken. Honda dealers themselves may not even know what Honda's new July lease program is going to be like. Most manufacturers do not leak advance notice of what lease programs will be like because if their next program is going to be better everyone would just wait to get their vehicle. I suspect that Honda will introduce a special lease program on the 2007 Ridgeline in the near future. Whether that is July or August is difficult to say at this point. I should have an idea of what Honda's new July lease program is like within the next day or two. Please feel free to check back with me and I will be happy to fill you in on the details of the new program.

    Car_man
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  • Hi.

    Thanks for the comments. Sooo far, their website does not show any 2007 programs - not sure if they will run mid-month or wait another month, 2 or 3....I need to do something soon, so may have to purchase or bite the bullet on the non-susidized lease payment which really hurts.

    Any ideas would be appreciated...

    Thanks, Ken
  • hartthartt Posts: 79
    It looks like this is the month. I will be returning my Pilot the first week in August and would like to have another vehicle before then. There are several vehicles I am interested in so I will be posting questions on the boards of the vehicles I am looking at.
    I would like to know the MF and residual on a lease for an '06 and '07 Ridgeline RTL w/sunroof for 3 years with 15,000 miles a year.
    Thanks for your help Car_man.

    Tim
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