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Honda Ridgeline Lease Questions

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Comments

  • hkingshkings Posts: 74
    Hey Carman,

    I was just curious what the current going money factor is for 08 Ridgelines and current Residuals values for the RTS and RTL (assuming 15K miles per year).

    I've been quoted about 0.028 on the money factor, which seems fairly high. And told about 52 or 53% on the Residuals for both models.

    I've been quoted some very decent monthly rates with pretty much nothing down, but those numbers don;t seem so hot and wondering if I can do better.

    Any and all info is truly appreciated.
    Thanks!
  • aspesisteveaspesisteve Posts: 833
    since carman doesn't seem to be around these days, I'd have to say there's no way you can make a lease workout vs. buying unless Honda is willing to reduce the cost basis of the lease $4,000 below invoice.

    - not with the $4,500 factory to dealer cash incentive.

    Send out some requests to some Honda dealers and see what you can do.

    and please share with us
  • hkingshkings Posts: 74
    Hey Aspesisteve,

    The numbers I got were for a 2008 RTL with a Roof Rack:

    $335 a month (plus tax) with 15K miles a year, for 3 years, with only $700 down total drive off.

    They were basically quoting me $25K on the negotiated sale price based on those numbers.... which means they were indeed coming down $4000 under invoice on a lease. They said money factor was .02 something, and residual was about 53%.
  • aspesisteveaspesisteve Posts: 833
    hkings,

    that sounds like a pretty good deal to me.

    did that quote take much effort to get? Did you have to meet in person or get it through the internet?
  • hkingshkings Posts: 74
    I contacted quite a few dealers... all quotes I received via email and or phone... 3 dealers said they would all do that price.

    My dilemma is this, I own a 2005 Nissan Frontier LE Loaded 4x4 with 60K miles on it. I actually love the truck, but just not thrilled with Nissan in general. Was looking to moving into more refined and safer Ridgeline. Plus I like Honda better in general. Just not sure if it's worth leasing or not. I owe about $9500 on my truck, (plus $11K in other credit card debts) but I can sell it for close to $22K or $23K. Just wondering if I should get out now, pay all of my debts, and just lease for 3 years and hopefully wait for more fuel effiecnt trucks to hit the market. My feeling is gas will only get worse, and value of my truck will take even bigger hits as the years go by. Other thing I was debating was just to buy a used Ridgeline for 15-18K. Anya nd all info is truly appreciated!

    Any thoughts?
  • namakan59namakan59 Posts: 9
    Good luck on getting 23K for 2005. Just bought the RTS out the door for 23560 total.
  • hkingshkings Posts: 74
    23560 OTD is pretty good for an RTS... what state are you in? What was the price before all taxes?

    I have someone all lined up willing to pay $22K for my 05 Frontier now, and he REALLY wants it bad... could get $23K maybe. I made a lot of custom mods to it, so thats why... put almost $5000 extra into truck over the past 4 years.

    What should I do?
  • aspesisteveaspesisteve Posts: 833
    hkings,

    if you can flip the Nissan, move into that lease plan on the Ridgeline and erase your credit card debt, which I would guess is at some crazy high interest rate then I would advise you to do it.

    Another reason I like the lease plan is because of gas prices. These trucks with their current EPA rated gas milege are becoming dinasours. As much as I love the Ridgeline, the gas milege is nothing to brag about. As soon as a truck comes out with a better system (hybrid?), your truck becomes harder to sell. The lease takes the worry out of resale.
  • hkingshkings Posts: 74
    Half my credit debt is at zero percent until Feb 09. The other half is at 6% for the life of the balance. Leasing was my thinking originally... although many people say, keep the truck (I mean I do still love it), pay it off... then when my debt is much lower or gone, buy a more economical vehicle as a supplement to my truck so I have my truck when I need it. Everyone says I should always own a vehicle, never lease. However, the rules seem to be changing with the new market place high gas prices are creating. My head is seriously spinning... not sure what to do.
  • aspesisteveaspesisteve Posts: 833
    hkings,

    I'm on the fence here with lease vs. buy. It's a topic that has been long discussed on these boards. It depends alot on the idividual.

    The biggest factor that would sway me to lease is how quickly do I anticipate turning over the vehicle assuming the lease is as competitive as the buy price.

    If you think you might have that car for a "long" time (at least 5 years), then buying might be the way to go.

    Some would say: buy the house - it appreciates most of the time; lease the vehicle because it only depreciates.

    it's a debatable topic that can go on forever.
  • vmcjr1vmcjr1 Posts: 2
    Namakan59, out the door as in after Tax Title and Lic? that would be good as my offer was 23,400 before TTL.

    Thanks

    Victor
  • aspesisteveaspesisteve Posts: 833
    hking,

    I forgot to say.
    The wisest thing would be to stay with the truck you have and pay off your debt.
    If you're half way into an amortized loan and you bail on it, you've just paid off most of the interest and very little principle. You're building equity in your truck now at a much faster rate than with the first half of your loan.
  • kyfdx%40Edmundskyfdx%40Edmunds Posts: 25,856
    Normally... I would agree wholeheartedly..

    But, if you can get $22K for an '05 Nissan Frontier, you should grab it... :surprise: Paying off your loan and your credit cards would be a great thing..

    However, I would hold off on leasing that Ridgeline, until you are positive that the Nissan is gone..

    regards,
    kyfdx

    Moderator - Prices Paid, Lease Questions, SUVs

  • hkingshkings Posts: 74
    Hey Kyfdx... Thanks for the suggestion. I actually have someone lined up to pay $22K, maybe $23K. Like I said, I moded my truck so it's very attractive and has a nice tech package on it. Of course I wouldn't lease or buy anything until I officially sold it. I'm just debating if I should at all... I owe $9500 on it, and a lease is going to run me about $11-$13K over 3 years then I have nothing. I'm wondering if I should just pay it off, and then at least in 3 years I own something, even if its worth only $10k or so, it's still worth something...
  • kyfdx%40Edmundskyfdx%40Edmunds Posts: 25,856
    Well.. I wont argue against keeping what you already have.. That surely can't hurt..

    But.. strictly from a math standpoint.. It will cost $11K-$13K to drive the Honda over the next 3 years.. That is depreciation and finance charges on your lease.. How much will it cost to drive the Frontier?

    Don't think about the payments... think about depreciation.. How much will it sell for in three more years? $10K? $13K? Even though that isn't money that you pay out, it is a real cost.. you'll lose probably as much as the lease payments on the Ridgeline. Remember.. even a car that is paid for still has depreciation costs.. Also, if you sell the car, you'll pay off your current loan.. no more interest there... and, the credit card debt will be paid off.. Granted, you have little interest being charged there for the next six months, but at some point, those debts have to be paid as well..

    In three years, you will have to get another car... but, you won't have any credit card debt, and maybe more in the bank, because you haven't had to make the credit card payments over three years..

    As nice as you say the Frontier is... $22K is a lot of money... If gas costs keep rising, the value may fall more quickly than you think.. At least your depreciation cost on the Ridgeline is locked in by the lease..

    Good luck, either way!
    kyfdx

    Moderator - Prices Paid, Lease Questions, SUVs

  • hkingshkings Posts: 74
    Hey KYFDX (and aspesisteve)

    Everyone makes a compelling argument. The other option I have been throwing around is just to keep the truck indefinitely (forever) and when I can afford it and it makes sense, to get a 2nd vehicle just as a daily driver/commuter car. And just use the truck for when I need it... hockey games, weekend trips, etc.

    It's a tough call... I'm really up int he air about this one.
  • aspesisteveaspesisteve Posts: 833
    the only reason hkings is able to get 22 or 23k for his Nissan is due to all the modificaitons he has done to it. With that said it's difficult to know what he has into it. I would guess he's still taking a big hit in depreciation due to the state of used truck sales.

    It's easy to be lured by that new car smell, but buyer remorse can set in before your first oil change. If you have a good running truck in a similar class as the Ridgeline and you're tight on finances, I'd advise you to keep driving what you have.
  • mleomleo Posts: 10
    My local Honda dealer has a deal for a lease on a 2008 Ridgline RTS for $199 a month and $1,000 down for 36 months. Not sure about mileage allowance, probably 10,000 or 12,500. They also have the RTL for $249 a month $1,000 down for 36 months.

    What do you think?
  • pcantorepcantore South FloridaPosts: 39
    There may be a catch hidden somewhere, since the selling price looks too aggressive (5K below invoice) for the RTS. Or, this RL has been sitting in stock for the longest.

    I would rather have the dealer quote the RTS with 0 down, then to pay any money upfront. And, ask for more details.

    Drive safe,
  • cuppy1cuppy1 Posts: 28
    I just leased a RTS for $214 mo total with taxes for 36mo with $1000 out of pocket. Great deal I thought.
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