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Honda Ridgeline Lease Questions

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  • Yes, jakej, capitalized cost reductions lower vehicles' lease payments. It is true that you "lose" your cap cost reduction the moment that you sign your lease payment, but making one provides you with the benefit of having a lower monthly payment on your leased vehicle for several years. If one totals a leased vehicle in an accident, their vehicle is gone and with is goes any benefit that they were receiving from having made a cap cost reduction.

    You are absolutely right. There's nothing wrong with trading a vehicle in when leasing a new one, just have the dealer that you are working with cut you a check for your trade. Also, you can always sell your current vehicle privately. While it is a hassle to do so, consumers usually can get more money for vehicles that they sell on their own than they can get for them by trading them in.

    Car_man
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  • Hi lablover2. Honda has provided enough lease support on the Ridgeline to advertise a $299 a month lease with around $1,000 down on it for the past year or so. Honda's current lease on the 2007 Ridgeline is right in line with this. To arrive at this advertised payment, Honda is providing $1,250 dealer cash on leases of the '07 Ridgeline through Honda Finance. Make sure to take this cash into account when negotiating this truck's capitalized cost. Also, most manufacturers' advertised leases leave a little meat on the bone so to speak. If you are in an area that has a decent level of competition, I would not be surprised if you were able to negotiate a slightly larger discount on the truck that you want than the one that was assumed for the purpose of the advertised lease.

    Car_man
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  • jakejjakej Posts: 13
    Honda is advertising both a "standard" and "special" lease for the RL RTX. The only surface difference seems to be the down payment (2K for standard and 1500 for special). Car Man, what is the real difference here, and is it possible to get a better lease deal than what Honda is advertising? Thanks as always. -JJ
  • Hi jakej. Honda is running a special lease on the 2007 Ridgeline right now. It has a special money factor of .00124 on it this month. This is equivalent to an interest rate of around just under 3%. Like with most manufacturers' advertised leases, I suspect that the payment that Honda is advertising on the 2007 Ridgeline leaves a little meat on the bone so to speak. If you are in an area that has a decent level of competition you should be able to negotiate a lower selling price than the one that the advertised lease is based on.

    Car_man
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  • I'm thinking about leasing a 2007 Honda Ridgeline RTX 36 months, 15,000 miles per year.
    The MSRP is $28,300. With a sales price of $27100, down payment of 1600, residual of 17,040 and a money factor of .001240, the cost according to the dealer is $349.29 including tax and license. When I enter the same information into edmuds lease calculator (with license fee at $280), the cost is $330.06. Then when I go to leasing guide.com, the number is even lower. When I called the dealership, they said that they could bring the cost of the car down to 26830, but the cost would be $340, still higher than the $330 that I came up with. Can you explain the discrepany?
    What do you think is a good number to pay per month for 15k miles per year?

    Thank you! :)
  • jfmavjfmav Posts: 1
    Hi Car_Man. Thanks for all the great information in the forums. You really helped me negotiate a good deal on my last lease. Now I am trying to help my father lease a Ridgeline RTL. I was wondering what the current dealer incentives and the captive lease rates are for the RTL for this month. Thanks in advance.
  • Hi amyinsandiego. Let's calculate a lease payment on this truck and see what we come up with. According to my calculations, if you were to lease a 2007 Honda Ridgeline RTX that has an MSRP of $28,300, a selling price of $27,100, a money factor of .00124 and a residual value of 59%, for 36 months your zero down, pre-tax monthly payment would be around $344. With the lower capitalized cost that you mentioned, $26,830, the monthly payment for an otherwise identical lease would drop to around $336.

    Honda's lease program for this truck changed for the money of January. Instead of the special lease money factor that was available on it last month, Honda is now providing $1,500 dealer cash on it. Make sure to take this cash into account when negotiating your lease. It will help you to get an attractive capitalized cost. Honda Finance's new 36 month, 12,000 mile per year buy rate lease money factor and residual value for the 2007 Ridgeline RTX are .00275 and 56%.

    Car_man
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  • You're very welcome, jfmav. I'm glad that I was able to help you out on your last lease. Honda is currently providing $1,500 dealer cash on the 2007 Ridgeline. Make sure that your father takes this cash into account when negotiating his truck's capitalized cost. This truck's lease program varies depending upon how long your father lease it for and what mileage allowance he needs. For now I will assume that he wants a 36 month lease with 15,000 miles per year. Let me know if he wants something different. Honda Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2007 Ridgeline RTL without navigation with 15,000 miles per year are .00275 and 54%, respectively, assuming that you qualify for its "Super Preferred" credit tier and pay a security deposit at lease signing.

    Car_man
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  • illyaillya Posts: 3
    Help Carman, I'm new to the leasing game. I'm looking at a RTX. Can you give me the fair numbers I need to negotiate?
  • illyaillya Posts: 3
    Car man where are you??
  • Greetings illya. 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.

    Basically, the two most important numbers to focus on when negotiating a lease are your vehicle's selling price and the money factor that is being used to calculate your monthly payment. The selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. Shop around and negotiate the lowest selling price that you can on the Ridgeline that you want. If you are in an area that has a decent level of competition, you should be able to negotiate a price that's around $500 or so over invoice and then have the $1,500 dealer cash that is available on this truck subtracted from that. You can find the dealer invoice price of this truck by visiting the New Vehicle Pricing section of this site.

    Once you have arrived at a price that you are comfortable with, have the dealer calculate your monthly payment using this truck's buy rate lease money factor. Honda Finance's current buy rate for consumers who lease this model for 36 months is .00275, assuming that you qualify for its top credit tier and pay a security deposit at lease signing.

    That's about it. Let me know if you have any questions.

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  • illyaillya Posts: 3
    Car man-first of all let me tell you thank you for the great information! I did my research and have negotiated a sale price on a RTX for $25,500 with $15603.30 residual with a money factor of .00275 and a payment of $424.00. The problem is, now my step-dad has me questioning that leasing is a smart choice over buying. What happens when I turn the vehicle in after 3 years of use? Will they charge me for new brakes, batteries, exhaust system and all the hoses like he said? Thank you again Illya
  • I am researching the affordability of leasing myself a RTL with the navigation system. I plan on leasing in July and I am doing my homework

    Here are my questions.
    As the model year wears down to an end will pricing and incentives get better as a result of trying to move out the '07 inventory to bring in the '08?

    When does the Honda Model year change? When would you expect to see the pricing change?

    Do you have any details on the current offer for the RTL with Navi at 15K a year?

    Any advice would be appreciated.

    Regards,
    Peter
  • aspesisteveaspesisteve Posts: 833
    peter,

    discounts at the end of the year depend upon how much inventory is left to clear out.

    it's the factory cash to dealer incentives that make the best senerio for negotiating. For leasing it's the money factor plus selling price.

    The best way to save on a car is to contact several dealers in your area via e-mail, tell them what you want, that you're ready to buy, and get them to bid for your business. Can't find the car you want in your area? then expand your search out another couple hundred miles.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    You're very welcome, illya. While you will be charged if your leased vehicle has any major dents, scratches, or completely worn out tires when you turn it in I have always found Honda Finance to be very lenient when evaluating the end of term condition of leased vehicles. It will probably not hit you up with a excess wear and tear penalty unless your leased Ridgeline is really messed up.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi Peter. The lease programs on vehicles do generally improve as the model year progresses...to a point. Vehicles' residual values, which are used to calculate the depreciation portion of your lease payment, gradually fall as the model year progresses. As a result, very late in the model year it often becomes more expensive to lease vehicles. I am not sure when Honda will introduce the 2008 Ridgeline, but I would not be surprised if it was as early as June or July. I can give you an idea of what Honda's current lease program for the 2007 Ridgeline is like, but keep in mind that it will likely be very different when you are in the market for it later this year. Honda's lease program for the Ridgeline varies by region. For now I will tell you what its special regional program is like, but I need you to tell me what state you are are in to see if you qualify for it. Honda Finance's current special regional buy rate lease money factor and residual value for a 36 month lease of a 2007 Ridgeline RTL without navigation with 15,000 miles per year are .00071 and 53%, respectively for consumers who qualify for its "Super Preferred" credit tier.

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  • john1000john1000 Posts: 2
    Car Man

    "Finance's current special regional buy rate lease money factor and residual value for a 36 month lease of a 2007 Ridgeline RTL without navigation with 15,000 miles per year are .00071 and 53%, respectively for consumers who qualify for its "Super Preferred" credit tier."

    Where did you get the the .00071 money factor. I called a few dealers today and they said there is no special lease deals on the ridgeline right now and the money factor on the RTL with super preferred credit is .00275. I am in the seattle area.

    Thanks for the info
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi john1000. In my quote that you posted, I stated that the 2007 Ridgeline's special lease program is regional. It sounds like you are not in one of the states that this program is available in. What state do you live in? If you let me know I can tell you for certain if this is the case. If this special lease program is not available in your area and you want to lease this truck through Honda Finance, you will have to use its standard lease program. At least you can use the $2,000 dealer cash that is available on it to negotiate the capitalized cost of a standard lease.

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  • so, i saw a ridgeline that said 199 a month, ask how. anyone know how this would be possible other than a gigantic down payment
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi ridgemehard. It's possible to come up with any lease payment one wants by manipulating the terms of a lease, such as its length, mileage allowance, and down payment. It would be impossible to lease a 2007 Ridgeline for $199 per month right now without making a significant down payment. I don't believe that Honda is running a special lease program on this truck right now. It does however have $2,500 dealer cash on it that will help you to negotiate an attractive selling price. It you tell me exactly which Ridgeline you want, what its MSRP and selling price are, how long you want to lease it for, and what mileage allowance you need I would be happy to estimate what its lease payment should be right now for you.

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  • well, i was thinking absolute base price and i have no idea about the length of lease. if there is an average, i would go with an average lease. im going to have about 1500 to put down on the lease as well.
  • AdamvAdamv Posts: 8
    "It does however have $2,500 dealer cash on it that will help you to negotiate an attractive selling price"

    Wouldn't it also help you negotiate a better lease rate?

    "im going to have about 1500 to put down on the lease as well. "

    You should never put anything down when doing a lease. Roll it all into the payment. Use your $1500 for better things, like an ivestment at an interest rate higher then your lease rate.
  • aspesisteveaspesisteve Posts: 833
    anyone know what the lease rate is going for on the Ridgeline?

    car man?
    anyone?
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi Adamv. The dealer cash will have no impact upon the Ridgeline's money factor. It will help consumers to negotiate a low selling price on it, which will in turn lower the lease payment.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Greetings aspesisteve. Honda is providing $2,500 dealer cash on the 2007 Ridgeline instead of lease support. This dealer cash will help you to negotiate an attractive capitalized cost for your truck, but if you want to lease it through Honda Finance you will have to use its standard lease program. This program varies by trim level, term, and mileage allowance. Its current buy rate standard money factor for a 36 month lease of this truck is .00275 for consumers who qualify for its "Super Preferred" credit tier and pay a security deposit at lease signing.

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  • jbone66jbone66 Posts: 1
    Hi Car_man,

    I have read your previous postings and have found them all to be informative. I am in the market for an 07 Honda RL RTL (no navi). I am in California and it appears that there are no lease incentives at this time for this vehicle. Now that July is around the corner are you aware of any upcoming lease incentives (far less than .00275)? I am looking for a monthly payment range of $350 (give or take) with minimal down. I was quoted 27,900 (b4 tax/docs/etc) for an RTL (no nav).

    Thanks.

    - jbone
  • allerballerb Posts: 3
    I am in the market for an RTL and have received the following quotes from 2 separate dealers one day a part. My question is (I am new to leasing) are are either of these a good deal (Is there room for more negotiating) and why the different money factors. Can anyone help me?

    2007 Honda Ridgeline RTL..36mo...12k miles...tax incl - $449/mo with $796 due at signing; 51% Residual and .00219 Money Factor

    MSRP on 2007 Ridgeline RTL at $33,535, sale price - 26,521. Lease payment for 36 mos. with 12k miles a year including tax is $427 with $847 due at signing. Residual value is $16,767.50. The money factor is .0025.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Thanks jbone66. Honda Finance's July buy rate lease money factor for the 2007 Ridgeline is .00290 for consumers who qualify for its "Super Preferred" credit tier and pay a security deposit at lease signing. When negotiating your lease on this truck, make sure to take advantage of the $2,500 dealer cash that is currently available on it.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi allerb. I like the second quote that you received better than the first. Not only is the monthly payment lower, but the dealer who gave it to you was much more transparent, disclosing your truck's MSRP and selling price. The selling price that you were quoted appears to be below dealer invoice minus the $2,500 dealer cash that is currently available on this vehicle, which is a very good deal.

    Car_man
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  • I'm looking to lease an RTX. I saw this on Honda's website. Is there any possiblity of getting a lower price from the dealer? I'm not sure what i could use to negotiate the net cap cost down...

    Thanks !

    FEATURED SPECIAL LEASE: Closed-end lease for 2008 Ridgeline RTX Automatic Transmission (Model YK1638EW) for $309.00 per month for 36 months with a $2,105.00 capitalized cost reduction available to customers who qualify for the AHFC Super Preferred credit tier. $3,009.00 total due at lease signing.

    MSRP $30,135.00 (includes destination) less the capitalized cost reduction resulting in actual net capitalized cost $25,618.34. Total monthly payments $11,124.00. Option to purchase at lease end $18,081.00. 12,000 miles/year.
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