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2013 and earlier-Honda CR-V Lease Questions

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  • blueiedgodblueiedgod Posts: 2,803
    blueiedgod,
    I realize that this post is over a month old but I'm hoping you can answer this question. I too have sold my leased cars at end of term and turned a profit. Normally, I have the buyer send the payoff to the lease company to get the title and then the lease company sends me the overpayment (profit). This process also helps me avoid the sales tax if I were to buy the car myself ahead of the sale to a buyer.
    Now with my Honda lease about to run out, I want to perform the same process since I have some equity in the car. The problem is, that AHFC wants me to use a dealer to act as the middleman. A potential buyer would have to pay a dealer who in turn would buy the car and then turn the title over to the new owner.
    This seems cumbersome to me. What did you do for your lease end buyouts?


    I never leased per se. I am my own lessor and lessee. Sorry, I don't know what the procedure is with AHFC.
  • rws0131rws0131 Posts: 27
    Does anyone happen to know the 24 and 36 month Residuals and Money Factors for a 12,000 mile a year lease? Any help would be greatly appreciated in the next day...Thanks!
  • wantg35cwantg35c Posts: 3
    Car_man, looking at a lx cr-v awd, 36m 12k, what are the base mf and res for april? Thanks in advance. msrp is 22545, selling price 19799.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Greetings ics88. If you were to lease a 2006 Honda CR-V SE 4WD 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 .00144 and 57%, respectively. I'd be happy to estimate what your payment should be on the CR-V that you are considering leasing, but in order for me to do so I need you to provide me with its full MSRP.

    Sales tax is calculated differently, depending upon what state one is in. I am not personally familiar with how sales tax is calculated on leased vehicles in Texas right now, but you may be able to find out by visiting one of the following sites: Texas Department of Transportation or Texas Taxes.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi brandloyal. If you were to lease a 2006 Honda CR-V SE through Honda Finance right now for 24 months with 12,000 miles per year, its buy rate lease money factor and residual value would be .00144 and 65%, respectively assuming that you qualify for its "Super Preferred" (have a credit score of 710 or higher) credit tier and pay a security deposit.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hey brandloyal. Honda Finance's "Leadership Purchase Plan" is what is known in the industry as a balloon note program. Balloon notes are very similar to leases in that they provide consumers with low monthly payments and the option to purchase their vehicles at the end of a specific period of time for a predetermined amount of money. The main difference between leases and balloon notes is that with leases the bank's name is on your vehicle's title and with balloon notes yours is. Leases are much more popular than balloon notes. Balloon notes are really only used in states like Texas, in which for some strange reason consumers have to pay less tax on balloon notes than they do on leases.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hello rws0131. Honda's residual values for the CR-V vary depending upon which exact model you are interested in, so I need you to be more specific about the truck that you want in order to tell you what its residuals should be like. I can tell you though that Honda Finance's current buy rate lease money factor for consumers who qualify for its "Super Preferred" credit tier and pay a security deposit is .00144 for all 2006 CR-V models.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Here you go, wantg35c. If you were to lease an '06 CR-V LX 4WD through Honda Finance right now for 36 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00144 and 61%, respectively.

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  • smith1smith1 Posts: 283
    The reason balloon note financing plans such as the LPP are better from a sales tax standpoint in certain states (Texas and Illinois are two such states) is that these states collect sales tax on the full value of a leased vehicle at the onset of the lease (even though only a part of the vehicle's value is used during the lease) and then, if you buy the vehicle at the end of the lease, they collect sales tax AGAIN, on the used vehicle purchase price. Their flimsy justification for this double taxation is that there is a change of ownership and title (from lessor to lessee) when a leased vehicle is purchased by the lessee at the end of the lease. This change of ownership/title doesn't occur under the LPP therefore sales tax is not assessed a second time.

    Therefore, if you live in one of the states where leases are taxed this way, AND there is a significant chance you will want to purchase the vehicle at the end of the initial term, the LPP is better than a traditional lease -- assuming that the monthly payments and buyout price are similar. The LPP has no sales tax advantage over a traditional lease if you don't buy the vehicle at the end.
  • dubblernrdubblernr Posts: 1
    CRV LX AWD (basic AWD)

    282.00 a month (Includes EVERYTHING)
    36 months
    12k miler per year
    0 money down

    Thanks...
  • bonairebonaire Posts: 2
    We have been told by a local dealer that Honda does not normally offer lease incentives during the months of August and September as the new models are out and Honda does not want to detract from them in terms of sales. Our current lease expires in September and we have been advised to do a lease in late August including a cost for buyout of our present lease. Has anyone had any experience with this situation or is this an attempt to push us into an earlier lease?
  • bonairebonaire Posts: 2
    The previous post#42 should have said late July not late August for lease date.
  • blueiedgodblueiedgod Posts: 2,803
    We have been told by a local dealer that Honda does not normally offer lease incentives during the months of August and September as the new models are out and Honda does not want to detract from them in terms of sales.

    Yeah, but they DO offer great incentives on the outgoing model!
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi dubblernr. You never mentioned the selling price or MSRP of the CR-V that you are interested in leasing. These are important numbers for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing this truck's selling price in relation to its MSRP you don't know how much of a discount you are getting on it. The second reason is that one needs the selling price and MSRP, including the destination charge, of a vehicle to calculate its lease payment. I would be more than happy to give you my opinion on this deal if you let me know what these numbers are.

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  • dtnydtny Posts: 1
    Has the lease numbers (ie Money Factor, residual) change for the 2006 CRV EX 4WD? Can you post the numbers here again. Looking to return my current lease (2003 Camry) for a new CRV lease real soon. Any information would be helpful!

    BTW looking to do 36 mons, 12K per year, no money down, excellent credit - also looking at the RAV4 - any comment on this?

    Much appreciated!
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi bonaire. This sounds like a way for the dealer that you are speaking with to get you into a new vehicle a month earlier than you normally would. Honda almost always has special lease support or dealer cash on at least some models. If it is providing support on the CR-V now, it almost certainly will be doing so later on this year. Consumers rarely come out ahead by getting out of leases before their scheduled end dates.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    I'd be happy to help you out, dtny. If you were to lease a 2006 Honda CR-V EX 4WD through Honda Finance right now for 36 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00144 and 59%, respectively.

    Car_man
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  • brianbbrianb Posts: 13
    I have a quote from Open Road Honda for $17,800 not including tax and tags. Could you tell me what the lease would be for 36 months. I do not know what the money factor or residual is.

    Thanks
    Brian
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi Brian. I can give you an idea of what this truck's current lease program is like, however I need you to provide me with its full MSRP in order for me to estimate what its monthly payment should be. If you were to lease a 2006 Honda CR-V LX 2WD 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 .00144 and 57%, respectively.

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  • brianbbrianb Posts: 13
    Thanks for the help.

    The MSRP is 20,300 but I had an offer for $17,800.
  • mokiavellimokiavelli Posts: 47
    I am in the San Diego Area. The MSRP is $23,100. I have been offered a price of $20,200. I am looking for a 3 year lease. Assuming excellent credit, what type of money factor and residual value should I be expecting? What type of payment amount am I looking at? Thank you for any help.
  • Hi can you post the numbers for 2006 CRV EX 4wd, and the Special addition.
    I am looking for 36 months 15,000 miles a year no money down. I am in New Jersey. Thanks
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    You're welcome, brianb. OK, according to my calculations, if you were to lease a 2006 Honda CR-V LX 2WD with an MSRP of $20,300 and a selling price of $17,800 through Honda Finance right now for 36 months with 12,000 miles per year, your zero down, pre-tax monthly payment should be around $205. Wow, that's a really low payment for this truck. I wonder if the price that you were quoted for it took the $750 dealer cash that is currently available on the '06 CR-V into account. This dealer cash is not compatible with Honda Finance's special lease program, so if the price that you were quoted was using the dealer cash the payment that I came up with is unrealistically low.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Greetings mokiavelli. If you were to lease a 2006 Honda CR-V EX 2WD 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 .00144 and 59%, respectively assuming that you pay a security deposit and qualify for Honda Finance's "Super Preferred" credit tier (have a credit score of 710 or higher). Using the prices that you mentioned in your post, an MSRP of $23,100 and a selling price of $20,200, I estimate that your truck's zero down, pre-tax monthly payment should be around $232.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Here you go, juliefromjerzy. According to the latest information that I have seen, if you lease a 2006 Honda CR-V EX 4WD through Honda Finance on or before July 5th for 36 months with 15,000 miles peer year, its buy rate lease money factor and residual value should be .00144 and 59%, respectively.

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  • Greetings, I am "new" to leasing and having been following the posts to learn a thing or two. I always thought that down payment was required for leasing and I have seen a number of posts discouraging this, or trying to limit the amount down. Can someone clarify for the newbie? Isn't first/last payment and security deposit required? Or can all those things be added in, making it $0 down? My husband and I have excellent credit and a few months left on our current lease (through his employer) and are looking at the CRV EX for a 36 month, 15k mileage lease. Thanks!
  • mac06mac06 Posts: 2
    I am interested in a 2006 cr-v sale price of 18000. The msrp is 21,495. How will my trade payoff affect my lease payment? Thanks, terry
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Welcome hipmommee4. 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.

    Down payments are absolutely not required on leased vehicles. Consumers can lease any vehicle that they want without making any sort of capitalized cost reduction. Many people think that down payments are required because most advertised lease payments include some sort of down payment. The reason why they do is the down payments make the monthly payment for the advertised vehicle look more attractive than the payment for a zero down lease. All you really have to pay at lease signing are your vehicle's first month's payment, security deposit, and acquisition fee. These are different than your making a cap cost reduction. You would be able to lease your car only having to pay the first month's payment at signing if you had the security deposit waived and the acquisition fee added into its capitalized cost. Let me know if you have any other questions.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi Terry. You really should treat your trade as a separate transaction from your new vehicle lease. Doing so makes it easier to analyze how good a deal you are getting on both your new and used vehicle. The impact that your trade will have upon your deal will depend upon how much your payoff is and how much the dealer that you are working with is willing to give you for your vehicle. If your vehicle's payoff is less than the dealer is giving you for it, you have equity that you can use as a capitalized cost reduction for your new lease or have the dealer cut you a check for. If your vehicle's payoff is higher than what the dealer you are working with is willing to give you for it, to trade in your vehicle you will either have to pay money out of your own pocket or roll your negative equity into your new lease.

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  • mac06mac06 Posts: 2
    Hi Car man,
    Thanks for your earlier post. I wondering if I should buy/lease today 7/31/06 or wait for mid to late August incentives. Does Honda extend into August?? Thanks, Terry
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