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2013 and earlier-Honda CR-V Lease Questions

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  • packer3packer3 Posts: 277
    Give it a shot tomorrow first day of the month and maybe there is a new Honda sales program and they need to start off with some sales, go in with a check written out at $325 and tell them you want the CRV and here is the first months payment.
    If they ask for a down payment and they will, have a check written out to the amount of $500.
  • I wasn't going to pay first payment tomorrow or down payment. all my inception fees are included as well.
  • Hi,

    I am a first time car leaser.

    Here are the details

    MSRP: 23,725
    Residual: 63%
    MF: .00071
    Terms: 36 months/12K

    My Questions:

    1. Should I put a down payment? say $3000?
    2. Should I be negotiating a better MSRP? or profit on top of their invoice price?
    3. I understand I should get the security deposit waived? what else should I try to have waived?
    4. Should I try to get add on included in the deal such as heated seats, or the thingy that covers the back trunk that is silly to not be included!!!

    I really appreciate any helpful hints. P.s. I have good credit!

    Marianne
  • I just posted, but realized this detail may be more helpful.

    Dealership in Bellingham WA

    Dealer Net: $22134.19
    Gross Margin: $1381.33
    Acq Fee (included in payment calc) $595
    Gross Cap Cost before Dealer Contribution: $24,110.52
    Cap Cost Reduction: $1870.00
    Net Cap Cost: $22,240.52
    MSRP: $23,725.00
    RV% (12000 mi/yr): 63%
    RV calculated: $14946.75
    Money Factor: 00071
    Depreciation: 202.6
    Service Chg: 26.40
    Base Payment: $229.00
    Amount due at signing: $2,099
    Security Deposit Waived

    What do you think of this offer, where should I negotiate?

    Thanks,
    Marianne
  • steevosteevo Posts: 333
    packer3 you are hysterical. At least I hope you are trying to be funny because if you are serious then you are a fool.
  • contract_buildcontract_build Posts: 26
    edited December 2010
    Dear car_man,

    I wish to thank you in advance of any information you - or kyfdx - might provide to my questions on this leasing forum (as well as some other Honda car leasing forums I'll post a question on).

    Because of your essential information 4-1/2 years ago I read here on Carspace/Edmunds, we were able to negotiate, in April 2006, a 3 year/15k lease on the then current year 2006 Honda Pilot EX-L that:

    We got priced down to $28,139.48, and, thuslyCost us only $358.14/monthHad a residual of only $16,197.50... so we bought the Pilot at the end of our lease!!!
    We're currently looking to lease another Honda - somewhat more mileage oriented - and wish to know if you have any December figures for the CRV?

    My wife and I are looking at the 2WD 2010 EX or EX-L leftovers or the current 2011 2WD EX or EX-L's, 12k/15k residuals and the money factor(s) for the Honda Financial leases.

    Is there a difference in the lease factors for the 2010 or 2011 years?

    Once again, THANK YOU!

    Sincerely, builder
  • contract_buildcontract_build Posts: 26
    edited December 2010
    1. Should I put a down payment? say $3000?

    LEASING... NO WAY (at least for an individual/non-business).

    Your GAP coverage will only cover what you owe on the car: if it's stolen or - heaven forbid - there was a MOST serious accident, some or ALL of that three grand will be unrecoverable.

    2. Should I be negotiating a better MSRP? or profit on top of their invoice price?

    Don't talk about leasing with your dealer to start out... get as LOW of a purchase price as you can - see the other CRV forum for prices paid (may vary as to the region in which you reside) - then you can compute the depreciation/residual and money factor numbers when you're discussing the lease.

    Nonetheless, basing a lease off of the published msrp will not result in your best deal.

    3. I understand I should get the security deposit waived? what else should I try to have waived?

    If you're dealing with a Honda dealer, take a look at the current specials running off of the Honda Motors website: $0 down for many of the autos (read the fine print:TTL, Dealer "fees", et.al., will have to be paid "upfront" or rolled into your lease payment).

    4. Should I try to get add on included in the deal such as heated seats, or the thingy that covers the back trunk that is silly to not be included!!!

    Not sure what you're talkin' bout here... heated seats and such are based on the "trim level": heated seats will only come with a leather seat trim model which the LX SE does not have.

    As far as the cargo cover... after you get your best price, my advice would be to try to get them to throw that in: after they agree - with a FIRM commitment from the Dealer's sales manager, then start talking lease with the residuals and money factors you'll find here from the moderators here: car_man & kyfdx.

    GOOD LUCK (!) and let us all know how it goes...
  • First, I would never put cash down for a lease on a car you might give back. And, never pre-pay the tax. If its totalled or stolen, you are out that up front cash whatever the payout. Also, a lease is not ownership as they might have you think.

    I know that lowers the payment but you are still paying it. Get them to lower the cost of the car. So, i guess that could be #1, always negotiaite the car price first. Don't say i want my payment to be X as they will tweak things you don't understand to get you there.

    I spoke with Honda finance direct and they told me, off the record, the exact same thing. They also dictate residuals etc off MSRP and the invoice is fluff too. The only charge Honda requires is the $595 bank fee. The dealerships add everything else, mostly. Some will try to add extras tell them no! if they are on the car tell them you are NOT paying for them.

    Here is the deal i just signed, Honda CRV EXL (no Nav, not worth it, nuvi $100)
    3yr/12k mi lease. $287.83/mo.
    MSRP 28675, price for lease $26050 w/destination.
    Out of pocket $1117 included 1st mo, bank fee, dmv and bs NJ tire fee.

    I got them to waive the doc fee, never pay that! and throw in an oil change as i walked out when they said no to the doc fee but they ran out after me. i did almost all the nego's online as i won't waste my time. another guy was in there holding out for financing and he was gettting everything too. Be strong and firm and you will prevail!

    Remember the most important is price first as that is what they base the lease amount on! And then only pay down the min. GOOD LUCK!
  • My Accord lease ends in April 2011. The dealership is hounding me about what I'm going to do next. I'm fairly certain that I want to lease the CR-V, and I see some really good deals out there. I hope to lower my lease payment (I currently pay $439 a month and know that was not a good deal). Is there a reason to start this process now, or is it unwise to start this early?
  • Hi, thanks for the advice.

    Regarding your deal:

    Did you negotiate down from MSRP from 28675 to $26050 w/destination?

    If so, then I should just give them a price around $2500 off of MSRP, would that be a good place to start?

    sorry I am not a pro at this stuff.

    Marianne
  • Hi- Even though I know I want to lease a car, I understand that I am not suppose to reveal this fact until the car price is negotiated.

    My question: What is the standard amount of wiggle room on price that is typically given among dealers out there? Is it for example $2500 off of MSRP (or Invoice price for that matter)? Just need to know what a good starting point is, if anyone can care to share their success here?

    Thanks,

    M
  • Hi aladdinprince. There's nothing wrong with trading in a vehicle when you lease a new one, but it would be in your best interest to keep your two deals separate. Doing so keep the dealer from making things confusing and trying to take advantage of you. Negotiate a good deal on the new CR-V that you want and then introduce your trade. If you feel comfortable with the amount that the dealer is willing to give you for your trade, have them cut you a check for it rather than using the proceeds from it as a down payment for your lease.

    The following article outlines how to calculate lease payments: Calculate Your Own Lease Payment.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Hi drz05. Honda Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2011 CR-V SE AWD with 15,000 miles per year are .00071 and 61%, respectively for consumers who qualify for its top aka "Super Preferred" credit tier.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Welcome back builder. Here's the information that you're looking for.

    Honda Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2011 CR-V EX 2WD with 15,000 miles per year are .00071 and 60%, respectively for consumers who qualify for its top aka "Super Preferred" credit tier.

    The numbers for an otherwise identical lease of an '11 CR-V EX-L 2WD are .00071 and 57%.

    If you were to lease with only 12,000 miles per year, these vehicles' residual values would be 2% higher.

    Honda is not providing any lease support on the 2010 CR-V any longer so you probably will be better off leasing a 2011 model.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Hi snowcrazed1. If I was in the market for a 2011 CR-V right now, I personally would shoot for a selling price of $500 to $1,000 over dealer invoice. You can look up the invoice price of the exact model that you want over in the New Vehicle Pricing section of this site.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Car Man thanks, this is my post the other day.

    "First, I would never put cash down for a lease on a car you might give back. And, never pre-pay the tax. If its totalled or stolen, you are out that up front cash whatever the payout. Also, a lease is not ownership as they might have you think.

    I know that lowers the payment but you are still paying it. Get them to lower the cost of the car. So, i guess that could be #1, always negotiaite the car price first. Don't say i want my payment to be X as they will tweak things you don't understand to get you there.

    I spoke with Honda finance direct and they told me, off the record, the exact same thing. They also dictate residuals etc off MSRP and the invoice is fluff too. The only charge Honda requires is the $595 bank fee. The dealerships add everything else, mostly. Some will try to add extras tell them no! if they are on the car tell them you are NOT paying for them.

    Here is the deal i just signed, Honda CRV EXL (no Nav, not worth it, nuvi $100)
    3yr/12k mi lease. $287.83/mo.
    MSRP 28675, price for lease $26050 w/destination.
    Out of pocket $1117 included 1st mo, bank fee, dmv and bs NJ tire fee.

    I got them to waive the doc fee, never pay that! and throw in an oil change as i walked out when they said no to the doc fee but they ran out after me. i did almost all the nego's online as i won't waste my time. another guy was in there holding out for financing and he was gettting everything too. Be strong and firm and you will prevail!

    Remember the most important is price first as that is what they base the lease amount on! And then only pay down the min. GOOD LUCK! "
  • packer3packer3 Posts: 277
    As I mentioned in my thread previously, Leased 2008 Accord LXP with 3 payments left, (they ate the last three months) I brought it back and got into 2011 CR-V SE AWD, 12M miles $700.0 down $265.00 per mth 36 mth. I'm one of those smart fools, I nego. for a living.
    I didn't use that tatic but if you pay attention to a saleman how many times do they say if you are serious about the car today are you willing to sign and I will work on a deal. Why give them a chance with there pre written speach, be proactive, you should make the pitch, be in control your the buyer.
  • Carman or kyfdx, can you tell me if Honda offers the option of doing Multiple Security Deposits on on their leases? If so, what is the max number of deposits allowed, and how much does each reduce the money factor?

    Thanks!
    LianneLL
  • kyfdxkyfdx Posts: 29,370
    No MSDs with Honda Finance..

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • I was yesterday on Honda dealership.
    I did not sign lease contract yet.
    I have next deal:
    2011 Honda CR-V 2WD EX-L no navig
    $306/m, 36 month, 12000 m/y, $1600+ DMV for others fees
    I don't know about deal.
    It's good or ...?
    I followed to deal of aladdinprince mess #816
    '2011 HONDA CRV EXL (no nav)'
    I did not find what taxes he paid.(NJ 7%)
    'Out of pocket $1117' does not include taxes.
    My Dealer told me you pay more
    because NY taxes higher than NJ taxes
  • I just got my CRV.
    2011 CRV EX-L 2wd, 36m, 12k miles/y.

    Found out the residual the hard way, at the moment of signing the deal.
    It is 60% for 12k m/y, 58 for 15k.

    Ended up paying 316 before taxes (338 after, 7 % tax miami), sign and drive.
  • The glossary says to multiply money factor by 2400 to get interest rate. Following are relevant facts regardgin 2011 Honda CR-V EX:

    MSRP 26,025
    Annual miles 12,000
    Residual value factor .63
    RV 16,395.75
    Cost, including 1,018.80 inceptionf fees and 595 assighment fee 26,359.80
    Net capitalized cost 9,964.05
    Term 36 months
    Money factor .00071
    Monthly payment before tax 307.14

    If you multiply .00071 x 2400, you get 1.7%, but when I calculated the interest rate based on a capitalized cost of 9,964.05 and 36 payments of 307.14, I calculated the interest rate to be 6.9%. Can you explain where I'm wrong?

    Also, what do you think of this deal (I'm in Fairfield, CT), what is included in inception fees, and where should I negotiate?
  • kyfdxkyfdx Posts: 29,370
    I don't think $9964.05 is your Net Capitalized Cost.. That looks like your depreciation...

    Trying to convert the MF to an interest rate, then calculating it is likely to be confusing... The money factor is used to calculate the payment..

    But, if you want to try, the amount you are financing is an average of the Capitalized Cost and the Residual... You are figuring it just on the Depreciation..

    regards,
    kyfdx

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • A lease is not calculated as a regular loan. For a regular loan you calculate the monthly payment based on periodic amortizations, and the amount of interest you pay each month is different. The formula is more complicated an usually you need a calculator with financial functions to do that.
    In a lease, you don't do amortizations, you're not paying towards the principal, instead, you are paying the depreciation (Price - Residual)/months. But somebody needs to pay the interest on the loan that the leasing company is, in theory, using to pay the dealer for purchasing the car (yes, you're negociating the purchase price on the lease so the leasing company pays less), and that will be You, of course. It would be too painful to calculate the total interest paid in, lets say, 36 months, add it all, and then divide it by 36, so you had equal payments every months, so they took a shorcut, instead of paying the interest on the full loan amount, nor paying the interest on the residual, why not pay interest on the average of those 2, e.g. (P+R)/2, as you're paying the interest monthly, the annual interest rate needs to be divided by 12, or by 1200 (it's a percentage), so the interest you pay every month is (P+R)/2/1200 = (P+R)/2400, that's why the money factor is the interest rate / 2400.
    Hope that helps.
  • Hi Car Man,

    Could you provide the January residual and money factor for a 2011 Honda CR-V EX-L 4WD with 15K miles per year on a 36 month lease.

    Thank you,
    Mark
  • Car Man,
    Would you please provide 24 mo. residual & mf with 15K miles per year?
    I also need to know how the #'s compare to the program that expired Jan.3rd
    I live in Oklahoma & leased under the old program and just received a letter from dealer that they need to redo some of the paperwork using Jan.4th as the date of lease. Sounds fishy to me. Please advise me what you would do. Thanks,
    Scotty
  • What was your base price for this lease. My daughter wants to lease the CRV EXL as well and we are not sure what would be good True Market Value for it.
  • What should be a good TMV for the 2011 CRV XEL. How does the lease formula work, like, what factor, risidual value terms etc.
  • I'd be happy to Mark. Honda Finance's January buy rate lease money factor and residual for a 36 month lease of a 2011 CR-V EX-L 4WD with 15,000 miles per year are .00071 and 59%, respectively for consumers who qualify for its top aka "Super Preferred" credit tier.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
This discussion has been closed.