Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!





2013 and earlier-Honda CR-V Lease Questions

1568101164

Comments

  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi kisyntym. The last time that I checked, consumers needed to have a credit score of 710 or higher to qualify for Honda Finance's top aka "Super Preferred" credit tier. To qualify for the next tier down from that, its "Preferred" tier, consumers need a score of 709 to 660.

    Car_man
    Host
    Prices Paid Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi toledotom. The price that your friend was quoted is a little on the high side. The full MSRP for a 2007 Honda CR-V LX 4WD is $22,395, so the quote only includes a $95 discount :surprise: . I am not intimately familiar with what the market is like for this model right now, but you should be able to do better than that. I personally would shoot for $500 to $1,000 over invoice. Try stopping by the following discussion to see how much other community members have paid for similar cars lately: "Honda CR-V: Prices Paid & Buying Experience".

    Your friend definitely should not do a 60 month lease. That is a really long time to be committed to one vehicle. Plus, once the CR-V's 3 year / 36,000 mile basic warranty expires he will have to pay to fix anything that goes wrong with it (other than powertrain issues) out of his own pocket. I usually recommend that consumers lease for 36 months or so, 48 at the longest. Let's compromise and work up a 48 month lease assuming a selling price of $750 over invoice. According to my calculations, the zero down, pre-tax monthly payment of a 2007 Honda CR-V LX 4WD that has an MSRP of $22,395 and a selling price of $21,623 ($750 over invoice) leased through Honda Finance for 48 months with 12,000 miles per year (I'm not sure if Honda Finance leases Honda models with only 10,000 miles per year) would be around $287.

    Car_man
    Host
    Prices Paid Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi sundoggy. Honda Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2007 Honda CR-V EX-L AWD without navigation with 12,000 miles per year are .00280 and 62%, respectively for consumers who pay a security deposit at lease signing and qualify for its "Super Preferred" credit tier. Shoot for a selling price of $500 to $1,000 over invoice, the lower the better, and have the dealer use this lease program to calculate your monthly payment.

    Car_man
    Host
    Prices Paid Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi pegasus17. Given the lack of lease support on it, financing the CR-V instead of leasing it isn't a bad idea, but to the best of my knowledge Honda is not currently offering any special financing rates on it.

    Car_man
    Host
    Prices Paid Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi sundoggy. This isn't necessarily a dirty tactic as you put it. Honda Finance's money factors vary by credit tier. One needs a credit score of 710 or higher to qualify for its "Super Preferred" tier. It has other, higher money factors for consumers who don't qualify for its top tier. By not telling you what this vehicle's money factor is until they run your credit the dealer is accomplishing two things: they give you an accurate idea of the specific money factor that you qualify for and they make you feel more committed to the deal. If another dealership treated you better and offered you a lower selling price why are you still working with this one?

    Car_man
    Host
    Prices Paid Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Greetings roco23. 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.

    You absolutely should negotiate the lowest possible selling price on the CR-V that you are interested in prior to discussing its monthly payment. There's no need to mislead the dealer to make them think that you are paying cash for or financing it, be honest about your intention to lease but firm that you want to negotiate the selling price before discussing monthly payments. I am not intimately familiar with what the market is like for the CR-V right now, but if I was in the market for one I personally would shoot for $500 to $1,000 over dealer invoice. You may be able to get an idea of how much you will have to pay for this truck right now by visiting the following discussion: "Honda CR-V: Prices Paid & Buying Experience".

    You can use the formula that is described in the above article to calculate this truck's lease payment. To do so you will need the exact MSRP and selling price of the CR-V that you want, along with its money factor and residual value. Honda Finance's ease program for this truck varies by term and mileage allowance. I can give you an idea of what it is currently like, but I am going to have to make an assumption about these variables. For now I will assume that you are interested in a 36 month lease with 15,000 miles per year. Let me know if you want something different. Honda Finance's current 36 month, 15,000 mile per year buy rate lease money factor and residual value for the 2007 CR-V EX 4WD without leather or navigation are .00280 and 61%, respectively.

    I believe that Honda Finance includes gap insurance with its leases at no additional charge.

    Car_man
    Host
    Prices Paid Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    You're very welcome, choncho06.

    Car_man
    Host
    Prices Paid Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hello finbar. Pre-paid leases are different than making additional security deposits. Many banks do offer consumers a reduction in the money factor that they use to calculate the interest portion of leases for consumers who pre-pay. I have never heard of anyone pre-paying for a lease through Honda Finance or making additional security deposits on a lease through it, so I don't know if it offers these programs. I suspect that it doesn't, but I don't know for certain. You will need to check with a dealer to see if it does. If it turns out that Honda does offer pre-paid leases or allow MSDs, it would be great if you would let everyone here know. Thanks.

    Car_man
    Host
    Prices Paid Forum
  • dv8tordv8tor Posts: 23
    Hi,
    I'm looking for the lease rates (factor and residual) for a 2007 CRV EX-L 4WD in Orange County, CA. The lowest price I'm being quoted so far is $24,895.00 Is this a "good" price or can I expect to do better? I'm looking for a 3 year lease at 15k miles a year.
    Thanks
  • joppjopp Posts: 5
    This is the deal I got today in Mass... How did I do? Can you tell me if/where I messed up? I have a bad feeling about this.

    3 year 20k Miles/year Ex-L with Navi...

    Negotiated Selling Price of Vehicle: $26,805.46
    Money Factor 0.0028
    Initial Title Fees $385.75
    dealer acq fee up front $624.75
    Residual Value $15,085.00

    Monthly payment with tax = $465
    $1500 up front for:
    1st month =$465.00
    Title Fee =$385.75
    dealer acq fee up front=$624.75
    cap cost reduction with tax=$24.50

    Thats all I know...

    How'd I do?
  • joppjopp Posts: 5
    I have the above #154 message deal on the table.

    Should I sign?
  • stevecarstevecar Posts: 148
    Is the cap cost reduction $24.50 or 2450.00? Seems like at strange number to be $24.50.If these are real numbers, then if you bought the car out at the end of the lease, your total cost would be around 32k, which would include your up front cost, monthly payments including interest and buyout. Considering cost of money and 20k miles a year, it probably isn't a bad deal. Just remember, a compromise is where neither party walks away happy.
    I purchased the same car for more than they are basing your lease.

    Part of the aparently high price is the 20k miles a year. Most leases are for 12k. If you need the miles, you are paying for them, at a lower rate, up front.
    What is the interest rate that the money factor is based on?
  • joppjopp Posts: 5
    It is 24.50 as we just wanted to make it a round $1500 up front.

    The money factor is currently .0028 but I get it at .0027 because I am a returning honda lesee.

    Thanks for the help. I feel better..

    Anyone else have an opinion?
  • awoodrowawoodrow Posts: 3
    Hi, just posted in the TSX forum looking for a lease, and now my mom is looking for a CR-V lease and wondering about the May money factor and residual for Michigan. Is it still .0028? She is a returning honda lesee, so I saw that one person said it is .0027? Is that for april or may?
  • frenchbufffrenchbuff Posts: 3
    Thanks for the response, Car_man. I ended up finding a dealer who had a 2007 CR-V EX-L 2WD on the floor. I got a 36 month, 15K/year lease at $369 and I paid about $2100 at closing. Selling price was $24,175.
  • claremukclaremuk Posts: 2
    Hi there, i am new to leasing. I have been been to several dealerships and I am getting confused (im british and new to leasing cars-have always bought second hand cars outright). I am not good at calculating everything. However, i have been offered a base price 2007 HONDA CRV at the price of $20, 500. I would put down $5900 and then pay $200 a month for 24 months, making the amount i spend over 2 years $10, 800 (for 12000 miles a year).

    Does this sound like a good deal? they were trying to get me to get a 36 month lease at $5900 downpayment and then $175 a month for 36 months.

    I dont understand how i will not be penalised if i break the lease before 3 years is up ( i may go back to UK) and at the end of the lease do i get any money back? sorry if i sound very naive! i am just new to this and i am trying to get my head around it! HELP!
  • kyfdxkyfdx Posts: 27,621
    We could give you a lot of advice about leasing... but, you don't really need it. Given your circumstances, you shouldn't lease.

    Just pick out a car, and buy it. If you then need to leave the country, sell it.

    regards,
    kyfdx

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • claremukclaremuk Posts: 2
    why is this exactly? it is more than likely that i will be here for 2 more years and therefore i have been looking at 2 year lease...i want to make sure that this is definitely not the right choice as i have never financed a brand new car and felt leasing was the mos t affordable option .
  • kyfdxkyfdx Posts: 27,621
    1) "more than likely that i will be here for 2 more years" Exactly two years? More than 2 years, but less than 3 years? What happens if you are staying 2 years, 4 months? What do you do for a car, once your lease is up?

    2) Your 2-year lease quote averages $450/mo. The CR-V has just about the best re-sale of any car going. At a selling price of $20,500, you could buy the car for $425/mo., and probably have positive equity at the end of two years (or 2.5 years, or 3 years).

    3) If you do lease, don't make a down-payment. If your vehicle is stolen or totaled, you don't get any of that back, not even a pro-rated portion. That would make for a very expensive lease.

    Since you aren't sure you will be staying for 3 years, you definitely don't want to lease a car for that long. But, two-year lease deals are fairly expensive. You've picked a great car for re-sale. Just buy it, and then sell it when you are done with it.

    I think the dealership is using your lack of experience with leases to give you a pretty poor deal, but given your situation, I wouldn't recommend leasing, either way.

    regards,
    kyfdx

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • blueiedgodblueiedgod Posts: 2,803
    Hi there, i am new to leasing. I have been been to several dealerships and I am getting confused (im british and new to leasing cars-have always bought second hand cars outright). I am not good at calculating everything. However, i have been offered a base price 2007 HONDA CRV at the price of $20, 500. I would put down $5900 and then pay $200 a month for 24 months, making the amount i spend over 2 years $10, 800 (for 12000 miles a year).

    Does this sound like a good deal? they were trying to get me to get a 36 month lease at $5900 downpayment and then $175 a month for 36 months.

    I dont understand how i will not be penalised if i break the lease before 3 years is up ( i may go back to UK) and at the end of the lease do i get any money back? sorry if i sound very naive! i am just new to this and i am trying to get my head around it! HELP!


    I am generally anti-lease, and your case is a perfect example where you shoul dnot lease.

    If your selling price is $20,500, and you are putting $5900 down, your amount to be financed is $14,600. Even if you have no/bad credit, your monthly payments will be around $300-$350 depending on the exact FICO score.

    Then, when it is time to sell, let's say in 30 months, you will have paid (30x$300) $9000 in payments, and $5900 in downpayment for total out of pocket $$14,900. A 2.5 year old CR-V with 30,000 miles (30 months x 1,000 miles/month) can fetch $16,000-$18,000... So, you get some money back.

    With the lease, you get nothing back, and if you have to leave early, you will still have to pay the remainder of your lease, without getting to use the car. If you go over the miles, you get charged exhuberant amounts.

    I suspect that the CR-V you have in mind is a 2WD/FWD LX, which will have tougher resale in any area where it snows.

    Also, NEVER EVER put any money down on a lease. Let's say your brand new 3 day old CR-V is totalled. The lease company gets the money from your insurance company for the car, you get NOTHING for the $5900 you have just put down 3 days ago.
1568101164
This discussion has been closed.