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2013 and earlier-Honda Accord Lease Questions

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Comments

  • victor23victor23 Member Posts: 201
    You don't really need the event, because you normally can negotiate the very same deal (zero drive-off, discounted sale price) almost any day at almost any dealership.
  • zaid918zaid918 Member Posts: 15
    hi nifty, can u also send me the lease spreadsheet to dodgerblue18@gmail.com

    Thanks!!
  • zaid918zaid918 Member Posts: 15
    Thank u for the info carman!!!! Much appreciated!

    Any new programs after May 3rd?
  • mookie14mookie14 Member Posts: 252
    I have 4 pymts on my honda lease remaining will honda financial mail me lease pull ahead letter. In a 36 month lease i have had only four 30 day pst dues bad $$$ problems during those times with the lst one 7-09.I have not been late since will i or should i look at others car makers. or take it to the end which is september which i am a mth early in remaining pymts august
  • jhinscjhinsc Member Posts: 399
    You may already know this, but you may find it difficult to lease your next car with your payment history. Did you also miss other payments such as credit cards? Check your credit score to see what the impact was and how it may hinder your ability to lease again. Then check with your Honda dealer if it will be possible.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi Iceman. Honda's May buy rate lease money factor and residual value for a 36 month lease of a 2010 Accord Sedan 4-cylinder EX-L without navigation with 15,000 miles per year are .00158 and 56%, respectively for consumers who qualify for its top aka "Super Preferred" credit tier.

    Honda is providing $1,200 dealer cash on the 2010 Accord. If I was in the market for one right now, I personally would shoot for a selling price of right around dealer invoice minus the $1,200.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi davidm123. Despite all of the media coverage and advertising, Honda's "Really Big Thing" wasn't really that big a deal at all. Dealers had to pay for consumers' first month's payment out of their own pocket and the money factors that Honda was providing weren't all that different from what it normally offers. Automakers often put a ton of marketing dollars into making their normal incentives sound better than they really are.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    No problem zaid918 . Honda Finance's May buy rate lease money factor and residual value for a 36 month lease of a 2010 Accord Coupe EX-L V6 with 12,000 miles per year are .00158 and 54%, respectively for consumers who qualify for its top aka "Super Preferred" credit tier.

    When negotiating your deal, make sure to take advantage of the $1,200 dealer cash that is currently available on this car. If I was in the market for one right now, I personally would shoot for a selling price of around dealer invoice minus the dealer cash.

    Car_man
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  • bdewittbdewitt Member Posts: 13
    Ok.... I drove home the car an hour ago. I think I got a good deal. Please let me know how I did.

    2010 Accord LX MSRP: $22,565 36 month lease/ 12k miles per year.

    I did a 100% sign and drive lease! NO MONEY DOWN, They also made my first payment. I have a total of 35 payments to make at $274.68 ($252.00 + 22.68 tax) I live in Pennsylvania.

    I should note that Honda approved me at the Preferred level (not Super perferred). I believe my money factor was .00235.

    HOW DID I DO? Please be honest. I don't think I did too bad, but could have I done better??
  • heat_miserheat_miser Member Posts: 6
    edited May 2010
    I just signed a Lease for a 2010 Honda Accord EX-L V-6 4 Door Sedan (No Navigation) with 12,000 miles per year... Traded in my 2003 EX-L V-6 Accord which was in Fair to Good Condition with 94,000 miles on it (dealer said he was giving me $7,750 on it), AND the dealer said that they would credit me the $1,100 worth of service that I had just done on the old car... My monthly lease payment with tax is ~$378... It sounds like it should be a LOT LESS... it also sounds like I gave them my old car for free. I am very, very upset... can you (or anyone) tell me what a decent monthly would be given this information??? I did not qualify for preferred credit because of some small credit issues, and I am not even sure what my money factor was on the lease (my credit score is about 630)... I have signed the loan/lease docs, but it is Sunday, so I am still waiting for American Honda (bank) to approve. They didn't even give me a copy of the loan papers. What, if anything, can I do if I have gotten a completely raw deal??? HELP PLEASE!!!
  • delta737hdelta737h Member Posts: 626
    edited May 2010
    heat miser,

    Honestly, this is a horrible deal. You could have gotten this vehicle for less than half the 378 monthly payment and very little paid upfront. There is no way that a 7,750 trade allowance equates to a $378 payment. It's so bad that it leads me to believe that something is missing. I'm assuming that you owe nothing on your trade as it's a 2003 EX.

    I suggest that if you haven't taken delivery of your new car yet, DON'T! Step back, take a few deep breaths, and try to understand leasing. You may want to peruse these message boards to get an idea of what others are paying. I don't know what the money factor is for your situation nor do I know the residual factor but I can make a pretty good guess.

    Here's a realistic example...

    MSRP = 29,815
    Residual 54% x 29,815 = 16,100.10 (36 months, 12,000 miles)
    Money Factor = 0.00240 (this is probably higher (270?) given your 630 credit score)
    Sell Price = 25,885 (invoice less the 1,200 cash incentive)
    Gross Cap = 25,885
    Cap Reduction = 7,750 ( Trade)
    Adj Cap = 18,135
    Term 36 months
    Sales Tax Rate = Assume 7.75% (you didn't mention your state and so I have no
    idea how taxes are computed)

    Using the above data, your base payment is

    0.00240 x (18,135 + 16,100.10) + (18,135 - 16,100.10) / 36 = 138.69

    Payment w/tax = 138.69 x 1.0775 = 149.44 (I'm guessing your state taxes
    payment receipts)

    Estimated Fees Due at Signing....

    First Month's Payment..................... 149.44
    AHFC Acq Fee................................ 595.00*
    Dealer Doc Fee............................... 250.00*
    License/plates/Reg. Fees................ 200.00
    Service Credit............................... (1,100.00)
    Total Due .................................... 94.44

    * These are probably taxable in your state.

    The Money Factor and residual may be off a bit but I'm betting that they're close. The only things that you will likely need to change are the money factor (negotiable) and residual factor (non-negotiable).You may have to tweak the sell price as you negotiate but I wouldn't increase it by more than $100-$200.

    Also, you may want to create a one-page lease proposal on your letterhead using the above information. This will save time, money, and aggravation. Email it to the dealer and do all of your negotiating via email or phone.

    My guess is that the dealer, like a shark, smelled blood and decided to clobber you to make up for narrow profit margins. I really question the 7,750 trade allowance. The evidence (payment) suggests that they're giving you nothing for your trade. This is why it's so important for people to understand how a lease is structured and how to make all pertinent calculations.

    If you need me to intercede, feel free to email me at

    diffeq@zoominternet.net

    All the Best,

    John
  • temj12temj12 Member Posts: 450
    PLEASE DO WHAT DELTA HAS ADVISED YOU. This is absolutely the worst deal I have seen. They are killing you on this deal. It made me angry when I read your post. DO WHAT DELTA HAS ADVISED YOU AND STOP IT POST HASTE. DO NOT LET THEM TELL YOU THAT YOU HAVE TO GO ON WITH THIS DEAL. YOU DO NOT!!!
  • heat_miserheat_miser Member Posts: 6
    Thanks soooo much for your response, John!!!

    I did some calculations last night on my own via Edmonds Basic Lease Calc application, and I realized that the dealer knew I didn't know what the hell I was doing when I came in yesterday... (They actually had the nerve to start the negotiations at $500/month!!!)... I live in WA state (this was at Honda of Kirkland) so sales tax is 9.5%. They never even showed me how the lease was calculated, what the components were, and kept walking away to look as if they were running some big calculations in an office before coming back with a new number. This song and dance went on for 2+ hours!!!

    Then they made me hand over my keys for my trade-in saying that this was a standard procedure (when I questioned this practice, they said they forgot to tell me earlier)... and then they sent me away in another '09 V4 Accord that was on the lot. I feel like they practically stole my old car, which to answer your question is completely paid for. I have just sent them a scathing email telling them to halt the loan process until further notice.

    I may take you up on your intervention if I have any further questions. AGAIN, THANKS SOOOO MUCH for being a concerned consumer and concerned for me.
  • heat_miserheat_miser Member Posts: 6
    Thanks for your response... I have done just that, and sent the dealer a scathing email asking them to halt the loan/lease process.
  • victor23victor23 Member Posts: 201
    I fully agree with what others have already posted in response to you. Now, if and when you have a chance to negotiate another deal, maybe you better be more conservative about your trade-in expectations. It seems to me you were given such a good trade-in allowance just to lure you into the deal. $7750 on a 2003 Accord EX-L V6 in average condition sounds a bit too optimistic. Also, forget about $1100 service credit. Any service you performed on your trade-in turns dust and has no negotiating value. The only things that matter are, basically, the model year and maybe mileage to a certain degree.
  • jollerjoller Member Posts: 1
    edited May 2010
    I got interested in a lease for my daughter for last 3 years of college. never leased before.

    Prior to arriving at dealership, I called in reponse to an ad and was told I would need to put down about 3.5k and lease payment of $129. Sounded pretty good. Closed end lease, gap isurance yada yada ya.
    heres what they offered me:

    list $22565
    disc $ -4885
    Vehicle price $17680
    Deal "pro Pack" 595 (mudflaps?)
    Tot Cap 18275
    down pay $1800
    nmet cap 16475
    #^ month payment 128.98
    payement due
    Down payment $1800
    lic/title $ 219
    doc prep $ 154
    bank fee $ 595
    taxes $1292
    ist payment $ 128.88

    due on delivery $4189

    rate 0.001580
    miles 12k
    residual 13539

    i walked out as i thought they should have included the bank fee in the price and not the accesories with a due on delivery 595 less.Note how the bank fee and the accesories are the same price.

    Should i take the deal or play hard ball?b>
  • heat_miserheat_miser Member Posts: 6
    I signed a lease for a Honda Accord that hasn't arrived on the lot yet. I left my car with them. In fact, they DEMANDED it... I was skeptical and asked a lot of questions about that. They gave me a loaner. I realized I got a raw deal on the lease pricing and wanted out and wanted my car back. They are saying that they own it now because I signed the papers... I received NO documents on the transaction except a Temp Registration on the car I didn't receive yet. Is this legal? Can they keep my car and bind me to the lease? I noticed on the Attny Gnrl's website that there is no 3 day "right of cancellation" on leases in the state of WA, but it says all pre-conditions must be met (whatever that means).
  • heat_miserheat_miser Member Posts: 6
    Apparently it is not legal to hold a lessee to a lease agreement if the lessor did not give the lessee a dated written statement of required disclosures prior to consummation of the lease. Title I of the Federal Consumer Protection Act re: Consumer Leasing says the following:

    http://www.fdic.gov/regulations/laws/rules/6500-600.html#fdic6500182

    Sec 182 reads as follows:

    § 182. Consumer lease disclosures

    Each lessor shall give a lessee prior to the consummation of the lease a dated written statement on which the lessor and lessee are identified setting out accurately and in a clear and conspicuous manner the following information with respect to that lease, as applicable… (then a list of disclosures follows)

    WA State Law agrees with Federal Law by stating the following:

    http://apps.leg.wa.gov/rcw/default.aspx?cite=63.10.045

    RCW 63.10.045
    Unlawful acts or practices — Consumer lease of a motor vehicle:

    Each of the following acts or practices are unlawful in the context of offering a consumer lease of a motor vehicle:

    ...

    3) Failure to comply with the disclosure requirements of Title I of the federal consumer protection act (90 Stat. 257, 15 U.S.C. Sec. 1667 et seq.), which is also known as the federal consumer leasing act, including, but not limited to, failure to disclose all fees that will be due when a consumer exercises the option to purchase.

    Also for good reading is Federal Regulation M:

    http://www.fdic.gov/regulations/laws/rules/6500-2000.html#fdic6500213.3

    (1) Form of disclosures. The disclosures required by § 213.4 shall be given to the lessee together in a dated statement that identifies the lessor and the lessee; the disclosures may be made either in a separate statement that identifies the consumer lease transaction or in the contract or other document evidencing the lease. Alternatively, the disclosures required to be segregated from other information under paragraph (a) (2) of this section may be provided in a separate dated statement that identifies the lease, and the other required disclosures may be provided in the lease contract or other document evidencing the lease. In a lease of multiple items, the property description required by § 213.4(a) may be given in a separate statement that is incorporated by reference in the disclosure statement required by this paragraph.

    ...

    (3) Timing of disclosures. A lessor shall provide the disclosures to the lessee prior to the consummation of a consumer lease.
  • willb3989willb3989 Member Posts: 3
    Hi everyone,

    I qualify for AHFC's Super-Preferred credit tier. What kind of money factor should I expect from the dealer?

    I know they can manipulate it to make a greater profit so I'd like to go in with a "ballpark" number tomorrow.

    So far, I've been able to negotiate the cap cost down to $20,899 on the EX Coupe Automatic. Is this a good deal?

    Any advice would be greatly appreciated!
  • delta737hdelta737h Member Posts: 626
    edited May 2010
    joller,

    Actually, it doesn't really matter whether the 595 bank fee is paid up front or rolled into the lease (six or one-half dozen of the other). Either way, you're going to pay it. However, if you prefer, the dealer can roll it into the lease. In fact, the dealer can roll in all the upfront fees into the lease.

    The dealer pro pack (595) sounds like BS. I have no idea what this includes. If it's only mud flaps, then 595 is a lot of doe-rey-mee to pay for just mud flaps. However, you did get a fantastic selling price (17,680) that is about the lowest that I've seen.

    I know that this car is for your daughter and so you probably want to keep the payment as low as possible. However, the effective interest rate is about 3.8% and I would be inclined to roll everything into the lease. Where are you going to get a personal loan for 4,188 at 3.8%? Another issue is that I wouldn't put $1800 down because (a) a car is a depreciating asset and I'm sure you wouldn't invest in stock that you know will lose value over time and (b) God forbid, if the car is totaled or stolen, it's not likely that you'll recover most or all of your down payment.

    What is your sals tax rate? It looks like it may be no more than 7%. I always like to verify the sales tax.

    John
  • victor23victor23 Member Posts: 201
    @ post #4027

    Just browse through this discussion, and you can find most of the answers you need.
  • brabikebrabike Member Posts: 1
    edited May 2010
    Car Man,

    Please let me know Honda's current buy rate lease money factor and residual value for a 36 month lease with only 12,000 miles per year of:

    a 2010 Accord Sedan 4-cylinder EX-L without navigation; and

    a 2010 Accord Sedan 6-cylinder EX-L without navigation.

    Thanks for all the great information.
  • sgrctssgrcts Member Posts: 1
    edited May 2010
    I got an offer for an Accord EX-L with no navi for 350 zero money down. Is this a good deal? I was thinking of countering 350 zero money down with the spoiler, moon roof visor and navi- do I have any chance of getting that?
  • bvdj84bvdj84 Member Posts: 1,724
    You could probably get all of that, but your payment will need to go up to about $390 approx. The navigation is nearly $2k as an option, For every $1k, it is about 20-30 more on your payment. If this is truly what you "want" then go for it, start a new deal on an EX-L with Nav. Be careful about accessories, they are not cheap at the dealer.

    Reply back with your sale price they gave you on both NON nav and Nav models.
  • bpw724bpw724 Member Posts: 1
    Hi All and Car Man, I have been reading the boards for sometime and have found some very useful information. I was quoted the following yesterday at a Northern NJ dealer and was looking for feedback. Let me know what you think about this deal.

    Accord EX-L V6 w/Navi - 36mo, 12K per

    Total Down - $1,500 (includes first payment, all fees) they will also be paying my last payment on my current lease ($329)

    Monthly Payment - $389 (taxes included)

    Thoughts???
  • gperrgperr Member Posts: 157
    Car_man,

    I am trying ot make a decision on what direction to go. Can you please provide the current residual and MF for 36 months/12k miles for 2010 Accord Coupe Auto EX-L V6 (with and without Nav), and 2010 Accord Sedan Auto EX?

    Also what is the change in residual for only 10k miles/year?

    thanks.

    gperr
  • hscorpio05hscorpio05 Member Posts: 2
    edited May 2010
    Hi all, first time posting. I have an offer on a 2010 Honda Accord LX w/ leather installed (dealer will use factory installer). 36 months @ $251.00, $1000.00 down. Monthly payment includes taxes, dealer pays my last lease payment for my 06 Saturn Ion. Good deal, can I get them a little lower?

    Also, 15,000 miles instead of 12,000. Don't know if this will help.
  • bvdj84bvdj84 Member Posts: 1,724
    That seems like a decent deal, I would work on a $0 down deal. But it would be about $415 if you didn't put it down, but they could go down a bit. What what the sale price?
  • dyingbreeddyingbreed Member Posts: 8
    Can you tell me what Credit Scores Honda is looking for To Lease?
  • dyingbreeddyingbreed Member Posts: 8
    Still curious to know what the money factor is for fico's in the 660-700 range on an Accord??
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    I'd be happy to help you out, brabike. Honda Finance's June buy rate lease money factor and residual value for a 36 month lease of a 2010 Accord Sedan 4-cylinder EX-L without navigation with 12,000 miles per year are .00158 and 58%, respectively for consumers who qualify for its top aka "Super Preferred" credit tier.

    The numbers for an otherwise identical lease of a '10 Accord Sedan V6 %X-L without navigation are .00158 and 56%.

    When negotiating your lease on this car, make sure to take advantage of the $1,200 dealer cash that is currently available on it.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Thanks bpw724. To me, the best way to evaluate this deal is to look at the selling price that was used to arrive at this payment. The selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. Without this number, it is difficult to tell how large a dealer discount you are being given, and in turn if there is any room left to negotiate.

    Let us know what this car's selling price is and I'm sure that either myself or another knowledgeable community member will gladly let you know what they think.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hey gperr. Here you go.

    Honda Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2010 Accord Coupe EX-L V6 with navigation and 12,000 miles per year are .00158 and 52%, respectively for consumers who qualify for its top aka "Super Preferred" credit tier.

    The money factor for an otherwise identical lease of an EX-L Coupe without navigation is the same, but its residual value is 54%.

    Again, the money factor for a lease of a '10 Accord Sedan EX 4-cylinder is the same, but its residual value is 60%.

    When negotiating your lease, make sure to take advantage of the $1,200 dealer cash that Honda is currently providing on Accords.

    Car_man
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  • dyingbreeddyingbreed Member Posts: 8
    Car_man

    What is the money factor for tier 2 credit?

    Between 660-700 scores?

    Is it a big difference?

    Thank you!
  • gperrgperr Member Posts: 157
    Car_man

    How about the residual on the EX-V6 sedan for 36/12k? (assuming MF is .00158- since it is with all the other accords)

    Thanks
    gperr
  • jimfireftrjimfireftr Member Posts: 26
    Any thoughts on the offers?
    LX 12K/year 36 months
    Sale price 18,870.35
    Doc Fee 250.00
    Acquistion fee 595.00
    License fee 34.25
    Cap Taxes 526.75
    Gross Cap Cost 19,465.35
    Net Cap Cost 19,992.10
    Residual 13,539.00

    Advance Payment 232.23
    Upfront charges 334.63
    Initial payment 566.86

    Base monthly payment 232.23
  • delta737hdelta737h Member Posts: 626
    edited June 2010
    jimfireftr,

    The sell price of $18,870.35 is very competitive and the doc fee of $250 is typical of what Ohio dealers charge. Seems to me that your upfront charges should be...
    $250 + $34.250 = $284.25 instead of $334.63 and so, I'm not sure where the additional $50.38 is coming from.

    Although you didn't mention your sales tax rate, it's 6.75%. At least, that's what was used to compute your taxes of $526.75. In Ohio, taxes are based on total taxable payments. Your taxable payment amounts to $216.77 for which your tax was calculated as follows...

    36 x 0.0675 x $216.77 = $526.75

    The residual value equates to 60% of MSRP = $13,539 suggesting an MSRP of $22,565. Your money factor is 0.00158. This equates to a lease amortization rate of 3.81% when coupled with your payment of $232.23 as well as the adj cap, residual, and term.

    It appears that you have a very reasonable deal. However, you should try to account for the additional $50.38 upfront charge described above if you haven't already done so.

    John
  • dyingbreeddyingbreed Member Posts: 8
    What is the money factor for tier 2 credit for leasing say a Accord EX Sedan?

    Between 660-700 scores?

    Is it a big difference tier one and tier two in their lease rates?
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi dyingbreed. I'm not sure what the factor is for someone with a 660-700 credit score, but I'll try to find out for you.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hey gperr. Honda Finance's current buy rate lease money factor and residual value for a 36 month lease of an Accord EX V6 Sedan with 12,000 miles per year are .00158 and 58%, respectively for consumers who qualify for its "Super Preferred" tier.

    Car_man
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  • gperrgperr Member Posts: 157
    Thanks again Car_man- I pulled the trigger this weekend. Got my wife a new Silver/black 2010 Accord Sedan EX-L.

    here is my Deal:

    MSRP $27,540
    Purchase Price: $23,209 (including their dealer pack-mud guards/wheel locks/trunk tray & Window VIN Etch)
    36 months, 12k AHFC lease
    Residual 58%
    MF .00158
    Sales tax in NJ is 7%

    Monthly Payment: $300
    Out of Pocket: $704 (which includes 1st month $300, NJ 3yr Reg. & title fees $227.50, Doc Fee $169, and NJ Tire fee $7.50)

    I have brought in this dealership a decent amount of business and got them on an unusual very slow saturday.
  • dyingbreeddyingbreed Member Posts: 8
    That would be great.
    I'm trying to figure out the rate difference.

    _____________________________

    Hi dyingbreed. I'm not sure what the factor is for someone with a 660-700 credit score, but I'll try to find out for you.

    Car_man
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  • ral2167ral2167 Member Posts: 791
    is that 4 cylinder or 6 cyliner? navigation or no navigation?
  • victor23victor23 Member Posts: 201
    Delta737h is correct, $250 is a standard dealer fee in OH, I don't know if it is state-regulated or not. I also have no idea why upfront charges don't add up. Having said that, I don't feel your sale price is competitive enough in the Ohio market (which currently is, in my recent experience, one of the cheapest nationwide). Just for the reference, have a look at Voss Honda in Tipp City, their website offer is 0-0-0-0 and $228x35 mo for LX-P (not LX), which means you could do even better than that.
  • gperrgperr Member Posts: 157
    edited June 2010
    4 cyl no nav.

    MSRP on an EX-L V6 would be $29,815
    MSRP on EX-L w/Nav would be $29,540
    MSRP on EX-L V6 w/Nav would be $31,815
  • biswajitbiswajit Member Posts: 16
    Hello all,

    This is one of the most helpful forums I have ever come across online, and have been able to know a lot about leases because of posts on this forum.

    I stay in Raleigh NC and am trying to get a decent deal on a lease for Honda Accord 2010 EX Sedan I4 Automatic. I have been given the following quotes by a dealer in the region. The sale price I was quoted was "The price of the 2010 Accord Sedan EX AT is $21,141 plus fees." and the MSRP on the dealer site is 24630 + fees.

    Lease numbers for 12k yrly 36 months
    Paying upfronts of $846
    Monthly payment is $249

    Lease numbers for 15k yrly 36 months
    Paying upfronts of $861
    Monthly payment is $262

    Zero down (no money out of pocket)
    12k 36 months
    monthly payment is $274

    Zero down
    15k 36 months
    monthly payment is $288

    I kind of get a feeling the deals are balanced and not too bad or too great, but I would definitely like to hear expert opinions on them.

    Any kind of help would be highly appreciated!

    Thanks in advance,
    Jit
  • gerbiesgerbies Member Posts: 9
    I currently have a 2007 Honda Accord EX-L, V6 lease, which will mature in September. I started the shopping process as I wanted to see what else was out there other than an Accord. I still favor the Accord. After reaching out to a couple of dealers, the dealer with whom I took the lease on my 2007, said it might be advantageous to end my lease early in order to take advantage of the amazing deals on 2010 Accords right now. He also said the model/trim I want (Accord EX V6 with cloth interior) is a harder trim to come by versus the EX-L or 4 cylinder with cloth. Here's what he told me:

    - There's no penalty for terminating the lease, if the dealer purchases the car.
    - Because I only have 19,000 miles (I don't drive a ton) after almost 3 years, I know this would be a great car for resale for the dealership.
    - He said, I might have "equity" built into the car, which would make this deal smooth. How does that work? For example, the payoff per Honda Financial is $15,600. If he's willing to offer, say, $16600, what happens to that $1000?? I know what happens in a regular trade-in, but what about a lease?

    Currently, the deal he is offering (which is the best within 100 miles on-line) is:

    2010 Honda Accord EX V6
    MSRP $27750
    Price - $23,600 (including destination fees) (this is $1700 under invoice)
    Extra - Title/registration and tax

    I will see what my interest rate will be; we have super great credit and will qualify for the best interest rate (though, I will go with the dealer cash on this deal versus the current 0.9/1.9% offering).

    Help? Does this make sense to anyone? Will I be able to do this without killing my credit? I need to understand what the equity piece is about.

    Thanks in advance!
  • victor23victor23 Member Posts: 201
    Your dealer is probably right. I think I heard somewhere that Honda allows you to pay off and buy back at any moment without fines. Please someone correct me if I am wrong. If you pay off, you pay sales tax to purchase a car. If the dealer pays off, he does it tax-free, so it makes more sense for him. He then passes that $1000 difference to you. In this case, in the form of a trade-in allowance. You just sign the paper authorizing the dealer to pay off and acquire your leased car. This is legal and very common, I did that 3 years ago, but in my case it wasn't an early termination, I just had equty in my Honda with 24k miles after 36 months. This all should not affect your credit score in any way, these are two unrelated matters.

    Now, having said that, I don't think your dealer is honest with you. First, current deals are great indeed, but they will become only better as the MY nears its end in September (caveat: your choice may become limited at the end of MY). Second, I don't think there is currently any equity in any 2007 Accord, especially V6. Assuming you have a sedan without nav, your TMV for trade-in is about $15k (check it yourself here at Edmunds), i.e., your car isn't worth a payoff as a trade. I have the same situation with my own Accord (matures in 3 weeks, 22k miles). In my opinion, the dealer just wants to bait you to lure into the deal RIGHT NOW, he will not offer you the best deal possible and will handily recover the excessive trade-in allowance.
  • jimfireftrjimfireftr Member Posts: 26
    Delta, Thanks. I have since questioned the deal, and the dealer stated the upfront fees are $0. This was added due to "accounting reasons" Victor, the deal is actually through Voss, but you need to read the fine print in regards to your quote. "Excludes tax, tilte, license & dealer fee". The deal I have is much better.
    Update on best quotes with sign and drive ($0 out of pocket)
    All fees included:
    LX 12K/yr 220.96
    LX 15K/yr 233.64

    LX-P 12K/yr 241.23
    LX-P 15K/yr 254.45
  • victor23victor23 Member Posts: 201
    Jim, of course I read the fine print. What you are getting now exactly illustrates my point: 221 sign and drive is much better than 232 and 567 upfront (which you quoted initially). Congrats!
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