2013 and earlier-Honda Accord Lease Questions

camokatu · July 2013

I've never dealt with these companies, http://www.easyleasingdeals.com/ for example, but was wondering if anyone had experience with these types. How are they different from dealers? What makes their prices cheaper?

huskerfan5 · July 2013

They may have relationships with dealers where they can buy the car for less than you can. They also may charge higher disposition fees and have tougher wear and tear standards. I did a lease with a third party leasing company in 1998 and will never do so again. Unless someone told you about their positive experience about a specific company, I would stay away.

camokatu · July 2013

Still deciding when I should lease Accord. I was waiting for new programs from Honda that started today, but looks like there aren't any programs for leasing yet. Also saw this post which seems to make sense and makes my decision even harder to make. Will higher residual value of the vehicle make up for higher price of 2014 models? How will money factor play out? Should I wait until end of July or wait for end of August/September to make my move? Lastly, are all these things that I am preoccupying myself with only makes $5-10 difference on the final lease price?

huskerfan5 · July 2013

Re-read post 5315

camokatu · July 2013

Yes, that the post I was referring to. At the end of June I had the following numbers for 2013 Honda Accord Sport Manual for example from Weymouth Honda:

residual: 59%
MF: 0.00089
price: $21506.05
lease price: $265.63 (includes tax)

When I checked today it is:

residual: 58%
MF: 0.00075
price: 21,490.43
lease price: $266.69 (includes tax)

This shows how residual affects final price even though MF and sales price have decreased. So what I am worried about here is that as I move to August and September, available 2013 models especially manual will become less available (hard to negotiate price?) and 2014 models will just start showing up, making negotiations hard as well?

While the numbers above the difference is only $1 per month, but as I said with lack of cars I might have hard time getting a good deal. Thoughts?

huskerfan5 · July 2013

The biggest factor is the money factor. No way to predict, it's the economics dept vs the marketing dept.
A point drop in the residual would be offset by about a $250 decrease in price. That's not going to kill you if you guessed wrong by a month.
Why don't you check out the board last Sep and see how residuals changed. This year's change should be less since it isn't a redesign.

camokatu · July 2013

OK, thank you for your help.

nirvana3 · July 2013

Carman can you please give me the MF and residual for Accord EX-L w/Navi and w/o Navi. Also if there is any incentives offered this month. Thanks

syr · July 2013

Is it possible to lease LX for 3 yr/12k 0 drive off $220 a month?

camokatu · July 2013

There are many factors at play in setting lease price of the car: sale price, residual value, money factor, state you are in (tax, registration fees). Quick look at lease calculator from Weymouth Honda shows around $270/mo with sign and drive.

pacinpelo · July 2013

CarMan (or anyone)... Is Honda providing any cash on 2013 Accords (specifically EXL V6 trim)?
It looks to me that inventory is bloated but not many V6s around

bigal77 · July 2013

I leased my wife a 2013 EX-L 4 cylinder sedan with navigation last night using the information gained from this forum. I showed the dealership the Weymouth Honda website details for the car and told them to match it. They actually did a little bit better. Just like my previous 2 leasing experience from non-luxury brand dealerships they tried playing some funny business with numbers. I told them I was putting $2000 down and I go sign the paper work and it says I am putting $2500 down at singing. They then said they were giving me $500 flex cash. It didn't say this anywhere on the contract so I made them write it in and initialize it. Bottom line is I put $2K down any payments are $299.07 a month for 36 months in Virginia where the tax is 4%. As a side note the Virginia sales tax on vehicles went up from 3% to 4% on July 1st. According the salesman the 4% sales tax is only paid on the amount the car depreciates during the lease. This of course wasn't the way they calculated the tax on the buyers order.

Another thing I found interesting is the dealership had Honda summer clearance signs all throughout the dealership. I don't see this on Honda's website anywhere. They said the signs are up a little bit early. Makes me wonder if the offers are going to change next week? The current offers on Honda's website are said to last till Sept 2nd. Would Honda change the offers in the middle of a current incentive period? Anyone have any insight into this?

Here are the details of my lease:
Agreed upon value of the vehicle: $27050 (according to the honda contract)
$499 processing fee (listed on separate buyers order)
$1079 sales tax (listed on separate buyers order)
$42.75 tags and title (listed on separate buyers order)
This adds together to $28672.02
$2200 cap cost reduction ($2500 down - $500 flex cash + $299.07 first month payment)
Residual value: $16931.75
rent charge: $1173

According to the Honda contract the gross capitalized cost is $28725.27
This of course doesn't match gross capitalized cost I calculated from their individual items listed on the separate buyers order. It is pretty aggravating that their numbers don't match up between the Honda contract (no breakout of the taxes and fees on the Honda contract) and the separate buyers order. It seems like the dealer just pulls numbers out of the air for the Honda contract to make the monthly payment workout. Oh well. As long as they don't call me in to sign a modified contract I am happy with the deal I got.

CarMan@Edmunds · July 2013

Hi gpb59. Honda Finance's July buy rate lease money factor and residual value for a 36-month lease of a 2013 Accord Sedan EX-L 4-cylinder with 12,000 miles per year are .00075 and 59% for consumers who qualify for its top credit tier.

The numbers for an otherwise identical lease of a Sedan EX-L V6 are .00075 and 56%.

Car_man
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CarMan@Edmunds · July 2013

Hi camokatu. Honda Finance's July buy rate lease money factor and residual value for a 36-month lease of a 2013 Accord Sedan Sport with 12,000 miles per year are .00075 and 58% for consumers who qualify for its top credit tier.

Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum

CarMan@Edmunds · July 2013

FlexCash means that Honda dealers were given a pool of funds that they can apply towards leases of vehicles through Honda Finance. Dealers can use $500 worth on leases of a '13 Accord if they so choose. Try to take this cash into account during your negotiations.

Car_man
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Prices Paid: Buying & Leasing Experiences Forum

CarMan@Edmunds · July 2013

Hi nirvana3. I just mentioned the lease program for the Accord Sedan EX-L a few messages ago. Please check there for the information that you are looking for. Adding navigation knocks 2% off of the car's residual values, but has no impact on the money factors.

Car_man
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Prices Paid: Buying & Leasing Experiences Forum

CarMan@Edmunds · July 2013

Hey pacinpelo. The only cash that's out there on the Accord is the Flex Cash that I just described.

They did get really aggressive with the Coupe leases if you're interested in that though. Its lease program is different than the sedans'.

Car_man
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Prices Paid: Buying & Leasing Experiences Forum

camokatu · July 2013

Thanks Car_man!

camokatu · July 2013

Can you elaborate on "really aggressive"?

mnz1999 · July 2013

Hi everyone, I just got lease quote on 2013 Accord EX. I am wondering what do you guys think.
MSRP 26195
36 Months and 24K miles a year ( I drive a lot)
35 Monthly Payment of $368 no money down or due at signing (not even first payment). everything was rolled into $368 (Tax 8%, DMV, all fees and first Payment).

I didn't get the break down yet and i checked it with weymouth honda and it seems to be aligned with it. what do you guys think is it good?

thanks

mnz1999 · July 2013

I need to amend the payment of 2013 Accord EX i posted earlier. $368 does not include the 8% tax (miss communication between myself and dealer). i got a revised quote of $375 a month only 35 payments
zero down (just sign and drive)
36 Months and 24K miles a year

Car Man please let me know how's the deal. i need to take the car by tomorrow. other members your comment and opinion are welcome as well.

thanks

dandydan9 · July 2013

Prepaying for that much additional mileage is a mistake.

If the car is stolen or otherwise totaled, you will not benefit
from that prepayment and the insurance company will not reimburse
you for the additional monthly payments you made.

It is similar to prepaying the sales tax in total up-front instead of including it
in the monthly payment.

huskerfan5 · July 2013

The lease payment is based on the capitalized cost of the car (sales price, lease inception fees, DMV fees, doc fees etc), the money factor and the residual.
If you provided those details, we would be able to provide comments. You don't negotiate a lease based on the monthly payment, you obtain the money factor and residual and lease inception fees and, then if they are reasonable, you negotiate the purchase price just as if you would be buying the car. Put all the numbers into the lease formula and then you understand what your monthly payment represents.
The fact that this is a 24K miles/yr lease makes it impossible for us to even guess what price the dealer is selling the car since none of us have probably ever seen a residual percentage for such a lease. I can't tell if he is charging under invoice or over MSRP. Even understanding your DMV helps since fees can vary widely by state.
Go back to the dealer and get all the details and then post. Rent a car for a day if you have to but don't blindly enter a lease because the payment fits within your budget unless you don't care that the dealer makes a huge profit at your expense.

huskerfan5 · July 2013

dandydan, did I miss something? He's doing a sign and drive with nothing due at signing.
I agree with your position 100% and always do my deals with 36 equal monthly payments and nothing else paid at signing. He's not even paying the first month payment at signing.

dandydan9 · July 2013

True, prepaying up-front for the mileage outside of the monthly payments would be the worst possible thing to do.

I just do not like to pay for something I may not benefit from in the event the vehicle is totaled prior to lease expiration.

Insurance plus gap will cover the termination of the lease if the vehicle is totaled, regardless of the mileage on the vehicle at that time.

In that case, you would have been paying for the extra12k mileage annually for naught.

km38ia · July 2013

I just leased my 4 door accord ex-l 4 cy.
sticker was 28795.
36 months/15,000 miles a year
0 sign and drive. didn't pay first month.
335 plus tax.

i think it was a pretty sweet deal. wish they would have thrown in a cargo net!

gmanusmc · July 2013

Dandy - I guess he could bet that he will total the car during his lease term but look at it this way - if he really does drive that many miles, he only pays about 8 cents a mile if it's cooked into the lease in advance and 15 or 20 cents a mile if not and he ends up 36,000 miles over at lease end resulting in up to $7200 mileage penalty. If he cooks those miles into the lease, he pays about $2880. If he actually drives those miles and the car is totaled or stolen, he really hasn't lost anything - he's just paid for his actual use of the vehicle. Now if he pays for those miles and doesn't use them - that's different - but even in that case, he will have a reduced residual and might realize some equity on a trade or private sale.

mnz1999 · July 2013

thanks for the reply...waiting for the dealer to get more details.

mnz1999 · July 2013

this is exactly i had in my mind. Yes I do drive 24K miles a yea... I could have bought the car I guess around 23000K plus 8% tax 23840 OTD and at the 1.9% interest rate for 60 months the payment would have been $435 (rough numbers). another scenario if the OTD price would be $24000 payment = $419 vs lease $375 (only 35 payments). But i am not planning on keeping the car for more than 3 years even if i had bought it so with high mileage that i drive the next dealer would defiantly ding me on my trade...that was the thought process behind lease vs buying (not sure how good assumptions i made)
I am waiting for more details from the dealer to share with you guys (this will help future consumer with high mileage lease).

thanks for your input so far

camokatu · July 2013

What state are you in and what dealership?

mnz1999 · July 2013

here is the info
36 months 24K miles/year
MSRP: $26,195
Sale Price: $23,524
Residual Value $12,231 (47%)
MF: .00075
Tax 8%
Bank Fee: $595
Doc fee: $75
DMV 172.50

Monthly Payment of $375 (only 35 payments coming out of my pocket. sign and drive. first payment and everything else rolled into the payment).
if i am reading it right...Weymouth Honda's website quote is $397 (including 8% tax and zero due at signing.
what do you think?

thanks

gmanusmc · July 2013

I'm sure huskerfan will chime in but in my opinion, to be able to drive an EX for 3 years and 72000 miles for around 18 cents a mile sounds like a sound decision on your part - especially given the perks Honda allows on lease turn in.

Congrats!

Bill G

km38ia · July 2013

I'm in southern Cali
Cerritos Honda
Kendra was my dealer

huskerfan5 · July 2013

Assume you have also looked through the Prices Paid forum but if you are comfortable that the sales price is competitive for dealers in your area, go for it.

pacinpelo · July 2013

CarMan (or those who are in the know)... I notice that Honda's current incentives are dated thru 9/3/13.. do you think then they are all in with their 2013 model clearance closeout incentives OR could their be something in August.... looking to time an end of month deal...

runnerrat · July 2013

I've been reading this forum for awhile, but have finally reached the need to post. I'm shopping for my first car and want some feedback and where I might further negotiate as well as other questions to ask (or things to try and get included) about the best deal I've been quoted so far on a 12K, 36 month lease for a 2013 Accord LX. Details are as follows:

1) Capitalized Cost: $21,033.30
2) Cap-cost reduction: $0
3) Money Factor: 0.00075
4) Residual Value: $13,729.30
5) Total due at signing $0
6) Monthly lease payment including Local County tax: $228

robbinedin · July 2013

was bankfee ,doc fee everything included in lease. one of our local dealer has ad for 169 for LX

ALL New 2013 Accord LX 4 Door
Automatic * Bluetooth * Rearview Back-Up Camera * Front Side Curtain Airbags Air Conditioning * Power Windows/Locks * ABS Brakes * AM/FM/CD * Cruise Control Keyless Entry With Immobilizer Theft Deterrent System * Alloy Wheels
2013 Accord LX.jpgFree Oil Changes & Unlimited Car Washes

Lease For Only $169 per month/36 months** NO MONEY DOWN

Subject to Tier 1 Credit Approval.**Based on 36 mo lease, 10K mi/yr @ .15 additional. Total payments $6,084. Residual $15,719. No Money Down! Just taxes (NJ $519.96, PA $668.52), Doc Fee, DMV Fee & Bank Acquisition Fee $595. MSRP $23,270. Prices include delivery & prep fees, up to $1500. In wear termination included. Full Gap insurance protection. Expires 7/29/13. No two offers combined.

runnerrat · July 2013

That looks like a great deal, but 10K miles/year is too low for me. I need closer to 1,000/month. I've gotten a few responses from other dealers when I discussed my current offer, and it seems it is about the best anyone is willing to offer. Ideally, I'd like to bring it down a bit more, but no one seems to be willing to budge further.

gmanusmc · July 2013

Runnerrat - looks like a good deal - when you factor out Honda's lease initiation fee of 595, your selling price is more than 1000 below invoice. There's been some talk of deals reaching 1500 below but I don't think that is common. If you were able to get another 500 off it would bring the payment to around 215.

Good luck!

Bill G

huskerfan5 · July 2013

Taxes (519), doc fee (est 300), DMV (est 300) and Bank Fee (595) is a total of $1,714. Putting that into the lease would add about $50 bringing it up to $219. Add about $12 a month to go to 12K per year brings you to $231. Runnerrat is at $228 but probably with a lower sales tax but he has zero due at signing so it's actual 35 payments @ $228 vs 36 @ $231. Since runnrerat would be paying more if he was in NJ, I'd say these deals are very close.

pjny77 · July 2013

Ok...just for "you know what" and giggles...I emailed the internet sales department of a dealership by me. I requested a quote on a 2013 Honda Accord Sport with 15k miles/yr and zero down. Within one hour, I got a quote of $285, zero down. In addition, the salesperson explicitly says that I must come in to further negotiate the deal.

So here's my question, what should my next step be in terms of negotiating? I'll be honest, $285 is well below my monthly allowance that I was hoping to stay under, but I know I can get them down more since that's their first offer.

I don't know if this number includes tax, but I'm assuming it doesn't. What should I ask to see when I walk in to meet with them?

pjny77 · July 2013

I know there are all kinds of fees I forgot to mention above that I'm not factoring in, but if I can get them to also include those in the lease deal and essentially do a "sign and drive" deal, I'm all for it. I'm just not sure what angle to take.

gmanusmc · July 2013

Negotiate your best price (1000-1500 below invoice) and if you get their best lease factor, you will have a good lease payment.

Bill G

pjny77 · July 2013

Can someone tell me what invoice price is for the 2013 Honda Accord Sport? Or tell me where to look?

gmanusmc · July 2013

Go to the new cars section on this site and click your way to pricing for your model.

pjny77 · July 2013

I just stopped by the dealer during my lunch break and was given a money factor of .00075 or 1.8%. I know that's a great rate, but is there a way to determine if it's the best rate I can qualify for? My credit score is in the low 800's (I checked 2 weeks ago).

This is for a 2013 Honda Accord Sport, 15k miles/yr, CVT.

gmanusmc · July 2013

I believe that is Honda's money factor right now for those in their top credit tier. If you can negotiate a good selling price to around 1000-1500 below invoice, you should wind up with a good lease deal. Don't forget that on a lease, there is a 595 lease activation fee that is added to your agreed to selling price and is not negotiable. Some dealers also have that $500 flex cash to sweeten the deal a little. The flex cash might get you to the 1500 below figure.

Good luck!

pjny77 · August 2013

OK...in the last 24 hours, I've visited 2 separate dealers and walked on both based on them not wanting to negotiate on their selling prices. The vehicle is a 2013 Honda Accord Sport, MSRP $24,980, invoice, $22,928 (including dest.)

One dealer came in at $500 over invoice and the other was $300 over invoice. This morning, I got a third selling price for $100 under invoice. I'm making progress, but I feel like I won't come near $1,500 under invoice.

Based on Truecar and Edmunds...this vehicle has been selling for $22,729 - $23,449 based on my zipcode (NY-Westchester).

Am I being unrealistic with my target selling price?

My intent is to lease, 15k miles/yr, 36 months.

The money factors and residuals that I have been quoted with are:
.00075 with 58% res.
.00065 with 56% res.

huskerfan5 · August 2013

Suggest you post your experience in the Prices Paid forum at this point. Many people over there don't look a the Leasing board.

user404 · August 2013

Hey guys,

Leased this car yesterday and made a post on "Honda Accord Prices Paid" forum. Will not waste valuable storage space here, so here is the link to the post.

Appreciate all of your help!

2013 and earlier-Honda Accord Lease Questions

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