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2013 and earlier-Honda Accord Lease Questions

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Comments

  • gmanusmcgmanusmc Member Posts: 699
    Ok guys - I think you finally got through to this thick military mind - just did a loan calc based on my original example and the amount of interest comes out right for 32.5k financed at 1.9 for 36 months. I've just always looked at it simply as money factor multiplied by the sum of cap cost and residual. Now if we can get Brian to fly us into myrtle beach, we're set.

    Thanks,

    Bill
    2016 ES350 Lux/Atomic Silver
    2017 Accord Sport CVT Mod Steel Metallic
  • delta737hdelta737h Member Posts: 626
    Count me in!

    John
  • delta737hdelta737h Member Posts: 626
    kyfdx,

    You said essentially the same thing I said. However, your explanation is much shorter, easy to understand, and much more elegant than mine. Wish I had thought of it.

    John
  • delta737hdelta737h Member Posts: 626
    Hey Bill!

    Many thanks for your highly valued service to our country! May God Bless you and yours.

    Regards,

    John
  • kyfdxkyfdx Moderator Posts: 234,725
    Thanks.. I get a little practice... ;-)

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  • gmanusmcgmanusmc Member Posts: 699
    Thanks John - and thank you for educating me on the more intricate mechanics of the accounting used to calculate the cost of a lease. I know you recognized what I was getting at (you obviously hear it a lot). I was trying to make the point that it might cost more in the end if, at lease end, the residual is financed at a used car interest rate rather than just doing a conventional finance right from the start at 0.9 or 1.9. I just stated it poorly.

    Anyway, thanks for your help and I will be sure to check out your site in detail over the next few days.

    Take care, Bill
    2016 ES350 Lux/Atomic Silver
    2017 Accord Sport CVT Mod Steel Metallic
  • delta737hdelta737h Member Posts: 626
    Thanks Bill. If you have any questions or suggestions for how my site can be improved, please let me know.

    All the Best,

    John
  • gmanusmcgmanusmc Member Posts: 699
    Thanks for the info kyfdx - between you and John, I see that auto lease amortization is a bit more complicated than the simple formula we all know and love. Using the formula you and John provided, I still come out with the same figure I had for the monthly lease cost so I guess all is good. I have been doing some looking and haven't come across a program or spreadsheet that calculates the detailed amortization. It's not critical to getting a good lease deal but it would be one of those nice to have things to have all the details at your fingertips. Again, thanks for your help.

    Bill G
    2016 ES350 Lux/Atomic Silver
    2017 Accord Sport CVT Mod Steel Metallic
  • kyfdxkyfdx Moderator Posts: 234,725
    Well.. a lease always has a straight-line amortization, unlike a loan..

    When you calculate the monthly finance charge, that's not an average of all months, but the same every single month...

    So... if the CAP cost is $36K and the residual is $18K on a 36 month lease, then the lease balance will drop exactly $500, each month... And, the finance portion of the lease will be calculated on an average of the CAP + Residual.. so, finance charges apply to $27K, each month, regardless of current lease balance (in this example).

    Hope that helps a little..

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  • delta737hdelta737h Member Posts: 626
    edited August 2013
    Bill,

    The link I provided earlier...

    https://autoleasegeek.com/wp-content/uploads/2010/12/sample-lease-amortization-s- - - chedule.pdf

    directs you to a complete lease amortization schedule that was done on Excel.

    John
  • gmanusmcgmanusmc Member Posts: 699
    You see - that's what I thought and that's one reason this whole discussion started - my perception of a simplified formula that included the residual led me to believe there is interest charged on the residual. John's spreadsheet indicates differently. It shows amortization similar to a home mortgage where the interest is greater and the reduction of the remaining balance smaller at the beginning of the lease. A monthly interest charge is applied to a continually decreasing lease balance until the end of the lease term leaving only the residual as the remaining balance. I've never had a reason to look beyond the old mf(cap cost + res) formula so this is all new to me. And after looking at John's background and website, I've been enlightened.
    2016 ES350 Lux/Atomic Silver
    2017 Accord Sport CVT Mod Steel Metallic
  • gmanusmcgmanusmc Member Posts: 699
    Thanks John - I did look at the amortization sample earlier today and it was very helpful - I think it cleared up my misperception of how the interest is applied. I say "think" because in kyfdx's post just prior to yours, he states the application of the interest and reduction of the balance owed is straight line. The spreadsheet sample seems to show that's not the case. I guess maybe that's what many of us believe because of the way lease agreements are structured.

    Your spreadsheet is a neat little tool - we "regular" guys can probably still negotiate good lease deals without the detailed breakdown, but it sure is nice to have it available if needed. I will come looking for you if I need some help and I will refer folks to your website if they are looking for help.

    Thanks John

    Bill
    2016 ES350 Lux/Atomic Silver
    2017 Accord Sport CVT Mod Steel Metallic
  • delta737hdelta737h Member Posts: 626
    edited August 2013
    kyfdx,

    With all due respect, I have to disagree. A lease does not use straight-line amortization. It is amortized in the very same way that a loan is amortized. If you examine almost any lease contract, it will always reference the method of amortization. Many compute the lease balance (often called the adjusted lease balance) using the actuarial or constant yield method which equates to the interest rate implicit in the lease. It's not just used for early termination. It's actually used to compute the outstanding lease balance at any point in time.

    I'm currently leasing a Honda CR-V and the balance that appears on my monthly AHFS statement coincides, to the penny, with the balance in my lease amortization schedule. I've evaluated many lease contracts and I haven't come across one yet that doesn't apply the constant yield or actuarial rate against the unpaid lease balance to compute the monthly lease finance charge. It then deducts this charge from the base payment (payment without surcharges like tax) to determine the amount of the depreciation charge to be deducted from the previous lease balance to determine the current lease balance. This iterative process continues throughout the term of the lease so that at lease end, the lease balance is exactly equal to the residual value. The lease finance charge does decline every month while the lease depreciation charge rises similar to what happens with a loan. The depreciation is analogous to principle paid on a loan while the lease finance charge corresponds to the interest paid on a loan.

    The depreciation and rent charges disclosed in a lease contract simply reflect the total of these charges. When divided by the term in months, you get the monthly average as I'm sure you know. The money factor formula gives only the monthly average of these charges. It is not meant to imply or suggest that the monthly finance charge (i.e. rent charge) or monthly depreciation charge are constant amounts or remain fixed throughout the duration of the lease. This can be confusing as Bill suggested when he stated in the previous post...

    "I guess maybe that's what many of us believe because of the way lease agreements are structured."

    Regards,

    John
  • delta737hdelta737h Member Posts: 626
    Thank you, Bill. A lease is amortized just like a loan. Please see my post to kyfdx. There is no question that it can be very confusing based on itemized disclosures made in lease agreements.

    Best,

    John
  • kyfdxkyfdx Moderator Posts: 234,725
    Well.. gee... now, I'm going to have get my last lease paperwork out of the closet and look..

    Every lease I've paid off early, has had straight line amortization (as you say, down to the penny).. Granted, I haven't paid one off early since about 2001....

    I believe you, though...

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  • huskerfan5huskerfan5 Member Posts: 165
    Using the interest method of amortization is certainly more consistent with generally accepted accounting principles. The rules haven't changed in years so my guess was that your leases were with privately held companies that didn't issue financial statements.
  • delta737hdelta737h Member Posts: 626
    husker...

    You nailed it! Accounting for consumer retail leases falling under FRBB Reg. M should comply with GAAP & FASB criteria. Never seen a lease amortized any other way and I've been analyzing them since 1986. There may be institutions, though, that are exempt from complying with these standards but I'm not aware of any.

    John
  • cartime4844cartime4844 Member Posts: 11
    Are you sure about that? In the section titled "Dealer Financing of the Sales Tax" it says:

    In some instances, the lessee may want to finance the tax due at the time of entering into the lease. In this case, the lessee may ask the dealer/lessor to lend the lessee an amount equal to the tax due on the lease and to add the amount of that loan into the total to be paid under the lease. In effect, the lessor would lend the lessee an amount equal to the tax due and then build repayment of this loan into the lease payments due under the lease.

    If the dealer/lessor is willing to lend the amount of tax due to the lessee, it
    will have to re-compute the total amount of the monthly lease payments and thus the total amount due under the lease, in order to recover the principal amount of the loan, plus any interest on that principal. As a consequence of the dealer/lessor increasing the amount of the monthly lease payments to recover the money loaned (plus any interest), the dealer/lessor will also have to increase the amount of sales tax due on the increased lease payments. This will result in a higher tax due than if the lessee paid the tax in full at the time of entering into the lease.
  • delta737hdelta737h Member Posts: 626
    edited August 2013
    I don't mean to steal husker's thunder but I'm very sure. It doesn't matter whether taxes or widgets are financed in the lease, the lessor must still recover all amounts advanced or capitalized in the lease. In the case of taxes, the dealer simply writes a check to the State for the amount of tax and the fund provider reimburses the dealership accordingly when funding the lease. No need to re-compute lease payments. The total amount due under the lease includes taxes and any other items financed in the lease like dealer doc fees, acquisition fees, or negative equity on a traded vehicle.

    There are different methods used to compute sales tax used by States. You made the following statement...

    "As a consequence of the dealer/lessor increasing the amount of the monthly lease payments to recover the money loaned (plus any interest), the dealer/lessor will also have to increase the amount of sales tax due on the increased lease payments. This will result in a higher tax due than if the lessee paid the tax in full at the time of entering into the lease."

    This is simply not true if taxes are computed correctly. In fact, this issue is addressed at...

    https://autoleasegeek.com/1182/evidence-that-the-lease-ledger-doesn’t-al- - ways-balance-disclosure-reform-needed-in-the-vehicle-leasing-industry

    Hope this helps.

    John
  • cartime4844cartime4844 Member Posts: 11
    Hi John,

    The quote that you pulled out from my post wasn't my own statement; it was taken directly from the NY State Dept. of Taxing and Finance document here: http://www.tax.ny.gov/pdf/publications/sales/pub839.pdf (page 15)
  • delta737hdelta737h Member Posts: 626
    edited August 2013
    Hi cartime,

    Many thanks for clarifying and I apologize for the confusion. NY levies sales tax on the sum of the payments and so, a "taxable payment" is computed first, then, tax is computed on the sum of the taxable payments. Tax should never be levied on payments that include financed taxes as that would be computing tax on tax but NY has found a way to do it as you'll see in the following article...

    https://autoleasegeek.com/457/457

    I don't know whether this has ever been challenged in a NY tax court but, if it hasn't, it darn well should be.

    Hope this helps.

    John
  • huskerfan5huskerfan5 Member Posts: 165
    John, I noted this at your site "Adding tax, T, to the total payments, K, and then multiplying the sum by the sales tax rate, t, we have the formula…"

    Well, if you do this calculation, you are taxing tax, but it appears that is your opinion of the necessary formula. I disagree. Now that you came up with a new payment, is there more tax on that?

    I wouldn't bet my CPA license though I will never need to use it and it wouldn't surprise me if dealers calculate it your way, but I do not believe your interpretation is correct. Would have loved to talk to my college tax professor/tennis buddy whose accounting firm had most of the Long Island dealerships as clients but he passed away several years ago :(
  • delta737hdelta737h Member Posts: 626
    edited August 2013
    Hi Husker,

    You stated....

    "I noted this at your site "Adding tax, T, to the total payments, K, and then multiplying the sum by the sales tax rate, t, we have the formula…" ... Well, if you do this calculation, you are taxing tax, but it appears that is your opinion of the necessary formula. I disagree."

    Nope, not my opinion. Moreover, I would never consciously publish an article giving my opinion. I'm a math guy and was an Actuary for several years... so, you and I are kind of like cousins. There is no doubt that NY State computes tax on tax just by looking at the formula's derivation...

    Plugging in the assigned values, we get total payments, excluding tax, of K = $17,444.81. Adding tax, T, to the total payments, K, and then multiplying the sum by the sales tax rate, t, we have the formula…

    T = (K + T)t = Kt + Tt …. The term Tt reflects sales tax levied on sales tax

    Solving for T, we get

    T = K x t/(1-t)

    This formula uses the same method that the NY State's Dealer's Guide to Sales & Use Tax on Long Term Vehicle Leases does described on P.16. Additionally, I have constructed several leases in NY and the dealerships all computed tax the same way I did which is part of the reason why I never pursued the methodology on P.17. Furthermore, the method described on P.17 is not only wrong but it's total non-sense and is why I chose to exclude this in my article as I have no proof that this is actually being used in practice. Of course the lessee is going to pay interest on capitalized tax. I also vehemently disagree that NY is entitled to tax interest on tax. That's beyond despicable. Anyway you slice it, I'm betting that NY methodologies are unconstitutional. I'm also betting that its never been challenged. There you go, Husker, sue 'em for me!!!

    I also prove that tax on tax is being computed in NY at the very bottom of my article...

    The $1,699.01 includes the additional tax on tax which amounts to $150.79. Here’s why…

    We have the tax on the total payments of $17,444.81…

    0.08875 x 17,444.81 = 1548.22 PLUS tax on the total tax, which is…

    0.08875 x 1,699.01 = 150.79 (tax on tax)

    Adding, we get 1,699.01.

    Note, too, that (0.08875/(1-0.08875)) x 17,444.81 = 1,699.01 which complies with the P.16 methodology.

    The are two payment figures. There is the taxable payment figure whose only purpose is to compute sales tax. K reflects the sum of the taxable payments for which sales tax is levied. The second figure, which I didn't disclose in the article, is the actual lease payment that includes the sales tax as well as all other non-taxable items capitalized in the lease. This payment is not subject to sales tax. Only the taxable payment is subject to sales tax. The taxable payment is just an intermediate calculation.

    Frankly, I don;'t agree with any of this. I'm just presenting what NY actually does in terms of computing sales tax on lease vehicles. They do compute tax on tax (P.16) and, apparently, tax interest on the tax financed (P.17) which I haven't encountered with any NY dealerships that I've dealt with.

    Am I making any sense yet?

    John
  • huskerfan5huskerfan5 Member Posts: 165
    John, got it.
    You better believe that I'll challenge it if I move back to New York and lease some Ferrrari's.
    You're a better mathematician than I'm a CPA. Fortunately for everyone, I don't practice public accounting :)
  • delta737hdelta737h Member Posts: 626
    Hey Husker!

    Ah, you deserve much more credit than that! The bet here is that you're one darn good CPA. Thanks for questioning my calculations and keeping me on my toes!

    Regards,

    john
  • gmanusmcgmanusmc Member Posts: 699
    We can tell that both you guys are outstanding at what you do now and have done throughout your careers. And after reading your discussion of how NY handles tax on leases, I'm glad that here in CA, we only pay sales tax on each monthly payment's depreciation and finance charge. On the other hand, we have a whole host of other unpleasant issues to deal with out here.

    By the way John, a little off topic, but wanted to mention that I grew up not far from where you are, in Erie, PA.

    Bill
    2016 ES350 Lux/Atomic Silver
    2017 Accord Sport CVT Mod Steel Metallic
  • delta737hdelta737h Member Posts: 626
    edited August 2013
    Bill,

    Had a few friends that went to Gannon University and, my niece graduated from Mercyhurst. I fly small planes and have landed in Erie several times. It's a real nice town. My parents are from Lewistown, PA. Still have relatives in Latrobe, Hershey, York, & Philly. My aunt was a nun with the Sisters of Mercy in Pittsburgh. So, I have a good excuse to root for the Steelers & Pirates. Love PA!!!

    John
  • kyfdxkyfdx Moderator Posts: 234,725
    "So, I have a good excuse to root for the Steelers & Pirates. "

    Well.. you need a good excuse, that's for sure...

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  • delta737hdelta737h Member Posts: 626
    If you were a promising college FB and BB player, would you want to land in CleveLAND?

    A few years before Randy Lerner sold the Browns, fans were begging him to sell the team because of his apparent lack of interest and participation. His response was "Be careful what you wish for". And now, we have Jimmy Haslem, with all of his legal problems; his trusted caddy, Joe Banner; and Banner's comical sidekick, Mike Lomdardi. It seems bad luck follows this franchise everywhere since Modell fired Paul Brown in 1963. This year's first round draft pick, Barkevious "KeKe" Mingo, may never play a regular season game as a result of coughing up blood and being winded last week against Detroit. Reminds me of the Browns first round pick, Earnie Davis, in 1962. He died of cancer in May 1963. God help KeKe. He's a class act and a fine young man.

    John
  • brian125brian125 Member Posts: 5,244
    edited August 2013
    The Elmira express.

    I would of loved to see Davis and Brown in 1963 what a back field that would of been. Davis actually recruited Floyd little to come to SU he was a good player and really changed the Color barrier. Ernie set the bar took the abuse and paved the way..

    23 Telluride SX-P X-Line, 23 Camry XSE

  • delta737hdelta737h Member Posts: 626
    edited August 2013
    Brian

    I couldn't agree more with your assessment. Most of those players back then had class and played the game with dignity. I'd love to get my hands on some games film from the 50's, early 60's on DVD and play it next to my other TV broadcasting games played today so that my grandchildren can see how classy players were years ago compared to the classless crap playing today.. tattoos, bandannas, long hair, acting like juveniles... they look like street gangs; not a FB team. The NFL is way out of control which is why I don't watch it anymore. In fact, most of TV programming is garbage. Honestly, it appeals to those with low IQ's. The only thing I ever watch are movies from the 40's/50's, early 60's, and few later ones such as The Express, #42, Pearl Harbor, etc.. It's amazing how low this country has sank in the last 50 years. Truly incredible.

    John
  • gmanusmcgmanusmc Member Posts: 699
    Wow - what a small world - grew up about a mile from that Erie airport. And yes, my wife, kids and I are all big Steelers, Pirates, and Penguins fans. After 20 years of losing seasons, Pirates might even make the playoffs this year.

    I do have a brother and brother in law who are Browns fans though.

    Bill
    2016 ES350 Lux/Atomic Silver
    2017 Accord Sport CVT Mod Steel Metallic
  • brian125brian125 Member Posts: 5,244
    John,

    Sad but very true. Players back in the day played for there team and the love of the game. Money was not even a factor. Honor, respect, team, family. Today anything goes.

    Could one of you guys answer a poster in the accord prices forum about leasing.................. tks.

    23 Telluride SX-P X-Line, 23 Camry XSE

  • bbcirebbcire Member Posts: 44
    I would greatly appreciate if someone has current money factor and residuals for both the 2013 Ex-L and Ex-L V6 Accord.

    Thanks,

    EBB
  • raj50raj50 Member Posts: 3
    I am looking to lease for the first time and am not sure if I am being quoted fair prices. I have read many posts on here but can't tell exactly which are comparable to mine. I am looking at an Accord EX 2013 in northern ohio. I didn't get told all the numbers I am learning about on here but got a quote for $275 a month, 12k a year, 36 month with zero down other than first and fees and includes gap insurance. Is this good? Thanks so much! I know there are many more numbers that factor into this and I am calling dealers back now to get more info and will post it when I get it.
  • realtraderealtrade Member Posts: 4
    edited September 2013
    Hey I've been looking here for some time, and was wondering if someone wouldn't mind taking the time to breakdown a lease for me. My wife's lease is ending at the end of this month and would like to get ourselves a good deal to save some money, but don't know if it's possible.

    We currently lease a honda accord for her...I own my car. She enjoys switching it up every few years so that's why she wants to lease again. Currently we are paying 257.xx for a 2010 lx-automatic, we leased it back in October of 2010 with 0 due at signing. And would like to keep our payments at or below our current. We live in Florida, don't know if that info is pertinent. She is also graduating in December so I think she would qualify for the Graduate program as well. Please let us know if this is possible( with deatils if you can). Or a comparable car. We would really prefer not to have to come out of pocket( 0 due at signing) but if we have to we can. My credit score is high....so you can quote us on the best possible price. Thanks in advance, Peter
  • kyfdxkyfdx Moderator Posts: 234,725
    I'm sorry.. we don't have the current Honda lease numbers..

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  • gmanusmcgmanusmc Member Posts: 699
    Recommend you email the Internet Sales Departments of as many dealers in your shopping area as possible. State your criteria and request their best quotes. This will get the negotiation process going and you will be able to determine which dealers want to compete for your business. If, as you say, you have a high credit score, you should be able to qualify for Honda Finance's best lease factor - I think is currently around .00065. Have you had your current Honda appraised - it might have some equity depending on condition/miles.

    Bill G
    2016 ES350 Lux/Atomic Silver
    2017 Accord Sport CVT Mod Steel Metallic
  • realtraderealtrade Member Posts: 4
    I tried doing that....this is what I have so far....they are saying money factor is 0.00075 and a residual off the msrp of 23,XXX (dont remember) at 57%.

    they have quoted me on a 2013 honda lx cvt....at 21250 - 1000 (which is honda incentive and graduate program incentive).

    Two options the are giving me is 285 + tax=304.95(which is only 5.00 less than honda current offer of 290+tax=310.30 and 0 due at signing ) 35 months (first month free...same as current honda offer) ....

    or 265 + tax= 283.55, but 600 due at signing for tag transfer and first month.. ..then 35 monthly payments....or 600+9924.25/36= 292.34 over 36 months

    I would really like to be at 275-277 for 36 months(35 preferably) which is 20.00 more than I'm paying now (257.XX)....but 305 is just to much...its 40 a month, 480 a year, and 1440 over the 3 years...

    any ideas to get me closer to my price....I've dealt with this same dealership before for the first deal....
  • gmanusmcgmanusmc Member Posts: 699
    edited September 2013
    It doesn't appear they are quoting you a very good price. You should be able to easily get $1000 below invoice plus your stated incentives of 1000 for a total of $2000 below invoice. So your adjusted cap cost should be approx 20,395 (19,500 selling price + 595 lease initiation + 300 DMV fee) The DMV fee is the only one you cited - other additional fees will affect the calculation - it's difficult to provide you an accurate accounting without complete info. Subtracting a residual of approx 13,264 from 20,395 leaves 7131 depreciation divided by 36 = 198 per month. Multiplying 33,659 (13,264 + 20,395) by lease money factor of .00075 results in monthly lease cost of 25.24. Looks like your tax rate is around 7% so if you are in a state that only taxes your monthly payment, the monthly tax is around 15.61. Your monthly lease payment should be around 239 per month with only the first payment due at signing. I made some assumptions here, so actual selling price, missing fee info, and your location's tax policy will affect these numbers.

    If huskerfan is around, he'll probably weigh in.

    Bill
    2016 ES350 Lux/Atomic Silver
    2017 Accord Sport CVT Mod Steel Metallic
  • realtraderealtrade Member Posts: 4
    I'm sorry for not posting more detailed #s....

    what else can I provide you to get a more accurate quote.....and how do I negotiate down to 1000 below invoice...they don't seem to want to budge.....

    he finally came back to me today, and said 280.00 including tax but I owe first month...so 36 monthly payments

    I hope huskerfan can weigh in to....and thanks so much for taking the time to help me out with this
  • gmanusmcgmanusmc Member Posts: 699
    realtrade - glad to help. It sounds like they've shaved 8-900 off the deal so you are making progress - good work. What are the total fees over and above the DMV fees and what are they? For example, are they throwing in a dealer doc fee or admin fee in the mix - and how much? If you haven't already, request an itemized breakdown of the deal. That way we can perform an accurate accounting of how they are getting 280. I still think they should be able to do 240 incl tax.

    Bill
    2016 ES350 Lux/Atomic Silver
    2017 Accord Sport CVT Mod Steel Metallic
  • realtraderealtrade Member Posts: 4
    hey Bill...I'll try to extract the #s from them but...you know dealerships and their games....they are insisting that they are unable to give me a detailed quote in an email or over the phone...some nonsense about "we don't do that"...it took some teeth pulling to have them negotiate the price over the phone

    I'll try calling some other dealers, but the two that are centrally located in Miami are notorious for their BS....my father got a raw deal at one of them, that I had insisted we could have done better on...but he's the type that car dealers love....the type that just wants to be done with it...I am in no such hurry...and find a slight joy in trying to extract the best deal...almost giddy, my wife doesn't find this amusing...lol
  • abinsurabinsur Member Posts: 4
    Hi everyone i just learned about this forum today. Im glad i did as i'm in the middle of obtaining a lease for a Exl Honda Accord w/o navi. Am i getting a good deal? Never leased before so all insight/criticisms are welcome!

    Details are below:

    MSRP: 28785
    Selling price: 25,4000
    Acq. Fee: 595
    Ttl CAPPED fee: 675
    Adj CAP cost: 26,075

    Residual: 55% 15831.75
    Money factor: .00075
    DMV: 276
    Tax Sales: 9.0%
    Tax on docRt amnt: 9.0%. $7.2
    Ttl UPFRNT fee: 117.75
    Base monly rental: 315.96
    Monthly use tax: 28.44

    PAYMENT: 344.4. 36 mts
    Drive off 745.35
  • abinsurabinsur Member Posts: 4
    Hi Guys. I just poseted my query a few mins ago. I thought if it be ok to chime in tot his thread?

    Hi everyone i just learned about this forum today. Im glad i did as i'm in the middle of obtaining a lease for a Exl Honda Accord w/o navi. Am i getting a good deal? Never leased before so all insight/criticisms are welcome!

    Details are below:

    MSRP: 28785
    Selling price: 25,4000
    Acq. Fee: 595
    Ttl CAPPED fee: 675
    Adj CAP cost: 26,075

    Residual: 55% 15831.75
    Money factor: .00075
    DMV: 276
    Tax Sales: 9.0%
    Tax on docRt amnt: 9.0%. $7.2
    Ttl UPFRNT fee: 117.75
    Base monly rental: 315.96
    Monthly use tax: 28.44

    PAYMENT: 344.4. 36 mts
    Drive off 745.35
  • gmanusmcgmanusmc Member Posts: 699
    The calculations look correct with the stated numbers but I think they can do better on the adj cap cost. That 675 TTL capped fee is a dealer doc fee? Can be negotiated? Seems excessive. Check to see if there still is any flex cash available ($500). If so you might be able to reduce cap cost by 500-1000 which reduces payment 14-28.

    Bill G
    2016 ES350 Lux/Atomic Silver
    2017 Accord Sport CVT Mod Steel Metallic
  • abinsurabinsur Member Posts: 4
    Thanks Bill. That $600 looked tricky indeed. I did go to another dealer and presented a true car guarantee to them for the same trim line selling price at 24,900. They accepted it. Did not ding me for Ttl cap fee. Same residual and miney factor. Minthly came out to $328 for 36 mts. Unfortunately had to put in a drive off of $703 (1st month + dmv and all).
  • gmanusmcgmanusmc Member Posts: 699
    Congrats - looks like 16-1700 below invoice - are they still using flex cash?

    Enjoy that new accord - good job!

    Bill
    2016 ES350 Lux/Atomic Silver
    2017 Accord Sport CVT Mod Steel Metallic
  • robp2robp2 Member Posts: 4
    I am looking to do a one pay lease on an EXL V6 w/Nav. 36 months,10k miles per year. Can anyone help with the Residual, money factor and any other info I need to evaluate a lease. I live in Nassau Co. NY. MSRP is $32,070. Thanks
  • gmanusmcgmanusmc Member Posts: 699
    You should be able to get the residual/money factor info from a Honda dealer that provides good customer service (some play dumb). If you are also looking for the details of how a single payment works, you could try John Clark at autoleasegeek.com. He's an expert.

    Bill G
    2016 ES350 Lux/Atomic Silver
    2017 Accord Sport CVT Mod Steel Metallic
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