2013 and earlier-Honda Civic Lease Questions

CarMan@Edmunds · August 2005

Hi everyone. Please use the following discussion to post any questions that you have about leasing a Honda Civic. Thanks.

Car_man
Host
Smart Shopper / Prices Paid Forums

ruag35oner · September 2005

Hi Car_Man, do you have the current Sept 2005 money factor and residual numbers from Honda yet? If not, what were the August numbers?

CarMan@Edmunds · September 2005

Hi ruag35oner. I have seen Honda's new September lease program for the 2005 Civic. Unfortunately this month Honda pulled the plug on its special lease program for the Civic. As a result, if you were to lease one through Honda Finance right now, you would have to use its standard lease money factors. If you let me know exactly what Civic model you want, how long you want to lease it for, and how many miles per year you need to be able to drive it, I should be able to give you an idea of what its new program is like.

Car_man
Host
Smart Shopper / Prices Paid Forums

ruag35oner · September 2005

Car_Man - Looking for a 2005 Civic VP Auto 12,000mi/yr 36mo.

Thanks.

ajpbf7 · September 2005

Hi Carman,

Any info on the 06's yet. Looking for 06 Civic EX Coupe with 5speed MF and residuals please. I prefer 36 or 39 months with 12K per yr. Thanks for your help.

CarMan@Edmunds · September 2005

Here's the information that you are looking for, ruag35oner. If you were to lease a 2005 Honda Civic sedan VP through Honda Finance right now for 36 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00255 and 53%, respectively. Don't forget to take the dealer cash that is available on this car into account when negotiating your lease.

Car_man
Host
Smart Shopper / Prices Paid Forums

CarMan@Edmunds · September 2005

Hi ajpbf7. Honda just published a lease program on the '06 Civic coupe a week or so ago. As one might imagine with a new model like this, Honda is not currently providing any sort of lease support on it. If you were to lease a 2006 Honda Civic EX Coupe without navigation through Honda Finance right now for 36 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00255 and 61%, respectively. The numbers for an otherwise identical 39 month lease should be .00255 and 57%.

Car_man
Host
Smart Shopper / Prices Paid Forums

jnuzzi · September 2005

Could you give me the residual values and MFs for a 36 and/or 39 mo 15k/yr lease on a 06 Civic LX Coupe?

Thanks!

CarMan@Edmunds · September 2005

Here you go jnuzzi. If you were to lease an all new 2006 Honda Civic LX Coupe through Honda Finance right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00255 and 59%, respectively. The numbers for an otherwise identical 39 month lease should be .00255 and 55%.

Car_man
Host
Smart Shopper / Prices Paid Forums

jnuzzi · September 2005

Thanks Car_man! :shades:

robrwa123 · September 2005

Hello car_man,

Do you have any #'s on expected buy rate lease money factor and residual value for the upcoming 06 Hybrid, w/NAV? I'm looking at 36 or 39 months, for 12K miles/year. I've put $ down, but haven't decided on purchase vs. lease yet (it's for business purposes, so for tax reasons I'm leaning towards leasing to take tax advantage of it as an expense). They expect to have them in October.

Also, are there any advantages/disadvantages to leasing a hybrid? I don't hear it discussed that much. Thanks!

collegegrad · September 2005

hey,
after doing as much homework as only possible, i went to a dealer yesterday to get a lease on a 2005 civic ex. we had negotiated price down to 16880 from 18425 (miami, florida)
i wanted a lease since i have limited budget at the moment (-out of college and on entry level job) and i qualified for the graduate program lease.
offer was approximately something like this.
42 mon.
1500 down
15K /yr
309/mon
now this is after negotiating for 2 hours since he brought me out ridiculous quotes. i really want the car, last one around here, and i didn't want to give up.
my creditscore is 658.
i was giving him 3000 down!!! for a lease!!! and his first offer was for 12k/yr for 289 for 48 months!
i dont know what is up.
after 4 hours at the dealer, i left. i called later, he said that honda bank chainged their mind about approving me for a lease....
well, i offered 16000 to purchase the car and i am putting 3000 down, interest rate i am approved for is 11.14.
can you give me any advice or your thoughts i would SINCERELY appreciate it. this is my first time buying a car and talking to dealers...
thankful in advance,
a.d.

crandleman · September 2005

Walk away from that Lease deal. Head over to your local credit union and join up and see if you qualify for a good rate (you will most likely get around 7% or 8%with your credit score). If not, try to get a parent or someone with good credit to co-sign for you. If you can buy it for $16,000 and then subtract your $3,000 downpayment you will have to finance around $14,000 for the car and tax,title and lic. You can get a 60 month loan on $14,000 for about ~$280.00 per month on this car. If you need to you could stretch it out to 72 months (although I wouldn't).

DO NOT LEASE. Buy this car. Go to the Credit Union. Also, take your time and don't ever get in a hurry to buy.

collegegrad · September 2005

thank you for your advice.
i did walk out the deal and am going to another dealer. i just could not figure out why the lease was so expensive. here are the details from the honda printout.
he was telling me that i was getting these prices cuz i was on the graduate program lease, which is the least preferred.
he kept pushing me for 42 and 48 mon lease to lower my payments.
when i asked him about the interest rate, he said, there is no interest rate, it is a lease....hahaha!

payment details:
term 36mon
base payement 315.35
total payment 334.27
purchase option 10,133.75
msrp 18425 (although we agreed on price of 16880) he said that he needed to enter this in the computer to receive right residual value -perhaps true.
est miles/yr 12000
excess milage 0.15

money due at inception:
1st month 334.27
depozit 0
aqz fee 0
fees and title 293.50 (inc. lemon, tire, battery and tag fees)
upfront taxes 81.44
cap reduction 1290
out of pocket 2000

well, i can tell you that he was pretty pissed after dealing with me for 2.5 hours. i have three master degrees including an mba and he was trying to explain to me how a lease works and that i need to go to 48 months. i think that i confused him totally when i started talking about depreciation procentage rate of the value of the car in the fourth year and that i was not interested in leasing for four years since the fourth year payments would not go into equity on the car.

crandleman · September 2005

First of all, not to offend you, but your post above shows that you do not understand leasing at all.

Good thing you walked away because he was trying to take you to the cleaners. You should, under no circumstances lease a car. Not that leasing is not a good option, but for the fact that you do not understand anything about leasing and you WILL get taken to the cleaners.

Leasing takes a few weeks of research and time to really get a good understanding of how it actually works. I would say this, if you cannot sit down and be able to calculate a lease payment from scratch with a pad of paper, pen and a calculator using the money factor and residual, then I wouldn't do it.

Let me tell you this as well, you could get a 2006 Camry LE w/ Auto, etc. on a lease for about $50 less per month than what that guy was quoting you for a 2005 Honda Civic. That is with no money down!!

Don't ever put money down on a lease because if you get in a wreck and total the car or it gets stolen, you lose all that money you put down.

Just walk in with financing from your local bank or credit union in hand (don't tell the sales person that you have it yet) and negotiate the best price for the car. Then, unless they can beat the interest rate, just BUY the car. Much, much easier and quicker. Don't let them add any fees except for maybe a small Doc fee (around $50-$100). You will not get screwed if you do this.

The guy that was trying to lease you that car was going to make THOUSANDS off of the deal.

One more thing, go buy an Amorization book. It will help you out tremendously when it comes to the monthly payment when you are looking at the different interest rates.

crandleman · September 2005

Oh my, I was just doing the actual math on the above deal and the monthly portion going towards the car was $131.83. That salesperson was charging you around $200 in interest, fees and tax, title, lic. per month on that car. :surprise:

Now do people see why car dealers have such a bad rep.

robrwa123 · September 2005

I wanted to chime in as well about this lease issue. I agree that buying is better than leasing in your circumstance (unless there is an advertised lease special sponsored by the manufacturer; even then the dealer could try and tweek more out of you). HOWEVER, the best use of your money is to buy a used car for $10-12K, at a favorable rate, while you slowly re-build your credit rating.

crandleman · September 2005

I would not agree to buy a used car. He is young, just starting out and the last thing he would need is for something to go wrong with the car and have no warranty to cover it.

I think the best thing would be to try and pick up a new 2005 Civic Value Package. It would better fit your budget. You can pick up one up for less than $13k right now. If needed, just have someone put in aftermarket power locks and cruise for a few hundread bucks. That way you have a brand new, reliable car under full warranty for around $14k total (Price of car, tax, title, lic). Forget the ex and go for the VP.

robrwa123 · September 2005

OK, I'd go along w/a price like that if buying new. Used cars are a crap shoot, unless certified, which means you pay more anyway. But, often, if you get the right deal and select the right make/model, it will always be more cost effective. I know, those are big "if's"!

Oh, Car Man, who started this forum, where are you? I still haven't seen a response to my earlier post requesting leasing info for a new HCH w/NAV ---

CarMan@Edmunds · October 2005

You're very welcome jnuzzi.

Car_man
Host
Smart Shopper / Prices Paid Forums

CarMan@Edmunds · October 2005

Hi robrwa123. Honda has not published a lease program for the 2006 Civic Hybrid yet. I suspect that when it does it will not provide any sort of lease money factor support on it. If this is the case and you were to lease one through Honda Finance, you would have to use its standard lease money factors. For the length leases that you are interested in, 36 and 39 months, its current buy rate standard lease money factor is .00255.

Other than the fact that Honda will probably not provide any sort of lease support on the Civic Hybrid, the only disadvantage to leasing one that I can think of is that many banks' residual values for hybrid models are not as attractive as their residuals for equivalent non-hybrid models. This is because hybrids so not have a long history to prove their future reliability like vehicles with conventional gas or diesel motors do. Fortunately, Honda Finance's residual values for the 2005 Civic Hybrid are very reasonable.

Car_man
Host
Smart Shopper / Prices Paid Forums

CarMan@Edmunds · October 2005

Greetings collegegrad. Let me begin by saying that it definitely is not in your best interest to make a $3,000 down payment on a leased vehicle. I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your Civic would be exactly the same, regardless of whether you had put $3,000 down, or had made absolutely no down payment at all. Consumers can and should lease any vehicle that they are interested in without making any sort of capitalized cost reduction. Since you are a recent college grad, I am sure that money is fairly tight anyhow and that you have much better uses for that three grand.

11% is a very high interest rate, especially for a lease, even for a recent college graduate without much credit history. If that is the lowest rate that Honda Finance is willing to lease this car to you for, you may want to consider financing it instead. You may be able to get a more reasonable interest rate by financing through a local bank or credit union. See if you can get pre-approved to finance the Civic that you want prior to going back to this dealer. Your $3,000 down payment will definitely improve your chances of being approved to finance this car by a bank. Doing so will give you an idea of what sort of interest rate you will be approved at and will motivate the dealer that you are working with to try and beat it.

Car_man
Host
Smart Shopper / Prices Paid Forums

robrwa123 · October 2005

Thanks Car_man - now I'll just wait for the announcements on the all new HCH, which are reportedly coming out today on pricing. Have you heard that, too? Will the pricing announcements include RV's? When will the cars hit the lots?

CarMan@Edmunds · October 2005

You're welcome robrwa123. Most manufacturers' captive finance companies do not publish lease programs for new models the day that their pricing is announced. I am not sure when the 2006 Honda HCH is expected to begin to arrive at dealers, but I don't expect to see a lease program for it until it does.

Car_man
Host
Smart Shopper / Prices Paid Forums

crg4 · October 2005

Car_man,

Can I correctly assume that the money factor/residual value would also be .00255/59% for a:

'06 Civic LX or EX sedan
36 months
12k miles

if leased some time during the next 4-6 weeks? Also, is this lease info readily available from another source or just from your crystal ball? I hate to bug people for answers that I could otherwise find myself w/ a couple of key strokes or a phone call.

Thanks in advance!

resteve1 · October 2005

I just got a quote from a local dealer on a 06' Civic LX Couple Auto, Taffeta White

Cap Cost: 16,926.50 - I feel this is pretty good - won't argue here.
Lease Term: 36 Months @ 12k Miles/Year
Residual: 61%
Money Factor: .00345 or 8.28%
Monthly Payment: $325-$330
Down Payment: None

Concerns:
- Money Factor - Shouldn't this be significantly lower? I have pretty good (not great) credit, and was approved for an EX (more expensive).

- Monthly Payment - Based off figures he quoted, shouldn't my payment be around $277/month? If so, what could he be adding in there?

Please someone help me understand his reasoning. I already sent him a reply via email, but still no response.

- Steve -

resteve1 · October 2005

I got quoted a 61% residual today. Might want to look into that. I'm not sure on the mentioned money factor though.

- Steve -

imtheish · October 2005

Hey there Car_man -

Was wondering if you could let me know the stats on a EX Coupe AND Sedan, both with Nav, 15k, and 24 and/or 36 months?

I've been getting some WILD stuff all over the place...

A finance manager at Honda gave me a fig of .00265 money factor and 56% depreciation for a coupe with nav, 36 months...

ALG always will have a much better depreciation rate I'm assuming?

I'm just doing all of the homework/research I can...

THANKS a BUNCH! :shades:

imtheish · October 2005

sorry -

i posted this in another forum, absentmindedly not realizing there was a thread specifically for civic leasing...

my post about a price quote i received

stalnaker · October 2005

Car_Man,

Are residuals available for the 2006 Civic Hybrid yet? I am interested in calculating a lease payment on one, assuming the 0.00255 money factor and a 36/12 lease.

Thanks!

indiana97 · October 2005

This is a horrible deal. You could BUY the car for the same amount in monthly payment that he quoted you.

CarMan@Edmunds · October 2005

Hey crg4. The money factor for 36 month, 15,000 miles per year leases of all 2006 Civic models would be the same, but the residual values for the '06 Civic EX Sedan and '06 Civic LX Sedan are 61% and 60%, respectively. This lease program is scheduled to run through October 31st. I am not aware of any source that provides this sort of information to the general public.

Car_man
Host
Smart Shopper / Prices Paid Forums

CarMan@Edmunds · October 2005

You are absolutely correct, Steve. The lease money factor that you were quoted for this car is way to high. the worst possible buy rate lease money factor for a 36 month lease through Honda Finance is currently only .00255 if your credit is in good shape and you pay a security deposit. What is your credit like? If it is good, there is a good chance that the dealer that you are working with is marking up your car's money factor to add additional back-end profit to your deal.

I would be happy to calculate a lease payment on this car to compare with the one that you were quoted, however in order for me to do so I need you to provide me with its full MSRP (with the destination charge added in).

Car_man
Host
Smart Shopper / Prices Paid Forums

CarMan@Edmunds · October 2005

Hey imtheish. Here's the info that you are looking for. If you were to lease a 2006 Honda Civic EX Coupe with navigation through Honda Finance right now for 24 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00370 and 63%, respectively. The numbers for an otherwise identical 36 month lease would be a more reasonable .00255 and 57%. The money factors for an otherwise identical lease of an '05 Civic EX Sedan with navigation would be the same, but its residual values would be 2% higher. Both of the aforementioned money factors assume that you have good credit and pay a security deposit. If you opt to have your car's security deposit waived, your money factor will be slightly higher.

Car_man
Host
Smart Shopper / Prices Paid Forums

CarMan@Edmunds · October 2005

Hi stalnaker. I haven't seen any residual values for the 2006 Honda Civic Hybrid yet. Your assumption about what its money factor will be when its lease program is published is a safe one through.

Car_man
Host
Smart Shopper / Prices Paid Forums

jmax1 · October 2005

Car_Man,
My 03 Accord EX lease will be up in Jan. 06, so I have to make a decide what to do. My dealer says I have equity at this point, but states he doesn't know why and probably won't if I lease agian? I have been looking at the 06 Civic Coupe EX to lease or buy. My 03 is in excellant condition not one ding, 13,000 miles, red with tinted windows. I have been fearful on what to do, I don't have anyone around here who knows.I have excellant credit. Please help.
Civic Lease:
Price-21,463
Trade-17,675
payoff-14,400
36 mo, 00265, 291.00 monthly, 11,962 residual

wiphillyfan · October 2005

$500 total out of pocket, 4 year lease on the 2006 Civic LX Sedan. I have 2005 Civic Coupe and I paid $15,700 2 months ago. I owe $15,300 and the dealer would pay it off.

Is this a good deal? Thanks in advance for your thoughts/advice.

bonnevillegreen · October 2005

Car Man or anyone who recently leased or got quoted on a lease,

Here's the best I could do:

$0.00 down
$650 at inception (TTL, first month payment, etc. etc)

$260.00/month
42 month, 12k/yr.

Did I get a good deal? I live in Ohio and don't know the money factor or RV, and the MSRP is $16,885 (not positive about acquisition or dealer or whatever fee), but I'd appreciate it if someone could tell me what they thought, just for peace of mind (or not). This is my first lease and I didn't realize how stressful the experience could be!

Thanks,

xxcivicxx

CarMan@Edmunds · October 2005

Hi jmax1. You are in good shape if your Honda Civic is indeed worth more than it would cost you to purchase it at this point. This gives you a number of options. You can purchase your Civic at the end of your lease and trade it in on a new vehicle or sell it on your own and probably make a profit on the transaction. You also can just walk away from your lease like most consumers normally would at the end of their term.

As far as your new Honda Civic lease goes, you really need to know the exact selling price of the car that you want to lease. This is an important number for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing the price of the car that you want to lease you don't know how good a price you are getting it for. The second reason is that one needs the selling price of a vehicle that they want to lease is that it is necessary to calculate its lease payment. I would be more than happy to give you my opinion of this deal if you let me know what this car's selling price is.

Car_man
Host
Smart Shopper / Prices Paid Forums

CarMan@Edmunds · October 2005

Greetings wiphillyfan. I'm impressed if you can get out of a 2005 Civic that you purchased two months ago and only lose $400 on the transaction. Why are you trading it in so soon? Did you just decide that you can't live without the redesigned 2006 Civic? You never mentioned the selling price or MSRP of the car that you are interested in leasing. These are important numbers for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing this car's selling price in relation to its MSRP you don't know how much of a discount you are getting on it. The second reason is that one needs the selling price and MSRP, including the destination charge, of a vehicle to calculate its lease payment. I would be more than happy to give you my opinion on this deal if you let me know what these numbers are.

Car_man
Host
Smart Shopper / Prices Paid Forums

CarMan@Edmunds · October 2005

Hello xxcivicxx. 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 never mentioned the selling price of the car that you are interested in leasing. This is an important number for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing the price of the car that you want to lease you don't know how good a price you are getting it for. The second reason is that one needs the selling price of a vehicle that they want to lease is that it is necessary to calculate its lease payment. I would be more than happy to give you my opinion on this deal if you let me know what this car's selling price is.

Car_man
Host
Smart Shopper / Prices Paid Forums

cmmarsch · October 2005

I signed the buyer's order (not a lease contract) on a Honda Civic sedan EX (no nav) yesterday. have not yet put any money down.

I am worried after reading this discussion that I am not doing the right thing. This is my first ever purchase/loan. The car mom and dad gave me for graduation is about to kick the bucket.

Anyways, this is the deal I cut (which incidentally was like pulling teeth to get from 3 different dealerships which is why I thought I was doing okay)

Basically, my trade in worth 1750 plus 1900 cash with taxes and fees included.

The lease is 12K miles/yr, 42 months and I will pay $204/month plus taxes.

SO ....

A) am i getting screwed on this deal? also I have no idea what money factors and such things are ...

what should I expect to pay?
C) can I still get out of the deal if need be?

PS. Also factoring into the situation is the lack of Civics at dealerships around here. Plus I was hoping for a certain color and interior which are even more rare.

HELP THIS CLUELESS LEASER !!

cmmarsch · October 2005

i don't know much but I know that's better than i could do.

i was only able to do

my trade in worth 1750, 1900 cash, taxes/fees included

42 month, 12K miles/yr for $204/month.

I wish i had yours !!

i only signed my buyer's order so far and not the leasing contract. trying to figure out if I can reconfigure the deal before signing the leasing contract.

any advice for me ?

CarMan@Edmunds · October 2005

Happy Halloween cmmarsch. The good news is that as long as you have not physically taken delivery of your Civic you should be able to get out of this deal if you want to. The two most important numbers to focus on when leasing are your vehicle's selling price and the lease money factor that is being used to calculate your vehicle's monthly payment. The selling prices of leased vehicles can be negotiated, just as if you were paying cash or financing. You wouldn't pay cash for a car without knowing the price would you

? Not knowing the selling price of a leased vehicle is sort of the same thing. Negotiate as low a selling price as possible on the Civic that you want and then have the dealer that you are working with calculate your lease payment using Honda Finance's buy rate lease money factor. Money factors are used to calculate the interest portion of lease payments. Dealers are often allowed to mark-up banks' base lease money factors to add additional hidden profit to deals. Right now, Honda's buy rate lease money factor for a 42 month lease of a Honda Civic is .00235 if you pay a security deposit and qualify for its top credit tier. So the bottom line here is you need to find out exactly what selling price you are being charged for this car and what money factor is being used to calculate its lease payment. If you are uncomfortable with either of these figures, you should still be able to get out of this deal.

Car_man
Host
Smart Shopper / Prices Paid Forums

cmmarsch · October 2005

What do you think would be a good selling price for a Civic sedan EX AT ? do you have any idea what I should shoot for ? do I use the same numbers that people who are purchasing their cars are getting them for ?

cmmarsch · October 2005

Oh, I have another question. I was thinking that it seems like I can't bargain too much on the price since they are selling them as soon as they hit the lot. Why would they agree to move on the price if they are selling them faster than they can get them in ?

cmmarsch · October 2005

Car Man, I found out the selling price on the 06 civic EX sedan AT was 19,478 and the figures were calculated for a residual of 59%. Thoughts ??

cmmarsch · November 2005

hi. talked to another dealership today. they told me when i went in to sign the paperwork (i only signed the buyer's order so far) that i would not be able to sign the leasing contract for the same amount as we originally agreed upon (in october) since the residual went from 59 (in october) to 56% for november. my first dealer told me our original dealer was still good and wouldn't be renegged on. thoughts? i do feel a bit like he doesn't know what he is talking about due to a few mistakes he's made along the way.

also i got a selling price of 19,4 something and a money factor of 00245 with a residual of 59% as stated above. any thoughts on that? i have seen numberas as high as 61% and 00235 as well as below my selling price.

I just have no faith and trust in car salesmen given what i have been through in the process so far and it sucks !!!

beefybri · November 2005

I live in the NYC area and I just leased a 2006 Civic LX automatic for 32 months. I put $2000 down, plus the $595 bank fee, and my monthly payment is $218.00. They said that their 32 month program was the best deal? If I wanted to lease it for 36 months, the payment would have been closer to $260 a month. Any comments or suggestions?

crandleman · November 2005

Don't ever put any money down on a lease!!!!

beefybri · November 2005

y is that?

2013 and earlier-Honda Civic Lease Questions

Comments

Helpful Tools

Most popular vehicles