2013 and earlier-Honda Civic Lease Questions

rrich49132 · April 2008

Hi All I am in VA where taxes are 3% and am trying to figure out if it is better to lease than buy? At the present time I am looking at a 2008 LX 4 door with 5 speed that I can get our the door for about $16700 that is with tax, processing, and freight. The actual price is $15,400 + $462 tax + $695 freight + about $150 for taxes fees. I have figured out if I put $3000 down at 4.9% which is the rate I can get from my credit union my payments would be $257 a month for 60 months. With that being said how would a lease work out?

I did notice on the Honda website what I have below. This does not seem like a good deal but know it is Honda's special which is always negotiable. Do you all think it is possible leasing this car for 36 months 3 yrs at 12K a year for only $1000 down and under or right at $200 a month? I just need to figure out what kind of deal I can expect on a lease with a negotiated price of $15,400 and dont want to get ripped off or have a salesman tell me a bunch of stuff I don't know in terms of leasing as we have residual value, cap cost, money factor I have no clue about all this.

2008 Civic Sedan LX Featured Special Lease
$199.00 per month for 36 months. $1,999.00 total due at signing.
Includes down payment with no security deposit. Excludes taxes, titles and fees. For well-qualified buyers.
[Show Details] Show Details
Get a CertificateRequest a Quote
FEATURED SPECIAL LEASE: Closed-end lease for 2008 Civic Sedan LX Automatic Transmission (Model FA1658EW) for $199.00 per month for 36 months with a $1,205.00 capitalized cost reduction available to customers who qualify for the AHFC Super Preferred credit tier. Other rates/tiers are available under this offer. $1,999.00 total due at lease signing (includes first month's payment, AHFC upfront acquisition fee and capitalized cost reduction with no security deposit. Total net capitalized cost and base monthly payment does not include tax, license, title, registration, documentation fees, options, insurance and the like). Not all buyers may qualify.

Subject to limited availability. 3/04/2008 through 4/30/2008, to approved lessees by American Honda Finance Corp. Closed end lease for 2008 Civic Sedan LX Automatic Transmission vehicles (Model FA1658EW), for well qualified lessees. Not all lessees will qualify. Higher lease rates apply for lessees with lower credit ratings. MSRP $18,395.00 (includes destination) less the capitalized cost reduction resulting in actual net capitalized cost $16,648.67. Dealer contribution may vary and could affect actual lease payment. Taxes, license, title fees, options and insurance extra. Total monthly payments $7,164.00. Option to purchase at lease end $11,588.85. Lessee responsible for maintenance, excessive wear/tear and 15 cents/mi. over 12,000 miles/year for vehicles with MSRP less than $30,000, but for vehicles with MSRP of $30,000 or more, mileage cost is 20 cents/mi. over 12,000 miles/year. See dealer for complete details.

jdunnisher · April 2008

Are you looking at the auto or manual transmission? This will make a difference in the MSRP to use when calculating the lease figures. Also... Honda's typical Destination Charge is $635. I see that you listed $695 as the Freight charge. Did the dealer specify where the additonal $60 came from?

rrich49132 · April 2008

I am looking at a 5 speed and I have no idea where the $60 is coming from.

jdunnisher · April 2008

Both the auto and manual are 5-speed, but I will assume you mean manual based on the figures you provided. Here would be the lease numbers for 36 months / 12k miles per year on the purchase price you gave, as long as you qualify for AHFCs Super Preferred Credit Tier:

MSRP (incl. destination): $17,395
Purchase price (incl. destination): $16,035
AHFC Acquisition Fee: $595

Gross cap cost: $16,630
Cap reduction: $630
Net cap cost: $16,000
Dealer fees: $150

Residual: $10,958.85 (63%)
Money factor: .00207

Monthly payment (incl. tax): $201.71
Total due at signing: $1,000.61

The example above assumes cash down of $630+tax and paying the dealer fees ($150) and first payment up-front. I would actually recommend rolling in as many of the fees as you can on a lease (doc fee, acquisition, etc.).

Im not sure what your title/reg fees are in VA, but it looks like you should be able to get right in the neighborhood of the figures you were looking for. Hope this helps.

Jordan

cmgirgis · April 2008

Hi--never leased a car before. I was at the dealership today, looking at a Civic EX, purchase price would be $18579. I would want it at 15,000 miles for 36 months.

So I have a few questions:
1. I am in Chicago IL, and there is an 8% extra tax to lease versus purchase, which would make the leasing monthly payments higher. Are there any disadvantages to the Leadership program? I would likely purchase additional GAP coverage for $500 in case, which is mandatory with a lease, but recommended with the Leadership program.
2. How much should I put down? I can put down up to $3000, which would keep the monthly payments at around $250, but if I put $1500-$2000 the payments would be closer to $300/month. I know overall it's probably about the same, but I would rather keep the monthly payments lower if I can.
3. Is the Tire/Wheel extra insurance worth it? Anyone have any experience with this?
4. Also, what is the dealer invoice price for the EX civic? Is there a standard number (and if so, what is it?) or is it different for every dealership?

Thanks in advance!

eddie33081 · April 2008

Hey everyone. I am about to bite on this deal, just need last minute Advice.

Heres the Deal:

Civic LX Sedan Auto 12k/mi yr

MSRP: $18,395

Selling Price: $16,747

Money Factor: .00207

Residual: 63%

Out of Pocket: Total Drive Off: $800 ($309.85 goes towards cap cost reduction)

Monthly Payment: $210.48 plus tax

Should I go for it? Does this sound fair? Anything I can work on?

Thanks! Let me know as soon as you can. Car_Man comments also appreciated

dwynne · April 2008

IL in general and Chicago (I think) in particular and terrible places to lease a car - they tax the whole car just like you are buying it. Most of us only pay tax on the payment or perhaps up front on the depreciation. I would think twice about a lease in IL if I were you.

If you do lease, don't put any money into the lease - at most the first payment. If your car is totalled or stolen your insurance pays off the lease bank and you get nothing. So if you pay down $3k you can kiss it buh-bye. Keep the money in the bank and use it if you need to help make a payment, but don't pay it into the deal.

I don't like GAP coverage, but that is for you to decide. Check and see if that is not already covered in the lease contract (many captive lease banks include it free). Also check with your insurance company to see if that is provide through them on a lease. $500 for it is pretty much a rip off in any case. A low mile Civic in good shape should be worth the lease buy out just about any time during the lease. My insurance, for example, pays NADA clean retail money for a totalled car - and if you check that number you will see that is a fair price. Besides, if the GAP costs you $500 you can keep that in the bank just in case you DO have to pay off the car and your insurance will not pay enough to make the bank happy.

I would check your credit union and get a low finance rate (some or doing 4.5% to 4.9% now) and just finance the car - if I lived where taxes are applied to the whole car on a lease.

Invoice can be found here on Edmunds, KBB, carsdirect.com, and other online places. It is the same for every dealer, but some areas they do have local / regional "ad fees" added on to them. These are usually like $200 or something.

Dennis

schroeds16428 · April 2008

hi...last summer i was 19 and was looking to lease and 07 civic EX. I live in RI and went to one of the local dealerships (saccucci). I was very upfront with them and wanted to put 3k down and to have it in my own name bc i had credit. the guy gave me a quote of $225/month with 3k down (36 months 12k/yr for mileage) which included everything (tax, title etc. and in my own name) i thought that was a good deal but wanted to go look at another dealer. So i went to Herb Chambers in Seekonk (very nice dealership). The salesman was very upfront with me and my dad. At first he came back with a quote of $245 (everything the same as with saccucci) and then i told him the quote saccucci gave me. he said he had never lost a deal to them. He didnt ask me anything about the price from saccucci or anything. So he left and came back with a quote of $209/month with 3k down with everything included and to have it in my name. To me this was a really good deal. But it didnt work out bc my mom was against me leasing...so now we are into 2008 and both of my parents agreed that i can lease. I called the saleman back (april 08) and talked to him and the $209/month was still good. But this time i know my credit score which is a 720 (good?)...but the real question is, what should i expect to get for an 08 EX with navigation from Herbs. I got quoted $275/month from Sacucci and $255/month from Metro... (they were all 3k down everything included and in my name) But I'm definatley going to lease from Herbs bc they seem to be the best on the pricing. I was thinking maybe $245ish ( since it went from $245 to $209 with the EX)

thanks if anyone can help

gforce11 · April 2008

Whenever you negotiate using monthly payments, you lose.
Learn what to look for. Find the residual value, money factor and calculate your lease so you know what you are getting yourself into. If you don't know how to calculate your own lease, then I would probably recommend against leasing, because chances are, you don't know enough about leasing to be doing so.
With that said, here's a few comments regarding your situation. Your credit should net you tier 1 rates, so find out what kind of money factor they are quoting you. Second, navi will run you more than non navi, both in terms of cost and in terms of lower residual value. Its pretty common for cars with navi to have lower residual than cars without. You're better of getting a portable navi like gamin for 200-300 bucks and save some cash. Another thing, your monthly payment is way too high, I can get a Accord EX for less, and that using the National Incentives which generally is worse than what you can negotiate.
Please, familiarize yourself with leasing so you know what kind of crap dealers are trying to pull on you. You can use Edmund's Leasing Tips HERE or you can head over to my leasing blog HERE where I explain, in my own words, how to calculate a lease. Edmunds version is more comprehensive, mine is more like a quick reference guide. Either way you choose, make sure you ask the right questions and bring a calculator.
Good Luck!

dwynne · April 2008

I agree 100% with your other advice - don't negotiate lease deals based on payments, that is for suckers.

Pick what you want and get price quotes from several dealers - just as if you are going to buy the car. Make sure the quotes include the car, destination, and any dealer doc or prep fees. Once you have a nice price (around invoice?) then worry about the lease.

It takes BETTER credit to lease than it does to buy a car, so you may not be able to get the top tier lease money factor based on your age and lack (I assume) of car credit history. Most lease banks use what is called an "auto enhanced" credit score that gives more weight to car credit than to other things. So if you have a 750 and no car credit, your auto enhance score could be in the 600's if you have no prior auto credit history. Conversely, if your score was in the 600's and you have a bunch of paid in full and never late car leases and loans, then your score could end up top-tier. So once you have your price and start on the lease terms, you may find you have to have a co-signer in order to get the best rate.

I would also never put that much money into a lease. If your car is lost or totalled the insurance will pay off the lease bank and you will lose all your money.

You should also check insurance rates before you do anything else as well. EVERYONE should check rates before they shop, no matter their age. You don't want to sign the paperwork on a car you can afford only to find you can't afford the card and the insurance.

Dennis

9900rpm · May 2008

Hi Car Man. I'm looking into leasing a 2008 Honda Civic Si sedan with navigation. 3 year, 12k mile/year. I was quoted $1286 out of pocket, including1st month's payment, monthly payments at $320. I was told the money factor is .00207, with 63% residual. Is this right? They told me the MSRP is $23695 including destination, and selling price is $22402.

Another dealership wanted a bit more. $1200 out of pocket, which includes the 1st month's payment, with monthly payments at $328 or so, and they told me the money factor is .00190, residual at 60%, but they are selling me the same car (MSRP $23695) for $23k even.

I'm a little lost as far as pricing. Can you tell me the May 2008 money factor for the 4 door 2008 Civic Si w/navigation, and also the residual. Also, ay idea what would be considered a "good" deal on this car? I'm looking to lay out as little money as possible, and pay roughly $300/month.

Thanks in advance. Looking to lease this Saturday (5/3).

schroeds16428 · May 2008

i dont know why the email was sent to me but ill try to answer your question. If u havent already done so, get the invoice and the MSRP and then get a price from that. After that you can try to agree on a lease payment with them. I was quoted a lease for an EX navi for $230/month with 3k down and everything included and this was before telling them the invoice and msrp. i think thts a pretty good lease for a 21k car

9900rpm · May 2008

Hi, me again. Just got off the phone with my salesman, and he said they changed things for May just a little bit. Not sure if this is true or not. MSRP on the car is $23695, including destination. This is a 2008 Civic Si 4 door w/navigation. I was told that invoice price on the car, including destination, is $21864. Selling price is $21923.40. Residual on the car is 58% (last month he said it was 63%), for dollar amount of $13743. He said the money factor went up from last month. He did not have the figure in front of him, but I know last month was .00207. I will be registering the car in Philadelphia, PA, which has a 10% tax on leases. This is the price they are giving me. $1286 out of pocket, which includes acquisition fees, doc fees, MV fees and 1st month's payment. Monthly payments will be $315 even. This is all on paper. Do I swing for this deal or not?

Thanks in advance.

schroeds16428 · May 2008

hey, it sounds like a good deal. did u get any other quotes and did u get the TMV from edmunds? i take it that u don't want to put alot down bc if u put more down the taxes will be included (maybe its just an RI thing). i just looked up the TMV and its $22685 so @ 21923 your under paying by $762. Thats a pretty good deal. So your getting almost $1800 off from the msrp. I'd take it. also if you didnt know, go to http://www.handa-accessories.com/ for all of the accessories (pretty good discounts and its a honda dealer)

goodluck

hopefully ill have my EX navi by june

schroeds16428 · May 2008

i was wondering. When the dealer says 'cash due @ signing' (for leasing) can u write them a check or does it have to be cash? and can u take the car home the same day when u lease?

kyfdx · May 2008

Yeah... they'll take a check..

sparkland · May 2008

Just wondering why you are insistent upon leasing when at the end of three years you have "lost" your initial deposit and have to refinance $12000 at around 7-8% for another 3 or 4 years?

If you finance the entire amount of the car for 60 months at 2.9% or use your cap reduction amount you were using for the lease as a down payment, I would imagine your payment would be at or under $400 a month and you would own the car.

Just a thought. I absolutely do not know your circumstances, but my wife and I were considering leasing and it just did not make sense economically since we will keep our car for over 6 years and can get low finance rates with Honda.

Hope all works out for you with the dealer.

Brad :shades:

dwynne · May 2008

They will even take credit cards, if the amount is not too high

.

Dennis

dwynne · May 2008

It depends on if your goal is to own the car and keep in long term or not. If you are just going to be trading it in 3 years or so for something new, then a lease may be a smart way to do it. If not and cheap financing is available, then buying it up front would be preferable. In cases where cheap leases are available and cheap financing is not, you can often lease then buy and come out fine.

Edmunds is still showing Civic 2.9% financing, but the Honda web page is not. I tried several ZIP codes on the Honda promotions page and it never came up. Could be expired?

Dennis

kerb · May 2008

Hi Carman, I would like to know what the current residual and money factors are for the above referenced vehicle as it relates to a 36/12K, 36/15K. Additionally, will a security deposit buy down my rate, if so, to what extent? Finally, what is AHFC's acquisition fee. Many Thanks.

CarMan@Edmunds · May 2008

Hi batta. Honda Finance's current buy rate lease money factor for a 36 month lease of a 2008 Honda Civic Sedan is .00190 for consumers who qualify for its "Super Preferred" credit tier and pay a security deposit at lease signing.

Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum

CarMan@Edmunds · May 2008

Here's the information that you're looking for, kerb. Honda Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2008 Honda Civic Sedan EX without leather or navigation with 15,000 miles per year are .00190 and 60%, respectively for consumers who qualify for its "Super Preferred" credit tier and pay a security deposit at lease signing. The money factor for an otherwise identical lease with only 12,000 miles per year would be the same, but its residual value would be 2% higher. If you choose not to pay a security deposit, your car's money factor will be .00010 higher. Honda Finance charges a $595 acquisition fee on every vehicle that it leases.

Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum

kerb · May 2008

HI CARMAN, thanks for your response. My apologies for not advising that I was requesting figures for an '08 Civic EX (w/o leather or Navi) Coupe. Could you kindly provide same for a 36/12 and 36/15? Also, are there any incentives/rebates to consumer and/or marketing support to the dealer? Thx. a million!

CarMan@Edmunds · May 2008

You're welcome, kerb. Honda Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2008 Honda Civic Coupe EX without leather or navigation with 15,000 miles per year are .00165 and 58%, respectively for consumers who qualify for its "Super Preferred" credit tier and pay a security deposit at lease signing. The money factor for an otherwise identical lease with only 12,000 miles per year would be the same, but its residual value would be 2% higher.

I don't believe that Honda is currently providing any cash incentives on the '08 Civic.

Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum

oldbob · May 2008

2008 Civic EX manual trans. Based on a sales price of $17606 in NY, what is your current estimate for a lease, rolling sales tax and acquisition fee into payments. I believe NY sales tax would be 8.25%
Thanks for any input.

djbeatsg · May 2008

Hi I have the following quote so far:

ex-l w/nav coupe

msrp: $23,095
invoice: $21,500
price:$20,800 - includes destination/handling.

Great deal I hope, I'm going to work out the lease today but it is hard to get the residual value for 24 months on this model. It's the highest end civic ex, and one person here said their RV was 73% on 24 months. That matches the forum on leasecompare.com, but some generic calculators still calculate at 63% resid which does not make sense because some people got 36 month leases with 63% residual value and I highly doubt a car's depreciation stops in the 3rd year?

Any idea what it should be? And what is the MF on ex right now with 680 fico.

What else should I look for? They say all I'll pay will be lic, doc and ca tire fees.

hondamattnj · May 2008

Civic EX-L Nav Coupe 24 month Residual
12,000 miles - 69%
15,000 miles - 68%

A 680 FICO falls under the AHFC "Preferred" category.
- .00238 MF

djbeatsg · May 2008

Now the problem is figuring out if i can get rid of junk fees like the $595 added to the net cap cost (maybe acquisition?!) and security deposit ($400?!)

I have 680 and a dealer started by telling me .0038 or something ridiculous (thats like over 9.5%) and he was busy with someone else closing a deal so we decided we'll wait and shop another dealer. Any ideas what is negotiable in those areas?

gforce11 · May 2008

acq fee isn't really a junk fee since the bank gets it. security deposit lowers your MF. Usually necessary if your credit score isn't high enough to get "super preferred" tier. If your credit is 680, then you are probably tier 2, which is why you need a security deposit. May be able to negotiate the doc fee tho.
At .0038, I would write off that dealership completely. They are taking advantage of you. Civic EX Coupe is around .00165, I can't imagine the sedans being any more than that.

jdunnisher · May 2008

Civic Sedans are currently at .00190 for tier 1 through AHFC.

shinng · May 2008

Correct me if I'm wrong, but if the published rates are generally for tier 1 credit, how does one factor in tier 2, tier 3, etc for the money factor? Is there a rule of "add + XX%" for each tier above tier 1? I do not have tier 1 or tier 2 credit and want to make sure that when I get quotes from dealers, I am not getting hosed on the money factor just because I do not have tier 1. It's easy to compare tier 1 money factor rates as it's posted everywhere on the boards, but it seems impossible to find out the money factors for tier 2,3, etc.

Any help is appreciated.
Thanks.

dwynne · May 2008

Unfortunately, there is no "rule of thumb" to know what the rate is once you move past the top tier. Most Honda dealers do not mark up the lease rates, so the odds are good you will get the rate that Honda offers based on your score. You can also compare deals from more than one Honda dealer and see if they offer you the same rate, then you know it is likely the proper one.

Dennis

hondamattnj · May 2008

Once one Honda dealer submits your application for approval/tier, all the other dealers will get the same call. AHFC won't approve you at Standard at ABC Honda and then allow XYZ Honda to lease you the same car at Preferred.

dwynne · May 2008

That may be true, but the question was "how do I know if they are giving me the buy rate for the tier I qualify for". Since I have never seen anything but top tier rates listed anywhere, the only way that I know of to make sure the dealer is not marking up the rate is to get quotes from more than one dealer. If the lessee gets various answers for the MF then we have to assume that at least one dealer is marking up the MF for extra profit.

Dennis

dad23 · May 2008

Could I please ge the current money factor and residuals for 36 months/12K miles on an LX and EX sedan in Colorado? Thanks in advance.

sparkland · May 2008

Certainly a great number of people looking at leasing. Is it just because of the lower monthly payment? Probably yes.

Just remember put down as little as possible on a lease-that is money that is gone. Never to be seen again.

:shades:

dgavrysh · May 2008

Hi guys,

I want to lease 2008 Civic Si Coupe M/T w/o Navigation.

36 months/12000 miles/year and I can put $3000 down.

What should my monthly payment be and what is the realistic price for it?

Potamkin Honda gave me $270/month @ $3000 down for a vehicle WITH Navigation system with Dealer price around $23,700.

Doesn't look fair to me... Any advice for NYC area in particular?

KBB invoice $20,057.09
KBB MSRP $21,745.00
KBB value $21,310.00

Thank you!

oldbob · May 2008

Try an internet quote from Nardy in Smithtown LI for comparison. I used them for my deal on a 2008 Civic EX 5MT sign and drive 36 mo 12000mi at $251.66. They were the best of 4 quotes I obtained.

schroeds16428 · May 2008

i guess i depends on where you live. i got quoted $209/month for an EX 5auto for 36 months. how much did u put down?

oldbob · June 2008

$0.00 down. Cap cost $17606. EX sedan.

srnl · June 2008

Looking for the money factor and residual for the Honda Civic EX Sedan (no Nav) Automatic for a 24 month/12k lease.

Any help??
Thanks

schroeds16428 · June 2008

i was looking on there website and clicked on 'estimate payments' and priced a 4dr EX with 3k down and got a special for @ $179/month. the regular lease is $ 225/month. Herb chambers of seekonk said they would do it for 3k including EVERYTHING even though it says $3379 due a signing. does this seem like a good deal? i think it is. (i priced the MSRP box as the TMV on edmunds also)

PS i also got $210/month for the EX navi. is that a good deal too.

im hoping to purchase on the 16th of june

CarMan@Edmunds · June 2008

Here you go, dad23. Honda Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2008 Honda Civic Sedan EX 4-cylinder without leather or navigation with 12,000 miles per year are .00190 and 62%, respectively. The numbers for an otherwise identical lease of an '08 Civic LX 4-cylinder are exactly the same.

Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum

CarMan@Edmunds · June 2008

Greetings srnl. Honda Finance's current buy rate lease money factor and residual value for a 24 month lease of a 2008 Honda Civic EX Sedan without navigation with 12,000 miles per year are .00190 and 72%, respectively.

Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum

CarMan@Edmunds · June 2008

Hi oldbob. That's a pretty aggressive selling price for a Civic. Considering the fact that it was the number one selling vehicle in the U.S. last month, I personally wouldn't sell one for under invoice if I was a dealer, but you never know I suppose. According to my calculations, if you were to lease a 2008 Honda Civic Sedan EX 4-cylinder that has an MSRP of $19,345 and a selling price of $17,606 through Honda Finance right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment would be around $240 with the acquisition fee rolled in, assuming that you qualify for its "Super Preferred" credit tier and pay a security deposit at lease signing.

Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum

oldbob · June 2008

Did the deal two weeks ago. 12000 mi/yr 36 mo. Civic EX 5MT sedan nothing down exc $60 doc and license.. With NY sales tax payments are $251.66/mo. I am happy with the price and happy with the car. A lot of fun to drive and very cool.

chalkfarmer · June 2008

I am trying to lease an EX-L without NAV with no money down, on a 36-month lease.
I was quoted $400 a month for the lease at one of the local dealers. It seems pretty high. Anyone have any other # from dealers in and around Austin, Texas? I am willing to travel as far as Dallas and Houston.

Thanks
Dima.

aaraji · June 2008

Hello Carman,

Can you please provide Lease details (MF, Residual - 12 and 15k miles)?

I live in Maryland and I am interested in prices for 2 or 4 dr and Ex or LX.

Sorry for covering all the bases on you.

Thanks very much,

aaraji

jasens · June 2008

Oh gods of leasing, i am looking for a civic EX coupe, for a term of 24 or 36 months, with 15k miles per year, with 1500 out of pocket. I was wondering what the money factors and residual values would be on the car. I have been getting lease figures all over the map for the car, and I would like to know what the true cost of the car should be. Credit score is around 780. Thanks a bunch for any help you can give me.

gforce11 · June 2008

36mo/12k - 60% resid and .00165 mf
Lease Calculator in case you don't have one.

2013 and earlier-Honda Civic Lease Questions

Comments

Helpful Tools

Most popular vehicles