Honda Pilot Lease Questions

CarMan@Edmunds · August 2005

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

Car_man
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zeek11 · September 2005

I currently lease an Acura TL w. Navi through Honda and I have two months left on the lease. I simply want to turn my Acura in to a Honda dealer and drive away in a Pilot EXL w/o Navi. So far, the best quote is 1K down and $350 a month, including tax. BUT they are telling me that I am still responsible for the final two payments of $350 @ month on the Acura. Can I do better? Please assist.

CarMan@Edmunds · September 2005

Hi zeek11. You would probably be better off waiting until the scheduled end of your TL lease to get a new Pilot. You are going to end up paying for the final two payments on your TL one way or another if you get out of it right now. Either you are going to have to pay them out of your own pocket or the dealer that you are getting your new Pilot from is going to pay them, hampering your ability to get the best possible deal on your replacement vehicle.

You never mentioned the selling price or MSRP of the truck 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 trucks 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 work up a sample lease payment on the Pilot that you are interested in for you if you let me know what these numbers are.

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nball46 · September 2005

Hi everyone,

Right now I'm shopping for a honda pilot 2005 and i got a few quotes from some dealerships. Here it is:

invoice: $26944
msrp: $30702

what do you think? should i try to wheel and deal the salesman to lower it more? this is my first time buying a car by myself. i gone through the internet sale division of a honda dealership nearby. please give me some input.

Norm

katinfl · September 2005

Car_man,

Looking to lease a Pilot EX-L for 36 months with 12,000 miles per year. MSRP is $32,870. Invoice is $29,723. Hoping to get dealer down to CarsDirect price of $28,173. Can you give me the money factor, residual value and an estimated payment for this vehicle?

Thanks.

someguy1 · September 2005

I am in the market for a new SUV/Wagon.

I am hoping to get the sept residuals and money factors of 2005 Pilot's 3 years 15K a year

Thanks KA

CarMan@Edmunds · September 2005

Hi Norm. Given the fact that Honda is providing $1,500 dealer cash on the 2005 Pilot in September, you should be able to do better than dealer invoice on one.

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CarMan@Edmunds · September 2005

Hello katinfl. Honda is no longer providing lease support on the 2005 Pilot. It replaced the special money factors that it had on it with $1,500 dealer cash. That means if you were to lease one through AHFC right now you would have to use its standard lease money factors. Its buy rate standard lease money factor for 36 month leases is currently .00255. AHFC's 3 year, 12,000 miles per residual value for the 2005 Pilot EX-L is currently 57%. Using these numbers, an MSRP of $32,870 and a selling price of $28,173, your zero down, pre-tax monthly payment should be around $382.

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CarMan@Edmunds · September 2005

Hey someguy1. If you were to lease a 2005 Honda Pilot EX without navigation through AHFC right now for 3 years with 15,000 miles per, its buy rate lease money factor and residual value should be .00255 and 58%, respectively.

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vault2 · September 2005

Hi Car_man:

Can you provide me with the lease rates for 06 Honda Pilot?

36mo/12k/15k and 60mo/12k/15k

06 Pilot EX-L 2WD with NAV $32, 720 (Includes Tags and Tax)

06 Pilot EL-L 4WD with NAV $33,956 (Includes Tags and Tax)

Thanks!

CarMan@Edmunds · September 2005

Hello vault2. Honda is not currently providing any sort of lease support on the 2006 Pilot. As a result, if you were to lease one through Honda Finance you would have to use its standard lease program. Its base standard lease money factor for 36 month leases is currently .00255. 60 months is way to long to lease anything for. I don't even know if Honda Finance offers 60 months leases. If it does, I have not seen any information them. Honda Finance's current 36 month, 15,000 miles per year residual value for the 2006 Pilot EX-L without the navigation or entertainment systems is 59%. Its residual for an otherwise identical lease with 12,000 miles per year would be 2% higher.

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sinbad2 · September 2005

Hi,
I have a 36 month/12k miles Lease offer for 2006 Pilot EX 2WD for $399/month + tax with zero down. What do you think?
Thanks.

CarMan@Edmunds · September 2005

HI sinbad2. 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 of this deal and work up a sample lease payment on this car for you using Honda Finance's actual lease program if you let me know what these numbers are.

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investwisely · September 2005

I m looking at a lease for the 2006 EX-L Pilot also. My goal was $500 over invoice
so on a $31845MSRP + $550 desitination, I was looking at paying $30,000 including the bank fee. I am assuming the residual for a 12k/36 month is 61 or 62%, is that correct. The remaining dilemma is the money factor The current one I believe ia 6.125% (.0255). I was looking at something in the neighborhhod or 4-5%.
I am waiting for this. I understand lease programs are updated every 15 days. The problem is too many 05's still left.

bw1024 · September 2005

Car_Man -

I am trying to negotiate a good deal on a 2005 Pilot EX-L. The current offer on the table from the dealer is $28,200 Purchase Price ($32,320 MSRP). Terms of the Lease are as follows:
36 month/12K miles
57% Residual
5.88% Finance Rate (Money Factor .00245)
= $385 Monthly payment (according to Lease Guide.com)
A few questions:
1) Is this a competitive deal? The dealer appears unwilling to budge on the Residual and money factor. I am trying to negotiate a better purchase price.
2) Do I need to factor in sales tax?
3) Down Payment: I would prefer not to put money down (unless it decreases monthly payment). What is standard practice and what does the money down go towards?
4) Am I better off waiting to negotiate a deal on a 2006?

Thanks!

fotboat · September 2005

Please help; Can the $1500 marketing help/incentive? provided by Honda, only be applied to purchase of new vehicle and not the cap cost on a lease. Lookiing at a 05-EX (no L) and get qoutes of $24693 (no dest), but dealer states that is only good on purchase not lease because a Honda rule. Any help here

sinbad2 · September 2005

Car_man

You have asked some excellent questions. I will get the MSRP and selling price. But in the mean time I have a question:

-How do you find Honda Finance's current Residual and the Money Factor values for 06 Pilots?

I mean to ask you if they are published by Honda Finance somewhere, or its somethings that only the dealers know?

Thanks.

sinbad2 · September 2005

Car_Man -

OK, here is some info:

2006 Pilot 2WD EX
MSRP: $29,545
INVOICE: $26,585
Selling price: (not known)
Desitination Charge: $550
Money Factor: .00265
Residual: 62%
Term: 12k/36 month

Offer: $399/month + tax

What do you think?

Thanks.

CarMan@Edmunds · October 2005

Hello investwisely. Honda Finance's current residual value for a 36 month, 12,000 miles per year lease of a 2006 Pilot EX-L without navigation is currently 61%. If you have not leased this truck yet, you are in luck because Honda introduced a new special lease money factor of .00105 on it this month, which is much better than the standard factor of .00255 that was available on it in September. Banks' lease programs are not revised every 15 days. Honda Finance's current program is scheduled to run through October 31st.

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CarMan@Edmunds · October 2005

Hi bw1024. Honda is currently providing $1,500 dealer cash on the 2005 Pilot. Make sure to take this cash into account when negotiating your truck's selling price. If I had to make an educated guess, I would say that you are paying right around $800 over invoice for this truck once the dealer cash is taken into account. That is a reasonable price, but you may want to stop by the following discussion to see how much other community members have paid for similar vehicles lately: "Honda Pilot: Prices Paid & Buying Experience".

As long as you are comfortable with this truck's selling price, you are in good shape because the money factor that you were quoted is in line with Honda Finance's current lease program for this model (its buy rate money factor for the '05 Pilot is currently around .00255 for consumers who pay a security deposit and qualify for its top credit tier). This is why the dealer that you are working with cannot lower your vehicle's money factor. Dealers never have the authority to alter banks' residual values. If you are in a state that charges sales tax on the sale of new vehicles then you will either have to pay it at lease signing or have it added to your truck's lease payment. Consumers can and always should lease new vehicles without making any sort of capitalized cost reduction aka down payment.

Honda just introduced an attractive special lease program on the 2006 Pilot for the month of October. this program's money factors are much lower than the ones that are currently available on the '05 Pilot. If you can negotiate an attractive enough selling price on an equivalent '06 Pilot you actually may be able to get a similar lease payment to an '05 model.

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CarMan@Edmunds · October 2005

Greetings fotboat. The $1,500 dealer cash that Honda is currently providing on the 2005 Pilot can be used on leases through Honda Finance. If there was some sort of special lease money factor available on this truck you might not be able to combine the dealer cash with it, but since Honda is not currently providing any sort of lease support on '05 Pilots any longer you can definitely take advantage of the dealer cash. The dealer that you are speaking with is lying to you.

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CarMan@Edmunds · October 2005

Hey sinbad2. I am able to find out what manufacturers' lease programs are like because I work in the industry and know a lot of people. Unfortunately, I am not aware of any source that provides information on banks' lease programs to the general public. I should be able to answer any questions that you have.

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CarMan@Edmunds · October 2005

If you haven't leased your Pilot yet, sinbad2, you are in luck because Honda just introduced a new special lease program on it for the month of October. Instead of the .00265 money factor that was available on leases of it with a waived security deposit last month, its October money factor for the '06 Pilot is only .00105 with the payment of a deposit and .00115 without. I would be happy to use this new program to calculate a lease payment on the truck that you are considering for you, however in order for me to do so I still need you to provide me with its selling price.

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investwisely · October 2005

Thanks Car_Man. I was ready to forego leasing and buy it and finance at 4.95% thru my credit union. This is much better. With this rate and what I project as my buying price I should be at $363/month including tax.

investwisely · October 2005

Car_man, what is residual on 15k/3yr on a EX_L 59%?

sinbad2 · October 2005

Hi Car_Man,

I Leased the 06 Pilot 2WD EX yesterday under the new special lease plan.

MSRP: 30095 (includes destination)
Base Selling price: 27674
Down: $ 924 (includes Accusation fee + other fees, 195 cash, etc. but No deposit)
Term: 12k/36m
Monthly payments: $317

What do you think?

investwisely · October 2005

Car_man, is this program national or regional and for what regions? One dealer I called in Florida has not received this program yet (this is from a finance person, not sales)

investwisely · October 2005

Correction, Looks like the program has propogated thru to the dealers. I have verified that .00115 is good on the Pilot EX-L 06. Thanks for your help. Now the only thing left is to negotiate the price.

fotboat · October 2005

Thanks Car-man, basically determined that dealer was full of it, leased an EXL from another dealer last Friday for $27,200 (inc dest). Basically told dealer to take 1500 + the 3% hold back off the invoice price. The dealer had 33 2005 Pilots left on 9/30, while others had 2 or 5 left in my area.

khseattle · October 2005

Hi Car_Man,

I'm looking for help in leasing an 06 Pilot EXL AWD. MSRP is $33,595 which includes Destination. Sale price is $31,030. Looking at 42 month lease, based on their current lease offer. Down Payment is undecided.

With the October money factor you indicated for the '06 Pilot, .00105, what would be my monthly payments for a 1k and 2k down payment? Sales tax rate is 9.1% in Washington.

Thank you in advance!

investwisely · October 2005

Just leased an 06; Pilot EX-L 2 WD yesterday for 3 yrs/12k for $369/month including tax. This was basically getting the car a few hundred below invoice, $599 dealer fee, and $550 Honda bank fee added to the cap. cost. Money factor was .00115, no deposit required. Residual 61% My total out of pocket was $600 which includes first month, tags, misc. I almost hit my target of $350 which most sales people laughed at me 3 weeks ago. I absolutely love the vehicle

cagorm · October 2005

Hi Car_man,

Will you please post the October numbers for a 2005 Pilot EX-L for a 3 year lease?

Thanks.

CarMan@Edmunds · October 2005

No problem investwisely. Let me know if you have any other questions.

Car_man
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CarMan@Edmunds · October 2005

I should have scrolled ahead, because you do, investwisely,

. Yes, Honda finance's current residual value for a 3 year, 15,000 miles per lease of a 2006 Pilot EX-L is indeed currently 59%.

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CarMan@Edmunds · October 2005

Hey sinbad2. The selling price that you were given on this truck looks good to me. I just ran a lease payment on it using Honda Finance's current program and came up with a 36 month, 12,000 miles per year zero down, pre-tax payment of $288 with the waiver of its security deposit.

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CarMan@Edmunds · October 2005

Wow, investwisely, I must be fast if I knew about this special lease even before some Honda dealers even did :shades: .

Car_man
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CarMan@Edmunds · October 2005

You're very welcome fotboat. Enjoy your new truck!

Car_man
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CarMan@Edmunds · October 2005

Let's estimate what the lease payment should be like for the truck that you are interested in using the various scenarios that you mentioned, khseattle. According to my calculations, if you were to lease a 2006 Honda Pilot EXL AWD without the navigation or entertainment systems with an MSRP of $33,595 and a selling price of $31,030 (which looks very reasonable) through Honda Finance right now for 42 months with 12,000 miles per year, its zero down, pre-tax monthly payment should be around $336. With a $1,000 cap cost reduction the payment for an otherwise identical lease would drop to around $311 and with $2,000 it would drop to around $286.

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CarMan@Edmunds · October 2005

Congratulations on your new truck, investwisely. Thanks for taking the time to stop back and let us all know how everything turned out. Enjoy!

Car_man
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CarMan@Edmunds · October 2005

Here you go cagorm. Honda is no longer providing lease support on the 2005 Pilot. As a result, if you were to lease one through Honda Finance right now you would have to use its standard lease program. Its current buy rate standard lease money factor for 36 month leases is .00255 for consumers who qualify for its top credit tier and pay a security deposit. Its 3 year, 15,000 miles per residual value for an '05 Pilot EX-L without navigation or entertainment is currently 55%.

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bobw3 · October 2005

So after 3 years you'll have paid about $14K...correct? Why didn't you just buy the vehicle and sell it after 3 years? I don't think that the Pilot would depreciate $14K in only three years with low mileage.

kyfdx · October 2005

You have to consider the financing cost, as well... plus sales taxes...

I think his total cost is around $13,500... That includes depreciation, finance charges and sales tax... If you buy the car and finance the whole amount... you'll pay around $3200 in interest in the first three years of a 60 month loan... Add another $2000 for sales tax.... That is $5200 of costs on a purchase, that are included in his $13,500 cost of the lease...

So, there only needs to be $8300 in depreciation for him to break even... Which sounds about right for a Honda Pilot...

Really... that is the way a lease is supposed to work.. If the residual percentage approximates the real-world depreciation, and the money factor is equivalent to market financing rates, it should all work out evenly...

Leases become overly advantageous when the money factors are subsidized by the manufacturer, or the residuals are artificially high..

regards,
kyfdx
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investwisely · October 2005

The reason I leased was that the best financing I could get was 4.95% for 4 years. I would be paying interested on the entire amount pf the purchase if I did not put money down. Honda Finance money factor was equivalent of 2.76% and I am only financing the MSRP times the residual or about $18k. If Iwent with an 05 I would have bought but with the 06 I am about $200/month lower on payments with a lease compared to a finance.

bobw3 · October 2005

Thanks, got it. I'm used to seeing 0% or 1-2% financing. Plus I guess as long as you don't put too many miles on the car it's okay to lease. I already put 18K miles on my car since Feb05, so leases would never work for me. I don't know how people only put 12K on their cars, especially SUVs. I guess they don't take many road trips and just use them for commuting. So there are no charges when you turn them in. And I'm used to keeping cars after I'm the title holder. I'm not interested in car payments the rest of my life. I assume there are no charges when you turn them in if you're under the miles?

bigedfrombk · October 2005

Hi fotboat,

where is this dealer? the lowest price i got for this vehicle is $27,495. may i ask why you leased and not purchased. any info you can provide will be greatly appreciated. thanks

bigedfrombk · October 2005

Hey Car_man,

I need your help. I don't know much about leasing a vehicle. I'm considering to purchased 2005 honda pilot EXL and the best price i received so far is $27,495.
I live in New York and the tax rate is 8.25. i planned to put $1000 down and finance the rest over 6 yrs at a rate of 5.9%. I'll probably use the vehicle less than 15000 miles a year. With the promo that honda is offering this month on the lease of 2006 honda pilot EXL awd, what advice can you give me to make the right decision. I'm aware additional research is required. Let me know where to start. Thanks

czer · October 2005

Need some help Car_man !
Went to the local Honda dealer in Erie, PA today and here is what I got. If you could tell please tell me if this is a good deal or are there areas that I can negotiate to get a better deal. I'm new at leases so here it goes: I have a trade - '03 Ody EX-L w/ RES excellent condition. They are giving me $18,500. I owe $21,000. So I'm $2,500 in the hole. I think I could get a little more for the trade but not much. I'm working the deal on an '06 White EX-L - MSRP $33,595.
Selling Price is $30,280.
Add Cash Deficiency of $2500 plus Inception fees of $642.26 = $3,142.26
Assignment fee = $595.00
Total Cap Cost = $34,017.26

Residual Value (55%) = $18,477.25
at 12000 miles/year - mileage adj. + 2% = 671.90
Adjusted Residual Value = $19,149.15

Money Factor = .001150

42 month lease

$415.14 + 9% (tax??) = $452.51

Any help in making the monthly payment lower would be greatly appreciated. Or is this a good deal. The salesman was no hassle and good to work with.
Thanks

jay223 · October 2005

HEY CAR MAN, I AM VERY INTERESTED IN THE 06 PILOT EX-L AWD. I WAS HOPING YOU COULD GIVE ME SOME NUMBERS TO GO BACK TO THE DEALER WITH USING 36 MONTHS, 15K MILES A YEAR, 8.25% TAX HERE IN NY, I THINK THE RESIDUAL IS 59%, AND TRY USING A SELLING PRICE OF 30800. I HAVE RECENTLY TALKED TO A LOCAL DEALER USING 05 PRICES, BUT THE MONEY FACTOR WAS TOO HIGH. THANKS JAY

flyerfan · October 2005

Car man-
I'm going to lease an 06 Pilot AWD w/ Nav. and was wondering what the residual % is on a 36 mnth 12k lease. If I add an RES will that change my residual %? I was also wondering what other fees I may have to pay. I saw someone paid $599 for a bank fee and $550 for a dealer fee. Whats a dealer fee? It looks like I should also add about $200 for doc. fees. So far my best quote is $32546 w/ destination, so I think that a pretty good start. Any info would be helpful. Thanks in advance

lmueller · October 2005

Car Man,
I am getting frustrated with our local dealers. Have an internet quote for an '06 2WD Pilot EX-L w/RES for $31,390 (MSRP $33,995 w/dest.). When I ask for lease quotes on the vehicle, they are coming up anywhere from $460-$580/month. I even mentioned the October lease special you wrote about, but it seems like they won't apply it to this car. Credit is not an issue (perfect), although they wouldn't know that yet because they haven't asked. All has been done on the phone or e-mail so far. There is no trade-in to worry about. It just seems to me that these numbers don't add up. Tax in TX is 6.25%, I think. I was asking for a quote for 36 months, 12K/year. Any suggestions?
Thanks in advance!

vault2 · October 2005

czer,

Did you get your vehicle appraised at CARMAX? You might get more than what the dealer is offering you.

Honda Pilot Lease Questions

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