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Honda Ridgeline Lease Questions



  • Looks to me like they're buying a higher cap cost with a low money factor (.00055 or 1.3%). Let us know if you are successful in negotiating a lower cap cost with this low money factor.
  • postalpostal Posts: 3
    Hello Car man My Honda salesman is flipping out at this estimate. I am in the New York area and I want the same deal as kayakdog. Can you tell me the formula to use to get this result. First time leasing. Thanks.

    Larry B
  • Hey kayakdog. Honda Finance's October buy rate lease money factor and residual value for a 36 month, 12,000 miles per year lease of a 2006 Ridgeline RTS are .00042 and 61%, respectively. This informaiton is definitely right and your dealer will know it when confronted with it. Demand for the Ridgeline is soft enough that you should be able to get the dealer that you are working with to lease you one using this money factor, assuming that you qualify for Honda Finance's top credit tier and pay a security deposit.

    It's really not in your best interest to use the equity from your trade as a down payment on this lease. 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 Ridgeline would be exactly the same, regardless of whether you had put several thousand dollars down, or had made absolutely no down payment at all. If you really want the convenience that trading in your vehicle will provide, have the dealer that you are working with cut you a check for it rather than using the proceeds as a cap cost reduction.

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  • That's a good question, fsufan. There aren't any lease programs out there right now that completely blow me away, but there are still some models that have good programs available on them. Since nothing really stands out, tell me what sort of vehicle or vehicles you need and I will give you a short list of vehicles in that category that have good lease programs.

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  • Greetings siny. Both the selling price that you were quoted for this truck and the money factor that was used to calculate its lease payment look attractive to me. Let's calculate a lease payment on it using Honda Finance's actual lease program to compare with the payment that you were quoted. According to my calculations, if you were to lease a 2006 Honda Ridgeline RTL with a moonroof with an MSRP of $33,190 and a selling price of $28,875 through Honda Finance right now for 36 months with 12,000 miles per year (I haven't seen Honda Finance's residual values for a lease with only 10,000 miles per), its zero down, pre-tax monthly payment should be around $279. As you can see, the payment that I came up with is lower than the one that you were quoted. One possible explanation would be if you were having your truck's security deposit waived and/or its acquisition fee added into the capitalized cost.

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  • Hi racheysdad. Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

    Honda's lease program on the 2006 Ridgeline is very attractive right now. Like most manufacturers' advertised lease payments, there appears to be a little room left for negotiation with this deal. The '06 Ridgeline RT lease that Honda is advertising right now assumes just over a $600 dealer discount on a truck that has over a $2,700 spread between its full MSRP and dealer invoice prices. I wouldn't be surprised if you were able to negotiate at least another $1,000 off of this truck's selling price. Doing so would lower its monthly lease payment. For more feedback on Ridgeline pricing, stop by the following discussion: "Honda Ridgeline SUT: Prices Paid & Buying Experience".

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  • Hi Larry. The formula that is used to calculate vehicles' lease payments is outlined in the following article: Calculate Your Own Lease Payment. Use it, along with the MSRP and selling price of the truck and Honda Finance's 2006 Ridgeline RTS 36 month, 12,000 miles per year money factor of .00042 and residual value of 61% to calculate your truck's lease payment.

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  • fsufanfsufan Posts: 35
    Thanks for the reply Car_Man. I'm really flexible about the type of vehicle, but if I had to stick to one, it would probably be a 4 door sedan midsize-entry level luxury type car. I'm not pressed into buying immediately, so if something really jumps out as being a good deal, please post it. Also, what are your thoughts on the lease deals upcoming in November. I know its all just conjecture at this point, but all the recent news points to October as being one of the worst sales months in recent memory. Is this going to have an impact?
  • sinysiny Posts: 4
    Thanks Car_Man for your input. I called the dealership and requested that they
    examine the lease price that they quoted me. I told them that i felt it was on the high side. I was told that there was very little play with the leases and that the price that i was quoted was their "No Haggle Price" . I believe that they won't get back to me by this weekend to test my interest in the Ridgeline. I feel that eventually they will counter with a lower offer giving into the pressure of a slow market for trucks, competitive discounts from other truck manufacturers, and dealership end of month sales goals. I'll keep the board up to date on my results.
    Thanks for your help.
  • tawneycattawneycat Posts: 114
    OK, I have leased before when manufacturers offer subsized ones. 96 Senta for 129 a month and no down, no 1st payment, no fees for 24 months. Hated the car but for the price....
    anyhow, Ridgeline appears to be great bargain IF you can pay close to invoice on cost.
    In fact the lease is so cheap I would lease and then buy the truck at the end if I really liked it.
    Someone inform me on this. Can the dealer simply sell close to invoice (cap cost) and still make all the fees and holdback like a new sale? The prebuilt honda leases only offer a $1000 discount.... It seems to me dealers make more on leases then straight out purchase. Bottom line if someone can neg cap cost to invoice then payment drops nicely to around $250 for the base RT at 36 months with only about $600 up front. They advertise a $279 x 39 months with $1500 down which appears good until you know the dealer is making about $2000 on the deal.
    Someone posted some honda leases where the dealer was discounting RT to the $24,200 level for purchase and close to invoice on lease --since no factory to dealer cash on lease I assume.
  • postalpostal Posts: 3
    Hello Car man I am still negotiating a deal for this car . Edmunds indicates there is a 1000 dollar to dealer cash rebate. Does this reduce the invoice price dollar for dollar? That brings the RTS down to 26061 cost. That is where I am starting my negotiating from. The Honda lease rated you gave me seems staightforward: 61% residual and a money factor rate of .00042. Is there a honda Rep that I can complain to if I feel the dealer is not willing to negotiate honestly. Just some one who would like to know why the Ridgeline isn't selling well. Yhanks for all your help

    Larry B
  • RT ($28,215) plus wheels dealer says worth $500
    25,850 purchase price with alloys added. 12kyr 41x269. Residual $16,700.

    This was some screwy deal where dealer had 2 sets of wheels from Jokers who put on 20 inch tires so hence the alloys.

    My expericence is that the RT just is too sparse. The RTS adds security system, 8 way power, much better sound, preferred sound controls on steering wheel, different fabric, body colored mirrors, handles, auto climate, Pricey but worth it.

    RTS (MSRP $30.600)
    27,600 purchase price, 15k year 35x319. Residual $18,000 (60%)

    Both zero down, 1st payment in 30 days.
    2.51% super preferred. Not sure what that takes.

    My experience is that the $1000 incentive is for purchase only not lease/balloon since those deals are subsized it appears.

  • swoodsswoods Posts: 2
    Good Day,
    I am new to the forum and still without power or phone after Hurricane Wilma and I need help; here is the dealers final best offer on an RTS: $800 down, $285 a month for 42 months, 12k per year; based on a straight invoice of $27,710 as a starting price. The MSRP is $30,625. The $800 does include my first monthly payment and inception fee.
    When I work with the lease calculator and use the money factor and residuals from your recent post I can't make the numbers work? Any thoughts on the offer?
  • cccompsoncccompson Posts: 2,388
    These number are similar to those being advertised in the paper by multiple dealers in Central Ohio, both today and last Saturday. I'm no lease expert but it sounds pretty good to me.
  • kyfdx@Edmundskyfdx@Edmunds Posts: 25,898
    I don't have the numbers for a Ridgeline lease.. But, if you are doing calculations, add a $595 acquisition fee on to your selling price to get the cap cost... Your upfront money isn't enough to cover that fee, so it has to be rolled into the lease payment...

    That might help your numbers agree with theirs...

    But, no matter what... Under $300 a month, and under $1000 due at signing, is dirt cheap for a $30K car, even on a 42 month lease...

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  • you may want to check out Honda leadership purchase. Acts like a lease but you are the owner not Honda. Ballon at end or turn in like a lease. Payments should be close regardless (lease a little less since on more payment)
    My RTS deal went this way

    $27,800 with tint and doc fees

    15k per year
    zero down. Nothing.
    Super preferred rate 2.51%

    REsidual $18,000

    Payment $320 x 35 and turn in or purchase

    Big point 12 k year vs 15 k per year $13 per month==this is how Honda works the residual. Way cheap so I did it even though 12k is my normal use. Regardless, can sell myself and will not matter.
  • postalpostal Posts: 3
    If I lease the car in my name is there any restrictions on my wife driving it?
  • Nope. If she's insured, you're good to go.

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  • You're welcome fsufan. You are absolutely right about October being a bad month for the auto industry. Everyone who I have spoken with at both the manufacturer and dealer level says that October has been terrible. It is difficult to say whether automakers will decide to enhance their incentives or lease programs in response to the rough month. I suspect that most automakers will try to hold off on doing anything dramatic for another couple of weeks. If November ends up being just as slow, we could see some incredible deals at the end of the month or in December. Of course, as I always say it is difficult to predict exactly what manufacturers will do with their future incentives.

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

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