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2013 and earlier-Honda CR-V Lease Questions

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Comments

  • indianajohnsindianajohns Member Posts: 89
    What is America's best selling crossover vehicle? Ford Edge. They don't offer the lower lease rate because they aren't selling cars. It's more likely that Honda just doesn't want a lease program whereas Ford does. Honda has the high lease rate to discourage leasing. That's why Car_Man always says, "HONDA CURRENTLY ISN'T OFFERING LEASE SUPPORT ON THIS VEHICLE." His way of saying it's not smart to lease it at 6% lease rate.

    It's funny to me when I tell a Honda owner to look at other brands and they pretty much give it no chance as if the world would end if they bought a different brand. I have owned a Honda Civic, Volkswagon Passat, Chevy Suburban, Saab, Audi TT, Dodge Magnum, 2 Fords. The Honda Civic I owned was at best around 5th place.. Keep an open mind. You might be surprised. Again, I'm not saying any brand is better than any other. I'm just saying a $23,000 car shouldn't cost $320 a month on a lease. If it is going to be worth so much why didn't you just do a traditional loan. You could've done a 6 year loan for $23,000 for around $380 per month. In three years you would owe about $12,000 on the loan. (The 62% residual was what about $15,300 or your lease?) So according to YOUR Honda/Acura Theory of Depreciation, you could sell it for $22,999.99 OR MORE after 3 years and make some real money. If they are worth so much after 3 years WHY ARE YOU LEASING?
  • zack82zack82 Member Posts: 42
    We can agree to disagree. I do appreciate your insight though. Again, I have owned other cars outside of Honda as well. I chose not to go back to American brands, unless it is a Corvette...:)

    I lease to have a smaller monthly payment and the option for a new vehicle every 3 years, plus using it as equity towards a new one.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Greetings donuts. You never mentioned the selling price of the Civic 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 the vehicle that they want to lease is that it is necessary to calculate its lease payment. I am sure that either myself or another helpful community member would be more than happy to give you their opinion of this deal if you let me know what its selling price is.

    Car_man
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  • mjbhip1mjbhip1 Member Posts: 4
    Here is the deal I was offered by a third-party leasing company:

    CRV EX-L
    MSRP - $27,370
    Offer price - $25,750
    Miney Factor - .00206
    3 yr, 12K miles per year
    Payment with tax (PA has a 9% personal ppty tax on your monthly payment)
    "Right around $415 per month"
    1st payment due at signing

    Maybe I was expecting less, but this still seems a bit high???
  • mjbhip1mjbhip1 Member Posts: 4
    oops forgot the residual which was 59%
  • mjbhip1mjbhip1 Member Posts: 4
    Hi Car_man:

    Do you know if these rates have changed any as of mid-July? thanks
  • jojobrownjojobrown Member Posts: 2
    Hi,

    I got quoted a money factor first of .0038 and then lowered to .0031 top credit with a residual of 61% on a CR-V EX. Said it was straight from Honda Finance. I was skeptical, so I decided to walk but maybe those numbers are right for July. The MF seems way too high regardless.

    Would appreciate it if someone could post the July rates. Disappointed deal did not work out.
  • mjbhip1mjbhip1 Member Posts: 4
    I just got off the phone (7/15/2008) and was quoted for a CRV-EX-L a residual of 60% and a money factor of .00280 for top credit.. on a 3 year 12K per year deal... this from Honda Finance.
  • jojobrownjojobrown Member Posts: 2
    Thanks. I should have mentioned the quote was on 3 yr 12 k yesterday. Only after mentioning that I had seen lower rates did they lower the rate to .0031. They said that the CRV was unique because no specials compared to Accord or Civic and that accounted for the higher rate.

    I received a selling price and a trade-in price on a previous lease that I was pleased with, but once transferred to financing things changed. I didn't get full value of trade until I noticed and mentioned it. I probably would never have noticed if I had not read up on this forum and others. Unfortunately, I am not getting competitive quotes from other dealers.

    I hate car buying; I am always feeling like I am being cheated!

    Mjbhip1, do you just contact Honda Finance to get the quote? Can the different CRV versions account for the residual and money factor difference?
  • hotstick12hotstick12 Member Posts: 5
    Im in the Suffolk County New York area ...so,could u please give me an idea for a lease price Iand or buy of this vechicle !!In the lease im lookin to put nothing down except 1st month and dmv fees!!If i purchase (from what ive been reading is the better choice) What do u think i would be able to walk out the door w/ a LX crv 2008 if i pu $3000. down??Im lookin for a great deal??Also is it a great time to buy a 2008 ,since its the end of the year and 2009 s will be coming out soon??..Thank You!!!
  • hotstick12hotstick12 Member Posts: 5
    Hey CarMan or kyfdx, could u tell me if this is a good lease deal on a 2008 Honda CRV EX ?This was the quote i was given, 309 a month x 39 months....nothing down except 1st month and DMV fees(taxes and everthing else was rolled into the lease)??They didnt want me to leave!But i didnt want to make a fast decision!!This was at Atlantic Honda in Bayshore, Ny (suffolk county) Long Island?? What do u think?? Thanks in advance!!!
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Good morning mjbhip1. Honda's lease program for the CR-V is a little worse this month than it was in June...its money factor is slightly higher and its residual values are slightly lower. Honda Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2008 Honda CR-V EX 2WD with 15,000 miles per year are ..00270 and 59%, respectively for consumers who qualify for its "Super Preferred" credit tier and pay a security deposit at lease signing. The numbers for an otherwise identical lease of an '08 CR-V EX-L 2WD without navigation are .00270 and 57%.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi jojobrown. The money factors that you have been quoted for the CR-V are too high. While it is true that Honda is not currently providing any lease support on it, Honda Finance's current buy rate standard lease money factor for consumers who qualify for its "Super Preferred" credit tier is only .00270. Make sure that the dealer that you are working with uses this factor to calculate your lease payment. There's no reason to allow them to mark up your rate.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi hotstick12. You never mentioned the selling price or MSRP of the CR-V 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 what this vehicle's selling price is 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'm sure that either myself or another knowledgeable community member will be happy to give you their opinion of this deal if you let us know what these numbers are.

    If I was in the market for a CR-V right now, I personally would shoot for a selling price of around $500 over dealer invoice and then have the dealer calculate my monthly payment using Honda Finance's buy rate lease money factor of .00270 (for Super Preferred tier customers who pay a security deposit). Try hopping on over to the "Honda CR-V Prices Paid and Buying Experience" discussion for additional pricing feedback.

    Car_man
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  • johnnyg2johnnyg2 Member Posts: 1
    I got quoted a .0265 factor with 56% residual, 42 month term, 15k/year, 0$ down, on a CR-V EX 4WD. I am thinking the 56% is low, any thoughts? Am I better off with 36 or 48 months?

    JohnnyG2
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi JohnnyG2. The residual value that you were quoted sounds a bout right to me. Individual dealers do not have the authority to alter banks' published residual values, so the ones that they quote consumers are usually correct.

    Car_man
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  • hotstick12hotstick12 Member Posts: 5
    Yesterday i was very close to a deal for a 2008 CRV EX at Atlantic Honda in Bayshore(long Island) NY for $300.51 a mo x 39 months w/ 1st month and dmv fees down!Then when we agreed they said teachers federal credit union charges a $895 bank fee which they wanted to add to my 1st payment and dmv fees for a total of $1327 down.I kept trying to get the fee waived but they kept refusing,saying it was like sales tax! Is this Right?I told them i wanted to think it over and i would get back to them today, but Can i negoitate on a bank fee?Otherwise i am happy w/ this deal cause i got them down to charge me 2300 dollars including Destination Charge for the OTD price on the lease!!Any Help???
  • bonita4444bonita4444 Member Posts: 1
    I am looking to lease a EX or EX-L in the next week and was wondering if anyone had good experiences & great prices with any dealers in the LA area? Help??

    I have been emailing around trying to get quotes. It is very hard for dealers to give you a straight answer via email but I am determined. They all say what has everyone else quoted you & I will do better. But no one is willing to give out too much info they all want to get you in the door.

    What I got back so far is really high. Based on .00280.
    2008 HONDA CRV EX 2WD
    $22,192
    DOWN $641.73 (incl. 1st month) AND 35 PAYMENTS OF $365.27 INC.TAX

    2008 CRV EXL 2WD
    $24,581
    DOWN $707.32 (incl. 1st month) AND 35 PAYMENTS OF $415.86 INC.TAX

    I am trying to avoid putting anything down.

    I have read all the posts & see Honda is not offering great incentives on leases...has anyone had any good experiences going through other financing companies, as it seems this is a big part of the problem If so I would love to hear about it.

    Any advise would be greatly appreciated

    Thanks,
    Bonita
  • utahboyutahboy Member Posts: 2
    A leasing company in North Texas "D&M Leasing" gave me to following and it sounds pretty good to me.

    CR-V EX
    Price: $22,492.00
    Down: $4,000.00
    Term: 51 Months
    Miles: 12,000/year
    Money Factor: 0.00270

    Payment: $289 a month

    They also said that I could do a 60 month lease at $271 a month. I have looked a lot and this appears to be the best deal that I have been able to find out there. If you know of anything better or if this looks strange to any of you, let me know.
  • kyfdxkyfdx Moderator Posts: 235,175
    At those prices, I'd just buy the car..

    If you finance $18,500, you can have payments of $360/mo. for 60 months, and you'll own an $11,000 car, free and clear...

    CR-Vs have never had really good lease programs... they still don't.

    regards,
    kyfdx
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  • blueiedgodblueiedgod Member Posts: 2,798
    A leasing company in North Texas "D&M Leasing" gave me to following and it sounds pretty good to me.

    CR-V EX
    Price: $22,492.00
    Down: $4,000.00
    Term: 51 Months
    Miles: 12,000/year
    Money Factor: 0.00270

    Payment: $289 a month

    They also said that I could do a 60 month lease at $271 a month. I have looked a lot and this appears to be the best deal that I have been able to find out there. If you know of anything better or if this looks strange to any of you, let me know.


    You are probably better off buying it.

    $289x51=$14,739 + $4,000 down = $18,739.

    $271x60= $16,260 + $4,000 down = $20,260 in payments over the next 5 years with nothing to show for it at the end of the lease.

    I am pretty sure that a 5 year old CR-V with 60,000 miles is worth more than $2,000.
  • hondalicioushondalicious Member Posts: 12
    Dear knowledged members of the forum,

    I'm from downtown Boston, MA and am in need of some real guidance: I'm about to pull the trigger on a lease for a 2009 Honda CR-V EX-L. The (somewhat challenging and complicated) facts:

    My current situation:

    ~ 2006 Honda Civic EX w/Navi (top trim line at the time). Zero down, $309/month all inclusive. 48mo/12K mile lease. Out of warranty now.
    ~Buyout was $10,000 at lease end
    ~ currently have 38,200 miles on it with 18 months left in my lease, so i'm over my mileage limit projection.
    ~have about $1000 of bumper damage (hit a concrete pillar while parking, not reported to insurance yet as it would knock $500 out of my pocket for a deductible, and slam my premiums up about $300 a year for 5 years, as I am currently a perfect step 9 driver: total sunk cost of $2000 over 5 years).

    My offered situation:

    ~ the new 2009 Honda CR-V EX-L in Taffeta White, 36 month lease/15K miles.
    ~ $330/month, $350 due at signing. all taxes, fees, doc, dest, plates rolled in.
    ~ Immediate buyout of my current lease, no reporting the damage to insurance (they'd fix it themselves).

    YES, I know that you can't judge a good deal based on monthlies (shame on me for dealing in that way!), which is why i come to you all for advice. i've been trying to reverse calculate the OTD price using the great lease calculators on Edmunds and provided by you great folks, and would like to know if any of you (especially Car_man, who seems to be an authority in this department) know the September 2009 CR-V EX-L money factor and residual and invoice price? Or can someone help me figure out if this deal looks good?

    am i parting with my leased civic for too little, or should i just pull the trigger and walk away with a new car with more miles allowance? the way i feel, my "trade" leverage is limited because of the damage on my car... but i also would be happy with a solid deal. Bottom line: am I getting a good deal?

    Any help would be really, really great.
  • bartenderfloydbartenderfloyd Member Posts: 8
    Anyone know what these two are for September? Can anyone tell me what they will be in October? Looking to lease a 2009 CR-V EXL.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi hondalicious. You're right, this is a complicated situation. Even so, there's no reason why the dealer shouldn't tell you what selling price they are charging you for the CR-V that you are interested in. This is a very important number to know and it is very difficult to evaluate how good a deal this is without it. Don't let the dealer take advantage of you just because you are in a tough situation.

    Honda Finance's current buy rate lease money factor for a 36 month lease of a 2009 CR-V EX-L AWD without navigation with 15,000 miles per year are .00270 and 61%, respectively for consumers who qualify for its "Super Preferred" credit tier and pay a security deposit at lease signing.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi bartenderfloyd. I believe that Honda's current lease program is only scheduled to run through September 30th. It is difficult to say what its October numbers will be like at this point.

    Honda Finance's lease program varies by term and mileage allowance. You never mentioned what either of these variables are, so for now I will assume that you are interested in a 36 month lease with 15,000 miles per year. Let me know if you want something different.Honda Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2009 Honda CR-V EX-L AWD without navigation with 15,000 miles per year are .00270 and 61%, respectively for consumers who qualify for its "Super Preferred" credit tier and pay a security deposit at lease signing.

    Car_man
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  • hondalicioushondalicious Member Posts: 12
    Hi to Car_man and kyfdx, both helping me immensely through my situation:

    So, where the story last left off, I was going to go in and sign once the title on the car was available... and when i went in to sit with the finance manager to finally sign out my lease and sign into the new one, lo and behold, I was informed that I was not qualified for Super Preferred, and on top of that, they claimed that the sales associate miscalculated the value of my trade. $350 down and $330 a month on a 2009 EX-L CRV was impossible.

    After a few hours of displaying my extreme frustration and anger... the dealership rotated in their best... the head of Finance managers, an associate that we had a close relationship with, and finally, the GM of the branch. He had come in, and ran some numbers, telling me that there's nothing we could do... that both my credit and my trade were working against me, etc. I was inconsolable, especially because i had handed them $350 to seal the deal, but never signed official triplicate documents because the car was not in yet...

    Anyways, the GM gave me his cell phone number, told me to leave and pretend like I was never there. So i did, afraid that I might become really nasty (my wife helped me out of there in one piece). This morning, he called me with this offer:

    Vehicle: 2009 CR-V EX-L AWD
    Price: 25,356.61
    MF: 0.00270
    Res: 61%
    Mile allowance: 15K miles/year
    Term: 36 mo lease.
    Payments: $350 down (already paid), 35 payments of $350.
    Provisions: take my 2006 Civic EX w/Navi, 39000 miles, 18 payments of $309 left, approx. 10,000~ buyout, as is, with bumper/fender/headlamp damage.

    The GM claimed that he's losing approx $640 off of "net." Not sure what that means. He claims that he wants to keep me as a customer, especially after two perfect lease experiences with them.

    After the aggravation of all this, I'm still seeing red, so i told him I'd call him back. The offer is printed up for me and waiting at the dealership.

    Help me see clearly, ladies and gents. Hope I have enough information this time to go on.
  • indianajohnsindianajohns Member Posts: 89
    It's impossible for a dealer to ever lose money on a lease. They are getting AT LEAST any/all rebates, dealer holdback, plus the acquisition fee/ other bogus fees on every lease. If you are trading in a previously leased vehicle, they are making additional cash re-selling your better than average well maintained vehicle.

    I'd say your deal of $350 per month is pretty good for a CR-V EX-L AWD. You could get twice the car for that kind of money by not leasing a Honda. Honda offers very little (if any) lease support on any of their vehicles.
  • hondalicioushondalicious Member Posts: 12
    Thanks for the reply Indianajohns. So in short, was the deal good? or am I paying too much here? We're Honda people, so leasing/buying anything other than a Honda isn't really an option... just wanted to know how well we did.

    To all those reading for the first time and would like to sound off, here is the deal i'm looking for an opinion on (with precise numbers this time):

    Vehicle: 2009 CR-V EX-L AWD in Boston, MA
    Price agreed upon: 25,358.61
    Gross Cap Cost: 26,321.61 (doc and acq fees, i assume)
    Cap Cost reduction: 1460.35 for my lease trade-in, 350 for my first month's payment.
    MF: 0.00270
    Res: 61%
    End of Lease Buyout: 16,936.65
    Mile allowance: 15K miles/year
    Term: 36 mo lease.
    Payments: $350 at signing, 35 payments of $349.63.
    Provisions: take my 2006 Civic EX w/Navi, 39000+ miles, 18 payments of $309 left, approx. 10,000~ buyout, as is, with bumper/fender/headlamp damage.

    Why we went with an '09? no more Taffeta White EXL 4WD '08s left.
  • indianajohnsindianajohns Member Posts: 89
    I'm not anti-Honda or anything, I'm just stating some facts. You put down almost $2,000 on a $26,000 car and your payment is still $350 a month??? It's high, even for a CR-V. If you hadn't put anything down I would've said you did okay.

    But here's where you are really going to be disappointed. According to my brand new NADA guide, AVERAGE trade-in on an '06 Civic EX w/Nav, 39,000 miles with no additional options is $14,800 with a full retail price (the price the dealer will sell it for) of $18,000. So if your buyout was $10,000 the dealer is pocketing about $8,000. Even though you leased the Civic they should have given you way more credit towards the CR-V, the market has changed and now the small 4 door gas sippers are worth their weight in gold. You probably could've bougth the Civic and sold it or traded it in for a hefty profit.
  • hondalicioushondalicious Member Posts: 12
    Yeah, I hear you indianajohns, and you make spot-on points as to why we should've leveraged our "trade" more. The demand of the Civic right now is pretty sick where I'm at: dealers are completely out of stock on the 2008 Civics in Massachusetts, and I'm fairly sure the 2009s are gonna be high and tight when it comes to getting a deal. But for the points above, I just wanted to turn it in without a hassle. And had I turned in my car in 2010, with about 63K miles on it (at the rate i'm driving, i'll be at that number which is 15K over my allotment), with my damage (which I wasn't going to fix on my own anyhow), who knows where we'd be in terms of trade leverage? I dunno: lots of question-marks there.

    ...but in the end, we're not really all that disappointed about our trade. Why?

    1. kydfx said it best when he said that the dealer could make money on the Civic... but we as the lessees could not. As entrepreneurial as your suggestion sounds, we weren't in a position to buy the Civic, either now, or at lease-end to flip it over for a profit, as it would require another financing plan, money down, etc.

    2. even if we could swing to buy the Civic, with the damage estimate from auto body shops coming in at about $2,000 (replace damaged fender, headlight, and bumper), it would have been $500 dollars out the door and point dings on my insurance (I crashed it into a stone pillar in our garage so the onus is on me) that would have cost me quite an increase in my insurance over the next 5 years while i suffered the 4-point drop in step. (I'm a perfect 99 point driver right now, so my car insurance discount is very nice). A provision in our new lease on the CR-V is that the dealership would take the lease buy-out trade as is, no reports to insurance. (obviously because they could doll it up and bang out the repair for super cheap, and probably super shady as well).

    3. With 18 months of payments of $309 a month left on it, and me being WAY over on my alloted miles (12,000 miles a year allowance, I'm at 39,500 today so you do the math) on the 48 month lease on the Civic, I know that it wouldn't have been impossible, but I wasn't in an excellent position to begin with to haggle too much on the value.

    4. On a more insignificant note, it needed a new set of tires (just about bald), and one had a flat that I had to repair. And throw in that the warranty on my car had expired 3,000 miles ago... cost of ownership may or may not have risen a bit: I drive like a maniac on the Boston roads, and who knows what my little accident might have jostled up inside.

    So... lots of factors I hadn't elaborated on before.

    considering all this, $350 actual out-of-pocket, drive-away cost and 35 more payments of $350 on a newer car, while unloading a car, while SUPER popular right now, could have been a headache towards lease end. The CR-V, while gas will cost more per tank, it's roomier, more-mileage-allowance, 4WD (we live in New England and my Civic has spun out on snowboarding excursions to Vermont many more times than i'd like to remember), and still relatively fuel-friendly (regular fuel FTW!).

    and as a footnote, forcing the hand of the dealership to set a precedent on my Super Preferred status (two tier bumps with my credit score in the low 600s) with American Honda Finance for future leases (possibly an Acura after the CR-V) was nice.

    Am I still being optimistic on the value of my deal? Clearly it's in the eye of the beholder, but I definitely appreciate the additional perspective that you or anyone else has to offer on this particular deal... sorry this got long - been thinking this one through for a while, first time it's all in one place). :blush:
  • optimus1optimus1 Member Posts: 6
    Hi,

    Just wanted to sound you guys out on something. I'm planning on leasing the 2009 Honda CRV EX model. I'm getting a total price of 23,500 with monthly installments of $375. Does that sound like too much or would you recommend that I go ahead and sign up?

    Thanks!
  • fishh2ofishh2o Member Posts: 1
    I am not sure how i feel about the Honda lease offers at my local Queens, NY dealer. I am currently in the final couple of months of a lease with VW.

    One place i walk in and they instantly offer $349/mo on EX-L with $5k down.

    Today I test drove and their first offer is EX-L for $469/mo, 48mo with $0down. I laugh at that, not literally, and finally get them to come down to EX-L+nav for $410/mo, 12kmiles, 0 down, pay the fees only. I was still not comfortable with that deal, so I ask them to pay the last 3 months of the lease I am currently in. When they decided against it, I decided against their offer. Here's why:
    --- They never showed me the sticker price of what they were selling the car at, no matter how many times I asked.
    --- Also, on the $410/mo deal they came back and explained that the lease was not really going to save me any money, especially if in 3 years I wanted to buy out the car. At 410/mo thats over $16k with a $16k buyout. Why would I really want to buy a car that ends up costing $32k!?!?!
    --- Why was there a $100 difference for a 5k downpayment?
    --- When offering a finance deal instead, again, they didn't offer the sticker price, but instead wanted all my personal details, trade in car details, and a credit card before negotiating the price of the car.
    --- Also, according to the car dealers, ford, volvo, honda, they only have a $1200 margin above what they pay. I personally can't believe that knowing that they really make their money on the volume/incentives/rebates the manufacturers give back, right?
    Am I just a bad negotiator? Maybe, but I just don't understand how they can expect to sell a car without showing the sticker price!>!>!>

    So, did i pass up on a good deal?
  • kimiceekimicee Member Posts: 1
    Hi Car_Man,

    Help! :cry:

    I am a 2007 CRV LX leasee. I KNOW I am paying too much. I chock it up to being car stupid, and a not so great credit situation. With that said, I'm 2 years into a 36mo lease from Honda Financial, and I just received a letter from the Queens, NY Honda dealership I purchased the car from. The letter is summed up as follows:

    'Your vehicle qualifies for a unique offer from ****** Honda. Bring in your vehicle, we will pay off the balance and offer you a 2009 vehicle of your choice.'

    After calling the dealership, I learned that this location has purchased a space acrossed the street to be deemed the 'Used Car Lot' for their location. The Mgr explained that they are in need of cars to fill that lot, and that because my car has low miles (16k) and is in great condition, it is the perfect deal for them.

    So here's what they offered me:

    09 CRV - EX
    $24500
    2600 /down
    $506/month, 12k miles/yr

    YES YOU READ RIGHT - $506 a month. Now is it just me, or are they trying to build the price of the previous lease buyback into my new car? I told them to go suck it.. but I would like to know if you could break down how this payment is what it is.

    My current CRV is 07, 16K miles. 23k financed amount, and I put 2000 down. SOMEHOW my payments ended up being $520.70. Yeah, I know...I got HOSED. But I needed a car, and I could afford the payments. I did what I had to do at the time. But shouldn't 2 years of paying on time and having improved my credit rating allow for my payments to be closer to around $430 - $470?

    I know my credit situation wasn't great when I initially leased, so I understand a high payment before. I was also told by the finance mgr that once I had established on time payments with Honda Finance, I would get a 'better deal' the second go around. WHERE IS MY 'BETTER DEAL'? :confuse:

    Personally, I believe I am better off waiting until the lease is up in Feb 2010, then starting fresh with new terms, or just going with a different brand completely.

    Oh, and P.S. They told me the $506 amount BEFORE he had looked at pay stubs, pulled a credit report, etc.

    How do they do this?

    And WHAT if ANYTHING can I say to them to get my payments to a REASONABLE rate??
  • kyfdxkyfdx Moderator Posts: 235,175
    All of the stuff in the letter is a just a come-on.. There is no special program to get you out of your lease early. The dealer is just taking your current car in trade, and paying the lease company off... Chances are, they are going in the hole several thousand dollars to do that. Then, they have to add that amount into your new lease, so they can sell at a profit.

    Complete your current lease, then turn your car in. Hopefully, by that time, your credit will be better (it will definitely be good with Honda Finance, if you've made all your payments on time), and you can choose to lease or buy the car you want, at a reasonable price.

    Trading your car in now, before the lease is up, will likely cost you several thousand dollars extra.

    regards,
    kyfdx
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  • mikeatschallermikeatschaller Member Posts: 3
    for someone who is the host of a car form you would think you would know what you are talking about but as someone who sells these cars every day honda lease programs usually have a buyout that is less than what the car is worth up to a year before lease end last week I took a customer out of there lease 6 months early and they had already reached the 45k they had signed the lease for and gave them 1000 down towards there new car. THESE ARE HONDAS NOT AMERICAN POS.
  • kyfdxkyfdx Moderator Posts: 235,175
    Well... let's see..

    They offered him a lease on a new CR-V for over $500/mo... I can buy a new CR-V for $500/mo.

    So... either they are screwing him again, like they did the first time... or, they are having to roll in negative equity from his current lease.

    I don't think I have to be a Honda dealer to do that math.

    regards,
    kyfdx

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  • spikeparkspikepark Member Posts: 9
    Yes, I definitely think that you passed up on a good deal. I went to a Queens Honda dealer this month and they offered me a 09' CR-V EX-L with Navi. for $595 per month with $3,000 down for 36 months and 12K miles. Total payments would come out to $24,420 for a car that only costs $28K? They would not negotiate the price either.
    To boot, the only reason that I went into the Honda dealer was because I was sent a letter from the dealership (as I am a current Honda owner- leasing a Civic). The letter stated that I should come in to look at their new cars, as they would buy back my car and I would get an amazing deal on a new car. $595 for a CR-V- I had it out with the manager.
    So the bottom line came down to the manager telling me that the leasing programs on the CR-V are really bad and that I should just stick with my Civic. Terrible customer service.
    Can you let me know what dealership offered you $410 per month for the 09' CR-V EX-L with Navi., as I would like to visit the dealership.
  • blueiedgodblueiedgod Member Posts: 2,798
    This Queens dealership that people are talking about, does it happen to be Paragon?

    I would stay away from Paragon and White Plains Honda. They are owned by the same people, and are known for less than honest practices.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi kimicee. I'm sorry to hear that you are paying too much for your CR-V, but you shouldn't compound your earlier mistake by making another one. Dealerships send out letters like "Our used car department desperately needs (insert whatever car you are driving here) for our inventory. Come in today and we'll cut you the deal of a lifetime." all the time. Offers like this are nothing more than a sales tactic.

    It is usually fairly expensive to get out of leases well before their scheduled end dates. In order to do so, you need to purchase the vehicle that you are currently leasing from the bank that you are leasing it through. It often turns out that it costs more to do so than your vehicle is worth on the open market. This is especially true today when used vehicle values are falling faster than I have ever seen.

    Furthermore, many banks expect consumers who end their leases early to still make all, or at least the depreciation portion of their remaining lease payments. As you can see, this can get very expensive.

    You can determine approximately how much it will cost you to get out of your current lease by comparing its purchase price to its value on the open market at this time. You should place a call to the bank that you are leasing your vehicle through to find out its exact price. Once you know exactly how much money it is going to cost you to buy your leased vehicle you need to compare it to its current value on the open market. You can find out approximately what your vehicle is worth by looking up its Edmunds.com True Market Value in the Used Vehicle Pricing section of this site. You also may want to stop by the following discussion: "Real-World Trade-In Values". Don't forget to check to see if you are still on the hook for your remaining lease payments. The difference between your leased vehicle's current value and how much it will cost you to buy it plus any remaining lease payments that you are obligated to pay will equal the cost of getting out of your lease right now.

    You will likely find that you are better off waiting until you are closer to the scheduled end of your lease to get another new vehicle. Besides, $500 per month is way too much money to pay for an SUV like the CR-V. There are a number of other comparable vehicles out there that you could lease for less.

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  • TheQuestianTheQuestian Member Posts: 4
    I hope this is the right place to post this.

    My wife and I just got married, and we are looking to lease (buy?) a new CUV. I currently drive a 2001 Hyundai XG, and she drives a 2004 Kia Rio. My car is paid; hers still holds negative equity (somewhere in the neighborhood of 3K to 5K, I will have to find out for sure from her). I have done some research, and it appears that my car is valued at around $2000 - $2500. Getting to the point . . .

    We would like to trade-in both cars, get a bigger vehicle (to tote my HUGE keyboard around), consolidate our insurance payments, deal with just one monthly payment, and stay under warranty. Obviously, we are considering a Honda CR-V, and we are also considering a Hyundai Santa Fe.

    Here are the offers:

    2009 4WD Honda CR-V LX
    Quote: $20395
    Term: TBD
    Money Factor: No clue
    Warranty: 3-Year Limited
    4-Year Residual: $11200

    2008 AWD Hyundai Santa Fe GLS
    Rebate: $2500
    Online Discount: $1639
    Quote: $19406
    Term: TBD
    Money Factor: No clue
    Warranty: 5-Year B2B
    4-Year Residual: $6000

    The residuals (56% vs. 30%) have been a huge hang-up. Notably, the salesperson at Hyundai referred me to the leasing office, who gave me the 30% figure. When I told her what he had said, she seemed quite shocked, and mentioned that she had a 2004 on her lot currently selling for $14000. Not sure what to make of this.

    Also, given the 5-year Hyundai warranty, I'm wondering if we could/should take advantage of a lower monthly payment through Hyundai, and accept a 60-month lease term. Would this be an reasonable decision? What about HondaCare? Would it be wise to accept a 60-month lease term under a HondaCare warranty?

    Other Factors:
    I happen to prefer the look of the CR-V. Not that important.
    The Santa Fe appears to be a larger vehicle.
    Hyundai is offering something like 2% or 3% APR through 60 months; but we would have to finance. Notably, they seemed to be encouraging this . . . any good reasons why?

    I have communicated exclusively through e-mail with both dealerships, and haven't test driven either vehicle, yet. Any other factors we should consider before visiting, or advice? Other similar vehicles or dealerships? Any help at all would be greatly appreciated.

    Thanks!
    Jermaine
  • newcarguy5newcarguy5 Member Posts: 14
    It's my understanding that Hyundai's have a poor residual value, so leasing doesn't make any sense. In fact, I test drove the Santa Fe recently and the dealership told me they do not lease at all. When I checked them out a few years ago they told me the same thing.

    Some dealerships might offer a leasing option, but it doesn't make any sense to lease a car that depreciates so quickly.

    According to Consumer Reports the Santa Fe has an "above average" predicted reliability which is quite good. My guess would be that consumers have a lower demand for used Hyundai's because they do not perceive the reliability to be as good as Consumer Reports suggests. In this case perception is reality. Regardless of the reason, the demand for used Hyundai's is relatively low.

    As a result, your choices are to buy or lease the CR-V or buy the Hyundai. Leasing a vehicle with a low residual (even if it is much higher than the 30% mentioned in your email, it has to be much lower than Honda) doesn't make any sense. That is why the dealership is discouraging you from leasing one.

    Good luck with your decision.

    I'm trying to decide between the '09 Forester (you might want to check it out) and the CR-V. Anyone have any advice regarding these two vehicles?
  • utahboyutahboy Member Posts: 2
    I checked out the Forester and the CR-V last August. I chose the CR-V. The main reason that I was looking at the Forester was their handling. They are touted as having a great 4 wheel drive system along with the associated benefits. But as I did not need the 4 wheel drive, I chose a FWD CR-V. I have had no complaints and no regrets.
  • TheQuestianTheQuestian Member Posts: 4
    Ha, well your understanding seems to be correct, doesn't it?! Thanks very much for the reply!

    All of the feedback I've received so far seems to be touting the build and quality (and obviously re-sale value) of the CR-V. So now the question is how to deal with Honda. Is this price pretty good? I believe it's pretty close to the Edmund's TMV price. How is the money factor determined? I have read that it relates to the interest rate, somehow, but what factors actually affect it? Or is it more concrete depending on credit/vehicle?

    And does it make sense to get HondaCare warranty coverage? I don't think I would like our lease term to exceed the length of our warranty coverage. If we were to decide on a 48-month or 60-month lease, would it be worth it? Is HondaCare good and reliable? Is it worth the money, or is there some other better alternative?

    Again, any advice is welcome!
  • newcarguy5newcarguy5 Member Posts: 14
    The money factor is set by the leasing company and is not usually negotiable. If you want to know how it equates to an interest rate just multiply by 2400. For example a MF of .00175 equates to an interest rate of about 4.2%.

    As for the term of the lease it's usually not recommended to lease a vehicle for more than 42 months. If you're going to lease for 60 months you might as well buy it. One of the main reasons for leasing is so you can drive a new car every few years without having to worry about the resale value of a trade-in every time. Also, the warranty covers most or all of the time you have the vehicle.

    You don't seem like the type of person who needs to drive a new car every few years, so I'm surprised you'd want to lease. For someone like yourself I think buying might be the way to go.

    I suppose you could buy an extended warranty, but I would still limit the length of the lease. I can't speak to HondaCare, but remember that part of the reason for buying a Honda is the reliability. According to Consumer Reports most warranties are not a good deal, but if it helps you sleep at night it might be worth it (personal decision).

    As for getting a good deal, get at least two or three quotes for comparison.

    By the way, I took a test drive of both the Forester and the CR-V with the wife this afternoon. Although I was leaning toward the Forester we have definitely decided that we're going with the CR-V. My only concern is that she is going from a Maxima with about 270hp to a car with 166hp. However, she basically uses it just to run around town so it should be fine. For the first time I'm buying instead of leasing.
  • TheQuestianTheQuestian Member Posts: 4
    Thanks for the great feedback; very useful! I am afraid this post might not still fit in this forum, but it is a response to a post that did, right? :)

    Quite serendipitously, upon arriving at work, I found that two co-workers had parked next to each other in the lot; one in a CR-V, and one in Santa Fe. Side-by-side comparison; what an opportunity! Also, it turned out that my cousin knew the CR-V owner, so I was able to test drive the CR-V.

    While it was a very good vehicle, the engine did seem a bit underpowered. Especially considering the extra 120+ lb. keyboard that would be regularly making its acquaintance, I feared it might not be appropriate. The Santa Fe also appeared to have a bit more cargo space (given its size advantage), so we are leaning that direction.

    New information: I found out that my wife's negative equity on her Rio is closer to being in the ballpark of 8K. This is not a very good situation to be in, and I do realize that, but how should we approach it? Since leasing a vehicle with 30% 4-year residual is a bad idea, and having so much negative equity only makes it worse, is it a reasonable alternative to finance?

    What benefits does financing present us vs. leasing? What steps can we take to get a manageable car payment, while at the same time trying manage the negative equity? On the 2008 Santa Fe Limited, they currently are offering:

    $3500 cash back OR $3000 cash back + 0% APR through 36 mo. + 1.90% through 48 mo. + 2.90% through 60 mo. + 5.90% through 72 mo.

    What are our options? And, perhaps more importantly, which is the best? I suppose I will settle for just finding out what our options are, though!

    Thanks.
  • bigdadi118bigdadi118 Member Posts: 1,207
    The Questian

    I will choose CRV based on Edmunds ratings reviews & fuel economy

    2008 CRV Fuel Economy : 22-23 mpg
    Editor's Rating : 9.0
    Consumer's Rating : 9.2 (186 reviews)

    2008 Sante Fe Fuel Economy : 19-20 mpg
    Editor's Rating : 7.6
    Consumer's Rating : 8.4 (84 reviews)
  • TheQuestianTheQuestian Member Posts: 4
    Thanks bigdadi.

    I did see that the CRV was rated higher here, but I think vehicles are rated highly for different reasons. One of our main needs will be to haul my 120 lb. keyboard around, and the CRV does not seem best tailored to that kind of heavy lifting (given its slightly underpowered engine). Another important factor was the fold-flat rear seating in the Santa Fe. In chaperoning my keyboard from gig to gig, I believe this feature will definitely prove beneficial.

    At the end of the day, I think everyone has unique needs. I certainly think the CRV would be the better choice for a lot of people, but I just don't think the feature set lines up with our situation.
  • blueiedgodblueiedgod Member Posts: 2,798
    With $8,000 of nagative equity!!!! you better forget about buying a new car for while. It will be cheaper to just sell your car and driver her Rio until it is paid off.

    Ask her how she got into the $8,000 of negative equity and you will see why you should not be buying a new vehicle now, or anytime in the near future, unless you have $8,000 to pay off the negative equity.

    Figuring that a 3 year old Rio is probably worth about $3500, she must have a loan of $11,500. She must have traded in a few vehicles without any downpayment to arrive to the $20,000 loan 3 years ago. A $20,000 loan from 3 years ago should have about $5,500 on it by now if it were financed for 60 months at 3-5% APR.

    A $20,000 loan on a $10,000 car?!?!?!?!?!?

    Don't make the same mistake TWICE!!!!
  • BrooklyNYCBrooklyNYC Member Posts: 1
    got the following offer in NYC:
    2009 CR-V LX Auto
    $299.00**x 39 months
    12k miles a year
    $0 down

    is it a good price?
    I'm worried for the 39 month - that would end the contract in Mar other then Dec which usually have better pricing for the new contracts
  • bigdadi118bigdadi118 Member Posts: 1,207
    This is the lowest lease in MA re LX FWD trim for special 1 in stock. You can use it as you base to negotiate. When it is 3 months before lease end you can go shopping and require dealer to buy out your lease with 3 months left.

    2009 CRV LX AUTOMATIC FWD.$258/month
    Lease requires approved credit; based on 12,000 miles/year, .20/mile excess; Lease based on $0 cash or trade down plus tax & fees.
    Security deposit wavied. $258 x 36, 62% res.Price excludes taxes, title, and registration fees; prices include all customer rebates, promotions, and incentives to dealer.

    ************************
    December whole monh lease special in MA...
    Every 2009 Honda CRV LX
    MSRP $22,965
    Buy $21,488 OR Lease $268/month
    4x4, Automatic
    http://www.boch.com/bochhtml/bochhonda/pages/HondaSpecials.aspx
    Lease requires approved credit; bases on 12,000 mile/year, .15/mile excess, Lease based on ZERO cash or trade down.
    Security deposit waived. $268x39, 63% res. Price excludes taxes, documentation, title, and registration fees, prices include all customer rebates, promotions, and incentives to dealer. Lease #152942
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