Leasing 2014 Honda CR-V EX L with navi

orange10

Hi there,
I have never leased a car before as we have only bought in the past. I went to a dealership and they offered me a 2014 CRV EX L with navigation for 438 a month, including all fees, taxes and no money down. We didn't discuss 2015's but this seemed rather high. Any suggestions or thoughts on the price? Is it worth looking at the 2015's? I can't imagine them being any higher. Thanks in advance.

orange10

Oh, I forgot to mention it was a 36 month lease, 15,000 miles per year.

kyfdx

We need a lot more information to give meaningful opinions.

What is the MSRP and selling price.

What state and tax rate?

You can see what others are paying here:
http://forums.edmunds.com/discussion/16770/honda/x/2014-honda-cr-v-lease-questions#latest

ken117

This is an example of how you would compute a lease payment:

MSRP $25,000

Residual $15,000 in this example 60% of $25,000

Capitalized Cost $22,000 (in your case this includes everything in the cap cost, price, registration, and acquisition cost)

Money Factor .0009 (which is 2.16% divided by 2400)

36 month lease

Using these numbers, the lease payment is computed as follows:

($22,000 - $15000)/36 = $194.44
($22,000 + $15,000) X .0009 = 33.30
Total Monthly Lease Pay = $227.74

Just plug your numbers into the above formula and you get the correct lease payment. You should use this number to the payment provided by the dealer to assure nothing is being pulled.

ken117

A few other suggetions for a first time leasee:

Negotitate the price of the vehicle exactly as you would if you were buying. Check Edmunds TMV and True Car for price numbers. These are average numbers, you should seek less. The maximum you should pay is the True Car number less $300, which is the fee dealers pay True Car for a sale.

You will need to add the acquisition fee to the price, usually $600 or so, which is not negotiable.

Your credit score will dictate the money factor, which is simply the interest rate divided by 2400. A score of 720 or more should get you the best rate. Make the dealer disclose the money factor he is offering. Ask him to disclose the buy rate, which is actual rate the bank or captive finance (Honda Finance) allows you. Dealers have a funny habit of inflating this number, called dealer reserve.

The residual value is set by Honda. Make sure the dealer is using the correct residual value.

If the lease terms do not include GAP coverage, some do, the dealer will offer you GAP coverage. GAP pays the difference between the amount paid by the insurance company and the total remaing lease payoff in the event the vehicle is totaled in an accident. At the dealer, this coverage would be several hundred dollars. You need to ask yourself if this is a good bet. How likely is it you will total the vehicle in an accident? Depending on how good a price you negotiate, the GAP coverage may only offer a limited potential coverage. Furthermore, GAP can be purchased elsewhere, like your insurance company perhaps, for a fraction of the cost at the dealer.

At the end of the lease, you will have multiple options, the same as if you bought the vehicle. You can buy the vehicle at the residual value, you can sell the vehicle, or you can trade the vehicle to a dealer. One thing you can do with a lease that you cannot do with a purchase is you can simply return the vehicle.

orange10

Thanks for your reponses. State is NJ and tax rate is 7 percent. I have to get the MSRP and rest of the info...I am going today.

orange10

MSRP 30,770. They are working off of 28.278 she said.

orange10

and this is a 2015.

orange10

Ok. The lease deal is 419 dollars a month for a three year lease, 15,000 a year. Residual value of the car is 18, 960. If I do a `12000 a year lease, the monthly price is 405 a month with a residual amount of 19, 592. This is with no money down all fees included. NJ taxes, and the MSRP 30770 based on 28278 selling price. Good?

Michaell

orange10 said:

Ok. The lease deal is 419 dollars a month for a three year lease, 15,000 a year. Residual value of the car is 18, 960. If I do a `12000 a year lease, the monthly price is 405 a month with a residual amount of 19, 592. This is with no money down all fees included. NJ taxes, and the MSRP 30770 based on 28278 selling price. Good?

53% residual on the 2014 CRV EX-L with Nav for 36/15. .00011 MF and $750 lease cash.

With your MSRP and selling price, I get a pre-tax payment of $337.40. Tax on leases in NJ is calculated up front on the depreciation amount (7% of $11,970, or $838) - this adds about $23/mo to your payment, so about $360/mo. Not sure how they are getting to $419/mo for 36/15.

Ask them to review all the numbers with you; don't sign anything until you understand them 100%.

orange10

I called the dealer and they said maybe the difference is the destination charge at 790, the doc fee at 498 and the motor vehicle charges at 301 which adds up to about 1600 dollars. Could that be the difference. I spoke to him again and he said 389 a month, 15000 miles three year lease with d 800 down. or all other fees included. Or 416 a month with no extra money out of pocket. Just wanted to know if this answers the gap and if this is a fair price

orange10

Seems I am still off by 12 buck a month?

orange10

I apologize, just to be clearer, he is saying that the 416 a month includes the 1600 in charges above and beyond the MSRP. This would be for a 36 month, 15000 per year lease with no money down at all. A sign and drive. Another option would be to put 800 dollars down and have a payment of 389 a month for the same terms, inclusive of all taxes and fees. Any thoughts?

Michaell

orange10 said:

I apologize, just to be clearer, he is saying that the 416 a month includes the 1600 in charges above and beyond the MSRP. This would be for a 36 month, 15000 per year lease with no money down at all. A sign and drive. Another option would be to put 800 dollars down and have a payment of 389 a month for the same terms, inclusive of all taxes and fees. Any thoughts?

An Additional $1600 in fees is about $40/mo, so that explains the difference.