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I can't seem to send you a private message, try to get in touch with me and I'll give you the sales guys name.
best,
-M
If yes, what did you pay?
Thanks, Mike
So this is the LEASE quote
2005 CRV EX Black Manual
36 months-12K miles a year
Total Cap Cost 21642.62 which includes the assignment fee of 595 which apparently is standard from the honda dealership.
Money Factor 0.002350
Residual 13899.00
payments are 298.62 for 36 months
Inception Fees(due at signing including first payment) 495.62
I live in NH and haven't seen much from there... Also I of course am still trying to haggle via email... Can dealers negotiate any with the miles alloted per year? I want 15K but don't want to pay much more. Thanks for any info regarding this.. :confuse:
you should look at the Lease board also here at Edmunds to get some feedback.
I can tell you that my payment is that and I purchased the V. good thing about purchase is that you can usually sell for more than you owe, therefore putting some money into your pocket for the next vehicle downpayment.
The residual will be 2% of MSRP lower, if you go up to 15K mileage. (56% vs. 58%, I think) I don't remember the exact MSRP, but figure the residual to go down about $480, which will raise the payment by about $12/mo. + tax.. Well worth it, if you need those miles...
regards,
kyfdx
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That looks like a pretty good lease deal.
Something you might want to consider is the fact that you will have to keep up with all of the scheduled maintenance in order to be in compliance with the lease.
If you 'think' you need more miles, definitely negotiate the lease for more miles. It's better to have some left over at the end of the lease than to pay like 15 cents per mile for every mile you are over the limit (it adds up really fast).
Another interesting tidbit. I'm not saying that you will be in this situation, but there are instances where at the end of your lease, the car might actually be worth more than your payoff. This is more of a possibility with vehicles that hold their value well (like Hondas,Toyotas, and Lexus). You have to consider the market in which you live.
I just paid off a lease on a Lexus IS-300 because I knew that I could get more for it than the payoff (and taxes). I was in a situation where even if I traded it into a dealership, I would make a little bit.
As it turned out, I sold to a private party and managed to get $3500 out of the deal when all was said and done.
And yes, I bought a new CR-V
My advice is if you are planning on having the car long term, definitely just buy (consider the fact that most Hondas get 150K miles plus without too much trouble).
If you only want it for the short term the lease isn't a bad deal. At the end of the lease, check to see what the vehicle is worth (market conditions as well as Kelley Blue Book), but don't enter into the lease assuming that you will be able to get any money out of the car in the end.
Good luck.
Greer
Here is my thinking:
First of all, ANY option that they offer you in the finance office is excessively jacked up in price. The backend is where dealerships make most of their profit on the cars that they sell.
Secondly, Hondas are known for their reliability.
When the finance woman asked me if I wanted the warranty I said, "Why would I want the extra warranty? I'm buying a Honda because they are reliable and cost less to maintain."
I read a GREAT article online (I can't find it now though) written by a guy who worked at a car dealership after he was laid off from a tech job. He gave all of the details of how the car dealership works, what on average the various positions make at the dealership, and what extras are not worth buying.
It made me decide not to buy any extras offered in the finance department ever again. In the writer's opinion, and in mine, simply a waste of money. But, to each his own.
If I could find the article, I'd post the link.
Greer
Also, you can buy the 7yr/100K warranty from a dealer on-line for under $1100.. Just take an hour and read through that discussion.. all of the info is in there..
regards,
kyfdx
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Lyle
Apparently, the dealer there is charging a $2800 premium over the MSRP, referred to as a "market adjustment." He was told this is a common thing.
Though I have heard of premiums of varying $$$ amounts being charged on different Honda models through the years, 10% seemed like an awful lot. Some research on the web seems to indicate he paid too much.
Any insights or recent experiences to share regarding a premium being charged on 2005 CRVs across the U.S.?
Thanks for any information! :surprise:
CR shows the dealer cost of $23,078. That is a $23,836 invoice with a $758 dealer holdback. A 7% profit on the car would sell for $24,693, 6% $24,463. CR says a 4-8% profit is reasonable depending on the popularity and availability of the car.
Now I want $4,243 worth of accessories (install not included), metal look trim, rear sensors, chrome sides steps, fender flares, fog lights, auto day/night mirror, etc.
Anyone have any thought on how you figure the accessories into the deal?
The Honda website shows an MSRP with these accessories at $30,018, but I am not sure if they mean "without installation." I figure a 7% profit with the accessories at $29,234, 6% at $28,960.
Any thought on how I should approach this? I am thinking of just giving them the list of what I want and visiting several dealers just to see who gives the best price.
From what I found out at the dealership to other day, if your credit score is above 720 you should be able to qualify for 3.9% APR. That is not last months 2.9% but a 1% difference is about an extra $350 on a $20,000 at 36 months which is not horrible.
Ebill66, Try carsdirect.com if your local market is bad. I found it better to deal with the internet manager but when you only have one dealership in the area it might work out.
About the accessories. Have you thought about installing some yourself? You can buy them online below suggested retail and they come with installation instructions. The mug guards attach with 2 screws, and the metal look trim comes as a peal off adhesive
Basically I would only have them do the electrical work and everything else I would do somewhere else at a much lower install cost. The dealerships charge $40-$50 per hour in my area, which is clearly a rip off for something like snapping in roof racks.
How many keys(remote and regular) did you guys get with your CR-V???
CR shows the dealer cost of $23,078. That is a $23,836 invoice with a $758 dealer holdback. A 7% profit on the car would sell for $24,693, 6% $24,463. CR says a 4-8% profit is reasonable depending on the popularity and availability of the car.
Now I want $4,243 worth of accessories (install not included), metal look trim, rear sensors, chrome sides steps, fender flares, fog lights, auto day/night mirror, etc.
Anyone have any thought on how you figure the accessories into the deal?
The Honda website shows an MSRP with these accessories at $30,018, but I am not sure if they mean "without installation." I figure a 7% profit with the accessories at $29,234, 6% at $28,960.
Any thought on how I should approach this? I am thinking of just giving them the list of what I want and visiting several dealers just to see who gives the best price.
Obviouisly you have not researched enough, or you would have stumbled into posts about online dealerships that sell accessories up to 50% off from retail prices. So, that $4,000 in accessories would cost you $2,000.
Metal look trim can be had for under $150, cheesy but whatever floats your boat.
Rear sensors, I assume you mean beack up sensors, any aftermarket will work, DIY price is under $200, Stereo/Alarm shop can probably do it for $300. Useless in my opinion. But OEM ones are $350 or so.
Chrome side steps, the OEM ones are more decorative than functional. Side steps that you can step on, or running boards are $300 and an easy DIY.
Fender flares -- can be had for under $300, kind of cheesy IMHO.
If you want mud flaps, the two are already on, you just have to buy two more for under $40.
Fog lights, the OEM ones even after discount are $200, and involve removal of the bumper. Although it is a DIY, aftermarket maybe a better option for lower cost, or HID's for the same cost.
Day/night mirror is made by Gentex and distributed by MITO, and is not OEM Honda, I bought mine off ebay for $30. It is $99 on MITO site. You will need a CR-V bracket for $9.50. The OEM day/night mirror is $200.
Look through the threads and you will find dealer info for regions. The sponsor of this site, HandA are in CA, Fair Honda is in CT, so is Majestic. College hills Honda is in MD. Hparts is in OK.
Sorry for the slow reply. I was out of town.
I actually purchased the car during the lease. You can usually buy out a lease at anytime during the term (or at the very end). I called for the payoff amount, and found that the car was worth more than the payoff and taxes would cost.
How much pleasure driving or non-commute driving do you do? If you live less than a mile from work, and don't drive much other than that, you should be fine on 12,000 miles per year. That's 1,000 miles per month. Driving to and from work should only take 40 miles per month, leaving you 960 miles for any other driving you might do.
If you know that you will get bored with the vehicle, leasing may be the best option for you.
You need to research leasing in general though because you have to negotiate the sales price of the vehicle when you negotiate the lease. The sales price will determine how much tax you pay every month and will determine at what price the depreciation starts (which will in turn factors into how much your residual will be at the end of the lease).
Check out the leasing thread on Edmund's. You should also research how to negotiate a lease on other sites as well.
Definitely DO NOT go in to negotiate a lease without being fully knowledgeable about how they work and how to negotiate one.
Greer
I try to negotiate prices on the Internet as much as possible to avoid this type of situation (pushy salesman). It is so much easier to stand your ground at home with the Internet in front of you to do research and see what others are paying, invoice prices, etc. As many users have posted, you are not done after you negotiate your price on the Internet. Make that price is really what you pay, and watch out for hidden fees and gimmicks. I always ask for the the "out the door" price of the vehicle from the Internet price quote to include tax, tag, title, and ALL dealer fees. Most will give you this information and will be honest, but some will just use the Internet quote to get you down to the dealer and then the prices suddenly change. Just be leery, have information at your disposal, and do not sign anything if it does not feel right.
A few of the dealers (like aforementioned Landmark Honda) used the Internet quote as a ploy to get me down to the dealer and then apply a high stress sales approach. I quickly walked out the door.
To me, it was not even the cheapest price. It was the dealer who was the most honest, helpful, and direct. I am willing to put a couple hundred dollars back in the dealer's pocket if it means the whole buying experience will be honest and easy. I usually draw the line at $500 above invoice (depending on the vehicle, and current incentives, inventory, etc).
I'm a newbie to the forum, so please bear with me.
I leased a Honda '05 CR-V EX 2.4cyl. 5A two days ago.
I could kick myself for not having a calculator to do the math while I
was there, but the next day I calculated their "Rent Charge" and it
translated to a money factor rate of .00315 or 7.5%! This makes me sick to my stomach as I have excellent credit. I remember when in the office at the dealer,
when we first sat down, the business manager went over our income and he thought my income was a thousand dollars a month less than what it is, saying
"well, that makes a world of difference". Of course my rate was already figured into
my monthly payment at that time. Does amount of income affect the rate I could qualify for? I ask this because I went back to the dealership today, and of course the guy I dealt with is off today, so they referred me to someone else who said that
the amount of income doesn't affect the rate, that the rate is a "set" thing. This sounds suspicious to me. It seems to me, the lower the amount of income, the more risk in the financing, thus a higher rate. I feel I should have been given a lower rate and the way he "slipped it by me" is wrong. I feel like I've been had.
I know I should've gone over all of it before signing, but it still doesn't make it right.
Is there anything I can do?, or should I start counting the days till my 48 month lease is up. By the way, I love the SUV
My adjusted Cap. cost is - 22579.95, Res. - 11791.85, Dep. - 10788.10
My monthly payment is 363.66 on a 48 month lease.
I'm going back in Saturday to try to work something out.
Any help is greatly appreciated.
You do have an option or two though.
If you cannot make any changes to your lease agreement (my guess is that they won't let you). Find out what the payoff on the lease is. Then, you can look for financing elsewhere and just pay it off (then you own the CR-V). Obviously this isn't as optimum of a situation as just negotiating a purchase, but it would get you out of the lease.
Another option is swapalease.com. You can actually put it up there offering it to anyone who wants to take over the lease (where it will be transferred to whoever takes it over).
Obviously you wanted a CR-V, so the first option might be your best bet.
Sometimes these lessons cost us more money, but we learn and we don't make the same mistake twice. So, my suggestion is to be happy that you have the vehicle you wanted, try to find the least expensive option to continue driving it and chalk it up to gaining experience.
By the way, and you'll see the best ways of buying a vehicle when you read more in these forums, NEVER lay out your finances for the dealership and let them come up with a payment to fit your budget. Figure out what you can afford and negotiate the out the door price. If you let them, they'll take every last cent they can.
In response to your question about rates, people with higher FICO scores get better rates, and yes income to debt ratio does play into that score but it's only a part of the score.
From what I've read, the dealership gets cheap financing money from the manufacturer. They can then decide (unless it's a specific manufacturer rate that you know about) how much profit they want on top of that. So, say the dealership gets the money from the manufacturer at 1.9%, they aren't necessarily going to give you a loan for 1.9%, they may decide that they want 2% profit and your rate will be 3.9%. It's just another way that they make money on the deal.
We all make mistakes. Don't beat yourself up about it. Just try to fix it the best you can.
Greer
I actually did my homework before going into the dealer, but I originally
was going in to purchase a CR-V LX and wasn't prepared for a lease. My big mistake was, when they came out and I saw I could lease the EX for less than I could buy the LX, I jumped at it.
I can live with the payment if I can keep telling myself, "It's like I bought it and am going to trade it in in 4 years, of course I'm out the down payment. Yep, you live and learn. It's funny, I spent days and days trying to prepare myself for it, thinking to myself "They're not going to get me", and lo and behold, they got me.
Thanks again for the info and support.
Door Edge Guards
Wheel Well Guards
Pin Stripes
Mud Guards
Floor Mats (where applicable)
Wheel Locks (where applicable
The OTD price is $20,976.90
Here is the break down:
Base price(including freight charge, additional item) $19,679.00
Dealer processing fee $99.00
Tire Recycling fee $4.00
MD tax 5% $988.00
Title, Security, Registration, Temp Tag fees $186.00
Electronic registration fee $20.00
TOTAL ON THE ROAD PRICE $20,976.00
Hope this help you to make a decision
Acquisition fee is the first thing that comes to mind..
So, if you post all of the details of your deal, including full MSRP including destination, we can take a look at it...
regards,
kyfdx
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Ok, here it is. It's a '05 Honda CR-V EX AWD 2.4 4cyl. 5sp.Auto Nighthawk Black Pearl, no extra options.
MSRP - 23550 (Edmunds.com)
Invoice - 21753 (Edmunds.com)
TMV - 23391 (Edmunds.com)
Agreed upon value (my offer) - 22869
Gross Cap Cost (my offer + AHFC Acquisition fee - 595 + 35 dealer document service fee) - 23499
Cap Cost reduction (Down payment) - 919.05
Res value - 11791.85
Depreciation - 10788.10
RENT CHARGE - 5196.96
Total of base payments - 15985.06
Lease payments - 48
Base Monthly / Single Payment - 333.02
Monthly Sales/Use Tax - 30.64
The bottom line is that the "Rent Charge" is 5196.96
which translates to.00315 or 7.5%
That's where they got me. I'm paying 36.09 more a month
than I should be based on .00210 or 5.04%, which is where I would have been satisfied, and not feel ripped off, but it could even have been lower.
I know in the Seattle area Boeing Employees Credit Union has rates as low as 4.5%.
Anyway, I think this is all the info you'll need. It's pretty much everything on the lease agreement. I feel somewhat foolish not going over everything with a fine tooth comb, but it still doesn't make it right. The dealership (Lynnwood Honda) told me they take care of their customers as it's important to them to keep us as repeat customers. We'll see how much
Thanks again for your help
Also, where did you get the .0021 number for the money factor? I don't have the numbers, but the 48 month money factor is often higher than the corresponding 36 month factor..
I doubt you could get the lease deal changed, but you may be able to convert it to a purchase, instead..
In years past, AHFC did not allow dealers to mark up their money factor, but I think that has changed...
regards,
kyfdx
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to get the .0021, I basically took the % rate I should qualify for on edmunds.com (e-loan), which is 5.25% and Boeing Empoyees credit union has rates as low as 4.49%. Although I have not applied. I have excellent credit so I should be able to get that rate, and the .0021 translates to 5.04%. I would have been fine with a money factor as high as .0023, which is 5.52%, anywhere in there, but 7.5% or .00315 is ridiculous especially with my credit and I don't see anyone else even close to that rate. Is there a rate that is common in my scenario?
Thanks,
beenhadhonda
As some other users stated, go to the dealer and plead your case. Talk to the manager if that does not work. If they will not budge on the lease (and I am sure they will not), demand free maintenance (service) for the life of the lease. This will put a little money back in your pocket over time and make you feel better about your new car. If they will not budge, call Honda and complain and make sure you give them low scores on the new car survey. At the end of the day, just try to feel good about your new CRV...
I just purchased a SE... price includes a dealer installed dvd player (claimed msrp 1495)... I live in Upstate NY--purchased from Lia Honda in Albany... Here's the price breakdown:
Selling price: $24000 (includes destination charge)
8.25% tax: $1980
Tire disposal fee (was told this is required by law although no tires were being disposed of!) $12.50
Dealer "Processing" Fee: $45.00
NYS Inspection Fee: $10.00
Registration Fee: $100.00
Total Cost: $26147.50
Here's the story-- I hate car buying!!
I did my homework, knew what I wanted to pay, based on price report from CR magazine. Decided not to trade in 99 Civic, so didn't have the hassle of haggling over that aspect of the purchase. Test drove, and when we returned, salesman was busy with another customer. We hung around for a little while, basically ignored by the salesman and decided to go test drive Rav-4. We returned to the dealership, just wanting to get a price. Well, the salesman gave us a price of 22650, including the DVD promotion, which we agreed to and he okayed with his manager. Then, when he was preparing the paperwork, he realized he gave us a price on an EX instead of SE (although we made sure we had distinctly stated that we wanted SE). So we started the negotiating all over. Agreed upon 24000 (which is price I had in mind before entering dealer) including DVD after much haggling and claims from dealer that he was taking a loss but doing us a favor because of the botched first offer... anyway, he starts the paperwork, and salesman chooses a car that I didn't testdrive and doesn't have the dvd already installed (there were at least 2 on the lot), so I have to wait a couple of days to pick up... so I go to pick up, do the paperwork, pay the money and go to the car.... they didn't even bother to detail it!! It was all dusty except for where they removed the protective film on the hood!! When I pointed this out to the salesman, he just laughed and said that it would wash off while driving home in the rain! We just wanted to go, my husband said that he would detail it at home, no big deal for him. So yesterday (we picked up on Saturday) the weather was fine for detailing, and while he is doing so, he notices problems with the paint job (problems that couldn't be seen with the dust covering)... something about the laquer or clear coat, plus a few little scratches on the bumper... today he takes it back to the dealer and they have kept the car to try and "fix" the problem (something about applying "clay" and if that doesn't work, then they will have to re-paint! (clear coat!).... Did they sell me a car with known problems??? (chose to install dvd player on this one rather than one on the lot)... also, this car had 61 miles on it when I drove off the lot, is that unreasonable for a new car purchase??? I thought I had done my homework, thought I made a decent deal... but now , reading other's experiences and prices paid on this forum, I'm wondering if my sense of distrust and paranoia over this whole experience is justified, and if I've been wronged somehow??? I feel sooooo stupid if I've been taken for a fool when I thought I was being smart....
Thanks in advance for any insight!!!
Thank you for your input. Yeah I guess life could be worst. It's just the thought that I tried so hard to not get screwed and one slip and there you are. I plan on going in this Saturday. The guy I dealt with is off till then.
I'd like to thank all of you who replied to my message for your input and support. You've helped me more than you know.
I'll let you know how it turns out,
beenhadhonda
It looks to me like your price is fine.
A Honda '05 CR-V EX 2.4 4cyl 5spAuto AWD has a FMV
of 23,391 on edmunds.com, + or - ant regional adjustment and color.
But when you go in there, watch them like a hawk on the financing
and make sure you get the rate you deserve. They WILL crank up the
interest rate, thus increasing your price. Get your own financing if you can, or maybe you already have. If the dealer finances it, take your calculator.
beenhadhonda
Make sure that you know exactly what rate you can get elsewhere, so that if they come up with a high rate, you can say, "Hey I can get x.x% at my credit union (or wherever it may be) and I don't have to take your financing." They will back peddle in a hurry because if they get you into their financing they WILL make more money on the deal, which is fine as long as it is a lower rate than you can get anywhere else.
Another thing, and this is advice for everyone, don't be afraid to walk out of the dealership if things aren't going your way.
Most dealerships will change their tune in a hurry when threatened with losing a deal.
What's the worst that could happen? You have to deal with another dealership. If you know your numbers stick to them. Eventually, if they are realistic, you will find someone willing to sell you a car at that price.
One more thing. If you get a bad vibe from them, WALK. It's not worth the potential headaches in the future if there happens to be something initially wrong and they have to fix it..
Greer
First of all, congratulations. You got the CR-V for the price you had in mind AND it included a DVD player. That's great.
Secondly, yes, the dealership sounds like it could use some serious customer service lessons.
I personally would have pushed them on it when they tried telling me that the price they accidentally agreed to was actually for the EX. And then, if they wouldn't budge, I would have walked. But, that's all hind sight. Live and learn.
Did they ask you if you wanted to test drive the car before they had you sign the paperwork? When you realized they switched cars, you probably should have insisted. But, from what it sounds like, you are okay with the way it drives.
Yeah, you probably should have insisted that they clean up the car even though it was raining. That's just horrible customer service on their part.
Now for the more reassuring part. I, myself, had a few little things that needed to be done after I picked up my CR-V. There was some molding that was a bit scratched up and a couple of scuffs in my clear coat (that buffed right out). The dealership fixed it with little hassle and all was good. So, having a thing or two that needs correcting is not that uncommon.
The fact that there were 61 miles on the car doesn't necessarily mean that it was returned. In the grand scheme of things, that's not that many miles. I think when most dealerships get cars back, it's because financing fell though (not necessarily a mechanical issue), and when they do that there tends to be more mileage than that on them.
I wouldn't assume that you got a car with known problems (be optimistic). I would chalk it up to really BAD customer service.
So here is my advice: see what the dealership does to correct the problems. If it comes down to a new paint job, give them a seriously hard time about it. Tell them that you thought you were purchasing a CR-V with FACTORY paint and that this is unacceptable. Calmly ask to talk to the manager (yes, the manager of the ENTIRE dealership or even the owner) and explain to him the myriad of problems you've encountered with his dealership. Then, tell him that you are not happy, and you have not gotten what was promised. If he doesn't t offer anything acceptable in terms of compensation, tell him that he should accomodate your needs.
When he asks what you want, tell him that you're not happy with the car and that you would like a different one (this is a long shot, but might work, and at least shows him the magnitude of your dissatisfaction). Then go from there.
Hopefully, they'll just get the clear coat issue solved quickly and without much hassle so it doesn't come to what I've just written. But, if not, don't be afraid to stand your ground.
And please, please find a different dealership for you maintenance work (if you are going to have the dealership do it). You don't need more headaches, and they have demonstrated that they don't care much about customer service.
I hope this horribly long winded reply helps.
Greer
So, comparing it to a purchase APR might help you make the decision to buy or lease, but it won't tell you if the dealer tried to mark-up the rate or not..
As I stated before, many times the 48 month money factors are higher than the 36 month factors.. If you really want to know the base rate, go ask Car_man on the Lease Questions board. Until you know the base rate, you won't know if they marked it up..
regards,
kyfdx
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