Negotiating Money Factor 2016 EX-L

eastside1

Hi -
I've just locked in the buyer order for a 2016 CR-V EX-L. We got a couple thousand off the MSRP for price. They are getting the right color from another dealer. Now we are telling them we want to lease. We have exceptional credit -- in the 750-800 range. Anyone recommend how to negotiate the money factor? What should we look out for? What's a good money factor? It would be a 36 month lease, 12,000 miles. Thanks in advance!

kyfdx

eastside1 said:

Hi -
I've just locked in the buyer order for a 2016 CR-V EX-L. We got a couple thousand off the MSRP for price. They are getting the right color from another dealer. Now we are telling them we want to lease. We have exceptional credit -- in the 750-800 range. Anyone recommend how to negotiate the money factor? What should we look out for? What's a good money factor? It would be a 36 month lease, 12,000 miles. Thanks in advance!

We never hear of Honda dealers marking up the Honda Finance money factor. I'm not even sure they are allowed to do it.

The CR-V money factor is .00080 or .00120, depending on which state you live in.
The residual for 36/12 is 62%.

eastside1

Ok. Thanks. We're in New York. Doesn't good credit affect the moneyfactor? I've heard they sometimes try to pad the moneyfactor.

Michaell

eastside1 said:

Ok. Thanks. We're in New York. Doesn't good credit affect the moneyfactor? I've heard they sometimes try to pad the moneyfactor.

Some brands allow the dealers to mark up the MF; we don't believe Honda is one of them.

The MF we quote is for top tier credit; if the credit score is lower, there is often an increase of the MF.

barb2011

Thanks for all your fine advice.
I could use some of it. Been negotiating back and forth with three dealers.

Offer one: (has color I want)
2016 Honda CR-V EX-L AWD (in stock only)
$0 down
36 months
15k miles per year
$339 per month
(No mention yet of final price...msrp of 30,645)
________________________________________________________________________________
Offer two: (does not have color, but offered to get it, presumably from 1)
2016 Honda CR-V EX-L with Navigation AWD
MSRP:---------------------------------$31,995.00​
Discount:--------------------$3,032.00
Your Price:----------------------------$28,963.00** Price does not include tx, title,doc

If you were to Finance the vehicle for 60 months with $4,000 down your monthly payment would be $480.00 per​ month
Residual: - $18,556.10​

Lease option : - - - 15,000 miles per year / 36 months / $4,000 down = $271.00 with Tax/Fee's included​
Lease option on the 2016 Honda CR-V Touring :​
15,000 miles per year / 36 months / $4,000 down = $311 per month with Tax/Fee's included​
Residual: - $19,548.15​

Money Factor : .00080 (Same on Both)​
_____________________________________________________
Third offer: $30,645 with $2,953 discount, for a price of: $27,962
No lease offer produced yet.

SO, I get the 'no down' principle. Where do I start to thin out the offers? I'm curious if they have the same MF for OHIO and what that is. And the RV as well. Thank you for this helpful service.

kyfdx

barb2011 said:

Thanks for all your fine advice.
I could use some of it. Been negotiating back and forth with three dealers.

Offer one: (has color I want)
2016 Honda CR-V EX-L AWD (in stock only)
$0 down
36 months
15k miles per year
$339 per month
(No mention yet of final price...msrp of 30,645)
________________________________________________________________________________
Offer two: (does not have color, but offered to get it, presumably from 1)
2016 Honda CR-V EX-L with Navigation AWD
MSRP:---------------------------------$31,995.00​
Discount:--------------------$3,032.00
Your Price:----------------------------$28,963.00** Price does not include tx, title,doc

If you were to Finance the vehicle for 60 months with $4,000 down your monthly payment would be $480.00 per​ month
Residual: - $18,556.10​

Lease option : - - - 15,000 miles per year / 36 months / $4,000 down = $271.00 with Tax/Fee's included​
Lease option on the 2016 Honda CR-V Touring :​
15,000 miles per year / 36 months / $4,000 down = $311 per month with Tax/Fee's included​
Residual: - $19,548.15​

Money Factor : .00080 (Same on Both)​
_____________________________________________________
Third offer: $30,645 with $2,953 discount, for a price of: $27,962
No lease offer produced yet.

SO, I get the 'no down' principle. Where do I start to thin out the offers? I'm curious if they have the same MF for OHIO and what that is. And the RV as well. Thank you for this helpful service.

With Honda Finance, the money factor is dependent on the state of registration, not dealer location. So, the only state that matters is where you live. Ohio MF is .00080. Residual percentages do not change, state to state.

barb2011

Very odd. I was just down to some heavy numbers at a local dealer and he quoted MF as .0007 . That said we talked and talked about the real price and then I showed him the Edmonds price that his own dealership had sent me with the "bar code" - and his face went blank. It was significantly lower on price than what he had just offered me.
Bottom line, I would like an exl-nav possibly on a lease, possibly right out sale. Deal is EX-l, nav from stock is $28,913; and if they have to go to another dealer a "search" fee $29,306.
On the paper work the MF is .0007 on regular EXL and 60 % and on the NAV EXL, 58% res with .0008. It's Ohio and the city/state combined tax is 7.25 percent.
His monthly with 15k and NO DOWN seemed all over the place... but aiming at 400. Frankly, when we finally had the Edmonds price, we didn't get back to the "per month" ...So what would be reasonable?

kyfdx

barb2011 said:

Very odd. I was just down to some heavy numbers at a local dealer and he quoted MF as .0007 . That said we talked and talked about the real price and then I showed him the Edmonds price that his own dealership had sent me with the "bar code" - and his face went blank. It was significantly lower on price than what he had just offered me.
Bottom line, I would like an exl-nav possibly on a lease, possibly right out sale. Deal is EX-l, nav from stock is $28,913; and if they have to go to another dealer a "search" fee $29,306.
On the paper work the MF is .0007 on regular EXL and 60 % and on the NAV EXL, 58% res with .0008. It's Ohio and the city/state combined tax is 7.25 percent.
His monthly with 15k and NO DOWN seemed all over the place... but aiming at 400. Frankly, when we finally had the Edmonds price, we didn't get back to the "per month" ...So what would be reasonable?

Assume $595 acquisition fee, $250 doc fee, $200 title/registration, $930 for tax.
Add that to $28,913, and the CAP cost is $30,888.

.00080 MF and 58% residual. $31,995 MSRP

$382/mo.

Michaell

kyfdx said:

barb2011 said:

Very odd. I was just down to some heavy numbers at a local dealer and he quoted MF as .0007 . That said we talked and talked about the real price and then I showed him the Edmonds price that his own dealership had sent me with the "bar code" - and his face went blank. It was significantly lower on price than what he had just offered me.
Bottom line, I would like an exl-nav possibly on a lease, possibly right out sale. Deal is EX-l, nav from stock is $28,913; and if they have to go to another dealer a "search" fee $29,306.
On the paper work the MF is .0007 on regular EXL and 60 % and on the NAV EXL, 58% res with .0008. It's Ohio and the city/state combined tax is 7.25 percent.
His monthly with 15k and NO DOWN seemed all over the place... but aiming at 400. Frankly, when we finally had the Edmonds price, we didn't get back to the "per month" ...So what would be reasonable?

Assume $595 acquisition fee, $250 doc fee, $200 title/registration, $930 for tax.
Add that to $28,913, and the CAP cost is $30,888.

.00080 MF and 58% residual. $31,995 MSRP

$382/mo.

I'm wondering if the .00070 MF is a discounted MF for a "sign and drive" lease, where all the fees are added into the cap cost and the dealer makes the first payment.

eastside1

Can we confirm the MF in New York State for exceptional credit is 0.0008? Less? More?

Michaell

eastside1 said:

Can we confirm the MF in New York State for exceptional credit is 0.0008? Less? More?

Consider it confirmed.

eastside1

eastside1

I asked because a confidant dealing with Chrysler leases mentioned 0.00020

Michaell

eastside1 said:

I asked because a confidant dealing with Chrysler leases mentioned 0.00020

Nope, .00080 for CR-V in NY.

eastside1

Great. Final question: is there any other effect on the lease other than the residual amount of we select 10k rather than 12k miles? And what would be the residual for 10k on a Crv EX-L?

Michaell

eastside1 said:

Great. Final question: is there any other effect on the lease other than the residual amount of we select 10k rather than 12k miles? And what would be the residual for 10k on a Crv EX-L?

Honda does not offer a 10K lease option.

If it existed, the residual would be 1% higher than for 12K.

eastside1

They are offering 10, 12 or 15k

Michaell

eastside1 said:

They are offering 10, 12 or 15k

Are you in the greater NYC area? That's the only place we've heard of where Honda Finance allows 10K leases.

eastside1

Yes. NYC. The lease bank is HVT

Michaell

eastside1 said:

Yes. NYC. The lease bank is HVT

HVT? Not heard of them.

Honda Financial Services (HFS) is the "official" manufacturer bank.

eastside1

HVT, Inc in Holyoke, MA

Michaell

eastside1 said:

HVT, Inc in Holyoke, MA

Hmm. I'm not a big fan of 3rd party leases. While the numbers may look good up front, there is the real possibility of some bigger than expected end of lease charges. Any reason why the dealer isn't using Honda Finance?

eastside1

I think it is Honda Finance: http://www.hondafinancialservices.com/leasing/purchase-your-lease. " Notice is hereby given that Honda Lease Trust has assigned all of its rights (but not obligations) to purchase and/or sell this vehicle to Honda Finance Exchange, Inc. pursuant to the Sub-Servicing and Master Exchange Agreement. Notice for New York and Virginia residents: The Trust designation is HVT, Inc., as Trustee for Honda Lease Trust. Honda Financial Services is a dba of American Honda Finance Corporation (AHFC), servicer for Honda Lease Trust."

Michaell

eastside1 said:

I think it is Honda Finance: http://www.hondafinancialservices.com/leasing/purchase-your-lease. " Notice is hereby given that Honda Lease Trust has assigned all of its rights (but not obligations) to purchase and/or sell this vehicle to Honda Finance Exchange, Inc. pursuant to the Sub-Servicing and Master Exchange Agreement. Notice for New York and Virginia residents: The Trust designation is HVT, Inc., as Trustee for Honda Lease Trust. Honda Financial Services is a dba of American Honda Finance Corporation (AHFC), servicer for Honda Lease Trust."

Ah, OK. I get it now. Yep, Honda Finance lease.

eastside1

anyone recommend excess wear-and-tear insurance when leasing a honda or otherwise?

Michaell

eastside1 said:

anyone recommend excess wear-and-tear insurance when leasing a honda or otherwise?

 Nope. It's a good deal… For the dealer