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2013 and earlier-Acura MDX Lease Questions
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Car_man
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Thank you!
2007 MDX Tech with the following options
1- Auto Day night Mirror
2- Cargo Corver
3- Wood Grain Steering
4- Wood Grain knob
5- Body Side Mounting
6- Roof Rail
7- Cross Bars
8- Side Steps (Chrome)
9- Pro Pack
10- Wind Reflector
Out of pocket $4000 which includes the following:
A- Destination Fees $670 ( I am not sure if this is included in the monthly payment or the $4000 out of pocket)
1- Bank fees - $595
2- Motor Vehicke (4 years) - $374
3- Doc fee - $197
4- NJ Tire Tax 7.50
5- First Payment - $629
Lease 15k miles/year for 48 months and buy end lease = $20320
Is that a good deal.. Please reply... I need to make a decision... You help will be greatly appreciated....
any truth to this?
thx
joe
2007 MDX Tech/Sport - $44K
2007 Hyundai Veracruz Limited - $34K
Car_man
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For now I can tell you that $4,000 is too much to pay at lease signing. I always advise consumers against making large down payments on leases. Those who make them risk losing part or all of them if their vehicle is totaled in an accident or stolen and never recovered. There's nothing wrong with paying things like the security deposit, first month's payment, and acquisition fee at signing but you really should pay a cap cost reduction.
Car_man
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Car_man
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Do you have the lease numbers for June yet?
-24/36 months
-15K/18K miles
Thanks much,
Bo
I really need a good deal on a MDX tech ent. MSRP 46,365.
I drive 25-30k a year. What is the best lease payment I can get? Is the 4000 CCR still available? What is the RV on the high mileage leases? Terms of 36-42... What are the up front fees? Thank you in advance for your help.
I was quoted 642/month for tech/rear ent at 12,000 miles / year, with 1500 down. This is including the tax in my state (6%).
Is this a good deal? Any chance of me getting 600/month anywhere?
And a quick question: when I do the calculations myself using the edmonds leasing page, do I include the destination fee in all of my calculations? Or do I just add it on at the end?
THANKS!!
Yes, include the destination fee. I find the lease calculator to be tricky occasionally - giving me values I know aren't right, for no reason (for example, changing miles driven from 12k to 15k sometimes changes the payment - since I'm already putting in the correct residual there's no reason for this). The calculator also seems to assume you'll roll tags and title into the lease - this can certainly be done but most often those items are paid upfront.
I think it's safer and, ultimately, less confusing to use the standard formula:
(Cap Cost – Residual Value) / Term = Depreciation
(Cap Cost + Residual Value) X Money Factor = Interest
Depreciation + Interest = Base Monthly Payment (add sales tax to get total monthly payment)
I always include the lease acquisition fee in the cap cost - there's no reason to pay this upfront on a low-rate lease. For an AHFC lease it's $595. So "Cap Cost" is the selling price* (incl. destination) plus the acquisition fee. Again, on a low-rate lease there's no reason to make an upfront down payment or "cap cost reduction". Your upfront $$ should be tags, title, dealer document fees and your first month's payment.
*Remember to negotiate selling price just as if you were buying the vehicle! This is the secret to a good lease deal on an Acura or Honda: negotiate a good selling price - then, since the residual and money factor are set by AHFC the rest of the numbers will fall right into place.
I don't have the latest info, but these were the 36 and 48 month residuals and money factors in effect last month for a 12k mi/yr lease:
36 Month – Residual 56% of MSRP – .00270 Base Rate
48 Month – Residual 46% of MSRP – .00245 Base Rate
Your dealer should give you the numbers - you don't have to take his word re "the best deal". He gives you the numbers from AHFC - you decide what works for you. As per my previous post: these numbers are set by American Honda Finance Corp. - your opportunity to get the best deal lies in negotiating the lowest possible selling price for the vehicle.
Formal Black/Ebony/Tech/Entertainment
42 month, 12,000 miles per year
$ 1,500 in "drive off" fees
Monthly: $ 622 (including my 6.0 % state sales tax).
ALSO: I am turning in my 2004 TL (Anthracite/Quartz/Navi) with 53,000 miles. On that vehicle, the residual value is $ 19,007.25. The dealer feels it is worth $ 20,579.58. That gives me $ 1,572.33 in equity. This amount is going towards what I pay every month (and that's why I think my monthly number is pretty good).
AM I CORRECT? Deal or no deal?
(also: 50% residual value, .00245 money factor)
THANKS!!!
1) What is the selling price of the MDX? On the lease agreement this is called "agreed upon value of the vehicle". If the selling price is a competitive one in your market area, that's an excellent first step.
2) The $20, 579.58 is the amount the dealer is allowing for your "trade-in". If, in your opinion, this is a fair wholesale value for your used TL then that's an excellent second step.
As you can see, these are exactly the numbers that are critical if you're buying a car - and they determne whether it's a "good deal" or not.
AHFC sets the residual and money factor - so it's the "selling price" and "trade-in" that are negotiable. If those numbers are competitive in your market area, you've got a good deal. If not, it's back to the bargaining table!
2007 Acura MDX Tech / Entertainment / Formal Black /Ebony
42 month / 12,000 miles per year
1. MSRP (with destination) = $ 46,365
2. Residual value = 50% of above = $ 23,182.50
3. Gross cap cost (with destination) = $ 42,345
4. Residual value on 2004 TL Navi / Anthracite / Quartz = $ 19,007.25
5. Value of TL (per the dealer) = $ 20,579.58
6. Cap cost reduction (difference between 4. and 5. above)= $ 1,572.33
7. Net cap cost (difference between 6. and 3. above) = $ 40,772.67
8. Net cap cost minus residual value (difference between 7. and 2. above) = $ 17,590.17
9. Value of 8. above divided by 42 months depreciation = $ 418.81 / month
10. Net cap cost plus residual value (7. plus 2. above) = $ 63,955.17
11. Value of 10 above. times money factor of 0.00245 = $ 156.69 / month
12. Monthly depreciation plus monthly money factor component (9. plus 11. above) = $ 575.50
13. State tax (6.0 %) on 12. above = $ 34,53 / month
14. 12. above plus 13. above = $ 610.03 /month
So after I run the calcs, I am not sure why
the dealer says my monthly is $ 622 / month.
Also, I think that 250 over sticker is pretty good, right?
Thanks!
Can you break down the "drive off" amount? I assume the lease acquisition fee is in there, and I'd like to see what else.
I don't really know the MDX market in terms of selling price (I'm pretty up to date on TSX's) - that's what this forum and the Prices Paid forum are for, eh? One of the reasons to get the breakdown of the upfront drive off $$ is to see whether the dealer is making up for a low selling price by adding inflated "dealer fees".
1. I need to check with him if my calcs for the net cap cost is the same as what he is thinking is the "Adjusted Cap Cost." I will have to check.
2. I do not know what makes up the "drive off fees" of $1500. He didn't give me the breakdown (I should have asked!) I know from another dealer it is made up:
1. the monthly payment
2. Aquisition fee (is that always $ 595?)
3. Dealer conveyance
4. State registration
5. Tax
The part that I don't understand (more of my perceived voo-doo of leasing) is that I told him I wanted to put 1500 down. That number stayed the same during our negotiations. How can he keep it arbitrarily the same?
Thanks!
One of the pitfalls in leasing - the dealer wants the customer to focus on monthly payment and down payment. Gives him lotsa room to play with the numbers. It's why "selling price" is so important for the customer to zero in on; and then understanding every single number on the lease agreement, including the break out of any upfront $$.
The advice of experts is to put very little money upfront in a lease. If your car is lost or stolen your insurance company is obligated to pay AHFC the balance of the payoff - but you may never recover your upfront $$. I strongly recommend the acquisition fee be rolled into the lease (in other words, added to the cap cost). So you should be paying tags, title, legitimate dealer document fees, and first month's payment upfront - that's all.
It could be argued that at the fairly high money rate currently for an MDX lease (unlike the low money rates on a TSX or Honda Accord) it doesn't make sense to pay 5.88% interest on any more than you have to - so the acquisition fee and down payment upfront would be OK. But you can invest that upfront money safely in the bank at about 5%, so I'd still argue in favor of minimizing your upfront $$. Technically, you could roll everthing into the lease and literally have a $0 drive-off. For simplicity's sake - and to make it easy for you to double-check the dealer's numbers before you sign the lease agreement - I prefer TTL, doc fees and first month's payment upfront.
Thanks.
David McDavid-Plano $810
Goodson Acura $822
Vandergriff Acura $740
I went w/Vandergriff Acura as I could get no one to budge below the $740 dollars. I placed $900 down. Did I get hammered? Bad time of year or what. Seems after reading forum I should have gotten a lot better deal. My credit score was 731.
Your thoughts car-man?
Thanks
I'm looking for residual/money factor for MDX Sport trim:
-36 months
-18K miles
Trying to get in under vthe July 1 deadline...
Bo
i'm looking for an MDX as well. What was the MSRP and the cap final price on the vehicle?
Car-man is gonna be asking for the same info to determine whether you got a a good deal or not.
I'm keenly interested (and thus await car-man's answer) and will be making a bee line in a couple of weeks as well, to the acura dealerships. already had a little conversation and I've been quoted 43,439 for a tech/ent MDX. dont know if thats a good offer though?
anyone?
When you lease an MDX through AHFC, are the costs of options (eg. roof racks, roof rails, Acura MusicLink) included in the total price (and hence capitalized)?
In other words, if I have $3600 in options on an MDX, will I end up paying a portion of that $3600 over the life of the lease, or will I end up paying the entire amount?
Put another way, do options increase the residual value of the car?
If the answer is "sometimes," then does anyone know which options DO increase the residual value, and which don't?
Thanks in advance!
Thanks!
That said, can I just get to the bottom line and ask whether the deal I was recently offered was any good?
Lease is 42 months, 10k miles for tech and entertainment packages. All costs are rolled into payment (only first month's payment and vehicle registration fee paid up front). Basic lease price is $692/month. If I add Roof rails, roof cross bars, body side moldings and sport side steps (about $1,600 list worth of dealer extras), they offered a price of $730/month. Is this in the ballpark? High? Low?
When you add options to your vehicle in any lease, you increase the MSRP of the vehicle; residual value is calculated as a percentage of MSRP. Thus, to answer your question, you'd only be paying for a portion of your options package during your lease, as those options have increased the value of the vehicle even at lease expiration.
This is true for all options except for dealer installed accessories, which are not necessarily included in the MSRP.
-Josh
Thanks for your response; I guess the primary question I have, then relates to "dealer installed accessories."
With the MDX, there are a LOT of those: Roof rails, roof rack, MusicLink, backup-sensors, and on and on. None of those is included in the sticker price...so the question I have is this:
If I am leasing the MDX and I want these accessories, will Honda Finance stick me with the ENTIRE cost of these items over the course of the lease? I was specifically told that was not the case, but then when I was in front of the F&I woman and looked at the lease, it was an entirely different story.
Thanks!
Car_man
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15,000 miles per year is the highest mileage allowance that Honda Finance publishes residual values for. If you need to drive more than this, you will have to purchase additional miles on a per-mile basis. It is less expensive to do so at lease signing than it is to wait until the scheduled end of your lease and have to pay an excess mileage penalty. I'm not sure exactly how much Honda Finance charges per mile purchased at signing, but any dealer should be able to tell you.
Car_man
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You never mentioned the selling price or MSRP of the MDX 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 this truck's selling price 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 would be more than happy to give you my opinion of this deal if you let me know what these numbers are.
Your vehicle's destination fee would be included in its MSRP and selling price when calculating its lease payment.
Car_man
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I would be happy to give you my opinion of this deal if you tell me the MSRP and selling price of the exact model that you are interested in.
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