2013 and earlier-Acura MDX Lease Questions

CarMan@Edmunds

Greetings suzintn. It is difficult to predict what automakers will do with their future incentives. However, if I had to make an educated guess I would say that Acura's lease program, i.e. its money factor and residual value, for the 2006 MDX will not get any better than they are now. As the model year progresses most manufacturers begin to phase out their lease support on models. This is because vehicles' residuals gradually fall as the model year progresses. At the end of the model year it gets to the point that it is too expensive for manufacturers to provide enough lease support on models to give them attractive lease payments. When this happens manufacturers replace their special lease programs with dealer cash. This has already started to happen on the MDX. For July, Acura reduced its lease money factor support on it but introduced $2,500 dealer cash that is compatible with Honda Finance leases. Only time will tell for certain what Acura's August lease program will be like, but I suspect that its money factors and residual values for this truck are not going to be any better than they are right now.

Car_man
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suzintn

MDX TOURING IN TENNESSEE:

MSRP 40565.00
DEAL ADJ -6348.00
CAP COST 34217.00
DEALER OPTIONS 399.50
CAP REDUCTION 2938.44
RESIDUAL - 55% = 22310.75
ADVANCE PMTS - 1
FEES - 16.50
ACQUISITION - 595.00
USAGE TAX - 7%
SALES TAX - 4%
MRF - 2.25

DOES THE ABOVE SHOW MY 3500.00 OUT OF POCKET? PAYMENT IS $427.52...SOUND RIGHT?

avatexrs1

There is some kind of tax savings program going in Texas.

I picked up a Base MDX today. Dealer said I was under a special program and would be charged only 1.2% versus 6.25% sales tax, which in Texas should be on the entire sales price. Now I deal with sophisticated financial documents all day long in my profession. But I don't think Warren Buffett could understand the way dealer came to its numbers. All I care about is the bottom line:

$151 down plus first months payment
$449/month lease payment (including taxes)
12,000 miles/year
55% residual
No security deposit
No acquisition fee

The negotiated price of the car was invoice minus $2,400. Sheet showed $473 in taxes and title fees. I have no idea what the $473 and $151 amounts are based on, but I really don't care.

Dealer also bought my trade-in for a price in between the Edmunds and KBB amounts.

asugirl97

I understand credit score has a lot to do with available leases...anyone attempt a lease with a not so hot credit score?

rayjay2

I leased an '06 MDX Touring with Navigation today at Elk Grove Acura near Sacramento,CA.
$36,300,$1,000 down,12,000,miles,36 mo.
$349.00 per mo.including tax.
Turned in an '02 MDX Touring w/Nav.
The new MDX handles better,is more reponsive,more comfortable and much quieter.
Much improved over earlier models.
A great ride.
Ray

suzintn

RayJay2 how much down?

rayjay2

$1,000 down.That includes 1st month payment,registration,some misc.fees and taxes...totalling $1,000.
A really good deal.
Ray

dbanker

Hey Car_man. Thanks for all the useful posts. Leasing will never be complicated again. I will be leasing a 2006 MDX Touring in the NYC area, 12,000 miles, 36 months. It looks like the $2500 dealer cash will remain in effect until September 5, 2006, as well as the 2.9% APR financing for purchasers. Can you confirm what Honda Financial is using for the money factor in August (in July, lessors were not afforded the more favorable money factor of .00012 based on the 2.9% APR, and instead were stuck with .00225 based on 5.9% APR)? Has this changed? Also are you aware whether the residual remains at 54%? Here is what I have negotiated in July, and I am pretty confident I won't do any better unless the money factor became more favorable in August, or unless I can convince a dealer to sacrifice some of their holdback (unlikely):

Sales Price - $36,002 (invoice);
Destination Fee - $615;
Acquisition Fee $595;
$75 - Title/License;
$1590.60 Tax;
Less $2,500 Customer Cash;
Residual - $21,573 (54%);
Money Factor - .00225;
No Money Down/No Security Deposit (Just First Months Payment);

MONTHLY LEASE PAYMENT - $531

Am I missing anything, or is this as good as it gets? Thanks.

suzintn

Ray this is impossible numbers wise. You must have traded yoru old MDX and put 1K down. Lease money factor based on your numbers on MDX touring w/nav would be a 499 payment not 399. Is it a typo maybe?

suzintn

Hi Car_Man. Do you know what the money factor is for August? Thanks

suzintn

In October a newly designed MDX and RDX come on the market. I have seen pics of both and they are NOT attractive. Should we wait on buying the old '06 body style until they come out for a better deal?

rayjay2

Hi Suzintn
I didn't have anything to trade in.I returned an '02 MDX for lease termination.I received no value or consideration for the '02.
I negotiated over the internet with several Acura dealers.Elk Grove Acura responded with the numbers I accepted.Leasing price of '06 MDX Touring with Nav was $36,310.12,000 miles year,36 month lease.$1,000 down for 1st months payment,registration,etc.$546 mo. including tax.That was the complete deal and,as I said,a good deal.
Regards,Ray jacobs

sonny_k9

Ray,

Your earlier message said you were considering a $571/mo. deal. How did you negotiate it down to $349????

Link to your original post
rayjay2, "Acura MDX: Lease Questions" #350, 24 Jul 2006 7:56 pm

This deal sounds too good to be true for a MDX with nav.

rayjay2

I dont' know where the $349 came from.If I posted that number some where it was a typo.My fumble fingers.
The $571 figure came from the dealer when I included accessories such as Side Steps,All Season Mats,Cargo Tray and Wheel Locks.I opted to pay cash for the side steps and locks and recycled my old mats and tray.That made the difference.
My wife corrected me.We are now paying $549 mo.including tax for the '06 MDX Touring w/Nav.
Ray

krishnam

Hi car_man,

Can you please post the money factor for August. A dealer has quoted me .00293

Thanks

CarMan@Edmunds

Hi suzintn. $3,500 is way too much money to put down when leasing. Consumers can and should lease any vehicle that they are interested in without making any sort of capitalized cost reduction. I always advise community members against making down payments on leased vehicles because if their vehicle is totaled in an accident or stolen and never recovered their down payment essentially disappears. All you really have to pay at signing to lease an Acura MDX are your truck's first month's payment, a security deposit equivalent to that payment rounded up to the nearest $25 increment, Honda Finance's $595 acquisition fee, and any required state taxes or fees.

Now that I've shared my thoughts on down payments, let's take a look at this specific deal. The MSRP of the truck that you are interested in, an '06 Acura MDX Touring without navigation or DVD, is $40,565. This truck's dealer invoice price is $36,617 and Acura is currently providing $2,500 dealer cash on it. When the spread between this truck's full MSRP and dealer invoice and the dealer cash are taken into account this truck has a margin of around $6,448. You are being given a discount of $6,348 which essentially is $100 over dealer invoice. This is a very good deal. Unfortunately for the money of August, this truck's buy rate lease money factor for 36 month leases increased to .00283. Using this money factor, a 54% residual value, and the aforementioned prices, I estimate that this truck's zero down, pre-tax monthly payment should be around $501.

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CarMan@Edmunds

Hi Honda Finance, Acura's captive finance company, leases to consumers who have less then perfect credit. It has different credit tiers for consumers depending upon what their scores are. To qualify for Honda Finance's top credit tier aka its "Super Preferred" tier consumers need to have a credit score of between 899 and 710. Its next tier down is called its "Preferred" tier. It is for consumers with credit scores of 709 to 660. Its third tier is called "Standard" and it is for consumers with scores of 659 to 610. Its bottom tier is called "Select." It is for consumers with credit scores of 609 and below. It am not sure of what the lowest score that Honda Finance will allow to lease is though. The lower the credit tier you qualify for, the higher your vehicle's money factor will be, and the higher your vehicle's monthly payment will be.

This is basically how leasing an Acura works for consumers with less than perfect credit. Let me know if you have any other questions and I'll gladly try to answer them for you.

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CarMan@Edmunds

You're very welcome, dbanker. I'm glad that you've found my posts helpful. Unfortunately, Honda Finance's August lease money factors for the 2006 MDX are worse in August than they were in July. Acura is no longer providing money factor support on this truck. As a result, if you were to lease one through Honda Finance right now, you would have to use its standard lease program. Its standard buy rate lease money factor for 36 months for consumers who pay a security deposit and qualify for its "Super Preferred" credit tier is .00283. Honda Finance's 36 month, 12,000 mile per year residual value for an '06 MDX Touring without navigation or the entertainment system is still 54%. If you are able to get this truck for dealer invoice minus the $2,500 dealer cash that is available on it you are getting a very good deal.

Car_man
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CarMan@Edmunds

Hi suzintn. Acura is no longer providing lease money factor support on the 2006 MDX. As a result, if you were to lease one through Honda Finance this month, you would have to use its standard lease money factors. Honda Finance's current buy rate standard lease money factor for 36 month leases is .00283 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@Edmunds

Hi suzintn. There is a big difference between buying and leasing vehicles. It may indeed be possible to get a more attractive deal on a 2006 MDX by waiting until the 2007 MDX and RDX have arrived at dealers to purchase one. However, generally speaking this late in the model year the longer you want to lease the more expensive a vehicle becomes. This is because vehicles' residual values, the number that is used to calculate the depreciation portion of your vehicle's lease payment, gradually fall as the model year progresses. By the end of the model year vehicles residuals usually fall so low that they actually become more expensive to lease, even if there is a significant amount of dealer cash on them and dealers are discounting the heck out of them. So the bottom line is, if you want to lease, the sooner you get your MDX the better. If you want to finance or pay cash for it, it doesn't hurt to wait.

Car_man
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CarMan@Edmunds

Hi krishnam. Honda Finance's money factors for the 2006 MDX vary depending upon how long one leases it for. Its current buy rate lease money factor for 36 months for consumers who qualify for its "Super Preferred" credit tier and pay a security deposit at lease signing is .00283. Honda Finance will waive its security deposit requirement in exchange for an increase of .00010 in your vehicle's money factor. When negotiating your deal on this truck, don't forget to take the $2,500 dealer cash that Acura is currently providing on it into account. This cash will help you to negotiate an attractive capitalized cost.

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scmetal

Car_man,

I have seen a few posts stating that the residual for Base 06 MDX is 54%. Is it the same residual for MDX w/Nav and DVD?

udhawan

Car_man,

I am getting the following deal on the Acura MDX with Nav and DVD: Cap cost is 38,107; Residual 52%; money factor 0.00299; 36 month term. I am putting down $1,533 of tax (based on 7.375%), $133.5 for motor vehicle registration and the first month's rental o f$564.9.

Is this a good deal?

bluebrian

Car_man-

Can you please give me an update on the latest and greatest money factors and residuals on a 2006 Acura MDX w/Nav and Entertainment systems assuming 36 or 48 months, 15k miles/year. I'm in Northern CA if that matters.

Thanks,
Brian

bluebrian

Car_man-

Can you please give me an update on the latest and greatest money factors and residuals on a 2006 Acura MDX w/Nav and Entertainment systems assuming 36 or 48 months, 15k miles/year. I'm in Northern CA if that matters.

Thanks,
Brian

pk15

Car_man -

Awesome website. Thank you very much for being on the consumers side, and making it a lot easier to understand.

Here's my dilemma:
I have an '04 MDX where the lease is not up until next year (Nov '07). I need to get a new ('06) MDX by the end of Sept '06 (we get a car allowance from work if we turn over our Acura every 3 years). Currently the payoff is about $27K.

I'm pretty sure we'll be able to get a good deal with the '07 model change, and Acura wanting to blow out the '06 models, however we would like to lease it.

As far as what kind of deal we can get, it looks like we'll get something like this:

'06 MDX AT Touring, Navi, OnStar,
Dealer Net $39,097.18,
Dealer Contribution $2500,
Net Cap Cost $35,276.35,
MSRP 43,315,
RV% (10K/yr.) 54%,
Money factor .00293,
Base payment $499.00,
Amount due at signing: $2,999
(Did I miss anything?)

So here's my question.
I'm not sure if it would be better for me to purchase the car now, and sell it off to a private party - or if I try to give it back to the dealer, I'm afraid I'll be too "upside down" on the car that they will want additional money to take it back.

In addition, the deal on the MDX above is through a connection at the corporate office. I'm not sure how willing the dealership is going to be with my current MDX. Obviously in the best of worlds I'd like for my current car to cover that $3000 that would be due upon signing, however I know that's probably not going to happen.

Any thoughts or recommendations?
THANK YOU
pk15

CarMan@Edmunds

Unfortunately, scmetal, the options that you mentioned bring down this truck's residual values. Honda Finance's current residual value for a 36 month, 15,000 mile per year lease of a 2006 MDX with Navigation and DVD is 47%, versus a residual value of 51% for an otherwise identical lease of a base '06 model.

Car_man
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CarMan@Edmunds

Hi udhawan. Honda Finance's current 36 month buy rate lease money factor for the 2006 MDX is only .00283 for consumers who qualify for its top credit tier and pay a security deposit at lease signing. With the waiver of the security deposit requirement, this vehicle's money factor would be .00010 higher. If your credit is in good shape, make sure that this is the money factor that is used to calculate your MDX's monthly payment. Also, make sure to take the $2,500 dealer cash that is currently available on it into account when negotiating its capitalized cost.

Car_man
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CarMan@Edmunds

Here you go, Brian. Honda Finance's current buy rate lease money factor and residual value for a 36 month, 15,000 mile per year lease of a 2006 MDX Touring with Navigation and DVD are .00283 and 47%, respectively for consumers who qualify for its "Super Preferred" credit tier and pay a security deposit at lease signing. As I mentioned in my earlier post, make sure to take the $2,500 dealer cash that is currently available on this model into account when negotiating its capitalized cost.

Car_man
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CarMan@Edmunds

You're very welcome, pk15. I'm glad that you like this site so much. Normally I would suggest that you get closer to your current truck's scheduled end date to get a new one, but if you will miss out on your company's car allowance by not getting a new one now I completely understand why you would want to do so. When negotiating your deal on this truck, keep in mind that Acura is currently providing $2,500 dealer cash on it. I suspect that you will be able to get an '06 MDX right now for fairly close to dealer invoice before the subtraction of the dealer cash.

The money factor that you were quoted for this truck is right in line with Honda Finance's buy rate for consumers who qualify for its "Super Preferred" credit tier, lease one for 36 months, and have their security deposit waived.

It is difficult to say whether you would be better off trading in your MDX or purchasing it and trying to sell it on your own. Generally speaking, consumers are able to get more money for their used vehicles by selling them privately. However, the more expensive a vehicle gets, $27,000 is a lot of money for many people, the harder it is to sell privately. I would speak with a couple of dealers and see what they would be willing to give you for your truck before making a decision. Whichever way you choose, I highly doubt that trading in your current MDX will pay for the money that will be die at lease signing for your new MDX. It is much more likely that you are upside down on your current lease and will have to pay money out of your own pocket or roll negative equity into your new lease to get out of it.

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vince48

PK
This is a great deal compared to what I am being offered. The exact same car I have:
RV: 47%
42 month 12,000 mile with a $659 payment and just the first months lease as a down payment.
I feel like this in not such a good deal. Any thoughts
Vince48

pk15

Hey Vince,

Car Man would obviously know better than I, so take this with a big rock of salt. But after doing some rough number crunching that deal actually seems like it may be in the ballpark.

My numbers were based on a 10K mi/yr, 36 mo. lease so the RV is higher (54%). Also keep in mind that my deal is based on me putting down $1905 downpayment + $595 acquisition fee + $499 first mo. payment at signing (= $3K). Your deal is only putting down the first month and nothing else.

Ask Car Man to be sure, but it's about how much you want to be out of pocket up front and how much you want your monthly payments to be. Or even better, I know an '04 MDX that's in EXCELLENT condition I could show you.
haha

Good luck
pk

pk15

Hey Car_Man -

What do you think about the following offer:

2006 MDX Touring with Navi/OnStar
$36667.63
52% RV
.00293 money factor
10K, 36 mo. lease
$4K down = $535.86 mo. (tax, DMV, etc. incl.)

Sound right?
Thanks!
pk15

CarMan@Edmunds

Hi pk15. Is $36,667.63 this truck's selling price or MSRP. I assume that it is its selling price. Either way, I need to know both numbers to give you an assessment of this deal. Let me know what the other number is and I'll tell you what I think. I can tell you right now that the money factor that you were quoted is right in line with Honda Finance's buy rate for this truck. This is a good thing.

One thing that I noticed about this deal right away is the large down payment that you are considering making. It is in your best interest not to make any sort of capitalized cost reduction when leasing. I always advise community members against making cap cost reductions on leased vehicles because if their vehicle is totaled in an accident or stolen and never recovered during their lease, their down payment essentially disappears. You can and should lease this truck without making any sort of cap cost reduction.

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pk15

Yes, $36,667 is the selling price.

I hear what you're saying about the cap cost reduction on a lease. So I guess my main question is, won't that mean that my monthly payment is that much higher (I was told about $25 or so for every $1K down)?

Could you elaborate a bit on you saying that "you can and should lease this truck without making any sort of cap cost reduction?"

Thanks again

CarMan@Edmunds

Yes, pk15, if you decide not to make s down payment on this lease, your MDX's monthly payment would be higher. You can always keep the money that you would have used to make the down payment in the bank and use it to supplement your monthly payment on your own, or even make a few of your payments. You can lease this truck, only paying its first month's payment, a security deposit that is equivalent to its monthly payment rounded up to the nearest $25 increment, Honda Finance's $595 acquisition fee, and any required state taxes or fees at lease signing.

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pk15

Awesome - thank you Car_man!

fglaser1

Hello Car_man (and others),

Do you think the following is a good deal? I have yet to really bargain with the salesperson, it was the first quote he gave me!

'06 Acura MDX (no touring or nav); He offered it to me for $31,400; .00292 money factor; 36 months, 51% RV; 12,000mi/yr; I haven't discussed what the other fees are, but assuming they are the regular Acura fess (acquisition, taxes, etc.), what do you think?

I know that people have been talking about a 54% RV on this vehicle. Is this still possible this late in the model year? Also, when he gave me that offer, do you think that includes this "dealer's cash" incentive? What exactly is the "dealer's cash" incentive?

Thanks for your time,

Frank

kgoldman

Car Man,

Can you tell me what the most current money factor rate is for an Acura MDX touring with navigation for a 36 month lease 15K miles per year. I was given a rate of .0036 which seems high to me. My credit rating would qualify me for Super Preffered rate. Due the dealerships have the flexability to change the rate.

Thanks,
KG

suvshopper10

Hi Car_Man & Others...

I am looking to lease the Acura 2006 MDX Touring + Navigation + Tow Package. I was just quoted the following from a dealership in New Jersey:

MSRP: $44,136 (42,700 + 1,436 for Tow)
Quote: $36,746 (35,310 + 1,436 for Tow)

I still need to negotiate lease terms. My questions are:

1) Is this a good selling price? Could I get better?
2) What is the best lease deal I can expect? (36-month closed-end lease; 10,500 miles; top-tier credit; location=NJ; no trade-in)

Thanks in advance for your advice. And thanks for a great website.

MJ

izzydog

Anyone have an idea of the 24 month residual on 06 mdx with nav & dvd?

miamifx35

Hi Car Man,

What do you think of the following: I have been quoted a lease of $690 with tax included. Here is the deal:

2007 Tech/Ent pkg MDX
Price $45,042
12,000 miles per year / 36 months
out of pocket $3,000 which is broken down as follows:
1st month $685
tax, tag, title $269
lease acq fee $595
dealer fee $599
+tax for all of the above 7% = $150
cap cost reduction: 701

Let me know, any and all suggestions greatly appreciated. Thanks!

ppp3

What was the buyout at the end of the lease?

CarMan@Edmunds

You're welcome, pk15. Let me know if you have any other questions.

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CarMan@Edmunds

Hi Frank. Honda Finance's current buy rate lease money factor for a 36 month lease of a 2006 MDX is .00280 for consumers who qualify for its "Super Preferred" credit tier and pay a security deposit at lease signing. With the waiver of the security deposit it increased to .00290. What is the MSRP or dealer invoice price of the truck that you are interested in? You should be able to find out by asking the dealer that you are working with or by looking it up in the following section off this site: Edmunds.com - New Vehicle Pricing. These are important numbers to know because they help determine how good the selling price that you were quoted is. During your negotiations, keep in mind that Acura is currently providing $3,000 dealer cash on this truck. This cash is an incentive that is paid by Acura to dealers for every '06 MDX that they sell. You should negotiate as low a selling price as you can on this truck, stipulating that you want the $3,000 dealer cash subtracted from it. For example, say you are able to negotiate this truck's price down to $500 over invoice. When the dealer cash is taken into account this would be more like $2,500 under invoice.

As far as this truck's residual value goes, its correct 36 month, 12,000 mile peer year residual is currently 53%.

Car_man
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CarMan@Edmunds

Hi KG. The money factor that you were quoted for this truck is way too high. The dealer that you are working with may be marking this truck's money factor up to add additional, hidden back-end profit to your deal. This practice is completely legal, and actually fairly common amongst luxury dealers, but it can usually be avoided by consumers who know what the buy rate is for the vehicle that they want. Honda Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2006 Acura MDX Touring with Navigation (but no DVD) and 15,000 miles per year are .00280 and 49% for consumers who qualify for its "Super Preferred" credit tier and pay a security deposit at lease signing. When negotiating your lease on this truck, keep in mind that Acura is currently providing $3,000 dealer cash on it. This cash will help you to negotiate a very attractive capitalized cost for your lease.

Car_man
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CarMan@Edmunds

I'm glad that you like this site so much, MJ. A 2006 Acura MDX Touring with Navigation has a spread of a little over $4,200 between its full MSRP and dealer invoice price. When we add the $3,000 dealer cash that is available on this model right now to this we get a total of $7,200 to play with. You were quoted a discount of nearly $7,400, which looks like a very good price to me. Using the prices that you mentioned in your post, an MSRP of $44,136 and a selling price of $36,746, and Honda Finance's current 36 month, 10,000 mile per year lease program (.00280 and 52%), I estimate that this truck's zero down, pre-tax monthly payment should be around $551.

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CarMan@Edmunds

Hey izzydog. Honda Finance's current 24 month, 15,000 mile per year residual value for the 2006 MDX Touring with Navigation and DVD is 56%. Having said this, you would be much better off leasing this truck for 36 months than for 24 months. Its 36 month money factor is much more attractive at .00280, versus a factor of .00385 for 24 months. In case you are interested, this truck's 36 month, 15,000 mile per year residual is 47%.

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CarMan@Edmunds

Hi miamifx35. I would be happy to give you my opinion of this deal. It would be a big help though if you were able to provide me with this truck's full MSRP first. Are you being given any sort of discount. It is entirely possible that dealers aren't willing to discount 2007 MDXs yet. Let me know and I will be able to give you a detailed analysis of this deal. One thing that I don't like about it right off the bat is the $599 "dealer fee." This sounds like nothing more than a way for this dealer to tack additional profit onto this deal, which is a little excessive if they are already charging you full MSRP.

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miche25

Hi Car_man,

My local dealership has proposed the following lease for a 2007 MDX Sport/Tech/Ent:

36 mo. 10k mile per year with no cap-cost reduction

$2,602.10 drive off (including first month and deposit), and the monthly is $778.64 with tax. The residual is 63%, money factor 2.8.

Is this a fair lease rate?

Thank you for the advice.

miche25