Hi Car_Man, On the Edmunds Lease Calculator, Why does the payment change when you adjust "Miles Driven per Year" without an associated change in residual value? Also, I know you're not an advocate for putting big dollars down on a lease, but with an Acura lease, the gap insurance is included (according to salesman). So, just curious if that changes your down payment perception on a TL (ignoring reinvestment rates)?
Re: Gap insurance from above. Never mind the gap question as I realize I'm not thinking about this properly. I wouldn't be made whole after totaling the vehicle in say the first few months. Still would like to understand the lease calculator though. Thanks!
Car_Man- Could you confirm that residual for me? Two posts after your response to me, you quote the same residual on the same car for 15K miles/yr but I was asking for 12K miles/yr. Please advise. Burgermac
The folks over at Roadfly seem to confim 15K miles on the TL without Navi is .57. They've got .60 and .59 for 10K miles and 12K miles, respectively. It looks like a much better deal can be had than the nationally advertised TL. That national one looks to be based on a selling price of $32,822, but others in the "buying experience" forum indicate getting a price closer to the $31,500 invoice.
If you take a $34,295 MSRP and a $31,500 selling price, with the national program ($1,035 down + $595 acquisition fee), a .0011 money factor and $19,548 resid (57%) for 15K miles, you get a payment of about $359 before taxes and fees. Not too bad, but haven't seen if the dealer will actually take this. They'd be making about $1k on the 3% holdback at this price + anything they might get through Honda Finance.
Charlos- Thanks for the response. That's what I'm trying to do- work up a lease at invoice and use the national lease figures (.0011 and 59%) I get a pmt which is about 370 before taxes, but at least I know I'm getting the car for invoice (letting the dealer make the holdback + anything they get from Honda Motor Credit). I never make a downpmt- worried about losing it in a total loss accident. I usually email this info to a bunch of dealers, but I think I'll email it to the local dealer and give them a shot at it- they just have to have a car on the lot in my color choice that they have not junked up with $1500 worth of pin-stripes/mud guards/trunk trays/side molding. Thanks for the Roadfly link. I had never been to that site but it looks like I'll add it to my car buying arsenal (sorry Edmunds).
Your 59% and .0011 money factor should relate to the 36 month lease for 12K miles per year. Roadfly lists the 48 month lease at 48% and .0025, which makes the extra 12 months really unattractive. You're right though - 48 months is too long anyway.
In negotiating to lease a TL, should I seek to work with the salesman toward a bottom line lease price, or start off just negotiating the sale price and then nail down the leasing terms from there? Are the special leasing deals generally the same for all Acura dealerships, or do they vary? This is my first time getting a car, so wanted to try to understand how I should approach this.
Nail down the sales price first, and try to get several quotes from area dealers. Lease terms are set by Honda Finance as far as residual and MF but your credit score will affect the MF. The sales price will determine how much of the car your are paying for as well as how much interest you are paying on the lease. The lower the sales price, the lower the payment.
I was looking at the nationally advertised lease special on the base TL....which is ancie car. I have had a 2006 base TL as a loaner at my Acura dealer and it was a nice car.... pretty peppy...a decent amount of room, very quiet...my only complaint was it wasn't quite fast enough, nor sporty enoguh for my tastes...
I was thinking of the TL-S... haven't driven one, but it would probably work for my needs.
how much more than the base TL price/lease payment should I expect to be able to get a TL-S for?
the national deal looks like $2000 down and $369/month. that's really reasonable for what you get..but if I were to get a TL-S...how much MORE would I be looking at per month??
Lease payment would be roughly 65 to 70 more a month for a TL-S. Remember that the advertised price does not include taxes and other fees. On the other hand you may be able to negotiate a lower sales price vs the advertised cap reduction.
Hey Car_man and everybody else, this is my first time leasing a car. I am looking into the Acura TL among other cars. I am seriously considering the Acura TL, fully loaded. I will be leasing the car in Miami, and I have tier one credit. I would prefer a 2 year lease, although if it makes that much of a difference in price I would take a 3 year lease. After all is said and done (taxes, fees, etc.) approximately how much should I expect to pay per month? THANK YOU!
You'll roughly be paying about $80-$100 more per month for a 24 month lease compared to a 36 month lease. This is based on the current rates (money factor and residual). As far as payment goes, it will depend on the selling price of the car. You need to approach the deal just as if you were buying the car by getting the best sale price and then you need to have the dealer use that price with the .00110 money factor and the going residual for the car/term you select. If you tell us what your selling price is and what terms you want (mileage and 24 or 36 month), we could give you an estimate on your payment (before taxes).
Car_Man I am looking to lease a 2007 TL with navi and the following accessories: Ipod link, wood grain steering wheel, knob, and interior trim,and all weather car mats. Here is the pricing (the accessories are included in the selling price).
Selling Price: $36,795.00 Lease Acquisition Fee: $675.00 MF: .00110 CAP Reduction: $1,342.00 36 mo lease with 12k miles/yr Monthly payment: 486 + tax
I couldn't get the salesman to budge off the MSRP, but I was able to get the accessories included. Let me know what you think.
I haven't been following the trend too closely, but it seems like Acura like's to run their specials for more than just a month. I think Jan and Feb were the same. I wonder if April will keep up the same specials that March has (.00110 money factor)? I'm tempted to jump on a TL-S now in March, but I still have 3 payments on my 4Runner left and I want to maximize my money. Anyone have any thoughts?
Hey Car_man and everybody else. I have made my decision to lease a TL, I am in Miami, FL. Does anybody know of a good dealership or leasing company down here?
Hi alfstinky1. It's strange that the dealer that you spoke with would lie to you about this, but Honda Finance definitely leases Acuras with only 10,000 miles per year. Heck, the lease that it is currently advertising on the 2007 TL on Acura.com is based upon 10,000 miles per year. It would be funny to see what the dealer who told you they don't do them says when you show him this.
Honda Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2007 Acura TL with Navigation and 10,000 miles per year are .00110 and 58%, respectively. The numbers for an otherwise identical lease of a 2007 Acura TL-S would be .00110 and 59%.
Hi skurl35. If I was in an area that had a decent level of competition, I personally would shoot for $500 over invoice on a 2007 Acura TL. $1,000 over invoice isn't terrible, but $500 over is better . Try stopping by the following discussion to see how much other community members have paid for this model lately: "Acura RL: Prices Paid & Buying Experience".
That's a good question, charlos. Unfortunately I am not personally all that familiar with the Edmunds.com lease calculator. I'm only involved in the forums section of this site. I personally use an Excel spreadsheet that I created to calculate lease payments. You can use the formula that is outlined in the following article to calculate lease payments on your own: Calculate Your Own Lease Payment.
Gap insurance is definitely an important thing to have on a lease. It is still possible to lose your down payment if your vehicle is totaled when you have gap insurance. Your insurance company will pay off what your leased vehicle is currently worth, gap insurance will cover the difference between that value and the amount that you still owe on your car, and your down payment will disappear.
Hey burgermac. Sorry for the confusion. Honda Finance's current buy rate lease money factor and residual value for a 36 month lease of a base 2007 Acura TL without navigation with 12,000 miles per year are definitely .00110 and 59%, respectively. The residual value for a 15k lease is 57%.
Hi dgrahamr. I always negotiate as low a selling price as possible on the vehicle that I want to lease and then have the dealer that I am working with calculate my lease payment using its buy rate lease money factor. Deals just seem to be simpler when they are broken out like that. Acura's lease program for the 2007 TL is the same for all dealers. Negotiate the lowest price that you can and make sure that the dealer that gives you that price is using Honda Finance's buy rate lease money factor and you're in business.
Hi 23109vc. The dealer invoice price of a 2007 Acura TL-S with an automatic transmission is around $4,100 higher than the invoice price for a base '07 TL without navigation. Their lease programs are about the same. Assuming that you could get the TL-S for $500 over dealer invoice or so, I estimate that its 36 month, zero down, pre-tax monthly payment with 10,000 miles per year would be around $433.
Greetings andyking18. Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.
Your lease payment for this car will depend upon what sort of selling price you are able to negotiate on it. Consumers who are in an area that has a decent level of competition, and Miami probably qualifies, should probably be able to negotiate a price of around $500 over dealer invoice on the 2007 Acura TL. The full MSRP of an '07 TL with navigation is $36,795. Its dealer invoice price is $33,807. $500 over that would give us a selling price of $34,307. Using these prices, I estimate that this car's 24 month, 12,000 mile per year zero down, pre-tax monthly payment should be around $497. The payment for an otherwise identical 36 month lease should be around $432.
Hi calael. The money factor that you were quoted for this car is right on the month, but the dealer may be padding its acquisition fee slightly. The last time that I checked, Honda Finance only charged a $595 acquisition fee. Full MSRP is too much to pay for an Acura TL right now, probably even if they are throwing in the options that you want for free. It wouldn't hurt to shop around a little bit to see if you can do better than that. Make sure to stop by the following discussion to see how much other community members have paid for similar cars lately: "Acura TL: Prices Paid & Buying Experience".
Annex- I am about to sign a lease on the following deal: Acura TL with out nav MSRP 34295 Selling Price 31900 Residual 20234.05 (59% for 3 yrs/12k miles per yr) Money Factor .0011 Payment is 408.10 after 7% state sales tax
Bank Fee- 595 Motor Veh fee- 157 (temp and permanent tags) Doc Fee-499
I don't know where you're located but based on my calculations, you're paying 32865 (1347 over invoice) for the car. Based on the feedback on this website, that's way too much. Go for no more than 500 over invoice and DO NOT pay any cap cost reductions. Also, the wisdom of paying extra security deposits is under scrutiny (see the Infinity M35 Forum) since they only return those to you when you return the car. If the car is totaled, you are clearly not returning it, so they can keep your security deposit(s). (Paying extra security deposits is one means of lowering the money factor used by some- an unlucky subscriber to this theory over on the Infinity M35 lease forum found this out the hard way :-( )
If you can't get this deal from the local dealer, simply email a pricing request to dealers in a 250-300 mile radius from where you are and I'd be willing to bet that one of them will sell you a car for that price. I do this every time I buy a car and it works like a charm. Even if you don't want to travel to pick up the car, at least you've got another dealer's competitive quote in your pocket you can use to negotiate. Remember- the deal you've been quoted will cost you $1044 in depreciation, interest and taxes over the course of the lease- you'd probably rather have that in your pocket- not theirs.
Can anyone tell me if Acura charges any additional fees if you want to buy the car, for the residual amount, at the end of a lease? I've never really considered leasing before, but (unless I'm looking at the numbers wrong) it looks like the current lease deal is a cheap way to finance a car and purchase it at lease end. Plus you have the option to turn the car in at the end of 3 years.
Hi stlacura. The trend that you noticed holds true this month as well. Acura's current lease program for the 2007 TL is scheduled to run through April 30th. So you definitely do not need to rush to lease one in March. In fact, I personally would not lease one until the month that my current lease was up. While there is no guarantee that this will be the case, there is a very good chance that Acura will try to maintain the same lease payments that is has on the TL now in May and June.
Hey stlacura. You were smart to negotiate your car's selling price before discussing its monthly payment. That is the best way to assure that you are getting a good deal on your lease. Let's take a look at the price that you were quoted. The dealer invoice price of a 2007 Acura TL-S with an automatic transmission is $35,638. The price that you are being given is $849 over invoice, which is pretty good. Plus, the money factor that you were quoted is right in line with Honda Finance's current buy rate for this car. If you live in an area that has a good level of competition and you comparison shop some you may be able to shave another couple hundred off of this price, but this is a very fair deal.
Hello annexmember7. You never mentioned the selling price or MSRP of the car 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 car'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.
Hi g35ortl. Honda Finance charges a $595 acquisition fee on every vehicle that it leases. This is one fee that you would not have to pay if you financed instead of leased. Many banks also charge a disposition fee at lease-end. I am not sure if Honda Finance charges one though. If you really want to finance your TL, you may want to consider taking advantage of the special financing rates that Acura is currently providing on it. These rates are 1.9% for loans up to 3 years in length and 3.9% for 4 and 5 years.
For those who are interested- I just leased a 2007 TL with navigation on the following terms- 36mo lease with 15k miles per year- $475 mo. including tax with $975 due at signing (that included first payment) the money factor and residual were A++. I shopped for some time. The two dealers closest to me turned this deal down and had me walk away. Had to drive 30 miles to Baranco Acura for this deal (I'm in Atlanta)but it was much better than the others and well worth it. LOVE this car. I looked at Lexus, Audi, Beamers, and Infinity. I initially liked the G35 a bit more but would have paid $110 more per month on the same sticker price. No thanks, they can keep it. The TL is a smart, hot car that is fun to drive. The Navigation interface is the best I’ve seen- better than my after market Magellan and the voice activation works flawlessly- that was unexpected. By the way- I went with the white w/ taupe. Tough choice but I’m glad I did- it is sharp.
azzazello, that offer beats the advertised offer on honda finance website----0 money down? is that right? SIGN THE PAPERS! where u at, i want in on that dealer!
bkeen, i've been following posts here for awhile,look up thread for some insight. I say if this is a TL-S maybe with tax a decent deal ,otherwise the deal stinks!
Of course it beats the advertised deal! It would really suck if I got a deal that was worse than the nationally advertised one! . For the record, this is NOT a TL-S. Just a plain ole TL, no Navi. I know the deal is pretty good. It is AT invoice. Was looking for an independent voice to comment. Still am actually . I did put down a deposit, and the deal was after shopping around. I am getting it at Acura of Brooklyn (Nostrand Avenue). Excellent service too, I must say. I don't know how much they would haggle had I not came in with all the numbers on paper though. As it was, the whole thing took 1.5 hours. They looked at my numbers and agreed.
I'm looking at in Los Angeles CA; 2007 Acura TL with Navigation. Lease term: 36 month Mileage: 10000 per year Total drive off: $2000 Monthly payment (35): 392.45* plus tax (=$424.83) Cap cost (price of car): $33,850 residual value: $21341.10
10000 a year is perfect for me, any negotiation room here?
15k per year (not 10k) with navigation Only $400 and change dwn. $475 per mo. INCUDES TAX Show me how this deal stinks rwheiler. Thanks for your comments
sure bkeen, maybe stinks was the wrong way to put it, please put up all your numbers....msrp, cap cost,res.value, money factor, thanks---wouldn't be the first time i was wrong
Well, here are my 2 cents on this. They seem to be using 58% residual. For 10k without a Navi, it's 60%, but I guess it could be 58% because of the Navi, so let's say that's ok.
So this should be your total with $0 down (which you should do, actually). You have 392, which is $14 less a month. $14 * 36months = $504 over the term of lease. So we subtract that from your $2k down. left with $1500. Lets say $600 of that is Aquisition Fee. Destination charge we included in MSRP. OK, so we are left with $900 of unexplained fees. Have them explain to you what you are paying the $900 in fees for. I think you should pay no more that 300-400 in doc+registration fees.
Erm...I just realized something. Your $406 first payment is included in the 2k. So you only have $500 unexplained in fees I think you can MAYBE get them to drop another 200-300. But even as is, i think not a bad deal.
Comments
Thank you!
Could you confirm that residual for me? Two posts after your response to me, you quote the same residual on the same car for 15K miles/yr but I was asking for 12K miles/yr. Please advise.
Burgermac
The folks over at Roadfly seem to confim 15K miles on the TL without Navi is .57. They've got .60 and .59 for 10K miles and 12K miles, respectively. It looks like a much better deal can be had than the nationally advertised TL. That national one looks to be based on a selling price of $32,822, but others in the "buying experience" forum indicate getting a price closer to the $31,500 invoice.
If you take a $34,295 MSRP and a $31,500 selling price, with the national program ($1,035 down + $595 acquisition fee), a .0011 money factor and $19,548 resid (57%) for 15K miles, you get a payment of about $359 before taxes and fees. Not too bad, but haven't seen if the dealer will actually take this. They'd be making about $1k on the 3% holdback at this price + anything they might get through Honda Finance.
http://forums.roadfly.com/forums/financing/8295322-1.html
Thanks for the response. That's what I'm trying to do- work up a lease at invoice and use the national lease figures (.0011 and 59%) I get a pmt which is about 370 before taxes, but at least I know I'm getting the car for invoice (letting the dealer make the holdback + anything they get from Honda Motor Credit). I never make a downpmt- worried about losing it in a total loss accident. I usually email this info to a bunch of dealers, but I think I'll email it to the local dealer and give them a shot at it- they just have to have a car on the lot in my color choice that they have not junked up with $1500 worth of pin-stripes/mud guards/trunk trays/side molding. Thanks for the Roadfly link. I had never been to that site but it looks like I'll add it to my car buying arsenal (sorry Edmunds).
Burgermac
I was thinking of the TL-S... haven't driven one, but it would probably work for my needs.
how much more than the base TL price/lease payment should I expect to be able to get a TL-S for?
the national deal looks like $2000 down and $369/month. that's really reasonable for what you get..but if I were to get a TL-S...how much MORE would I be looking at per month??
You'll roughly be paying about $80-$100 more per month for a 24 month lease compared to a 36 month lease. This is based on the current rates (money factor and residual). As far as payment goes, it will depend on the selling price of the car. You need to approach the deal just as if you were buying the car by getting the best sale price and then you need to have the dealer use that price with the .00110 money factor and the going residual for the car/term you select. If you tell us what your selling price is and what terms you want (mileage and 24 or 36 month), we could give you an estimate on your payment (before taxes).
I am looking to lease a 2007 TL with navi and the following accessories: Ipod link, wood grain steering wheel, knob, and interior trim,and all weather car mats. Here is the pricing (the accessories are included in the selling price).
Selling Price: $36,795.00
Lease Acquisition Fee: $675.00
MF: .00110
CAP Reduction: $1,342.00
36 mo lease with 12k miles/yr
Monthly payment: 486 + tax
I couldn't get the salesman to budge off the MSRP, but I was able to get the accessories included. Let me know what you think.
2007 TL, Type S, Moroccan Red, Silver/Ebony interior
36 months
15k per year
MSRP - $38,795
Sale - $36,487
Aqstn fee $595
Doc fee $159
Tag/Title $86
Mnthly Tax $30
(6.075%)
MF - .00110
Residual - 56%
Monthly - $525 (including tax)
$0 down, first payment + Tag/Title fee due at signing
Rubber Mats, Splash Gaurds, and 8 free oil changes thrown in.
Honda Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2007 Acura TL with Navigation and 10,000 miles per year are .00110 and 58%, respectively. The numbers for an otherwise identical lease of a 2007 Acura TL-S would be .00110 and 59%.
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Gap insurance is definitely an important thing to have on a lease. It is still possible to lose your down payment if your vehicle is totaled when you have gap insurance. Your insurance company will pay off what your leased vehicle is currently worth, gap insurance will cover the difference between that value and the amount that you still owe on your car, and your down payment will disappear.
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Your lease payment for this car will depend upon what sort of selling price you are able to negotiate on it. Consumers who are in an area that has a decent level of competition, and Miami probably qualifies, should probably be able to negotiate a price of around $500 over dealer invoice on the 2007 Acura TL. The full MSRP of an '07 TL with navigation is $36,795. Its dealer invoice price is $33,807. $500 over that would give us a selling price of $34,307. Using these prices, I estimate that this car's 24 month, 12,000 mile per year zero down, pre-tax monthly payment should be around $497. The payment for an otherwise identical 36 month lease should be around $432.
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0 Capital Reductions
It has residual value of $20,234.05
Lease Pmt of $437.96
Then
Bank Fee $595
Motor Veh Fee $166
Doc Fee $199
I am about to sign a lease on the following deal:
Acura TL with out nav
MSRP 34295
Selling Price 31900
Residual 20234.05 (59% for 3 yrs/12k miles per yr)
Money Factor .0011
Payment is 408.10 after 7% state sales tax
Bank Fee- 595
Motor Veh fee- 157 (temp and permanent tags)
Doc Fee-499
I don't know where you're located but based on my calculations, you're paying 32865 (1347 over invoice) for the car. Based on the feedback on this website, that's way too much. Go for no more than 500 over invoice and DO NOT pay any cap cost reductions. Also, the wisdom of paying extra security deposits is under scrutiny (see the Infinity M35 Forum) since they only return those to you when you return the car. If the car is totaled, you are clearly not returning it, so they can keep your security deposit(s). (Paying extra security deposits is one means of lowering the money factor used by some- an unlucky subscriber to this theory over on the Infinity M35 lease forum found this out the hard way :-( )
If you can't get this deal from the local dealer, simply email a pricing request to dealers in a 250-300 mile radius from where you are and I'd be willing to bet that one of them will sell you a car for that price. I do this every time I buy a car and it works like a charm. Even if you don't want to travel to pick up the car, at least you've got another dealer's competitive quote in your pocket you can use to negotiate. Remember- the deal you've been quoted will cost you $1044 in depreciation, interest and taxes over the course of the lease- you'd probably rather have that in your pocket- not theirs.
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36 months
12k per year
MSRP - $34,295 (dest charge included)
Sale - $31,517 (dest charge included)
Aqstn fee $595
Doc fee $189
Registration Fees $200
Monthly Tax $26
(NY - 8.375%)
MF - .00110
Residual - 59%
Monthly - $370 before tax, $396 after tax
$0 down, first payment + Aquis/Doc/Reg Fees due at signing
Please comment?
2007 Acura TL with Navigation.
Lease term: 36 month
Mileage: 10000 per year
Total drive off: $2000
Monthly payment (35): 392.45* plus tax (=$424.83)
Cap cost (price of car): $33,850
residual value: $21341.10
10000 a year is perfect for me, any negotiation room here?
15k per year (not 10k)
with navigation
Only $400 and change dwn.
$475 per mo. INCUDES TAX
Show me how this deal stinks rwheiler. Thanks for your comments
==== VARIABLES =======
MSRP = *36795*
SALE_PRICE = *33807*
MONEY_FACTOR = *0.00110*
RESIDUAL_PERCENTAGE = *58%*
TERM = *36*
==== DERIVATIONS =======
RESIDUAL_VALUE = (MSRP * RESIDUAL_PERCENTAGE) = *21341.1*
CAR_VALUE = (SALE_PRICE - RESIDUAL_VALUE) = *12465.9*
PAYMENT = (CAR_VALUE/TERM) = *346.275*
INTEREST = ((SALE_PRICE + RESIDUAL_VALUE) * MONEY_FACTOR) = *60.66291*
TOTAL = (PAYMENT + INTEREST) = *406.93791
So this should be your total with $0 down (which you should do, actually). You have 392, which is $14 less a month. $14 * 36months = $504 over the term of lease. So we subtract that from your $2k down. left with $1500. Lets say $600 of that is Aquisition Fee. Destination charge we included in MSRP. OK, so we are left with $900 of unexplained fees. Have them explain to you what you are paying the $900 in fees for. I think you should pay no more that 300-400 in doc+registration fees.
I have the following quotes for a TL and Type-S... can you tell me if these are "good"?
TL
32417 Cap Cost (34295 MSRP)
1549.04 out of pocket (1st payment, plates, 595 ac fee)
443.29 36mo/15k
about 20$ less for 12k
TL-S
36254 Cap Cost (38795 MSRP)
1660.42 out of pocket (same as above)
499.67 36/15
about 20$ less for 12k
These all have MN tax (6.5%) rolled into them.
Thanks for your advice!
I’ll offer to lease it for $1500 down and $392 per mo.
We'll see what happens.