The dealer has many reasons to push you to lease. First, he can usually make a little more since most lessees are concerned more with monthly payment and driveoffs than the sale price of the car. Second, he keeps you as a customer three years down the line for another car. He takes back your leased vehilce with 30k miles, and makes money on the used car transaction. He then makes money on getting you into a new car.
I am a big fan of leasing. With these factory sponsored leases, you can get the best of both worlds: a car at near invoice, with a very low interest rate, and a very low payment. Of course, you never own the car, so if you want to hold on to a car for many years, never lease. I have "car happy feet, " and I know that I need/want/gotta have a new ride every three years or so.
Now, I recently leased an Infiniti, and wanted out of the lease early. I posted the vehicle on leasetrader.com, and after a couple of months (and about 1000 in fees), I transferred the vehilce to another prequalified lessee. It was very easy, but it cost me some money.
I then went to the local dealer and leased an '07 Accord EX-L V-6 6 speed. I am paying $400 less per month on the lease. It is not an Infiniti, but I am happy (very happy) with the ride.
I think you should reconsider leasing. Just understand what your needs and wants are, and you should be fine. Keep in mind that if you buy a used car, you will need to spend $$ on maintenance and repairs that won't be spent on a new car under factory warranty. Also, all leases come with gap insurance. That means if you total your car, you are not on the hook for the difference between what is owed to pay off the lease and what the insurance company gives you. Leases also come with roadside assistance.
Actually my main goal is to reduce my expenses down the line and I decided to go with a used car (when I find a good one). I can then in one year either sell it or refinance it for even lower payment. Well that's my plan.
If I stay with a lease, my payments will remain the same low $400 due to my negative and low FICO score for 3 years. I just don't have the flexibility with the lease.
You are right, I beleive. The advertised lease rates are usually for FICO scores above 700; sometimes even above 720. A lower score will make the lease more expensive, as the money factor (interest rate on lease) will be more. That might add $10 - 30 to your monthly lease payment. However, the same can be said for buying as well. A lower FICO score will result in a higher interest rate and cooresponding monthly payment. But you can change vehicles easier with a used car.
You may also want to look at leasetrader.com. You can assume a lease there, with little or no money down. The leases are usually short term, or up to 3 years. You are getting a near new car, ususally in very good shape. That is how I got out of my FX ($700 per month lease) which was in great shape (only 1 year old) and into the Accord, to save me $400 a month, plus savings on gas and insurance.
I am interested in the 199/mo '07 Acoord LX lease. I went to honda's web-site and applied, and it approved me for up to 14K and some change, but I specified in the check box that I was leasing. my credit card company says my fico is 652 for febuary. I have a 1997 Cherokee sport is very good condition with about 88K miles. the 199 sounds attractive to me, I just don't totally undertand the lease details, I think it is 2199 down, and 199 month, so if i take 199x36= $7,164. but i will have also paid 2199 down, so that is $9,363. my confusion is when the lease is up?? how much will they charge me to continue payments if i want to keep the car? and if i do not, and don't go over the mileage. I walk away from the car and will have basically paid 9,363. for 3 years and 36K miles...I guess basically, what will they consider the car worth a the end of my 3yr/36K mile lease? thanks,confused,, sean
Ok, I'm ready to pull the trigger on a '07 Accord EX 4 cyl lease and cannot find the kinds of pricing everyone is getting in this forum. I followed the online advice and shot off a bunch of e-mails to 12 different dealers in the Chicago metro area.
I used rliu818's deal terms:
$1,999 drive out (including all taxes, fees, etc.) $209/month for 35 months
The only kinds of responses I've received from the online dealer community is complete disbelief that this offer includes tax!
What am I doing wrong and is anyone getting these kinds of prices in Chicagoland?
noticed u said chicago, I beleive Il and tx are the only 2 states where u have to pay full tax on the cars value,not the monthly payments...don't know how much this comes out to be...I live in downstate IL. so I guess it applies.
My lease was based on a promotional offer in February, which was an advertised rate of 2199 and 210/mo not including tax. because the national advertised rate was so low, i was able to work off that to get my deal.
I just checked honda.com and it looks like that national offer is no longer available. as a matter of fact it is 2199 and 199/mo for an LX 4cyl, which is a crappier deal.
Looks like Honda backed out a bit. Now you have to wait til May for the next promotion since the current one ends on 4/30/07
Just leased Accord EX-L coupe 2 weeks ago, and not happy with the back seat passengers access. What are my options? I would like to get the sedan V6, the dealership wants ~$3K-4K termination fees.
"Just leased Accord EX-L coupe 2 weeks ago, and not happy with the back seat passengers access. What are my options? I would like to get the sedan V6, the dealership wants ~$3K-4K termination fees. "
Your option are fairy limited. You can selling your car (either to the dealer or by yourselves, there is really no different to Honda. You probably get a lot less from the dealer) and pay off Honda. You can call Honda Financial (there should be a phone number in your bill) and they can tell you what the pay off amount is at that particular month (it change every month). How much you loss depend on how good a deal you negotiate up front and how much you can sell your car. I would imagine a couple thousand at a minimum...
I agree with the other messages, basically. If you want out of your lease, you can transfer it through a site like leasetrader.com. However, it will cost you about $500 to do so, and then you'll have to pay a couple more thousand to drive off on a new car. If you really want out, bug the crap out of the dealer until they just compromise with you.
The other alternative is of course to get the pay off from AHFC, and then sell it private party. Your payoff should be around invoice if you got a good deal, so you should be able to unload it.
Hi sean. 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 credit score is probably good enough that you will be able to qualify for a lease through Honda Finance, however it is not high enough to qualify for its top credit tier. As a result, if you were to negotiate the same selling price ad the one that was used to arrive at the advertised payment for the Accord, your monthly payment would be higher.
At end scheduled end of your Accord lease you will have the option to purchase your car for its predetermined purchase option price or to return it without having to pay anything. If you opt to purchase your Accord at lease-end you will have to either pay cash for it or finance it. Your monthly payment will vary depending upon how much you pay and what interest rate you are charged.
Hi nilib3. I am sorry to say that once you signed your lease contract and drove your Accord off of the dealer's lot it is yours. As you have found, it is going to be pretty expensive to get out of your lease at this point. You're either going to have to learn to live with the Accord Coupe's back seat access or pay several thousand dollars to get out of your lease.
I live in Atlanta and one of my local dealers is offering $209/mo for 36mo for either 4cyl or V6 SE models with $2199 due not including tax, title, etc. How does this compare and if it not that great, what kind of deal could I resonably assume to get?
that is a great price on the accord lx sedan automatic. That is quite a bit under invoice. As for the question about financing yes you can use whom ever you want it is completly up to you. Check with the dealer though. I run a honda store in Jefferson city MO>>> as the sales manager and here i have the option to allow 750.00 additional or offer 2.9 to 4.9% financing with approved credit. GRaham
the deal you were jquoted on is the deal directly from Honda Financial. the 2199 does not however include yout tax title and tag. so your out of pocket is going to be more if you choose not to roll in your TTL with the loan.
the 1999 drive out is not including tax. yor tax title and license is always in addition to the "drive out" number. the 1999 is the cap cost reduction gap, and aq fee. those dealers are correct in telling you that your taxes are not included
It is not the dealers fault he wants to chenge his car to a V6. and it is out of their hands anyway. once the car has been delivered and the dealership has received the money from the bank it is now the banks and the customers responsibility.
Here in New Jersey...2 weeks ago...leased a Honda Accord EX-L, black on black , loaded......they wanted $2199 down and $217 a month which included everything. I said , I won't pay $217 a month...I paid..$2199 and a monthly payment of $190.00 includes everything......35 months...............buyout in 35 months is $15,200.............good deal, bad deal...whatever...my wife loves the car and only $190 a month!!.......and the $2199 was paid by her trade of a 2000 chevy Impala with 125,000 miles on it...which had mega repairs to be done.....we walked off with signatures only!..........Based on her putting approx.26,000 miles on this car , in 3 years the est. value of a 3 year old Accord will be @ $18,000.........will I buy it out?......maybe...
yes, my contract is for 12,000 miles....I have purchased 2 others cars from them in the past....whether that made a difference or not ...I'm not sure.. and the $190.00 a month includes everything!...taxes ( 7%), 3 year registration, everything!!!,..I walked out of the dealership never having to take a penny out of my pocket or put anything on my credit card.......signatures only!!...They took my wifes beat up Impala and that was that!!
Many thanks to this forum I believe I negotiated a fairly good 36/15,000 lease with Honda of Ocala in Ocala, Florida. I informed the salesman that I understood the leasing system, knew the vehicle I wanted, and knew the invoice.
The car is 2007 Honda Accord EX-L-V6. Invoice according to Edmunds is $25,058 (includes -$267 regional adjustment and +$47 color adjustment.
After some haggling with the salesman (and his boss of course) they agreed they would sell the car at invoice. Prior negotiations had shown me that even if you negotiate the sales price the dealer can still play with the lease calculations. At this point I handed the salesman a printed out calculation from the lease calculator stating what I would pay monthly for a sign and drive lease. This included sales tax, acquisition fee, TTL,tire, battery, lemon law, doc fee, 56% residual and .0009 money factor. This blew them away that I was this well prepared (thanks again forum). Standing my ground the dealer accepted this after a bit more haggling except he would only give me a 55% residual(I showed him the printout to no avail). I finally agreed (my one weak moment). This increased my monthly payment by $11.
The dealer had one car on the lot that was the correct color but it had added accesssories of wheel lugs, splash guards, pin stripe, cargo tray, and premium fron and rear mats (MSRP $388). I said I didn't want them and he finally agreed to give them to me rather than order in a basic car.
So, the final deal was: Sales Price $25,058 Acquisition fee $595 Doc fee $90 Cap Cost $25,829 (included TTL, fees, etc.) Sales Tax 6.5% Payments 35 payments of $348.25 (Yes, 35. The dealer paid the first payment.
So the one less payment paid for the increased cost of the different residual and the accessories were freebees. Having the printed out calculation was key to the negotiation. Sorry this is so long but maybe someone out there can use this method to their advantage. For Central Florida buyers I recommend you try Honda of Ocala. Love the car too!! Richard
I live in New Jersey and I'm ready to enter into a lease for an Accord. Can you please give me the name of the dealer that gave you the $190 a month lease. Thank-you
Have no idea about the stuff and really don't care....what I look at is..What is my monthly payment?.....What will the buyout be?...and I want to walk out with as little as possible spent. If I buy a the car instead of lease then I look at different things. In my case...there was no money exchanged, except for a burnt out 2000 Impala...got the lowest monthly payment that I thought I could get ($190)....and a buyout that I felt would be much lower than the car would be actually worth in 35 months.....A 3 year old Honda Accord with 26k on it is going for @ $18000.....the buyout should I opt to buy it is $15,200....the sticker price on this car was $25,900... Thats the deal...........and my wife loves it!!!
First of all, MSRP for an Accord EX-L is $25645, not $25900. Second of all, buyout for this car is 58%, which is $14875, not $15200. Third of all, a 2000 Chevy Impala @ 125k miles in perfect condition is worth less than $2000. Fourth, we didn't have any Chevy Impalas traded in within the last month. Fifth, if you add up his down payment, his lease payments and the residual value of the car you get $24049, which would only be possible if sales tax and finance charges did not exist. Sixth and last, the deal you claim to have gotten is not even close to possible. It is not even possible on an LX.
You are doing a disservice to the customers that seek advice on this site as well as my dealership.
Well, maybe, just maybe,I misunderstood the deal I was getting ....I know that dealerships run promotions from time to time, like with low interest rates, etc...I like the deal I got, whether it's available now or not, I don't know. Sorry for any inconvenience I've caused anyone or misunderstanding! My apologies to anyone that I mislead.
Due at signing: 1026.44 (bank fee, first month payment and doc fee)
is that a good deal ? or can I do better. I am in NJ.
Initially I was quoted for $19,096 for the price but the dealer say that is not available for lease because Honda will not honor the $750 cash back for lease.
I see that Honda has a new Accord Lease deal that they are advertising but I'm confused about the Cap Cost Reduction. The deal is 179/mo for 36 months with 2875 due at signing. It includes a cap cost reduction of 2101 which it goes on to say is part of the down payment which may be part of the dealer contribution. What exactly does that mean? I'm sorry if this is a dumb question, but just as I thought I was beginning to understand how a lease actually works I am stumped by the small print at askabouthonda.com. Please Help! (If I have not explained this well enough the small print is at the website listed above.)
2007 Honda Accord Sedan SEV6 AT...24mo...12k miles - $169/month + Tax with $2599 due at signing *MSRP - $23,945 - Residual is $17,391.50 with a .0009 Money Factor
Residual $17,391.50 is way too high ! It means after 36 months this car is still worth that much. Not possible... It should be around $13,500.00.. Somthing is wrong with this calculation.
Comments
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
Don't ever enter into a lease contract that you are not planning to fulfill...
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After doing my research and thx to you all, I decided not to go into a lease.
I'm going back to my initial plan to purchase a used car. The dealer had me pushed to lease from the start.
The dealer has many reasons to push you to lease. First, he can usually make a little more since most lessees are concerned more with monthly payment and driveoffs than the sale price of the car. Second, he keeps you as a customer three years down the line for another car. He takes back your leased vehilce with 30k miles, and makes money on the used car transaction. He then makes money on getting you into a new car.
I am a big fan of leasing. With these factory sponsored leases, you can get the best of both worlds: a car at near invoice, with a very low interest rate, and a very low payment. Of course, you never own the car, so if you want to hold on to a car for many years, never lease. I have "car happy feet, " and I know that I need/want/gotta have a new ride every three years or so.
Now, I recently leased an Infiniti, and wanted out of the lease early. I posted the vehicle on leasetrader.com, and after a couple of months (and about 1000 in fees), I transferred the vehilce to another prequalified lessee. It was very easy, but it cost me some money.
I then went to the local dealer and leased an '07 Accord EX-L V-6 6 speed. I am paying $400 less per month on the lease. It is not an Infiniti, but I am happy (very happy) with the ride.
I think you should reconsider leasing. Just understand what your needs and wants are, and you should be fine. Keep in mind that if you buy a used car, you will need to spend $$ on maintenance and repairs that won't be spent on a new car under factory warranty. Also, all leases come with gap insurance. That means if you total your car, you are not on the hook for the difference between what is owed to pay off the lease and what the insurance company gives you. Leases also come with roadside assistance.
Lease and get a new ride, I say!
Actually my main goal is to reduce my expenses down the line and I decided to go with a used car (when I find a good one). I can then in one year either sell it or refinance it for even lower payment. Well that's my plan.
If I stay with a lease, my payments will remain the same low $400 due to my negative and low FICO score for 3 years. I just don't have the flexibility with the lease.
Is my thinking correct? :confuse:
You are right, I beleive. The advertised lease rates are usually for FICO scores above 700; sometimes even above 720. A lower score will make the lease more expensive, as the money factor (interest rate on lease) will be more. That might add $10 - 30 to your monthly lease payment. However, the same can be said for buying as well. A lower FICO score will result in a higher interest rate and cooresponding monthly payment. But you can change vehicles easier with a used car.
You may also want to look at leasetrader.com. You can assume a lease there, with little or no money down. The leases are usually short term, or up to 3 years. You are getting a near new car, ususally in very good shape. That is how I got out of my FX ($700 per month lease) which was in great shape (only 1 year old) and into the Accord, to save me $400 a month, plus savings on gas and insurance.
Bon chance!!! :shades:
I used rliu818's deal terms:
$1,999 drive out (including all taxes, fees, etc.)
$209/month for 35 months
The only kinds of responses I've received from the online dealer community is complete disbelief that this offer includes tax!
What am I doing wrong and is anyone getting these kinds of prices in Chicagoland?
Thanks for the help.
I just checked honda.com and it looks like that national offer is no longer available. as a matter of fact it is 2199 and 199/mo for an LX 4cyl, which is a crappier deal.
Looks like Honda backed out a bit. Now you have to wait til May for the next promotion since the current one ends on 4/30/07
with the back seat passengers access. What are my options?
I would like to get the sedan V6, the dealership wants
~$3K-4K termination fees.
with the back seat passengers access. What are my options?
I would like to get the sedan V6, the dealership wants
~$3K-4K termination fees. "
Your option are fairy limited. You can selling your car (either to the dealer or by yourselves, there is really no different to Honda. You probably get a lot less from the dealer) and pay off Honda. You can call Honda Financial (there should be a phone number in your bill) and they can tell you what the pay off amount is at that particular month (it change every month). How much you loss depend on how good a deal you negotiate up front and how much you can sell your car. I would imagine a couple thousand at a minimum...
The other alternative is of course to get the pay off from AHFC, and then sell it private party. Your payoff should be around invoice if you got a good deal, so you should be able to unload it.
Good luck.
Your credit score is probably good enough that you will be able to qualify for a lease through Honda Finance, however it is not high enough to qualify for its top credit tier. As a result, if you were to negotiate the same selling price ad the one that was used to arrive at the advertised payment for the Accord, your monthly payment would be higher.
At end scheduled end of your Accord lease you will have the option to purchase your car for its predetermined purchase option price or to return it without having to pay anything. If you opt to purchase your Accord at lease-end you will have to either pay cash for it or finance it. Your monthly payment will vary depending upon how much you pay and what interest rate you are charged.
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Looking for 36mo, 36k & 45k MF & residuals on 4 cylinder EX-L & EX-V6. Thanks!
It is not the dealers fault he wants to chenge his car to a V6. and it is out of their hands anyway. once the car has been delivered and the dealership has received the money from the bank it is now the banks and the customers responsibility.
Way better than mine. What was the dealer thinking?
You say your prices include everything, which i assume tax as well. Is your contract also for 12k/year?
You probably have got the best deal on this forum.
$1999 drive off
$209/mo for 35 months.
and my rate does include all taxes. CA tax is 8.75%
The car is 2007 Honda Accord EX-L-V6. Invoice according to Edmunds is $25,058 (includes -$267 regional adjustment and +$47 color adjustment.
After some haggling with the salesman (and his boss of course) they agreed they would sell the car at invoice. Prior negotiations had shown me that even if you negotiate the sales price the dealer can still play with the lease calculations. At this point I handed the salesman a printed out calculation from the lease calculator stating what I would pay monthly for a sign and drive lease. This included sales tax, acquisition fee, TTL,tire, battery, lemon law, doc fee, 56% residual and .0009 money factor. This blew them away that I was this well prepared (thanks again forum). Standing my ground the dealer accepted this after a bit more haggling except he would only give me a 55% residual(I showed him the printout to no avail). I finally agreed (my one weak moment). This increased my monthly payment by $11.
The dealer had one car on the lot that was the correct color but it had added accesssories of wheel lugs, splash guards, pin stripe, cargo tray, and premium fron and rear mats (MSRP $388). I said I didn't want them and he finally agreed to give them to me rather than order in a basic car.
So, the final deal was:
Sales Price $25,058
Acquisition fee $595
Doc fee $90
Cap Cost $25,829 (included TTL, fees, etc.)
Sales Tax 6.5%
Payments 35 payments of $348.25 (Yes, 35. The dealer paid
the first payment.
So the one less payment paid for the increased cost of the different residual and the accessories were freebees. Having the printed out calculation was key to the negotiation. Sorry this is so long but maybe someone out there can use this method to their advantage. For Central Florida buyers I recommend you try Honda of Ocala. Love the car too!!
Richard
I live in New Jersey and I'm ready to enter into a lease for an Accord. Can you please give me the name of the dealer that gave you the $190 a month lease. Thank-you
Route 23 North, Pompton Plains, NJ 07444
973-831-9500
First of all, MSRP for an Accord EX-L is $25645, not $25900. Second of all, buyout for this car is 58%, which is $14875, not $15200. Third of all, a 2000 Chevy Impala @ 125k miles in perfect condition is worth less than $2000. Fourth, we didn't have any Chevy Impalas traded in within the last month. Fifth, if you add up his down payment, his lease payments and the residual value of the car you get $24049, which would only be possible if sales tax and finance charges did not exist. Sixth and last, the deal you claim to have gotten is not even close to possible. It is not even possible on an LX.
You are doing a disservice to the customers that seek advice on this site as well as my dealership.
Honda Accord EX-L Lease
12,000 mi/yr
35 Months
Including Taxes, Registration, etc.
$2199 Down, $190/Month
Thanks
I am new to this board. Need some help with the lease Figure. Here is what I was quoted for 36 months/15K lease:
$19,846 (selling price)
money factor: .00096
Residual: 54%
Monthly: $ 256.44 (including tax)
Due at signing: 1026.44 (bank fee, first month payment and doc fee)
is that a good deal ? or can I do better. I am in NJ.
Initially I was quoted for $19,096 for the price but the dealer say that is not available for lease because Honda will not honor the $750 cash back for lease.
Any suggestion will be appreciated..
Thanks..
(If I have not explained this well enough the small print is at the website listed above.)
Also, what is the maximum amount of miles i can be allocated before being charged excess mileage? Is it 15,000 or is there a 18,000 option
Thanks in advance
2007 Honda Accord Sedan SEV6 AT...24mo...12k miles - $169/month + Tax with $2599 due at signing
*MSRP - $23,945 - Residual is $17,391.50 with a .0009 Money Factor
No other information than this at this time.
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But, if that is all they are charging you for, then so much the better.. A high residual is a good thing, if you are leasing..
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