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Comments
24 month
.00009 money factor
msrp 23,495
selling price 21,562
residual 17,391
$256/mo. + tax with 1st month + tax due at signing
Any comments on merits of this deal?
Re the lease itself: I'm missing about $20/month in payments when I run the numbers ($234 instead of $256). I've put the $595 acquisition fee into the cap cost, but nothing else. So - what other fees is the dealer putting into your cap cost to get the payment to $256? Looks like there's approximately an additional $500 in there to be accounted for.
Later this evening I plan to execute the following deal. Please note that all of the relevant documents have been prepared, but not executed.
$1,000 Total at start (includes capitalized cost reduction of approx. $670, 1st payment, tax, tag, miscellaneous lemon law fee, etc.).
$272.88 per month (includes 6% sales tax).
Any Thoughts?
I have to agree with "rujo" about the deal. i get 234/month before tax with the purchase price of 21562. Also the final MSRP is 23945 for the SE-V6. Additional cost of ~$510 are in there somewhere to get the monthly payment to 256. Hope that helps.
This lease offer is a bit confusing, since a selling price of $24,272 gives us the $282.22/mo. payment - then "fees" of $1285 bring us to a total cap cost of $25,557, which results in your pre-tax payment of $319.08/mo.
A more straightforward way to look at the lease deal is: selling price of $24,962 (as you've indicated) plus the acquisition fee of $595 - resulting in the same $25,557 cap cost as above. Perhaps there's some advantage to the dealer in writing the lease as above. Seems like no harm/no foul as long as the bottom line number - the cap cost - remains the same.
Here's a quick buy/lease comparison:
Financing $23,962 + $1857 sales tax over 3 years at 4.99% totals to $27,853 (you might get a better rate; you might finance longer than 3 years; etc. - but this is a base to work from). If you buy the car at lease end you'll have spent $29,228 (excluding tags/license). So a $1375 difference in this scenario. (Note: if you were to finance $23,962 + tax at Honda's currently offered 2.9% for 36 months, you'd have spent $26,990. Pretty attractive finance rate if you can swallow the monthly payment.)
My own view is that unless you know you want to own this car long term, the lease deal is pretty good. But it really does depend on your priorities. I'd say if you want to lease, I'd try to negotiate some more off the selling price; that selling price of $24,962 is only invoice minus $316. Perhaps a point halfway between the proposed $24,962 lease price and the $23,962 buy price?
PS: I see in the "buy" forum you've got an even lower purchase offer - things are lookin' good!
Enjoy your new car - I have for over a year now. I'm looking forward in 22 months to getting another one! :shades:
I currently have a 06 accord SE, I am currently leasing this car and have 20months left. I have the opportunity to upgrade my car to an EX-L with navi, for about the same price I am paying now. I need some advice on whether or not I should do this. I want the new 2008 accord, but they will go for MSRP. 2007 model accords having great deals. Therefore, if I went ahead and upgraded, keep that car for awhile, then trade for the 08 when all the excitement is down and they run a special on them. I really am stuck, I love my SE, but I want a sunroof and it will be nice to have the navi. It is one of those situations where I do not need it, but just want it. I wanted sunroof from the get go too. What would you do in my situation. Is it worth it to go up from an SE to an EX-l Navi? If you can offer any advice, that would be awesome!
Brian
Not knowing the numbers, I can tell you right off that financially it would be better to wait until the 08's have been out for awhile and you have 6 months or less to go on your lease to trade up. Honda may be willing to pull you out of your lease to get you into a new one at little to no cost by then. It's not that long, only 14 months - time flys!! :shades:
Of course my payment would go up some, due to moving up in car, but my lease would be the same time frame, 36month, 12k a year. They are offering me 23k for an EX-L, now with the navi, it might go up a little, my SE now, was priced at 22k, and then I wasn't familiar with the game, and the 06 change was fresh too, so might not have been able to negotiate the price. I am too the point of where my payoff is the same as my trade in, so I am interested in trading. But how cool would it be to be driving one of the first 08 accords, but with the great deals on the 07, who would pass that up. I am really stuck. I been told, hey go for it, if that is what you want, have fun, and then another is, you already got a great car, don't waste your money on upgrading. Seriously, is the EX-L totally worth it? Thanks again for any help!
2007 Accord Sedan EX-L w/NAV
36 Months/36,000 Miles
MSRP: $27,795
Invoice: $25,098 (incl. $595 acquisition)
Selling Price: $24,495 (incl. $595 acquisition)
Residual: $15,565 (56%)
MF: 0.00096
Out-of-pocket: $582.90 (incl. first month payment & no CCR)
Monthly Payment: $286.51 + $23.64 tax (CA) = $310.15
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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 end of your lease and have to pay an excess mileage penalty.
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A capitalized cost reduction is a down payment that consumers make on leases. Making a capitalized cost reduction reduces the amount financed and in turn the monthly payment of leased vehicles. Having said this, it really isn't a good idea to make a cap cost reduction when leasing. Consumers who make them risk losing them of their vehicle is totaled in an accident or stolen and never recovered. You can and should lease any vehicle that you are interested in without making any capitalized cost reduction.
You definitely are better off negotiating from scratch than relying upon Honda's advertised lease payment. It's advertised payment for the Accord isn't bad, but consumers who are in an area that has a decent level of competition should be able to beat it without much trouble. Shop around for the lowest selling price that you can find for the Accord that you want. Once you have arrived at an attractive price, have the dealer that you are working with calculate your car's monthly payment using Honda Finance's buy rate lease money factor.
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Let's take a look at the deal that you were quoted. The money factor is right in line with Honda Finance's buy rate for this car. This is a good thing because it means that the dealer that you are working with is being honest with you about this car's lease program. The selling price that you were quoted for this lease looks good to me as well. If you like the car, I personally don't see any reason not to go for it.
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Just want a quick opinion regarding a lease I just signed.
2007 Accord Sedan SE 2.4 Automatic w/mud guards
24 months / 12000 miles yr.
2199.00 down includes 1st mo payment 218.11
14887.00 residual
218.33 /month includes "taxes" (199.00 + 19.11)
Gross Cap Cost 21127.52
Cap Cost Reduction 1793.78 (out of the 2199.00)
Registration Fee 75.00
"Rent Charge" 788.40 I assume this is interest on amt Financed..Money Factor? isn't listed.
This is my first time leasing and plan to buy the car at the end.
Did I do OK ? and what could I have done better?
Thanks,
regguy1
No Security Deposit or other fees listed
Well I have decided to wait, to get a 2008 accord this fall. I was going to lease an 07 for an awesome price, but I totally did want to get in to a contract and then be upset that I didn't wait for the 08. Although the 08 will be crazy, and prices will be strictly priced for awhile, but hey, by then my 06 will have a bit of equity, and Ill be almost done with my current lease contract. So waiting is the best deal for me right now. It'll be totally worth it!! Bring on the New Accord!
That deal sounds good, if you plan to buy it at the end, but I pay $299 for me 06 SE, I put $1000 in trade in. Awesome payment though. If you were not going to buy it at the end then, I would say putting 2199 down is a little high, but if a lower payment means alot, then hey go for it. I think that you had to put money down, to make up the difference of price because you leases for 24months. Remember that for every $1k you put down subtracts about $20-30 off your payment, so it isnt that much considering the money down. Although keep in mind that the 08 with coming out, and when your lease is up, you will be in a great opportunity to trade in for that. Other than that I think you got a pretty good deal. How much is your payoff at the end of lease?
regguy1
the contract. I calculated the interest rate on amount financed at it comes out to 2.035% My wife doesn't care about sun roof, I like them. We were deciding between the Dk Blue or the M Red. Thanks for the feedback.
regguy1
'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
I was wondering if you knew the mf and residual info for the SE and EX 4cyl models for 24mo/12k. Thanks.
Steve
24 months
MSRP $23945 (incl. destination)
selling price $21562 (including destination)
other fees: doc fee - $499 + tax; $21 tiltle; $3 lemon law
residual $17931
money factor .0009
12000 miles/yr.
due at signing: $256.23 + 7% tax= $274.17
monthly payment: $256.23 + 7% tax= $274.17
. I like to know what a fair price is for a 48 month lease .
I traded in my 2005 like new Tribute with 19 K and got the same amount of Money I owed the bank..
I leased a Tribute 2008 with a MSRP of $22,235.00 . The car has a $ 1000.00 lease incentive. I end putting a Master Card down payment of $5,375.00.
How much should the lease be on a fair deal ?
I did post my bad experience on one on the boards ,and I am doing it again now.
Also I wrote a letter to the dealer and Mazda USA headquarters . I will give the dealer few days to answer .
on 03-20-07 during my vacation in Miami I stoped a Lehman Mazda for a repair issue covered under warranty . They did not have the part .I was looking at the new Tribute and CX 7 . I drove both and I liked the Tribute
The salesman told me that if I trade the car in ,I would get a good deal on the new car.
I asked him to calculate the lease v/s buying for both cars.
I said that I will put down around $2K., He went to his boss and came back with some figures . Leasing the Tribute was the least expensive.
Here is what happened in the manager room He told me that my total down payment is $5375.00 which include the down payment,first month payment ,taxes and fees. It sounded a bit high but I did not realize at that moment.Here is what I got on the lease . Reading it the first time its hard to understand,and sometimes if you insist on asking questions they get insulted.I asked the manager and salesman if they gave me a good deal. Both told me that I got the best deal in town.
2005 Mazda Tribute Trade in Gross allowance $12,900.00 Amount owing$ 12,900.00
Mazda Tribute 2008
Amount due at signing of lease: $ 6,375.00 ( down payment $ 5375.00 +1000.00 lease rebate )
Brake down :
capitalized cost reduction $ 5347.51
fist month payment $ 480.00
Reg. fee $ 100.00
Acquisition fee N/A
Upfront Taxes $ 378.99
Battery fee $ 1.50
Rental charge $ 62.00
Tire fee $ 5.00
Total $ 6375.00
First month payment $ 480.00 + 47 payments X 480.00. =$ 23040.00
Total Payments
( The amount you will have paid by the end of the lease : $ 28,935.00
Gross capitalized cost $ 30,602.16 + Acquisition fee $595.00 = $ 31,197.16
capitalized cost reduction $ 5347.00
Adjusted catitalized cost $ 25,849.00
Residual value $ 10,450.00
Deprection and amortization $ 15,399.20
Rent charge ( bank interest ) $ 6,133.60
Total base payments $ 21,532.80
Base payment $ 448.60 + tax $48.00 Total pay monthlly $ 480.00
Lease term 48 months.
Miles allowed 42,008 Extra mile $ 0.15
This is my beautifull lease.
Please let me know what was the dealer hiding based on my lack of information I had at that time . Did they screw me up. I know that i signed the lease but that does not stop me from contesting it.
Did the dealer do an arm lenght deal,or he took advante of me ?
Is Mazda USA happy to heat this?
Why is that you see other cars priced the same amount as for example a fully load accord for 30k, and they are priced around 30k as well, but with lower monthly payments. You go to honda and get that 30k car, but you could get a 30k audi for a lower payments per month.(also, most of the time, the Audi is more than 30k and still is a better deal) Why is that. Is there something that I am missing or is it my dealer is really giving me a price increase. I have been doing tons of research and I have come up with the conclusion that most of the time, you could get an audi or BMW for a lower cost a month than if you were to get a honda. I was just on the Audi leasing forum ,and someone got their audi for $563 a month on a 44k car, with at most 2k down. If you were to go to honda and get a fully loaded accord, for $31k, you would most definitely be paying much much more than the audi. Why is that? Is my dealer just giving me the runaround. How much should I be paying a month on a 30k car in reality. its crazy.
Thanks for any help..
Regards,
Josh
I just sometimes feel like you get a more expensive car with lower payments elsewhere, Is my dealer giving me a big hassle? I will get 2008 accord this fall, and this what I have to look forward to?
SE V6
"0" out of pocket
Money Factor .00090
Residual $14127.55
Payment $294.34
My tax is 6.5%
He never gave a cap cost
36 mo/12k lease
Or
"$590.70" out of pocket (1st payment, title and doc fees)
same figures as above
Payment $275.70
I will email back and get more information unless someone has any input on the two deals
When I mentioned to another dealer the problem I'd run into, he informed me there was a Honda Finance bulletin in early March instructing dealers on the correct way to handle this. If they calculate the residual from the $23,945 number, they are instructed to add back in the residual for the $900 Special Edition discount. Done properly, the dealer will then arrive at the residual of $14,658.55 - which, as we note, is the precise residual quoted in Honda's lease offer on the SE-V6.