I got my accord EX-L V6 in a 36month/12k lease for 290 per month with only the first months payment and Tax, title, and registration out of pocket (totaling 690). I think you can do better!
hey bvdj84 and everybody else. can you please tell me where you might have gotten these leases from. i am in miami and i really want an Accord EX-L V6. THANK YOU!!!
I got a great lease quote from Mike Patton Auto in La Grange, Georgia. They are a non commission dealership. They were extremely friendly. They had a fully loaded v6 navi, for I think 25k, and now, I bet they could go a bit lower. They also ship to anywhere, they also shipped to hawaii before. They will help you out. They also will do a trade in over the phone if you have one. Their prices are great, no haggle. I did not get one from there, I was going to, but I am waiting on the new accord, since I already have an 06 accord. I never really got a break down on the lease, but Call them. They actually helped me decide to keep my 06 accord til the new accord comes out. Also their not too far from you. You will get an awesome deal. Take a look at their inventory on their site, but call for the actual prices though. Good luck, let me know if you need more info. I was amazed how friendly they are, and their prices are very fair too, Also when the new accord does come out, they'll be slighlty lower than other places.
Guys just wanted to let you know. Just picked up a lease in Ohio for the Accord SE V6 for 239.89 a month. 15k year/24 month lease. First payment and fees (total of 505) due at signing. I was wondering if I got a good deal. Thanks
Dealership was at Sunnyside in Cleveland, OH. The selling price after all was said and done was something like 22k, the residual was 17k. I didn't look to see what an EX-L would cost since I wasn't looking for a car with leather. Hope that helps.
Hey carman and everybody else, this is my first time leasing a car, I can use a bit of help. I just got offered a Honda Accord EX-L V6 w/o nav, for 36 months, 15K miles per year for $340 per month. I am putting zero down, and $340 per month includes all the taxes and fees, including bank fees, DMV fees etc... (I do not need to take a penny out of pocket, everything is rolled into the payments). I am in Miami, tax is 7% a month i believe. The MSRP of the car is $27,400. Is this a good deal? If it is not, how much do you think I can get him down? I would like the car within 24 hours, so please get back to me soon! THANK YOU!!! (You can e-mail me at vaugeeee@yahoo.com)
A quick and rough calculation: looks like the "selling price" is approx. $24,300, which is about $1000 under invoice. (MSRP is $27,995 incl. destination; invoice is $25,278.) This is a decent "under invoice" amount on a lease deal. (Buyers report deals/quotes in the range of $1000-2000 under invoice - but apparently a $750 dealer cash incentive is not available on a lease.)
There may be a few hundred dollars still on the table, but overall I'd say this is a good deal. Hope this helps - perhaps others will chime in with additional thoughts.
Was wondering if someone could post (or point to) the current rates and residual percentages for the various Accord models, mileage choices and term lengths?
I'm new to the site but saw how helpful everyone seemed to be and thought someone might be able to tell me if i am getting a good deal. I am looking at Honda Accord 2007 EX V^ with Navi. I am getting a quote of 26,629 (includes the destination charge but does not includee taxes).
Did you put any $$ down to get the $239 payment? It looks like from your posts was that all you did was 239+265dealerfee for the 504 initial payment and then 239 including the taxes per month. Is this correct?
sdalia can you email me ( ohcarguy@yahoo.com ) so i can get some more information off of you. I am located in Ohio and also looking for an SE V6 lease. Thanks
Yeah that's correct. I paid 504 out the door. 239.89 a month including tax. The lease is 2 years/15k a year on the miles. SE V6. I think the only other thing coming my way in forms of payment is for the license plates.
Yeah that's correct. I paid 504 out the door. 239.89 a month including tax. The lease is 2 years/15k a year on the miles. SE V6. I think the only other thing coming my way in forms of payment is for the license plates.
I have a buddy at a honda dealership in Ohio and I just don't see how you got this deal. Why would a dealer go 2000 below invoice?
The is the response from honda dealer friend about sdalia's deal: Ok, here we go. We called the zone to make sure nothing is on that we didn’t hear about. Nope But I did make a mistake on the residual, which is 69%. That gets you to 282, and then Jim said well, let’s get crazy if we can, and go under invoice by about 400. So, you can get 260., but that’s a loser as well. Just not as much of a one. So if they are still doing that, it’s a helluva deal, Buddy. Let me know. (This one came right from our manager, and it still isn’t quite there. If it was within 10 bucks, I’d still love your business, but I couldn’t fault you over 21 dollars. That’s pretty significant.
I have a buddy at a honda dealership in Ohio and I just don't see how you got this deal. Why would a dealer go 2000 below invoice?
The is the response from honda dealer friend about sdalia's deal: Ok, here we go. We called the zone to make sure nothing is on that we didn’t hear about. Nope But I did make a mistake on the residual, which is 69%. That gets you to 282, and then Jim said well, let’s get crazy if we can, and go under invoice by about 400. So, you can get 260., but that’s a loser as well. Just not as much of a one. So if they are still doing that, it’s a helluva deal, Buddy. Let me know. (This one came right from our manager, and it still isn’t quite there. If it was within 10 bucks, I’d still love your business, but I couldn’t fault you over 21 dollars. That’s pretty significant.
I thought it necessary to add that I am not implying that you are being less than honest, I just am wondering what the motivating factor would be for a dealership to go 2k under with seemingly no extra manufacturer support.
I've been reviewing this forum for a few days now and I've come to one conclusion. Seems to be alot of guesstimating and approximating and apparently some of the money factors and residual percentages being quoted are not all accurate.
So... let's go with what we do know. Apparently quite a few people have stated buying Accords for 1000 - 2000 below invoice. Maybe some regions have dealer cash that others do not? I don't know. Can anyone authenticate this? Most know that the "dated" current model is running down as a profitable model and of course dealers want to sell as many 2007 models as possible in order to receive as many 2008 models as they can. New model Honda's are almost always hot sellers which means higher profits.
Honda does have a pretty nice lease calculator on their site. They've had it for a number of years. (Of course you have to assume that it is using the correct MF and res % also!) Their calculator also automatically adds the acq. fee of 595 to whatever selling price you put in.
Plug in an SE V6 at a selling price of 21755 (invoice according to Edmunds) and for 24 mo 15k miles you get 287.53 (+ tax). First payment and security deposit of 300 totaling 587.53 due at lease signing (remember the calculator adds the 595 acq fee to selling price). So cap cost (selling price) here is 21755 + 595 = 22350. Of course in this example we are assuming the dealer has no "dealer fee"! Ha! Pause. Not!
Now plug in 20405. 1350 under invoice. Calculator adds the 595 and you have a selling price or cap cost of 21000. payment for 24 mo 15k mile lease is 229.73 (+ tax).
An earlier post stated that the MF was .0009 and residual was 70% for 24 mo 15k. Well i manually calculated this 21000 example (using 69% as you stated). With a MF of .0009 i get a 24mo payment of only 195.04 (+ plus tax)????
So.... I respectfully repeat my earlier request that if anyone has the knowledge of current money factors and residual percentages for various terms and models, please post. Without that info this forum will continue to be full of guesstimations and approximations. Cheers
Just googled this dealer ad from Tennessee. When was the last time you saw a dealer ad disclosing money factors and residual percentages? Of course I have no way of confirming the rates and residuals for accuracy. Strange that an SEV6 has a higher % than an EXV6. These are for 36 mo and to be honest I have a bit of trouble understanding why an average mileage driver would not go 24 instead of 36 since in some cases the 24 payment is close and can be lower!
Not sure if you can post a web link here so here is the disclosure text from the ad and link to ad below.
All advertised stock numbers include $399.50 processing fee, but do not include taxes, tags, title or cost of optional equipment selected by the purchaser. Lease payments all plus tax.
CIVIC: 42 month lease 239.00, 12k per year, resideual 56%, money factor 2.70, 0 due at signing.
ACCORD: 36 month lease, 12k per year. SE: 4 cylinder 258.00, residual 56%, money factor .0096, 0 due at signing. SE: V-6 258.00, residual 59%. EX: V-6 323.00, residual 57%, money factor .0090, 0 due at signing. Lease payments “SUPER PREFERRED” rate with approved credit. Sale prices good through April 10, 2007.
I'll check my lease paperwork and see if i can give you the exact numbers they are using. I don't think there is a money factor on it. But at least it'll give you the price they are using and the residual they are using. If I remember correctly it was appox 21k price, 17.5 residual. I really have no idea why they did this deal ,especially after seeing the lowest on this fourm at 270 before I went in. I was shocked that the salesperson actually got me the price at 240 a month. I was planning on buying a car in another two months. Maybe they had a quota for the day or something. I'll try to investigate some more for the sake of everyone else.
I'd appreciate your trouble for the exact residual and cap cost and number of months. Knowing these (and payment before any tax) one can back out the principal and calculate the money factor.
$289 per month with 0 down? Did you put down TTL? Or processing fee? If not what was the selling price/ residual/money factor? I have been negotiating with several dealers and not anywhere near $289. Was your lease 36mo/12k? Thanks
Hi there, I got a brand new 2007 EX-L V6 6 speed sedan for 289 per month + tax (5% in massachusetts) with 690 due at signing. 300 of the 690 was the first months payment, and the rest of it was the documentation fee, including vehicle prep, registration, tags, inspection. That is all I had to pay at the start of the lease. The selling price was 24,600, though I don't think that they were including the aquisition fee. That was probably residulalized. Not sure of the residual and money factor, but i can find out if you want.
You need to visit the Prices Paid and buying Experiences forum. You also need to review prior posts. There you will find your answers to why they are selling so low. Your "Buddy" who calls a below invoice deal a "loser", is full of it. The listed invoice is not what the dealers pay for these cars. He, apparently, is the LAST person yo should be getting information from. The "incentive" rumour right now is to move the 2007s in order to increase the allotment from Honda of 2008s. The 2008s will sell for a sweet profit for months after they arrive making it worthwhile to move the 07s at slim profit margins. Use the Lease Calculator at Leaseguide.com . The lease calculator you are using on Hondas website is useless.
Josh (thats my name too) thanks for the reply. Those numbers are more in line with what I am getting quoted. I thought from your first email the 289 included tax. I have been quoted similar numbers, though the 24,600 seems a little high. I think I am going to wait until May closer to when my current lease is up. If you have the MF and residual handy that would be great.
Need to keep in mind one aspect that can make figuring out somone else's deal difficult. Dealers that are in more competitive lease areas want to get the payments as low as they can and at the same time make as much (or lose as little) as they can.
Many do this is by adding extra equipment which lowers the payment. They are able to residualize this equipment at retail just like the MSRP of the car. This in turn raises the residual more than it raises the selling price thus lowering the principal being repaid over the lease term. Of course by doing so, this puts you in a poorer position at lease end, but does give you lower payments.
I always thought the opposite was true. That extra equipment is not added to the residual at retail but at a greatly reduced rate, if at all. So you end up paying for it on the vehicle, but it doesnt raise the residual an equal amount. So the spread between the resid and the cap cost is greater causing larger payment. In fact, many hi end options, like NAV, get you a reduced residual percentage in most cases.
$2,370.00 due at signing - with $279.00 month with 12K miles per year of $299.00 month with 15K miles per year. Any thoughts or suggestions I am open to as I haven't leased a vehicle in about 10 years and feel like I am so uneducated in this area - Thanks!
That would only be true if you were being charged more for the option than the lender would allow to be residualized.
We usually did this on a few vehicles so we could beat out competitors advertised lease payments. At the risk of dating myself here is what we used to do. Of course this varied by lender or manufacturer finance arm and as far as I know lenders may not even allow you to residualize dealer added options today or at least for the amounts we used to get away with. Someone else here may be able to verify this.
Doing this would be most effective on a short term 36 or even better on a 24 month lease. The higher the residual percentage a car had, the greater the affect. Honda is a decent example as you pick a model and that's it. An SE sedan is an SE sedan other than choice of engines and transmission. Plus they have some of the strongest residuals on the planet. Any options are dealer installed and if you are familiar with the Honda site you've seen that you can even price your car out and include the Honda dealer installed options. These options increase the MSRP. Way back when in addition to the dealer installed Honda options we would take a car and add custom wheels, change out the cloth interior for leather and put in a sunroof, etc. The lender would allow us to residualize the retail value of the addition. Let's say $995 for a sunroof. Our cost was say $400. On a car with a 65 or 70 % residual we would basically be giving away the sunroof for cost and gain 65 or 70% of 995 to add to the residual. We could give a customer more car for less per month. Or at least more car for the same per month. I don't understand how you could end up with a lower residual on an Accord with NAV than one without. Unless the % for some reason is lower on the NAV model(?).
I've only been participating in this forum for a few days as I'm thinking about an Accord for my wife. I asked a couple days ago for someone to post the current money factors and residual percentages however it does not seem that anyone that frequents this forum has them for all the models. I called a Ford dealer friend who knows a Honda dealer to get the info as well as any dealer cash Honda may be providing. I will post when I get it.
Thanks so much! I truly appreciate it! I was also wondering can I negotiate a lease such as down payment and monthly payments, etc.??? I'm assuming so, but then again I don't want to assume anything when I walk into the dealership. I sure have my homework cut out for me, but this forum is fabulous which will make it much easier once I understand it all.
Seems a bit high. I recieved an "internet special" from Brewster Honda in NY for a 2005 EXL V-6 w/out navigation for $24,599.00 I was adivsed by this forum it was an OK deal. Some people on this forum were advising that you shouldn't be paying more than $25,000.00 with navigation. Hope this helps.
Check this ad from a Tenn dealer. I've come to learn that they are a AutoNation dealer. One of the largest groups in the country. The add shows an EX V6, but the description says "leather" for 25,278 or 323.00 for 36 mo 12k miles 0 (zero) down at signing. print it and walk into your dealer with it and negotiate down from there!
gpsac, Go back to post #1091 and read from there. The numbers for April were provided by Car_man in a few different posts. You should be able to find what you need.
The percentages represent the projected value of the vehicle. Besides history, factors which affect a vehicles future value are of course age, mileage and condition. Honda says that a 3 yr old EXLV6 driven 12k miles per year should be worth 57% of the original MSRP. Now you deduct the 57% from the selling price which gives you the principal portion of the lease (loan) that needs to be repaid (keeping in mind that Honda does require an acquisition fee of 595.00 and a refundable security deposit = to the monthly payment rounded up to the next 25.00 increment. i.e. 289.00 pymt. = 300.00 deposit). To determine the monthly cost for use (interest) simply add the agreed selling price to the residual and multiply by the currect money factor for that particular vehicle/term/mileage. Quick example: MSRP 20,000 w/ 75% res for 24 months and .0009 money factor Selling price agreed is 19000. Residual 15,000 (20000 x 75%)
19000 -15000 =4000 /24 = 166.66 (principal to repay)
19000 +15000 =34000 x .0009 = 30.60 monthly cost (interest)
166.66 +30.60 =197.26 (most states then cahrge tax only on payment)
Thanks, I received a qoute of $2,370 down which consists of, taxes, aquisition, first payment and security deposit with a monthly of $279.00 for a EXL V6. I'm so confused by all these numbers and not sure where to begin?? I don't think I figured correctly - is this a good or bad deal?? Any ideas or suggestions as I a newbie at leasing - thanks! Where do dealerships make the most money, is it the initial cost or over the life of the lease or a combo of both??
Finally have my lease paper work infront of me for the V6 SE. Here are the numbers for you. Agrred value for the vehicle 21057.87, gross cap cost 22053.93, no cap cost reduction, residual value 17143.05, depreication 4910.88, rent charge 846.48, total base payments 5757.36, 24 month lease, monthly payment 239.89
For a car lease calculation, is your state tax (mine being 8.25%) multiplied by the agreed selling price or is it the amount you are paying in the lease over the lease term ie 36 mo?? You monthly payment x 36 months?? Thanks
First you have to forget the word lease. The dealer is selling a car and the lender is financing or leasing it to you. The profit a dealer makes is the amount they sell the car above what their final cost is. Plus any profit they make by selling you any additional items. No different than if you walk in and paid cash.
I approach car buying (or leasing) from the position that I am going to get the best possible deal for "me". This is to spend as little as possible for the most car I can get. That's why unless there is some unusual circumstance, I always lease with 0 down for as short of a term as affordable. With the low money factors on Accords right now, I'd rather put that cash into my 401k than to put it into anything that is going to eventually wear out and be worth nothing.
I think you were looking at a 36 mo 12k mile lease. Invoice on the EXL V6 (according to Edmunds) is $25,415 including destination charge. Let's assume that a dealer will sell one for invoice (they will).
Now assuming we can negotiate an invoice deal as above (and let’s assume that the dealer is not charging a "doc fee" or "dealer fee"), the payment with 0 down payment for 36mo would be approximately 299.00 (plus tax if you live in a state that collects tax only on payment and down payment). Now to drive away you would only write a check for the first payment, your refundable security deposit of 325.00 and Honda’s required acquisition fee of 595.00. Approximately $1,194.00 (+ tax on payment). Or you could even have them add that to the price to drive off with 0 out of pocket. Of course that would raise the payment some.
Now $1,000 down to reduce the selling price would lower the payment to approximately 272.00 + tax. Roughly $27.00. $2000 down should then lower it to roughly 245.00 + tax.
Now take your $2,370.00 up front cost. Deduct 595.00 acq. fee, 279.00 payment, 300.00 sec dep which leaves us now with 1196.00.
Not knowing which state you reside and how tax is collected, I will assume that the $1,196.00 is cap cost (selling price) reduction or down payment. So if 0 down at invoice gave us 299.00 and $1,000 down gave us 272.00, I would have to say that your 279.00 with $1,196 down looks like a pretty decent deal.
In order to combine this response with other questions being asked in this forum, “is getting a car at invoice a good deal right now?” or “are dealers getting $1,000 - $2,000 back from the factory?”.
I asked a close acquaintance who is a Ford dealer to check with a friend of theirs who happens to be a Honda dealer. I do mean “dealer”. Not sales manager or internet sales manager. This dealer is in a state up north and I did not find out if incentives were different in different regions, but I seriously doubt it. Currently Honda is providing him with $750.00 cash on all Accords. That’s it. It does not matter if it is a purchase or lease. He get’s $750.00.
Now does that mean that people who are saying that they are buying Accords for 1000 – 2000 below invoice are lying, mistyped or remembered incorrectly when posting? I would not assume so. Some dealers may be willing to lose some money on 2007 models just to increase their 2008 allocation on the new Accord where they will more than likely make up for any 2007 loses.
Bottom line. With the information I have and assume to be true, if you can get an Accord for invoice or better yet split the 750.00 you’d be getting a pretty good deal.
*Since it’s been too many years since I calculated leases (not to mention by hand) if anyone detects an error please let us all know.
Based on these numbers it does not appear that tax has been added to the payment. Which state do you live in? A few states collect tax on the selling price whether it is a lease or finance. Most collect tax on "money spent". Downpayment (not usually on any fees paid up front like acq fee)and payment.
THANKS A MILLION! I'm on my way over to the dealership now to see what numbers they are willing to do. I have all my edmunds info, so I hope its fruitful. I'll post as to how I made out - THanks Again!
First you have to forget the word lease. The dealer is selling a car and the lender is financing or leasing it to you. The profit a dealer makes is the amount they sell the car above what their final cost is. Plus any profit they make by selling you any additional items. No different than if you walk in and paid cash.
That is probably the biggest mistake folks make when trying to do a lease. They completely forget that step one in ANY car transaction is negotiating the lowest price. They do it a lot with these "Advertised specials" that are run - they just walk in and say "I want that" and there is PLENTY of profit in the dealer at that point - and lots more savings for the buyer if they negotiate for it.
In general the biggest mistake folks make is "playing payments" with the dealer. They say "I don't want to pay more than $400 a month" and the dealer gives them a REALLY bad deal that is $399.99 per month.
Just got back from dealership: Accord EXL V-6 Negotiated Price 25,700.00 Down Pymt $3,366 (includes, taxes, 1st mo. pymt, security deposit, bank fee, plates and registration) Lease for 36Mo @ 279.00
Or Down pymt of $2,000.00 with same terms for $318.36 mo Or down pymt of $1,000.00 with same terms for $348.00 mo
Comments
I got a great lease quote from Mike Patton Auto in
La Grange, Georgia. They are a non commission dealership. They were extremely friendly. They had a fully loaded v6 navi, for I think 25k, and now, I bet they could go a bit lower. They also ship to anywhere, they also shipped to hawaii before. They will help you out. They also will do a trade in over the phone if you have one. Their prices are great, no haggle. I did not get one from there, I was going to, but I am waiting on the new accord, since I already have an 06 accord. I never really got a break down on the lease, but Call them. They actually helped me decide to keep my 06 accord til the new accord comes out. Also their not too far from you. You will get an awesome deal. Take a look at their inventory on their site, but call for the actual prices though. Good luck, let me know if you need more info.
I was amazed how friendly they are, and their prices are very fair too, Also when the new accord does come out, they'll be slighlty lower than other places.
Good Luck! Call them!!
What dealership was this at? What was the selling price and residual value? Did you look into how much an EX-L would run?
There may be a few hundred dollars still on the table, but overall I'd say this is a good deal. Hope this helps - perhaps others will chime in with additional thoughts.
thanks
I'm new to the site but saw how helpful everyone seemed to be and thought someone might be able to tell me if i am getting a good deal. I am looking at Honda Accord 2007 EX V^ with Navi. I am getting a quote of 26,629 (includes the destination charge but does not includee taxes).
BTW, I am in Newark, NJ.
Thanks in advance for your reply!
Did you put any $$ down to get the $239 payment? It looks like from your posts was that all you did was 239+265dealerfee for the 504 initial payment and then 239 including the taxes per month. Is this correct?
Thanks
Hope that helps.
Hope that helps.
The is the response from honda dealer friend about sdalia's deal:
Ok, here we go. We called the zone to make sure nothing is on that we didn’t hear about. Nope But I did make a mistake on the residual, which is 69%. That gets you to 282, and then Jim said well, let’s get crazy if we can, and go under invoice by about 400. So, you can get 260., but that’s a loser as well. Just not as much of a one. So if they are still doing that, it’s a helluva deal, Buddy. Let me know. (This one came right from our manager, and it still isn’t quite there. If it was within 10 bucks, I’d still love your business, but I couldn’t fault you over 21 dollars. That’s pretty significant.
The is the response from honda dealer friend about sdalia's deal:
Ok, here we go. We called the zone to make sure nothing is on that we didn’t hear about. Nope But I did make a mistake on the residual, which is 69%. That gets you to 282, and then Jim said well, let’s get crazy if we can, and go under invoice by about 400. So, you can get 260., but that’s a loser as well. Just not as much of a one. So if they are still doing that, it’s a helluva deal, Buddy. Let me know. (This one came right from our manager, and it still isn’t quite there. If it was within 10 bucks, I’d still love your business, but I couldn’t fault you over 21 dollars. That’s pretty significant.
So... let's go with what we do know. Apparently quite a few people have stated buying Accords for 1000 - 2000 below invoice. Maybe some regions have dealer cash that others do not? I don't know. Can anyone authenticate this? Most know that the "dated" current model is running down as a profitable model and of course dealers want to sell as many 2007 models as possible in order to receive as many 2008 models as they can. New model Honda's are almost always hot sellers which means higher profits.
Honda does have a pretty nice lease calculator on their site. They've had it for a number of years. (Of course you have to assume that it is using the correct MF and res % also!) Their calculator also automatically adds the acq. fee of 595 to whatever selling price you put in.
Plug in an SE V6 at a selling price of 21755 (invoice according to Edmunds) and for 24 mo 15k miles you get 287.53 (+ tax). First payment and security deposit of 300 totaling 587.53 due at lease signing (remember the calculator adds the 595 acq fee to selling price). So cap cost (selling price) here is 21755 + 595 = 22350. Of course in this example we are assuming the dealer has no "dealer fee"! Ha! Pause. Not!
Now plug in 20405. 1350 under invoice. Calculator adds the 595 and you have a selling price or cap cost of 21000. payment for 24 mo 15k mile lease is 229.73 (+ tax).
An earlier post stated that the MF was .0009 and residual was 70% for 24 mo 15k. Well i manually calculated this 21000 example (using 69% as you stated). With a MF of .0009 i get a 24mo payment of only 195.04 (+ plus tax)????
So.... I respectfully repeat my earlier request that if anyone has the knowledge of current money factors and residual percentages for various terms and models, please post. Without that info this forum will continue to be full of guesstimations and approximations. Cheers
Not sure if you can post a web link here so here is the disclosure text from the ad and link to ad below.
All advertised stock numbers include $399.50 processing fee, but do not include taxes, tags, title or cost of optional equipment selected by the purchaser. Lease
payments all plus tax.
CIVIC: 42 month lease 239.00, 12k per year, resideual 56%, money factor 2.70, 0 due at signing.
ACCORD: 36 month lease, 12k per year.
SE: 4 cylinder 258.00, residual 56%, money factor .0096, 0 due at signing.
SE: V-6 258.00, residual 59%.
EX: V-6 323.00, residual 57%, money factor .0090, 0 due at signing.
Lease payments “SUPER PREFERRED” rate with approved credit. Sale prices good through April 10, 2007.
http://dpa.xtn.net/attachments/display_ads/WestSideHonda4_4-10.pdf
$289 per month with 0 down? Did you put down TTL? Or processing fee? If not what was the selling price/ residual/money factor? I have been negotiating with several dealers and not anywhere near $289. Was your lease 36mo/12k? Thanks
I got a brand new 2007 EX-L V6 6 speed sedan for 289 per month + tax (5% in massachusetts) with 690 due at signing. 300 of the 690 was the first months payment, and the rest of it was the documentation fee, including vehicle prep, registration, tags, inspection. That is all I had to pay at the start of the lease. The selling price was 24,600, though I don't think that they were including the aquisition fee. That was probably residulalized. Not sure of the residual and money factor, but i can find out if you want.
--Josh
The "incentive" rumour right now is to move the 2007s in order to increase the allotment from Honda of 2008s. The 2008s will sell for a sweet profit for months after they arrive making it worthwhile to move the 07s at slim profit margins.
Use the Lease Calculator at Leaseguide.com . The lease calculator you are using on Hondas website is useless.
Thanks
Many do this is by adding extra equipment which lowers the payment. They are able to residualize this equipment at retail just like the MSRP of the car. This in turn raises the residual more than it raises the selling price thus lowering the principal being repaid over the lease term. Of course by doing so, this puts you in a poorer position at lease end, but does give you lower payments.
Any thoughts or suggestions I am open to as I haven't leased a vehicle in about 10 years and feel like I am so uneducated in this area - Thanks!
We usually did this on a few vehicles so we could beat out competitors advertised lease payments. At the risk of dating myself
Doing this would be most effective on a short term 36 or even better on a 24 month lease. The higher the residual percentage a car had, the greater the affect. Honda is a decent example as you pick a model and that's it. An SE sedan is an SE sedan other than choice of engines and transmission. Plus they have some of the strongest residuals on the planet. Any options are dealer installed and if you are familiar with the Honda site you've seen that you can even price your car out and include the Honda dealer installed options. These options increase the MSRP. Way back when in addition to the dealer installed Honda options we would take a car and add custom wheels, change out the cloth interior for leather and put in a sunroof, etc. The lender would allow us to residualize the retail value of the addition. Let's say $995 for a sunroof. Our cost was say $400. On a car with a 65 or 70 % residual we would basically be giving away the sunroof for cost and gain 65 or 70% of 995 to add to the residual. We could give a customer more car for less per month. Or at least more car for the same per month. I don't understand how you could end up with a lower residual on an Accord with NAV than one without. Unless the % for some reason is lower on the NAV model(?).
Hope this helps.
http://dpa.xtn.net/attachments/display_ads/WestSideHonda4_4-10.pdf
Go back to post #1091 and read from there. The numbers for April were provided by Car_man in a few different posts. You should be able to find what you need.
EX-L 4 .00096; 56% @ 15k; 58% @ 12k 36 mo
EX-L V6 .00090; 55% @ 15k; 57% @ 12k 36 mo
EX V6 .00090; 55% @ 15k; 57% @ 12k 36 mo
SE 4 .00096; 54% @ 15k; 56% @ 12k; 36 mo
SE V6 .00090; ? @ 15k; 59% @ 12k; 36 mo
LX 4 .000?; ?% @ 15k; ?% @ 12k; 36 mo
LX V6 .000?; ?% @ 15k; ?% @ 12k; 36mo
EX-L V6 .00090; 65% @ 15k; 67% @ 12k
EX-L V6 w/ NAV .00090; 63% @ 15k; 65% @ 12k
I'm also trying to find out the current factory to dealer incentives.
The percentages represent the projected value of the vehicle. Besides history, factors which affect a vehicles future value are of course age, mileage and condition. Honda says that a 3 yr old EXLV6 driven 12k miles per year should be worth 57% of the original MSRP. Now you deduct the 57% from the selling price which gives you the principal portion of the lease (loan) that needs to be repaid (keeping in mind that Honda does require an acquisition fee of 595.00 and a refundable security deposit = to the monthly payment rounded up to the next 25.00 increment. i.e. 289.00 pymt. = 300.00 deposit). To determine the monthly cost for use (interest) simply add the agreed selling price to the residual and multiply by the currect money factor for that particular vehicle/term/mileage.
Quick example:
MSRP 20,000 w/ 75% res for 24 months and .0009 money factor
Selling price agreed is 19000.
Residual 15,000 (20000 x 75%)
19000
-15000
=4000 /24 = 166.66 (principal to repay)
19000
+15000
=34000 x .0009 = 30.60 monthly cost (interest)
166.66
+30.60
=197.26 (most states then cahrge tax only on payment)
Finally have my lease paper work infront of me for the V6 SE. Here are the numbers for you. Agrred value for the vehicle 21057.87, gross cap cost 22053.93, no cap cost reduction, residual value 17143.05, depreication 4910.88, rent charge 846.48, total base payments 5757.36, 24 month lease, monthly payment 239.89
Thanks
I approach car buying (or leasing) from the position that I am going to get the best possible deal for "me". This is to spend as little as possible for the most car I can get. That's why unless there is some unusual circumstance, I always lease with 0 down for as short of a term as affordable. With the low money factors on Accords right now, I'd rather put that cash into my 401k than to put it into anything that is going to eventually wear out and be worth nothing.
I think you were looking at a 36 mo 12k mile lease. Invoice on the EXL V6 (according to Edmunds) is $25,415 including destination charge. Let's assume that a dealer will sell one for invoice (they will).
Now assuming we can negotiate an invoice deal as above (and let’s assume that the dealer is not charging a "doc fee" or "dealer fee"), the payment with 0 down payment for 36mo would be approximately 299.00 (plus tax if you live in a state that collects tax only on payment and down payment). Now to drive away you would only write a check for the first payment, your refundable security deposit of 325.00 and Honda’s required acquisition fee of 595.00. Approximately $1,194.00 (+ tax on payment). Or you could even have them add that to the price to drive off with 0 out of pocket. Of course that would raise the payment some.
Now $1,000 down to reduce the selling price would lower the payment to approximately 272.00 + tax. Roughly $27.00. $2000 down should then lower it to roughly 245.00 + tax.
Now take your $2,370.00 up front cost. Deduct 595.00 acq. fee, 279.00 payment, 300.00 sec dep which leaves us now with 1196.00.
Not knowing which state you reside and how tax is collected, I will assume that the $1,196.00 is cap cost (selling price) reduction or down payment. So if 0 down at invoice gave us 299.00 and $1,000 down gave us 272.00, I would have to say that your 279.00 with $1,196 down looks like a pretty decent deal.
In order to combine this response with other questions being asked in this forum, “is getting a car at invoice a good deal right now?” or “are dealers getting $1,000 - $2,000 back from the factory?”.
I asked a close acquaintance who is a Ford dealer to check with a friend of theirs who happens to be a Honda dealer. I do mean “dealer”. Not sales manager or internet sales manager. This dealer is in a state up north and I did not find out if incentives were different in different regions, but I seriously doubt it. Currently Honda is providing him with $750.00 cash on all Accords. That’s it. It does not matter if it is a purchase or lease. He get’s $750.00.
Now does that mean that people who are saying that they are buying Accords for 1000 – 2000 below invoice are lying, mistyped or remembered incorrectly when posting? I would not assume so. Some dealers may be willing to lose some money on 2007 models just to increase their 2008 allocation on the new Accord where they will more than likely make up for any 2007 loses.
Bottom line. With the information I have and assume to be true, if you can get an Accord for invoice or better yet split the 750.00 you’d be getting a pretty good deal.
*Since it’s been too many years since I calculated leases (not to mention by hand) if anyone detects an error please let us all know.
That is probably the biggest mistake folks make when trying to do a lease. They completely forget that step one in ANY car transaction is negotiating the lowest price. They do it a lot with these "Advertised specials" that are run - they just walk in and say "I want that" and there is PLENTY of profit in the dealer at that point - and lots more savings for the buyer if they negotiate for it.
In general the biggest mistake folks make is "playing payments" with the dealer. They say "I don't want to pay more than $400 a month" and the dealer gives them a REALLY bad deal that is $399.99 per month.
Dennis
Accord EXL V-6
Negotiated Price 25,700.00
Down Pymt $3,366 (includes, taxes, 1st mo. pymt, security deposit, bank fee, plates and registration)
Lease for 36Mo @ 279.00
Or Down pymt of $2,000.00 with same terms for $318.36 mo
Or down pymt of $1,000.00 with same terms for $348.00 mo
Any thoughts??