2013 and earlier-Honda Accord Lease Questions

rujo

Jim -

I can't get this to compute. A gross capitalized cost of $21,367 means your net or adjusted cap cost can't be more than that figure . . . yet calculating a monthly payment on a cap cost of $21,367 with the residual and mf you quote comes to $253.74 including 6.5% sales tax.

What am I missing? Is Ohio one of those states that charges sales tax on the full price of the car, even on a lease . . . or what?

jimfireftr

Rujo thanks i also checked the calculations on leaseguide.com calculator Does gross capitalized cost include the $595 dest ? Here is the figures i have from leaseguide.com Base cap cost 21367
Cost added to lease 595
Adjusted cap cost 21962
Residual 13409
MF .0005
Sales Tax 6.5%
Monthly payment 255.27 + 16.59(tax) = $ 271.86
Depreciation $8553 Finance(rent) charge 637 Total sales tax 597 Total of all payments $9787
Rujo please email me if you can ohcarguy@yahoo.com
Should destination be included in the adjusted cap cost?
Should i be able to get a better deal on the base cap cost?
What other questions should i ask the dealer in regard the there quote?
Thanks alot

jimfireftr

Rujo again i think the dealer only gave the "gross capitalized cost"(21367) and i did not receive the "Adjusted cap cost" so i am assuming the dest charge of 595 was added. Should i be able to get the "adjusted cap cost" at $21367 ? Thank for the help

jimfireftr

OK Rujo i have it. I just spoke with the dealer and they stated the "acquisition fee" was not included in the 21367 so 21637 + 595 will be $271.95/month Rujo or anyone else, is there some wiggle room to negotiate more and get the "adjusted cap cost" lower?
Thanks again

rujo

Ok - the numbers now compute.

Negotiating the selling price of $21,367 lower is the way to make this a better deal. I may be confused, but didn't you report in another post a quote for the SE substantially lower than $21,367? It's up to your negotiating skills and your sense of what is a competitive price in your market to determine whether you can lower the price from $21,367. I would expect that you can.

So there's no confusion: Gross Cap Cost is selling price plus acquisiton fee. Adjusted Cap Cost (this is the number that the monthly payment is calulated from) should be identical to Gross Cap Cost, because you do not want to make a "cap cost reduction".

jimfireftr

Thanks Rujo yes i was quoted a better price for purchase of 20167. I was told the incentives would not apply for lease and that i could not get the price that low for a lease. Best price from same dealer for lease was 21367. So they are taking the 1200 incentive out. Any thoughts suggestions i would appreciate.

dwynne

Invoice for the SE V-6 sedan is $21,754 including destination. If the dealer is offering to lease you the car for $21,367 including destination and their dealer fee is not too high, then what are you waiting for? Sign the papers and enjoy your new Accrd.

It has been stated here and in the Edmunds incentives area that you can't combine the cheap leases with the dealer money. So either take the $1,200 off and buy or do the cheap lease.

You sounds like you are driving yourself nuts over this - the price you posted sounds good so take it. Don't worry if someone else beats your deal by $100 or something, in the end the difference in price amounts to a small fraction of the total deal and trying to grind out the last penny of the deal just wastes your time and energy.

Dennis

rujo

Jim -

I've sent you an email. I have to sign off for awhile - best of luck!

christina271

The dealer I spent most of the time with is the one my family has bought 11 cars from-2 in the past year, this would be the third. However, I also called their "sister dealership" who told me they couldn't do the 239 with 0 down for the same reason. Another dealer I called said he was going to look into it,but when he called me back he said he couldn't help me because the 2 cars he had on the lot had 150 miles on them which I said I didn't want. I think that was just an excuse because he never mentioned the deal. The last dealer I called told me he would give me the 239 with 0 down if I came in. I'm in NJ and that's in NY, but we've also purchased cars at this dealer previously so who knows. The 3 NJ dealers who won't do the deal only have 2-3 cars there, the last one has 6. Maybe that's why they may have room to do the deal. Of course what they tell you over the phone and in person could be different....

rujo

The 3 NJ dealers who won't do the deal only have 2-3 cars there, the last one has 6. Maybe that's why they may have room to do the deal.

Yes, that can make a big difference.

It may also make a difference if you take the quote from the 6-car-dealership to your preferred dealer(s). This shows them you actually have an alternative (as opposed to just trying to bargain them down) - now they have a decision to make: do they want to sell you a car or do they want to let you walk?

The best way to head off "monkey business" with the NY dealer who wants you to come in is via email - getting a clear, unambiguous deal down on paper. Once agreed to, you'll come in. Then when you arrive at the dealer (email confirmation in hand) - any b***sh** at all and you walk. No guarantees that this approach will work, but plenty of anecdotal evidence in its favor.

rpandey

Hi, uptill now I was involved in negotiating accord without navigation, but since the deals are becoming better, I tried a quote for Accord EX - L V-6 with navigation for 15K per year.
2000 at time of signing lease ( Includes tax, title, doc, acquistion, prep and first payement)
312 x 35 mths
Is this a fair deal or I am paying more.
I still do not have selling price from dealer, but looking from numbers, is it aacceptable quote.
Sales tax 6.5%

christina271

I did all of that too..gave them the dealership name and they basically said that's a great deal and if I can get it there I should go for it. It's just interesting that we bought all the cars there and now they can't help me. We bought 2 accord coupes in June of 02 when the car was being replaced with the new bodystyle and got great deals under invoice then so it doesn't make sense that they wouldn't do the same for us now.

diye

Just helped my sister to lease an EX Auto for 219/month+tax, at 12k/year, 36 month, and ZERO cash due at signing.

I don't have her contract, but per my calculation:
MSRP: 24k
Purchase Price: around 2400 below invoice
( must be this low to cover all the fees )
Residual: 0.64
Money factor: 0.0005

She paid no bank fee, no 1st month payment, no security deposit. All she paid is registration fee.

I don't know how the dealer would want to do this, there is no way I could negociate this price. They had a newspaper AD, we just walked in with the AD and they honored it.

It's good to be in Southern California.

rujo

Selling price looks to be about 21,700 - pretty much right at invoice.

passat_mx

Looks like a great deal to me. Which dealer was this? Thanks.

CarMan@Edmunds

Hi doc22steve. Here's the information that you're looking for. Honda Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2007 Accord Sedan EX 4-cylinder with leather but without navigation with 12,000 miles per year are .00065 and 57%, respectively. The money factor for an otherwise identical 24 month lease would be the same, but its residual value would be 65%. The addition of navigation reduces this car's 24 month residual value by 1% and its 36 month resid by 2%. I don't believe that Honda Finance offers 10,000 mile per year leases on Honda brand vehicles. If it does, its 10k residuals are probably 1% higher than its 12k residuals.

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CarMan@Edmunds

Hi dhs135. As long as you are making your final two lease payments, I don't see any reason why Honda Finance's damage waiver program would disappear if you turn your vehicle in early. The only reason why I could see it going away is if you were trading in your car rather than returning it to Honda Finance. I personally wouldn't get out of my lease two months early anyhow. All doing so really does is waste your final two payments. You would be better off waiting until July to get your new Accord. I suspect that Honda will have a good lease program on it then as well.

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CarMan@Edmunds

Hi ilikenewcars. I like new cars as well . 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 happy to give you my opinion of this deal if you let me know what these numbers are.

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CarMan@Edmunds

Hi dad23. Honda Finance's new June buy rate lease money factor and residual value for a 36 month lease of a 2007 Honda Accord EX-L V6 Sedan without navigation with 12,000 miles per year are .00050 and 54%, respectively.

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CarMan@Edmunds

You certainly can, eva3b. Honda Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2007 Accord Sedan LX 4-cyl. with 12,000 miles per year are .00143 and 58%, respectively. The numbers for an otherwise identical lease of an '07 Accord SE Sedan are .00143 and 55%. The numbers for a similar lease of an '07 Accord Sedan VP are .00143 and 54%.

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CarMan@Edmunds

Hi christina271. The selling prices of leased vehicles are negotiable, just as if one was paying cash for or financing them. The advertised Accord lease that you saw is a decent deal, but like most manufacturers' advertised leases I suspect that it leaves a little meat on the bone so to speak. Even though you may be able to negotiate a slightly lower selling price than the one that this least is based upon, I doubt that it will be enough lower to wipe out the entire $2,500 cap cost reduction that is mentioned in the ad. Let's do some calculations and see what would happen. If you were to lease this car with a selling price that's right at dealer invoice $25,415, it would drop this car's monthly payment to around $221 with a $2,465 cap cost reduction and to $291 with none.

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rujo

In a previous post I calculated an approximate selling price of $21,700 on this deal. But after looking at Car man's latest posts of various Accord residuals . . . I'm questioning the 64% residual. Seems high for a 36 month lease term. If the residual is lower, then the selling price is also lower.

jlanda

Hi guys
Does anyone have the current MF and RV form Honda for the SE V-4 AT and the V-6?
Also, jimfireftr posted a lease deal he got for the SE V-6 with a residual of about 63%. Is that still the current residual on the V-6? Why would it be so much higher than the V-4? I am looking at a 36month/12k lease.

diye

There was a mistake on my breakdown on my original post. I made a mistake on my spreasheet, here is the correct one:

MSRP: 24k
Purchase Price: 20,355 ( or 1400 below invoice )
Residual: 0.58
Money factor: 0.0005

Fees Rolled into monthly payment: 595 Bank fee+219 1st month payment

The dealer is Honda World in Westminster in Orange County.

eva3b

Thank you Car_Man for the updated information.

Regarding the money factor, I thought the promotion on an Accord Sedan was 0.00078, a 1.8% interest rate. Did Honda increase the rate this month up to 3.4%?

Thank you,

jimfireftr

jlanda The residual was 56% not 63% and MF was .0005 (1.2%) for the SE V6 36mo/15k

[Deleted User]

It looks like the featured lease special on the HFS website has the residual at 56%, $15677.20/$27995. And I was also wondering about someone who said they did the lease with $0 down as the special talks about the cap cost reduction, "which may be paid by the suggested dealer contribution"???

jlanda

jimfirefr-
Then help me out with something. If the residual was 56%, how come you listed the residual at $13,416 with a gross cap cost of $21,367? Based on my calculations of 21,367 x .56 = $11,965.20. Please be patient with me and forgive me for asking a dumb question, but what am I missing here? Where did I go wrong?

kyfdx

Residual % is multiplied by the MSRP, not the CAP cost..

dwynne

You can do the lease with $0 down, or more down, or any amount down. They payment may not work out to the same as that is just a "suggested" lease deal to have a nice sounding number.

In most areas the incentive can't be combined with the cheap lease deals, so there is not enough profit in the suggested deal for the dealer to give you that payment with $0 out of pocket. However, someone just posted a deal well below invoice and a lease - so either the dealer made a mistake (used the "buy" price for the cheap lease) or in some parts of the country you can combine the two. In that case, there may be enough profit+incentive to make that payment happen with $0 down.

I always evaluate the advertised lease deal to solve for the money factory and residual. Then approach the dealers looking for the lowest possible price, once I have it I can then plug in the MF and residual and figure my own deal. In areas where the cheap lease and incentives can't be combined, you have to let them know you are going to do the lease at some point to get the lease price.

Dennis

[Deleted User]

I agree with you about the down. The reason I asked was due to post #1380: "less the capitalized cost reduction (which may be paid by the suggested dealer contribution)." I think I would jump on that lease for $239/mo with no money down But I have the feeling there mighht not be THAT dealer participation...

christina271

I posted that lease info here a few days ago but have had no luck with it. I've contacted 6 dealers and none of them are going for it. The most they will take off of the down payment has been about $1000. They all claim that they don't understand what the wording is, but in the end will say that it would put them $2000 in the hole. The dealer closest to me now advertises a 3 year lease for the v6 accord for 219/month with 1999 down. I'm going to give them a call and see if they will drop that down payment at all.

dwynne

I think, as Christina also found, that this is a typo in the lease deal. At lease in my area there would be no way to get that deal to fly - the dealer would be losing money (even counting hold back) after all KNOWN incentives were applied.

In the past, they might run $199 a month for an LX with a lot of dealer profit in the deal. If you got the car for invoice or less you could about do $199 a month with little due at signing (not counting taxes). The latest deals don't have nearly so much "fat" in the negotiated price.

Dennis

dwynne

I am always suspicious for cute numbers - $219 with $1,999 sounds like a cute number. They probably rounded stuff up to get those numbers since it is unlike if you bargained down the price to near invoice (or less) that you would need exactly $1999 to get a $219 payment. The real numbers would be more odd, less cute. And the dealer is unlikely to cut the price to make a cute number, they would raise the price though.

Dennis

jlanda

Car_man
Do you have the current RV and MF for the '07 Accord EX 4 cylinder without leather 15k miles/36 months? If it is the same as the 12k numbers you posted earlier, any thoughts as to why the MF for the EX 4 cylinder is so low compared to the other models recently mentioned which are at .00143? Thanks.

wolfews6

I would like to lease an Accord for the $219 a month. I live in Northwest Ohio. Any one have any idea if this is possible.

I had a dealer in town quote $295/ mo (12,000/yr 36 month $0 down). The buy price that was quote was $20,449 for an MSRP of $23,945.

Any help or advice would be appreciated. I did not ask for residual rate used or the money factor since this was $75 a month to high and I figured that was $2,625 over the 35 payments. I might be able to get another $1,000 but I doubt the they would come down $2,625

Thanks in advance,

Matt

rujo

If the dealer's not adding bogus fees, here's how that $20,449 selling price works out in an AHFC special lease:

Selling price: 20,449
Acquisition fee: 595
Cap cost: 21,044
Residual: 13,888.10 (assuming the previously posted 58% is correct)
Money Factor: .0005 (assuming previously posted info is correct)

Monthly payment: 216.24 +tax

In this example you'd pay tags, title, dealer document fees (legitimate fees - not excessive "profit-enhancing" fees), and first month's payment upfront.

You might take these numbers to your dealer and find out why his don't match.

diye

Here is my spreadsheet to calculate my sister's deal:
Please note the negative fee of -815, it's essentially that the fee (bank fee + 1st month payment) is rolled into the monthly payment.

MSRP 23,945.00
Purchase Price 20,355.00
Downpayment: 0
Cap Cost 20,355.00
Residual Value 13,888.10

Fees -815.00

Monthly Payment
From Residual 202.28
From Interest 17.53
Total Monthly 219.80

rujo

Thanks for the details!

The purchase price plus rolled-in fees make the "adjusted cap cost" $21,170 - which calculates to the monthly payment of $219.80 plus tax. So - looks like a good deal . . . plus we now have accurate numbers which can, hopefully, be of value to other shoppers.

BTW, for others who might be looking at this deal: If we calculate the monthly payment using the approach of including the acquisition fee in the cap cost, but paying tags, title, fees and first month's payment upfront . . . monthly payment is 213.58 plus tax.

CarMan@Edmunds

Here's the information that you're looking for, jlanda. Honda Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2007 Accord Sedan SE 4-cylinder with 12,000 miles per year are .00143 and 55%, respectively. The numbers for an otherwise identical lease of an '07 Accord Sedan SE V6 are .00050 and 56%.

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CarMan@Edmunds

You're welcome, eva3b. Honda made a revision to the Accord's lease program earlier this month. It enhanced its support on Accord V6, EX, and Coupe models, but cut its support on all other 4-cylinder models.

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CarMan@Edmunds

Hey jlanda. Honda Finance's buy rate lease money factor and residual value for a 36 month lease of a 2007 Honda Accord Sedan EX 4-cylinder with 15,000 miles per year are .00065 and 56%, respectively. Honda is providing more lease support on 4-cylinder EX models than it is on 4-cylinder LX, SE, and VP models right now. If I had to make a guess, I would say that there is currently an oversupply of EX models, but the inventory level of other 4-cylinder Accord Sedans is fine.

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wolfews6

"Honda Accord Sedan EX 4-cylinder with 15,000 miles per year are .00065 and 56%, respectively."

Do you know what the money factor for the 12,000 miles per yr is? Is the EX-L the same or different.

So far I have not had any luck in obtaining a quote for an EX for $219/ mo + tax. I just emailed the dealer asking them for their calculation of the $295 a month to see where the "fluff" is. I also had another dealer tell me they don't have anything close.

atlfan

I am looking to lease a 2007 EX 4-cylinder. I have inquired with a few dealers online, and just received this back after many emails trying to get him to send me the breakdown. I think it's high compared to some of the deals I've seen on this forum, so I'd like to hear others thoughts, comments. I appreciate the help.

Here is the specials breakdown:
MSRP $23945
Cap cost $22258
Residual 58%
Money factor .00065
Amount due to signing $2799
Payment $199+tax
12000 miles
If you will not have money down,payments will raise around $90+115 per month

dwynne

For the same term the money factor should be the same, the residual should be 58% with a 12k mile per year lease.

Dennis

jacalli

HI, I live in NJ and I am looking into a Honda Accord. I spoke to several dealers and DCH paramus, says 1500 down (w all fees) and from 259 to 280 a month, (depending what model) with 15,000 miles.
Is that a good price?? Looking for the best deal. Please point me in the right direction.
CR

wolfews6

I received this via email for the $295 and the $321 rates on the EX and EX-L.
2007 Honda Accord Sedan EX - $295/month for 36 months
Tax included... 12k miles per year... $0 total due at signing... sign and drive
Residual Value - 58 % of MSRP
Money Factor - .00065
Sales Price - $21,755

2007 Honda Accord Sedan EX-L - $321/month for 36 months
Tax included... 12k miles per year... $0 total due at signing... sign and drive
Residual Value - 57 % of MSRP
Money Factor - .00065
Sales Price - $23,291

The $1,200 is only for purchases not leases, which was stated in an earlier post.

pbuch007

I was quoted $20,594 for a 2007 Honda EX-L. Note that this did include the $1,200 dealer cash. However, a lease deal could be done at $21,794. Seems like a pretty aggressive price.

rujo

If you're satisfied with the selling prices, the lease numbers are right on the money. No bogus fees lurking that I can see.

wolfews6

Not happy with those. I just posted to show how far off this is from the EX 219/mo w/ $0 down.

If I could get an EX for $219/ mo w/$0 down I would lease one. I would even lease and EX- L for around $250-$275/mo.