2013 and earlier-Honda Accord Lease Questions

johnnyboy

How can I determine if I should trade my lease or just return it. I have a 2004 Accord that is about 10,000 miles over the limit - that's about a $1,500 penalty. It is in good shape, but did have extensive repairs after an accident so I don't want the car. Just turn it in? Or may there be equity involved here? This question arose as I was looking at a car at another dealer who wanted to appraise my lease, indicating he might be able to give me some credit for a trade after paying off my buy-out. Thanks in advance.

gcar5

Just picked up my Accord...
EX-L (No Nav.)
4-Doors
V6
36 mos.
12,000/yr.
Zero down (other than first month + $250 for title, registration, etc.)
$285/mo.

nybum

I am looking to lease a honda accord for 24 months I dont usually like to go with 36 months.. well anyway I dont understant the tictacs of car leases and I dont wanna get a headache trying to understand it but I would like to ask you guys what I should expect to pay when I go to the dealer or at least what price should I aim for as for everything from the monthly payment to the risidual to cap cost ect... if any one lease an EX L accord for 24 months recently please let me knoww.. I did make one phone call to a local middleman dealer he said it would be 329 for the EX-L with leather heated seats ect.. anyway thats 24 months with 1200 for bank fees and 1st month and security just other ways to scheme some more...anyway any help would be appreciated you guys...
Thanks

nybum

thats actually a good deal thats the same price I got here in NY for a 36 mos lease but here guy wanted 1200 for 1st month and bank fee ect.... did you look into the 24 mos at all

gcar5

i did not look into 24 mos.

lccalvert_1999

Went to a Honda dealership tonight. Apparently, the .00065 is for the V6 only! The 4 cyl. rate is .00143.

wilkich84

Thanks good to know. That would seem to lower the calculated payment. Anyone have an luck getting a lower than MSRP on the $209 EX deal?

kyfdx

Hi, johnnyboy...

Lease Termination Fees and other costs would be a good spot to ask your question.

I have to say, though.. if the car has had a lot of body work, then it's doubtful you'll have any equity in it. Any good used car appraiser will see the previous damage and discount the value of the car accordingly. Fortunately, you leased the car, so that reduced value won't affect you.

regards,
kyfdx

lccalvert_1999

Picked up my Accord last night. I originally wanted the SE 4-Cyl because of price. However, Honda now has new MF rates and new residuals on the V6 Accords.

The new MF is .0005 on the V6 and also 56% Residual.

Also, lease price can be based on 'Retail' value vs. MSRP. What is the difference? Well, I ended up getting the Accord SE V6. MSRP on this car including Freight was $23,945. However, the SE has 'option' packages which included a $900 discount if they were ordered separately. Therefore, the retail price for this car according to Honda was $24,845.

Here is how everything shook out:

Retail (including freight): $24,845
Purchase Price (including acquisition fee): $18,990
Freight: $595
Sales Tax VA 3.17%: $580.17
Dealers Tax: $19.34
Processing Fee: $349
Total Delivered Price (Cap Cost): $20533.51

MF: .0005
Residual: $13,913.20

PAYMENTS: $201.12 with nothing out of pocket except first month payment.

I was impressed. I was at the dealership for hours, but worth it for this deal.

Thanks to all for the information in this thread.

angelus1

how many months is the lease for?

wilkich84

Same question as to months. I'm new to this but what's the "purchase price"?

podunk503

Here's my concerns. I would want nothing more to have a new accord ex maybe even a v6 however leasing would be ideal as full financing a car with those msrps are out of our range. I know know nothing about all this money factors and other details with in a lease. I do know we need to trade our liberty in that according to kbb our trade in is about what we owe however looking online in our area these liberty's are selling for thousands more and being that we put $3k down could we get into an accord with some equity that goes towards the accord's value and monthly payments not to fees or anything that we would lose money. Also in the same fashion is it likely for people who go into a lease with money down or equity to come out of the lease with equity? i'm sorry if this is not clear but it's as clear as we are on leasing. lol. thank you all in advance for your input.

bvdj84

If you are wanting to lease an accord, right now is the time to do it. Just do your research, send in email quotes to multiple dealers, right now you really should have a problem getting a good deal, even on a fully load accord V6. Even with no money down, your able to get an awesome deal, but just get a couple quotes first and pick the best one. Internet sales is the best way to get an even better deal. Also, you might consider selling your liberty privately, you will get more money and roll that into your lease for an even better lease on the accord. Otherwise, you won't get anything for your trade in. Residuals, and money factor are what determine a good payment. Right now, they are good. Make a move soon! V6's are more available than the 4cyls. For the normal price of the EX, you should be able to get an upper model. Good Luck! Research is key.You can do it, just don't let them pull one over on ya, walk out if they do, there are tons of dealers, and people are getting steal on the current accords right now, they are wanting to clearance them!

garycrest

Picked up an Accord exl 6 at dealer. original offer was for $296 per month before sales tax. 3 years 12,000 miles. the payment included all costs including the leasing fee.

I asked dealer to compute the sales tax. NYC rate is 8.375%. Dealer said that there would be a finance charge as I would be paying it out monthly. The total monthly cost came out to be $323.50
Is this correct shouldn't you just compute the regular sales tax on monthly cost. I didn't quibble and accepted the calculation.
The leasing document showed that the sales tax was included in the capitalized cost with n/a for sales tax. Is this the way it is done??

kyfdx

That sounds right for NY.. The tax is paid to the state upfront, so it is added into the CAP cost.

Hope that helps,
kyfdx

chuckaroo

Hi everyone,

I was wondering if the nation-wide lease offer for the Honda Accord 07 EX is a good deal already. It's because I've sent out emails for quotes, and I keep getting back the same offers that Honda is offering nation-wide.

I'm a newbie at leasing, and I've read up on money factors, residuals and such. But in terms of negotiating, how do I initiate it? Should I reply to the emails asking if they can offer a better selling price? All the quotes I've been receiving are the same so I can't really ask them to compete with a more attractive offer yet.

Any advice would be appreciated!
(-student from CA)

meralora100

I just got a quote from MD dealer. He is offering 2007 Accord V6 EX-L with net-cap cost of $22100, but he is giving me money factor of .0035. According to him, AHFC cannot let him offer super preferred rate because I am already getting such a low price on the car.

Is this true? Does AHFC has any such condition where you can't double dip (low price and low money factor)? Or the dealership just giving me bad info... Thanks.

lccalvert_1999

Sorry... 36 months. Purchase price is the price I negotiated for the vehicle. This amount, minus your residual amount is the 'depreciation' of the vehicle while you lease. Take this amount and factor in your Money Factor, add the two together and divide by 36 and you get the payments. That is if you are paying for tax, tags and license out of pocket. In this scenario, your purchase price would be your Net Capitalized cost.

lccalvert_1999

Yes... I heard that from two dealerships prior to signing my lease with Leesburg Honda. They apprently didn't care if I double dipped???

It may have been their very inexperienced sales staff. It did not appear that they understood the lease offers from Honda and I took advantage of that.

Think of it like Ford or Dodge offers that existed a year or so ago. You could get $2500 cash back or 0.9% financing, but not usually both.

lccalvert_1999

You are approaching it in the wrong way... you need to first negotiate the price of your vehicle prior to telling them you want to lease. After you have agreed on price, you can request to lease the vehicle using the current rates provided by Honda of America.

I only found one dealership that was willing to combine the apparent cash back with low rates for the lease... and that is how I got my deal. You will notice on the deal honda currently offers that they have discounted MSRP on the vehicle, but that doesn't mean you can't negotiate a better price.

chuckaroo

Too late...I've already sent out a bunch of emails stating I want to lease. But I've read somewhere on leaseguide.com that it's better to tell them you are leasing upfront rather than waiting til the end.
(link: http://www.leaseguide.com/lease13.htm)
But I guess experience overrides online advice guides.

Anyways, all is not lost. I seem to be getting better luck now. A couple SoCal dealers replied with better quotes and this seems to be the best one I've received so far:

2007 Honda Accord EX cloth 4cyl. Automatic Sedan
(MSRP $24,095)

Selling price - $21,100
term - 36 months/15k per year
money factor - .00065
residual - 56% ($13,493.20)

minimum drive offs of $558

Total monthly (tax included) - $270.13

If I'm not mistaken, I remember that the invoice price for this model is about $22,255.
(link: Car_man, "Honda Accord: Lease Questions" #1499, 12 Jul 2007 2:42 am!keywords=allin%3Amsgtext%20limit%3A.ef9da10%20host)

Does this sound like a really good deal. Seems so to me. What do you guys think? Also I have a question about minimum drive off... is that the same as the destination charge which is usually around $595?

lccalvert_1999

Ask them if the residual is based on MSRP or Retail? There is a difference and it does make a difference in your payments... not much, but anything is better than nothing. From the looks of the lease, I wouldn't do that deal. The MSRP on my vehicle was $23,845 or close to it. I'm at $200 per month. You can do better!

wilkich84

Lccalvert is right as far as the conventional wisdom about getting prices first. That's how I did a 3 series lease about 8 years ago. I have not looked at the lease guide link though.

I'm looking at the same car in SoCal and NorCal. Also, like you, I'm trying to put as little down as possible. I've sent out some quotes for prices w/o mentioning I'm leasing and Miller Honda has come in at the lowest so far. What dealer did you get your quote from?

I would try to do better as the selling price and the payments look a little high. On the prices paid forum, I've seen selling prices as low as 18,800 for an ex On a lease you won't get that low but I still think that you can get them to about $20k. The advertised deal on the EX is at around MSRP and the monthly payment is 209 with $2400 down. $270 seem high though I see that you're putting down only $595.

Let us know how it goes as I plan to pull the trigger around Labor Day.

CarMan@Edmunds

You're very welcome, chio. Congratulations on getting your new Accord. It's a great car for the money. Make sure to stop by the new Dealer Ratings & Reviews section of this site to share your thoughts on your dealer experience with everyone. Enjoy your new ride :shades: .

Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum

CarMan@Edmunds

You're right, wannacar3. Zero down is not the same as "sign and drive." Consumers who lease a vehicle through Honda Finance with no capitalized cost reduction still have to pay its $595 acquisition fee, a security deposit that is equivalent to your vehicle's monthly payment rounded up to the nearest $25 increment, and any required state taxes or fees at signing. Honda Finance will waive its security deposit requirement in exchange for an increase of .00010 in the money factor that is being used to calculate your vehicle's monthly payment.

Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum

CarMan@Edmunds

You're very welcome, Leo. I'm glad that you like this site so much. It looks like you got an excellent deal on your new Accord. Thanks for taking the time to share the details of your lease with everyone. Make sure to stop by the new Dealer Ratings & Reviews section of this site to share your thoughts on your dealer experience with others. Enjoy your new ride !

Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum

CarMan@Edmunds

Greetings carlof. I am sorry to say that $600 per month is waaay too much money for a Honda Accord. I don't remember what this car's lease program was like back in 2005, but I can work up a sample payment for you to give you an idea of how much a similar lease would cost now. According to my calculations, if you were to lease a 2007 Honda Accord Sedan EX-V6 with navigation that has an MSRP of $29,995 and a selling price of $27,222 through Honda Finance right now for 36 months with 12,000 miles per year, your zero down, pre-tax monthly payment would be around $328. As you can see this payment is only about half of what you are paying for your car and it is a brand new one, not a demo model. Of course, this assumes that you qualify for Honda Finance's top credit tier.

There's nothing that you can do about your '05 Accord lease now, so chalk it up as a learning experience. It will probably be fairly expensive to get out of your current car prior to the scheduled end of your lease, so finish it out and make sure to do more research prior to leasing your next car.

Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum

CarMan@Edmunds

Welcome geo93. The money factor that you mentioned is right in line with Honda Finance's current buy rate for this model, but I think that you should be able to negotiate a lower selling price than the one that you mentioned in your post. The full MSRP of a 2007 Honda Accord LX 4-cylinder is currently only $21,520. Its dealer invoice price is $19,584. Shoot for a selling price that is as close to dealer invoice as possible. Right now I would not be surprised if you were able to get this car for right around invoice, at most a couple hundred dollars over.

I see that you are considering making a $2,399 down payment on your lease. I always advise consumers against making down payments on leases. Those who make them risk losing part or all off them if their vehicle is totaled in an accident or stolen and never recovered. You should be better off leasing without any capitalized cost reduction.

Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum

CarMan@Edmunds

Hi kamesq. You definitely should pass on the "total loss protection." It is a waste of $23 per month. Honda Finance includes gap insurance with every lease at no additional charge, so I am not sure what this additional coverage that the dealer is trying to sell you would cover.

Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum

CarMan@Edmunds

Hi aaraji. Honda Finance's current special lease program on the 2007 Accord is a national program, so it doesn't matter what state you are in. It varies by term and mileage allowance. You never mentioned what either of these variables are, so for now I will assume that you are interested in a 36 month lease with 12,000 miles per year. Let me know if you want something different. Honda Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2007 Honda Accord EX V6 Sedan with navigation and 12,000 miles per year are .00050 and 54%, respectively for consumers who qualify for its "Super Preferred" credit tier and pay a security deposit at lease signing.

Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum

CarMan@Edmunds

Hello Andy. Here is the information that you're looking for. Through September 4th, Honda Finance's buy rate lease money factor and residual value for a 36 month lease of a 2007 Accord EX-L 4-cylinder Sedan without navigation with 15,000 miles per year are .00065 and 55%, respectively. The numbers for an otherwise identical lease of a 2007 Accord EX-L V6 are .00050 and 56%, respectively. Honda Finance charges a $595 acquisition fee on every vehicle that it leases as well as a security deposit that's equivalent to your monthly payment rounded up to the nearest $25 increment. The dealer cash that you mentioned is not compatible with this special lease program.

Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum

CarMan@Edmunds

Hey vital411. If you are in an area that has any sort of competition you should be able to do better than $1,500 over dealer invoice on a 2007 Accord. Try comparison shopping with another dealer or two.

Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum

CarMan@Edmunds

Hi nicolu1. The capitalized cost and money factor that were used to calculate your lease look outstanding to me. If you like the car, go for it.

Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum

CarMan@Edmunds

Welcome kewl80. 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.

In short, the best way to negotiate a good deal on a leased vehicle is to negotiate as low a selling price as possible and then have the dealer that gives you that price calculate your monthly payment using its buy rate lease money factor.

Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum

CarMan@Edmunds

Hi tuckmt. The selling price that you were quoted for this car looks good to me. Just make sure that the dealer that you are working with uses its buy rate lease money factor to calculate your monthly payment. Honda Finance's current buy rate for a 36 month lease of a 2007 Accord EX-L 4-cylinder Sedan without navigation is .00065 for consumers who qualify for its "Super Preferred" credit tier.

Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum

CarMan@Edmunds

Congratulations on getting your new Accord, gcar5. Don't forget to stop by the new Dealer Ratings & Reviews section of this site to share the details of your experience with everyone. Enjoy your new ride :shades: !

Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum

CarMan@Edmunds

Hi nybum. It is very important to understand how leasing works prior to negotiating with dealers. 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.

I can work up a sample lease payment on this car for you to see what kind of payment you should expect. According to my calculations, if you were to lease a 2007 Honda Accord EX-L 4-cylinder without navigation that has an MSRP of $25,645 and a selling price of $23,591 ($300 over invoice) through Honda Finance right now for 24 months with 12,000 miles per year, your zero down, pre-tax monthly payment should be around $315 assuming that you qualify for its "Super Preferred" credit tier. The payment for an otherwise identical 36 month lease would be around $275.

Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum

CarMan@Edmunds

Hi meralora100. One can either take advantage of the special lease money factors that are available on the 2007 Accord, or they can use the dealer cash that Honda is currently providing on it. I suspect that consumers who want to lease would be better off using the special money factors instead of the dealer cash.

Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum

chio

Can you please share the name of the dealership in VA you used? Thanks

wilkich84

Carman,

Looking at essentially making the same deal in So. or No. Cal. Figure $20,775 selling price, 36 mo/12k miles, same $ factor and residual, around $1000 down. Can you work out the anticipated payment? Thanks.

providince

car_man. I am trying to figure out if I can afford a lease of a accord. I am looking at either an ex- with navi on v4 or v6 for a 36/15. Our tax rate is 8.5 what sort of monthly rates would I be looking at (I should be top tier credit)? What about if I pay the tax upfront? Any help would be appreciated.

ryandbrimhall

Carman (or anyone),

I am trying to find out the money factor and residual for a new 07 Accord EX-L V6 lease. Everything I find is for 24 or 36 months but I'm looking for the 48 month data. Do you or anyone else have this info?

Help is greatly appreciated.
Thanks,
Danny

cpa3

The residual would be around 45-46%. The money factor should be the same.

fabyan

Ok, after talking with 3-4 dealers here is what I have for a 2007 EX-cloth Accord in Charlotte, NC:

12,000 miles
36 month lease
$13,888 residual
.00065 Money Factor
Upfront = first month payment($253), $199 doc fee, and $69 tag fee

Payment $253+ tax

This equates to a cost a bit below invoice.

Also, note that they quoted a Doc fee of $399 and I held out to the last and got them to at least cut it in half.

Hope this helps and i want to thank the many on here that relayed their leasing experiences. Good luck.

stevestr1

Hey Car_man, you should get in contact with carsdirect.com in El Segundo, CA. for your EX 07 accord lease (assuming you qualify for the top tier credit with 690+ credit score) is around $261 month with driveoffs only. No cap cost is ever necessary...it just makes the payment look really low.
The deal is 36 months, 15,000 miles year with 0.18 mile over. Its the very best least program through Carsdirect.com and Honda Finance..better than what is on the Honda web site. Money Factor is 0.00065. Base cap is under invoice (by about $400). Dealer cash is about $500 and you are trading the extra $1,000 dealer cash balance for the super duper Honda Financing rate of 0.00065...which is a money factor of 1.56% (0.00065 x 2400). You will NOT find a better rate anyone for any car lease. Cars Direct does not deliver to N. Cal but you would have a great time in Venice Beach after picking up your brand spankn' new Accord. I encourage you to bump the deal up to a 2.4L EXL...you are getting more than your money's worth for the extra $1,500 month++++ the leather (which is all residualized)...climate Zone AC, 8 way power driver seat, XM radio, and other goodies. Its about $283 month + tax with around $573 drive off's only...around $304 month. Nobody is going to give you a better deal...but your credit score needs to be in the top tier level.....good luck!

floydsu77

Hello,
Because of the lease rates advertised nationally by Honda, I just was at a local dealership and now have a 36mo lease on the above car. This is my first lease and from what I've been reading, I should be negotiating off the selling price but even though we never really talked selling price, I got the lease with $1k down and $280/month (includes tax). How did I hurt myself by not negotiating the selling price?

carseeker7

This is great info, carman. Where do you get it? I just had a dealer quote me the following.

First, I requested best price on an EX-L V6 with Navi.

The quote:
THE PRICING FOR YOUR REQUESTED VEHICLE(S) IS/ARE AS FOLLOWS:
2007 Honda
Accord EX-L NAVI V6 Sedan
M.S.R.P. $29,400
INTERNET PRICE: $25,827
PLUS TAX, TAGS, FREIGHT $595, PROCESS FEE $100, and dealer installed options, if any.
PRICING INCLUDES CURRENT HONDA INCENTIVES WHICH ARE SUBJECT TO CHANGE WITHOUT NOTICE

I thought this was pretty good,and they have the color we want.

So then (I'm working with the internet sales rep, not in the dealership), I email back and request the best lease offer. I get:
To lease a 2007 Accord EXL-Navi V6 4dr automatic considering excellent credit your monthly payment will be $445/month/36months/12k miles/year.
The lease breakdown is 36 month, .0030 money factor, $1640.85 down i.e. tax, tags, process fee; $445 1st month payment. $2086.28 total due at signing. The residual is $16,197.30. Your straight buy interest rate can vary with again credit history, credit score, down payment and the term of the loan.

I emailed back and said that they did not base this lease on the price quoted and that the .003 money factor was way too high. What do you think?

bvdj84

WOW, that is a bad deal on that car, really it is, the payment is high as well! Its like they were when there were no deals out on them. You need to go to another dealer. That is too high. Try again.At this time, that payment should not be that amount, even with that much down! It seems as though they are pulling one on you. Since actual price is low, it seems they tweaked numbers so you would pay more, therefore more in their pocket! Good Luck. I am trying to make a deal on the same model as well! I am offering 24k for it. Well see..Please let me know what you get on your lease deal. As I could use it to get my deal. Thanks!

wilkich84

Thanks for the information. Will check with El Segundo.So far Miller has been the most responsive. If they can go below invoice on the base cap, we'll be in the game. Purely interested in the EX and don't really need the other goodings. Plan to send out proposed deal next weekend.

bvdj84

Okay I was offered $362 a month for an EX-L V6 lease or $300-310 for a 4cyl EX-L . Is that a fair price, but I did not ask what they had the actual price set at. but apparently leasing is different, and cannot hold the incentives as purchasing the vehicle outright. Would you do it, and which one would you pick?

Let me know, I am further investigating!