2000 seems like a lot to put down on a lease, it's best to only put down the first mo, sec dept, and reg fees (no capital cost reduction). Also always know what they are selling you the car for so you can check their math witha lease calc of your own.
The .00285 money factor converts to 6.84% which is a high rate on a new car, anything under .002 will be great.
I'm waiting until Nov, hopefully by then the rates will be where i need them.
I went to two dealerships over the weekend and here's the better of the two deals on a 07 Honda Accord Sedan V6 EX-L, automatic, I was able to negotiate:
MSRP - $27,995 Invoice - $24,700 Sale Price - $24,900 Current Negotiated amount - $23,000
I want a lease. Here's the deal on the table: a 36 month, 15k mile lease with $750 total paid out of pocket (first month's payment & fees). My trade-in (2004 Jeep Grand Cherokee) was a wash (they are offering to pay off the entire balance). Also included is that they are removing my Sirius satellite radio from my Jeep and installing it in the Honda; considering they hire out for this, I consider this a nice bonus. My payments would $365 out the door, including my CT taxes. The residual rate, 53%, equates to a residual value of $14,837.
Considering the loss of all incentives (except the dealer cash) and the higher money factor of .0285, I thought this was a pretty good deal.
I know I could wait until next month or November just to see if the rates go down, but then I might now be able to find a vehicle at this price.
Thoughts???? I put a refundable deposit and the deal, if completed, will be done on Tuesday (i.e., signing all of the paperwork). I would love some opinions...
I think you got a great deal. Tomorrow I am picking up my son's 2007 EX-L V6 with Navi MSRP 29,995; selling price of $24,414...36/12K lease payment including NJ tax of $377 with $1200 down including first payment, etc.
Most importantly, I got the color he wanted Graphite Pearl. This was no easy feat...Seems if you wait any longer all that will be left are Silver...
I'm looking into leasing a 2008 Accord EX-L I4 MT NAVI, MSRP of 27,895. I'm also looking to get the Rear Wing Spoiler and the Rear View Camera accessories, which are 499 and 464.
When doing the lease calc for residual which price do you I use, the MSRP of 27,895 or the 27,858 with the added accessories?
If it's the latter, is it better to try to work a deal having the dealer just keep the MSRP as the basis for the calculation and add in the accessories to the Capital cost?
I just got a quote on an EX-L 4cyl, Navi, $375+tax for 36mths, 12k, or 48mths $355+tax. This Lease deal is with 2k down at signing. In my opinion, this is not bad at all, considering the car just came out, though I have had some offers closer to the $400 mark for this same model, Also for a car without the navi. This seems like a good deal, Though I am not going to do it right now, but this shows me what the market is like right now, and that months from now, it will only get better, therefore saving me more money. This deal seems good for someone who is looking for a great car, I already lease an 06 accord, and its still like new, so I am waiting, but for a new owner of an accord, Go for it! Have fun, Remember, the deal is on your terms, send in many email quotes. Don't throw away your money, because a dealer wants to mark up their cars.
Work on price, then mention/add the accessories. You'll get a better deal. Remember, the more you wait, the better chance of getting a deal. Don't be in a rush.
Hi confused13. Honda is no longer providing lease support on the 2007 Accord. The dealer that you are working with is using the dealer cash that is available on it to provide you with an attractive selling price. If you want to lease this car through Honda Finance, you will have to use its standard lease money factor which the last time that I saw it was .00275 for consumers who qualify for its "Super Preferred" credit tier and pay a security deposit at lease signing. Honda Finance's 36 month, 12,000 mile per year residual value for a 2007 Accord EX-L 4-cylinder Coupe without navigation is currently 55%. I don't believe that Honda Finance offers 10,000 mile per year leases on Honda division vehicles, but if it does, the 10k residual would probably be 1% higher.
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Hi cody14. Are you interested in a 2007 Accord or the redesigned 2008 version? The version that you want will make a big difference, both interns of the price that you will be able to negotiate and its lease program.
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Hi bvdj84. I really need to know the full MSRP and selling price of the Accord that you want to calculate a lease payment on it. Are you saying that this car's MSRP and selling price are $27,000? I will use these prices to calculate your lease payment for now. Let me know if I should be using something different. According to my calculations, if you were to lease a 2008 Honda Accord EX-L 4-cylinder Sedan that has an MSRP and a selling price of $27,000 through Honda Finance right now for 36 months with 12,000 miles per year, your zero down, pre-tax monthly payment should be around $406 assuming that you qualify for its "Super Preferred" credit tier and pay a security deposit at lease signing. This lease payment will be a little off is these are not this car's exact MSRP and selling price.
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Congratulations on getting a good deal on your new Accord, z0ner. Thanks for taking the time to stop back and share the details of your lease with everyone. Make sure to stop by the new Dealer Ratings & Reviews section of Edmunds.com to share your thoughts on your recent dealer experience with others. Enjoy your new ride!
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You're very welcome, waters96. I think that you got a very good deal. When you negotiated your lease on this car, the $800 dealer cash that Honda was providing on this model was not compatible with its special lease program. So the dealer was not trying to pull any funny business. Enjoy your new ride :shades: .
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I'm glad that you enjoy this discussion so much, bherman. Unfortunately, Honda is not providing lease support on 2007 Accords any longer. As a result, if you were to lease one through Honda Finance, you would have to use its standard lease program. That's the bad news. The good news is that the dealer cash that you see everyone talking about is compatible with the standard lease program, when it was not compatible with the special lease program.
I would be happy to work up a sample lease payment on the exact Accord that you are interested in for you, but in order for me to do so I need you to provide me with its full MSRP and approximate selling price. For now I can tell you that Honda Finance's current buy rate lease money factor and residual value for a 2007 Honda Accord EX-L 4-cylinder Sedan without navigation with 15,000 miles per year are .00275 and 54%, respectively for consumers who qualify for its "Super Preferred" credit tier and pay a security deposit at lease signing.
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Hi rudi2. Are you interested in a 2007 model or the new, redesigned 2008 model Accord? Honda was not providing any lease support on either of these cars in September and I do not expect it to introduce any when it announces its new October programs later on today. If that is indeed the case and you were to lease one through Honda Finance, you would have to use its standard lease program. The last time that I saw it, Honda Finance's 36 month buy rate standard lease money factor was .00275 for consumers who qualify for its "Super Preferred" credit tier and pay a security deposit at lease signing. You don't want to lease using Honda's 24 month standard lease program because its money factor for that term is much, much higher.
This car's residual values vary significantly by model year, so I need you to tell me which model you want before I can give you an accurate idea of what they are like. 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 scheduled end of your deal and have to pay an excess mileage penalty.
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Hi kamran310. As many manufacturers do at the end of the model year, Honda has pulled the plug on its special lease program for the 2007 Accord. Furthermore, it has not introduced any lease support on the redesigned 2008 Accord yet. As a result, if you were to lease either of these cars through Honda Finance, you would have to use their standard lease money factors. It is difficult to say what automakers' future incentives programs will be like, but if I had to make an educated guess I would say that Honda will not reintroduce lease support on the '07 Accord and that it will be at least a couple of months before it introduces support on the 2008 model. Manufacturers typically like to ride the wave of new model popularity for as long as possible before they introduce any special promotions.
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Hi qwazr. I am surprised that you were quoted such a low money factor for a lease of a 2007 Honda Accord in September. On September 5th, Honda pulled the plug on its special lease program for the '07 Accord. This means that if you want to lease one, you can take advantage of the dealer cash but you will have to use Honda Finance's standard lease program. The last time that I saw it, Honda Finance's buy rate standard money factor for 36 month leases was .00275 for consumers who qualify for its "Super Preferred" credit tier and pay a security deposit at lease signing.
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Hi Andy. I like the redesigned Accord, too. I think that Honda did a great job with it. As one would expect with a new model that has been well received by the public, Honda is not currently providing any lease support on the 2008 Accord. This means that if you were to lease one through Honda Finance right now, you will have to use its standard lease program. The last time that I saw Honda Finance's standard program, its buy rate lease money factor was .00275 for consumers who qualify for its "Super Preferred" credit tier and pay a security deposit at lease signing. Honda's current 36 month, 15,000 mile per year residual value for an '08 Accord EX-L 4-cylinder Sedan without navigation is 62%.
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I am interested in selling my 06 SE leased car. I have 25k miles on it. At what time would be the best mileage and time to sell it. Considering warranty, miles. I am using that income to roll into a 2008 accord lease deal.
Honda does allow me to sell it, but does not support it, it will take 2 weeks to receive my title upon payment, and then transfer it to the new owner. Thank you so much for any advice. I am in no hurry to sell it, considering most are not dealing on the 08 now anyway.
In most states you will have to pay sales tax to buy out your leased car, then your buyer will have to pay sales tax as well. This double tax would likely mean either you make no money or the buyer would be run off due to the high price. You CAN go through a licensed car dealer and avoid the double taxation, but you will have to pay them for their time and trouble.
My guess would be that the used Accord market is a bit down since a lot of previous generation owners and coming out of them to get the new 08 Accord and I would not expect that to get a lot better. For sure, waiting until the base warranty is up (at 36/36k) will make it a lot harder to sell your used car. The problem is your car depreciates as you drive it while waiting for a deal on a new 08. So it could be that any savings on the new car you net as a result of waiting may be eaten up by getting less for your used car.
I assume you have compared your lease buy out price (not including tax) against the Edmunds/KBB/NADA trade and retail values? I would be surprised if there was THAT much profit in the difference. Selling it yourself without the title in hand can be a real pain - you will ask for cash or a legit cashier's check and then not have a title to give the buyer - that alone may send them to another seller.
Thank you for the information. That is helpful, but when or if I sell my car now, the buyer of my car will pay that, not me, I am not going to go out and get a loan on my car, when that would be the responsibility of the buyer. They can go through which ever bank they want. I would send the buyers check to my account, then send it to Honda, and then wait 2 weeks for the title. I don't have to be involved, plus honda is not going to know the difference. I did speak with them. It would be as if, I just wanted to go ahead and paid off the car, I would look at my current pay off, and it would be cleared. There would be no reason for me to buy it, Only to have the title in hand. The new owner will just have to wait 2 weeks for the title. Honda said, I could pay off the current pay out, and would own the car.
I might just trade it in, that might be easier, but getting them to grant me full pay off is the key.
I did speak with them. It would be as if, I just wanted to go ahead and paid off the car
But in most states that pay off includes sales tax - selling you the car they have to collect any taxes that are due. The actual payoff (to a dealer) would not include taxes and so would net you more profit or more able to move the car due to a lower price. You don't say where you are, but in MOST states taxes will have to be paid twice if you do this. Some states (CA, I think) let you re-sell the car within xx days without double tax, other states may have different laws.
I have done this a couple of times - sell a car I have on lease - and paid a dealer a modest fee to handle the paperwork, provide a temp tag, etc. Well worth the $300 it cost me each time.
Hi atfryar. Honda is not providing any lease support on the 2007 or the 2008 Accord in October. As a result, if you were to lease either of them through Honda Finance, you would have to use its standard lease program. Its current buy rate standard lease money factor is .00275 for 36 month leases to "Super Preferred" tier customers who pay a security deposit at lease signing. The Accord's residual values vary by trim level. I would be happy to give you an idea of what they are like if you tell me the exact models that you are interested in.
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Hi vital411. While it is difficult to predict exactly what manufacturers will do with their future incentives programs, I personally highly doubt that Honda will have lease support on either the 2007 or the 2008 Accord in November. It has already pulled the plug on its special money factors on 2007 models and I don't expect those to return. Plus, Honda will try to ride the 2008 model's wave of popularity for as long as possible before introducing a supported lease program on it.
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Hi gerbies1. You can probably do better than $200 under dealer invoice on this car right now. Honda is currently providing $2,000 dealer cash on leftover 2007 Accord V6 models. If I was in the market for one, I personally would shoot for a selling price of around $1,500 under dealer invoice.
Let's work up sample lease payments on this car using the price that you were quoted and $1,500 under invoice and see how much getting the additional discount would save you per month. According to my calculations, if you were to lease a 2007 Honda Accord EX-L V6 Sedan without navigation that has an MSRP of $27,995 and a selling price of $24,589 through Honda Finance right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment would be around $380. If you were able to negotiate a selling price of $1,500 under invoice, it would drop this car's monthly payment to around $341.
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Congratulations on getting your new Accord, mickeymouse1. Thanks for taking the time to stop back and share the details of your deal with everyone. Make sure to stop by the new Dealer Ratings & Reviews section of Edmunds.com to share your thoughts on your recent dealer experience with everyone. Enjoy your new ride!
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Hi bvdj84. You never mentioned the selling price or MSRP of the Accord 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 what this vehicle's selling price is 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 more than happy to give you my opinion of this deal if you let me know what these numbers are.
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Hey gerbies1. $1,700 under dealer invoice is an attractive price for a 2007 Accord EX V6 Sedan right now. After taking the $2,000 dealer cash that is currently available on this model into account, your selling price is around $300 over invoice, which is pretty good. Just make sure that the dealer you are working with uses Honda Finance's buy rate lease money factor of .00275 (for "Super Preferred" tier customers who pay a security deposit at lease signing) to calculate your monthly payment and you're in business.
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That is a very good question, Andy. I am not sure if Honda Finance allows the residualization of the options that you mentioned. I believe that the options that you mentioned are dealer installed options, not factory installed ones. This leads me to believe that there is a very good chance that they cannot be residualized. You really need to check with your dealer to find out for certain if they can. You would be better off if these options are allowed to be added to your car's MSRP before its residual value is calculated.
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Hi chk_price. This discussion is a great place to get an idea of how much this car will cost to lease this car. You definitely should stop by the following discussion to get an idea of what sort of selling price you should expect to pay for it right now: "Honda Accord Prices Paid and Buying Experience".
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Hey vital411. Honda is still not providing any lease money factor support on either the 2008 or the 2007 Accord in October. As a result, if you were to lease either of them through Honda Finance right now you would have to use their standard lease money factors. Its current buy rate standard money factor for a 36 month lease by a "Super Preferred" tier customer who pays a security deposit at lease signing is .00275. The Accord's residual values are exactly the same in October as they were in September. I would be happy to provide you with the exact residual for the model(s) that you are interested in if you tell me what they are.
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Greetings al330ci. Here is the information that you are looking for. Honda Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2008 Honda Accord EX-L V6 Sedan without navigation with 12,000 miles per year are .00275 and 62%, respectively for consumers who qualify for its "Super Preferred" credit tier and pay a security deposit at lease signing.
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Hi bvdj84. I am sorry to say that it is usually fairly expensive to get out of leases well before their scheduled end dates. In order to do so, you need to purchase the vehicle that you are currently leasing from the bank that you are leasing it through. It often turns out that it costs more to do so than your vehicle is worth on the open market. Furthermore, many banks expect consumers who end their leases early to still make all, or at least the depreciation portion of their remaining lease payments. As you can see, this can get very expensive.
You can determine approximately how much it will cost you to get out of your current lease by comparing its purchase price to its value on the open market at this time. You should place a call to the bank that you are leasing your vehicle through to find out its exact price. Once you know exactly how much money it is going to cost you to buy your leased vehicle you need to compare it to its current value on the open market. You can find out approximately what your vehicle is worth by looking up its Edmunds.com True Market Value in the Used Vehicle Pricing section of this site. You also may want to stop by the following discussion: "Real-World Trade-In Values". Don't forget to check to see if you are still on the hook for your remaining lease payments. The difference between your leased vehicle's current value and how much it will cost you to buy it plus any remaining lease payments that you are obligated to pay will equal the cost of getting out of your lease right now. You may find that you are better off waiting until you are closer to the scheduled end of your lease to get a new 2008 Accord. Not only will waiting enable you to save money on getting out of your current lease but the longer you wait, the more likely it is that Honda will have a special lease program on the 2008 Accord.
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Okay, should I go ahead and just trade it in, rather then selling it? If I trade it in, I will only break even "hopefully". Also, the dealer is going to put it out on the lot and get a profit on it. I am so confused, then another question, when should I decide to make a decision. I have an 2006 Accord SE with exactly 25k on it. I am in no real hurry, but its getting closer to the point where I could get the best value for my car.
That is the only reason I thought about selling it, because I would lose so much if I trade it. Anyone else in the position or have been?
Can I pay the dealer to sell the car for me? So that I can use the extra $$ for the 08. ??
Also, the dealer is going to put it out on the lot and get a profit on it.
Oh no! Somebody should put a stop to that!
Can I pay the dealer to sell the car for me? So that I can use the extra $$ for the 08. ??
A dealer? No. Would you let a dealer put a car on your front lawn and then you have to go through the process of demo'ing it to a dozen people, running their credit, processing paperwork, lending them money, etc, etc, only so the dealer can profit from it?
There are consignment lots out there you could try out if you really want to.
'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
Hi, I saw an ad advertised from a dealer as follows: 07 ' Accord Sedan LX 32 month lease, $1995.00 down, $595.00 bank fee, 10k miles per year, plus tax and plates for $129 per month for 32 months . MSRP is $21,670. What do you think of this deal ??
Amortizing the downpayment and the acquisition fee over the 32 months, you get $210/mo..
If you actually rolled those costs into the lease, you'd have a little higher finance charge (and, that's what I would do), you might end up around $217/mo..
That's a good deal, if 10K/yr fits your needs.. As long as there aren't any other costs besides tax and registration, it looks really good.
Hi Car_Man, thanks for the replies. I've got my whip ordered for Nov delivery, so i'm just hoping that the MF will drop to a .002 or less for NOV, if not and the car arrives Mid Nov, i'll hold off 2 more weeks to wait for the Dec Rates but that's all I can wait. My currently lease is up on Nov 12, but i could rent a cheap car for a few weeks if it'll turn into a savings over the 36 months of my lease.
Just looking for trends at this point as I know Oct rates won't dictate Nov rates, i'm just hoping to see them go lower.
I would doubt the rate will drop much in just one month, unless sales really dry up in that time frame. Also, the selling dealer will want you to pick up your ordered car in a timely fashion and would not be happy to let you leave it on their lot for weeks waiting for a better rate. In fact, I would guess if the car comes in on the 12 of November and you have not picked it up within a couple of weeks or by the end of the month they will just feel free to sell it to someone else. Also, any deal or discount you got on the car could go away if they have to sit on the car.
I just got an email from my dealer saying that my car won't be in until early until December if i wanted it in blue. I could get graphite a month earlier but i decided to wait. Hopefully this will work out to my advantage as I'm sure they'll have some sort of better Money Factors for Year End (at least I hope).
So now i have to either see if i can extend my current lease for a month or rent a car....I'll cross that bridge when i come to it.
Would it be wise to work a lease deal for a long lease term, 10k miles a year, so that that my payments are lower, and I am able to get more car. Knowing that I am not going to return it to the dealers, I will either sell it or trade it before the lease is done. I do not plan turning it back in. I already lease an 06, and will not turn it back in, I will sell it or trade it when its time. The specs of the lease in the situation wouldn't matter.
If you lease, you have to pay a non-refundable bank fee (normally $595 with AHFC) and depending on your state may have to pay tax on the whole car, only part of it, or only the payment (which means you are paying tax on the principle and interest). But, you should be a lower rate than if you financed the same car.
If there is no special rate, then the cost of leasing then buying the car would rise to more than the cost of just buying it in the first place. When they have cheap lease deals with well below market rates, then if you run the numbers the lease then buy may come out even or perhaps save you money.
One advantage to leasing is the bank takes the chance on future value, not you. For example, at the end of my RX-8 lease the car was not worth even close to lease residual. Too bad for the lease bank as I gave it back to them. Had a purchased it with a long term loan I would have likely been upside down and owed more than I could get for it.
That advantage sort of goes away with an Accord, which is pretty much the gold standard is holding value used. A nice Accord is always a welcome trade and a quick seller, so there is not a lot of risk to buying one with a loan as loan as the loan is at a decent rate and you deal the price down low on the front end.
If you just buy new with a loan and then trade cars before the car is paid off, you might as well lease as the trade in amount is likely not a good deal (for you) and it is SO MUCH nicer shopping for a new car without a trade. You make a bottom of the line deal on the new car knowing you are just going to turn in the old one.
That would all be true if I were to take out a loan on the car, but I don't plan on buying one, I will only lease, because leasing gives you a bit more options.
When I sell my 06 SE accord, I assume that the buyer will be responsible for getting a loan or funds to pay off my car, meaning they will pay tax and will be tied in with the amount. I will simply put it up for sale, and then they will hand over a check so that I can pay it off, then title is released within 2 weeks. There would be no reason for me to buy the car first and then sell it, that would be pointless, when Honda is not going to know the difference if its me or the buyer. You see many cars on ebay that are still on loan or lease, and title is released within payment.
Like I said before, in most states you will have to pay sales tax to get the car from the lease bank - you will not get this back. Then your buyer will also have to pay sales tax to buy it from you. This double tax could eat into any profits you hope to make on the deal. If you go through a dealer then no double tax will occur and you will get to keep the tax money and any other profit you make after paying the dealer for their service. Your buyer will also feel a lot better dealing with a dealer than just handing the cash over to someone they do not know and "hoping" they get a title in the mail later.
I have sold cars off of lease before, and that is the only way to do it and come out OK on the deal. It is NOT the same as buying and selling the car off a loan as in most states you have to handle the tax problem.
Ok, I am not sure you understand, I would not be responsible for the tax, as the buyer would be. American Honda Financial is not going to know the difference if the payoff amount is coming from me or some other person. I simply call American Honda Financial and they tell me the full amount due, then I simply put up for sale, covering the amount due. Meaning=I will not have to buy the car myself, and that it is up to the buyer to arrange payment. American Honda Financial stated that I could do this. So in this case, I would not have to pay tax out of my own pocket, the buyer would know that paying for a 18k car is going to have tax that needs payed as well. Title will then be released to there financial institution. People on Ebay do this all the time, The cover the payoff, and tax, and then the car is all theirs. Trading a car in at the dealers will = even or negative trade.
I understand it just fine, but in most states you have to pay sales tax to get the title from the lease bank. The title can only go to you, the lessee, or a licensed car dealer - it can't go from the lease bank to your buyer directly. If you don't go through a dealer then you have to pay sales tax to get the title, then your buyer has to pay it again.
I have done this very deal - sold 3 cars off of lease and 2 of them before the end of the lease so I do know what I am talking about.
You never have mentioned where you live and have not filled out that information in your profile, but if you "state your state" I can research this for you and let you know for sure.
In some states, you have to pay sales tax on the whole selling price of the car even though you are leasing. In other states (CA, for example) you have a small window when you can buy the car and re-sell it to someone else w/o having to pay the taxes. Those are the exceptions, in most states title can't transfer to a 3rd party directly w/o sales tax being paid twice. It is possible that whoever told you this was the case does not know any better or is including the taxes in the payoff amount.
So let me know where you are and I will try to verify it one way or the other, but for most of us what you are trying to do will not fly - when selling off a LEASED car. It works fine on a FINANCED car since you (likely) paid sales tax on the whole car and it is titled in your name only with the bank as a lien holder.
This is what a dealer is willing to lease a 2008 Accord EX, base 4-cylinder. Even with the higher money factor (0.027) it seems like a decent deal. It's not the best, but it seems like they were more aggressive on the price given the high money factor. Seems like a somewhat decent deal if you must have the car now I guess. These are the figures.
MSRP: $24,495 Selling Price: $22.107 Assignment Fee: $595 Inception Fee: $745 Tax: $790 Vehicle Markup: -$108 (Fudge factor I am sure) 12K miles Out of pocket down: $1000
With $1000 down $309 per month (that is 35 payments of $309).
I am starting to believe that all these numbers they work are bull. They give a high money factor, but they can also move lower on the price to compensate. My opinion is not to nickel and dime the fees and little things (like I see some talk about here - too complicated). Go in with your price (with fees in mind), and everything can fall into place (with the right dealer of course).
Comments
With 2000 total down the lease payment is 353.79X36 months or 335.59X48 months. With 3000 total down it is 322.19X36 months or 311.48X48 months.
This looks fairly reasonable for a lease, though I am waiting longer, it can only get better from here.
Let me know what you think. This is not too bad for it just coming out.
Also always know what they are selling you the car for so you can check their math witha lease calc of your own.
The .00285 money factor converts to 6.84% which is a high rate on a new car, anything under .002 will be great.
I'm waiting until Nov, hopefully by then the rates will be where i need them.
- Andy
MSRP - $27,995
Invoice - $24,700
Sale Price - $24,900
Current Negotiated amount - $23,000
I want a lease. Here's the deal on the table: a 36 month, 15k mile lease with $750 total paid out of pocket (first month's payment & fees). My trade-in (2004 Jeep Grand Cherokee) was a wash (they are offering to pay off the entire balance). Also included is that they are removing my Sirius satellite radio from my Jeep and installing it in the Honda; considering they hire out for this, I consider this a nice bonus. My payments would $365 out the door, including my CT taxes. The residual rate, 53%, equates to a residual value of $14,837.
Considering the loss of all incentives (except the dealer cash) and the higher money factor of .0285, I thought this was a pretty good deal.
I know I could wait until next month or November just to see if the rates go down, but then I might now be able to find a vehicle at this price.
Thoughts???? I put a refundable deposit and the deal, if completed, will be done on Tuesday (i.e., signing all of the paperwork). I would love some opinions...
Thoughts???
Most importantly, I got the color he wanted Graphite Pearl. This was no easy feat...Seems if you wait any longer all that will be left are Silver...
When doing the lease calc for residual which price do you I use, the MSRP of 27,895 or the 27,858 with the added accessories?
If it's the latter, is it better to try to work a deal having the dealer just keep the MSRP as the basis for the calculation and add in the accessories to the Capital cost?
Thanks!
Andy
Work on price, then mention/add the accessories. You'll get a better deal. Remember, the more you wait, the better chance of getting a deal. Don't be in a rush.
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I would be happy to work up a sample lease payment on the exact Accord that you are interested in for you, but in order for me to do so I need you to provide me with its full MSRP and approximate selling price. For now I can tell you that Honda Finance's current buy rate lease money factor and residual value for a 2007 Honda Accord EX-L 4-cylinder Sedan without navigation with 15,000 miles per year are .00275 and 54%, respectively for consumers who qualify for its "Super Preferred" credit tier and pay a security deposit at lease signing.
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This car's residual values vary significantly by model year, so I need you to tell me which model you want before I can give you an accurate idea of what they are like. 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 scheduled end of your deal and have to pay an excess mileage penalty.
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Can you please post the money factor and residual for an
08 Accord EX-L 6-cylinder Sedan for 36 months and 12K miles/year
Thanks
I am interested in selling my 06 SE leased car. I have 25k miles on it. At what time would be the best mileage and time to sell it. Considering warranty, miles. I am using that income to roll into a 2008 accord lease deal.
Honda does allow me to sell it, but does not support it, it will take 2 weeks to receive my title upon payment, and then transfer it to the new owner. Thank you so much for any advice. I am in no hurry to sell it, considering most are not dealing on the 08 now anyway.
My guess would be that the used Accord market is a bit down since a lot of previous generation owners and coming out of them to get the new 08 Accord and I would not expect that to get a lot better. For sure, waiting until the base warranty is up (at 36/36k) will make it a lot harder to sell your used car. The problem is your car depreciates as you drive it while waiting for a deal on a new 08. So it could be that any savings on the new car you net as a result of waiting may be eaten up by getting less for your used car.
I assume you have compared your lease buy out price (not including tax) against the Edmunds/KBB/NADA trade and retail values? I would be surprised if there was THAT much profit in the difference. Selling it yourself without the title in hand can be a real pain - you will ask for cash or a legit cashier's check and then not have a title to give the buyer - that alone may send them to another seller.
Dennis
I might just trade it in, that might be easier, but getting them to grant me full pay off is the key.
But in most states that pay off includes sales tax - selling you the car they have to collect any taxes that are due. The actual payoff (to a dealer) would not include taxes and so would net you more profit or more able to move the car due to a lower price. You don't say where you are, but in MOST states taxes will have to be paid twice if you do this. Some states (CA, I think) let you re-sell the car within xx days without double tax, other states may have different laws.
I have done this a couple of times - sell a car I have on lease - and paid a dealer a modest fee to handle the paperwork, provide a temp tag, etc. Well worth the $300 it cost me each time.
Dennis
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Let's work up sample lease payments on this car using the price that you were quoted and $1,500 under invoice and see how much getting the additional discount would save you per month. According to my calculations, if you were to lease a 2007 Honda Accord EX-L V6 Sedan without navigation that has an MSRP of $27,995 and a selling price of $24,589 through Honda Finance right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment would be around $380. If you were able to negotiate a selling price of $1,500 under invoice, it would drop this car's monthly payment to around $341.
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You can determine approximately how much it will cost you to get out of your current lease by comparing its purchase price to its value on the open market at this time. You should place a call to the bank that you are leasing your vehicle through to find out its exact price. Once you know exactly how much money it is going to cost you to buy your leased vehicle you need to compare it to its current value on the open market. You can find out approximately what your vehicle is worth by looking up its Edmunds.com True Market Value in the Used Vehicle Pricing section of this site. You also may want to stop by the following discussion: "Real-World Trade-In Values". Don't forget to check to see if you are still on the hook for your remaining lease payments. The difference between your leased vehicle's current value and how much it will cost you to buy it plus any remaining lease payments that you are obligated to pay will equal the cost of getting out of your lease right now. You may find that you are better off waiting until you are closer to the scheduled end of your lease to get a new 2008 Accord. Not only will waiting enable you to save money on getting out of your current lease but the longer you wait, the more likely it is that Honda will have a special lease program on the 2008 Accord.
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That is the only reason I thought about selling it, because I would lose so much if I trade it. Anyone else in the position or have been?
Can I pay the dealer to sell the car for me? So that I can use the extra $$ for the 08. ??
Oh no! Somebody should put a stop to that!
Can I pay the dealer to sell the car for me? So that I can use the extra $$ for the 08. ??
A dealer? No. Would you let a dealer put a car on your front lawn and then you have to go through the process of demo'ing it to a dozen people, running their credit, processing paperwork, lending them money, etc, etc, only so the dealer can profit from it?
There are consignment lots out there you could try out if you really want to.
'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 saw an ad advertised from a dealer as follows:
07 ' Accord Sedan LX
32 month lease, $1995.00 down, $595.00 bank fee, 10k miles per year, plus tax and plates for $129 per month for 32 months . MSRP is $21,670. What do you think of this deal ??
If you actually rolled those costs into the lease, you'd have a little higher finance charge (and, that's what I would do), you might end up around $217/mo..
That's a good deal, if 10K/yr fits your needs.. As long as there aren't any other costs besides tax and registration, it looks really good.
regards,
kyfdx
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I've got my whip ordered for Nov delivery, so i'm just hoping that the MF will drop to a .002 or less for NOV, if not and the car arrives Mid Nov, i'll hold off 2 more weeks to wait for the Dec Rates but that's all I can wait. My currently lease is up on Nov 12, but i could rent a cheap car for a few weeks if it'll turn into a savings over the 36 months of my lease.
Just looking for trends at this point as I know Oct rates won't dictate Nov rates, i'm just hoping to see them go lower.
Thanks!
Dennis
So now i have to either see if i can extend my current lease for a month or rent a car....I'll cross that bridge when i come to it.
Thanks.
If there is no special rate, then the cost of leasing then buying the car would rise to more than the cost of just buying it in the first place. When they have cheap lease deals with well below market rates, then if you run the numbers the lease then buy may come out even or perhaps save you money.
One advantage to leasing is the bank takes the chance on future value, not you. For example, at the end of my RX-8 lease the car was not worth even close to lease residual. Too bad for the lease bank as I gave it back to them. Had a purchased it with a long term loan I would have likely been upside down and owed more than I could get for it.
That advantage sort of goes away with an Accord, which is pretty much the gold standard is holding value used. A nice Accord is always a welcome trade and a quick seller, so there is not a lot of risk to buying one with a loan as loan as the loan is at a decent rate and you deal the price down low on the front end.
If you just buy new with a loan and then trade cars before the car is paid off, you might as well lease as the trade in amount is likely not a good deal (for you) and it is SO MUCH nicer shopping for a new car without a trade. You make a bottom of the line deal on the new car knowing you are just going to turn in the old one.
Dennis
That would all be true if I were to take out a loan on the car, but I don't plan on buying one, I will only lease, because leasing gives you a bit more options.
When I sell my 06 SE accord, I assume that the buyer will be responsible for getting a loan or funds to pay off my car, meaning they will pay tax and will be tied in with the amount. I will simply put it up for sale, and then they will hand over a check so that I can pay it off, then title is released within 2 weeks. There would be no reason for me to buy the car first and then sell it, that would be pointless, when Honda is not going to know the difference if its me or the buyer. You see many cars on ebay that are still on loan or lease, and title is released within payment.
I have sold cars off of lease before, and that is the only way to do it and come out OK on the deal. It is NOT the same as buying and selling the car off a loan as in most states you have to handle the tax problem.
Dennis
I have done this very deal - sold 3 cars off of lease and 2 of them before the end of the lease so I do know what I am talking about.
You never have mentioned where you live and have not filled out that information in your profile, but if you "state your state" I can research this for you and let you know for sure.
In some states, you have to pay sales tax on the whole selling price of the car even though you are leasing. In other states (CA, for example) you have a small window when you can buy the car and re-sell it to someone else w/o having to pay the taxes. Those are the exceptions, in most states title can't transfer to a 3rd party directly w/o sales tax being paid twice. It is possible that whoever told you this was the case does not know any better or is including the taxes in the payoff amount.
So let me know where you are and I will try to verify it one way or the other, but for most of us what you are trying to do will not fly - when selling off a LEASED car. It works fine on a FINANCED car since you (likely) paid sales tax on the whole car and it is titled in your name only with the bank as a lien holder.
Dennis
This is what a dealer is willing to lease a 2008 Accord EX, base 4-cylinder. Even with the higher money factor (0.027) it seems like a decent deal. It's not the best, but it seems like they were more aggressive on the price given the high money factor. Seems like a somewhat decent deal if you must have the car now I guess. These are the figures.
MSRP: $24,495
Selling Price: $22.107
Assignment Fee: $595
Inception Fee: $745
Tax: $790
Vehicle Markup: -$108 (Fudge factor I am sure)
12K miles
Out of pocket down: $1000
With $1000 down $309 per month (that is 35 payments of $309).
I am starting to believe that all these numbers they work are bull. They give a high money factor, but they can also move lower on the price to compensate. My opinion is not to nickel and dime the fees and little things (like I see some talk about here - too complicated). Go in with your price (with fees in mind), and everything can fall into place (with the right dealer of course).
Please comment on this.
Rob