Assignment fee and inception fee are both being charged. There is normally a acquisition fee or "bank fee" and from AHFC it is $595, so the $745 charge is just bogus and extra profit for the stealer.
The lease money factor may be 0.00270, 0.027 would be 64.8% interest - 0.00270 would be 6.48% which is pretty high. Sounds like they may be jacking that number up too.
You can try a 3rd party lease, like leasecompare.com , they offer a lower MF but the ALG residual will be lower as well. They would buy the car at your negotiated price and lease it to you.
My guess would be if you took them a check for the $22,107 "selling price" they would not be happy, looks like they show the discount then take it back in expensive lease rates and add on fees.
I live in Indiana, yes, you are right, honda said that I was likely not to pay the tax, but to call the DMV and find out. There is a possibility that I would have to. Trading it in would be much easier it seems like. Plus I wouldn't have to worry about people seeing it, test driving it, and going through the hassle, If I was to wait until the end of my contract, Honda said I should have some equity to roll in to the deal. They said most hondas do when the get turned back in, but I am essentially 4k miles over my contract right now, so either way I will turn in 4 months early. So selling it would only give me a few bucks, if I pay tax, and end up being more hassle than its worth. Plus I don't have to sell it, I am in no hurry, The 08's are still being priced high, so I am thinking to trade in the spring or summer of 08. By then I'll have about 32k miles. I can have 36k without being charged.
On termination of the lease, Taxpayer disposes of (i.e., sells) the vehicles in one of several ways: (1) the Taxpayer directly sells the motor vehicle to the lessee through the purchase option of the lease; (2) the Taxpayer sells the motor vehicle to the dealer for resale to the lessee, who exercises the purchase option; (3) the Taxpayer sells the motor vehicle directly to the dealer for resale to someone other than the lessee; or (4) the Taxpayer sells the motor vehicle at auction to a dealer for purposes of resale. Under any of these described scenarios, the Taxpayer will dispose of the vehicles (“Relinquished Property”) at the termination of the lease through the Intermediary. The Intermediary has been assigned the Taxpayer’s rights (but not its obligations) with respect to the sale of the Relinquished Property at the termination of the lease. The property is sold in accordance with the Taxpayer’s directions and instructions either to (a) the lessee, or (b) the dealer for resale. In the first instance, the transaction would be assumed taxable for sales and use tax purposes (e.g., sale to consumer). In the second instance, the transaction would be generally assumed not taxable for sales and use tax purposes (e.g., exempt for resale).
In this case the taxpayer is the lease bank and it reads to me that if you go through a dealer, then no tax, don't go the dealer and tax must be paid (by you). Your buyer would also have to pay tax as well.
It all depends on how the car is titled and who holds the title and in what names and if your state requires the tax to be paid at the time the vehicle is sold or at the time it is registered (tagged). Here and most other places the title is held in the lease bank's name and the lessee's name and they only person it can be transferred to is the lessee or a licensed car dealer. If it is transferred to the lessee then tax must be paid - since we are a state that collects the tax on the sale and not at tag time.
In any case, you can do this through a dealer for a modest fee and they will take care of contracts, temporary tags, etc and for sure no extra taxes. If nothing else it makes the buyer a lot happier than handing over a check and waiting weeks for a title in the mail.
Carman, Your help is greatly appreciated. I used it to lease my 06 Pilot EX based on your numbers. Do you know the MF and residual info for the 4 cyl Accord LX-P, EX, and EX-L? I read that there is dealer cash for the 2007 Accords? Do you know the amount?
Hello Rob: I purchased a 2007 Honda Accord EX in May 2007, on a sign and drive program(nothing down except 1st month's payment) for $299.87(incl all taxes) per month. Personally, I think your price is very good since the 2008s just arrived. I would love to find out if you finalized the deal. Thank you!
Car_man, or anyone, what lease payment can I expect for this car, 12K miles per year, 36 months, $1000 cash up front for fees, no down/cap cost, sale price $28,500 - assume best credit rating? Is there a rule of thumb for how much the payment changes for each $1000 more or less up front, or in sales price? Once I heard $30 per thounsand, not sure if that was in front money or price.
Hello, I have been shopping for a 2008 Honda Accord Lease. The deals are lousy. Here was the "best" I found on a 2008 Honda Accord 4d Sedan EX Pzev Auto:
MSRP: $24,495.00 Resid: $15,431.85(63%) Ann Mileage: 18,000 Excess Miles(what is this?)9,000 @ 10 cents...-$900.00 Adjusted Residual:$14,531.85 Buy rate: .002800 Dealer cost: $22,334.00 Selling price: $22,834.00 Adjusted selling price: $23,647.34 Down payment: 0.00 Assignment fee: $595.00 Cap cost: $24,242.34 Total profit $500.00.....Yeah, right!!
Payment for 36 months: $401.00(incl 6% CT tax) **Fyi, this is Tier 1 pricing***I have great credit**Same specs EX-L with leather and Navi: $479.28(incl 6% tax)
Are you asking for 21,000 miles per year?? Because that is what those numbers state. They are giving you the 18,000 numbers, then adding another 3,000 per year at 10 cents per mile.
the money factor is right around standard bank numbers at this point, I think. No, Honda is not offering up a subsidized money factor on the '08 just yet because they don't need to. So the deal is what the deal is. The residual is quite good.
'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
No, I asked for 18,000 miles. That must have been a miscommunication. Using my figures, can you please explain the residual and what it means to me as a consumer?
Well, I suppose it is possible they are giving you the 15k miles numbers and then subtracting for the additional 3k/year. I'm not sure why, however, as 18k mile numbers are available through Honda.
As a consumer, the higher the residual, the less depreciation you have to pay during the lease. To put that into perspective, if you are looking at a $24k car with a 63% residual, you only have to pay $8880 in depreciation. Let us say you get the car for $1k below MSRP, then that means you only pay $7880 in depreciation. On my '06 Accord, I leased it in May '07, so the residuals at that time were 56% for a 3yr/15k lease. MSRP was about $28k, leaving $12,320 in depreciation. But, of course, being later in the year and later in a model run, I got it for about $4k off MSRP, bringing my depreciation to be paid to about $8400.
So, if you think about it, you are paying essentially the same deprecation for a brand new model in high demand that people have paid who waited till the end of the model run for great deals. Of course, those deals also included and ultra-low subsidized money factor, which you aren't able to take advantage of at this point.
'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 am taking delivery of the Accord EX today, $309 per month with $1000 down. When dealing I kept pushing, but I couldn't move further down on the price although I thought that I could have gotten $300 per month. I did try. This dealer has a good rating by people (and another one who I should visit in the future). I had bad dealers and walked out (other confirmed my feelings). Considering the higher money factor I guess I did ok (not as good, but not ripped off I guess). Then again with everything we buy we kind of get ripped off (but we try to minimize this though).
There is also a matter of opinion of leasing versus buying (some told me leasing is not worth it). My wife got me started with leasing, and I feel it is best. You don't have to mess around with a trade (or have crazy people show up at your house). You need to keep a car for 10+ years (fixing it, etc.) save more, but who wants a car that long? My 1995 Intrepid with 146K miles has been fixed, etc., now the brake line leaks. Estimating my total cost over the years it is not a "night & day" price difference plus the personal work I did on the car.
My opinion only. Others welcomed. Your $299.87 makes me feel better about this, but didn't you have a low money factor? I guess they get the money one way or the other (everything balances out). I wonder if next time if there is a low money factor, whether I can get the least negotiated at $108 below invoice again. My Civic SI lease (had since May) was $297 over invoice, $267 per month/36 months/15K miles/$1000 down.
When dealing I kept pushing, but I couldn't move further down on the price although I thought that I could have gotten $300 per month.
To get the best deal on a lease, you don't "play payments" with the deal - you usually end up paying too much.
You negotiate the price of the car with the dealer, just like you are going to buy it. Once the price is settled you get the lease terms. Most Honda dealers to not mark up the bank fee and money factors on leases, but you still have to check it.
If you try to judge a deal by the monthly payment you have no idea how much you really paid for the car, except by comparing your payment against another lessee's payment which can be misleading.
If you are getting the lease buy rate then the only thing left that determines payment (not including TTL) is your negotiating a lower price and the amount of money you want to pay at signing (which should be as little as possible). There will be no "I thought I could get" in the equation. You run the numbers to see how low the price would need to be to get your payment goal. If the price is a realistic one then you don't sign until you get that price.
The lease numbers right now are not that good at all, meaning I would have to put more money down to compensate for the difference. I will wait, when numbers are better, and when dealers let go of their grip on the strict pricing.
I just saw the EX-L V6,navi, white diamond. It looks very classy! They wanted $31,488 for it. You can see it on Ebay! I am sure it looks even better in person. I might consider this model with the 6cyl if better deals arrive. The 6cyl has little difference in gas mileage compared to 4cyl. but is it worth the extra $4k more for navi and a 6cyl?
If I want to pay my entire lease up front, does that mean I should ask the dealer to take out the "money factor" since the lender will be getting all their cash up front??
Even in an up front, single payment lease you still have to pay interest (via the money factor).
Why? Becuase while the lease payment is based on the difference between the selling price and the residual, the lease bank has to buy the whole car. So if you lease a $25k Accord with a $12.5k residual, the lease bank has to pay out the $25k up front and you pay $12.5k + interest on the whole $25k.
I would doubt that Honda has a single payment lease nor would most lease banks do it on a Honda. With these leases the MF is lower than a pay by the month lease, but I would rather but the money in the bank and pay the monthly payments. If the car is totalled or stolen your up front payment is at risk.
Trying to help my mother set up a lease on a new LX-automatic. Since I live 2000 miles away from her home in NY, I'm not familiar with some of the deals over there. This is for a 3 year, 36,000 mile lease.
In any event, she got offered about $2000 down which includes approx $870 in sales tax, $595 in bank fee (I guess from American Honda), $260 for 3 years of license and registration paid in advance and another $290 for first month's lease. The monthly payment will be $290.
She was told the sale price was MSRP (approx 21,700) and I do not know the residual value. Before I go chasing other offers from competing dealers over the internet, I was wondering what others thought of it. My brother thinks the deal should be no money down, but I think the incentives are not that great right now for a new model. Any comments are appreciated!
Unless she really has to have the 08 accord, "New Model", right now, I would wait, there are no lease incentives at all, strictly tight numbers. Let this all settle down first. I would prefer no money down, just to give you an idea, someone earlier posted they got an EX-L 4cyl, for $375 a month, with $0 down! That is a little steep on that model, but, it is with no money down. $290 with 2k down is high. For every $1k down you take $20-$30 off your payment, so therefore with $0 down you are looking at about $350 payment! So really that dealer isn't doing you any favors when they want $2k at signing and your payment is still $290 on an LX, which is $21,700. Point is, you should be able to get the LX, with $0 down for about the $290 payment! Try not to put money down on the lease, for it does not go to your actual principal, rather goes to lower your payment. Money factors and residuals are not good right now, either wait, keep trying, or get a better deal on the 07's, or keep looking. If you need to put some money down, keep it realistic, and know exactly what is for, and if it can be worked better.Right now they'll tack on anything! Remember, don't accept the first offer, send in many quotes via email. Good Luck! Don't hurry either, you'll find yourself wondering why I didn't wait or research more. I am waiting myself, I'll get the 08 EX-L Navi.
You are right, and I see why you are saying this. I would precalculate the monthly payment based on the invoice price (or do it right in front of him with my notebook if I need a revision). I pushed the monthly payment down to fit my cap cost I had in mind. This may be the wrong way, but I wound up with a selling price of $108 below invoice.
Now here is a funny story that happened today. I got a voicemail from the financial guy from the dealer (we took delivery of our 2008 Accord on October 22nd), and he said my wife and I need to come in to sign an additional paper because the residual value ($15,921.75) is not correct. He said the monthly payment will be the same ($309).
To me this sounds like the residual is higher which means that the cap cost changes (which changes the monthly payment). I don't think the residual would be lower (and wanting us to sign). If the residual higher (like I am suspecting) then can hold them to lowering my payment since it is the "selling price" of the car that you work from (since they would have to fudge the selling price to fit the $309 payment)?
I am waiting for a call back from them. It almost sounds like they are trying to fix their mistake, get us to sign so we can't say anything later. Sounds fishy to me.
Any suggestions on what this is all about and what I should do?
We test drove tonight a new accord LXE and it was very nice. The dealer gave us only two days to make our leasing decision. The final cost was $350.00 for 36 months, 12,000 miles and $3,000.00 down. What questions should I be asking? I want to be well informed when I call the dealer back. The money down is to keep the monthly payments more in line.
Mistakes do happen, so no reason to ASSUME something is fishy - but you do need to check the numbers out.
The residual is set by the lease bank and can't be changed - either by accident or on purpose by the dealer. The lease bank will not fund the lease if the numbers are not correct. With a closed end lease they have to sell you the car at lease end for this price - and if the number is not correct they would be stuck with it.
If the residual on the new paperwork is higher, then your payment should be less. To charge you the same payment with a higher residual would mean they would have to raise your price. If you agreed to the terms of the old lease ($xxxx down, $yyy per month) then no BIG reason to object to a new contract that has, in effect, the same terms. That said, to make you come back to the dealership because of their mistake they should offer you something - a lower payment or some coupons (get it in writing) for free oil changes, free accessories, or something.
If the residual on the new paperwork is lower, then your payment would be higher. To keep the payment the same they would need to lower the selling price - which they should do.
The other thing you can do is just say no, and give them the car back and get a refund for any money you have paid them. Somewhere in your paperwork is likely a form you signed that says if the lease/loan does not fund you have to return the car. It may or may not include clauses that say you have to pay so much per mile and so much per day for the days/miles you put on the car before you return it. If there is such a document, that would be your cost for unwinding the deal. If you want to, that is.
The first question would be, "why do I only have two days?". The answer is you have all the time you need, and I would go car shopping at other Honda dealers looking for a better deal. DO NOT EVER let a dealership pressure you into rushing into a deal. I now it is the end of the month, but so what. You will have year pay for a mistake you make in a rush now. If they will only give you a good deal at the end of the month, then do you homework and come back in 30 days and work with several dealers at month's end to compete for your business.
Also, I would not pay money down into a lease. If the car is totalled or stolen your insurance will pay off the lease bank and will likely give you nothing - so you will be out that money you put down. Put the money in savings or something and draw it out as needed to make the effective payment lower if you have to, but don't sink much into the front end of a lease.
To get a good lease deal, you start with by negotiating the price of the car - just like you were buying. Once you have a good price, then start looking at the lease numbers.
The current Honda lease rates are not anything special, if you can wait you should be able to get more favorable rates in a month or two or three or four - and can probably get a lower price too.
Thank you so much for your information. I know about not making quick decisions. I have been leasing cars for 15 years, but this is my daughter's first car. She test drove the EXL and wasn't prepared for the price (it being the top of the line). A vehicle search didn't turn up any EX's in our state. We were originally looking at a $445.00 payment on this car. The deal they are offering is on the car she drove - the only one they have.
The money down is our way of lowering her first car payment. I know she's losing this, but whether we put it up front, or add it on over 36 months, we almost equal. Not considering the facts you brought up, we were looking only at a short term fix.
It's a beautiful car of course and she's driven cars from six other manufacturers. They all seem to be in this lease range, but without all these features. So now she and I are both confused.
Well, Don't be confused, Is it the EX-L 4cyl, your wanting to lease? That is a great car! But remember to send in many quotes via email to as many dealers. You will see if they are all in sync with one another. Putting $3k down is alot of money to put down to still have $350 payment. Remember though, right now numbers are really strict, but you should be able to do a little bit better. When you send a quote in, tell them $0 down on the lease. I had 1 quote say $415 a month for an EX-L 4cyl, with Navigation, with $0 down, SIGN AND DRIVE. So be careful. My quote is much better than yours. Keep researching. Send in quotes. There are other dealers out there. Good Luck. You can do a deal like they sent me, but keep looking. This dealer would be making some $$ on your deal! Tell them immediately $0 down, then you'll see the true cost of the lease. The EX-L 4cyl, navi, is what I want, but I am waiting when there are better numbers. See if you can lease the car for $24,700.
It is okay to put some down, but start with $0, then decide a more realistic deal. See if any fees can be adjusted.
Post the numbers and let us look at them. It is NOT a good time to look at a new 08 Accord - both in terms of prices and in terms of lease money. The Accord coupes seem to be slow sellers compared to the sedans, but it is still a new design and not any dealer money or need to discount them at this time. We can still look at the gross and net cap costs, money factor, residual, and fees and see how good or bad it looks.
Your daughter is lucky to be getting such a nice first car . My kids all started out on lesser vehicles - cheap used cars.
You might also look at the Civic coupe and the new for 08 EX-L model. Better gas mileage than the Accord and around $3,700 cheaper at INVOICE than the I4 Accord coupe. Probably better (or no worse) lease terms as well - and maybe a deal a lot closer to invoice as well.
Yep, that is exactly right. Honda is struggling to get it out on the road, people look at them, want them, and then hear the price and they walk right off the lot. Honda really needs to have some kind of incentive to get them on the road, there not doing any good sitting on the lot. Honda hopes to make quota, so I am sure they won't wait too long to get them rolling. As much as I want a new EX-L, I'm waiting, so I can get a better trim, better price.
Thank you all for your input. For the 2008 Accord Coupe EX-L,here are the numbers from the dealer: MSRP:$26,595, Adjusted capitalized cost:$25,425.00 and the residual value:16,488.90. I am looking at the numbers both with the $3,000.00 down and with no down. I was told that each thousand dollars is equal to about $25.00. So the payment would be $420.00 with nothing down(approximately), and again, $345.00 with $3,000.00 down.
She did drive the Civic and it was also a nice car, but frankly, after driving the Accord first, they didn't really compare. She is willing to compromise and wait for an EX, but of course, was told it could be December before they located what she wanted.
Invoice is $24,153, so your price is $1,272 over - if there are no additional dealer fees added on top of the deal. I guess that is not bad for a new model, but the coupes are normally slow sellers and can have dealer incentive money to help move them. You don't have enough information for me to figure anything else out. The 62% residual sounds OK, but I have no idea what other fees and taxes the dealer is adding to the price. What is the money factor for the lease? What is a breakdown of the new cap cost and where does your $3k go? You could be on to a nice deal or a rip off deal, can't tell without more info. Checking against a 3rd party lease at www.leasecompare.com I see $435 per month (no tax, etc) for a 36/36k lease with nothing down other than first payment.
Have your tried calling around (or webbing around) to other dealers in the the area or within a 200 miles around where you live? There could be EX coupes sitting on a lot just down the road a bit - or a dealer more willing to deal on price. If you found a left over 07 coupe there is $2,000 in dealer money on them.
I understand the Accord is nicer but this is a first time buyer/lessee and you want to keep the payments down so the Civic might just make more sense. She can get a nicer car later when finances dictate she can spend more. A new Porsche 911 Turbo is a lot nicer than the RX-8 I used to lease, but gosh darn it, the payments were so much more I had to make do with the lesser car .
I got an offer that $233/month and $3,000 down (12000mile/ yr and 36months) include all stuff. I don't know money factor and residual value, but I just wonder it is good or bad. :confuse:
Considering the poor incentives I guess I got a reasonably decent deal. Some of the qoute being posted here are not that great. For the lady that has 2 days to decide...I wouldn't go back to this dealer. It sounds like a pressure job. You have other options to visit other dealers. I visited 4 different dealers (go to as many as you can). Next time I want to visit another dealer who I heard good things about.
For this lady, it is a nice car your daughter is getting. My wife has a 2008 Accord EX sedan (1 week ago, about 165 miles already), and I have a 2007 Civic SI sedan (got in May, already 5500 miles). We rotate our cars for our carpool to work (60 miles per day).
Anyway, don't make a deal unless you are sure you got the right deal you are getting. I may have not gotten the best deal possibly, but I did the best I could for the time I got the lease (which I don't think is horrible - my opinion).
For the lady, please update us with your (great) deal you get.
Porsche9 with $0 down at signing on the lease, your payment would be around $323, which is a little high for an LX. You should be able to do around $300 a month with $0 down, but if you did put $3k down, on the $300 a month deal which is "Normal" then your payment would be around $210. This will give you an idea of how bad the lease numbers are right now, and how somewhere, your dealer is getting some $$. For every $1k down, it takes about 20-$30 off your payment. Do not take the first offer. Don't let your love for the car interfere with your deal! You can do better, but perhaps with time or persistence. Good Luck!
I will say.......it is a really nice car. Of all that she's looked at (the Pontiac G6, Volkswagen Jetta, Mazda 3, Honda Civic, Subaru Impreza and the Nissan Altima), she does like the styling and the ride best in the Accord. That being said, tonight the Pontiac salesman said that the Honda salesman was right in saying that November 1st, the residuals will change and could be higher. Like all of life, it's a matter of timing. I think we'll talk to the Honda man again tomorrow and try and negotiate as Dennis suggested. I don't really like her putting out $3,000.00 for a lease, but I did notice others on this site put that amount down as well. And her payments of $345 are actually right in line with almost every other car she drove (although some of course had no money down). When you're young and have the money, maybe it's the only time you can get a really nice car. I had a porsche when I was her age but certainly couldn't do that again.
I'm hoping for maybe a deal with $1,500.00 down. If we can work that out, we may just get it and she can ditch the Saturn.
This is the last day of the month, so they may be willing to deal today to have that unit on the books for October. If not, just wait and shop around.
To me, you are doing the whole lease deal all wrong (no offense but you did ask our advice). You are playing payments with the dealer. You look at it as "all these cars are around $350 per month so this must be an OK deal". WRONG! You always negotiate the price first including the dealer fee, then work on the lease details. A lot of the cars on your list are slow sellers and some have customer cash and/or discount leases/financing on them. If you got a good deal on one of those, you may be paying a lot less.
In any case, always deal on the price of the car from invoice up. Once you have the best price, then get the lease numbers and check them yourself. Make sure you are getting the captive lease bank's "buy rate" with no markup. This rate will be the same from all dealers, so that just leaves getting the best price for the car with destination and dealer fees included. Once you find the best price, the payment is what it is and the only way to make it lower is to deal the price down more or put money down.
At this stage you are guessing "maybe they will give me that payment with just $1,500 down". Don't guess - know. Once you know the invoice (available online) the taxes, fees, and the lease money factor and residual you can work the numbers yourself. If you leased at invoice it would be $xxx per month with $0 down, at $500 over it would be $yyy per month with $0 down or $zzz with $1k down. THEN you can know what is going on and know when you are getting a good deal and know how much profit (in theory) the dealer is making on the deal. It is possible that even at invoice you could not get the deal you want due to the lease factors - you need to know this and not guess at it. Otherwise, you are just leaving money on the table and paying too much on every deal.
It is not "is this car worth $3k down and $345 per month" it is "how cheap can I lease this car". The answer could be a TON less money than you are willing to pay in answer to the "worth it" question.
I am not at all offended - you're right, I did ask for the advice. And in a few short days I have learned a great deal about leasing a car. I started at the beginning of this thread and read the whole way through. I certainly feel better equipped to deal with the leasing deal now.
You might post where you are located (near what City and State) over in the Honda Accord Prices Paid and Buying Experience forum. Ask which dealers in that area are known for making the best deals on the new Accords. Someone who is in the area who has shopped them might can save you a lot of time and trouble. My local Honda dealers do not even get close to the prices I can get with a 3 or 4 hour drive - so I know not to bother them when car shopping since it just wastes my time and theirs.
Before you post, you might search that thread for your area to see if folks have already posted good and bad dealers.
You're very welcome, vital411. I wouldn't hold my breath for an enhancement to the Accord's lease program. It will almost certainly eventually happen, but I personally doubt that it will before the end of the year. Honda is still not providing any lease support on the 2008 Accord in November. Through November 30th, its buy rate lease money factor for the 2008 Accord is .00270 for consumers who qualify for its top credit tier and pay a security deposit at lease signing.
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Hi tw31555. I am not personally aware of any resource that provides accurate information on banks' lease programs to the general public. Having said this, I should be able to give you an idea of what the current lease program is like on the car that you are interested in. I just need you to tell me exactly which Accord you want, i.e. a 2008 Accord Sedan LX 4-cylinder, an '08 Accord Coupe EX V6, etc..., as well as how long you want to lease for and how many miles per year you need to be able to drive it. Let me know and I'll let you know.
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Welcome back Joe. Here's the information that you're looking for. You never mentioned how long you want to lease for or what mileage allowance you need, so for now I will assume that you want a 36 month lease with 15,000 miles per year. Let me know if you want something different.
Through November 30th, Honda Finance's buy rate lease money factor and residual value for a 36 month lease of a 2008 Accord LX-P 4-cylinder Sedan with 15,000 miles per year are .00270 and 63%, respectively for consumers who qualify for its "Super Preferred" credit tier and pay a security deposit at lease signing. The numbers for an otherwise identical lease of an '08 Accord EX 4-cylinder Sedan are exactly the same. the numbers for an otherwise identical lease of a 2008 Accord EX-L 4-cylinder Sedan without navigation are .00270 and 62%.
As far as the 2007 model goes, Honda is currently providing $800 dealer cash on 2007 Accord LX, SE, and VP 4-cyl. Sedans, $1,500 dealer cash on '07 Accord EX 4-cyl. Sedans, and $2,000 on Accord V6 Sedans.
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Hi jaybee85. Let's work up a sample lease payment on the car that you are interested in and see what we come up with. According to my calculations, if you were to lease a 2008 Honda Accord EX-L V6 Sedan with Navigation that has an MSRP of $30,895 and a selling price of $28,500 (which is a good deal btw) through Honda Finance right now for 36 months with 12,000 miles per year, your zero down, pre-tax monthly payment would be around $396, assuming that you qualify for its "Super Preferred" credit tier and pay a security deposit at lease signing.
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Hi douglasny. Honda is not currently providing any special financing rates on the 2008 Accord. Having said this, .00270 is Honda Finance's standard lease money factor for it and I would not be surprised if its standard interest rate for conventional loans was similar to the 6.5% that the standard money factor is equivalent to. If you want to finance an '08 Accord, the best thing to do would be to get pre-approved to finance it through a local bank, credit union, or a bank that does business on-line prior to negotiating with any dealers. Being pre-approved to finance the car that you want serves two purposes. First, it will give you an idea of what sort of interest rate you will qualify for. Number two, it often motivates dealers to try to beat the rate that you already have in hand.
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You're right, mitchc, Honda is not currently providing any incentives on the 2008 Accord. Even with this lack of incentives and the fact that this is a brand new model, your mother should still be able to do better than full MSRP. The Accord is a very high volume vehicle in a very competitive segment of the market. If dealers aren't providing substantial discounts on the '08 Accord yet, they certainly will be in the near future. Try stopping by the following discussion to see how much other community members have paid for similar cars lately: "Honda Accord Prices Paid and Buying Experience".
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I'm glad that you like this forum so much, rbevz67. Here's the information that you're looking for. Through November 30th, Honda Finance's buy rate lease money factor and residual value for a 36 month lease of a 2007 Honda Accord EX-L 4-cylinder Sedan without navigation with 15,000 miles per year are .00270 and 52%, respectively. When negotiating your lease on this car, make sure to take the $1,500 dealer cash that Honda is currently providing on this model into account. It will help you to negotiate a capitalized cost that is well below dealer invoice.
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Hi vital411. Honda's November lease program for the 2008 Accord is basically the same as it was in October. Honda still is not providing any lease support on it. As a result, if you were to lease one through Honda Finance, you would have to use its standard lease program. Honda Finance's current buy rate standard lease money factor is .00270 for 36 month leases to consumers who qualify for its top credit tier and pay a security deposit at lease signing. I would be happy to provide you with the latest residual values for the car that you are interested in if you tell me exactly what trim level you want.
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Comments
The lease money factor may be 0.00270, 0.027 would be 64.8% interest - 0.00270 would be 6.48% which is pretty high. Sounds like they may be jacking that number up too.
You can try a 3rd party lease, like leasecompare.com , they offer a lower MF but the ALG residual will be lower as well. They would buy the car at your negotiated price and lease it to you.
My guess would be if you took them a check for the $22,107 "selling price" they would not be happy, looks like they show the discount then take it back in expensive lease rates and add on fees.
Dennis
I live in Indiana, yes, you are right, honda said that I was likely not to pay the tax, but to call the DMV and find out. There is a possibility that I would have to. Trading it in would be much easier it seems like. Plus I wouldn't have to worry about people seeing it, test driving it, and going through the hassle, If I was to wait until the end of my contract, Honda said I should have some equity to roll in to the deal. They said most hondas do when the get turned back in, but I am essentially 4k miles over my contract right now, so either way I will turn in 4 months early. So selling it would only give me a few bucks, if I pay tax, and end up being more hassle than its worth. Plus I don't have to sell it, I am in no hurry, The 08's are still being priced high, so I am thinking to trade in the spring or summer of 08. By then I'll have about 32k miles. I can have 36k without being charged.
On termination of the lease, Taxpayer disposes of (i.e., sells) the vehicles in one of
several ways: (1) the Taxpayer directly sells the motor vehicle to the lessee through the
purchase option of the lease; (2) the Taxpayer sells the motor vehicle to the dealer for
resale to the lessee, who exercises the purchase option; (3) the Taxpayer sells the
motor vehicle directly to the dealer for resale to someone other than the lessee; or (4)
the Taxpayer sells the motor vehicle at auction to a dealer for purposes of resale.
Under any of these described scenarios, the Taxpayer will dispose of the vehicles
(“Relinquished Property”) at the termination of the lease through the Intermediary. The
Intermediary has been assigned the Taxpayer’s rights (but not its obligations) with
respect to the sale of the Relinquished Property at the termination of the lease. The
property is sold in accordance with the Taxpayer’s directions and instructions either to
(a) the lessee, or (b) the dealer for resale. In the first instance, the transaction would be
assumed taxable for sales and use tax purposes (e.g., sale to consumer). In the
second instance, the transaction would be generally assumed not taxable for sales and
use tax purposes (e.g., exempt for resale).
In this case the taxpayer is the lease bank and it reads to me that if you go through a dealer, then no tax, don't go the dealer and tax must be paid (by you). Your buyer would also have to pay tax as well.
It all depends on how the car is titled and who holds the title and in what names and if your state requires the tax to be paid at the time the vehicle is sold or at the time it is registered (tagged). Here and most other places the title is held in the lease bank's name and the lessee's name and they only person it can be transferred to is the lessee or a licensed car dealer. If it is transferred to the lessee then tax must be paid - since we are a state that collects the tax on the sale and not at tag time.
In any case, you can do this through a dealer for a modest fee and they will take care of contracts, temporary tags, etc and for sure no extra taxes. If nothing else it makes the buyer a lot happier than handing over a check and waiting weeks for a title in the mail.
Dennis
Your help is greatly appreciated. I used it to lease my 06 Pilot EX based on your numbers. Do you know the MF and residual info for the 4 cyl Accord LX-P, EX, and EX-L? I read that there is dealer cash for the 2007 Accords? Do you know the amount?
Thanks
Joe
Click me
Dennis
I purchased a 2007 Honda Accord EX in May 2007, on a sign and drive program(nothing down except 1st month's payment) for $299.87(incl all taxes) per month. Personally, I think your price is very good since the 2008s just arrived.
I would love to find out if you finalized the deal.
Thank you!
Is there a rule of thumb for how much the payment changes for each $1000 more or less up front, or in sales price? Once I heard $30 per thounsand, not sure if that was in front money or price.
'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
Does anyone know if the honda money factor on the 08 accord sedan of .00275 or 6.6% applies to honda's finance rates?
Looking for the 60 month finance rate.
Thanks
I have been shopping for a 2008 Honda Accord Lease. The deals are lousy. Here was the "best" I found on
a 2008 Honda Accord 4d Sedan EX Pzev Auto:
MSRP: $24,495.00
Resid: $15,431.85(63%)
Ann Mileage: 18,000
Excess Miles(what is this?)9,000 @ 10 cents...-$900.00
Adjusted Residual:$14,531.85
Buy rate: .002800
Dealer cost: $22,334.00
Selling price: $22,834.00
Adjusted selling price: $23,647.34
Down payment: 0.00
Assignment fee: $595.00
Cap cost: $24,242.34
Total profit $500.00.....Yeah, right!!
Payment for 36 months: $401.00(incl 6% CT tax)
**Fyi, this is Tier 1 pricing***I have great credit**Same specs EX-L with leather and Navi: $479.28(incl 6% tax)
the money factor is right around standard bank numbers at this point, I think. No, Honda is not offering up a subsidized money factor on the '08 just yet because they don't need to. So the deal is what the deal is. The residual is quite good.
'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
As a consumer, the higher the residual, the less depreciation you have to pay during the lease. To put that into perspective, if you are looking at a $24k car with a 63% residual, you only have to pay $8880 in depreciation. Let us say you get the car for $1k below MSRP, then that means you only pay $7880 in depreciation. On my '06 Accord, I leased it in May '07, so the residuals at that time were 56% for a 3yr/15k lease. MSRP was about $28k, leaving $12,320 in depreciation. But, of course, being later in the year and later in a model run, I got it for about $4k off MSRP, bringing my depreciation to be paid to about $8400.
So, if you think about it, you are paying essentially the same deprecation for a brand new model in high demand that people have paid who waited till the end of the model run for great deals. Of course, those deals also included and ultra-low subsidized money factor, which you aren't able to take advantage of at this point.
'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
The base residual is 63% for 3yr/45K.. Since you are getting 3yr/54K, the residual is lowered by $0.10/mile.. Resulting in a $900 lower residual.
regards,
kyfdx
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I am taking delivery of the Accord EX today, $309 per month with $1000 down. When dealing I kept pushing, but I couldn't move further down on the price although I thought that I could have gotten $300 per month. I did try. This dealer has a good rating by people (and another one who I should visit in the future). I had bad dealers and walked out (other confirmed my feelings). Considering the higher money factor I guess I did ok (not as good, but not ripped off I guess). Then again with everything we buy we kind of get ripped off (but we try to minimize this though).
There is also a matter of opinion of leasing versus buying (some told me leasing is not worth it). My wife got me started with leasing, and I feel it is best. You don't have to mess around with a trade (or have crazy people show up at your house). You need to keep a car for 10+ years (fixing it, etc.) save more, but who wants a car that long? My 1995 Intrepid with 146K miles has been fixed, etc., now the brake line leaks. Estimating my total cost over the years it is not a "night & day" price difference plus the personal work I did on the car.
My opinion only. Others welcomed. Your $299.87 makes me feel better about this, but didn't you have a low money factor? I guess they get the money one way or the other (everything balances out). I wonder if next time if there is a low money factor, whether I can get the least negotiated at $108 below invoice again. My Civic SI lease (had since May) was $297 over invoice, $267 per month/36 months/15K miles/$1000 down.
Rob
To get the best deal on a lease, you don't "play payments" with the deal - you usually end up paying too much.
You negotiate the price of the car with the dealer, just like you are going to buy it. Once the price is settled you get the lease terms. Most Honda dealers to not mark up the bank fee and money factors on leases, but you still have to check it.
If you try to judge a deal by the monthly payment you have no idea how much you really paid for the car, except by comparing your payment against another lessee's payment which can be misleading.
If you are getting the lease buy rate then the only thing left that determines payment (not including TTL) is your negotiating a lower price and the amount of money you want to pay at signing (which should be as little as possible). There will be no "I thought I could get" in the equation. You run the numbers to see how low the price would need to be to get your payment goal. If the price is a realistic one then you don't sign until you get that price.
Dennis
I just saw the EX-L V6,navi, white diamond. It looks very classy! They wanted $31,488 for it. You can see it on Ebay! I am sure it looks even better in person. I might consider this model with the 6cyl if better deals arrive. The 6cyl has little difference in gas mileage compared to 4cyl. but is it worth the extra $4k more for navi and a 6cyl?
If I want to pay my entire lease up front, does that mean I should ask the dealer to take out the "money factor" since the lender will be getting all their cash up front??
Why? Becuase while the lease payment is based on the difference between the selling price and the residual, the lease bank has to buy the whole car. So if you lease a $25k Accord with a $12.5k residual, the lease bank has to pay out the $25k up front and you pay $12.5k + interest on the whole $25k.
I would doubt that Honda has a single payment lease nor would most lease banks do it on a Honda. With these leases the MF is lower than a pay by the month lease, but I would rather but the money in the bank and pay the monthly payments. If the car is totalled or stolen your up front payment is at risk.
Dennis
In any event, she got offered about $2000 down which includes approx $870 in sales tax, $595 in bank fee (I guess from American Honda), $260 for 3 years of license and registration paid in advance and another $290 for first month's lease. The monthly payment will be $290.
She was told the sale price was MSRP (approx 21,700) and I do not know the residual value. Before I go chasing other offers from competing dealers over the internet, I was wondering what others thought of it. My brother thinks the deal should be no money down, but I think the incentives are not that great right now for a new model. Any comments are appreciated!
I would prefer no money down, just to give you an idea, someone earlier posted they got an EX-L 4cyl, for $375 a month, with $0 down! That is a little steep on that model, but, it is with no money down. $290 with 2k down is high.
For every $1k down you take $20-$30 off your payment, so therefore with $0 down you are looking at about $350 payment! So really that dealer isn't doing you any favors when they want $2k at signing and your payment is still $290 on an LX, which is $21,700. Point is, you should be able to get the LX, with $0 down for about the $290 payment! Try not to put money down on the lease, for it does not go to your actual principal, rather goes to lower your payment. Money factors and residuals are not good right now, either wait, keep trying, or get a better deal on the 07's, or keep looking. If you need to put some money down, keep it realistic, and know exactly what is for, and if it can be worked better.Right now they'll tack on anything! Remember, don't accept the first offer, send in many quotes via email. Good Luck! Don't hurry either, you'll find yourself wondering why I didn't wait or research more. I am waiting myself, I'll get the 08 EX-L Navi.
I love this forum and hope it can come through one more time...
Could someone please post the current residual on a 2007 Accord 4-door EX-L 4cyl non-navi automatic transmission at the end of 3years/45,000 miles?
You are right, and I see why you are saying this. I would precalculate the monthly payment based on the invoice price (or do it right in front of him with my notebook if I need a revision). I pushed the monthly payment down to fit my cap cost I had in mind. This may be the wrong way, but I wound up with a selling price of $108 below invoice.
Now here is a funny story that happened today. I got a voicemail from the financial guy from the dealer (we took delivery of our 2008 Accord on October 22nd), and he said my wife and I need to come in to sign an additional paper because the residual value ($15,921.75) is not correct. He said the monthly payment will be the same ($309).
To me this sounds like the residual is higher which means that the cap cost changes (which changes the monthly payment). I don't think the residual would be lower (and wanting us to sign). If the residual higher (like I am suspecting) then can hold them to lowering my payment since it is the "selling price" of the car that you work from (since they would have to fudge the selling price to fit the $309 payment)?
I am waiting for a call back from them. It almost sounds like they are trying to fix their mistake, get us to sign so we can't say anything later. Sounds fishy to me.
Any suggestions on what this is all about and what I should do?
Rob
We test drove tonight a new accord LXE and it was very nice. The dealer gave us only two days to make our leasing decision. The final cost was $350.00 for 36 months, 12,000 miles and $3,000.00 down. What questions should I be asking? I want to be well informed when I call the dealer back. The money down is to keep the monthly payments more in line.
The residual is set by the lease bank and can't be changed - either by accident or on purpose by the dealer. The lease bank will not fund the lease if the numbers are not correct. With a closed end lease they have to sell you the car at lease end for this price - and if the number is not correct they would be stuck with it.
If the residual on the new paperwork is higher, then your payment should be less. To charge you the same payment with a higher residual would mean they would have to raise your price. If you agreed to the terms of the old lease ($xxxx down, $yyy per month) then no BIG reason to object to a new contract that has, in effect, the same terms. That said, to make you come back to the dealership because of their mistake they should offer you something - a lower payment or some coupons (get it in writing) for free oil changes, free accessories, or something.
If the residual on the new paperwork is lower, then your payment would be higher. To keep the payment the same they would need to lower the selling price - which they should do.
The other thing you can do is just say no, and give them the car back and get a refund for any money you have paid them. Somewhere in your paperwork is likely a form you signed that says if the lease/loan does not fund you have to return the car. It may or may not include clauses that say you have to pay so much per mile and so much per day for the days/miles you put on the car before you return it. If there is such a document, that would be your cost for unwinding the deal. If you want to, that is.
Dennis
Also, I would not pay money down into a lease. If the car is totalled or stolen your insurance will pay off the lease bank and will likely give you nothing - so you will be out that money you put down. Put the money in savings or something and draw it out as needed to make the effective payment lower if you have to, but don't sink much into the front end of a lease.
To get a good lease deal, you start with by negotiating the price of the car - just like you were buying. Once you have a good price, then start looking at the lease numbers.
The current Honda lease rates are not anything special, if you can wait you should be able to get more favorable rates in a month or two or three or four - and can probably get a lower price too.
Dennis
The money down is our way of lowering her first car payment. I know she's losing this, but whether we put it up front, or add it on over 36 months, we almost equal. Not considering the facts you brought up, we were looking only at a short term fix.
It's a beautiful car of course and she's driven cars from six other manufacturers. They all seem to be in this lease range, but without all these features. So now she and I are both confused.
Well, Don't be confused, Is it the EX-L 4cyl, your wanting to lease? That is a great car! But remember to send in many quotes via email to as many dealers. You will see if they are all in sync with one another. Putting $3k down is alot of money to put down to still have $350 payment. Remember though, right now numbers are really strict, but you should be able to do a little bit better. When you send a quote in, tell them $0 down on the lease. I had 1 quote say $415 a month for an EX-L 4cyl, with Navigation, with $0 down, SIGN AND DRIVE. So be careful. My quote is much better than yours. Keep researching. Send in quotes. There are other dealers out there. Good Luck. You can do a deal like they sent me, but keep looking. This dealer would be making some $$ on your deal! Tell them immediately $0 down, then you'll see the true cost of the lease. The EX-L 4cyl, navi, is what I want, but I am waiting when there are better numbers.
See if you can lease the car for $24,700.
It is okay to put some down, but start with $0, then decide a more realistic deal. See if any fees can be adjusted.
Your daughter is lucky to be getting such a nice first car
You might also look at the Civic coupe and the new for 08 EX-L model. Better gas mileage than the Accord and around $3,700 cheaper at INVOICE than the I4 Accord coupe. Probably better (or no worse) lease terms as well - and maybe a deal a lot closer to invoice as well.
Dennis
She did drive the Civic and it was also a nice car, but frankly, after driving the Accord first, they didn't really compare. She is willing to compromise and wait for an EX, but of course, was told it could be December before they located what she wanted.
So, that's where I am right now.
Have your tried calling around (or webbing around) to other dealers in the the area or within a 200 miles around where you live? There could be EX coupes sitting on a lot just down the road a bit - or a dealer more willing to deal on price. If you found a left over 07 coupe there is $2,000 in dealer money on them.
I understand the Accord is nicer but this is a first time buyer/lessee and you want to keep the payments down so the Civic might just make more sense. She can get a nicer car later when finances dictate she can spend more. A new Porsche 911 Turbo is a lot nicer than the RX-8 I used to lease, but gosh darn it, the payments were so much more I had to make do with the lesser car
Dennis
For this lady, it is a nice car your daughter is getting. My wife has a 2008 Accord EX sedan (1 week ago, about 165 miles already), and I have a 2007 Civic SI sedan (got in May, already 5500 miles). We rotate our cars for our carpool to work (60 miles per day).
Anyway, don't make a deal unless you are sure you got the right deal you are getting. I may have not gotten the best deal possibly, but I did the best I could for the time I got the lease (which I don't think is horrible - my opinion).
For the lady, please update us with your (great) deal you get.
I'm hoping for maybe a deal with $1,500.00 down. If we can work that out, we may just get it and she can ditch the Saturn.
Thank you for your comments.
To me, you are doing the whole lease deal all wrong (no offense but you did ask our advice). You are playing payments with the dealer. You look at it as "all these cars are around $350 per month so this must be an OK deal". WRONG! You always negotiate the price first including the dealer fee, then work on the lease details. A lot of the cars on your list are slow sellers and some have customer cash and/or discount leases/financing on them. If you got a good deal on one of those, you may be paying a lot less.
In any case, always deal on the price of the car from invoice up. Once you have the best price, then get the lease numbers and check them yourself. Make sure you are getting the captive lease bank's "buy rate" with no markup. This rate will be the same from all dealers, so that just leaves getting the best price for the car with destination and dealer fees included. Once you find the best price, the payment is what it is and the only way to make it lower is to deal the price down more or put money down.
At this stage you are guessing "maybe they will give me that payment with just $1,500 down". Don't guess - know. Once you know the invoice (available online) the taxes, fees, and the lease money factor and residual you can work the numbers yourself. If you leased at invoice it would be $xxx per month with $0 down, at $500 over it would be $yyy per month with $0 down or $zzz with $1k down. THEN you can know what is going on and know when you are getting a good deal and know how much profit (in theory) the dealer is making on the deal. It is possible that even at invoice you could not get the deal you want due to the lease factors - you need to know this and not guess at it. Otherwise, you are just leaving money on the table and paying too much on every deal.
It is not "is this car worth $3k down and $345 per month" it is "how cheap can I lease this car". The answer could be a TON less money than you are willing to pay in answer to the "worth it" question.
Dennis
Before you post, you might search that thread for your area to see if folks have already posted good and bad dealers.
Dennis
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Through November 30th, Honda Finance's buy rate lease money factor and residual value for a 36 month lease of a 2008 Accord LX-P 4-cylinder Sedan with 15,000 miles per year are .00270 and 63%, respectively for consumers who qualify for its "Super Preferred" credit tier and pay a security deposit at lease signing. The numbers for an otherwise identical lease of an '08 Accord EX 4-cylinder Sedan are exactly the same. the numbers for an otherwise identical lease of a 2008 Accord EX-L 4-cylinder Sedan without navigation are .00270 and 62%.
As far as the 2007 model goes, Honda is currently providing $800 dealer cash on 2007 Accord LX, SE, and VP 4-cyl. Sedans, $1,500 dealer cash on '07 Accord EX 4-cyl. Sedans, and $2,000 on Accord V6 Sedans.
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