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In your case, not much "logic" to hit them with to negotiate the price - since your car is worth as much or more trade as the buy out price
Depending on the state, you will be paying sales tax on the buy out and in most every state when you sell it your buyer will have to pay tax as well. This double tax can cut into some of your profit. Here, the state tax is 7% so on a $12k deal this raises the price $840 - which seems like a lot of money to spend just to hang on to the car for a few more months. A lot just depends on how much you mind having to sell your car yourself. Even with the double tax, if you don't mind the hassle of it you should still be able to make money on it. Seems like most folks these days do not want to make that kind of effort
The other thing you can think about is leasing or buying a new car now, but getting the car dealer to buy the leased Accord off of lease end. You bargain your new car price down low - say invoice for a new Accord, then make them buy your car for a fair trade in value and have the extra "profit" taken off the price of your new Accord. Honda dealers love to get late model, low mile off lease Accords (that is one reason they don't negotiate the price). They can CPO them and sell them for a nice profit. If you don't turn it in and get them to buy it, then anything they allow over buy out is your money.
Dennis
The pamphlet AHFC sent me said my dealer can give me financing options. I don't suppose then I would be able to negotiate the price? If not, I'd probably be better off getting a loan from my bank. (They keep sending me junk mail telling me I'm "pre-approved" for a low-APR loan, maybe I'll take advantage of it.)
If your CU will do a cheap rate, you can print your own ODO statement and just mail AHFC a check for the buyout. In that case you will proabably have to pay the sales tax when you title and register the car. I think a lot of CUs are doing 4.49% to 4.9% right now on cars (new or used). Honda COULD have a better rate than that on a buy out, but I would not count on it.
Dennis
NO ONE uses blue book, they might as well put it in the restroom stalls instead of tissue paper, cause that's all that "book" is good for.
You want real, ACTUAL values, you need to use AUCTION numbers like Manheim.
This is the TRUE value of what your car is actually worth.
If Kelly is so good at giving values for cars, why doesn't he just buy cars for HIS published prices from those sellers?? (IE: give YOU what he SAYS YOUR car is worth)
You can have an 08 Acura TSX right now with no money down and 375-385 a month.
All of above assuming 15 Miles a year or less.
I got a quote from a local dealer on a 2008 Accord LX for $199 month w/ about $2100 down (after fees,taxes, etc). I feel like this is a pretty good deal. I just need the plain vanilla car so this seems to work for me.
I was looking at prices, and saw the Accord Coupe LX-S retails for about the same price. I asked for a quote on this and the dealer gave me a price of $325 a month with the same amount down. Why is this? Can I press the dealer to match the $199 for the sedan?
I have my heart set on the Coupe, but not for that much cash
To get a good lease deal step #1 is ALWAYS to negotiate the price of the vehicle. Always.
Never contact a dealer and "play payments" with them and never tell them what you want your payment to be. Find out the lease rates and residuals and learn how to calculate a payment or use a free lease calculator online. Then plug in your negotiated price for the car (should be around invoice) and work out what the payments will be. Learn how your state taxes leases and add the tax and see what your payment is at your price.
If you can live with that payment and your are at about invoice, you have a decent deal. If the payment is still too high, then you need to get less car or bargain the price down or just wait until deals are better, rates are lower, or you have more income and can pay more each month.
As has been mentioned, do not sink a bunch of your money into the lease to lower the payment. If the car is stolen or totalled you may lose it all. Keep your money in the bank and each month draw upon it (if needed) to in effect make your payment lower.
Dennis
In any case, for those looking to lease a Honda Accord V6 this month...36mo/12k term, residual 58%, mf 0.00245, that's right baby 5.88% interest. YICKES! Not lease worthy if you ask me. I big WHATEVER to Honda's Spring Clearance "Sale".
I love leasing and have done many of them over the years - I have 3 leased vehicles right now - but you have to get a good deal on the vehicle and the rate.
I think the I4 Accord rate is better if you want to abandon your need for "more power". You could check 3rd party lease rates, but I would not - I would hold out for something better. It WILL come eventually. The Accord we leased in 05 was 1.15% effective IIRC. If they bring those sort of deals back Honda will be able to lease a lot more Accords.
Dennis
The sedan is on "special", any good tips to get what I want? The MSRP seems fine
We would rather you ask first and get a good deal than ask after you sign the papers and got ripped off
Dennis
He called yesterday with the new May number. Its stil not great but it is better.
Accord forum i know but FYI---Toyota just dropped their best MF on the Camry to .00099
My opinion--08 Accord is simply the best looking reasonably priced car on the road!!!
Toyota cars are sold in a regional manner - which is really stupid on their part. The region execs determine which options and groups are available and also set lease and loan deals. So while you may can get 0.00099 where you live it may not be the same for others. The Camry may not be for everyone, but they are nice cars and someone not in love with the Accord should be sure to check available deals on those as well.
Dennis
If you live in Jersey you can go to Honda RT22 Hilside $2,000 down $300 a
month EX-L out the door. I got my LXP there $1000 down $265 a month out the door,
That new MF does apply to both the 4 cylinder and the 6.
.
If you put $5000 down (or any amount of money) on lease and the car gets totaled the next week you always lose all of what you put down, but if you purchased and put the same money down, the most you lose is the difference between the car's value and the payoff. The insurance payoff on a purchased car is the value of the car regardless of your loan balance even if you owe less than the payoff. If you put money down on a purchase and owe $15,000 and the car's value is 19,000, the insurance company gives you a $19,0000 and you have $4,000 of your money back. On a lease the insurance payoff is limited to the remaining balance, period. GAP insurance will cover additional money owed beyond the car's value. So all of the down payment put on a lease vanishes no matter how much it was.
So there is no reason to not put as much money down as you can when you finance since it doesn't increase your risk the way it does on a lease.
You could put $10,000+ down on a purchase (trade-in value etc) if you wanted and you are not risking any more money with a large down payment than with none.
The money you would have put down on a lease to lower the payments would be better off kept in an account and used to subsidize making the larger payments. If the lease payments are $100 per month higher with $0 down than with $3500 down, then you can put that $3500 in the bank and pull $100 a month out of that account each month to help you make the payments.
36mo/12k miles/yr - Residual 58% - MF 0.00245
Anyway, I don't have any mortgages or anything like that, only a credit card I use and pay off every month.
My credit score was reported at 720, but I'm afraid this is not good enough. Will my parents have to co-sign or take the lease in their name?
Anyway, how does Honda approve leases, and do they do any lease rate tiers/levels I should know about?
I may be coming to this discussion a little late, but better late than never, right?
The term itself isn't part of the formula, however, based on the term you want, the dealer can provide you with the residual and money factor numbers you need to calculate your lease.
Right now, the only concern I would have is more about whether your history is long enough vs if your score is high enough.
2008 Honda Accord EX V6 Sedan
MSRP - $26,595
Sale Price - $24,553
36 months
12k p/ year
Residual - $15,957.00
Money factor is .0020
Monthly - $309.54 w/ tax
Taxes - $2,056 (will prepay as down payment)
Is this a fair offer or too much?
Thanks
I ended up at Rt22 Honda in Hillside LXP $1,000 dn, 12,000 m 36 mths. $265.00 out the door last week of March. I let other people do the shopping for me vie the internet and real life pricing, my daughter knows the credit mgr. very well down there. Look them up if you havent already.
Other than that sounds like a good price as of now.
What about prices/deals on sign and drives, i.e. $0 money down, including first months payment and all taxes/fees rolled into monthly payments. I don't know why people still put money down, as Car_Man always says, "never put money down." If the car gets totalled or stolen you lose all your money. My last lease was a total sign and drive for less than $300 on an Accord. Hoping for the same.
Anyone else get a sign and drive deal?
Hey you know what I say if you can get the car within your budgat go for it. My choice is the $1000, it ends up as your first mth payment, dest, taxes etc so you either pay those up front or your going to pay it in the monthly payments.
As you know over 3 years it's nice to know what your monthly payments are in case you opt to go out and buy something else on credit and can't can't pay for it in cash.
Car_man
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Prices Paid: Buying & Leasing Experiences Forum
MSRP is roughly $23000
do you guys think $1500 down, ~$220 a month is feasible for this vehicle? 36 months / 12k of course.
I'm trying to get out as cheap as possible
Deal the price down first, then worry about the payment.
In your case your lease is longer than the base warranty on the car, which you should not do. You are also putting too much money into the lease up front.
Dennis
I thought these were set rates for the U.S. through AHFC. I see some people getting .002 and others over .0028.
Dennis
I was told I qualified for top tier credit from Honda but I haven't been able to get the money factor and residuals yet?
Car_man
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Prices Paid: Buying & Leasing Experiences Forum
im new to leasing, right now im just researching which car to get. I wanted to get the Accord Coupe but the monthly payment is almost the same as that for the acura tl or an audi a4.
here are the details that i was told over the phone.
650 down,
36 month lease, 15000 miles, 2008 Honda accord coupe Ex.
385 + tax a month
MSRP : 24595
MF : 0.00245
Residual : 14019.15 ( 57 %)
I haven't haggled or anything with the dealer as yet, this the quote that he offered me over the phone.
I think the payment is too high for a accord, what do u guys think would be a reasonable monthly payment for a 2008 honda accord coupe ?
Although worth the extra expense for an Accord, I would still wait to lease one. Especially in a year or so they'll have better deals.