2013 and earlier-Honda Accord Lease Questions

bvdj84

That is exactly where you need to be on that model and lease!!

Congratulations!

Enjoy your new ride!

catalyst6

So I had my first serious negotiation with a dealer today. Looked at LX-S coupe. I eventually had to walk because he would not budge in price.

MSRP: $23565
Sale Price: $21200
Tax: 3%
Doc Fee: $395
Acquisition Fee: $650
Money Factor: .00245
Residual: 58%

I wanted to put $1800 down, but he's coming up with $267.12 a month with $2500 down. I still feel this is really high. I've played with some lease calculators and it appears to get the payment I want (~$230) I'm gonna have to cut the acquisition cost in half and get the price of the vehicle down to $20,000.

He looked at me like I was crazy when I asked to go lower. Am I for expecting that? The only other option is to wait for a better money factor.

dwynne

Isn't MSRP on a coupe LX-S w/auto $23,295? Did yours have some dealer added options on it?

Invoice is $21,251 (when the MSRP is $23,295) so your price is below invoice except: the $395 doc fee and the bank fee from AHFC is $595 and not $650.

If the dealer is jacking up the bank fee they may be jacking up the money factor as well.

If you take your price plus dealer fee and the AHFC bank fee you get $22,190. 58% of $23,295 is $13,511.11 , With no interest and tax, the payment (($22,190 - $13,511.11) / 36) would be $241.08. At 0.00245 it would be $328.55 base payment, with 3% tax it would be $338.40. If I take $1,800 off the $22,190 cap cost I get $282.36 per month with tax. If I take another $700 off the cap I get $260.57 per month with tax. Note that if you say "$1,800 down" I took it all off the cap cost, so you would still owe for first payment and maybe security deposit on top of the $1,800. If you only want to pay $1,800 at signing your payment will be even higher.

So other than maybe having a high doc fee and overcharging you for the bank fee and maybe the MF "it is what it is". Even if they dropped the doc fee (they will not) and lowered the bank fee (they should) with $1,800 down you are going to be around the same payment.

Dennis

catalyst6

Thanks Dennis, I think you are right. Not sure where to go from here as I think that is a bit much for a this trim level per month.

catalyst6

Forgot to add this in my earlier post, but does anyone think money factors for accords will be coming down in the next month or two?

Seems like with the gas situation it might go up for Civics, etc.

dwynne

I would hope so. They have been high ever since the new Accord launched. "Back in the day" (3 years ago in my case) you could get a MF that worked out to around 15 to 2% effective interest and not this nearly 6% rate they offer now.

If folks would quit leasing at these high rates Honda will have to drop them to lease Accords.

Dennis

gtomberlin

From mid 2003 until February 2007, I ran Finance and Insurance for a Honda Dealer. During that time, they were 100% Non-negotiable on the residual purchase price option that had been stated on a lease contract they had financed. If your mileage was in line with the lease terms, Honda Financial Services was extremely accurate with their residual estimates from 3 to 3.5 to 4 years earlier when you committed to your lease. If your were over your contracted mileage, you would be responsible for mileage penalties that would essentially offset any losses they would incur at the auctions for excess-mileage Accords. I expect that eventually Accord end of term values may become negotiable as with Domestic Manufacturers Lenders, but only if Honda Financial Services begins experiencing losses at auctions on lease turn-ins.

gtomberlin

Does anyone know what current residual %'s and Money factors are for 08 Accord Sedan EX-L I4 w/automatic trans through Honda Financial Services for 36 months and 12,000 miles per year?

clasys

Hi all,

Just wanted to share a quote I just got from one of NJ dealers. Their internet rep is very nice and gave all the details via email & phone.

2008 Honda Accord LX-P Auto
MSRP $22,795
Invoice $20,720
Net cap cost $20,645
Residual 61%
MF 0.002
Fees
(bank fee $595,
doc fee $199,
tire tax $7.50,
MV fee $187.50) $989
Term 36 mo
Mileage 12,000 year

$283 + tax a month, with only 1st month due at signing.

Negotiated price (net cap cost) is just $75 below invoice, I feel I can lower it by another couple of hundreds if I come in.This is basically 1st fully detailed quote I got in a week from 7 dealers I've been trying to work with via email without coming in first. Others have been like "your lease will be 269 a months for 36 months 10,000 miles a year." Thats it.

Whats you guys think of it?

packer3

Not to bad, including tax will proably be around $300 per mth, are you sure there is no other monies to put down, the $269 is better if you can live with the 10M.nothing down.also make that first payment go away if they want your business.
I put down $1,000 3/36 12,000 miles $265 per mth. for my LXP at Rt.22 Honda in Hilsdale that was the out the door price.

catalyst6

The dealer I spoked about in a few posts up went down to $257.

I think this is probably the best I can get at the current money factor? Should I bite? I still feel its a bit much considering I could probably almost do a EX sedan for that price.

Now to find one in Polished Metal Metallic

clasys

Thats what dealer told me, nothing down, just 1st payment out the door. Your 265 does that include tax? I got quote from rt 22 honda too, they want 295 + tax, all included. Didn't give me the breakdown though. Just 295 + tax, all included, with 1st payment due at signing. Who did you work with @ Rt 22 Honda? Thanks!

packer3

Yes $265 was with the tax included $1,000 down. The finance manager is who I worked with his first name starts with an M!!. If your putting nothing down then tell these guys what that means, they eat the 1st payment also. Just tell him where you want to be because of your budget.

mikeatschaller

dont hold your breath too long I work at a honda dealer in connecticut and that is a great price for that car. There isnt gonna be any specials on coupes this year. We cant even get coupes in colors people want as is. Why put incentives on cars that dont need it.

omkaramp

Hi-

We got a new lease , just wanted to let you all know

A 2008 Honda Accord EXL
$316.00 (including taxes) / Month for 36 months (no down , just taxes and first month payment of $1417)

We had returned our old lease car. Which had only 32,000 miles on it.

The MSRP of the car is 26495.00

We had just gone it to check out the Honda , and were planning to do a comparison between a honda and toyota , but they pushed us in taking one. They started with 350 , and went down to 316.

We bought it at openroadhonda in new jersey.

prince2100

4 cyl or 6. also, did u say $1,417 or 417 total at sign-in? if 1417 thats a lot down. how many miles/per month did you get?

steinad

I think I got a good deal. I have been looking for months now and finally located the car I wanted on Cars.com at MattBurneHonda in Scranton, PA. I called the dealership and was offered $389/month 12K 36 month, sales tax included and $499 down including 1st payment and tags. They are charging me $250 to have the car delivered to me in NY but even with the $749 down it still blows away any offer i received in the tri-state area ($379 and $1500 down!). Plus I got the exact color (Belize Blue, Ivory Interior) and interior I wanted, I am very pleased, thank you for everybody's help on this forum, I'm pumped to have my new car.

lunchmeats

Seems like a great deal. Is the $1000 TOP, what model Accord, where is the dealweship? I am in the market for a new accord. How many miles/ months?

Thanks

omkaramp

Its a 4 Cyl Accord EXL, and its $1417 (Which includes the first month payment and handling fees) . 12000 Miles per year.

aeggroup

Hello All.
I have no idea what current offers for Accord with Navi are. I was offered EX-L model ( 4cyl ) with Navigation for $377 including tax in NY. Total due at delivery $1,165. This is for 36 months, 12,000 mile a year. Could somebody tell me is it a good deal or I can find something better . Thanks.

kingpcgeek

No one is going to tell you if it is a good deal until they see what the deal is. Never lease a car based on payment. You need to know the purchase price, residual and money factor to see if you are getting a good deal.

packer3

In Jersey you could have had that car at $2,000 dwn, $300 a month 12,000 mls, OTD I know three people that just got them recently.

aeggroup

Why Do I have to care about purchase price, if I don't have any intention to buy this car after lease ends ? Is it going to be better to pay higher payment with lower purchase price of the car ? I think I need my monthly payment to be as low as possible with lowest amount of money out of the pocket at sign in, no matter what purchase price and residual value dealer puts on the deal.
Explain me if I'm wrong and why ? May be I'm missing something .....

aeggroup

When you say $2,000 down - what do you mean ?
I understand it like :
downpayment - $2,000 plus all Honda Financial, DMV, paper, etc fees

or you mean drive off $2000 ?

???????

packer3

Meaning these guys went to the Paramus NJ dealership and leased the Accord
EX-L's, they put two grand down, 12,000 miles per year, 3 years, $300.00 per month out the door, no additional cost, that covered everything.

aeggroup

Thank you for info. After my calculation - it looks like $348 per month with mine $1,165 out of pocket. Sounds very good. Thanks.
BTW - that I looked at your original message - can you confirm - this deal was with NAVI or without ??

packer3

no navi

aeggroup

Thanks. So...with NAVI my deal sounds like fair. NAVI model cost about $3,000 more than without it. I don't know if I'm doing correctly, but usually I divide this amount by 2 and than divide it by length of the lease ( 36 months ). After my calculation it is $41. In addition - out of pocket money difference is $800. Divided by 36 is $22.... 41 + 22 = 63. Lease must be around $365 with $1,165 out of pocket. Thanks for info. I'll talk to my dealer...

kingpcgeek

You asked if your were getting a good deal. I simply gave the answer that any leasing expert would say. To know if you are getting a good deal is real easy:

What is the purchase price of the car? Is it close to invoice then that is good.

What is the residual? The last numbers I saw from Honda were around 59% for a non-nav 12,000 miles/36 mos.

That will be reduced on a nav car since there is typically zero residual value on navigation after a lease. You say you have no intention of buyting the car at lease end, but when you lease a car with nav you are buying the nav. (Another reason not to spend $2200 on nav)

What is the money factor (interest) they are charging you? Honda Finance is around .00235 (5.64%) the last time I checked. If it is higher for you chances are the dealer is marking it up.

With those numbers and what the dealer is charging for doc fees you can pretty much determine on your own whether you got a good deal.

I will reiterate that no one here will tell you if you got a good deal without those numbers.

dwynne

Why Do I have to care about purchase price, if I don't have any intention to buy this car after lease ends ?

Typical lease newb mistake - playing payments with the dealer.

The residual is fixed by the lease bank and can't be changed by the dealer and is a percentage of full MSRP including destination.

So, say the car you want has an MSRP of $30k and a residual on the lease is 54% the residual would then be $16,200.

Your payment is based on the difference between your cap cost (the car price plus any other fees you roll into the deal, like the $595 bank fee) and the residual. So if the dealer charges you $29k for the car, you have to pay for $12,800 of the car plus interest and taxes (and any fees you roll in). If you bargain them down to $27k, then you only have to pay for $10,800 of the new car. The $2k difference is nearly $56 per month not counting interest and sales tax. So THE MOST IMPORTANT part of the lease deal is the price of the car.

Otherwise, you really can't tell if you have a good deal or not. Some dealer may also make your dreams come true by leasing you a car for little out of pocket and low monthly fee - for a 48 month or 60 month lease if you don't watch out. Or worse, an open ended lease that requires you to buy the car at lease end of make up the difference between auction value and lease residual.

Dennis

aeggroup

Thanks for your very long explanation, but ....sorry to be annoying....the bottom line of your explanation is a monthly payment. So, if I will refraise it - the lower the monthly payment - the lower purchase price and higher residual....
I'm may be not the smartest person in leasing, but my logic helps me to lease cars. My other car is E350 - 2008, which I'm paying $515 monthly with $1,200 out of pocket due at sign in. Honestly - I never even looked at the purchase price on my contract....why.....after 27 months I will return the car and forget about it.
Even if they charged me 10% interest - I don't care with this payment.
Good luck to you anyway.

dwynne

My other car is E350 - 2008, which I'm paying $515 monthly with $1,200 out of pocket due at sign in. Honestly - I never even looked at the purchase price on my contract....why.....after 27 months I will return the car and forget about it.

Even if they charged me 10% interest - I don't care with this payment.

Because someone who negotiated the price and / or made sure the dealer did not mark up the money factor may could have leased the same car for $450 per month with $0 due at signing.

You have fallen into the leasing trap the dealers want you to fall in to - this payment for this car is not bad so it must be a good deal.

My goal is to lease the car I want for the least amount of money, not to just say "that is not a bad payment for this car".

You can do what you want, but you came into the forum to ask for advice about getting a deal on a new Accord and you continue to reject that advice.

Dennis

aeggroup

Okay..whatever...thanks for advice....

packer3

Aeg
I agree with you 100%, as long as you do your homework on what car your going to get, because you already have a pre set budget cap number for your monthly payment in your mind already, who cares about the other stuff, let the next guy who buys the car after the lease is over pay the residual factor.

dwynne

If I were a car salesman, I would LOVE for you two to come walking in looking for a deal .

If, by properly negotiating the deal you could drive the same car for less why wouldn't you? If you could get the EX-L model for the same payment as you paid for an EX model why wouldn't you? If you leave any money on the table - even if it is just a few hundred, why would you?

Dennis

kingpcgeek

I agree with you dwynne. I have leased 6 cars in my life and I always concentrated solely on the payment. I have to wonder how much money I have left on the table since I have learned the proper way to lease a car. My G35 is coming off lease soon and that will be the first opportunity for me to really know what the heck I am doing and know I am getting the best deal I can when I sit down to lease my new Accord EX-L 6cyl Coupe or G35 (It will be a game time decision). After learning the ins and outs of leasing I know I got royaly screwed on my wife's IS250 two years ago when I signed a 48 month US Bank lease for $500 a month and $3000 OTD. At that time thought it seemed like a great deal because it was the best payment I received from all of the local Lexus dealers.

A few of my co-workers are coming off lease soon as well and they all have been coming to me for leasing advice. One guy saved $30 a month on his 325i because he had the proper info so that the salesman didn't try to snow him.

dest

I'm hoping emailing an internet manager will cut out the usual dealer crap, but my first reply isn't too reassuring. I asked what the purchase price, money factor and residual were on a particular vehicle were, and this was my response, in all red bold text:

I have a great deal for you through the end of the month if you would take advantage of it saving you at least 1,116.00 per
year in savings, this is Biggggggggggg!!!!!! Only good through the end of month call me now!!

P.S.

You must act fast!!

*****
Internet Sales Manager
**** Honda
Cell: ****
Office: ***

kingpcgeek

Cut and Paste form letter. I would respond back that "If you really want to sell me a car then you might take the time to read my email and respond to my questions instead of sending a form letter. If you don't care to do that then I'll be moving on to a dealer that will take the time."

aeggroup

With all respect to your logic - you probably think I take any suitable number for my budget and lease the car. You are wrong. When I said this number - $377 - including tax - I calculated for myself how much it is rom MSRP, residual and rest of the crap. So, for you info, if you will put those numbers to lease calculator - it will give you number - $407 a month. So...go ahead and lease it for 407 - following your logic and tell the dealer : Man...you giving me the wrong deal...it should be $30 more ))))

Good luck in your next lease....case is closed....

kingpcgeek

You are a really bitter person. You came here asking whether or not you got a good deal on your lease. Then when people tell you what they need to know to determine if you received a good deal or not, you essentially tell them that you are the expert on leasing and they don't know what they are talking about, case closed.

Which is it? Do you want to know if you got a good deal? Or are you the expert on negotiating a lease and you came here to brag on what a great deal you got for yourself?

In the future if you are not prepared to listen to advice, don't come looking for it.

packer3

If you were the salesman that's what would have happened to you. Went to Honda supposingly looking for a LX, $1,000 dwn $265 a month 3 yr 12,000 OTD, left with a LX-P thats the real model I wanted from the begining.

maximafan

I don't know. $515/ mo lease for 27 months on an E350 sounds
like a pretty good deal to me. I mean, we're talking about a car
that goes for well over $50,000.

wp_nightmare

Okay I need some help. I'm going to lease a 08 Accord Coupe EX-L tomorrow and I want to make sure I get the best offer possible. I’ve been reading some of the other post from Dennis and he said to negotiate down to the invoice price, but how? Do I just sit down with the man and said I want to bring the MSRP from 26,595 to so and so? Afterwards, what is the next step, because I want the best deal possible? Anyone who can give me a respond about how I can get a great lease I would be most obliged

dwynne

I would NEVER try to do a deal at the car dealer's showroom. ALWAYS work your deals via e-mail with the "Internet department" at various dealerships. Tell them you are ready to buy NOW and want their best price and tell them what you want (model and colors). Tell them you want their price including the car, destination, and dealer prep or doc fee. Also ask them if their are any dealer installed options on the car they quote you on and if they are included or extra in the price they quote.

Once you have a good price to work with, then you apply that price to a lease calc and see how the payments look. Don't forget to add in the $595 bank fee and taxes. If the taxes look like something you can live with, then tell you best price dealer you want to take that car from them and that price - and you want to do an AHFC lease on it. When they come back with the numbers you check them to be sure they did not add stuff to the lease they should not. Once the lease numbers look right, you go in and get the car. Inspected it COMPLETELY first thing before you do anything else. Then take a quick test drive in the car you are getting - listen for squeeks and rattles, pulling to one side, pedal pulsing under breaking, etc. Check the odo for excessive miles - are they trying to dump a high mile demo car on you? If all is well, just check all their numbers again what you calculated at home. Bring your laptop computer with you (if you have one) with your lease deal in a spreadsheet so you can make on the fly calcs. If you have a Palm device you can license LeaseIt! for $10 or so and leave the laptop at home.

I have my teenage son drive me to the Honda dealer Wednesday to pick up my new 08 S2000. We walk in, inspect the car, test drive it, I sign a couple of papers, hand them some money, and we drive out. I think he was shocked at how little time and how little grief we had - because the whole deal was done long before we ever walked in. They had the car detailed and filled up and sitting out front in their delivery area when we pulled up. My wife and I had the same experience a few months earlier when we picked up her Pilot. It is the only way to buy or lease anything these days.

Dennis

demianwulf

$334.00 a month/ 36 months/ 15,000 mi yr/ $15,367.10 residual./ $648.50 down.
Money Factor 0.00200/ Tax 6%/ Aquisition Fee 595.00.
I negotiated the price of the car to 23915 or so....(or so only because i ws emailing many dealers and im confused at the moment )

tax is 6 percent wyoming.

Does this sound good?

".00200 , the payment is 335 plus tax on that amount a month for 36 months with zero down just 1st payment.
Your residual after 36 months is $15,897.00 (that`s what you can but the car for after 36 months) and tha cap cost is the same $23,900 vs 2.9% for 60 months is $433.00.
"
Another quote for comparison but this guy says plus tax

DO any of these sound reasonable...I'm not afraid to ask for lower and haggle, but my first lease and I want to be sure. I've been running the numbers and it seems decent, but I am playing it safe.

kyfdx

Are those two different quotes?

If so, on the first one... does $334/mo. include the tax? And is $648.50 the total due at signing?

If so, that's a good deal...

regards,
kyfdx

demianwulf

Yes two different deals...The first...I believe includeds tax, but I will email the dealer to confirm.

enarchos

I've been shopping around for 2 weeks and have found that my lowest quote get me $900 under invoice for a 36 month, 12K mile lease with $0 total drive off. The Accord EX 4cyl Sedan is quoted to me at $298.35/month. Two dealerships, one in Hollywood and the other in North Hollywood are giving me the same numbers. The current money factor they're using is 0.0020 for my top tier credit. Does anyone think that $900 under invoice is a good deal or should I push a little further?

hondamattnj

If you put your request for the MF and residual in the comment section of the 'Request a Quote' page on Edmunds, you may want to resend it to the salesperson. Often times the dealer's CRM lobs off certain parts of the lead from Edmunds and the sales person does not receive your model info, etc.

gperr

Car_man/Dennis,

Can you please post the June MF and Res. for 2008 Accord Coupe EX-L V6, auto, both with and without Nav, 36 months, 12k miles.

Thanks

I also posted a request for G35 numbers in that forum. Trying to decide between Accord Coupe and G35 Sedan.

gperr