2013 and earlier-Honda Accord Lease Questions

2bugsmom

This will be our first lease. We are looking at a basic LX-P. We emailed a few dealers and here is the best we got so far...

Price Quote on a 2008 Honda Accord LX-P
MSRP for this vehicle is $22,830.00
Invoice is $20,904.53
McDavid Internet "no hassle" price quote of $19,805.53*
(Price includes Destination, Good through 7/28/2008...)

This seems fairly resonable? So Now what?
What other questions do I need to ask? Now that we have a negotiated price can I figure out lease payments? 36 months 15k miles?

Thank you

kingpcgeek

I would say a Honda $1000 under invoice is pretty good.

You have the price now you need the other info. Get the numbers from them, and then go through the past few pages here to get the Honda Finance numbers for a LX-P. Go to a lease calculator to figure out the numbers yourself. I really like This One. The numbers you figure and the numbers they provide should be real close. The residual should always match, but the dealer could mark up the money factor. Many people will tell you that Honda dealers never mark up a money factor, but I caught a Lexus dealer doing it yesterday so it can happen with a Honda dealer.

Here is a template that I am using for getting quotes.

I am looking for a xxxxxx with xxx options.

If you could please provide all of the following information it would be greatly appreciated. Please do not respond with a "give me a call so wecan discuss this" email, nor an email with a monthly payment only.

MSRP
Selling price
Dealer doc fees
Dealer Add ons
Residual for 36 months
Money factor for 36 months
Registration/Plates
Payment with only first months payment at drive off

bulldog12

Hello,

Can you give a few more specifics about your lease? I am interested in a similar car and am trying to get some info. How much money did you have to pay up front (Tax, tag, license, fees, etc) for this car? Thanks so much.

smaya1122

I am looking to lease an 08 Accord Sedan 4cyl EXL Manual Trans w/Navi with added foglights and rear spoiler.
I have an 05 Accord 4cyl EXL Manual Trans Coupe added foglights,mudguards, and decklid spoiler. Good condition. I am financing the 05 Accord and currently still owe 15,000 on it. The dealer in NJ wants to give me 10,000, which leaves 5,000 in negative equity.
Selling price for 08 Accord 25,363 (invoice)
Negative equity from 05 Accord - 5000
Total 30,363
Lease Payments 570.00 for 36 months
Is this a good deal? Is it wise for me to lease?

jhinsc

I am looking to lease an 08 Accord Sedan 4cyl EXL Manual Trans w/Navi with added foglights and rear spoiler...... Lease Payments 570.00 for 36 months

That's a lot of money every mo for a 4 cyl EXL. I wouldn't do the deal. Have your tried selling your current Accord on your own? The trade in value seems a bit low - how many miles do you have on it?

smaya1122

Hi jhinsc,
I thought the trade in value was quite low also. The car is in good condition. Princeton (NJ) Honda told me that I was over mileage which is 54,400. No, I have not tried to sell it on my own. That is probably a better idea than trading it. I just didn't want to deal with the hassle of selling it on my own.

bvdj84

Okay well, just to let you know, when I traded in an 06 Accord SE, still worth around 17-18k, market value KBB, I only got $13k for it, But I will say that when the new 08 models arrived, the previous generation models have went down in value a bit.

The dealer now has it price at $17,900! When I leased this car for $20k! Crazy. The only issue now, is that your past that point where you are equal with your trade in, versus your trade value, then you could go in clean. But, You could sell the car, you might be able to end up getting your pay off. That would be the best way, or literally your just tossing them your keys to your old car, with no benefits. That really bites too. Especially when you have taken such good care of a car, and its just tossed aside, but it is only a car, and depends on your current market area.

My trade in was sitting at the dealership for about a week, then it was gone, but then to my suprise it was found at another dealership, so I am guessing they bought it from my dealership. It was in mint condition!

With that all said, this does not mean you may not try other dealers to investigate further what they will give you, beware that some dealerships are quite picky on what they want on their lots, and may only give you so much anyway. Going to just 1 dealer does not mean it goes for all of them.Trust me, it does not.Selling a car privately is more difficult, and meaning you would have to do more work, but might be more worth it. Of course, get online, go on KBB, investigate all options, talk to anyone you know in the business to get true information. Stretch your limits a bit, you might have to go a little further away, but perhaps getting a dealership farther away could go to your advantage, saying if you could get me a good deal on my trade in, then I will drive to your location. They will want to see it in person, but definitely start all deals via email, it is the best way, weed out the bad, and work on the good ones. Emails can be found on dealerships websites. Honda.com
Good luck!

kyfdx

If you owe $15K on your car, and it is only worth $10K, then you should keep driving it, and keep making the payments...

Some day, it will be worth what you owe on it... You can't trade your way out of that debt.

regards,
kyfdx
Host-Prices Paid Forums

smaya1122

Thank you so much bvdj84! I appreciate your input. I really don't want to go through the hassle of selling it on my own. I will take your advice and ask around to see if anyone is interesting. It is really in very good condition. I have never had a problem with it at all. Someone told me that leasing a new car would be the best choice for me, because then I would be able to drive a new car and still be free in 3 years. I don't know. I would just keep it, but I really need a 4door. I have a coupe now.

I also looked at the new Maxima. Wow, that car is beautiful! Maybe Nissan will give me more money for my trade.

smaya1122

Thanks kyfdx!
I thought about that, but I really need a 4dr. My car is a coupe. I need more space. I am going to check in to other dealerships.

bvdj84

Yes, you can go to another brand name, but I have found that if you do, they are less likely to give you a trade in that a Honda dealer would give you on your honda. You trade in with a Nissan at a Nissan dealer, than they are likely to perhaps with you more, Same with your honda at a Honda dealer. Not always, but has been the case here at my dealership.

Take your time, look around, but do not sell your self short, and do not lease a new car with a lot of emotion into it, because when its all set and done, you'll realize the choice you made, you'll have to live with for atleast 3yrs. Another thing, leasing is fun, but beware, it truly sets a pattern, I am on my 2nd lease, and believe it or not, I am already thinking of what I want already on my next lease and that is not for another few years...lol. But thats me.

Well you better get busy emailing dealers...

Remember, leave out your trade until the end of the discussion of any deal, otherwise it spoils the realistic numbers, get a deal you like first, then state you want to add a trade in, that way you pretty much have them, but the trade in, makes or breaks it. But, a dealer can only do so much, they won't lose money on it.

kingpcgeek

Another thing, leasing is fun, but beware, it truly sets a pattern, I am on my 2nd lease, and believe it or not, I am already thinking of what I want already on my next lease and that is not for another few years...lol.

Isn't that the truth. I am just finishing up my fifth lease. It is the first one I have kept to completion. I am ready for a new car, been looking for months.

smaya1122

Thank you again so much bvdj84! I didn't know that I should leave out my trade until the end of the discussion. I will make sure I do that. Yes I am going to take my time. I will let you all know the final result.

jhinsc

Lease Payments 570.00 for 36 months
Is this a good deal? Is it wise for me to lease?

I have an idea. How much are your current payments? I bet they're not $570/mo. Why don't you pay this amount toward your current Accord and get it paid down sooner? You're upside down in your current car and if you trade, you'll be upside down in the next. It gets worse each time you trade and you have negative equity. Curious - how long have you had your current Accord? Will you be tempted to trade in the new one before the lease term is up? Don't be fooled if a dealer says he can lower your payments by going with a longer term - they you'll really be trapped!

maltbie

I was offered the following deal on a 36 month, 12,000 miles/yr lease in NY.

MSRP: $28,730
Cap cost: $25,960
Residual: 58%
Money Factor: .00186
Monthly payment: $337.53

due on delivery: first month payment, $595 bank fee, sales tax and registration fees.

For $22 more per month, I can lease an 08 TL base non-navi. The Honda dealer is at invoice while the Acura dealer is at almost $2800 under invoice. I like the TL better than the Accord but would chose the Accord if I could save $50 per month. Has anyone had any luck getting the Accord $1,000 under invoice?

kingpcgeek

My quote today in PHX:
2008 Accord EXL-V6 Sedan – MSRP $28,730.00
Lease price $26,571.00 - includes door guards, splash guards
Residual value 58% or $15,486
Money factor .00129 on approved credit
36 month, 12k per year $410.00 per month including tax.
$1,315 due at lease signing

maltbie

Wow, that is a really low money factor. Is that from a private bank or Honda Financial Services?

kingpcgeek

HFC. I hope the salesman didn't screw up, but I think he did. They payment doesn't match up with the MF he quoted.

smaya1122

Thank you jhinsc!
I could just pay 570.00 on my finance. My current payment is 490, but I send them 510 a month. It's an 05 Accord, I financed it in February, 2005, so I have had it 3 years 5 months. I still owe 15,000 on it and I have 3 years left on it. I was told that I got seriously ripped off on my deal. I really didn't do a lot of research at that time. I have learned my lesson!! The salesperson told me that I could trade it in to drive a new Accord for 36 months and then be clear of it. I am only looking to get rid of it because I need something bigger. My current car is a coupe. I guess it's better that I wait.
Thank you all so much.

bvdj84

Of course the dealer makes it look so easy, and such a no brainer, But, if you think about it, if you pay even more on your current car, your still not going to save any money, rather than investing in a car that you are going to trade any way, though it will look better on your new lease, but rolling that into a lease is crazy anyway, it will help, doing that method, but not saving any money. Just putting the money in a different place.

I am already contemplating when the right time in my current lease to trade it in, and I will be looking at a Acura/Honda. There is a time frame where, you can trade in, with minimal complications, I know, because I have done this before. Once, you pass this time/miles, its get more difficult. Walking away clean is rare, but if you can play it right, it can be done.

jaydoc

Hi:
I just want to share my deal with you,
V4 EX-L
15K/36mo
0 down just start up(1st monthly payment+doc fee+plate+title=581)
Monthly: 340.99 tx included.

Thanks!

mplshondadlr

Starting 07/29 Accord V6 money factor went to .00129. This money factor will be in effect until 09/02/2008.

Right now Honda is advertising an Accord EX V6 sedan at $259.00 36/12k with $2799 + plus tax and license and a cap cost reduction of $1945.00 which is $500.00 over invoice.

FEATURED SPECIAL LEASE: Closed-end lease for 2008 Accord Sedan EX V-6 Automatic Transmission (Model CP3678JW) for $259.00 per month for 36 months with a $1,945.00 capitalized cost reduction available to customers who qualify for the AHFC Super Preferred credit tier. Other rates/tiers are available under this offer. $2,799.00 total due at lease signing (includes first month's payment, AHFC upfront acquisition fee and capitalized cost reduction; with no security deposit. Total net capitalized cost and base monthly payment does not include tax, license, title, registration, documentation fees, options, insurance and the like). Not all buyers may qualify.

kingpcgeek

Starting 07/29 Accord V6 money factor went to .00129. This money factor will be in effect until 09/02/2008.

Thanks a bunch for that info. I had one dealer quote me that MF, and every other dealer quote the .00184 MF, so I thought it was a typo. Does the new MF apply to Coupes as well?

I guess this clinched my Accord or G35 decision.

mplshondadlr

"Does the new MF apply to Coupes as well?"

Great question. It does not apply on the coupes -- V6 sedan only.

Good luck

syr

Congrats jaydoc
What was the MSRP on your car?

jaydoc

MSRP:26530
Sale price:23800.
Invoice:23450+670=24120.
I was able to get $200 check just because I turned in my 2005 Accord to this dealership as well.

maltbie

If you look carefully at the add on Honda's website you will see that this lease special applies to the EX-V6 with an MSRP of $26,630 rather than the EX-L V6 with an MSRP of $28,730. I wonder if the money factor for the EX-L V6 has changed.

Subject to limited availability. 07/29/2008 through 9/2/2008, to approved lessees by American Honda Finance Corp. Closed end lease for 2008 Accord Sedan EX V-6 Automatic Transmission vehicles (Model CP3678JW), for well qualified lessees. Not all lessees will qualify. Higher lease rates apply for lessees with lower credit ratings. MSRP $26,630.00 (includes destination) less the capitalized cost reduction resulting in actual net capitalized cost $23,227.26. Dealer contribution may vary and could affect actual lease payment. Taxes, license, title fees, options and insurance extra. Total monthly payments $9,324.00. Option to purchase at lease end $15,711.70. Lessee responsible for maintenance, excessive wear/tear and 15 cents/mi. over 12,000 miles/year for vehicles with MSRP less than $30,000, but for vehicles with MSRP of $30,000 or more, mileage cost is 20 cents/mi. over 12,000 miles/year. See dealer for complete details.

kingpcgeek

Dealer confirmed it today that the MF dropped to .00129 on EX-L V6 Sedan. My question for mplshondadlr. Did the MF for the Coupe Ex-L V6 drop as well? I sure want a coupe instead of a sedan.

mplshondadlr

See #2619

mplshondadlr

The lease payment quote is for the EX V6 sedan, however all Accord V6 sedans qualify for that money factor.

maltbie

Thanks for the clarification. Is the residual still 58% for 36 months/12,000 miles?

kingpcgeek

There goes my Coupe. Lets see a G35 for $482 a month or a Accord Coupe for $461 a month. What one do I choose, its really a tough one?

mplshondadlr

Ouch, thats a tough one. I like the G35 but dosen't it take premium fuel? In addition my insurance co rates the Accord coupe as a non-sports car but the G35 is considered a spotrs car.

BUT, a pearl white over tan leather G35 is BEAUTIFUL

kingpcgeek

Yep the G35 uses premium (If you can't afford premium, you can't afford a G ). My estimates are that I would pay about $40-$50 a month more for gas in the G

I've had my insurance agent quote the two cars
Accord V6 Sedan (At the time of the quote I was leaning towards the sedan): $535 for 6 months
G35: $556 for six months.
Not a big enough difference to matter.

How did you know I was looking at a pearl white G35? The one I want has the $400 18" wheel & tire upgrade as well.

mplshondadlr

I agree. If price, payments, insurance and gas don't matter that much. I would take the G35.

Let's be honest, the pearl is really the only color the G35 looks good in!

mdominik

Regarding the current AHFC basic LX offer @219/mo (see their web site), I did a calculation and figure the MF to be .00129 there too (using the Edmunds lease calculator and playing with the MF until the payment matched) just like many people are posting here for other trims (eg, EX-L).

Does anyone know, will a dealer use that MF for an LX-P? (that is, a slightly different trim than the MSRP identified in the current offer) Would they be restricted in any way? I want to know before I go in and negotiate.

mplshondadlr

4cyl sedans are .00186. I think your missing something on the lease calc - perhaps the $595.00 acq fee?

kingpcgeek

mplshondadlr, In your opinion is the lack of movement on the MF for V6 Coupes because they are selling well, short supply, or just because?

mplshondadlr

I think because they're selling very well on thier own AND supply is low (in pockets of the coutry - sun belt states).

mdominik

Goodness knows what lease calculators some dealers use - below is an offer I received today, I'm trying to analyze this offer, but none of my lease calculators match these outcomes. If someone else can analyze this and come up with the same figures, I'd be very grateful to know how it was derived. I live in New Jersey, with 7% sales tax. Thanks!

1. MSRP = $22,795
2. Selling price = $20,920
3. AHFC acquisition fee = $595.00
4. Capital cost reduction = $2,500.00
5. Dealer doc fees = $224.00
6. Dealer add ons = $0
7. Residual $ value after 36 months = $13,698.00 (12K PER YEAR)
8. Money factor for 36 months = .00186
9. Registration cost (3 years in NJ) = $184.00
10. Sales tax = $942.00 (buyer note: this is 7% of 13,457!?)
11. Monthly lease payment (36 months) = $255.00

kingpcgeek

I strongly suggest you do not put $2,500 cap cost reduction down. Unless for some reason the finance company is requiring you to put cap reduction down you should not put any down.

kyfdx

New Jersey taxes the total of the lease payments, but you pay it all upfront... Add up the payments, plus any upfront money ($2500?), then multiply by 7%... that will be your tax.. (hopefully)

mdominik

Host, thank you, but the hopefulness is futile - their numbers don't add up. In addition, I had no intention of putting down that much cap reduction, it's just what they assumed for their purposes, I don't know why. I simply needed their first proposal to come back with a counter proposal that includes my own figures for cap cost and minimal cap reduction, but when I receive a proposal that doesn't add up, I wonder if I want to continue with this dealer. Ah, the joys of auto buying and negotiating!

wchang

Hi Mdominik, Can you post what dealer this is? I have a similar quote from Paragon in Queens, NY whose numbers don't add up either no matter how i try.

I have a quote from another NJ dealer I'm getting ready to sign with for
Honda Accord 08 LX

MSRP 21830
Neg. Price: 19550 (incl. Destination charge)
Down: $0
Money Factor (.00186)
36 Months
12,000 miles / year = 60% residual
resulting in about $254/month with taxes incl.

Inception fees are: $199 Doc fee (sigh, will try to argue this)
$187.5 Registration, $7.5 tire tax, and $595 acquisition fee.

Asking around that seems to be the best deal I could find. I was thinking about heading in today to purchase, would I be making a mistake?

I was told the Honda rates might change in Aug. Does anyone have the Aug Numbers yet?

I have a similar quote to the above from another NJ dealer much much closer, with a neg. price of 19450 (100 lower), but they want me to pay taxes up front (652.48) and add in acquisition fee (595) into the monthly payment. This seems odd to me. Especially since I can't seem to get that tax figure to come up in my calculators.. any suggestions?

thanks in advance

mdominik

wchang - it's in southern NJ, Turnersville Honda, probably too far from you. The tax calculations are vexing. I too am being told the MF is only good through Monday Aug 5, but they seem to purposely keep the sales people in the dark about future direction. Your negotiated price of 19,550 is attractive. Here's what I plan on trying to keep the confusing sales tax out of the picture for now: tell them to work numbers that are only for the car, and I'll pay sales tax, acq fee (can't get out of that one, it's Honda Finance profit), doc fees, registration (3 years up front in NJ), etc. That keeps it clean. Then compare the results against the Edmunds lease calculator to verify
http://www.edmunds.com/apps/calc/CalculatorController?pmtcalAction=lease_calc
Good luck, I may be in purchasing mode this weekend too.

mdominik

wchang - I ran your numbers from the LX offer from NJ dealer and they don't add up for me - I get something like $241/mo using the Edmunds lease calculator.

wchang

Hi MDominik,
The edmunds lease calc confuses me a bit, my understanding is that taxes are taxed based on your monthly payment, and not the value of the car. If I pay taxes up front, wouldn't that really just be (mnthly payment * 36) * 7% NJ Sales Tax?

Good luck to you as well. Lets hope the aug. #'s don't shift too drastically .

mdominik

re: NJ sales tax. I don't really understand it either, I have a call in to the dealer to explain. If I learn more, I will post it. A few posts back the moderator for this discussion thread suggested that NJ sales tax would be (total of payments + any cap cost reduction) * tax rate. (7% in our case)

Using the Edmunds calculator works easiest if you get the following quote from the dealer: ask them to give you all the pertinent figures (sales price, MF, residual %, acq fee, docs, title&reg, sales tax) but to NOT include the acq fee, sales tax, docs, title&reg in the monthly payment. Tell them you'll pay all that upfront, even if you change your mind and decide to let it be included. Then you can use the calculator and zero the entries for sales tax, acq fee, title reg costs, and see if their figure matches what Edmunds calculator tells you. If not, tell them you need an explanation. If they line up, then you can consider adding back in the acq fee and the title reg costs, etc, and recalculating.

Good luck!

kingpcgeek

I too am being told the MF is only good through Monday Aug 5

On the Honda web site all the lease specials are running through 9/2

mdominik

re: Aug 5 date for new MF. The dealer salesperson backpedaled and cited misunderstanding on her part about the changeover date, and acknowledged the MF rates will be in place until Sept 2. I need the time to not rush into a final decision. The LX MF seems to be .00186 (4.46%) while the EX MF is .00129 (3%).

re: Sales tax calculations (state of NJ). Sales manager admitted mistake in his calculation provided to me yesterday. Cited that in NJ, sales tax is as the moderator suggested: it is calculated as (total of monthly payments + any capital cost reduction paid) * 0.07.