2013 and earlier-Honda Accord Lease Questions

CarMan@Edmunds

Hi keithdenalixl. Unfortunately, Honda pulled the plug on its lease support for 2008 models. It did introduce a new special lease program on '09 Accords, but it is not as attractive as the '08 program was. Honda Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2008 Accord EX V6 Sedan with 15,000 miles per year are .00249 and 59%, respectively for consumers who qualify for its "Super Preferred" credit tier and pay a security deposit at lease signing.

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CarMan@Edmunds

Hi flbuyer. Here's the information that you're looking for. You never mentioned what term or mileage allowance you need, so for now I will assume that you are interested in a 36 month lease with 15,000 miles per year. Let me know if you want something different. Honda Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2008 Honda Accord EX-L 4-cylinder with navigation and 15,000 miles per year are .00249 and 61%, respectively.

Honda is no longer providing lease support on 2008 Accords, so you will probably be able to get a better lease payment on a 2009 model at this point.

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bvdj84

Why would they want to pull the plug on the 08's. Now the 09's are going to move and the 08's will sit longer. I have never understood their logic.

bhla

Hello,

Do you have Honda Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2009 Honda Accord EX-L 6-cylinder (no nav) and 15,000 miles per year?

The payments I'm getting have gone up about $50 per month based on the recent rate change - also, do you know when they change again?

Thanks, BH

jhinsc

I got my 08 EXL V6 in mid-August and they had to go out of state to get it. Within the week and a half I spent going back and forth negotiating, they sold every one they had in stock. My sales person said those waiting until the end of year or January thinking they'll get an 08 V6 will be dissappointed. They had plenty of 4 cyl's, partly because the lease/finance rates on them were not as aggressive.

rf_forever

2009 honda accord lx base model with auto trans...12k a year, $2000 drive off including tax, reg,bank fees etc..damage protection up to $5000...$0 cancellation...and of course $251 per month for 36 months.I really think he hooked me up...Is there any room to negotiate???? Will go there on Wednesday to sign..

kingpcgeek

Being you didn't tell us the selling price of the car how do you know you got "hooked up"? Knowing the price of the car and its relation to invoice is the only way to determine the deal you are receiving.

Never heard of "damage protection" sounds like another overpriced dealer option. Personally I have always bought car insurance for damage protection.

markm124

Hello Car_man.
I need to tap your expertise. Could you please give me the MFs and residuals for both the 2008 and 2009 Accord EX-L V6 Sedan w/o Nav? I will probably go with 36 months and 12K/year. I am in MI, if that matters. Thanks.

vtyler

Hi, I am interested in leasing an 09 or preferbly an 08 Honda Accord Coupe Ex L V6 and was wondering what would be a good lease to agree or negotiate. I was thinking no more than 36 months and will it be possible to have payments in the high $200s. I will hopefully have about $9200 cash to work with after selling my 05 Civic. Your advise will be appreciated.

Thanks,
Vic

kingpcgeek

Do not put down $9,200 cash into a lease (cap cost reduction). The most at pickup you want to pay is first months payment, taxes, license/tags, bank fee, and doc fee. If you are going to put down $9,200 then buy the car, don't lease.

Any leasing expert will tell you do not do a cap cost reduction. You risk losing some or all of your cap reduction as soon as your drive off the lot if your car is totaled or stolen. Insurance companies only pay for the market value of a lost or stolen car, and the depreciation starts as soon as the tires hit the road with you behind the wheel.

If you are worried about higher payments take the money that you would have put down to cut the payment in a higher interest savings account. If and when you need to make a lower car payment take some of the money out of savings to help with the payment.

mrebean

i believe it is currently .00249 w/ a 61% residual for the 2009.

the 2008 is much worse currently. .00380 w/ a 52% residual.

EDIT: sorry. i didnt see you wanted sedan. those number are good for the coupe. i'll leave them up anyways in case someone else finds them handy

mrebean

agreed w/ above poster. NEVER put that much down on a lease.

have a good read over
www.carbuyingtips.com or
www.leaseguide.com or
http://www.edmunds.com/advice/leasing/articles/102826/article.html

you will learn some valuable information there.

you you have your heart set on leasing, it would be better of to put that money in a high interest savings account and just make the lease payment out of that, or draw from it if you need funds. try to aim for just 1st months payment and pack the rest of the fees into the lease.

brad627

I was having my 2004 accord sedan (4 cyl, EX-L with ipod connection 70k) maintaned yesterday and while I was waiting one of the salesman asked me if I wanted an 08 accord. anyways, I drove an 08 accord coupe EX-L V6 no nav and just for the heck of it i had him run some numbers. Now, I am only 20 years old and in college and i tried not giving him to much info about what I could afford. I am looking to possibly buy something around christmas time but I need some help finding a good price.

The price he gave me for a lease was 339/mo for 48 months with my car as a down payment but they would give me 4500 back from my car. I think he said they were giving me $10000 trade for my accord, which is in perfect shape and I keep it well maintaned.

I think this rate is a bit high. What are the going lease rates for an 08 accord coupe exl v6 with and without nav (im looking at both)

Any help would be appreciated! Thanks!

kingpcgeek

You never roll $5,500 or anywhere near that in cash/trade into a lease. If you have that much equity you need to buy, not lease. The most that you want to put down on a lease is first payment, taxes, plates, bank fee, and doc fee. Also never lease longer then the warranty, in the case of an Accord, 36 months.

BTW it looks like you are getting a poor deal. But we don't know that for sure since you have no idea what the dealer is selling you the car for, nor are you sure what the trade-in is worth. You are working this deal totally backwards. First you negotiate a selling price for a car, then you find out about the lease terms, then you throw in the trade. But in your case if you have $10,000 in equity you should sell the car yourself or buy the new Accord.

Finally if you are not intending to pull the trigger until Christmas you are shopping way too soon. The deals and lease rates change monthly, and chances are there will few to none 08's Coupes in December.

CarMan@Edmunds

Hi bvdj84. It's not exactly that Honda wants to stop leasing 2008 models, but once the 2009 models begin to arrive the residual values for the leftover '08s drop so much that providing a reasonable lease payment on them becomes prohibitively expensive. This is why most manufacturers provide straight cash incentives rather than special leases on leftover models at the end of the model year.

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CarMan@Edmunds

Hello bhla. Here's the information that you're looking for. Honda Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2009 Accord EX-L V6 without navigation with 15,000 miles per year are .00249 and 58%, respectively for consumers who qualify for its "Super Preferred" credit tier and pay a security deposit at lease signing. I believe that this program is currently scheduled to run through September 30th.

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CarMan@Edmunds

I would be happy to help you out, markm124. Honda Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2008 Honda Accord EX-L V6 without navigation with 12,000 miles per year are .00270 and 56%, 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 '09 model are .00249 and a solid 60%.

Since Honda is not providing any lease support on the '08 model, the above lease program for it is compatible with its $500 dealer cash. Honda is not currently providing any cash incentives on the '09 model.

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comohombre

Car_man

I read your message on Sep 16 for the 09 Coupe Residual and MF rates. I was wondering what would be a good price for the 09 Honda Accord EX-L Coupe? Thanks for expertise.

bvdj84

I am wanting to trade for an 08-09 Accord soon, perhaps soon as I can or next spring, I signed my current lease I am in last Spring. When is the best time to get out of the lease, with minimal damage.. and move to the Accord....lol.. I am thinking next spring. I hear people do this all the time, and do okay, but you have to go in strong, and know what you want...

I am familiar with the leasing lingo, trade in value, pay off, equity, all that good stuff, I just want advice from people that have had experience with this at the dealer. I heard a year is a good time to trade.

Dealers don't always tell me the right thing, but if I do go to someone I know that is reputable than I could realistically know what to do, and when to do it. Some dealers say if I wait longer, than I will have more problems, than others say that I should wait 2yrs in..... There is no way, I am doing that... I will do this soon, but when...lol Thanks for any advice.

mcbanta

I am looking to lease a 2009 accord EX-L in the Philadelphia area. I got quotes from several dealers back in June. I could have put down $500 and walked out with an EX-L for $329/mo 3yr/36k. Has anyone leased an accord similar to what I am looking for this area recently? How much did you put down? What is your payment? Thanks for any help.

bvdj84

I think most are saying $370 with first payment due at signing. So your dealing looks quite reasonable!

For every $1k you put down, takes about $20-30 or so off your payment.

As long as you got a great sale price, then I would go for it, try to see what it would be without your $500. Looks like they could get you $340 without your $500, its so small of a down, that I would actually scratch it, and keep it. Your talking minimal changes.

kingpcgeek

Getting out of a lease is the same as getting out of a car loan. Would you think that you could get out of a car loan with minimal damage after 6 - 12 months? Of course the answer is not a chance. With a lease it can even be worse since you put a lot less down then what you would when buying.

To get out of a lease you need to call the finance company and ask for the dealer payoff since in most cases that does not include the remaining sales tax. Then you check Edmund's or KBB for the trade-in value of your car. The difference between the two numbers (negative equity) is what you are going to have to pay cash for or possibly roll into you new lease depending on how much the negative equity is. Of course your calculation is only an estimate. What the dealer considers the trade in value of the car is, is what really matters.

In most cases now days you will have negative equity on a lease throughout the length of the lease. That is why companies like Chrysler are getting out of the leasing business. They are getting lease returns that are selling for less at auction then what they predicted the residual would be. Even a great residual company like Honda has taken a huge hit on lease returns this year.

If you were really familiar with leasing lingo you would have said money factor and residual.

bvdj84

This is exactly what I already know...lol. I am aware of money factor and residual. The topic is all over Edmunds, but simply want real experiences/advice. Chrysler has good reason to get out of leasing, as their company overall is sinking, but that is another forum. Thanks though for helping.

kingpcgeek

From your writing style I am guessing that you are pretty young. As someone that has been leasing cars for over 20 years let me give you some advice. Don't jump from lease to lease rolling negative equity into the next. At some point you are going to be driving a Fit for $600 a month if you continue to do so. You have had a car for 6 months, hold on to it for a couple of years before you get into your next lease.

bvdj84

I will not hold this kind of conversation here. I thanked you for your advice, I am moving on.

We must stay on topic

jhinsc

I am familiar with the leasing lingo, trade in value, pay off, equity, all that good stuff, I just want advice from people that have had experience with this at the dealer. I heard a year is a good time to trade.

To answer your question, it really depends on the lease agreement you negotiated on your current car. In most cases, 1 year is too soon to trade out of a lease without having to come up with a lot of cash. I recently traded out of my previous 06 Accord EXL V6 to an 08 EXL V6. The timing was right as I was into the LPP plan 30 out of 36 months. Unless you really have to, and you have quite a bit of cash you're willing pay out of pocket, it would financially be in your best interest to hold onto your car for at least another year to 18 months.

bvdj84

See, that makes more sense to me, then my pay off would be lower too. They do say that our cars depreciate the most within its first year. Once the value settles a bit after the year, I am thinking it will be better. It is confusing when people tell me now and then some tell me later. I'll wait, usually good things happen to those who wait. I'll know when it feels right. Thanks.

I might try around Christmas though, just to see exactly where I stand.
pay off versus a trade.

jhinsc

In your situation, waiting never hurts and you can stay flexible about it. You have time on your side so you can use that to your advantage. When I traded my 06 for the 08, my primary motivation was the 06 needed new tires as I was just over 40k miles. I didn't feel like paying $800 - $1,000 for a new set, only to turn the car in 5 months. I was talking to my Honda dealer sales manager for several months prior, and he told to wait a another month or two before seriously looking at trading because the LPP rates were expected to come down. Sure enough they did in Aug, and I pulled the trigger then. It may have helped that I kept telling him if I get to the point where I order tires, then I'm keeping the car until the very last day. It was my way of saying if you want a sale now, it will be on my terms. However, I didn't expect them to make the sale to me unless it also made financial sense for the dealer - they have to make money too. So stay flexible, be sure it makes financial sense, and in the end you'll be happy about both the deal and the car! :shades:

mcbanta

Well, the quote I got back in June differs quite a bit from the one I just got on Friday. Take a look and please give me your thoughts and negotiation points. Thanks. This is the email word for word from the delaership.

MSRP $29,225.00
Splash Guards $150.00
Alloy Wheel Locks $99.00
Sale Price $27,129.00 plus tax, tags, and our $95.00 dealer doc fee.

36 Month/12K Per Year PA Lease = $439.91 per month with the first payment down on the 2009 White Diamond EX-L V6.
Selling Price $27,129.00
Doc Fee $95.00
Acquisition Fee $595.00
PA Tags/Insp Fees $180.00
Gross Cap Cost $27,999.00
First Payment $439.91
Net Cap Cost $27,999.00
Residual .60%
Residual Amount $17,553.00
Money Factor .00249
Security Deposit (Waived)

indianajohns

What I don't get about people who lease Hondas is WHY DON'T YOU JUST BUY THE DANG CAR? If your 36 month lease is going to run you $439 per month on a $27,000 car and a $27,000 loan for 72 months is only about $460 per month. YOU COULD OWN THE CAR FOR ONLY $30 MORE PER MONTH. You could lease a $40,000 car for $439. Buy the Civic.

Honda has never had any kind of lease support on any vehicle they sell. I just don't get it. Even if the excuse is having to pay sales tax upfront, it still doesn't make any sense. The car is going to be worth at a bare minimum 50% after 3 years. Buy it, trade it in after 3 years. You would owe around $14,500 on the loan. The residual says it will allegedly be worth $17,500. So either way you are at least breaking even after paying/financing sales tax.

I like reading the posts in these forums and generally I try to hold my tongue when I see people being blindly taken advantage of but in the case of these Honda leases I just can't stomach it anymore. It's like some of you drank the Honda lease Kool-Aid. The whole point of leasing is to lower your monthly payment and your 2-3 year cost of ownership.

CarMan@Edmunds

Hi comohombre. I am not personally all that familiar with what the market is like for the Accord Coupe right now, but I suspect that it is fairly similar to the market for the Accord Sedan. If I was interested in leasing one right now, I personally would shoot for a selling price of a couple hundred dollars over dealer invoice. Make sure to stop by the "Honda Accord Prices Paid and Buying Experience" discussion to see how much other community members have paid for similar cars recently.

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zman16

That seems high. I just received this quote
Sellling Price $26048
MSRP $29225
Money factor .002490 for 36 mos
Residual 17535

The payment would be $358.27 including tax with a total of $1030 down, which covers the 1st payment, aquisition fee, plates, reg, doc.
If you want to go 42 mos the residual changes to $16658 and the money factor is .002550 with the payment being $345.29.

Cars are not selling so I would not go over invoice and would suspect that you can get below invoice pricing.

chuck68516

It's actually an Accord, not a Civic. But I get your point of view.

bvdj84

I completely understand what you are stating. The lease payment is not too far off from the loan payment. Leasing has an advantage though. Perhaps, one only wants to keep the car for 3 years and not have to worry about selling it at the end. It is much easier to turn the car in, walk away. Personally for me, I don't want to worry about a big loan on my name, rather having a lease showing less debt.

I can totally see both sides. Some are keen on leasing, some are not. It works for me, perhaps not for others.

djhalptert

I agree with you both. Leasing has some advantages/disadvantages. I personally will never lease a car unless I can get minimum or $100 less of a lease payment vs. bank loan. In the above situation, IF for only about $30 more he could OWN the car, he should buy it. I would never lease a $27,000 car for a monthly payment well over $400. Plus, as a general rule, never lease any vehicle that has a lease rate above 4%. The Hondas are always around 5-6%, sometimes even worse. Buy them, don't lease them.

bvdj84

In his situation, he might as well own it. But, again, what if he wants to be able to walk away in a few years, leasing is the way. If he owned it, then wanted out in 3yrs, then he would have to put it up for sale, wait for a buyer. Although, I do not see it being a problem selling an Accord. He would probably make money on the deal.

The only time the Accord had amazing lease deals, is right before the new 08's arrived. You could have gotten a loaded accord lease for a steal. We won't see that happen in a long time. Getting a good deal can be had, but going to the right dealer is key. I would never go to my local dealer, as they are a complete joke. I will drive down to a bigger city, 1 hour away, and do my business there.

I have found emailing through the sales department can really help work everything out before you get there. They know people do research, after all it is a lease. Sometimes, you have to point that out to the dealer. It is a lease. So payments should be a bit better than a loan.

mcbanta

I specifically asked for negotiation points pertaining to the numbers that were presented to me. If I wanted your dang opinion, I would have asked for it. I have no intention, nor do I agree with leasing any vehicle for the same monthly payment as it could be financed for. I think what you are stating is pretty obvious and anyone with half a brain could come to that conclusion. I asked for negotiation points and ideas because I want to lower the lease payment to see if it becomes adventageous for me to go with a lease. You don't know what any vehicle is going to be worth 3 years from now. Please offer constructive answers or opinions to my question. Otherwise, start a new thread pertaining to buying vs leasing.

bvdj84

Every situation, everyone's life is different. Perhaps they feel leasing is a good fit to keep a new car every 3 years. I know many people that get a new car every 2-3 years or based on their mileage. I lease my cars too, but some trade in and out of their loans too. You are always going to have a payment with leasing or trading all the time, but some do not mind. It does not mean it is a wrong choice for them, but perhaps bad for others. If you think about it, by the time your car is paid off, many have said they are ready for a new car anyway, lol, but I can see owning something that is paid off is attractive. I would love to put my car payment that comes every month for something else. I don't need a new car, but works best for me. I don't want some massive loan.

The lease is so nice because you don't know what is worth in 3 years. Knowing you have the option to walk away, that is attractive to me. But, getting an attractive lease, now that is an accomplishment sometimes.

You may have to work on your sale price more, or if you feel, go to another dealer. Start with dealer email quotes via Honda.com. I do this all the time. Sometimes you can get really good deals through the internet sales. They do know some people do heavy research.

djhalptert

I agree to a certain degree with your philosophy. However, the vehicle he is interested in leasing is a Honda Accord not a Kia or something else that will be worthless in 3 years. It simply doesn't make sense to lease an Accord for $440 a month if you can buy one for $470, probably less. Your point is that you don't know what it will be worth in 3 years if you buy it. The residual value will usually depict the projected market value. He can trade it in after 3 years if he wants. He doesn't have to sell it himself. You act like it's going to be a big chore to get rid of the car. Even if he barely breaks even on payoff of loan vs. trade-in value it will still be smarter to buy than lease. What if he loses his job and can't pay the lease payments? It's way easier to sell your traditionally financed vehcile than to try to get out of a lease. Unless you can save over $100 a month leasing vs buying, BUT IT BROTHER.

bvdj84

I agree with you %100 on that, I just see both sides.

With a Honda, you don't have to worry about the value so much as other cars.
It is tough decision, I am not sure what I would do if I had to make a choice. I still even through all this, probably lease the car. That is just me though. To each their own.

bvdj84

I want to ask if anyone here has transferred a lease before?

I want to a transfer a GMAC car to a new owner, and it can be done for $595. That is the processing fee. I would have the new applicant fill out a credit app, and they could take over the lease from there. I am glad GMAC let me do this, I am going to try, some company's do not allow this. Reason for doing this, is that I want out of current lease and back to a Honda product. I am only a 5-6 mths into the lease, so trading out is too expensive now . I am not sure I want to wait. I went by the Honda dealership yesterday, and it makes me want out even more!! The new owner would be getting an 08 with 8,200 miles on it, like new, I keep it clean. The new owner could take over with only the first payment which is very reasonable, $319mth. The car has leather, roof, 4cyl. For the money you get alot! but, Honda is what I want. This would be the only option, being the least expensive, but getting someone to take over could be tricky. I could offer an incentive. This is cheaper than doing lease trader I think.

Let me know what you guys think. Thanks so much I know I am crazy, but it was not my choice to pick a GMAC product..(longstory):) lol oh well.

My thoughts are, get an 09 Accord EX-L 4cyl navi.

chuck68516

What 2008 GM vehicle are you trying to get rid of?

I have heard of people doing this but you are going to have to make it financially attractive to the person who will assume the lease payments.

djhalptert

It sounds to me like even if you get rid of your current GMAC lease you better just buy your next vehicle. Leasing isn't for everyone and certainly wasn't intended for people who get sick of their lease after 6 months. Even if you do end up getting lucky and transferring your current lease, for your own financial sake, BUY THE NEXT ONE.

An Accord EX-L w/ NAV ($29K) is about $450 a month on a 36 month lease and about $490 to buy at 3.9% for 60. Would be the same payment to lease or buy at 72 months 6.5%, $450.

BUY IT.

bvdj84

Well it is a long story, but I had to pick a G6, and it was not something I ever dreamed of getting. Honestly. I had been looking for a car last April, but never thought that I would be the G6. So I went into it not wanting it to begin with. I won't bore you with my story, but atleast tell you that. The G6 is nice, I honestly grew to like it, leather, roof, 4cyl. I call it a "cute" car. lol. I currently pay $319 total a month, and that is pretty good for the car. I could offer an incentive for them to take over.

Believe it or not, but I had another person that just bought a Honda Fit, and said she thought of taking over my G6 and she said "you can have my fit". lol. She said it was sorta ugly. I told her, the new fit is a great car! I am impressed! well, its a Honda.

Reason this was so hard for me, is the fact that I came from an 06 Accord to Pontiac G6. I literally was sad for awhile, I loved that Accord, but I made the choice for bigger reason. (longstory) I truly want my Honda back!

It is still early enough for someone to get a newer used lease.

jhinsc

Having someone else file out an application and then take over the lease payments is easier said than done. The new person would have to qualify according to GMAC's credit guidelines, which I understand have been tightened up lately. They're looking for 700+ credit scores, plus documented income, etc. If I was considering it, I would certainly look at new rather than a slightly used one before I made a final decision. The G6 is probably a good car, but again it's not a Honda. Too bad it doesn't have the 4 cyl/6-speed auto combo - then it would be worth keeping!

bvdj84

Yes it is a nice car, but I do not like the 4cyl with the 4spd transmission. That is where it definitely shows that it is not a Honda.

I am thinking I might just keep the car for atleast around a year, and then trade, some how that usually seems like it is a good time to trade. Then the initial depreciation has settled down, and my pay off is a bit lower.

Thank you all for your help on this. Atleast I can transfer when I want to, but getting the person to do it, is tricky.

borabora9

I signed a lease order which listed the make, model, vin #, residual value, $500 down payment, # of months etc. However, I would like to cancel this order. I am pre approved by the manufacturer as I am a returing customer and I was told by the dealer that they do not have to run a credit check. Have not signed any other papers such as finance contracts. Is signing a lease order a binding contract? I think the dealer might give me a hard time to refund my down payment. Other than the down payment, do I have to worry about any legal problems when canceling a lease order? Thank You!

borabora9

I signed the lease order couple of days ago and am supposed to take delivery of the car couple of days.

bvdj84

Okay Do not drive the car off the lot, but the contract is binding, but since you don't want to take delivery, they might void it, but good luck with that. It would not be legal problems, as it would be the lease amount you would need to get out of it.

I know, because I want out of a lease I have had for 5-6mths. In fact I want a Honda Accord.

Why are you wanting to cancel?

usair

Leasing thru Honda Finance is awesome, my lease on a 2005 ody was over and I was over the miles.

First Honda gives you a $1500.00 allowance for wear and tear, I was within that. Then I was supposed to pay $1100 in excess miles. Since I got another Honda, I called them after they billed me and waived the excess mileage for the previous car. My car was worth less then what I owed, luckily it was a lease, I just walked off. returnning the car.