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2013 and earlier-Honda Civic Lease Questions

CarMan@Edmunds[email protected] Posts: 38,515
edited January 2014 in Honda
Hi everyone. Please use the following discussion to post any questions that you have about leasing a Honda Civic. Thanks.

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  • Hi Car_Man, do you have the current Sept 2005 money factor and residual numbers from Honda yet? If not, what were the August numbers?
  • Hi ruag35oner. I have seen Honda's new September lease program for the 2005 Civic. Unfortunately this month Honda pulled the plug on its special lease program for the Civic. As a result, if you were to lease one through Honda Finance right now, you would have to use its standard lease money factors. If you let me know exactly what Civic model you want, how long you want to lease it for, and how many miles per year you need to be able to drive it, I should be able to give you an idea of what its new program is like.

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  • Car_Man - Looking for a 2005 Civic VP Auto 12,000mi/yr 36mo.

  • Hi Carman,

    Any info on the 06's yet. Looking for 06 Civic EX Coupe with 5speed MF and residuals please. I prefer 36 or 39 months with 12K per yr. Thanks for your help.
  • Here's the information that you are looking for, ruag35oner. If you were to lease a 2005 Honda Civic sedan VP through Honda Finance right now for 36 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00255 and 53%, respectively. Don't forget to take the dealer cash that is available on this car into account when negotiating your lease.

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  • Hi ajpbf7. Honda just published a lease program on the '06 Civic coupe a week or so ago. As one might imagine with a new model like this, Honda is not currently providing any sort of lease support on it. If you were to lease a 2006 Honda Civic EX Coupe without navigation through Honda Finance right now for 36 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00255 and 61%, respectively. The numbers for an otherwise identical 39 month lease should be .00255 and 57%.

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  • Could you give me the residual values and MFs for a 36 and/or 39 mo 15k/yr lease on a 06 Civic LX Coupe?

  • Here you go jnuzzi. If you were to lease an all new 2006 Honda Civic LX Coupe through Honda Finance right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00255 and 59%, respectively. The numbers for an otherwise identical 39 month lease should be .00255 and 55%.

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  • Thanks Car_man! :shades:
  • Hello car_man,

    Do you have any #'s on expected buy rate lease money factor and residual value for the upcoming 06 Hybrid, w/NAV? I'm looking at 36 or 39 months, for 12K miles/year. I've put $ down, but haven't decided on purchase vs. lease yet (it's for business purposes, so for tax reasons I'm leaning towards leasing to take tax advantage of it as an expense). They expect to have them in October.

    Also, are there any advantages/disadvantages to leasing a hybrid? I don't hear it discussed that much. Thanks!
  • hey,
    after doing as much homework as only possible, i went to a dealer yesterday to get a lease on a 2005 civic ex. we had negotiated price down to 16880 from 18425 (miami, florida)
    i wanted a lease since i have limited budget at the moment (-out of college and on entry level job) and i qualified for the graduate program lease.
    offer was approximately something like this.
    42 mon.
    1500 down
    15K /yr
    now this is after negotiating for 2 hours since he brought me out ridiculous quotes. i really want the car, last one around here, and i didn't want to give up.
    my creditscore is 658.
    i was giving him 3000 down!!! for a lease!!! and his first offer was for 12k/yr for 289 for 48 months!
    i dont know what is up.
    after 4 hours at the dealer, i left. i called later, he said that honda bank chainged their mind about approving me for a lease....
    well, i offered 16000 to purchase the car and i am putting 3000 down, interest rate i am approved for is 11.14.
    can you give me any advice or your thoughts i would SINCERELY appreciate it. this is my first time buying a car and talking to dealers...
    thankful in advance,
  • Walk away from that Lease deal. Head over to your local credit union and join up and see if you qualify for a good rate (you will most likely get around 7% or 8%with your credit score). If not, try to get a parent or someone with good credit to co-sign for you. If you can buy it for $16,000 and then subtract your $3,000 downpayment you will have to finance around $14,000 for the car and tax,title and lic. You can get a 60 month loan on $14,000 for about ~$280.00 per month on this car. If you need to you could stretch it out to 72 months (although I wouldn't).

    DO NOT LEASE. Buy this car. Go to the Credit Union. Also, take your time and don't ever get in a hurry to buy.
  • thank you for your advice.
    i did walk out the deal and am going to another dealer. i just could not figure out why the lease was so expensive. here are the details from the honda printout.
    he was telling me that i was getting these prices cuz i was on the graduate program lease, which is the least preferred.
    he kept pushing me for 42 and 48 mon lease to lower my payments.
    when i asked him about the interest rate, he said, there is no interest rate, it is a lease....hahaha!

    payment details:
    term 36mon
    base payement 315.35
    total payment 334.27
    purchase option 10,133.75
    msrp 18425 (although we agreed on price of 16880) he said that he needed to enter this in the computer to receive right residual value -perhaps true.
    est miles/yr 12000
    excess milage 0.15

    money due at inception:
    1st month 334.27
    depozit 0
    aqz fee 0
    fees and title 293.50 (inc. lemon, tire, battery and tag fees)
    upfront taxes 81.44
    cap reduction 1290
    out of pocket 2000

    well, i can tell you that he was pretty pissed after dealing with me for 2.5 hours. i have three master degrees including an mba and he was trying to explain to me how a lease works and that i need to go to 48 months. i think that i confused him totally when i started talking about depreciation procentage rate of the value of the car in the fourth year and that i was not interested in leasing for four years since the fourth year payments would not go into equity on the car.
  • First of all, not to offend you, but your post above shows that you do not understand leasing at all.

    Good thing you walked away because he was trying to take you to the cleaners. You should, under no circumstances lease a car. Not that leasing is not a good option, but for the fact that you do not understand anything about leasing and you WILL get taken to the cleaners.

    Leasing takes a few weeks of research and time to really get a good understanding of how it actually works. I would say this, if you cannot sit down and be able to calculate a lease payment from scratch with a pad of paper, pen and a calculator using the money factor and residual, then I wouldn't do it.

    Let me tell you this as well, you could get a 2006 Camry LE w/ Auto, etc. on a lease for about $50 less per month than what that guy was quoting you for a 2005 Honda Civic. That is with no money down!!

    Don't ever put money down on a lease because if you get in a wreck and total the car or it gets stolen, you lose all that money you put down.

    Just walk in with financing from your local bank or credit union in hand (don't tell the sales person that you have it yet) and negotiate the best price for the car. Then, unless they can beat the interest rate, just BUY the car. Much, much easier and quicker. Don't let them add any fees except for maybe a small Doc fee (around $50-$100). You will not get screwed if you do this.

    The guy that was trying to lease you that car was going to make THOUSANDS off of the deal.

    One more thing, go buy an Amorization book. It will help you out tremendously when it comes to the monthly payment when you are looking at the different interest rates.
  • Oh my, I was just doing the actual math on the above deal and the monthly portion going towards the car was $131.83. That salesperson was charging you around $200 in interest, fees and tax, title, lic. per month on that car. :surprise:

    Now do people see why car dealers have such a bad rep.
  • I wanted to chime in as well about this lease issue. I agree that buying is better than leasing in your circumstance (unless there is an advertised lease special sponsored by the manufacturer; even then the dealer could try and tweek more out of you). HOWEVER, the best use of your money is to buy a used car for $10-12K, at a favorable rate, while you slowly re-build your credit rating.
  • I would not agree to buy a used car. He is young, just starting out and the last thing he would need is for something to go wrong with the car and have no warranty to cover it.

    I think the best thing would be to try and pick up a new 2005 Civic Value Package. It would better fit your budget. You can pick up one up for less than $13k right now. If needed, just have someone put in aftermarket power locks and cruise for a few hundread bucks. That way you have a brand new, reliable car under full warranty for around $14k total (Price of car, tax, title, lic). Forget the ex and go for the VP.
  • OK, I'd go along w/a price like that if buying new. Used cars are a crap shoot, unless certified, which means you pay more anyway. But, often, if you get the right deal and select the right make/model, it will always be more cost effective. I know, those are big "if's"!

    Oh, Car Man, who started this forum, where are you? I still haven't seen a response to my earlier post requesting leasing info for a new HCH w/NAV ---
  • You're very welcome jnuzzi.

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  • Hi robrwa123. Honda has not published a lease program for the 2006 Civic Hybrid yet. I suspect that when it does it will not provide any sort of lease money factor support on it. If this is the case and you were to lease one through Honda Finance, you would have to use its standard lease money factors. For the length leases that you are interested in, 36 and 39 months, its current buy rate standard lease money factor is .00255.

    Other than the fact that Honda will probably not provide any sort of lease support on the Civic Hybrid, the only disadvantage to leasing one that I can think of is that many banks' residual values for hybrid models are not as attractive as their residuals for equivalent non-hybrid models. This is because hybrids so not have a long history to prove their future reliability like vehicles with conventional gas or diesel motors do. Fortunately, Honda Finance's residual values for the 2005 Civic Hybrid are very reasonable.

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  • Greetings collegegrad. Let me begin by saying that it definitely is not in your best interest to make a $3,000 down payment on a leased vehicle. I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your Civic would be exactly the same, regardless of whether you had put $3,000 down, or had made absolutely no down payment at all. Consumers can and should lease any vehicle that they are interested in without making any sort of capitalized cost reduction. Since you are a recent college grad, I am sure that money is fairly tight anyhow and that you have much better uses for that three grand.

    11% is a very high interest rate, especially for a lease, even for a recent college graduate without much credit history. If that is the lowest rate that Honda Finance is willing to lease this car to you for, you may want to consider financing it instead. You may be able to get a more reasonable interest rate by financing through a local bank or credit union. See if you can get pre-approved to finance the Civic that you want prior to going back to this dealer. Your $3,000 down payment will definitely improve your chances of being approved to finance this car by a bank. Doing so will give you an idea of what sort of interest rate you will be approved at and will motivate the dealer that you are working with to try and beat it.

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  • Thanks Car_man - now I'll just wait for the announcements on the all new HCH, which are reportedly coming out today on pricing. Have you heard that, too? Will the pricing announcements include RV's? When will the cars hit the lots?
  • You're welcome robrwa123. Most manufacturers' captive finance companies do not publish lease programs for new models the day that their pricing is announced. I am not sure when the 2006 Honda HCH is expected to begin to arrive at dealers, but I don't expect to see a lease program for it until it does.

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  • crg4crg4 Posts: 8

    Can I correctly assume that the money factor/residual value would also be .00255/59% for a:

    '06 Civic LX or EX sedan
    36 months
    12k miles

    if leased some time during the next 4-6 weeks? Also, is this lease info readily available from another source or just from your crystal ball? I hate to bug people for answers that I could otherwise find myself w/ a couple of key strokes or a phone call.

    Thanks in advance!
  • I just got a quote from a local dealer on a 06' Civic LX Couple Auto, Taffeta White

    Cap Cost: 16,926.50 - I feel this is pretty good - won't argue here.
    Lease Term: 36 Months @ 12k Miles/Year
    Residual: 61%
    Money Factor: .00345 or 8.28%
    Monthly Payment: $325-$330
    Down Payment: None

    - Money Factor - Shouldn't this be significantly lower? I have pretty good (not great) credit, and was approved for an EX (more expensive).

    - Monthly Payment - Based off figures he quoted, shouldn't my payment be around $277/month? If so, what could he be adding in there?

    Please someone help me understand his reasoning. I already sent him a reply via email, but still no response.

    - Steve -
  • I got quoted a 61% residual today. Might want to look into that. I'm not sure on the mentioned money factor though.

    - Steve -
  • Hey there Car_man -

    Was wondering if you could let me know the stats on a EX Coupe AND Sedan, both with Nav, 15k, and 24 and/or 36 months?

    I've been getting some WILD stuff all over the place...

    A finance manager at Honda gave me a fig of .00265 money factor and 56% depreciation for a coupe with nav, 36 months...

    ALG always will have a much better depreciation rate I'm assuming?

    I'm just doing all of the homework/research I can...

    THANKS a BUNCH! :shades:
  • sorry -

    i posted this in another forum, absentmindedly not realizing there was a thread specifically for civic leasing...

    my post about a price quote i received
  • Car_Man,

    Are residuals available for the 2006 Civic Hybrid yet? I am interested in calculating a lease payment on one, assuming the 0.00255 money factor and a 36/12 lease.

  • This is a horrible deal. You could BUY the car for the same amount in monthly payment that he quoted you.
This discussion has been closed.