By accessing this website, you acknowledge that Edmunds and its third party business partners may use cookies, pixels, and similar technologies to collect information about you and your interactions with the website as described in our
Privacy Statement, and you agree that your use of the website is subject to our
Visitor Agreement.
Comments
link title
I bought my Odyssey off-lease through my credit union. I printed the instructions and odometer statement from the HFS site and my CU took care of the rest. I bought GAP through the CU for $299, not the $695 my local dealer wanted. $0 doc fee vs. $398 at the dealer. I paid the sales tax at DMW, although the CU would have financed it. My CU had the title from HFS in less than 10 days.
Also, keep in mind that HFS will let a Honda dealer buy your lease vehicle for $300 less than your residual. If you go through the dealer, ask him to pass some of that savings along to you.
Other captive lease banks always have said "contact your dealer" when asked about purchase at the end of lease.
Dennis
I went to the dealership last night looking to lease a 2008 Honda Accord EX but with my credit the payment was going to be more than what I am willing to pay monthly.
So now I am thinking about leasing the 2008 Honda Civic EX (Sedan). Doesn't come with anything fancy, just the standard EX stuff.
I'm trading in my 2000 Accord which I still owed $4000 on. They are giving me $5200 for it. I don't have to come out of pocket with anything but the first month's payment.
The monthly payments would be $299/month including tax. (36 month lease, 12K miles)
Also, I have "Tier 4 credit". My credit score is 596.
Considering my poor credit, is this a good deal?
Thanks for any help you guys can give me.
-TaraV
It is hard to say with just the info you give.
First off, when leasing you need to negotiate the price of the new car just like you would if paying cash. You need to be somewhere around invoice for the car, destination, and dealer fee.
Once you have the price for the new car set, then you look at your trade. Check the trade value here at Edmunds, KBB, NADA, etc and get the evaluations. Put in the miles, options, and condition and see how it looks. Compare that with what the dealers offer you to be sure you are getting a fair offer. You can also try CarMax or similar places to see how much they would give you to buy your car. Generally they would give $1k or so LESS than a dealer would, but it is a free estimate so worth checking.
Once you have the new price and trade allowance set then you can look at the lease numbers. We can get the tier 1 buy rate for the lease money factor, but I don't really know how to find the tier 4 rate. But we can work on that.
Find the price of the car including dest and doc and value your trade, then we can go from there to evaluate the deal.
Dennis
Edmunds.com says my car is worth $5544.
The dealer is charging me $18,500 for the car. They keep saying "At Cost". Whatever that means.
Does this help any?
I assume this is a Civic sedan with automatic? The invoice is $18,589 and if they are doing $18,500 for the car and destination then you are $89 under invoice which is a nice number - as long as they don't have a large doc fee on top of that.
So the next thing is what state do you live in? You say the payments are $299 including tax for 36/12k but without knowing the state I can't see what the base payment is. You can also ask the dealer "what is the residual" and "what is the money factor" and we can run the numbers and what how it looks.
I am always suspicious of round payment numbers ($299 per month is a prime example), all of my leases are always at really odd numbers like $267.43 or something).
Dennis
They talked about residual and money factors last night but it was all so foreign to me so I really don't remember all of it. I remember him saying something was 4.6 or 4.65, something like that? Does that sound familiar?
I live in Massachusetts. So the tax is 5%.
They told me that all I have to come out of my pocket with is first month's payment. Nothing else. I told them I did not have anything else to give them.
So I was assuming the doc fee and any other fee was taken care of with the difference that was left over after they pay off my car loan.
It looks like MA is 5% tax on the base payment, so $299 w/tax is $284.76 per month base payment.
I would call them back and ask them for the residual and the money factor. Once we have those, we can see if they are hiding any more money in your deal or not. Without those, I have no idea. On the surface it sounds OK given your credit tier, but I can't tell much more than that.
If we assume 0.0046 is the MF (over 11%) and if we assume the residual is 63% like it is on the LX Civic, then $17,690 would be the net cap cost on the lease. $18,500 car price plus $595 lease bank fee less $1,200 trade gives us $17,895. So IF that is the right residual and MF (or close) then there seems to be no worries - other than the high rate.
Dennis
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and share!
Edmunds Moderator
But so far you have helped me out a lot and I feel a little better about doing this.
Thanks much Dennis!
Dennis
was this a fair deal?
Here's the thing_ how can anyone help you with your question when the specifics are missing? The actual sales price is needed, tax rate for the state, vehicle's exact model, etc.
The best I can come up with, using my paid off car for trade and first month's payment is around $260 a month.
If these numbers are correct, which I'm sure they are, I'd like to just print this out and take it in to the dealer and tell them to give me this and I'll take the car home.
I appreciate your feedback.
Steve
4500 down
151 per month for 36 months
car valued at 17450
leased in pa where tax is 6 percent
residual is 11098
is there ne other information u guys need to tell me whether this was a decent deal or not? if a bad deal.. what was prob the best deal i coulda got? thanks in advance
MSRP: $23,095 with Dest.
Invoice: $21,295
Purchase Price: $20,695.43 ($599.57 below invoice, details below)
Down: $0 (taxes/tags paid upfront)
No acquisiton fee (previous leasee), 24 month 12k/year, 73% residual, 0.00204 Money Factor
Monthly is $236.44, about $15 less than my current Accord SE V6 lease from last year.
Got the purchase price under invoice because I'm a 2-time buyer from the dealership and that the dealership gets a tax credit at the end of the lease (in Illinois you pay sales tax on the whole vehicle NOT what you lease).
Signing papers tomorrow.
Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum
Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum
Are you sure you don't mean "no security deposit" ? As a previous lessee or with good lease credit they will often waive the security deposit, I have never heard of a lease bank waving the $595 (or whatever) bank fee for anyone.
Dennis
-Chris
I changed my mind and rather lease the vehicle. They couldn't tell me a MF without running my credit, which I didn't want to do. The residual was around 11.5k for a 36 month 12,000 lease.
I basically shot some numbers $1900 down and $198~ a month after tax payments. I figured the total amount of the lease amounts to $8830.
Another dealer offered "Civic LX is $223 + Tax ($236 Tax included), The Ex for $ 245 + tax ($260 Tax included), The Hybrid for $ 282 + tax ($299 tax included). " and "All you need is an excellent credit and inception money around 600 more or less"
By the way I live in Hollywood Florida and the tax here is 6%. I'm pretty much looking around for the absolute cheapest price. I can wait out this purchase as well. This is a car purchase to take some load off my lower MPG vehicle.
My suburban Detroit dealer offered the Civic LX automatic, zero-down, 3 years, 12k miles/yr, $240 a month. Very similar to the deal offered to bigrich20970 according to his Feb 8th post. Does this sound good? I am trying to learn the importance of money factor and residual value, but if I have the quoted monthly payment isn't that enough?
Thanks for the help.
Upon reading bigrich's deal again, his was a sign-and-drive while mine is zero-down, so mine is not quite as good. But it appears there are other factors involved I am not considering.
Help on straightening myself out would be appreciated. Sales tax in MI is 6%, if that is a start.
Thank you!!
Drove an SI today, loved it. Looking at a sedan with Navi, msrp is $23,695
I would like to do a 36 month lease with nothing down, have good credit. 15k a year unless 12k is significant savings?
Anyway, I am new to leasing so will simply ask, what would a reasonable package look like?
Thanks.
Does anyone know of any drawbacks or problems using the one payment method?
This lease stuff is difficult to figure but this is my guess without talking to dealers yet. Does this seem correct.
08 Civic LX Sedan + Destination 16,984
Cap Cost Reduction -1,205
Residule -12,000
Trade In -500
=====
3279
Term 24 Months
Money Factor .00207
Depreciation Fee 136.63
Finance Fee 57.50
NJ Tax 7% 13.59
======
207.72
Total Lease Payment 4985.28
Plus Doc Fees
Plus Title and Registation
Am I close on my numbers or am I way out of wack?
Thanks
Jim
BTW, I just tried Edmunds Lease Calculator and I see it doesn't calculate Sales Tax correctly and it forces some fees on you like Security Deposit. IMHO Pretty lame calculator.
Honda Civic LX, 24 Month Lease One Payment $6300, Threw my trade at them at the very last second and got $800 for a 95 Civic Clunker with bad everything. Add the fees and tax back in and the final total cost was 5707.50. Thats all I pay'd and I'm done for 24 months. So $237.81 per month.
My goal was $5400 but $5707 was close enough. Their inital lease offer was $7900, then $7100, then $6300.
They tried to bait and switch me from a 24 month lease to a 36 month lease after all the paperwork was done saying Honda didn't offer a 24 month one payment lease. I walked. About 30 minutes later they called me back saying it was all a mistake. LOL Yea right. I was already on my way to another dealership but the next dealership is a 35 minute drive and I figured better to stay close.
So I went back and made the deal.
Sticker $20175
0 down/sign and drive
273.99/month for 36 months
Residual $12300 (rounded)
The dealer apparently paid the tax, title and 1st month payment as I only owe 35 payments.
Was this a decent deal?
By the way the dealer said the MF was .00128, is this right?
Thanks for your comments
After reviewing my lease I see I didn't do great. I could have easily gotten the 5400 price I mentioned above (and they addmited that to me today) but they wore me down after 5 hours. I probably could have done better than 5400 if I was a good negotiator. I also realize now that I probably could have leased an EX vs the LX for nearly the same price.
I'm guessing the residuals on a 24 month lease is between 68-72 percent. Depending on the model. The 36 month lease seem to be 61%
To properly estimate a good lease price you need the REAL Invoice price, (I suspect Edmunds is not accurate) The true residual price (not sure where to get that from) and the MF. Don't use Edmunds lease calculator cuz it calculates incorrectly. Try this one http://www.leaseguide.com/calc.htm
Do you have the April money factors and residuals from Honda for a Honda Civic EX Sedan (w/o leather or nav)?
Thanks in advance.
I've read most of your posts in this forum and learned a great deal, thank you. Before reading them I was seriously considering putting $2000 down on a lease but have now reconsidered that. I will just put that money aside to help pay for the higher monthly payments.
I consider myself fairly knowledgable in understanding what leasing is but am not so sure about the steps I take in starting a lease. I know the first thing I should do is determine the invoice price and negotiate up from that with the dealer. Do I then go to other dealers and find out what their best offers are before I mention to any of them that I want to lease? I am interested in leasing a 2008 Honda Civic LX sedan. According to Experian my credit category is Prime Plus. Can you tell me what the money factor and residual % should be? I am interested in a 15,000 m/year with a 3 year lease.
Also, should I add the acquisition fee and other fees to the Net Cap cost or should I pay for some fees up front? Do all dealers have an end-of-term fee if I choose not to buy the vehicle?
Any advice would be great, thank you.
One thing I discovered is that the Navi (in this and most vehicles) does not really add anything to the residual. You are essentially leasing the car and buying the Navi. You will save yourself A LOT of money by skipping some of these options. My 1st quote with Navi was $375 a month with something like $750 down. I shopped several dealers after that.
I wound up skipping the Navi. To make a long story short, on my 2008 Si, 36 month, 15k per year, I got:
$301 a month which includes the 9% PA lease tax
$500 at signing which also covered title, tags, registration, 1st month payment.
Cheers.
58% of the non-Nav MSRP would be $12,612.10 while 56% of the Nav MSRP would be $13,157.20 a difference of $545.10 more for the Nav car - without the 2% drop the residual would be $1,015 higher. The additional cost (at invoice) is $1,605 which mean you pay $1,059.90 for the use of the Nav over the term of the lease - plus interest and taxes.
Integrated is nice, but you can get a portable Nav for under $200 now so it really seems bogus to pay $1,600 or more for an out of date OEM system. In the case of the lease, over $1k just to borrow their system for 3 years.
The Nav car should be worth more at the end of the lease, but not as much (percentage-wise) and the non Nav car. The maps will be 3 years older at that time and portable Nav systems will be even cheaper.
Dennis
You are on the right track by negotiating your car's selling price before talking about payments. $100 under invoice is a good deal on this car right now. I do not personally keep tabs on the details of manufacturers' balloon note programs, but the interest rate that you were quoted looks slightly high to me. The money factor that is available on leases of this car through Honda Finance is equivalent to an interest rate of less than 4.5%.
Also, there's no reason to make such a large down payment on your deal. If you're going to do a balloon note or a lease, you can and should go with zero down.
Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum
Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum
Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum
Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum
There's nothing wrong with rolling your car's $595 acquisition fee and other fees into its capitalized cost. By doing so, you end up paying interest on them, but this car's interest rate isn't bad and you eliminate the risk of just losing the fees if your car is totaled or stolen. Most banks charge some sort of disposition fee at lease-end to consumers who opt not to buy their vehicle or lease another one through them.
Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum
I live in Texas and am interested in leasing a civic ex coupe,(no leather or nav.) automatic transmission.
I've been given 2 internet quotes of $18790.00 or $20,188.24 with tax drive out
or $18679.00 or $20,079.40 with tax drive out
Are these good prices to be accepted at face value or should I still try and nego more off? Also, does anyone have the best money factor available to people with excellent credit for April on this car and the best Residual as well in a 15,000 mile, 36 month lease?
Lastly, when I'm provided that Residual Pecentage, should the M.S.R.P. figure I use with it be the $19510.00 on Hondas website or do I get to add the $635.00 destination fee to the M.S.R.P. for a total of $20,145.00.
I hope its the latter for a larger Residual!!!
Thanx again for any help you can provide!!!
MSRP: $20,145.00
Residual: $12,691.35 (63%)
Money Factor: .00207
Miles: 12,000
Bank Fee: $595
Selling Price: $18,944.39 (backed into to get the monthly payment)
Tax (8.625%): $873.11
Monthly Payment: $283.00 (“Sign and Drive”)
From the Lease Agreement:
Cap Cost: $20,412.50 (18,944.39+595.00+873.11)
Residual: $12,691.35
Depreciation: $7,721.15
Rent Charge: $2466.85
Total of Base Payments: $10,188.00
Divide by 36 = $283.00
Fees I paid in cash:
Registration Fee: $130.00
Inspection: $65.00
NYS Waste Tire Management: $12.50
The “agreed” price was $18,950. I could have better, but I’ve dealt with the dealer before and there a lot of convenience with the dealer that was worth paying for. First month’s payment up front, and no security deposit required (I’m a current AHFC customer).
They also offered me “better” deals (lower monthly payments) with other leasing companies (as did other dealers), but there were higher fees involved that would have made the net cost of the lease higher.
Not sure of my payments with the extra $800 dollars off the MSRP from the dealer. But the orignal deal is $199 a month with $1999 down. Option to purchase at the end of the lease is $11,588.
I am sure the price of three year old Civics will be higher than $11,588 with 36,000 miles on them.
That is one of the reasons we are even considering a lease. The prices of used Civics are in the $13,000-14,000 or more range for cars with less than 50,000 miles.
Do you think it is a good deal with the $800 discount on the MSRP and then the $1200 dealer incentive?
One question about leasing - my wife gets a few door dings in the parking lot where she works, a hospital. If we decide to purchase the car at the end of the lease do we still have to get those dings repaired before we can purchase the car? :shades:
Thanks for helping out.
Brad