The $2500 most certainly applies to the lease with that money factor. In fact, my sales manager specifically told me so, as he was reading from what looked like an official document. Your dealer is trying to hose you, I believe. :mad:
Hi Sesarj, I have been talking with Ben Wong in Oakland. My friend already leased one Touring no Pax in June (when I should've) and while this deal looks to be about $8 more a month (which I'm fine with), when I spoke with him today, he didn't think that the difference was as close.
He's not super motivated recently as he can't get my first choice color but I'm looking into other color options. So far, I really like this guy... no b.s. and really straightforward with data, which I like. My friend, Barb, was in and out of the dealership in less than an hour, as price was agreed upon beforehand.
I'm looking for the same car... good luck and let me know what you find. I've been using leaseguide.com - it seems to be pretty right on w/the dealer numbers.
Thanks for all the help on the boards. Just leased a 2008 EX-L with RES for the following: 36 month/ 12K miles MSRP: $34,480 Cap Cost (inc $670 destination and $595 aquistion): $28,887 Res: 54% MF: 0.00163 Monthly Payment: $362.36 + $25.37 (7% tax) = $387.73 First payment only due at signing. Kokomo Auto World, Kokomo, IN...very easy to work with. Hope this helps someone!
I have come close to leasing an 08 Honda Odyssey EXL twice this past week before walking away last minute. The latest offer I was given was $ 379 a month with zero down. At signing I would have to spend $1700 which would cover tax, title, and bank fees. The car would have dvd, roof rack, leather interior, rear camera. Does this sound fair?
Nice work, Sesarj... Pretty much that's the best quote I've gotten from other dealers here in NoCal, too, since the stats (mf, resid, etc) have changed. Nobody will get back down to the $450ish (7.75% tax included) that I was offered in June. I snoozed and lost and this deal is now the best I'm seeing... so yes, you did well.
The dealer DID NOT go down in price to match the Dealer Lease Cash of $2500 from where we'd negotiated. He didn't give me a super clear reason - except that the "sales manager" wouldn't authorize it. Probably because to keep nearly the same payment, the cap cost would have to be something like $33,400.
Funny, he couldn't remember last month's deals but I could... ugh, that's annoying because I don't believe that story.
Bottom line, monthly payment was right around $500/mo, with only dmv, tax, 1st paymnt out the door.
Yes, I called the day to my local dealer, and they said they did not get the $199 lease program from Honda yet but they will give the lease as shown in the paper, next day I went the dealer, and they showed me notice from Honda America as below.
NOTICE OF CORRECTION Today, July 31, 2008 USA Today, in its main section on page 4, published a Honda Clearance advertisement for the 2008 Odyssey Touring model, a lease offer of $199 per month for 36 months and $2,793 due at lease signing. This offer does not exist. American Honda is investigating this matter. We apologize for any confusion and inconvenience.
I talked about this lease for a long time at the dealer and I found one thing, they will have really big lease clearance very soon. They said if I bring the ad on the day I might get the deal because that day there is no info from American Honda.
Anyway I will wait another month for better deal, they said it will be soon.
This USA Today ad is clearly an error. An Odyssey Touring is not even in the realm of $199 per month. Even if the ad was supposed to offer an LX instead of a Touring the payment with the additional $794 cap cost reduction over the $239 deal comes out to $215 per month. $199 would be a great deal on an LX. On a Touring it would be outrageous.. But if you get that deal on a Touring, tell me, I'll take one.
Hi edody. I have never seen a Honda Finance lease with only 10,000 miles per year so I do not think that it offers them, but it wouldn't hurt to ask. Honda Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2008 Honda Odyssey EX-L with RES / NAV and 12,000 miles per year are .00202 and 52%, respectively for consumers who qualify for its "Super Preferred" credit tier and pay a security deposit at lease signing. Vehicles that are equipped with extras like entertainment systems or navigation almost always have residuals that are a point or two lower than vehicles without these options.
Car_man Host Prices Paid: Buying & Leasing Experiences Forum
We were just offered an EX-L without Nav or RES for 36 months, 12K miles per year for $425/month including 7.95% tax and $400 OTD. I don't have all the specifics since it was through a friend of a friend but the Cap Cost was right above $27,000 using dealer cash, 55% residual and a .00163 MF. Sound too good to be true or just a great deal? We also posted on the Toyota Sienna board since that van was our first choice.
$425 a month is very high for a cap cost of $27000. I don't think your quoted $27000 cap cost includes the $595 acquisition fee, sales tax, first payment, or TTL. $27000 is likely the offered selling price of the EX-L which is the deal I took 10 days ago. My payment is $344 w/o sales tax (first payment due at signing).
Thank you for the response and you are absolutely correct. This is the deal on the table as of now
MSRP $32,880 Cap Cost $28,189 (inc Destination + Doc Fee of $399) 55% Residual .00163 MF $932 Down (First Payment and Plates at $580) Arizona $384/month includes 7.95% tax
That other dealer at $425 must have thought I was an idiot!!!!
Last night we went in and accepted this deal. At the signing table they tried to charge us for doc prep of $399 + the $932 down (first payment of $384 and plates of $580) I balked and got a little heated saying that was not the deal that was agreed to over the phone. They did the right thing and wrote it off. $555.55 OTD with $384 and change per month. Thanks again for this forum!!!!!!
Suggest to use the donkeypunch method (members - proven success), sending out form-letter (same model/trim, same questionaires, ask for Out-The-Door final price) email to Honda dealers within 50 - 100 mile radius. Then filter the 2 lowest quotes (the 2nd one is for backup - just in case), confirm with them in B&W, best is get the Sale Manager signature to avoid any surprise after your arrival at dealership. Plus you can ask your nearest dealer willingness to match/beat the best deal you got so you don't have to travel much far.
This is in Vancouver, WA (Portland, OR metro area).
I've got a couple dealers pressing me to come in and "sign tonight", so my gut tells me I can do better. I'm considering waiting until September, but am afraid even if the lease support gets better from Honda, the residual will drop, nullifying the difference.
Thanks for the advice...I looked through the forums and checked out other posts on the donkeypunch method just to be thorough, good stuff...
I just got this response back from one of the dealers, how funny is this:
I have received your inquiry regarding a 2008 Odyssey Touring. There are currently special incentives available on the Odyssey, and depending on method of payment, may affect the selliing price of the vehicle. If you could please tell me how you plan on paying for the vehicle, I will get started on getting a quote for you right away. I want to be sure that I have all of the correct information, this way you get an accurate quote.
WHAT?!? It sounds like they're trying to set up the best way to empty my pockets...
I thought it was: $1500 if financed or leased through Honda Financial. (Offer is less because of cheap money cost) $2500 for cash (or a loan from someone besides Honda Financial).
And I agree this is the reason for the question in the sales email. They are just attempting to be accurate. Offering you the low price before knowing if your purchase would be eligible might give the appearance of trickery. So I would view this email as a positive indicator of the dealership because they aren't employing a standard bait and switch tactic.
Would one expect the lease deals to get any better before the 08 models are gone? The best I can get at the moment on an 08 EX-L is $384/month and paying the fees down.
I went to my local Honda dealership in Ardmore, PA, and asked for a $0 out-of-pocket deal (and I mean $0 -- no 1st pmt, tags, deposit, security fee, registration, etc., -- I don't want to pay anything upfront -- absolutely nothing out of pocket). I want to show up, sign the lease papers and leave my checkbook/cash/credit cards at home. However, I am willing to trade-in a '99 Mazda Millenia in fairly good condition with 81K miles. Not sure if this helps your particular situation but I here's what my local dealer if offering -
==========
36 Months - 12K miles a year Vehicle: 2008 Honda Odyssey EX-L (no RES or NAV, & no dealer installed options) MSRP: $32,845 Sales Price: $26,930.88 Monthly Payment: $278.89 ($255.86 + $23.03 tax) Due Signing: $0
I have been searching for an EX-L noRES noNAV for about a week now as well. Reading the messages on this board, the best deals people have gotten are zero down and around $350 (including tax). So if you were to get that deal you mentioned, I believe it would be very good.
I used the donkeypunch method and the best offers I have received so far are 800down/329mo (including tax 7.75% where I live) and 674down/360mo (w/tax).
lowest cap costs have been low 27K range money factor = 0.00163 residual = 55% (i have no idea how they calculate this b/c it I think it is suppose to be 55% of MSRP but I guess dealers use different MSRP figures because I keep getting different residual values even though the they quote the same residual %)
Not sure how much you can get for your trade, but from my week of negotiating the deal you state sounds pretty good. But the again, I am garbage negotiator.
Would love to know if you get that deal though!! Good luck.
I did it - I pulled the trigger and leased got the 2008 Odyssey for 36 months. It went exactly as I hoped and I didn't pay anything out-of-pocket. ZERO!! I showed up & gave them the keys to my '99 Mazda Millenia, signed the lease papers, and drove off with a new 2008 Odyssey. The 2008 EX-L minivan is sitting in my driveway right now all shiny & new.
I asked the salesperson for the best price (without the trade-in) and he quoted $372.78 ($342 + $30.78 tax) per month for 35 months since I negotiated hard for zero out-of-pocket (including 1st mo payment). In the end, I decided to go ahead with the trade deal to not only lower my monthly payment but also because my car needed inspection, the A/C was shot, and the battery was dead.
Good luck with your own deals and feel free to reply if you need anything else.
Paul
In the end, I'm pretty stoked with the deal I got.
That would have been a great deal ... but my lease included the trade-in for which they gave me roughly $3K. Their explanation to me was that for every $1K in value of the trade-in my payment would be reduced by approximately $30. So it appears that without trade & absolutely zero out-of-pocket, $350-$370 (including tax) for 35 months is the going rate right now. In my case, they lowered my deal to $255.86 + 23.03 tax (roughy $95 less or $30 X 3) for 35 months.
Good luck & let me know if I can help any further.
Paul must be including the trade in here because the sales price is too high for that monthly payment with no money down.
It helps to evaluate these deals if you request/post quotes with the following details:
Net capitalized cost. All costs you are financing, as opposed to paying in advance. Break out each cost here so we can determine the actual selling price. If you ask for no money down quotes they are harder to figure because the first payment is rolled into the net cap cost. Paying the first in advance can also improve the money factor.
Money Factor. Honda is typically offering .00163. This is 3.912% APR. MF times 2400 equals APR.
Residual value. Percentage is OK if it is accurate, but there is less ambiguity if you state the car's actual value at lease termination.
Due at signing amount.
Monthly payment amount without tax.
Sales tax paid. Know your state's/locale's lease tax laws especially if you are looking at dealers out of state. I've known dealers to act ignorant of sales tax laws outside their state and insist they must charge me the in-state sales tax even though I live in a cheaper tax state. Maybe it's not an act, but it's still a bad deal for me. In Wisconsin, a state with many consumer friendly vehicle laws, I pay sales tax on the monthly payment only. In Illinois, I'd have to pay sales tax on the entire capitalized cost. This and 5.6% vs. 6.5% was an $1100 difference on an EX-L. If I was a Chicago resident I would pay 10.25% sales tax and 6% city lease tax. That's 16.25% on the entire capatilzed cost. If you buy the car at lease end and still live in Chicago, you would have to pay 10.25% again. That is insane.
Not sure if my previous posts answered your questions already ... but I'll try again to summarize the best I can.
MSRP: $32,845 ($32,210 + 635 destination) Net Cap Cost: $26,930.88 Model: 2008 EX-L (No nav, dvd, options, etc.) Color: Silver Metallic Term: 36 months Trade In Value: roughly $2,750 Total Due at Signing: $3,143.50 Total Out-of-Pocket actually paid: $0 Monthly Payment: $255.86 + 23.03 tax Purchase Option at end of lease: $18,084
Paul said: In the end, I'm pretty stoked with the deal I got.
You should be stoked. Great price on both ends of the deal. A trade in reduces your sales tax burden and reduces the finance portion of a lease payment.
Not clearer because you quoted your net cap cost without reducing it by the trade in value (and adding in acquisition fee, first payment, TTL). Break out all these values.
I just looked up our Honda lease contract. The line on the contract is called "Adjusted capitalized cost". If I use your stated net cap cost, the payment without tax is $319.11 per month.
Sorry about the confusion I’m just not that familiar with all the leasing terminology (this is my 1st lease). Here’s another try. This breakdown comes directly from my lease agreement.
Agreed Upon Value of Vehicle 26930.88
Gross Capitalized Cost 27525.88 - Capitalized Cost Reduction 2746.11 = Adjusted Capitalized Cost 24779.77 - Residual Value 18084.00 = Depreciation 6695.77 + Rent Charge 2515.19 = Total of Base Payments 9210.96
Lease Payments 36 Base Monthly Payment 255.86 Monthly Sales Tax 23.03 Total Monthly Payment 278.89
Amount Due at Signing Capitalized Cost Reduction 2746.11 Advance Monthly Payment 278.89 Title Fees 22.50 Registration Fees 41.00 Doc Fee 50.00 Total Due: 3143.50 **
** As I mentioned, I didn’t pay anything out-of-pocket bu this is the figure listed on the lease agreement.
Now I’m not actually sure if I got a good deal or not – what do you think?
Using the donkeypunch method, I've gotten prices from 9 different dealers for an '08 Touring. The dealer closest to me is the only one who is giving me more info than just the base price - all the rest are giving me the "come in and we'll talk" speech.
Anyway this one dealer gave me $33,572, $1500 OTD, $472/mo for a 3 year, 12K/mi lease. I pressed him for details on what the $1500 was for and he said it was all for cap cost reduction.
I'm taking that to mean he's rolling up all the fees as part of the financing, and I don't necessarily want that. I'd rather pay the one time stuff up front and keep the payment lower. By my kooky math they're rolling up somewhere around $1750 into the financing, but I need some clarity on the math to make sure I'm doing this right...
I think you made a good deal on an EX-L, Paul. All your numbers add up. I would say the dealer really paid $3138 for your Mazda trade in given they paid the remaining $392 due at signing. Kelly Blue Book says trade in value is $4050 (S model, $5260) but I can never get a dealer to pay what KBB suggests.
Your selling price is $243 less than I negotiated for a plain EX-L two weeks ago.
Your math is correct. I never pursued a Touring and it seems crazy to even say it, but I'm not sure if $7100 off MSRP is a good deal. I do know it's a great time to lease an Odyssey.
I am in total agreement with spank. How much is a power lift gate worth to you? Cause that is the only thing you really get with a touring that you don't get in the EX-L. Aftermarket DVD and nav are cheaper and better (IMO). But of course, if I had the money I would get the touring too and not worry about any of the aftermarket stuff. But that would probably mean I wouldn't be reading all the great info on this board.
500 down 342 w/tax is my best offer so far. It might be B.S. though.
residual = 55% (i have no idea how they calculate this b/c it I think it is suppose to be 55% of MSRP but I guess dealers use different MSRP figures because I keep getting different residual values even though the they quote the same residual %)
You are calculating correctly. I received many email quotes for plain EX-L with residuals less than 55%. If questioned, the salesman would always state that Honda sets it and nothing can be done. I believe the residual percentage is lower for RES, RES/NAV, and Touring models. For a plain EX-L, insist on 55%. Lower residuals are just another way for dealers to take your money.
There was a hike in the destination charge of $35 that raised MSRP on any vehicle shipped after the increase so you will see slightly different MSRPs for the same model.
Just got this lease in San Jose CA. MSRP 32845 selling price 27164.91 Adjusted Cap cost 27759.91 Resid 55% mf .00163 drive off 696.13 (includes first month + fees + cal environment stuff) Month payment 372.38 (includes tax rate 8.25%)
Hi Cambers, I'd say that somewhere around $34,900 or less is where you should be aiming - without any cap cost reductions or fees. That's the quote I got last month and when I shared it with my dear friend, she got that very deal. The monthly numbers have changed because the m.factor and residuals did, too. The incentive only increased $500 so you might be able to get the van for $34,400 - that's my goal, actually.
I would not pay any "fees" or the "cap cost reduction" because that's essentially putting money down on a car you're renting. Plus, it muddies the waters of what the actual price of the van is - bottom line should be just that. Also, in the unlikely event it's totalled, you're out that money.
What area are you in? Perhaps they'd like to sell 2 vans this month!
I was originally looking at the EXL R&N also... but after trying to figure out how to install a bluetooth that would work well in the EXL, the cost came to nearly the same - without the decent system, after installation and all. This was in the Spring so maybe things have changed but the factory installed bluetooth was cutting off the nav system when the phone would ring.
For $20ish more, I could get the Touring - easy enough to sway me. Plus, I didn't want to pay full price plus installation on items I'd only be using for 36 mo.
Comments
I have been talking with Ben Wong in Oakland. My friend already leased one Touring no Pax in June (when I should've) and while this deal looks to be about $8 more a month (which I'm fine with), when I spoke with him today, he didn't think that the difference was as close.
He's not super motivated recently as he can't get my first choice color but I'm looking into other color options. So far, I really like this guy... no b.s. and really straightforward with data, which I like. My friend, Barb, was in and out of the dealership in less than an hour, as price was agreed upon beforehand.
I'm looking for the same car... good luck and let me know what you find. I've been using leaseguide.com - it seems to be pretty right on w/the dealer numbers.
Cheers!
anyone else?
33800
How did I do?
touring no pax
15k pyear
36mth
Payment 551
Factor .00163
Due at signing 2800
Cap Cost 36205, Sold at 34850
+ will get 2000 to pay down current lease
Any thoughts?
36 month/ 12K miles
MSRP: $34,480
Cap Cost (inc $670 destination and $595 aquistion): $28,887
Res: 54%
MF: 0.00163
Monthly Payment: $362.36 + $25.37 (7% tax) = $387.73
First payment only due at signing.
Kokomo Auto World, Kokomo, IN...very easy to work with.
Hope this helps someone!
36 month/12k miles
MSRP: $40010
Cap Cost (inc destination): $33,800
Res: 52%
MF:0.00163
Monthly: 496.68 incl. tax
Drive Off: 828.43 incl. 1st month payment
Goudy Honda in Alhambra, CA
They are also applying the 2500 incentive
Did anyone else see it? Has anyone tried to get this deal from a dealer?
Pretty much that's the best quote I've gotten from other dealers here in NoCal, too, since the stats (mf, resid, etc) have changed. Nobody will get back down to the $450ish (7.75% tax included) that I was offered in June. I snoozed and lost and this deal is now the best I'm seeing... so yes, you did well.
Cheers!
The dealer DID NOT go down in price to match the Dealer Lease Cash of $2500 from where we'd negotiated. He didn't give me a super clear reason - except that the "sales manager" wouldn't authorize it. Probably because to keep nearly the same payment, the cap cost would have to be something like $33,400.
Funny, he couldn't remember last month's deals but I could... ugh, that's annoying because I don't believe that story.
Bottom line, monthly payment was right around $500/mo, with only dmv, tax, 1st paymnt out the door.
Hope this helps...
NOTICE OF CORRECTION
Today, July 31, 2008 USA Today, in its main section on page 4, published a Honda Clearance advertisement for the 2008 Odyssey Touring model, a lease offer of $199 per month for 36 months and $2,793 due at lease signing.
This offer does not exist. American Honda is investigating this matter.
We apologize for any confusion and inconvenience.
I talked about this lease for a long time at the dealer and I found one thing, they will have really big lease clearance very soon. They said if I bring the ad on the day I might get the deal because that day there is no info from American Honda.
Anyway I will wait another month for better deal, they said it will be soon.
Car_man
Host
Prices Paid: Buying & Leasing Experiences Forum
MSRP $32,880
Cap Cost $28,189 (inc Destination + Doc Fee of $399)
55% Residual
.00163 MF
$932 Down (First Payment and Plates at $580) Arizona
$384/month includes 7.95% tax
That other dealer at $425 must have thought I was an idiot!!!!
Sound a little better???
36 month/12k miles
MSRP: $40,500
Cap Cost w/destination: $36,000
Residual: 53%
MF:0.00163
Monthly: $506.47 incl. tax
Drive Off: $2000 incl. 1st month payment & $1277 cap cost reduction.
I thought this was decent but I'm seeing better negotiators in this forum, and I'm wondering if I should keep shopping....
36 Months - 15K miles p/y
2008 Honda Odyssey EX-L RES
MSRP:$34,480.00
Sales Price: $27,896.73
Residual: $17,929.60 52%
Money Factor .00163
Tax 6.75% $920.62
Payment $399
Due @ Signing $750.00
36 Months - 12K miles a year
2008 Honda Odyssey EX-L (no RES or NAV, no dealer installed options)
Sales Price: $27,696.00 ($27,101 plus $595 acquisition fee)
Residual: 55%
Money Factor .00163
Tax 8.5%
Monthly Payment $380.24 ($29.79 is tax)
Due Signing $450.24 (first payment, $50 doc fee, $20 temp permit)
This is in Vancouver, WA (Portland, OR metro area).
I've got a couple dealers pressing me to come in and "sign tonight", so my gut tells me I can do better. I'm considering waiting until September, but am afraid even if the lease support gets better from Honda, the residual will drop, nullifying the difference.
I just got this response back from one of the dealers, how funny is this:
I have received your inquiry regarding a 2008 Odyssey Touring. There are currently special incentives available on the Odyssey, and depending on method of payment, may affect the selliing price of the vehicle. If you could please tell me how you plan on paying for the vehicle, I will get started on getting a quote for you right away. I want to be sure that I have all of the correct information, this way you get an accurate quote.
WHAT?!? It sounds like they're trying to set up the best way to empty my pockets...
$1500 for purchase
$2500 for lease
$1500 if financed or leased through Honda Financial. (Offer is less because of cheap money cost)
$2500 for cash (or a loan from someone besides Honda Financial).
And I agree this is the reason for the question in the sales email. They are just attempting to be accurate. Offering you the low price before knowing if your purchase would be eligible might give the appearance of trickery.
So I would view this email as a positive indicator of the dealership because they aren't employing a standard bait and switch tactic.
I'm a first-time leaser as well!!
I went to my local Honda dealership in Ardmore, PA, and asked for a $0 out-of-pocket deal (and I mean $0 -- no 1st pmt, tags, deposit, security fee, registration, etc., -- I don't want to pay anything upfront -- absolutely nothing out of pocket). I want to show up, sign the lease papers and leave my checkbook/cash/credit cards at home. However, I am willing to trade-in a '99 Mazda Millenia in fairly good condition with 81K miles. Not sure if this helps your particular situation but I here's what my local dealer if offering -
==========
36 Months - 12K miles a year
Vehicle: 2008 Honda Odyssey EX-L (no RES or NAV, & no dealer installed options)
MSRP: $32,845
Sales Price: $26,930.88
Monthly Payment: $278.89 ($255.86 + $23.03 tax)
Due Signing: $0
===========
Any thoughts on this being a good deal or not??
Thanks,
Paul
I used the donkeypunch method and the best offers I have received so far are 800down/329mo (including tax 7.75% where I live) and 674down/360mo (w/tax).
lowest cap costs have been low 27K range
money factor = 0.00163
residual = 55% (i have no idea how they calculate this b/c it I think it is suppose to be 55% of MSRP but I guess dealers use different MSRP figures because I keep getting different residual values even though the they quote the same residual %)
Not sure how much you can get for your trade, but from my week of negotiating the deal you state sounds pretty good. But the again, I am garbage negotiator.
Would love to know if you get that deal though!! Good luck.
If not, and that's the transaction price for only the van, that's a great deal, and absolutely smokes the offer I've been given.
I asked the salesperson for the best price (without the trade-in) and he quoted $372.78 ($342 + $30.78 tax) per month for 35 months since I negotiated hard for zero out-of-pocket (including 1st mo payment). In the end, I decided to go ahead with the trade deal to not only lower my monthly payment but also because my car needed inspection, the A/C was shot, and the battery was dead.
Good luck with your own deals and feel free to reply if you need anything else.
Paul
In the end, I'm pretty stoked with the deal I got.
Good luck & let me know if I can help any further.
Paul
It helps to evaluate these deals if you request/post quotes with the following details:
Net capitalized cost. All costs you are financing, as opposed to paying in advance. Break out each cost here so we can determine the actual selling price. If you ask for no money down quotes they are harder to figure because the first payment is rolled into the net cap cost. Paying the first in advance can also improve the money factor.
Money Factor. Honda is typically offering .00163. This is 3.912% APR. MF times 2400 equals APR.
Residual value. Percentage is OK if it is accurate, but there is less ambiguity if you state the car's actual value at lease termination.
Due at signing amount.
Monthly payment amount without tax.
Sales tax paid. Know your state's/locale's lease tax laws especially if you are looking at dealers out of state. I've known dealers to act ignorant of sales tax laws outside their state and insist they must charge me the in-state sales tax even though I live in a cheaper tax state. Maybe it's not an act, but it's still a bad deal for me. In Wisconsin, a state with many consumer friendly vehicle laws, I pay sales tax on the monthly payment only. In Illinois, I'd have to pay sales tax on the entire capitalized cost. This and 5.6% vs. 6.5% was an $1100 difference on an EX-L. If I was a Chicago resident I would pay 10.25% sales tax and 6% city lease tax. That's 16.25% on the entire capatilzed cost. If you buy the car at lease end and still live in Chicago, you would have to pay 10.25% again. That is insane.
Not sure if my previous posts answered your questions already ... but I'll try again to summarize the best I can.
MSRP: $32,845 ($32,210 + 635 destination)
Net Cap Cost: $26,930.88
Model: 2008 EX-L (No nav, dvd, options, etc.)
Color: Silver Metallic
Term: 36 months
Trade In Value: roughly $2,750
Total Due at Signing: $3,143.50
Total Out-of-Pocket actually paid: $0
Monthly Payment: $255.86 + 23.03 tax
Purchase Option at end of lease: $18,084
Does this info make it any clearer?
Paul
You should be stoked. Great price on both ends of the deal. A trade in reduces your sales tax burden and reduces the finance portion of a lease payment.
Not clearer because you quoted your net cap cost without reducing it by the trade in value (and adding in acquisition fee, first payment, TTL). Break out all these values.
I just looked up our Honda lease contract. The line on the contract is called "Adjusted capitalized cost". If I use your stated net cap cost, the payment without tax is $319.11 per month.
Sorry about the confusion I’m just not that familiar with all the leasing terminology (this is my 1st lease). Here’s another try. This breakdown comes directly from my lease agreement.
Agreed Upon Value of Vehicle 26930.88
Gross Capitalized Cost 27525.88
- Capitalized Cost Reduction 2746.11
= Adjusted Capitalized Cost 24779.77
- Residual Value 18084.00
= Depreciation 6695.77
+ Rent Charge 2515.19
= Total of Base Payments 9210.96
Lease Payments 36
Base Monthly Payment 255.86
Monthly Sales Tax 23.03
Total Monthly Payment 278.89
Amount Due at Signing
Capitalized Cost Reduction 2746.11
Advance Monthly Payment 278.89
Title Fees 22.50
Registration Fees 41.00
Doc Fee 50.00
Total Due: 3143.50 **
** As I mentioned, I didn’t pay anything out-of-pocket bu this is the figure listed on the lease agreement.
Now I’m not actually sure if I got a good deal or not – what do you think?
Paul
Anyway this one dealer gave me $33,572, $1500 OTD, $472/mo for a 3 year, 12K/mi lease. I pressed him for details on what the $1500 was for and he said it was all for cap cost reduction.
I'm taking that to mean he's rolling up all the fees as part of the financing, and I don't necessarily want that. I'd rather pay the one time stuff up front and keep the payment lower. By my kooky math they're rolling up somewhere around $1750 into the financing, but I need some clarity on the math to make sure I'm doing this right...
MSRP: $40,680
Base cap: $33,572
Fees: $1750
Gross cap: $35,322
Cap cost red: $1500
Adj cap: $33,822
Redidual: $21,153 (52%)
MF: .00163
Term: 36 mo.
Base payment: $441.51
Tax: 7%
Payment: $472.42
Is my math correct, and does this look like a good deal?
Your selling price is $243 less than I negotiated for a plain EX-L two weeks ago.
500 down 342 w/tax is my best offer so far. It might be B.S. though.
You are calculating correctly. I received many email quotes for plain EX-L with residuals less than 55%. If questioned, the salesman would always state that Honda sets it and nothing can be done. I believe the residual percentage is lower for RES, RES/NAV, and Touring models. For a plain EX-L, insist on 55%. Lower residuals are just another way for dealers to take your money.
There was a hike in the destination charge of $35 that raised MSRP on any vehicle shipped after the increase so you will see slightly different MSRPs for the same model.
MSRP 32845
selling price 27164.91
Adjusted Cap cost 27759.91
Resid 55%
mf .00163
drive off 696.13 (includes first month + fees + cal environment stuff)
Month payment 372.38 (includes tax rate 8.25%)
I'd say that somewhere around $34,900 or less is where you should be aiming - without any cap cost reductions or fees. That's the quote I got last month and when I shared it with my dear friend, she got that very deal. The monthly numbers have changed because the m.factor and residuals did, too. The incentive only increased $500 so you might be able to get the van for $34,400 - that's my goal, actually.
I would not pay any "fees" or the "cap cost reduction" because that's essentially putting money down on a car you're renting. Plus, it muddies the waters of what the actual price of the van is - bottom line should be just that. Also, in the unlikely event it's totalled, you're out that money.
What area are you in? Perhaps they'd like to sell 2 vans this month!
Cheers,
Marinite
I was originally looking at the EXL R&N also... but after trying to figure out how to install a bluetooth that would work well in the EXL, the cost came to nearly the same - without the decent system, after installation and all. This was in the Spring so maybe things have changed but the factory installed bluetooth was cutting off the nav system when the phone would ring.
For $20ish more, I could get the Touring - easy enough to sway me. Plus, I didn't want to pay full price plus installation on items I'd only be using for 36 mo.
Cheers,
Marinite