2013 and earlier-Honda Odyssey Lease Questions

chipsnsalsa

In order to terminate your lease early, you probably need to do the following: 1)call Honda Financial Services and inquire about terminating your lease a few months early. They will tell you what you need to do. I did this for my Jeep Grand Cherokee when we were getting into our '04 Odyssey 24mo lease. I just needed to pay the remaining payments in a lump sum, schedule an appointment with a 3rd party appraiser (scheduled through Chrysler), and then just drop it off at a local dealer... Under this scenario, you will still have to pay the remaining payments that you are obligated to. The only way of avoiding these payments is to get into another vehicle and either 1) do a traditional 'trade in' with the Odyssey towards the new vehicle, and roll any negative equity into another lease/loan (you will need to get your payoff from HFS and compare to the trade value the dealer is giving you) or 2)Get a new vehicle and the dealer might be willing to give you the remaining $800 - $1200 towards the remaining lease payments. With this, you are really just fulfilling your lease obligation and fast forwarding to the end of lease process a few months early. This would probably be easier to do if you were getting another Honda since it would be one-stop-shopping. But for starters, call Honda Financial Services with any questions.

nifer76

Thanks for the advice and information. We are still under mileage, just over 22,000 no concern there. I think I am starting to see that turning it in would be the easiest. Guess I will look into financing for a new one. No more leases for us.

Thanks again

sirius2

This whole conversation makes no economic sense. It seems like deferring the pain of the transaction is the most prudent option. Psychologically it may be more comfortable to cut and run but add up the costs of doing so and see for yourself. Most bad lease deals usually get solved with purchasing the vehicle in a long term finance.

jpmri5

i live on long island, ny and received the following---

a 2006 exl, no dvd for $320/ month for 42 months.
i traded in a 2000 nissan quest that i was having trouble with for $5,500 to the dealer.
My total payment will be 320 for 12,000 miles/year.
the selling price 1s $29,258
i applied the trade as downpayment(taxes and all other costs)
this is my first lease.
is this deal okay
?
thanks, jeff

19965

It's actually recommended that you put no money down on a lease. If something were to happen and the van were totalled, especially in the first few months, you would be completely out that money. For that reason, it's recommended that you put the equity from your trade into a high yield savings account and use a bit of that money every month to cover the payment difference. I'm guessing your payment would increase about $140.

Also there are a couple of really good articles here about leasing you should read before you close the deal. I'm not sure how to link them here but a bit searching will surely pull them right up for you.

Others may have more to add. Good luck!!

CarMan@Edmunds

Hi everyone. Honda is scheduled to publish its new March lease program today. I should have an opportunity to take a look over within the next day or two. I would appreciate it if those of you who still have questions for me about leasing one post a note for me in this discussion later on this week. I'll be happy to answer any questions that you have on the new program then. Thanks.

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sirius2

Thanks. Be sure to post the Odyssey info ASAP.

stonebriar1

Info needed on 2006 EX-L with DVD March leasing stats. Info I have. Bay area, California based. Will do 36 months, 12k miles/year lease. Credit score 750+. MSRP $32,395, Have quote for $29796 which includes destination of $550.
Looking for residual and MF numbers, your ballpark at a monthly number, and any other key info for a March lease decision.

[Deleted User]

Well, I hope I'm wrong, heard the residuals changed of course, but the money factor still stinks at .00265

stonebriar1

you said you heard the residuals changed. what did you hear it was, and what did you hear it changed to?

[Deleted User]

We're looking at the EX-L RES. On a 36 month, 12K miles/year lease the residual is 58%, so only down a percentage point from last month.

love2driveinct

Our 24-month lease of an 04 Ody EX-L will be up soon and our vehicle inspection is scheduled for next week (although I am thinking of changing it). This is our first lease, so we have not been through this process before. Has anyone else been through the inspection with a Honda-leased vehicle? The dealer that we leased it from made sure to tell us how much more "forgiving" Honda finance is than most leasing companies, but is this really true? Will they nitpick every little tiny scratch and dent and spot on the carpet?

Would it be worth my while to pay my local body shop to take care of any obvious scratches or dents? I am already taking it in to have the rear bumper replaced because of a small slice in it.

I'd really like to hear from anyone who has been through this process. I am starting to worry about it more than I thought I would!

Thanks.

[Deleted User]

Go back and look at post #91 in this thread, it mentions the inspection and Honda giving a $1500 allowance. We haven't scheduled ours yet, still trying to decide what to do.

BTW, did you end up getting the MDX?

love2driveinct

Ahh... nice to see that someone remembers me! Yes, we did get the MDX, Touring w/Nav & DVD in Red. We're picking it up on Saturday and I can't wait! I feel like a little kid here. I am just thrilled about the vehicle.

Ironically enough, it was actually CHEAPER to lease the MDX than the Ody. We test drove the Ody (EX-L w/Nav & DVD) and priced it out and it was about $25 more a month for a less expensive vehicle with fewer bells and whistles, and I can only imagine what the Ody Touring would have been. But, I will acknowledge that it is a more "practical" vehicle and cheaper to fill up, lol.

Thanks for the thread number. I checked that out, and it reminded me that I should probably read that lease agreement again. I was just hoping that there were people here who had actually gone through the inspection process with Honda. The body shop guy said that the inspectors would typically assign a cost of $500 for a 5-inch scratch, for example. I will confess that I don't examine the exterior that regularly, and since it's that light bluish color, it shows very little so I wouldn't necessarily notice if something had happened. The slice in my bumper was a big surprise to me -- someone must have gotten me while I was parked in a lot because I think I would have remembered doing that! Anyway, I think I will get it washed and do a once-over.

I am obviously hoping that the turn-in process goes well since we still have the Pilot and now the MDX, so I am attached to AHFC for a few more years, lol.

stonebriar1

Car Man,

Any news on the Honda March lease program? Residuals, MF's, etc. Looks like there's lots of interest in all the Honda leasing forums

tariq2

can u tell us the price of the mdx out the door. I am interested in the monthly payment.
I am also comparing MDX to Ody. I like the practicality idea with the ody but MDX looks and feels better.

mtnsun

Navigation and Entertainment. My wife wants a minivan! You helped me lease my 2001 Subaru Outback, which I appreciated (I purchased it after the lease expired). Now I need to lease (or buy) a minivan. For the March program, what are the best mf and residual values I can expect for a 12K and 15K lease of a EX-L with Navigation and Entertainment? Do you think it will get better or worse in the near future? Please and TX. Regards, Mtnsun.

love2driveinct

Actually, I don't have the paperwork with me since I haven't picked it up yet (long story), but $40K was the selling price and the monthly payment is $588 ($555 before taxes). MSRP is $44815. Our lease is for 36 months, 15k miles/yr. There are some fees rolled into it so we only had to give them first month's payment and registration fee upfront.

The 06 Ody EX-L w/Nav & RES priced out at $607 a month ($573 before taxes) for the same lease. The selling price was $33711 (plus 595 acq fee), MSRP $35145.

I know it almost seems unreal that the payment could actually be LOWER on the MDX, but it was. I don't know how much you understand about leasing, but here are the reasons why:

1) Money Factor was better for MDX: .00140 Ody: .00292
2) MDX sold for so much less than MSRP (below invoice, actually) and Ody was priced only a little below MSRP.

Lease payments are based on two things: depreciation and finance charges. The finance charges are calculated using the money factor, which is basically just an interest rate. The depreciation is the difference between your final selling price and the residual value at the end of the lease. So, the HIGHER the residual value and the LOWER your selling price, the less total depreciation you have to pay!

The reason why the MSRP is important is because that is how the residual value is calculated. So, although the MDX had a residual value percentage of 54% and the Ody 55%, the residual value of the MDX was higher because it was based on MSRP.

Interestingly enough, the same thing happened to us last summer when we were looking at leasing a CR-V. We ended up with a Pilot for the same lease payment!

Keep in mind that our local Honda dealer has no-haggle set pricing, so getting the Ody for a lower selling price somewhere else would have obviously lowered the payment a bit.

I can explain it in more detail if necessary, but that is the gist of it. HTH

lauraz

Hi, everyone--
We have an 03 Ody in excellent shape but with a lot of miles (62K at the moment) and know we will purchase our car at the end of the lease (1.5 years to go). Although we negotiated more miles than usual (15K/year for 5 years), an extended service agreement, and other goodies, we still ended up with an agreement at MSRP (28,800).

My question: can we pre-pay the lease early and negotiate the end price down because it is early? I know there will be LOTS of these cars coming on the market afterlease at the same time, and wonder if beating everyone else to the punch might buy us some leeway. Or are we stuck with the initial final price agreed to?

Thanks,
A Leasing Novice

odvozz

Car Man (or others),
Could I get your take on MF, residual, and ideas on monthly payment on a 2006 EX-L with DVD March leasing stats?
I'm in the Chicago burbs, looking at 36 months, 15k miles/year lease. Credit score 750+. MSRP $32,395, I've been quoted $29750 including destination of $550. I'm not planning on putting any money down.
Thanks for your help!

[Deleted User]

I talked with our local dealer today regarding a "pre-approval" letter we received from Honda. Basically saying come lease or buy a new one early. Anyway, he mentioned hearing some buzz about a lease offer coming mid-April as Honda wants to keep the many people set to return their Odysseys around that time. Anyone else hear anything like this? Car_man? That would be nice as that's when ours is up.

tariq2

Gross Caitalized cost $32756
CApitalized codt reduction ...N/A
REsidual Value...16238
Rent charge...6267

Lease payments..468.88/month
Paid out of pocket: 468.88
12k/year

Selling vehicle price..31276(includes everything except tax) ( I think tax is not included but than I could not figure out where the tax went). Could it be possible that the tax is included in the Agreed upon value of the vehicle.

sirius2

I just got a letter from Honda today. Seems they're willing to extend my lease for a period of my choosing between 6 and 24 months. No mention what the residual would drop to at these dates, but the payment would be the same. Any advice from any of the lease gurus here? I've been thinking about buying the vehicle, but this might work out okay too, and I'm thinking of checking out the 1 & 2 residuals but then I just may give it back in a couple years. But would I be better off just getting a 2006 with a warranty?

CarMan@Edmunds

Hello stonebriar1. According to the latest information that I have seen, if you were to lease a 2006 Honda Odyssey EX-L with the DVD system but 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 .00265 and 58%, respectively. Using these numbers, an MSRP of $32,395, and a selling price of $29,796, I estimate that this van should have a zero down, pre-tax monthly payment of around $435.

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CarMan@Edmunds

Unfortunately, dad23, the info that you heard is correct. Honda still isn't providing any sort of lease support on the Odyssey. Its standard 36 month buy rate money factor for consumers who pay a security deposit and qualify for its Super Preferred credit tier is .00265.

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CarMan@Edmunds

Hi love2driveinct. I have personally leased a number of vehicles, both Hondas and Acuras, through Honda Finance. In all cases, the lease-end inspection of my vehicle was very lenient. Honda Finance doesn't nickel and dime its lessees to deal, so you don't have anything to worry about unless your van is in really rough shape. Definitely do not pay to have any dents or scratches fixed until after your initial inspection. There is a good chance that you will be charged for fewer of them than you think, if any at all.

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CarMan@Edmunds

Hi stonebriar1. I have seen Honda's latest and greatest lease program for the Odyssey and would be happy to tell you what it is like. However, in order for me to do so I need you to tell me the exact model that you want, how long you want to lease it for, and how many miles per year you need to be able to drive it.

Car_man
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CarMan@Edmunds

Hi again mtnsun. I am glad to hear that you enjoyed your Outback so much. If you were to lease a 2006 Honda Odyssey EX-L with navigation and the entertainment system 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 .00265 and 54%, respectively assuming that you pay a security deposit and qualify for its Super Preferred Credit tier. The 12,000 miles per year residual value for an otherwise identical lease should be 56%.

It is difficult to say what Honda's lease program for this model will be like in the future. It will depend upon what Honda's sales are like. The fact that Honda is advertising a lease on this van, even if it is an unsupported one, is an indication of a chink in its armor. It wasn't providing any sort of support on the CR-V for a long time. Then a few months ago it started advertising an unsupported lease on it. Before long, it introduced a special lease program on the CR-V. I'm not saying that this will necessarily happen with the Odyssey, but it might. If Honda does not introduce lease support on it, it will eventually become more expensive to lease as its residual values drop.

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CarMan@Edmunds

Greetings odvozz. If you were to lease a 2006 Honda Odyssey EX-L with the DVD system, but without navigation 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 .00265 and 56%, respectively assuming that you pay a security deposit. Using these numbers, an MSRP of $32,395, and a selling price of $29,750, I estimate that your zero down, pre-tax monthly payment should be around $450.

Car_man
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CarMan@Edmunds

Hi dad23. I have not personally heard any rumors about a special lease program coming out on the Odyssey but I would not be surprised if Honda introduced one. The fact that Honda is advertising a lease on this van, even if it is an unsupported one, is an indication of a chink in its armor. It wasn't providing any sort of support on the CR-V for a long time. Then a few months ago it started advertising an unsupported lease on it. Before long, it introduced a special lease program on the CR-V. I'm not saying that this will necessarily happen with the Odyssey, but it might.

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CarMan@Edmunds

Hi sirius2. If you leased your Odyssey at the right time, chances are that you got a heck of a good deal on it. Honda's lease program was much more attractive on this van several years ago than it is today. It would probably cost you much more to lease a new one than it would to extend your current lease for a little while. If I was in your situation, I personally would extend my lease and wait to see if Honda introduced a special lease on the current Odyssey some time in the next couple of months.

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sirius2

My payment is $282/month, which is not as great a deal as some around here. I called AHFC and they said my rate was higher since this was my first lease with them. That was disappointing since my credit is sterling. My residual is $17,700 in May 2006 (from a 2003 36 month lease)on my EX. The $282 would be cheaper than a new lease or buying this one out, but it's now a used vehicle out of warranty. The easiest thing to do would probably be to extend and worry about it later, because I don't know what the best way to go is.

sirius2

I called AHFC. My $282 payment breaks down to $170 principal, $16 state tax $95 interest. AHFC will prorate the residual for the number of months I extend the lease. I'm thinking this does NOT look like a good deal. I'm thinking it may be better to buy it at $17,700 at %5 through C.U. or just turn it in and get something else. What am I missing?

kyfdx

Do you want to buy the van? Or, do you want to put off making a decision on buying a car for six months?

If you want to keep the van, you would probably be better off buying it.. You'd be $20/mo. ahead on interest from the very start..

But, if you just want to put off making a decision for 6-12 months, renting the van for $282/mo. is a pretty cheap way to go....

regards,
kyfdx
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chuck20

I received the extended lease agreement today. Anybody else have a take on the actual agreement not containing any language regarding the month-to-month aspect of the offer cited in the accompanying letter from AHFC. Letter states MTM with no penalty just the requirement of one month notice. Agreement still contains Termination Penalty that could be several thousand dollars(all underlined).

I will call be calling AHFC myself but wanted to see what others have come up with on this matter. No issues with AHFC but the agreement should really contain the "out" clause otherwise you are committed to the term of the agreement and all payments. I merely wanted to take the offer to bide some time before making a decision on new Honda or other if they don't show any support.

Thanks
Chuck

mcjazzzy

In regards to the Odyssey..I tried leasing one a few years back and Honda tried to scam me..I work for a car dealership and the figures they gave me didn't add up, I mean the final payment seemed to be a little too high. I don't work in the sales dept so I don't know all the little secrets with the numbers..but my question is how do you convert the lease factor to percent. I think that's where they got me because the percent was is a certain number but they show it on the screen as decimals..but I couldn't figure out the true percentage rate now for all I know they could of tried charging me 7% on a lease when it should be much lower..Is there a figure to convert the decimals to percent on a lease factor?

love2driveinct

Thanks so much for the reply! You have definitely eased my mind a bit.

Actually, the van is in excellent shape overall. (As well it should be, after only 23 months and 25K miles, lol.) There is just the one slice on the bumper, and one of the wireless headphones has a crack in the plastic. I don't think there are any other dents, and the interior is great.

We are considering trying to sell it because the buy-out price is quite a bit lower than what they are going for these days, and we could stand to make a little money (even after paying sales tax). I don't know if it's worth all the trouble, though, lol! :P

[Deleted User]

Does Honda allow you to sell it on your own? It was my understanding that we couldn't sell ours to a third party without buying it first, maybe that's what you mean. Our lease ends in May, with the residual of $21,155. We only have 17,000 miles on it right now so we thought it might be worth a little extra too. Good Luck! How's that MDX treatin ya?

lauraz

Hi, Car_Man--
We have an 03 Ody in excellent shape but with a lot of miles (62K at the moment) and know we will purchase our car at the end of the lease (1.5 years to go). Although we negotiated more miles than usual (15K/year for 5 years), an extended service agreement, and other goodies, we still ended up with an agreement at MSRP (28,800).

My question: can we pre-pay the lease early and negotiate the end price down because it is early? I know there will be LOTS of these cars coming on the market afterlease at the same time, and wonder if beating everyone else to the punch might buy us some leeway. Or are we stuck with the initial final price agreed to?

Thanks,
A Leasing Novice
(same as #170)

mcjazzzy

My question regarding the lease factor hasn't been answered..does anyone know. Please refer to #187. Thanks.

[Deleted User]

If you multiply the money factor by 2400, you get the comparable percentage rate. For example, the current money factor for the Odyssey is .00265 or 6.36%. Same holds the other way, if they quoted you 7%, then divide by 2400 to get a money factor of .00292.

mcjazzzy

Thank you so much, for the longest time I've been asking that and no one seems to know the answer. thanks.

scranda

You convert a money factor to an effective interest rate by multiplying the money factor by 24. For example; a money factor of .0027 multiplied by 24 converts to an interest rate of 6.48%. Hope that helps.

mpgxsvcd

I am going to lease a 2006 Odessey EXL with DVD tomorrow. I have been offered it at Invoice($29,696) instead of the MSRP of $32,945. Are people getting this for less than invoice? However, their lease payments for 36 months and 15000 per year were over $475 per month and that did not include taxes. Shouldn’t it be more like $450 a month? Are dealerships still willing to lease this car for $450 a month for 36 months without anything down? What is the security deposit? Should I have to pay that? Is it refundable?

mcjazzzy

That sounds a little shady..I would look out for that. I've been to several Honda dealerships and they never, ever offered anything at invoice. Make sure that you get a decent lease rate because they can screw you there. For instance, lease rates are not going to be the same as a retail rate, you have to be careful. For example, if they give you a lease rate (which usually isn't in %, it's in decimals) alot of people will not question the configuration..if you take 0.00287 multiply it by 2400 you will get 6.8%. For a retail that is fine, but on a lease it should be less, a lot less, so be careful. Security deposits are not usually refundable unless you have a special arrangement with the dealership. Good luck.

mpgxsvcd

Yea there initial offer was just way to high. I should be able to get the 06 Odyssey with DVD player and no navigation for 36 months, nothing down, and before taxes for $440 a month. Not a bad deal if you ask me! The new Odyssey is an absolutely fabulous car!

mcjazzzy

I'm holding off for the 07's..it may be available in AWD..but when you shop for your vehicle, look out for the lease rate.

mpgxsvcd

Apparently there is a non refundable security deposit of something like $1600! Is that right? That turns a decent lease into something that is a terrible deal. Has anyone leased an 06 Odyssey lately? Did you have to pay this non refundable security deposit?

mcjazzzy

I'm sorry I don't know what they're going for.

mpgxsvcd

Car_Man can you give me any help on this? Should I be able to get the car for about $450 and only pay the first months payment and the security deposit? Is there an aquisition fee and documentation fees? Is the security deposit refundable at the end of the lease?