Sorry maferna. At least you got a nice vehicle and have the right attitude about your deal. One can drive themselves crazy monitoring what happens to the incentives on a vehicle that they purchased or leased after the fact. You did the best that you could with the deal that was available at the time. Enjoy your new ride!
Car_man, Where could I find more details on this lease deal (like which models it specifically applies to)? There is a lease offer on Honda’s website for an LX Odyssey but I am looking for an EX. According to previous posts my credit score qualifies me for the 'Super Preferred' rates which I assume includes the 0.00164 money factor you mention. One of the local (Greenwich, CT) Honda dealers sent me an offer for an EX that is around 250 below invoice including destination charge which seems good for this area. They are also advertising a 24 month lease 2007 Odyssey LX for $159.00 per month with $3,499 down (total payments $3,816) with a residual value of $17,843.20. The listed MSRP of $26,240 (corresponds to the Edmunds MSRP including a Destination Charge of $595) so the residual value is 68 percent. I emailed the dealer asking what the money factor is for the LX offer but have not heard back from them today. I think the EX at 0.00164 and 250 below invoice (assuming that's an option) is better that the LX deal but without knowing the exact details yet it's hard to be certain.
Just got a call from the dealer, that I need to go back to sign the contract again. That the bank did not like how it printed out inline, but that the numbers will not change.
Now, this tells me that they don't have the funding yet, and that I may change banks, and get the Honda deal.
Could it be possible, or I am out of luck? I am really upset that they lied to me and that the funding was already done when I asked them...
I am looking at leasing an EX-L but without RES/NAV. Can you give me an idea as to what is a good lease rate assuming excellent credit, 36/mo and 12,000 a year.
Planet Honda on Route 22 in Union. Watch out... they are very good at what they do. The price we agreed to initially was incorrect on their part because they have a doc fee of 289 that is printed on all their paperwork. So we compromised by reducing the vehicle price a little.
I ended up with $1,445 below invoice, $432 per month and $1,200 up front. $595 bank fee is included in the monthly payment.
honda123 I am in Norcal too. What is money factor? What is residual? What dealer? I am probably 3-4 months away from a leasing a touring/nav. My last honda lease was with Hansel in Petaluma. I was very happy with the deal from start to finish and will no doubt start there on my next one.
I also had a 2004 Ody EX w/DVD lease that expires 4/07. I had a "screaming deal" on my 2004 Ody...only $213/mo. I was trying to get in on any "year end" specials on the 2007 model. I just re-leased a 2007 Ody EX (no DVD...can only get it now on the EX-L trim line) for $330/mo including tax (in WI) for 36 mo, 15,000 mi/year. I got it for $735 below invoice with a MF of .00164 (Honda's deal thru year end); the residual is now at 58%. Looks like there are still some deals out there, but you only have a day to get them!!
Reading this forum helped me know how hard to squeeze. I was able to lease an 07 EX-L W/O NAV or RES for my wife, 36 MO/15K a year for $385 plus Sales Tax 6%. Total payment $408 a Month. Out of Pocket $645, for first months payment and tag charge. No hassle at Ed Morse in Palm Beach Fl. At the same time I purchased an 07 LX for myself (30K miles a year) for $23269.00 plus tax and tag. I had the 04,05,06 LX so I just got the 07 without paying much attention to the EX-L. Now that both vans are in the driveway, I'm wondering "Why does SHE get the EX-L"
Thanks for all of the information everyone has posted. It sure helped last night when negotiating. I ended up walking away from this deal last night: '07 Touring w/ Nav and RES, window sticker of $42,000, 36M/12K, Residual of $21,432, AdjCap $34,800, $805 down. $510p/m + $46tax. Total $556. The $34.8k was $2.5k less than the Costco price. Reading all the previous posts, I felt I should have been around $525p/m. Deal is good through the 2nd. We'll see if they call back. Was $556 the deal to take?
Where is the MF of 0.00164 found? The sales mgr never heard of this deal from Honda. When estimating "special" lease payments on the Honda website, the MF calculates out to approx. 0.00202 (I think!).
Window sticker of $42,000? That's interesting since the MSRP is less than 40K.
Cap cost is a good number and the residual sounds about right. Taxes seem very high but that's local and may in part account for a number higher than you'd like.
$510 x 36 = $18,360. Add that to the residual and you get $39,732. I would think that you could buy it and pay less overal even if you financed it for 60 months.
Thanks for the comment. I'm sure that my taxes are much higher here in Seattle than yours. The $42k sticker included the adjusted market value of $2k plus the pro package etc.
If I purchased for 60, I would be paying just over $42k. 60 months at ~$700 or 36 months at $556 and a new car in Jan of 2010 (which is the primary reason I lease) rather than trying to trade something in with 24 more months on the books - the lease still seems more attractive.
The reason I walked was that the sales manager was very inconsistent with his MF explanation. It was very odd.
I'm in the seattle area also and have not enjoyed dealing with local dealers. I have a deal on the table for 31,533 (incl destination) +TTL for a 2007 EXL w/RES & NAV but would have to travel to Southern Cal since there are no BLack/Ivory ODY's around the NW. THe money factor is .00164 but this does not apply for the Touring only EXL models (or so I've been told).
THe numbers look like this for a 36 month lease 12k miles: 34,890 MSRP 31,533 NEGOTIATED (incl destination) 2,500 Total down .00164 Money factor 55% residual
They're still using ADM stickers on Odysseys in Seattle? LOL, I'll have to ask isellhondas about that.
Yeah, sales tax here in Columbus is 6.75%. I understand yours is 9.1% or so.
I financed about 34K for 60 at 4.25% when I bought my '05 Touring R&N (sales tax credit was 100%, hence none was paid). My payments are $631.99 per month.
If he couldn't give you a staight answer to your MF question, you were wise to walk.
Good to know that I'm not the only one not enjoying the experience up here.
I checked your numbers and I came up with $384 p/m w/ tax. $352.50+32.08=384.58. Maybe there are some other factors. This was based on a residual of $19,190.
Maybe somebody else should confirm my numbers, but it looks like your deal is $22 p/m too high. It sounds like we're all being gouged an extra $20+ p/m!
2007 EX (cloth) 3 yrs / 12k miles per year / 60% residual / .00164 MF / $693 out of pocket and a monthly payment of $308 (including tax.) I too had that GREAT 04 deal on the EX with DVD, but with very little out of pocket was able to get a brand new EX for only $19 more per month than I had been paying. I'm considering it a moral victory!!!
2007 EX-L w/RES (don't need nav) $30,500 /incl destination 36 months, 12K miles 57% Residual (only 55% for the same vehicle with Nav) .00164 Money Factor (assumes good credit) $595 Honda Acquisitions Fee I paid the fee and licensing and document costs up front. No sense in paying rent on them.
Things I learned dealing with Honda:
#1 - Shop around to see what money factors dealers are offering, just as you do price. Personal commentary: Honda credit should publish their money factors directly to the public. As a returning lessee, I am VERY disappointed that I had to "discover" a lower money factor. Dealers have to make money and I agree with that, but they should make the money on the price of the car, not financing. #2 - Review your calculations using a lease calculator before you go in to see what numbers are above the line(being financed) and which numbers are below the line (being paid by you). A mix up here will confuse you on your monthly payment amount. #3 - Ask for residual values from each dealer you speak with. Cross check the residuals as well. Mine was "accidently mixed up" twice. Also, make sure you need the extra features, the difference in residual with Nav and no Nav is substantial on the Odyssey. #4 - Stay firm and be patient. Sales people are trying to make a living and may rush you. Just keep calling and working through the numbers.
Just leased a 2007 Odyssey today ... Touring with RES/NAV for 3 years, 12k/yr, 0.00164 Money Factor and 56% Residual. I've seen some other discussions on different Residual %'s for 12k and 15k miles. Does this track for the deal above with what everyone else is getting with the Special Lease that expired today?
Also, dealer tells me that the Residual % on this vehicle goes to 55% tomorrow, but he did not have the new MF. They said they are willing to rework the paperwork if the deal would change substantially in my favor. Anyone know what the new Res % and MF are on the Touring with R/N starting on 1/3/07?
Finally, I was surprised a bit by the $595 "AHFC upfront acquisition fee." It's not disclosed or even defined on the Honda Financial Services website or included in the Lease vs Loan Payment Estimator on the honda.com website. Seems strange that Honda would advertise "no disposition fees" on the Lease page, while not disclosing an upfront $595 fee that the dealer rolled into the price, which increased my payment almost $20/mo. Anyone else surprised by this fee that's not even defined on any Honda or HFS website I can find?
It was Clair Honda in West Roxbury. Signed sealed and DELIVERED!!!! If you're interested, I highly recommend the salesperson (I can't believe I'm saying this!!!!) His name is Evan Smith.
I found this site EXTREMELY helpful while looking for a Honda over XMas ... I just wanted to post my lease deal, out of North Atlanta, GA ... it was on Jan 2, the last day of "Honda Days" ...
Lease numbers can get so confusing, but here is the clearest way I guess to explain it.
EXL-RES $29,348 Cap Cost $595 Honda Motors Lease Acquisition Fee $22 title + lemon law $29,965 Net Cap Cost 57% Resid (on $33,290 MSRP) 0.00164 Cost of Money 12K miles/36 months
Would have been $386 + tax per month; I did it as a sign and drive, so $397 + tax for 35 months.
Just wanted to let people know I ended up closing on this deal without any problem. More than one dealers in NJ had warned me (when I asked them to match the price) that this dealer would back out or change the numbers when I actually went there, but it did not happen. I am very satisfied with my new EX-L w/RES!
Price paid:
$369/month ($395 with NJ 7% tax) 36 months/15K miles $1500 down at signing (incl. all taxes and fees)
I just walked from a Honda dealer in MA after a two hour negotiation on a 36 month lease on an Odyssey EX.
The .00164 money factor is no longer being offered. Honda's "best credit" money factor is now .00285. Also gone is the 60% residual on the EX for tha term and 12k/yr; they were only willing to offer 58% of MSRP
Most interestingly, we could not get our lease payment calculations to agree--their calculation was consistently roughly $30 more. I couldn't tell whether they were honestly confused or playing, although I got the distinct feeling that in the end, they thought they had done all they could. I got them to move from $300 per month with $750 down to $260 per month (before 5% MA sales tax) with $613 down, both by dropping the price and increasing my trade allowance from $3800 to $4900. The down payments simply reflected $83 registration, $289 doc fees and first month's payment. They refused my final offer of $750 down, $230 per month, with the iPod adapter and cargo net thrown in.
As to the payment differences, for example despite our agreeing on the following inputs:
Term: 36 months Net Capital Cost: $21,788 (reflects only $4900 trade and $595 bank fee--no other fees were capitalized) Residual: 58% of MSRP of $29,290 (which includes Dest.) Money Factor: .00285
I get a payment of $243.84 plus tax. They got roughly $275 plus tax. What am I missing?
Hey Andrew. The aforementioned special lease money factor was available on all 2007 Honda Odyssey models, regardless of trim level. It is a moot point now anyhow because Honda decided not to continue this promotion for the month of January. In its new incentive program, it replaced the special lease with 0.9% financing for up to 3 years and 3.9% for 4 or 5 years.
Hi maferna. If your deal was never officially accepted by the bank that you were supposed to lease it through before, it may have been possible to go back to the dealer and have it rewritten using Honda Finance. You need to ask your dealer if this is a possibility. As long as they weren't making any back-end money on your other lease, I don't see why the source of your lease would matter to them.
Hi jchernov. I would be happy to estimate what this van's lease payment should be for you. In order for me to do so I need you to provide me with its full MSRP and approximate selling price. You can look up the MSRP of the model that you want by visiting the following section of this site: Edmunds.com - New Vehicle Pricing. You should be able to get an idea of what sort of price you should pay for one right now by visiting the following discussion: "Honda Odyssey: Prices Paid & Buying Experience". Once you have these prices, let me know and I'll crunch some numbers for you. For now I can tell you that Honda Finance's latest buy rate lease money factor and residual value for a 36 month lease of a 2007 Honda Odyssey EX-L without the entertainment or DVD options with 12,000 miles per year are .00275 and 57%, respectively.
Wow, two brand new Odysseys at the same time, theoxcorp. You must really like this model. I have to admit it is a pretty nice van. Congratulations on your new rides. Thanks for taking the time to share the details of your deals with everyone. Enjoy.
Hi h8byngcars. The special .00164 money factor that Honda was offering on the 2007 Odyssey in December was definitely real. It is a moot point now anyhow because Honda decided not to extend this offer into January. It replaced it with 0.9% to 3.9% special financing. If you want to lease an '07 Odyssey now, you will have to use Honda Finance's standard money factor of .00275 (36 months for "Super Preferred" tier customers who pay a security deposit).
Adjusted market value on an Odyssey?!?! You were right to walk away from that deal, h8byngcars. There's no way that anyone should have to pay over MSRP for an Odyssey right now. Most consumers are getting discounts on it. Make sure to stop by the following discussion to see how much other community members have paid for similar vans lately: "Honda Odyssey: Prices Paid & Buying Experience". If a dealer tried to charge me that much for an Odyssey, it would leave a bad taste in my mouth and I personally would shop around for a different dealer.
Unfortunately, Honda Finance is no longer offering lease support on the 2007 Odyssey. It replaced the special lease program that was available on it in December with 0.9% to 3.9% special financing. If you want to lease this van now, you will have to use Honda Finance's standard lease program. Its current buy rate standard lease money factor for a 36 month lease is .00275 for "Super Preferred" tier customers who pay a security deposit at lease signing.
You're right, edb5. Honda decided not to extend the Odyssey's special lease program into January. If I was in the market for this van, I would be annoyed that the money factor just skyrocketed and its residual values fell, so much so that I might hold off on leasing to see if Honda decides to reintroduce lease support some time in February or March.
Using the prices that you mentioned, an MSRP of $29,290 and a capitalized cost of $21,788, I estimate that this car's 36 month, 12,000 mile per year zero down, pre-tax monthly payment should be around $243.84 just like you calculated. It is difficult to say why the dealer came up with a different payment, but I wouldn't agree to lease from them until I knew why there was a difference.
Thanks for the reply, Car_man. I had asked for the best money factor, but also wanted no security deposit (I have great credit, so I thought I might be able to get this). I didn't realize they had given me the best rate without security deposit and that .00275 with security deposit is possible.
As to their weird lease payment calculation, when I overhead the backroom guy tell the out front salesman that the interest portion is "complicated," when trying to explain the difference, I became less certain that they were being straight with me. In fact, if one were to compute the interest exactly (e.g. amortize the net capital cost over the period of the lease), the interest fee would be slightly less, not more, than the approximation all leases use (that the amount halfway between the net capital cost and residual is borrowed at a fixed rate for the period of the lease).
The only good faith explanation I can come up with is that somehow they were not entering the destination charge into their "program" when computing MSRP for the purpose of the residual, and they were similarly not including the acquisition fee in the net capital cost, even though they were telling me it was included in the number they were showing me. Those changes about account for the difference (at the money factor in question, every $1000 drop in the difference in net capital cost over residual leads to roughly a $30 drop in monthly lease payment).
Regardless, I think your advice to wait a bit is excellent, and it was that thought that ultimately drove me from the dealer.
The MSRP was listed at $31,095 and the invoice at $28,003. Last month, I got some internet price quotes of apx $28,250 and lease quotes of $379. Unfortunately, we were away for the holidays and could not get anything done at that time. In any event, I greatly appreciate the assistance in determining how to determine an appropriate lease rate.
Thanks for the reply Car_man. This deal actually worked out rather well in the end. Like I said, the second sticker w/ AMV was $42,360. The adj cap cost I ended up with was $34,650. Thanks to this forum and learning of the 164 MF (which was still offered on the 2nd), I ended up with an '07 Touring, Nav/RES for $438.38 plus $40 in tax for 36M/12k, 56% res, and $0 down. The amazing thing is that this payment is $50 less p/m than my '06 Acura TL that was $32k. Thanks again to all who posted their experiences and advice.
h8byngcars is now dunbyngcars (at least for 3 years!)
This forum really helped me. I leased 2007 Odyssey EXL with DVD on 1/2/07, which was the last day that they had the money factor special of .00164 / residual value of 57%. I was able to negotiate a cap cost of $30k ( which is below invoice) i put $2grand total down, and a monthly pymt of $355. 12k miles a year for 36 mos. I had a 2004 ody exl-dvd coming off lease... i think its a pretty good deal...?
To finish my saga, I leased an Odyssey EX last night at a dealer that knew how to calculate lease payments. The numbers for the 36 month lease with a 12k/year mileage limit:
Negotiated Car Price: $25,000 Dest. Charge: $595 Gross Cap. Cost: $25,595 Trade allowance ('98 Honda EX): $4,200 (a fair price) Cash Cap. Reduction: $250 Net Cap. Cost: $21,145 Residual: $16,988.2 (58% of $29,290 MSRP) Money Factor: .00285 (Honda Preferred wo/security deposit) Monthly Payment: $224.15 plus 5% tax of $11.21
Cash down payment: $1507 ($250 cash cap. cost reduction, $222.50 for 5% tax on trade and reduction, $235.16 for 1st month payment, $318 for TTL + Reg., $481 for Honda iPod Adapter + Cargo Net accessories)
Leased a new honda EX with 00164 money factor for 36 months 316 in new york nothing upfront except ny tax Negotiated Car Price: $25780.40 Dest. Charge: $595 Gross Cap. Cost: $26375 Residual: $17574 (60% of $29,290 MSRP) Money Factor: .00164 ( Monthly Payment: $316.56
Cash down payment: $1471( $954.43 for 8.375% tax on full lease amount of 11396.16, 316.56 for 1st month payment, 150 for TTL + Reg.
Thanks for the additional information, jchernov. Let's work up a sample lease payment on the van that you are interested in using the latest lease program. According to my calculations, if you were to lease a 2007 Honda Odyssey EX-L without RES/NAV with an MSRP of $31,095 and a selling price of $28,250 through Honda Finance right now for 36 months with 12,000 miles per year, your zero down, pre-tax monthly payment should be around $419. This payment assumes that you qualify for Honda Finance's top credit tier and pay a security deposit at lease signing.
Thanks Car man. In light of the increased cost of leasing, I am debating between waiting for Honda to offer lease support again or make an outright purchase.
I live in Central Florida and almost every dealership I've contacted to try to get into the 2007 Odyssey EX-L w/RES is coming at me with $525+ as my monthly payment for 12K/36M. They all agree that they can give me $29K as selling price and I am planning to put $3K down. Folks on here are getting deals in the $350 range - why not me? I tried today and got a number in the $500s. Is it a regional thing? What am I doing wrong? Why is everyone able to get this done and not me? HELP!!!! :confuse:
I will be turning in my leased 04 EX Odyssey in a few weeks. My radio stopped working and according to the dealer it was due to coins being put in the cd player causing the radio to malfunction and stop working altogether (no power). Should I or can I repair the radio with a less expensive aftermarket radio rather than paying for the expensive OEM radio from the Honda dealer?
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Where could I find more details on this lease deal (like which models it specifically applies to)? There is a lease offer on Honda’s website for an LX Odyssey but I am looking for an EX. According to previous posts my credit score qualifies me for the 'Super Preferred' rates which I assume includes the 0.00164 money factor you mention. One of the local (Greenwich, CT) Honda dealers sent me an offer for an EX that is around 250 below invoice including destination charge which seems good for this area. They are also advertising a 24 month lease 2007 Odyssey LX for $159.00 per month with $3,499 down (total payments $3,816) with a residual value of $17,843.20. The listed MSRP of $26,240 (corresponds to the Edmunds MSRP including a Destination Charge of $595) so the residual value is 68 percent. I emailed the dealer asking what the money factor is for the LX offer but have not heard back from them today. I think the EX at 0.00164 and 250 below invoice (assuming that's an option) is better that the LX deal but without knowing the exact details yet it's hard to be certain.
Andrew
Thank you
I need your help!
Just got a call from the dealer, that I need to go back to sign the contract again. That the bank did not like how it printed out inline, but that the numbers will not change.
Now, this tells me that they don't have the funding yet, and that I may change banks, and get the Honda deal.
Could it be possible, or I am out of luck? I am really upset that they lied to me and that the funding was already done when I asked them...
Thanks in advance,
(36 months/15K mi)
$395 monthly and $1500 out of pocket. Prices include all taxes/fees. MF 0.00164, Residual 55% per the special offer.
What do you guys think? Looks like there is a need to push these vans out before the end of the year!
I ended up with $1,445 below invoice, $432 per month and $1,200 up front. $595 bank fee is included in the monthly payment.
Good Luck.
I am planning to lease Honda Odyssey EXL 2007.
Dealer is offering me With $2000.00 drive off (down), 36 payments of $343.00 plus tax based on 12,000 miles per year.
I live in Norther California. Can anyone let me know whether it is a good deal to sign.
Thanks in advance.
I am in Norcal too. What is money factor? What is residual? What dealer? I am probably 3-4 months away from a leasing a touring/nav. My last honda lease was with Hansel in Petaluma. I was very happy with the deal from start to finish and will no doubt start there on my next one.
Cap cost is a good number and the residual sounds about right. Taxes seem very high but that's local and may in part account for a number higher than you'd like.
$510 x 36 = $18,360. Add that to the residual and you get $39,732. I would think that you could buy it and pay less overal even if you financed it for 60 months.
If I purchased for 60, I would be paying just over $42k. 60 months at ~$700 or 36 months at $556 and a new car in Jan of 2010 (which is the primary reason I lease) rather than trying to trade something in with 24 more months on the books - the lease still seems more attractive.
The reason I walked was that the sales manager was very inconsistent with his MF explanation. It was very odd.
I'm in the seattle area also and have not enjoyed dealing with local dealers. I have a deal on the table for 31,533 (incl destination) +TTL for a 2007 EXL w/RES & NAV but would have to travel to Southern Cal since there are no BLack/Ivory ODY's around the NW. THe money factor is .00164 but this does not apply for the Touring only EXL models (or so I've been told).
THe numbers look like this for a 36 month lease 12k miles:
34,890 MSRP
31,533 NEGOTIATED (incl destination)
2,500 Total down
.00164 Money factor
55% residual
$372/month + $35 tax = 407
LOL, I'll have to ask isellhondas about that.
Yeah, sales tax here in Columbus is 6.75%. I understand yours is 9.1% or so.
I financed about 34K for 60 at 4.25% when I bought my '05 Touring R&N (sales tax credit was 100%, hence none was paid). My payments are $631.99 per month.
If he couldn't give you a staight answer to your MF question, you were wise to walk.
Good to know that I'm not the only one not enjoying the experience up here.
I checked your numbers and I came up with $384 p/m w/ tax. $352.50+32.08=384.58. Maybe there are some other factors. This was based on a residual of $19,190.
Maybe somebody else should confirm my numbers, but it looks like your deal is $22 p/m too high. It sounds like we're all being gouged an extra $20+ p/m!
3 yrs / 12k miles per year / 60% residual / .00164 MF / $693 out of pocket and a monthly payment of $308 (including tax.)
I too had that GREAT 04 deal on the EX with DVD, but with very little out of pocket was able to get a brand new EX for only $19 more per month than I had been paying. I'm considering it a moral victory!!!
2007 EX-L w/RES (don't need nav)
$30,500 /incl destination
36 months, 12K miles
57% Residual (only 55% for the same vehicle with Nav)
.00164 Money Factor (assumes good credit)
$595 Honda Acquisitions Fee
I paid the fee and licensing and document costs up front. No sense in paying rent on them.
Things I learned dealing with Honda:
#1 - Shop around to see what money factors dealers are offering, just as you do price. Personal commentary: Honda credit should publish their money factors directly to the public. As a returning lessee, I am VERY disappointed that I had to "discover" a lower money factor. Dealers have to make money and I agree with that, but they should make the money on the price of the car, not financing.
#2 - Review your calculations using a lease calculator before you go in to see what numbers are above the line(being financed) and which numbers are below the line (being paid by you). A mix up here will confuse you on your monthly payment amount.
#3 - Ask for residual values from each dealer you speak with. Cross check the residuals as well. Mine was "accidently mixed up" twice. Also, make sure you need the extra features, the difference in residual with Nav and no Nav is substantial on the Odyssey.
#4 - Stay firm and be patient. Sales people are trying to make a living and may rush you. Just keep calling and working through the numbers.
Also, dealer tells me that the Residual % on this vehicle goes to 55% tomorrow, but he did not have the new MF. They said they are willing to rework the paperwork if the deal would change substantially in my favor. Anyone know what the new Res % and MF are on the Touring with R/N starting on 1/3/07?
Finally, I was surprised a bit by the $595 "AHFC upfront acquisition fee." It's not disclosed or even defined on the Honda Financial Services website or included in the Lease vs Loan Payment Estimator on the honda.com website. Seems strange that Honda would advertise "no disposition fees" on the Lease page, while not disclosing an upfront $595 fee that the dealer rolled into the price, which increased my payment almost $20/mo. Anyone else surprised by this fee that's not even defined on any Honda or HFS website I can find?
Lease numbers can get so confusing, but here is the clearest way I guess to explain it.
EXL-RES
$29,348 Cap Cost
$595 Honda Motors Lease Acquisition Fee
$22 title + lemon law
$29,965 Net Cap Cost
57% Resid (on $33,290 MSRP)
0.00164 Cost of Money
12K miles/36 months
Would have been $386 + tax per month; I did it as a sign and drive, so $397 + tax for 35 months.
Price paid:
$369/month ($395 with NJ 7% tax) 36 months/15K miles
$1500 down at signing (incl. all taxes and fees)
The .00164 money factor is no longer being offered. Honda's "best credit" money factor is now .00285. Also gone is the 60% residual on the EX for tha term and 12k/yr; they were only willing to offer 58% of MSRP
Most interestingly, we could not get our lease payment calculations to agree--their calculation was consistently roughly $30 more. I couldn't tell whether they were honestly confused or playing, although I got the distinct feeling that in the end, they thought they had done all they could. I got them to move from $300 per month with $750 down to $260 per month (before 5% MA sales tax) with $613 down, both by dropping the price and increasing my trade allowance from $3800 to $4900. The down payments simply reflected $83 registration, $289 doc fees and first month's payment. They refused my final offer of $750 down, $230 per month, with the iPod adapter and cargo net thrown in.
As to the payment differences, for example despite our agreeing on the following inputs:
Term: 36 months
Net Capital Cost: $21,788 (reflects only $4900 trade and $595 bank fee--no other fees were capitalized)
Residual: 58% of MSRP of $29,290 (which includes Dest.)
Money Factor: .00285
I get a payment of $243.84 plus tax. They got roughly $275 plus tax. What am I missing?
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Using the prices that you mentioned, an MSRP of $29,290 and a capitalized cost of $21,788, I estimate that this car's 36 month, 12,000 mile per year zero down, pre-tax monthly payment should be around $243.84 just like you calculated. It is difficult to say why the dealer came up with a different payment, but I wouldn't agree to lease from them until I knew why there was a difference.
Car_man
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As to their weird lease payment calculation, when I overhead the backroom guy tell the out front salesman that the interest portion is "complicated," when trying to explain the difference, I became less certain that they were being straight with me. In fact, if one were to compute the interest exactly (e.g. amortize the net capital cost over the period of the lease), the interest fee would be slightly less, not more, than the approximation all leases use (that the amount halfway between the net capital cost and residual is borrowed at a fixed rate for the period of the lease).
The only good faith explanation I can come up with is that somehow they were not entering the destination charge into their "program" when computing MSRP for the purpose of the residual, and they were similarly not including the acquisition fee in the net capital cost, even though they were telling me it was included in the number they were showing me. Those changes about account for the difference (at the money factor in question, every $1000 drop in the difference in net capital cost over residual leads to roughly a $30 drop in monthly lease payment).
Regardless, I think your advice to wait a bit is excellent, and it was that thought that ultimately drove me from the dealer.
h8byngcars is now dunbyngcars (at least for 3 years!)
I was able to negotiate a cap cost of $30k ( which is below invoice)
i put $2grand total down, and a monthly pymt of $355. 12k miles a year for 36 mos.
I had a 2004 ody exl-dvd coming off lease... i think its a pretty good deal...?
what dealer did you go to?
Negotiated Car Price: $25,000
Dest. Charge: $595
Gross Cap. Cost: $25,595
Trade allowance ('98 Honda EX): $4,200 (a fair price)
Cash Cap. Reduction: $250
Net Cap. Cost: $21,145
Residual: $16,988.2 (58% of $29,290 MSRP)
Money Factor: .00285 (Honda Preferred wo/security deposit)
Monthly Payment: $224.15 plus 5% tax of $11.21
Cash down payment: $1507 ($250 cash cap. cost reduction, $222.50 for 5% tax on trade and reduction, $235.16 for 1st month payment, $318 for TTL + Reg., $481 for Honda iPod Adapter + Cargo Net accessories)
Negotiated Car Price: $25780.40
Dest. Charge: $595
Gross Cap. Cost: $26375
Residual: $17574 (60% of $29,290 MSRP)
Money Factor: .00164 (
Monthly Payment: $316.56
Cash down payment: $1471( $954.43 for 8.375% tax on full lease amount of 11396.16, 316.56 for 1st month payment, 150 for TTL + Reg.
Car_man
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Car_man
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