2013 and earlier-Honda Odyssey Lease Questions

CarMan@Edmunds

Hi everyone. Please use the following discussion to post any questions that you have about leasing a Honda Odyssey. Thanks.

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mi_sat

Anyone know what residual % and interest rate Honda is using on the 2006 Odyssey EX-L for 36 month leases?

Thanks

CarMan@Edmunds

Greetings mi_sat. Honda is scheduled to publish its new September lease program some time today. I should be able to find out what the Odyssey's new program is like within the next day or two. Post a reminder in this discussion for me in a couple of days and I will be more than happy to fill you in on what Honda's new lease program for this van is like. Talk to you soon.

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mi_sat

Car_man,

Thank you for your reply. I will be interested in your information so that I may calculate an estimated lease monthly payment.

I'm not sure how to articulate this question: Does Honda residualize dealer installed options the same way it residualizes the vehicle? I
ve heard that Toyota has a different residual for its options than the vehicle itself.

Looking forward to your input!

CarMan@Edmunds

You're very welcome mi_sat. Unlike Toyota Financial Services, American Honda Finance Corp. allows the full residualization of any factory installed options, though Honda doesn't offer much in optional equipment anyhow. Most of its vehicles come fairly well equipped with standard equipment. I am not sure about its residualization policy for dealer installed options. As far as this van's current lease program goes, if you were to lease a 2006 Odyssey EX-L non-Touring and without the navigation or entertainment systems through AHFC right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00255 and 55%, respectively.

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mi_sat

Thanks again for your valuable information.

My opinion: Honda's finance rate is absurd. 6.1% on a 36 month lease? Yikes. I can get a 60 month car loan at 5.2%. Maybe buying isn't such a bad idea. Payment difference is only about $110/month.

dpav

Car Man - does 12K miles effect the interest rate that much ? 6% for a 36 mo is a bit steep. What about a 39 mo ?

Thanks

mi_sat

Mileage won't affect interest rates, only residuals. The interest rate is dependent upon the cost of funds for Honda Credit plus its markupt. Cost is dependent upon the term structure of interest rates (what various rates are for various bond maturities; a/k/a/ "yield curve").

Given what one can get a car loan from a credit union, I think 6% is too high. But that's just me. Some banks are charging a lot more than that.

CarMan@Edmunds

You're very welcome mi_sat. Most manufacturers' standard finance and lease rates are not very attractive. Honda doesn't need to provide low interest rates on the Odyssey because it sells well enough on its own. Financing this van through an independent bank is not a bad idea.

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CarMan@Edmunds

Dpav, leases' mileage allowances have no impact upon their money factors. Honda finance's standard money factors are exactly the same for 36 and 39 month leases right now, .00255. Its standard factor drops slightly, to .00235, for 42 and 48 month terms.

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dpav

Thanks Car Man -one other question...

What is the residual on a 36 mo lease EX-L thru Honda Finance (or other bank that you have access to) ? Have you seen anything yet ?

Thanks

mi_sat

See message #5 in this chain of messages.

Not many banks leasing -- at least that I am aware of.

wfmud1977

I leased a 2004 Honda Odyssey for 24 months back in August 2004. Is there a way I can get out of the lease earlier, so I can purchased a new 2005 Honda CRV?

gcr01

Do you know the current Base MF, Base Acq Fee and residual for a maxed out 06 Touring Odyssey for 36 mos @ 15,000 per year?

Thanks.

CarMan@Edmunds

You're welcome dpav. If you were to lease a 2005 Honda Odyssey EX-L (non-Touring and without the entertainment or navigation systems) though Honda Finance for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should currently be .00255 and 55%, respectively.

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CarMan@Edmunds

Hello wfmud1977. I am sorry to say that it is usually fairly expensive to get out of leases well before their scheduled end dates. In order to do so, you need to purchase the vehicle that you are currently leasing from the bank that you are leasing it through. It often turns out that it costs more to do so than your vehicle is worth on the open market. Furthermore, many banks expect consumers who end their leases early to still make all, or at least the depreciation portion of their remaining lease payments. As you can see, this can get very expensive.

You can determine approximately how much it will cost you to get out of your current lease by comparing its purchase price to its value on the open market at this time. You should place a call to the bank that you are leasing your vehicle through to find out its exact price. Once you know exactly how much money it is going to cost you to buy your leased vehicle you need to compare it to its current value on the open market. You can find out approximately what your vehicle is worth by looking up its Edmunds.com True Market Value in the Used Vehicle Pricing section of this site. You also may want to stop by the following discussion: "Real-World Trade-In Values". One of our most knowledgeable community members, Terry, frequents that discussion and he is often kind enough to give community members who give him an accurate description of their vehicles with his opinion on their value. Don't forget to check to see if you are still on the hook for your remaining lease payments. The difference between your leased vehicle's current value and how much it will cost you to buy it plus any remaining lease payments that you are obligated to pay will equal the cost of getting out of your lease right now. You may find that you are better off waiting until you are closer to the scheduled end of your lease to get another new vehicle.

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CarMan@Edmunds

Hi gcr01. According to the latest information that I have seen, if you were to lease a 2006 Honda Odyssey EX-L Touring without the entertainment or navigation systems through Honda Finance right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00255 and 59%, respectively.

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skiiiii664

I am looking for an 06 Honda Odyssey EXL with no DVD/nav.

I spoke with a dealer by phone and they sent me the lease worksheets .

1600 down.

595 acquisition fee

3yr/45,000 miles (15k per year).

.20 cents per mile overage.

Money factor is .00265

Vehicle price is 29,260 and the Residual is 19,120 (61%)

It is coming to $429 per month as the total payment.

Does this sound like a good deal?

Thank you in advance .

dpav

Two questions : I'm assuming $429 is before taxes ? and what part of the country are you shopping ?

There arent many banks offering a deal for leasing the Odyssey. HFAC seems to be the "best" relatively speaking. They have a rather high interest rate (6.1) but they make up for it with the high residual values. Most banks have this model at a 58% residual for 12K miles.

skiiiii664

Thank you for your reply.

The $429 includes taxes. That would be my montly payment total.

I am in Florida.

The money factor is showing .00265 and the residual at 61.00%.

I believe the lease is through AHFC.

Thank you again.

CarMan@Edmunds

Hi skiiiii664. The money factor that you were quoted to lease this van looks right to me. This is a good sign because it means that the dealer that you are working with is not trying to mark-up your van's factor to add additional back-end profit to your deal. I cannot give you a complete assessment of this deal through because you never mentioned the selling price or MSRP of the car that you are interested in leasing. These are important numbers for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing this car's selling price in relation to its MSRP you don't know how much of a discount you are getting on it. The second reason is that one needs the selling price and MSRP, including the destination charge, of a vehicle to calculate its lease payment. I would be happy to give you my opinion on this van's selling price and calculate a lease payment using Honda Finance's actual lease program for you if you provide me with these numbers.

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skiiiii664

Hi Car_man-

Thank you for your reply.

The MSRP is 31345.
The Vehicle price is 29258.
There is a 595. acquisition fee
Then there is a 900. cash reduction
It says the net cap cost is 28953.

I look forward to your response.

Thank you for your input.

Skiiiii664

kevinb8

Does anyone know what the buy rate lease money factor and residual value should be on a 2006 Odyssey EX for a 48 month lease with 12,000 miles a year? I will be buying in NY if that makes a difference.

cliff1371

I was at a Dealership today in MA and the deal i was offered for the 06 Odyssey ex'-L with DVD was $2298 down and $360/month. 42 months/52,500 miles.

This seems like a very good deal to me. And i missing something here? I have never leased a vehicle before. This is all very new to me.

If anyone has any suggestions they are greatly appreciated. I'm going back tomorrow morning to finalize deal.

thanks

CarMan@Edmunds

You're very welcome Skiiiii664. It looks as though you are bring given just over a $2,000 discount on this van, which sounds reasonable to me. Let's use Honda's actual lease program to calculate a monthly payment on it and see what we come up with. According to my calculations, if you were to lease a 2006 Honda Odyssey EXL with no DVD/nav with an MSRP of $31,345 and a selling price of $29,258 through Honda Finance right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $405. I did not include a down payment in my calculation because I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your Odyssey would be exactly the same, regardless of whether you had put $900 down, or had made absolutely no down payment at all. If you still want to make a $900 cap cost reduction, it would lower the payment for an otherwise identical lease of this van to around $378. With the waiver of your van's security deposit, these payments would increase to $4010 and $383, respectively.

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CarMan@Edmunds

Hi kevinb8. If you were to lease a 2006 Odyssey EX, without leather, navigation, or the entertainment system, through Honda finance right now for 48 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00255 and 64%, respectively with the payment of a security deposit and Honda Finance's acquisition fee.

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CarMan@Edmunds

Hi cliff1371. Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

I would be happy to give you my opinion of this deal, but you never mentioned the selling price or MSRP of the van that you are interested in leasing. These are important numbers for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing this van's selling price in relation to its MSRP you don't know how much of a discount you are getting on it. The second reason is that one needs the selling price and MSRP, including the destination charge, of a vehicle to calculate its lease payment.

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kevinb8

Car_man,

Thanks for the info, much appreciated. Do you know what the security deposit and acquisition fee should cost me? Thanks again.

sesarj

I am looking for and EX-L w/DVD to lease in Los Angeles. What is an appropriate deal?
MSRP is 32945

Thanks

fish1169

At a dealership in Maryland I am being offered a 36 mo./15K lease of a 2006 Odyssey w/ roof rack for $439.27. This includes taxes, tags and no money down.
I have been given the following info:

sales price: 24556
msrp 25892
residual 62% /$16504
money factor .00325

Is this a good deal?

Thanks

thinkpadman

fish -- that's a terrible deal. they're gouging you badly with the money factor....
i have been offered an '06 LX for $365/mo, including tax.... purchase price around $24K, and the Honda Money Factor is .00265. there's still room for dealing even with this deal.....

hope that helps -

sesarj

Car Man,

I am looking for a Odyssey EX-L w/ RES in LA, CA. What is the current Honda financing lease terms? Money factor and residual.

Thanks

CarMan@Edmunds

You're welcome kevinb8. I believe that Honda Finance charges a security deposit equivalent to your vehicle's monthly payment rounded up to the nearest $25 increment. Its lease acquisition fee is currently $595.

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CarMan@Edmunds

Greetings sesarj. I would be happy to give you an idea of what sort of lease payment you can expect on the van that you are interested in. However in order for me to do so I need some additional informaiton from you first. This info includes how long you want to lease it for, how many miles per year you need to be able to drive it, and its approximate selling price. You should be able to get an idea of what sort of selling price you will have to pay right now by visiting the following discussion: "Honda Odyssey: Prices Paid & Buying Experience".

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CarMan@Edmunds

Hello fish1169. You are being given a $1,300 discount a van that has around a $2,500 spread between its full MSRP and invoice prices. This is a reasonable deal, but I would not be completely surprised if you were able to be at it by shopping around. You may want to stop by the discussion that I mentioned in my previous post to see how much other community members have paid for similar vans lately. The main problem that I have with this deal is the high money factor that you were quoted. For consumers with good credit and who pay a security deposit, Honda Finance's buy rate lease money factor for a 36 month lease of a 2006 Odyssey should only be .00255. It is possible that the dealer that you are working with is marking up this van's base factor to add additional back-end profit to your deal. Using Honda Finance's actual lease program and the prices that you mentioned in your post, I estimate that this van should have a 36 month, 15,000 miles per year, zero down, pre-tax monthly payment of around $340. As you can see, the lease payment that you were quoted is too high.

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CarMan@Edmunds

Hi sesarj. you never mentioned how long you want to lease this van for or how many miles per year you need to be able to drive it, so for now I will assume that you are interested in a 36 month lease with 15,000 miles per year. Correct me if this is different than what you want. If you were to lease a 2006 Honda Odyssey EX-L w/ RES through Honda Finance right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00255 and 59%, respectively.

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sesarj

Thanks Car man. I am actually looking for 36 months, but only need 12,000 miles. Does that change the residual?

cliff1371

Hey Car Man,

thanks for reply. Well i went and pulled the trigger. I shopped at 5 different dealerships and the deal i ended up with BLEW the other guys out of the water!
Actually the other dealerships said that there was NO WAY i was getting the vehicle for these numbers.

Here's the breakdown: Odyssey 2006 EXL-RES, 15K/year 42 month
MSRP=32,945
Negotiated Final SAle Price= $28199.00
Amount Down at Signing $2298.00(includes reg,taxes,1st month payment)
money factor = .00245

Monthly Payment= $359.00

I'm being told this is a great deal, what do you think?

Also,
Anyone interested, i told the SalesMan i would definitely refer him. My best friend just went down a ended up with the same vehicle for 379.00 per month.

The dealership is in the Springfield, MA area

freedy

Car Man:

Was interested in the following lease information for 24, 30 and 36 mo. lease terms with 12,000 miles and 15,000 miles (information on all 6 different parameters). Let's assume the following: MSRP 32945. Cap cost 30041. No cap cost reduction. Using the current AHFC money factor and residual value, would you please run the monthly lease amount based on the above (please let me know the money factor and the residual value for each as well). MUCH APPRECIATED.

sesarj

I was quoted 30696 including destination. Moey factor is .002650. Didn't you say that Honda's currently .00245? Where can I get that information? to respond to the dealer? Thanks for the help!!

formercdguy

I am looking to lease a 2006 Honda Oddessy Touring with NAV and DVD in NJ.
The msrp is $39,345. We need 15,000 miles per year included.

We only visited one local dealer and were quoted $589 per month on a no money down 36 month lease. I'm not sure if that includes taxes. I also did not ask what the inception payment is.

Is this in the ballpark? What do you think the best we will do is?

CarMan@Edmunds

You're welcome sesarj. The money factor for a 36 month lease with only 12,000 miles per year would still be the same, but the residual value for a 12k lease is 2% higher than the residual for a 15k lease.

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CarMan@Edmunds

No problem cliff1371. The selling price and lease money factor that you were quoted for this van look great. I personally wouldn't have put so much money down, but other than that this looks like a very good deal. I am glad that you were able to negotiate an offer that is so much more attractive than the other quote you were given earlier.

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CarMan@Edmunds

Greetings freedy. Let's work up a lease payment on the van that you are interested in and see what we come up with. According to my calculations, if you were to lease a 2006 Honda Odyssey EL-X with DVD with an MSRP of $32,945 and a capitalized cost of $30,041 through Honda Finance right now for 24 months with 12,000 miles per year, its zero down, pre-tax monthly payment should be around $538. The payment for an otherwise identical 30 month lease should be around $517. The payment for an otherwise identical 36 month lease should be $405. As you can see, the 36 month lease program for this model is WAY better than the 24 and 30 month programs. If you were to lease with 15,000 miles per year, the 36 month payment would increase to around $421. For the 36 month term, I used a money factor of .00255, a 12k residual value of 61%, and a 15k residual of 59%. This factor is much better than the .00370 that you would have to use for a 24 or 30 month lease of this van.

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CarMan@Edmunds

Sesarj, Honda Finance's current 36 month buy rate lease money factor for consumers who qualify for its top credit tier and pay a security deposit is .00245. If you opt to have your vehicle's security deposit waived, the base factor increases to .00255. If you do not qualify for Honda Finance's "Super Preferred" credit tier, the factor would be a little higher than that.

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CarMan@Edmunds

Happy Halloween formercdguy. You never mentioned the selling price of the van that you are interested in leasing. This is an important number for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing the price of the Odyssey that you want to lease you don't know how good a price you are getting it for. The second reason is that one needs the selling price of a vehicle that they want to lease is that it is necessary to calculate its lease payment. I would be more than happy to give you my opinion on the payment that you were quoted and even calculate what your payment should be like on this van using Honda Finance's actual lease program if you let me know what its selling price is.

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sesarj

Thanks Car_man. That is valuable info.

disneygirl

Ok, I went to my dealership and signed a tentative deal, but only but a very small amount down ($80 - don't laugh,its all I had, no actual plans that night to "seal a deal" I wanted the van but was still just looking...) Here's what I have going. I currently drive a 2002 GMC Envoy SLE. I owe $13,500 still on this vehicle. I went to the Honda dealership with the goal of spending no more than $400/month.for a loan or lease. I am putting NO downpayment down on the LX. The trade in value that the HOnda dealer quoted me was only for $11,000 for the Envoy. The ending situation I left with was the following. THey will take the Envoy from me, and pay off the remaining loan amount. I am putting NO more money down as a down payment, but need to pay 1st month and NY taxes at delivery (total 1748 - $80). No security dep either. The monthly payment that they got it down to is $394. Money factor was .00245. Its a 42 month lease, I can't remember right now if it was 12 or 15K a year. I normally wouldn't even put 12K on car in a year. I think this is a good deal because I have NO money to put into it, besides that 1st month payment and taxes, (which they can't control.) and, they are dealing with the Envoy. My payment for the 2002 Envoy is $400 right now. I am walking away with a better vehicle for less $$ a month ( I know the $1748 DOES count in the long run) and less headache at the end of the lease as opposed to keeping a loan for a 2002 Envoy.
I know $394 is probably a LOT for an LX, but I am coming in with a sort of negative equity from that Envoy. Should I continue with this deal? I feel good about it but you guys know the way it really works. Thanks so much

queensody

Good evening.

I am looking to lease an '06 Touring with NAV in Queens/Brooklyn/Long Island area if possible.

What is a good price for 36 months/12k year/zero down/first month, DMV and out the door with taxes included with no additional fees?

I went to Hillside and Paragon in Queens, both dealer were jammed with people and both quoted prices in $620/$640 range, and I am a repeat Ody customer of both.

I got a letter from HFAC that I am pre-approved for a $37k lease with them so I guess my credit and history is good with HFAC.

I was thinking that $580 range was good. Is that too little or too much or just right.

Please let me know.

BTW, this would be my 3rd Ody.
1st was '00 LX at above terms for $400/month.
Current, which expires next month, is '03 EXL-RES at above terms for $450 month.

Thanks.

sesarj

I am negotiating an odyssey EX-L w/ Res in Los Angeles. The dealer price is to be 29,796. He told me that they just got new money factors on 11/2. now it's .00265 w deposit and .00275 w/o. Is this correct?
Thanks

CarMan@Edmunds

You're very welcome, sesarj. Let me know if you have any other questions.

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