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Invoice on the 2wd EX-L w/Nav is $31,639, less the $1k puts you at $30,639 so your price is into the hold back.
If you want a lower price, you will have to either buy the Pilot or lease it 3rd party (not a good deal).
The residual is what it is and can't be changed by the dealer. Nav systems and leather do not hold value well, nor to 2wd SUVs. So you have hit the trifecta for a lower residual. If you drop the Nav and leather then your residual would be higher or if you opted for 4WD it would be higher as well.
Try Hennessy in Woodstock and see if they can do better, but if you are under invoice including dealer fee and less the $1k incentive it will not get a whole bunch better.
Dennis
The residual is based on the full MSRP including the destination charge.
As we have mentioned before, going with 15k miles rather than 12k miles reduces the residual percentage, going with 2wd rather than 4wd reduces the residual, going with Nav, leather, or RES reduces the residual (going with those in combination reduces it further still). So a 2wd leather and Nav Pilot leased with 15k miles per year will have quite a low residual.
Dennis
Dennis
The MSRP is 35,680.00
Invoice is 32,362.85
Selling price is 30,960.00
N.J. Tax 7%
money factor .00030
Residual is 52% (18,553.60)
Total Out of Pocket $1500 (I know, but we need a lower payment)
Monthly Payment $393.80 (includes taxes)
Whats the opinion? Thanks...
So in theory, the residual on an EX AWD for a 3/36k lease should be $17161.20 based on a full msrp of 31780 (includes destination). This helps....bought many cars but still new to leasing.
25 NX 450h+ / 24 Sienna Plat AWD / 23 Civic Type-R / 21 Boxster GTS 4.0
The residual is always based on the full MSRP including the destination charge. The only strange things are on these "value packs" and "special editions" where the MSRP on the car shows a discount - Honda removes the discount when they calculate the residual, which makes it a better deal for the lessee. They did the same thing when they introduced the value pack on the Accord last year (07 model).
Dennis
I am on Long Island and tax is 8.625.
On my previous two leases (in Texas) I have had a rent charge. The description next to it is: ‘The amount charged in addition to the depreciation and any amortized amounts’. What exactly is the ‘rent charge’? It isn’t the interest I’m paying because those numbers don’t add up.
Here are the items I have listed on my lease:
Gross Capitalized Cost
Capitalized Cost Reduction
Adjusted Capitalized cost
Residual Value
Depreciation and any amortized amounts
Rent charge
Total of base payment
Lease payment
Base monthly/single payment
Sales/use tax
Other
Total monthly/single payment
Thanks for your help.
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Gotta love them low money factors.
Dennis
25 NX 450h+ / 24 Sienna Plat AWD / 23 Civic Type-R / 21 Boxster GTS 4.0
Edmunds shows 3% for Hondas, but I have been told for quite a long time that it is 2%.
Dennis
PS I'm at the dealership right now. Thank goodness for instant communcation!
Normally, I would say buy your accessories online at discount and install yourself (most of them are quite easy to install), but with the near 0% lease rate you could roll them into the lease and come out OK - as long as you don't over pay. The running boards/side steps, for example range from $411 to $477 online plus shipping.
Since they don't add to the residual amount, you are paying for the accessories, so be sure to remove them if/when you turn your Pilot in (where practical).
Dennis
I sent you a reply to your e-mail, but without knowing if your payment includes taxes (and at what rate) I can't say if the deal sounds OK or not.
Just remember if something does not sound or look OK either make them explain it to your satisfaction or walk out. Never sign anything if you have any doubts or questions about the numbers or if they don't match what you calculate for yourself.
Dennis
However, when I was at the dealer their initial monthly payment was higher than what I calculated. In addition, they were either unwilling or unable to explain their lease calculation. They kept referring to the computer program. I had all my supporting info. including a written confirmation of the deal I wanted. The end result is I got the lease on my terms, but I'm wondering if I'm the only person to go into a dealership and have them push a bunch of buttons on the computer but claim to be unable to explain anything.
Some times they "always add" some fee or tire and wheel warranty or some such and that makes the payments higher than expected, unless you catch them at it. Since the "computer always adds that" they can play ignorant if caught padding the numbers. They sure seem able to figure out how to remove that when you catch them, though.....
Notice that on most lease contracts the MF never even appears - so you can only see what MF you have by checking the finance charge or just making sure the payment and residual match what they are supposed to be.
Congrats on the new Pilot, by the way. What color did you get?
Dennis
I decided on Aberdeen Green. I had a bit of concern about the "trendy" color, but figured if I hate it in 3 years the truck goes back! I am confident I can find the next great lease or purchase. But maybe I'll love the Pilot so much that I'll still think fondly of Aberdeen Green. I was one of those Ford Explorer people who had teal green back in the early 90s. I ended up keeping the truck for 14 years. We stuck out like a sore thumb, but it was a great ride.
After the Explorer my vehicles have been dirt colored (silver, light taupe, etc.). Can you tell I have kids? Now that the youngest boy is 7, it is time for a change. I didn't like the grey interior on the Pilot and decided to take a chance on something different. I think the olive green leather interior will withstand the rigors of my 4 growing boys better than tan or grey.
And if not, I still got a great deal!! Thanks to all for the amazingly helpful information...
Enjoy your new Pilot!
Dennis
The dealer wants to sell me a lease vehicle protection plan for $400 ($11 a month).
The benefits are Towing/Roadside assistance (flat tire, batter jump, lock out, out of gas), rental car coverage ($35 a day for 10 days), travel coverage ($375) for mechanical breakdown. I can get all that through Allstate Motor club for $300 ($100 a year, $8 a month). The one thing this plan has that Allstate does not is the Road Hazard Tire coverage (fix or replace a damaged tire at no cost). I do see some value in that.
The other thing he said, which is the reason for my post, is this plan covers more bumper to bumper problems than the standard Honda warranty.
Isn’t the standard Honda warranty sufficient? If the window doesn’t roll down after two year, Honda will fix it correct? What type of issues would I need for a 36 month lease?
Dennis
Dennis
was told that the $3500 in marketing incentives did not apply to a lease, only purchase? but they said they had $1500 towards a lease? Can't seem to validate anywhere - are they lying to profit the difference of the $2000 + their holdback?
SE Model 4WD - no NAV
$298/month
36 mo term
$12K mi/yr
$2500 down includes all fees and 1st mo pmt
54% residual
MSRP - 34,430
net price - 29,010
cap cost red of $1023 (included in $2500 above)
money factor 0.0003
Whatever you do, do not put all that money into the lease - the lease rate is way under 1% effective APR so use Honda's money and not your own. Pay at most the first month's payment at signing and keep your money in the bank.
Dennis
What dealer are you working with
Thanks
Why? The rate can't get much lower than it is now. They COULD increase the dealer incentive for leases, but you don't know that they will. They may or may not continue cheap lease deals after these expire and the current deals are really nice.
To me, the problem Honda has is that they can't sell Pilots (or Ridgelines for that matter) and never have been able to. If, by offering huge incentives for PURCHASE along with cheap money in some states, they are able to move Pilots then they get rid of them. If they offer cheap leases then they may move some more Pilots, but then they have the problem of what to do with them when they get them back at lease end. I think they would much prefer to "sell" you a Pilot than to lease you one cheap, then they never have to sell that Pilot again. They will do cheap leases on slow movers from time to time, but they only delay the inevitable problem of having to sell them again once they are all turned in. It is different when they have cheap lease deals on Civics and Accords, they can easily CPO them and sell them after turn in for a nice profit (more than they made when new in most cases), but on the slow sellers they have a real problem.
You have to decide for yourself, but if you can lease a new Pilot for $1k under invoice and maybe down into the hold back and get 0.3% - .7% lease money to do it that is a nice deal. Could things get better if you wait? Maybe yes, maybe no.
Dennis
Thanks
Incidentally, I just got an offer of $382/month lease payment on the '08 SE based on a net sales price of $29,111 ($30,511 plus $100 less the $1,500 holdback). All I would be paying up front is taxes, title and first month plus the dealer will cut me a check for the last three payments on my current lease. Am I crazy not to jump? Still questioning the net sales price of $29,111. Can I do better????
When a design comes out normally Honda does not have cheap lease or finance money on it nor are dealers very willing to bargain. So the price difference and payment difference between an 08 now and an 09 when launched could be staggering.
I assume this is a 4WD SE? The invoice is $30,510 and the dealer is offering it to you for $100 over invoice less then $1,500 dealer incentive (this is not hold back, that is something else) ? That leaves the dealer making $672.60 hold back plus the $100 profit. Any other dealer doc/prep fees hiding in there? That would be a decent deal, then you say they are giving you a check for $1,071 to cover your last 3 lease payment? Are you keeping the current Pilot or giving it to the dealer?
If I put in the MF and a guess at residual (50%) and your cap cost of $29,111 into a lease calc I get a payment of $355.33. If I had about $1k to your cap I get about your payment. So either the residual is lower than 50% or they added some money back on top of the selling price.
I would get all the numbers pinned down - net cap and residual, then if they are letting you keep your current Pilot as well as the new one it would seem a nice deal, as long as they didn't add those 3 payments back on top of your new Pilot.
Dennis
I wish I could just buy a car off the rack at Target....
You can, but you end up with a Saturn or a way overpriced used car from Carmax
Dennis
Thanks for the insight. It is a 4WD. I would be giving my '05 Pilot to the dealer and pay the remaining payments with the $1,071 that they give me. Should I be pushing hard for a lower cap cost given the $672 hold-back or is this unrealistic?
Dave
If I were doing a deal like this, I would want to keep driving my old Pilot and use the dealer's money to pay the lease payment for the next 3 months. Then you are REALLY getting what you stated you are getting - the dealer paying your lease for you.
Find out the current buyout price on your Pilot lease from AHFC and see what KBB, Edmunds, etc say it is worth on trade in. Then get the dealer to BUY your Pilot for the pay off on the lease (if the numbers support it) then lease the new Pilot at the negotiated price w/o this funny business of them giving you a check and you payment the 3 payments, etc. You payment should go down and things be a lot more clear cut this way.
They either need to buy you out of your lease (buy the car so you don't turn it in) or you get to keep driving it. If they take your car as trade and give you lease pay off money for it, then that wipes out the old lease deal and you owe no more payments and no over mile charges (if applicable) and no dent and ding charges (if applicable) - a much better way to do things.
If you are going to keep paying on the old lease then you need to have possession of the vehicle and keep driving it.
Dennis
Dave
If you have to pay your last lease payments then you are turning the Pilot in and are responsible for over miles, dents, dings, etc. If they were buying it out for you then there would be no need for them to give you a check and have you pay payments on it.
Did they tell you to pay the last 3 payments all at once? I guess they may be getting you to do an early turn in, but that does not excuse you for miles and damages.
As I said, I can't get the payment you state to work out given the $100 over invoice less $1,500 dealer incentive. So unless we find out why, my assumption is that that are adding the amount of the check on top of your new Pilot price so you are not "getting" anything at all - you are paying it to yourself. This makes your net deal $100 over invoice less $1,500 plus the last 3 payments. Which is NOT a good deal at all. For sure if you are essentially paying yourself the payments and surrendering the old Pilot 3 months early. You have to pay for it but can't drive it.
Dennis
I wish I could just buy a car off the rack at Target....
Did anyone in NJ utilised this offer. If yes how much is paid? One of the Dealers telling me that it will cost $2000 for all that tat, title, registration and fees etc. I feel this is on higher side.
Thanks.
4 x 2 4 x 4
MSRP 34880 36280
CAP COST 30910 32587
EDMUNDS INVOICE 30917 32905
MF and residual on the 4 X 2 are .000140 and 46% and the 4 X 4 is .0003 and 49%
With the $1000-$1500 lease incentive going to the deaer I am thinking I am leaving dollars on the table. Any comments on these prices? I really would like to save about another $1000 of of these prices but so far I have not had any luck
Someone else from NJ can probably list out what other expense you look at - tire fee, taxes, title, etc. If you go in and say "I want that deal I saw on TV and the Honda web page" you are leaving a lot of money on the table.
Dennis
You need to find out the actual selling price of the car, the lease money factor, and the residual percentage or dollar value. Then you will know exactly what you are paying.
Go back a few pages and read all the posts here for February and you should get an idea.