Honda Pilot Lease Questions

redsali

I am looking to lease an '06 EX 4WD Pilot. I just left the dealership with an offer of $350 per month, $1000 down, $2000 trade-in, 15K for 42 months. I walked away before we discussed the money factor and the residual amount. I am new at this and don't completely understand all of the lingo. Is this a good deal? Can someone explain the money factor and the residual amount?
Thanks!

njgreg

Hi,

If Car-Man or another expert could calculate a monthly lease payment, I would appreciate it. Here is the info I believe is needed:

MSRP: 28195
Selling Price: 24899
12K
42 mo

Other variables:
Best or second best money factor
$0 at signing or the most common amount ($1500?)

Thank You!

NJGreg

mechilds

Here is how to calculate your monthly lease payment, as it has been explained to me:

Subtract the residual value of the car from your final capitalization cost (agreed upon price + taxes + fees - any money down). This gives you a depreciation value, which you then divide by the number of monthly payments (i.e., 36, 42, etc.) for the monthly depreciation charge.

Next, ADD the capitalization cost + the residual value, then divide that number by the money factor...this gives you a monthly finance charge.

Now, add the two numbers, monthly depreciation charge + monthly fiance charge. This gives you a total monthly payment.

Kirstie_H

Thanks for that! We've also got a permanent discussion here that you might find helpful:
The Return of "How to Calculate Monthly Lease Payments"

kirstie_h
Roving Host
Host, Future Vehicles & Smart Shopper discussions

seatlsteve

I believe you meant to "multiply" not divide by the money factor to get the finance charge.

chuck19

Was at the dealership yesterday
2006 EX Pilot, no leather
12K
$595 including first month down
$320 36 months including NY State and City tax

sounds like a great deal, salesman told me after Christmas sale, want to move stock......till New Years

mrallen1

Leased at Richfield-Bloomington Honda.

Negotiated price to $27,800
I financed through AHFC, with the promotional money factor of .0009
Lease term: 36 months, 15K/year, @ 59% residual value

My monthly payment is just over $290.

I paid the sales tax, title and registration fees, acquisition, etc with cash, and put nothing down on the car itself. The OTD price was $27,800 + $2350

Hopkins Honda offered me a price of $27,915. The other three metro dealers weren't even close.

Love the Pilot. It's a great SUV.

ttg911

Dealer wants me to name a monthly lease price. I want to put down $1,500 total at signing on a 15k/year, 24-month lease. The money factor they told me was .0001 (.24%), which is odd (think it should be .0009 (2.16%). Residual is 62%. Being very aggressive, I think $325/month (including 5% tax) is what I will offer. Has anybody done a similar deal with this car? I am using this calucaltor help me: http://www.leaseguide.com/calc.htm

Thanks. TG

onlysurfer

I think you have a good starting point. Let us know how it works out. One of the quote I got was $2500 total out of pocket on inception and $365/month - includes 5% sales tax.

rs820

I just got a Pilot EXL AWD (w/ all weather floor mats) - 42 months, 12K miles for $309/mo (including tax) and $1000 due (including first month, security, taxes - 5%, everything). I think I did pretty well. Could I have done better??

cndnbkn

I just got a 06 2wd Pilot LX lease for $247 per month, (deal was actually $239/month but I rolled in taxes)$719 at signing which included first months payment. 42 months 12k/year. I couldn't find anything lower around NC. Closest I found was $2000 down with $279 month or $299 w//zero. Got it at crown honda in Greensboro NC. Feel like a got a great deal. Could I have done better?

ttg911

Hey onlysurfer, this car is hard to find in the Metro-Boston area (EX-L with Navi) - was able to only find 1 or 2 in the color combo we liked. Had a deal today I walked away from at Boch for: $1,500 down (cap cost reduction) plus I was willing to pay the fees (aqusition, plates, destination, etc. of almost $1,000) and they wanted $519/month. I got them down to $399/month and told them I would do the deal at $350/month. They said they wouldn't let the car out the door for less than $399/month so we walked. Inventory is REALLY low right now so the dealers have all the leverage. We will wait until Jan/Feb and try our luck again when inventory is up - guess AHFC is going to sweeten the money factor even more (to zero percent) after the 3rd of January. Anybody else gotten a great deal on this car at any Metro-Boston dealers? Thanks in advance. TG

bizhouse

Please help Car_man:

Visited a Honda dealer today (in NY), intending to purchase a 2006 Pilot 4WD EX-L, w/ DVD; negotiated a price of $31,800, which I was very pleased with. However, they weren't offering me (at least in my mind) enough for my trade-in - an 03 Odyssey EX, low mileage, only 32K. They offered 16K, I was hoping for 18K (still owe 13K). When I said the payment would be too high (would've been $545/mo!) w/out getting more for my trade, they went the leasing route - so I listened... and now I'm intrigued. They came up w/ a monthly payment of $320. I've never leased before, and had no intention of doing so when I went there today, but a $225 lower monthly payment sure got my interest! If you could please tell me if this is a good deal or can I do better? My main question is, can you tell from these figures if they were working off the $31,800 price? Having never leased before, I want to make sure they're still using the price I negotiated when I was intending to purchase as opposed to lease.

Here's some more details:

Term: 42 months
MSRP: 35,195
Residual: 19,709
Miles/yr: 12,000
Due upfront: 1,500
Tax rate: 8%

Also, any truth to ttg911's post re: AHFC is going to sweeten the money factor even more (to zero percent) after the 3rd of January?

Thanks!

bizhouse

Anyone have any help/advice:

Visited a Honda dealer yesterday (in NY), intending to purchase a 2006 Pilot 4WD EX-L, w/ DVD; negotiated a price of $31,800, which I was very pleased with. However, they weren't offering me (at least in my mind) enough for my trade-in - an 03 Odyssey EX, low mileage, only 32K. They offered 16K, I was hoping for 18K (still owe 13K). When I said the payment would be too high (would've been $545/mo!) w/out getting more for my trade, they went the leasing route - so I listened... and now I'm intrigued. They came up w/ a monthly payment of $320. I've never leased before, and had no intention of doing so when I went there today, but a $225 lower monthly payment sure got my interest! If you could please tell me if this is a good deal or can I do better? My main question is, can you tell from these figures if they were working off the $31,800 price that I negotiated, or did they go back up to MSRP? Having never leased before, I want to make sure they're still using the price I negotiated when I was intending to purchase as opposed to lease.

Here's some more details:

Term: 42 months
MSRP: 35,195
Residual: 19,709
Miles/yr: 12,000
Due upfront: 1,500
Tax rate: 8%

Also, any truth to ttg911's post re: AHFC is going to sweeten the money factor even more (to zero percent) after the 3rd of January?

Thanks!!!

ttg911

Hey bizhouse,

This is the calculator I use: http://www.leaseguide.com/calc.htm

$31,800 is a good selling price (as long as it includes the destination charge of $550).

Use the above calculator and play with the selling price - you will see how it changes the monthly payment.

Good luck! ttg911

seatlsteve

I paid 31818 for mine w/destination included. As far as the upfront payment goes. You should be looking at 1st payment, license fees and security deposit only. Your trade in should allow you credit against your sales tax which will lower your payment considerably for several months of the lease. My lease was in the Seattle area which has been know to be a tougher place to get a good price.

Good luck,
Steve

dhamilton

Anyone know the MF, and residual for the advertised lease special on the LX? Thanks......D

bassett1

Which dealership did you make this offer to? What was the outcome?

bassett1

Hello Car man. A dealer offered a 42 month lease on a 2006 Pilot EX w/ navigation for $377 + tax ($406). MSRP is 34,595 and selling price is $31,559 with $1500 down payment.Is this a good deal? The lowest selling price I have found to date is $31,378. The dealer's invoice is $28,652. Should I negotiate a lower selling price w/dealer?

murphy11

Hi Car Man. Is Honda having a better money factor in the month of Jan.? Almost bought this car on the 31st. Offered 29,202 (Invoice + 550 dest.) Let me know! Thanks!

ttg911

Hey bassett1,

I offered this to Boch but they wanted $399/month for 06 EX-L with Navi. I was putting $1,500 down as cap cost reduction and paying the doc fees, acqusition fees, title, etc. I was only willing to lease this car for 24 months, however, so I know my payments will be a touch higher since the most of the depreciation happens in year 1 and 2 (63% was the residual at the end of year 2). Hope this helps and let me know if you get a good deal also. We didn't do the deal because it was silver exterior and my wife really wants black/grey. Take care. TG

ttg911

I see that AHFC released some new specials..

http://automobiles.honda.com/tools/current_offers.asp?Function=new

Anybody know what money factor they are using for these programs? The .0001 program again for well qualified buyers? Thanks!

lsp1974

Car Man,

Can you help explain why someone shouldn't lease in IL? I understand that IL and TX make you pay taxes on the entire value of the car instead of what is leased, but isn't it still worthwhile to lease for other reasons such as paying for what you use and tax purposes (if you own a business). I don't live in Chicago, so at least I don't have to pay the 6% use tax on leased vehicles in Chicago. In IL, would you have to pay the entire tax upfront? Then your monthly payments wouldn't include a tax component, right?

Secondly, I haven't been to a dealership yet, but I have a credit rating in the mid 700's. What kind of money factor should I expect to be quoted? I am looking at the '06 LX 4WD model and think I could get it for near 27K. Can you explain the current lease offers and whether it would be possible to negotiate a better lease deal outside the offer.

Thanks, I am new to leasing but very interested.

CarMan@Edmunds

Hi bizhouse. 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.

No, there is no truth to the rumor that you hears about Honda sweetening its lease program on the Pilot for the month of January. It just introduced its January lease program for this truck yesterday and it's not better than the December program was.

The selling price that you were quoted for this truck looks very attractive to me. It is fairly close to dealer invoice. Let's work up a lease payment for this truck using Honda's new January lease program and the prices that you were quoted and see what we come up with. According to my calculations, if you were to lease a 2006 Honda Pilot 4WD EX-L w/ DVD with an MSRP of $35,195 and a selling price of $31,800 through Honda Finance right now for 36 months (this is the longest term that its special lease program is available for this month) with 12,000 miles per year, your zero down, pre-tax monthly payment should be around $375. If you decide that you want to trade your Odyssey in, make sure to have the dealer cut you a check for it rather than use the proceeds from it as a capitalized cost reduction for your lease. It;s never a good idea to make large down payments on leases.

Car_man
Host
Smart Shopper / Prices Paid Forums

CarMan@Edmunds

Hello dhamilton. Honda is currently advertising a 36 month, 12,000 miles per year lease on the 2006 Pilot LX 2WD. Its current buy rate lease money factor and residual value for this truck and terms are .00049 and 57%, respectively.

Car_man
Host
Smart Shopper / Prices Paid Forums

CarMan@Edmunds

Hello bassett1. The selling price that you were quoted for this truck looks reasonable to me. According to the information that I have seen, it is around $300 to $400 over invoice. I think that the invoice price that you mentioned in your post is off. You may want to stop by the following discussion to see how much other community members have paid for similar trucks lately: "Honda Pilot: Prices Paid & Buying Experience". Using the prices that you mentioned, an MSRP of $34,595 and a selling price of $31,559, I estimate that this truck should have a 36 month, 15,000 mile per year, zero down, pre-tax monthly payment of around $415 right now. A $1,500 down payment would drop the monthly payment to around $372. However, 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 Pilot would be exactly the same, regardless of whether you had put $1,500 down, or had made absolutely no down payment at all.

Car_man
Host
Smart Shopper / Prices Paid Forums

CarMan@Edmunds

Hi murphy11. Honda's lease program for the month of January is not more attractive than it was in December. Its new buy rate lease money factor for a 36 month lease of a 2006 Pilot EX-L 2WD is .00049.

Car_man
Host
Smart Shopper / Prices Paid Forums

CarMan@Edmunds

Hi ttg911. Honda's lease money factors vary depending upon what model you want. For the month of January, its 36 month buy rate lease money factor for the '06 Pilot LX 2WD is .00049. For the '06 Pilot LX 4WD it's .00094. As usual, these factors assume that you pay a security deposit and qualify for Honda Finance's top credit tier.

Car_man
Host
Smart Shopper / Prices Paid Forums

CarMan@Edmunds

Hi lsp1974. Normally leasing in Illinois (Chicago is the absolute worst) and Texas is much more expensive than leasing in other states because as you said they charge sales tax on the entire value of vehicles. I'm not an accountant so it is difficult for me to say whether the tax savings that business owners would reap from leasing would outweigh the additional cost of leasing in one of these states.

A credit rating in the mid-700's is definitely good enough to qualify you for Honda Finance's "Super Preferred" credit tier. This means that you would be able to get the lowest possible money factor on the Pilot that you are interested in. If you were to lease a 2006 Honda Pilot LX 4WD through Honda Finance right now for 36 months, its buy rate lease money factor would be .00094.

Most manufacturers advertised lease payments leave a little meat on the bone so to speak. I would not be surprised if you were able to negotiate a lower selling price on the Pilot that you want than the one that was used to arrive at the advertised payment. If you can, it will lower your lease payment.

Car_man
Host
Smart Shopper / Prices Paid Forums

ttg911

Car_man,

Thank you for the great information. I negotiated a selling price/lease payment on a 06 EX-L Navi before the great lease program eneded on the 3rd of Jan and it paid off! Thanks for all your help. TG

knicholson1

Leased from Sam Swope Honda World in Louisville, Ky. on Jan 3. Lease details below:

Term: 42 months
Mileage/Year: 15,000
MSRP: $33,995
Invoice (Incl Dest. Charge): $30,640
My Purchase Price: $30,822
Down Payment (Including First month): $1500
Monthly Payment: $365 (Includes tax and other fees)

I could have gotten one without DVD for $350. But my wife wanted a color that wasn't available in that flavor.

gerry10

Hello Car_Man

Would you please provide the MF and Residuals for an 06 Pilot EX-L for 36 months and 12K or 15K miles per year.

Thank you for taking the time to help with this request.

Gerry

lsp1974

I just leased an '06 LX 4WD Pilot. Details below:

Term: 36 months
Mileage/Year: 12,000
MSRP: $28,345
Invoice (Incl Dest. Charge): $25,922
My Purchase Price (Incl Dest Charge): $25,500
Down Payment (First payment only): $280.12
Residual: 60% = 17,007
Money Factor: .00104 I opted against .00094 because the security fee didn't seem to make it worth it. Difference was 5 bucks a month.
Monthly Payment: $280.12 (Includes tax and other fees)

I think I did a decent job of working the deal. I got the dealer to show me the invoice price and the dealer holdback amount (which was $842 in this case). I might have left a hundred or two hundred dollars on the table, but I think I did alright. What do you think?

lsp1974

The monthly payment does not include taxes.
Should say: Monthly Payment: $280.12 (doesn't include)

navyman57

Want to lease a 2006 Pilot EX looking for the best lease deal for Long Island New York. Have seen ads for an EX for $269/mo for 36 mos with $2000 down plus tax. Are there any no money down deals still out there? Just getting started and any help is appreciated.

cks27

I'm trading in my subaru 2005 legacy (worth about $19,600) for 2006 Honda Pilot EX. The dealer will give me $19,000 for Subaru but I owe $22,500. So i'll be -$3,500, which i'm willing to accept.
2006 Pilot EX....MSRP $31,295
they'll give me for $28,599
tax...................7%
down payment..........$1,000
Term..................36 months
monthly payment.......$465/month
residual..............$18,777

Is this a good move?

heather7

My thinking is...

1. would save time at the dealer.

2. may minimize those finance negotiation tactics.

anyone go this route? why? why not?

pdurant

Hey Car_Man,

Can you please tell me the current residual and lease rate on a 42 month lease for a 2006 Honda Pilot 4WD EX?

Thanks for all your help and information on these boards!

Philip

ttg911

Hello Car_Man. Here's the deal in front of me. $2,300 total down (including first month's payment), 36 months, 15k year and they want $417.80 per month. In the $2,300 down, they are saying some is for cost-cap reduction and the rest is for 'fees' such as doc fee, title, reg, etc. Also, the money factor they are using is: .00104 (2.5%) and the lease-end residual is 53%. If I use the calculator on http://www.leaseguide.com/calc.htm I can get the $417.80 using all the above 'variable' and a selling price of $31,409 which is what they are letting it go for (supposedly). Problem I am having, however, is that I think they are keeping the $2,300 (less my first payment of $417.80) or $1,880 for pure profit (less any little expenses such as new plate, inspection sticker, etc.). Would you agree? Or, am I missing something big here? I appreciate any and all feedback and I really find this site helpful. Best of luck to all. TG

kyfdx

You really need to see a break-down of the $2300.. I'm guessing there is a lot more involved than just the first payment..
Possibilities:
$418 1st payment
$425 security deposit
$595 acquisition fee (charged on every Honda Finance lease)
$200 license/title/doc fees..

That only leaves $700 for cap cost reduction.. Using your numbers and assuming an MSRP of $35,795 (is that right?), and a $700 cap cost reduction, I get a payment of $378/mo. plus tax.. which would probably be close to your $418/mo. figure, if that includes taxes..

You really need the details on your $2300 upfront.. and, you need to know how much of the payment is tax..

regards,
kyfdx
Host-Prices Paid Forums

dmjjpy

Car_man, could I please get the residual and money factor for a LX and EX for $0 down/24 months/12k miles lease.

Thanks

ttg911

Hello kyfdx,

First, thank you for the reply. For the sake of all reading this, I will detail the specifics of this transaction. Here is a breakdown of the $2,300 upfront payment:
$417 1st payment
$309 license/title/doc
$595 acquisition fee (they said it doesn't apply - but I think I may have just not understood)
$979 the dealers profit
$000 cost cap reduction
$000 security deposit

The only way I can come up with a monthly payment of $417.80 is to use a selling price of $31,409, money factory of .00104, residual of 53%, tax of 5% (Mass) and use $000 as a cap cost reduction. At the $417.80, $397.90 is payment and $19.90 is tax. Would you agree the dealer is making clost to $1,000 plus dealer incentive (3%)?

Thanks! TG

kyfdx

Did they say that $31,409 is the selling price? Or, the cap cost? I agree.. that using these numbers, that the cap cost should be $31,409.. It is entirely possible that the selling price is $32,388.. Subtract from that the cap cost reduction of $979..

Since the invoice on this car is about $32,250, it seems you are getting it for just a little above invoice..

I don't know the actual residuals and money factors, but if the numbers you've provided are accurate for those variables, then it seems you are getting a good deal.

regards,
kyfdx
Host-Prices Paid Forums

owlwho2

Hi Car_Man and all --

I was at my local dealer after closing time, scoping out the 2006 Pilots with lease specials in mind. Chatting with a salesguy on the way to his own car, he pointed out 3 remaining 2005 EX-L leftovers and said he really wanted to sell one -- call tomorrow. When I said I planned to lease, he claimed that last year's leftovers would lease really well -- "they get the same residuals" as the fresh 2006's.

This sounded like crazy talk to me. Just from common sense, the car's gonna be one model year "older" at lease-end, so it would clearly be "worth less" than a fresh one. From leasing research, don't residuals drop a little through the course of the current model year to account for this? And would 2005s be eligible for current lease specials?

Apart from that issue...does it seem weird to you that they would still have 3 of these old 2005s out of around 30 Pilots on the lot? Their state inspection stickers show that they have been there since July/August and yeah, they are loaded up with dealer installed pack-accessories (that I would ignore in negotiations). This is at a high volume suburban Texas dealer.

Edmunds says that the factory to dealer incentive is $1,500 for remaining 2005s. What would you expect the dealer to be willing to do, to move one of these dogs...oops, one of these great SUVs . Good idea or bad?

Thanks -- owl

CarMan@Edmunds

You're very welcome, ttg911. Congratulations on your new truck. Enjoy!

Car_man
Host
Smart Shopper / Prices Paid Forums

CarMan@Edmunds

Hello Gerry. According to the latest information that I have seen, if you were to lease a 2006 Honda Pilot EX-L 4WD without the navigation or DVD options 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 .00094 and 55%, respectively. The factor for an otherwise identical lease with 12,000 miles per year would be the same, but the residual value would increase by 2%.

Car_man
Host
Smart Shopper / Prices Paid Forums

CarMan@Edmunds

Congrats on your new truck, lsp1974. It looks like you got an excellent deal. I don't think that you left any money on the table at all. You were able to get a fairly popular model that has no cash incentives available on it for under invoice and the dealer used Honda Finance's base lease money factor to calculate your lease payment. Good job. Enjoy your new ride!

Car_man
Host
Smart Shopper / Prices Paid Forums

CarMan@Edmunds

Hi navyman57. Since you are just getting started, 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.

Consumers can and should always lease any vehicle that they are leasing without making any sort of down payment. when I say not to make a down payment, I mean not to make any sort of capitalized cost reduction that will reduce the amount financed for your vehicle. 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 Pilot would be exactly the same, regardless of whether you had put several thousand dollars down, or had made absolutely no down payment at all. Even without a down payment, you still will have to pay your truck's first month's payment, security deposit, and Honda Finance's $595 acquisition fee at lease signing unless you opt to have them waived in exchange for an increase in your vehicle's money factor or added into its cap cost.

I'd be happy to give you an idea of how much it would cost to lease the Pilot that you are interested in without a down payment if you provide me with a little additional information on it. Look up the full MSRP and dealer invoice price of the exact truck that you want in the following section of this site and let me know: Edmunds.com - New Vehicle Pricing. I'll use those numbers to estimate a payment for you.

Car_man
Host
Smart Shopper / Prices Paid Forums

CarMan@Edmunds

Hi cks27. I personally think that the best move would be for you to wait until you are less upside down on your Subaru to get a new vehicle. However, as far as the new vehicle side of this transaction goes I'd say that the price you are being given the Pilot that you are interested in for is fair. It is difficult to say exactly, but it appears to be around $500 over invoice. To give you an idea of how much more you are spending than you would be had you not traded in your Subaru, I worked up a 36 month, 15,000 mile per year, $1,000 down lease on a 2006 Honda Pilot EX 4WD with an MSRP of $31,295 and a selling price of $28,599 and I came up with a monthly payment of around $306. This would increase to around $335 for a lease without any down payment.

Car_man
Host
Smart Shopper / Prices Paid Forums

CarMan@Edmunds

While your idea sounds good in theory, heather7, the problem is that the banks that have the best lease programs usually do not deal directly with the general public. If you want to take advantage of the special lease program that Honda is running on the Pilot right now, you have to lease through Honda Finance and it does not deal directly with consumers. When you can do is find out exactly what the lease program is like on the vehicle that you want by looking around in this forum and estimate what your lease payment should be before visiting dealers. The will tell you around what you should have to spend to lease the vehicle that you want and prevent dealers from taking advantage of you.

Car_man
Host
Smart Shopper / Prices Paid Forums