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I will have to try Mahwah. The local dealers here also have no clue. The internet sales dept passes my LEAD onto sales people to call me. They give me little to no attention, and the offers are not even close. It is like they are going thru the motions. Before I put foot in a dealership, I want the numbers first! Any suggestions on who to contact at Mahwah??
I live in Chicago and just got an offer for a Honda Pilot EX 2WD. I am looking at the "Leadership Purchase Plan" as an alternative for the traditional leasing beacuse of the high and multiple taxes applied in Illinois and Chicago. The deal sounds like this:
Duration: 36 months and 15,000 miles/year MSRP: 30,095 Sale Price: 26,804 (under invoice) Cap Cost: 26,441 Residual value: 53% respectively 15,950 Chicago Tax: 9% Interest rate: 1.66% Down payment including taxes: 3,000 Number of payments: 35 Montly payment: 329.95
Is this a good deal? I haven't signed yet, so I need your opinion in order to go on.
This is all too common with the majority of dealerships. The overall philosophy is that Internet customers are something less than a "phone lead"
The majority of dealerships have a Internet Dept in name only, which usually consists of someone who prints out the "lead" and passes it around to the various salespeople.
Actually, this quote is from Jacobs Twin Honda in Chicago and I got it by going there in person two times. I understand what you are saying about not putting $3000 down: I can finance them with a mere 1.66% and actually invest them somewhere else for a greater return. On the other hand, it helps me keeping the monthly rate down. I will think about it.
What do you think about the deal in general (even with the 3000 down)?
Does anybody know if the residual values for cars are set by somebody (like the manufacturer, some organization, etc), or is negotiable with the dealer.
I am asking this because I got a quote with 53% residual value for a Pilot EX 2WD after 36 mo, and it seems a little bit lower than I expected. I got another quote from another dealer with the residual at 56%. Who is right?
They both could be right or both wrong! Dealers will often give you the "wrong" information so you can come in then they "suddenly" remember ohh we thought you wanted the AWD or Ohhh that was for 12,000 per year.
I would avoid a dealer who "can't" get you the money factor or residual when you ask for it. And DO NOT negotiate a lease until you know exactley what the manufacturere is offering.
Bottom lines the residuals are established by the maker and they are non-negotiable.
Factors that influence the residuals:
1. Length of lease 2. Miles alloted in lease, ie 12K v. 15K 3. Options added on the vehicle, such as NAV or RES. 4. Trim line of vehicle.
Car_man is the resident Lease expert. You should try and email him and ask what the residual (non-negotiable) and the money factor (negotiable) are.
Let him know the exact model and trim, length of lease, and miles you are seeking.
Remember Leasing is just how you are going to pay for the car. So, lets put that aside. And you are doing nothing different than a typical car purchase.
First thing to do is determine what car/color you want and negotiate the price on the car.
Review the prices paid board for you car and geographic location. Review Edmunds TMV. Then I would send emails out the internet department and negotiate the price of the vehicle.
Honda has lease support for the Pilot. Go back to the beginning of March on this board as I think car_man stated what the residual and money factor on the Pilots are.
Or email Car_man and ask him what support is. I beleive the money factor is for top-tier credit, hopefully that is where you fall in.
Go read the "How to Calculate a lease payemnt" topic so you can educate your self on the complex terminology and just how a payment is calculated. You really want to know your payment before you go to the dealer, so you can make sure they give you the correct money factor and do not add additional cost in.
I would recommend you do not put any money down on a lease, this really does not get you any economic advantage. When you get to F&I READ every part of the lease contract:
1. Payment amount 2. Number of payments 3. MAKE SURE IT IS 15,000 miles.
If you have more questions feel free to post or email me. I am no expert but have leased cars on more than one occasion.
Hi to everyone in the forum. It seems this information channel has taken a turn that is in many ways totally wrong. I am a Internet Sales Manager. At our dealership we have 3 dedicated sales people that handle all internet leads. We do not hide any information from our customers. In fact all of our replies go out with the MSRP, Invoice and Documentation Fee costs. Our customers know everything before visiting our dealership. We even include the $10.00 fee that is required if you finance. When you visit our dealership you know exactly what you are paying for the vehicle out the door. The only exception to this would be if "YOU" decide to purchase GAP, an Extended Warranty or any other items that are offered to you (as a requirement by law in this state). I know there are alot of dealerships that bate and switch their customers. We do not do that. The purpose of our Internet Department is to move units. The floor staff are the ones who work on making gross. I understand there are alot of dealerships in the US that are still working customers the old way. We do not and will not do that here. I think it is only fair that the host of this post make note that setting people up with boxed in opinions or manipulated statistics is not the proper way to serve the public. If anyone needs information on any Honda product feel free to contact me.
think it is only fair that the host of this post make note that setting people up with boxed in opinions or manipulated statistics is not the proper way to serve the public
--Hey okie, you misread the post you replied to. The rules of this forum are that you can mention a dealer, but you are not allowed in a post to mention a particular salesperson you dealt with or to post an "email" address in the body of a message.
The poster was not giving advice on how to deal with an internet deal, just re-iterating the rules of the board.
jmurman42, I'm sorry you live in a area that the "MAJORITY" of dealership internet departments treat their customers this way. We give our Interent customers personalized attention. It's how the Internet is suppose to work for the buyer. Negotiations complete and the vehicle ready for delivery when you arrive. That's how we do business here.
okiebug61, that's all wonderful and dandy, i wish all dealerships were like yours. i spent the last 6 mos researching my new ute and chose the pilot. when i first started asking questions thru dealer's sites, the MAJORITY would send back a vague reply, then followed up with a phone call wanting me to visit the dealership...this is not internet sales IMO. unless they were getting the deal, they didn't want to talk/negotiate via email. their loss.
one salesman even had the nerve to ask what was my current best offer, that he would beat it if i was willing to put a deposit down over the phone. sounded great, but he didn't want to provide all the terms/numbers until i visited the dealership. no dice. he said he'd call back with the info...he never did.
so yes, there are a handful of good dealerships with great internet departments, but i feel the majority are still old school.
I've been speaking with a dealer in Massachusetts regarding an 06 Pilot 4wd EXL (no DVD or Nav) with an MSRP of $33595. I was told the residual on a 12k lease for 36 months is 55% and the money factor is .0058 if you pay a security deposit, .0068 without the security. My current Honda Financial Lease is expiring, so I figured the security deposit would waived regardless. Has the residual gone down from 58% to 55% since March 12th? I've been quoted a sale price of $30,000 and payments of $331/mo with $2k down. Does it sound like the dealer is playing games or is this correct? Thanks
eric777, the residual of 55% is correct, it was 57% prior to march 1. the mf is .00068 (i think you forgot a zero) with no security, .00058 with security. i paid $30K for my 06 EXL AWD, hoping to pick it up monday!
the 58% residual applies to the AWD LX or EX (w/o leather).
don't forget your $2K down will cover a bank fee of $595, dealer doc, dmv fees, and first payment. in my case my oop also included nj sales tax.
Hi, So glad I found this site! I live in Raleigh NC and am thinking of getting a 2006 Pilot EX-L and am seriously considering a lease vs. purchase. My questions for carman or other authorities on the subject are:
What are the current MF and residuals? How long will they be in affect? (i.e. thru the end of March?)
Is it advisable to pay a down payment, and if so how much?
On 12K v. 15K leases, if my intention is to keep the vehicle anyway after the 36 months then does it really matter?
Thanks for the help! I am hoping for a response as soon as posible!
2006 EX-L 2WD: $1999 (EXCLUDING TAX) & $325/MONTH(INCLUDING TAX) FOR 35 MONTHS. MF=.0022 AND 52% RESIDUAL. I'M IN SOUTHERN CALIFORNIA AND DEALER SAYS THE RESIDUAL IS NON NEGOTIABLE BUT SEEMS LOW TO ME. LEASE IS FOR 12K MILES.
PRIMARILY IS THE REDUCTION CAP & SECURITY NECESSARY AND SHOULD I BE AWARE OF ANY OTHER POTENTIAL PITFALLS?? ANY HELP OR COMMENTS WOULD BE APPRECIATED.
I am looking to lease an 06 Pilot EX-L AWD with Nav. for 36 mos with 0 down 15k and the add on cost for 18k. I am a returning Honda Finance customer which qualifies me for $ 0 security fee(which I did not pay on my first lease). I have negotiated a price of $32000. plus tax. There were two different MF mentioned in post #430. Which one would be applicable and what is the equation when figuring out the payment? Also, how do you calculate the original sell price and residual of a monthly payment quote?
acmecookie, you would have to ask your salesperson, but i believe you will still use a MF of .00068 if you do not pay a security deposit.
the lease equation can be found on this site. the short version is, you need the negotiated purchase price, the residual amount, the lease term and the MF to calculated your payment excluding sales tax.
Dear pilot4k9s or Carman, I have been offered a lease for 36 months and 2K down. The price of the car is at $28,879 with 58% residual and .00068 MF. I believe this includes tax. The monthly payment right now is at $334/month. The EX does not include L/RES/NAV. Thanks for your time.
pilot4wife, not sure what your question is...are you referring to an AWD? invoice is $28,214, so i would think you could get a better deal. if you're referring to a 2WD model, then you definitely can get a better deal!
Sorry, i wasn't clear. It is AWD model. I am roughly 500 above invoice, should i negotiate further? What should be my next offer? How much of an impact on the payment would it be to increase the miles to 15K? Thanks for your time.
Here's a quote I received today for an 06 Pilot LX 2WD 36-month lease:
Sale Price: $25,344 ($500 over invoice) Annual Mileage: 12,000 Term: 36 months Money down: $428 (first payment plus license fees) Monthly Payment: $277 (including tax)
This monthly payment is shockingly low in my opinion since Honda's current lease special is $279/mo (BEFORE TAXES, 55% residual, and .00012 MF). I didn't get specifics on MF and residual yet, but the general manager indicated payments were calculated using super-preferred tier. A higher residual must've been used to calculate this payment. I'm trying to negotiate the sales price down slightly since many posters here are reporting below invoice quotes.
I am interested in Leasing and EX-L in either the end of this month or April. Does anyone foresee any possibility for better lease options in April? Any info would help. Thanks
basically it's what you are comfortable with. from what i'm reading here and on other pilot message boards, people in the northeast region are easily getting invoice to $500-600 (or more in 1 case) UNDER invoice. my best internet offer was almost $300 under for an EX-L AWD. i took it because i hate to haggle...it was under invoice, so i was happy. as for miles up front, again that's something for you to decide. i'm purchasing my vehicle at the end whether i keep it or not (i plan to keep it). so i did not pay for additional miles. did you email several dealers?
I have 2 dealers at the same price as i have listed before. I am going to push a little more and see what happens. I am pretty comfortable at where i am at, but i will push some more. I am trying to get the miles thrown in at that price. Thanks for your help. Let me know if you have any other suggestions.
Can you tell me if the money factor of .00058 and residual of .58 is still in effect for march on the EXL AWD (NO Nav or DVD) also, any type of guidance or thoughts if this will be carried over to April?
Hey Carman, Golic or anyone else who can help. Here's what I am looking at:
MSRP - $35195 (includes dest.) Best Offer - $30,722 to purchase, $31,722 if I lease using a MF of .00058.
I asked why the difference, they said that if I lease, they can't give me the dealer incentive of $1K as they need it to buy down the lease. Sounds like a load of crap to me. Can you shed some light on this? Is this the dealer trying to bump up their margin or is Honda really not offering the $1K to the dealer if I go for the .00058?
There is no difference in negotiating a price whether it is a lease or a purchase. Remember, a lease is a financing mechanism.
To be honest, that looks like a good price for the $30,722 with the RES.
I am not aware of that incentive, it just sounds too damn fishy.
As far as the $595, well no matter where you lease you are going to pay that Acquisition fee or whatever they call it. Be grateful, I have seen them higher.
Don't waver on the $1,000. Just out of curiosity, if you are thinking you might want the vehicle after the lease period..you should look into the Leadership Purchase Plan.
Two seperate fees altogether. The destination fee is paid whether you lease or purchase.
The bank fee is for the "privelege" of leasing.
Yes, the MF will go up without a security deposit. Since there is more "risk" from the banks perspective they will charge a higher MF.
To be honest, last I looked at this you are REALLY better off putting down the $500 deposit. The higher money factor is going to be substantially more than if you put the $500 in a 3 year CD.
In fact, I think that you can even buy down the money factor by putting down additional deposits. It might be something to consider.
Last thing if you are current AHFC customer I thing if you request they will waive the security deposit all together.
Car_man is the best person to ask on the residuals. Let me know how many years and miles you are looking at and I will make a call for you.
Thank you to everyone who has posted, i am doing my best to learn about leasing an getting a fair deal. I was wondering if someone could dumb it down a little for me. The bottom line is a want to see what my monthly payment would be... I'm interested in a 06 pilot AWD EXL with 15k and 2000 down, could anyone tell me what would be a reasonable monthly payment for this? - I live in the philly region Thanks for any help
There is a $1000 difference in price between lease and purchase. I am a Honda salesman. Right now there is a $1000 dealer cash towards Pilot purchases. The dealer does not receive that $1000 if the customer leases. If the custumor leases there is an extremely agressive money factor instead. Obviously with the money factor as low as it is, Honda is subsidizing it. They have chosen to go this route rather than giving the $1000 dealer cash. Sorry but you can't have the best of both worlds.
If you think you may very well go over 12k miles/year but also would probably purchase the Pilot at lease end then does it make sense to go for the 15k miles. Do you pay the penalties if you buy it out??
1. Determine the difference in residuals between the 12k and 15k. When I bought my pilot there was a 3% difference.
The monthly difference in my payment would have been $26.95. So 26.95 times 36 month lease equals $970.
2. IIRC the over mileage rate was 15 cents a mile. So if I took a 12K lease my break even would 6,466 miles over OR about 14,150 miles a year.
In my case -If I thought I was going to need more than 12k but less than 14k, then it will be cheaper to pay the overage.
Now, I have a caveat and a something to consider.
CAVEAT: Life changes during 3 years, job changes, moves, etc. so if you are bumping close to the break even it may be better just to bite the bullet and go with the 15k for peace of mind.
CONSIDER: If you really are intending to purchase this vehicle at lease end, I really think you will be better off economically to purchase it now. If you are going to do a 3 year lease, then finance the residual for more than 2 years I think this is not the best long term economical plan.
Also, you should look into the leadership purchase plan.
Thanks for the feedback. I am waiting on details such as MF, residuals, etc from about 4 dealers. How come they will quote me a monthly payment but don't reply when I ask for the specifics?I guess no one wants to unload a Pilot in the next couple days.
I do have this from one dealer: $0 down, 36/15k miles, EX 2WD, 381.99/month(tax included), buy out=$15950.35.
He also offered a purchase at the price of $26700 plus tax, tag, fees. I am awaiting info on the leadership plan as well, do you know if it would be much more per month than a lease?
Continue to press the dealer on the MF and residaul and note the following.
1. Some, not all, Dealers will play the quote a payment game and then when it is time to buy will give you the OHHHHH we gave you the wrong residual.
The residual is non-negotiable. And a 15K will have a lower factor than a 12K. When I was dealing with Rosen Honda, it was comical since I knew the rates at the time HE KEPT quoting me a payment with a 12k per year.
Read this board as the residual has been posted a few times on the Pilot, or email Car_man who is the resident expert .
2. The money factor IS NEGOTIABLE. And you should definetely find out what Honda's promo rate for top tiered credit is. The place I bought the Honda from played the stupid game..OHHH we didnt know honda had that rate. *eyeroll*. So if your credit is top-tier do not waiver on this rate. Once again, send car_man an email and a cigar to thank him *wink*
The Leadership Purchase Plan *is* a lease but designed to LOOK like a purchase. This was developed by Honda and other car makers to avoid vicarious liability lawsuits in NY, CT and some other Eastern seaboard states.
You are leasing the car at a very attractive money factor/interest rate. You can convert the money factor to interest by multiplying by 2400. At lease end you can then finance the vehicle (not sure how long) at the same interest VERY ATTRACTIVE interest rate.
If you have any inkling you may keep the car at lease end, this sounds like an excellent idea to look into.
On that note, if you really ARE going to keep the car, consider Honda has $1,000 dealer cash on a purchase, so consider that option as well.
Yeah, I feel like I may keep it after the lease but as you say things change. I would just go ahead and purchase but I don't want to have to put a down a huge down payment. Also, I refuse to trade in my S2000 I just paid off! She's a keeper. So that would leave me with $500+ payments. Even though his price seems good, basically $100 over invoice.
What do they consider top-tier credit? Over 700, 800??.
I am not 100% sure, but I think if you are in the 700s you are good.
If you go to privacyguard.com you can join up and get reports from all three bureua's. They have a 60 day trial period for $1. Then you can just cancel.
Absolutely not true. All depends on what the buyout price is in comparison to the actual market value of the vehicle when the lease ends. The advantage is you KNOW all about your own vehicle, so if the buyout price is competitive and you have been happy with the vehicle it is a very low-risk used car purchase. Sometimes lease companies even make an offer near the end of the lease to sell the vehicle for less than the originally agreed residual. In some cases you can buy the vehicle from the leasing company and resell it at a profit if you don't want to keep it.
Comments
I will have to try Mahwah. The local dealers here also have no clue. The internet sales dept passes my LEAD onto sales people to call me. They give me little to no attention, and the offers are not even close. It is like they are going thru the motions. Before I put foot in a dealership, I want the numbers first! Any suggestions on who to contact at Mahwah??
I live in Chicago and just got an offer for a Honda Pilot EX 2WD. I am looking at the "Leadership Purchase Plan" as an alternative for the traditional leasing beacuse of the high and multiple taxes applied in Illinois and Chicago. The deal sounds like this:
Duration: 36 months and 15,000 miles/year
MSRP: 30,095
Sale Price: 26,804 (under invoice)
Cap Cost: 26,441
Residual value: 53% respectively 15,950
Chicago Tax: 9%
Interest rate: 1.66%
Down payment including taxes: 3,000
Number of payments: 35
Montly payment: 329.95
Is this a good deal? I haven't signed yet, so I need your opinion in order to go on.
Thank you
The majority of dealerships have a Internet Dept in name only, which usually consists of someone who prints out the "lead" and passes it around to the various salespeople.
Actually, this quote is from Jacobs Twin Honda in Chicago and I got it by going there in person two times. I understand what you are saying about not putting $3000 down: I can finance them with a mere 1.66% and actually invest them somewhere else for a greater return. On the other hand, it helps me keeping the monthly rate down. I will think about it.
What do you think about the deal in general (even with the 3000 down)?
Thanks,
Ovi
It sounds like you are getting Honda's preferred rate - good.
The Pilots are going under invoice= which is where you are at.
All in all, it sounds like a fair deal.
Have you gotten a quote from another dealer?
2) Do not offer to give salesperson information in an e-mail off-line.
3) Do not post your e-mail address in the forum. You can change your preferences to make your e-mail address public, if you wish.
Posts with the above information have been deleted.
Thanks,
kyfdx
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I am asking this because I got a quote with 53% residual value for a Pilot EX 2WD after 36 mo, and it seems a little bit lower than I expected. I got another quote from another dealer with the residual at 56%. Who is right?
Thanks,
Ovi
I would avoid a dealer who "can't" get you the money factor or residual when you ask for it. And DO NOT negotiate a lease until you know exactley what the manufacturere is offering.
Bottom lines the residuals are established by the maker and they are non-negotiable.
Factors that influence the residuals:
1. Length of lease
2. Miles alloted in lease, ie 12K v. 15K
3. Options added on the vehicle, such as NAV or RES.
4. Trim line of vehicle.
Car_man is the resident Lease expert. You should try and email him and ask what the residual (non-negotiable) and the money factor (negotiable) are.
Let him know the exact model and trim, length of lease, and miles you are seeking.
Good luck.
36 months / 15K miles
Where to start?
First thing to do is determine what car/color you want and negotiate the price on the car.
Review the prices paid board for you car and geographic location. Review Edmunds TMV. Then I would send emails out the internet department and negotiate the price of the vehicle.
Honda has lease support for the Pilot. Go back to the beginning of March on this board as I think car_man stated what the residual and money factor on the Pilots are.
Or email Car_man and ask him what support is. I beleive the money factor is for top-tier credit, hopefully that is where you fall in.
Go read the "How to Calculate a lease payemnt" topic so you can educate your self on the complex terminology and just how a payment is calculated. You really want to know your payment before you go to the dealer, so you can make sure they give you the correct money factor and do not add additional cost in.
I would recommend you do not put any money down on a lease, this really does not get you any economic advantage. When you get to F&I READ every part of the lease contract:
1. Payment amount
2. Number of payments
3. MAKE SURE IT IS 15,000 miles.
If you have more questions feel free to post or email me. I am no expert but have leased cars on more than one occasion.
--Hey okie, you misread the post you replied to. The rules of this forum are that you can mention a dealer, but you are not allowed in a post to mention a particular salesperson you dealt with or to post an "email" address in the body of a message.
The poster was not giving advice on how to deal with an internet deal, just re-iterating the rules of the board.
I'm sorry you live in a area that the "MAJORITY" of dealership internet departments treat their customers this way. We give our Interent customers personalized attention. It's how the Internet is suppose to work for the buyer. Negotiations complete and the vehicle ready for delivery when you arrive. That's how we do business here.
one salesman even had the nerve to ask what was my current best offer, that he would beat it if i was willing to put a deposit down over the phone. sounded great, but he didn't want to provide all the terms/numbers until i visited the dealership. no dice. he said he'd call back with the info...he never did.
so yes, there are a handful of good dealerships with great internet departments, but i feel the majority are still old school.
the 58% residual applies to the AWD LX or EX (w/o leather).
don't forget your $2K down will cover a bank fee of $595, dealer doc, dmv fees, and first payment. in my case my oop also included nj sales tax.
good luck!
So glad I found this site! I live in Raleigh NC and am thinking of getting a 2006 Pilot EX-L and am seriously considering a lease vs. purchase. My questions for carman or other authorities on the subject are:
What are the current MF and residuals? How long will they be in affect? (i.e. thru the end of March?)
Is it advisable to pay a down payment, and if so how much?
On 12K v. 15K leases, if my intention is to keep the vehicle anyway after the 36 months then does it really matter?
Thanks for the help! I am hoping for a response as soon as posible!
PRIMARILY IS THE REDUCTION CAP & SECURITY NECESSARY AND SHOULD I BE AWARE OF ANY OTHER POTENTIAL PITFALLS??
ANY HELP OR COMMENTS WOULD BE APPRECIATED.
the lease equation can be found on this site. the short version is, you need the negotiated purchase price, the residual amount, the lease term and the MF to calculated your payment excluding sales tax.
I have been offered a lease for 36 months and 2K down. The price of the car is at $28,879 with 58% residual and .00068 MF. I believe this includes tax. The monthly payment right now is at $334/month. The EX does not include L/RES/NAV.
Thanks for your time.
thanks
Sale Price: $25,344 ($500 over invoice)
Annual Mileage: 12,000
Term: 36 months
Money down: $428 (first payment plus license fees)
Monthly Payment: $277 (including tax)
This monthly payment is shockingly low in my opinion since Honda's current lease special is $279/mo (BEFORE TAXES, 55% residual, and .00012 MF). I didn't get specifics on MF and residual yet, but the general manager indicated payments were calculated using super-preferred tier. A higher residual must've been used to calculate this payment. I'm trying to negotiate the sales price down slightly since many posters here are reporting below invoice quotes.
from what i'm reading here and on other pilot message boards, people in the northeast region are easily getting invoice to $500-600 (or more in 1 case) UNDER invoice. my best internet offer was almost $300 under for an EX-L AWD. i took it because i hate to haggle...it was under invoice, so i was happy.
as for miles up front, again that's something for you to decide. i'm purchasing my vehicle at the end whether i keep it or not (i plan to keep it). so i did not pay for additional miles.
did you email several dealers?
Any on your end?
Can you tell me if the money factor of .00058 and residual of .58 is still in effect for march on the EXL AWD (NO Nav or DVD) also, any type of guidance or thoughts if this will be carried over to April?
Thanks!
MSRP - $35195 (includes dest.)
Best Offer - $30,722 to purchase, $31,722 if I lease using a MF of .00058.
I asked why the difference, they said that if I lease, they can't give me the dealer incentive of $1K as they need it to buy down the lease. Sounds like a load of crap to me. Can you shed some light on this? Is this the dealer trying to bump up their margin or is Honda really not offering the $1K to the dealer if I go for the .00058?
Your wisdom is greatly appreciated!
Is a finance/bank fee (it appears to be $595) standard practice in an auto lease or can it be negotiated out?
Thanks again!
There is no difference in negotiating a price whether it is a lease or a purchase. Remember, a lease is a financing mechanism.
To be honest, that looks like a good price for the $30,722 with the RES.
I am not aware of that incentive, it just sounds too damn fishy.
As far as the $595, well no matter where you lease you are going to pay that Acquisition fee or whatever they call it. Be grateful, I have seen them higher.
Don't waver on the $1,000. Just out of curiosity, if you are thinking you might want the vehicle after the lease period..you should look into the Leadership Purchase Plan.
To clarify, you're saying the $595 Bank Fee is seperate then the $550 destination charge?
Also, does the MF really go up a bit if I don't put down a security deposit? Haven't used Honda Financial before.
Last, can you confirm the residual on the EXL AWD with RES? Have heard a few different numbers from 53% to 58%.
Thanks again. I really appreciate it.
The bank fee is for the "privelege" of leasing.
Yes, the MF will go up without a security deposit. Since there is more "risk" from the banks perspective they will charge a higher MF.
To be honest, last I looked at this you are REALLY better off putting down the $500 deposit. The higher money factor is going to be substantially more than if you put the $500 in a 3 year CD.
In fact, I think that you can even buy down the money factor by putting down additional deposits. It might be something to consider.
Last thing if you are current AHFC customer I thing if you request they will waive the security deposit all together.
Car_man is the best person to ask on the residuals. Let me know how many years and miles you are looking at and I will make a call for you.
Looking at a 3 year, 12K per year lease. Trying to get this done today, so I want to be well prepared.
Is there no way around the bank fee?
I'm interested in a 06 pilot AWD EXL with 15k and 2000 down, could anyone tell me what would be a reasonable monthly payment for this? - I live in the philly region
Thanks for any help
Go read "The return of how to calculate a lease payment"
You will need to figure out what the current money factor and residual percentage is for your vehicle.
http://townhall-talk.edmunds.com/WebX/.ef01891/27
Also, read why it is better to put zero down.
Good luck
Capitalized cost :$26021
Residual: $16097.20
Mileage: 15K per year
Length: 3 years
MF: 0.00068
Monthly payment: $321
I only have to put down $539 which includes the first month's payment and DMV fees.
Is this a good deal?
Here is the deal I'm thinking of signing off on.
2006 Honda Pilot EX-L 2WD
36 months
12K miles
MSRP: $32,395
Negotiated price: $28,247
No money down
No security deposit
Capital Cost: $28,842 (price + $505 acquisition fee)
Money factor: .00022
Residual: $16,845 (52%)
Monthly payment incl tax: $373.33
Drive-off: $678.02 (includes tax, license, first month)
Please let me know what you think of these numbers and if I should hunt around for a better deal.
1. Determine the difference in residuals between the 12k and 15k. When I bought my pilot there was a 3% difference.
The monthly difference in my payment would have been $26.95. So 26.95 times 36 month lease equals $970.
2. IIRC the over mileage rate was 15 cents a mile. So if I took a 12K lease my break even would 6,466 miles over OR about 14,150 miles a year.
In my case -If I thought I was going to need more than 12k but less than 14k, then it will be cheaper to pay the overage.
Now, I have a caveat and a something to consider.
CAVEAT: Life changes during 3 years, job changes, moves, etc. so if you are bumping close to the break even it may be better just to bite the bullet and go with the 15k for peace of mind.
CONSIDER: If you really are intending to purchase this vehicle at lease end, I really think you will be better off economically to purchase it now. If you are going to do a 3 year lease, then finance the residual for more than 2 years I think this is not the best long term economical plan.
Also, you should look into the leadership purchase plan.
Good luck,
I do have this from one dealer: $0 down, 36/15k miles, EX 2WD, 381.99/month(tax included), buy out=$15950.35.
He also offered a purchase at the price of $26700 plus tax, tag, fees. I am awaiting info on the leadership plan as well, do you know if it would be much more per month than a lease?
Thanks
1. Some, not all, Dealers will play the quote a payment game and then when it is time to buy will give you the OHHHHH we gave you the wrong residual.
The residual is non-negotiable. And a 15K will have a lower factor than a 12K. When I was dealing with Rosen Honda, it was comical since I knew the rates at the time HE KEPT quoting me a payment with a 12k per year.
Read this board as the residual has been posted a few times on the Pilot, or email Car_man who is the resident expert .
2. The money factor IS NEGOTIABLE. And you should definetely find out what Honda's promo rate for top tiered credit is. The place I bought the Honda from played the stupid game..OHHH we didnt know honda had that rate. *eyeroll*. So if your credit is top-tier do not waiver on this rate. Once again, send car_man an email and a cigar to thank him *wink*
The Leadership Purchase Plan *is* a lease but designed to LOOK like a purchase. This was developed by Honda and other car makers to avoid vicarious liability lawsuits in NY, CT and some other Eastern seaboard states.
You are leasing the car at a very attractive money factor/interest rate. You can convert the money factor to interest by multiplying by 2400. At lease end you can then finance the vehicle (not sure how long) at the same interest VERY ATTRACTIVE interest rate.
If you have any inkling you may keep the car at lease end, this sounds like an excellent idea to look into.
On that note, if you really ARE going to keep the car, consider Honda has $1,000 dealer cash on a purchase, so consider that option as well.
Happy Motoring
What do they consider top-tier credit? Over 700, 800??.
Thanks for the help!
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