Honda Ridgeline Lease Questions

CarMan@Edmunds

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

Car_man
Host
Smart Shopper / Prices Paid Forums

hazcat

I got $259+ tax a month for 36 months, $2915 down, on an RTS with a $19494 residual. For that $$$, I can live without the sunroof. It's almost as cheap as cash as I can put what I was going to pay in a money market account or cd. I couldn't pass it up as my 1986 Toyota pickup had just croaked and I didn't have all the cash yet for my Ridgie. For cash, the truck would have cost $29590+ tax, $31385.40, before I beat the dealer down more on the price. This way, if I buy it at lease end, it costs $33533.88 with tax. Financing at the most favorable rate, 3.9% simple interest, with the same down payment for three years would have brought the total with tax to $334716.43.

Summary: Cash is King; lease cost $2148.48; financing cost $3331.03, not counting interest earned elsewhere.

Drat, forgot whether cash or the financing route included tag and title fees. My lease includes that stuff.

Also, if the truck holds its value the way Accords, Pilots, and Odysseys do, by my reckoning, it may have a nice amount of equity at lease end.

By the way, when I went by the dealer to have the running boards put on, the salesman came up to me and asked me to refer my friends to him, but "Please don't tell them how much you paid."

CarMan@Edmunds

Congratulations on your new truck, hazcat. Thanks for taking the time to share your lease experience with everyone.

Car_man
Host
Smart Shopper / Prices Paid Forums

shfawaz

For an '05 or an '06 Ridgeline for a 24 month lease. If any lease incentives are available, that would be appreciated too.

CarMan@Edmunds

Hello shfawaz. If you were to lease a 2006 Honda Ridgeline RT through American Honda Finance Corp. right now for 24 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00160 and 68%, respectively. Honda is not currently providing any cash incentives on AHFC leases of this truck.

Car_man
Host
Smart Shopper / Prices Paid Forums

jbam1

Looking at Ridgeline RTL w/Navi for $31,249. Need a lease for 36 months, 12k miles with either 0 down or $2000 down. I was given a monthly payment of $457 and $409 with a .00215 factor through Honda (I believe).

Should I push for a better payment?

CarMan@Edmunds

Greetings jbam1. The lease money factor that you were quoted for this truck definitely looks a little high to me. Honda Finance's current buy rate lease money factor for a 36 month lease of any 2006 Ridgeline is only .00160 with the payment of a security deposit and Honda Finance's $595 acquisition fee. It looks as though the dealer that you are working with may be marking-up Honda's base money factor for this truck to add additional back-end profit to your deal. Make sure that it uses the buy rate to calculate your truck's payment. I would be happy to calculate a sample lease payment for you on the truck that you are interested using the base lease program if you let me know what its full MSRP (with the destination charge added in) is.

Car_man
Host
Smart Shopper / Prices Paid Forums

kayakdog

Hello car_man. I just recieved a lease offer on an 2006 ridgeline rts with a msrp of $30625. The price is $27256 for the truck. $625 down with payments of $351/mo.for 36 mos. and 12k mi. per yr. I was told the residual is 61% Do you think I can do better?

europ91

Kayakdog,

This sounds like a good deal. It is very similar to what I worked out a few months ago. It looks like you are getting the RTS for very close to invoice. You should take note of the lease money factor (interest rate) as it is very important. To get a rough estimate of what it equates to as an interest rate, multiply it by 24. For instance mine was .00147 which converts to an interest rate of about 3.5%. I also believe that the money factor is set by Honda Finance. The one difference I see in your offer is that the residual is only 61%, it was 62% when I leased my RTS a few months ago.

Pull the trigger and enjoy your Ridgeline.

marcus16

Sorry to break it to you, but I've leased several Hondas and unfortunately I don't think I've ever had any equity at lease end. My guess is you'll be upside down too. Just don't get your hopes up.

Everyone pays the tag and title fees.

europ91

I have owned several Honda's and had only leased one prior to my Ridgeline. I leased a 2000 Odyssey LX for 36 months, 45K miles and at lease end I had about $2,300 in equity. The vehicle was worth about 16K and my buyout price was $13,750. I don't know if this is typical or not. The Odyssey's supply was lower than the demand for a few years which probably contributed to this.

CarMan@Edmunds

Hello kayakdog. You are in luck if you have not leased this truck yet. Honda recently enhanced its lease program on it. I will estimate what its lease payment should be like for you using the prices that you mentioned and the new improved lease program. According to my calculations, if you were to lease a 2006 Honda Ridgeline RTS with an MSRP of $30,625 and a selling price of $27,256 through Honda Finance right now for 36 months with 12,000 miles per year, its zero down, pre-tax monthly payment should be around $258. As you can see, this payment is much more attractive than the one that you were quoted last month.

Car_man
Host
Smart Shopper / Prices Paid Forums

kayakdog

Car_man I have not pulled the trigger yet on a RTS lease. The dealer I've been dealing with nearly had me. Today I was there and they tried to get me to agree to a 36mo.,12mi./yr. lease with a trade allowance of $13500 on my 2003.5 Mazdaspeed Protege with 18,000 mi. and a loan balance of $11040. Giving me $2460 of equity. They changed the selling price to $27577.22 and the MSRP to $30590. The residual remained at .61%.and a money factor of .00055. They quoted me a monthly payment of $250.64/mo. The numbers don't add up. If I use the Edmunds lease calculator I come up with a monthly payment of $235.76. However, in light of your information my $2460 of equity should reduce my payment under $200/mo. How do I get the new Honda lease information since the dealer didn't mention it?

fsufan

Car_Man, what do you see as the best deal out there now regardless of vehicle type?
I guess what I'm asking is which vehicles have the best combination of high residual value and low interest rate for 36 month leases with mileage of both 12k & 15k per year. Reading the boards it looks like it may be the Ridgeline?

siny

CAR MAN I JUST RECEIVED THE FOLLOWING LEASE OFFER ON A 2006 RIDGELINE RTL W/ MOONROOF.
SELLING PRICE $28875.00.
10,000 MILES PER YEAR ( I DONT DRIVE OVER 9000.00 MILES IN A YEAR).
0 DOWN.
RESIDUAL VALUE $19582.00.
MONEY FACTOR .000555.
$317.00 + TAX FOR 36 MONTHS.
YOUR COMMENTS ON THIS HONDA OFFER.

kyfdx

Please tell Car_man the MSRP of this Ridgeline... He'll need that info to evaluate your deal..

regards,
kyfdx
Host-Prices Paid Forums

siny

CAR MAN THE MSRP ON THIS RIDGELINE IS $33190.00.
THANKS

marcus16

> The vehicle was worth about 16K and my buyout price was $13,750.

That's impressive. I still assume having equity at the end of a lease is rare, unless your payments were exceptionally high.

racheysdad

I saw this advertised on TV and pulled this from honda's website:

2006 Ridgeline RT (Model YK1626EW). MSRP $28,250.00 (includes destination). Actual net capitalized cost $27,277.90. Total monthly payments $11,718.00. Option to purchase at lease end $16,385.00. 15 cents per mile over 12,000 miles per year with MSRP less than $30,000. For vehicles with MSRP of $30,000 or more, mileage cost is 20 cents per mile over 12,000 miles per year. For $279.00 per month for 42 months with a $326.00 capitalized cost reduction. $1,500.00 total due at lease signing (includes first month's payment, security deposit, acquisition fee and capitalized cost reduction; total net capitalized cost and base monthly payment does not include tax, license, title, registration, documentation fees, options, insurance and the like).

I've never leased before, is this a good deal?

kyfdx

The lease program from Honda Finance is pretty strong, but the advertised lease only assumes a $650 discount from MSRP... If there is competition in your area, I could see you negotiating a lower price...

regards,
kyfdx
Host-Prices Paid Forums

tawneycat

It seems good until you realize the dealer using a cap cost of $27,xxx is only giving a $1000 discount. Now if you get them to drop the bogus cap cost reduction and first months rent and go to 15,000 mile year --that is a good deal. bottom line dealer is making good money on this lease deal more than a straight purchase.
You should fight for another $1000 off in whatever form, less upfront.

cpparkcity

Looks to me like they're buying a higher cap cost with a low money factor (.00055 or 1.3%). Let us know if you are successful in negotiating a lower cap cost with this low money factor.

postal

Hello Car man My Honda salesman is flipping out at this estimate. I am in the New York area and I want the same deal as kayakdog. Can you tell me the formula to use to get this result. First time leasing. Thanks.

Larry B

CarMan@Edmunds

Hey kayakdog. Honda Finance's October buy rate lease money factor and residual value for a 36 month, 12,000 miles per year lease of a 2006 Ridgeline RTS are .00042 and 61%, respectively. This informaiton is definitely right and your dealer will know it when confronted with it. Demand for the Ridgeline is soft enough that you should be able to get the dealer that you are working with to lease you one using this money factor, assuming that you qualify for Honda Finance's top credit tier and pay a security deposit.

It's really not in your best interest to use the equity from your trade as a down payment on this lease. 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 Ridgeline would be exactly the same, regardless of whether you had put several thousand dollars down, or had made absolutely no down payment at all. If you really want the convenience that trading in your vehicle will provide, have the dealer that you are working with cut you a check for it rather than using the proceeds as a cap cost reduction.

Car_man
Host
Smart Shopper / Prices Paid Forums

CarMan@Edmunds

That's a good question, fsufan. There aren't any lease programs out there right now that completely blow me away, but there are still some models that have good programs available on them. Since nothing really stands out, tell me what sort of vehicle or vehicles you need and I will give you a short list of vehicles in that category that have good lease programs.

Car_man
Host
Smart Shopper / Prices Paid Forums

CarMan@Edmunds

Greetings siny. Both the selling price that you were quoted for this truck and the money factor that was used to calculate its lease payment look attractive to me. Let's calculate a lease payment on it using Honda Finance's actual lease program to compare with the payment that you were quoted. According to my calculations, if you were to lease a 2006 Honda Ridgeline RTL with a moonroof with an MSRP of $33,190 and a selling price of $28,875 through Honda Finance right now for 36 months with 12,000 miles per year (I haven't seen Honda Finance's residual values for a lease with only 10,000 miles per), its zero down, pre-tax monthly payment should be around $279. As you can see, the payment that I came up with is lower than the one that you were quoted. One possible explanation would be if you were having your truck's security deposit waived and/or its acquisition fee added into the capitalized cost.

Car_man
Host
Smart Shopper / Prices Paid Forums

CarMan@Edmunds

Hi racheysdad. 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.

Honda's lease program on the 2006 Ridgeline is very attractive right now. Like most manufacturers' advertised lease payments, there appears to be a little room left for negotiation with this deal. The '06 Ridgeline RT lease that Honda is advertising right now assumes just over a $600 dealer discount on a truck that has over a $2,700 spread between its full MSRP and dealer invoice prices. I wouldn't be surprised if you were able to negotiate at least another $1,000 off of this truck's selling price. Doing so would lower its monthly lease payment. For more feedback on Ridgeline pricing, stop by the following discussion: "Honda Ridgeline SUT: Prices Paid & Buying Experience".

Car_man
Host
Smart Shopper / Prices Paid Forums

CarMan@Edmunds

Hi Larry. The formula that is used to calculate vehicles' lease payments is outlined in the following article: Calculate Your Own Lease Payment. Use it, along with the MSRP and selling price of the truck and Honda Finance's 2006 Ridgeline RTS 36 month, 12,000 miles per year money factor of .00042 and residual value of 61% to calculate your truck's lease payment.

Car_man
Host
Smart Shopper / Prices Paid Forums

fsufan

Thanks for the reply Car_Man. I'm really flexible about the type of vehicle, but if I had to stick to one, it would probably be a 4 door sedan midsize-entry level luxury type car. I'm not pressed into buying immediately, so if something really jumps out as being a good deal, please post it. Also, what are your thoughts on the lease deals upcoming in November. I know its all just conjecture at this point, but all the recent news points to October as being one of the worst sales months in recent memory. Is this going to have an impact?

siny

Thanks Car_Man for your input. I called the dealership and requested that they
examine the lease price that they quoted me. I told them that i felt it was on the high side. I was told that there was very little play with the leases and that the price that i was quoted was their "No Haggle Price" . I believe that they won't get back to me by this weekend to test my interest in the Ridgeline. I feel that eventually they will counter with a lower offer giving into the pressure of a slow market for trucks, competitive discounts from other truck manufacturers, and dealership end of month sales goals. I'll keep the board up to date on my results.
Thanks for your help.
siny

tawneycat

OK, I have leased before when manufacturers offer subsized ones. 96 Senta for 129 a month and no down, no 1st payment, no fees for 24 months. Hated the car but for the price....
anyhow, Ridgeline appears to be great bargain IF you can pay close to invoice on cost.
In fact the lease is so cheap I would lease and then buy the truck at the end if I really liked it.
Someone inform me on this. Can the dealer simply sell close to invoice (cap cost) and still make all the fees and holdback like a new sale? The prebuilt honda leases only offer a $1000 discount.... It seems to me dealers make more on leases then straight out purchase. Bottom line if someone can neg cap cost to invoice then payment drops nicely to around $250 for the base RT at 36 months with only about $600 up front. They advertise a $279 x 39 months with $1500 down which appears good until you know the dealer is making about $2000 on the deal.
Someone posted some honda leases where the dealer was discounting RT to the $24,200 level for purchase and close to invoice on lease --since no factory to dealer cash on lease I assume.

http://hondaofbloomfield.com/Specials-PrintAd.aspx

postal

Hello Car man I am still negotiating a deal for this car . Edmunds indicates there is a 1000 dollar to dealer cash rebate. Does this reduce the invoice price dollar for dollar? That brings the RTS down to 26061 cost. That is where I am starting my negotiating from. The Honda lease rated you gave me seems staightforward: 61% residual and a money factor rate of .00042. Is there a honda Rep that I can complain to if I feel the dealer is not willing to negotiate honestly. Just some one who would like to know why the Ridgeline isn't selling well. Yhanks for all your help

Larry B

inkyofok

RT ($28,215) plus wheels dealer says worth $500
25,850 purchase price with alloys added. 12kyr 41x269. Residual $16,700.

This was some screwy deal where dealer had 2 sets of wheels from Jokers who put on 20 inch tires so hence the alloys.

My expericence is that the RT just is too sparse. The RTS adds security system, 8 way power, much better sound, preferred sound controls on steering wheel, different fabric, body colored mirrors, handles, auto climate, Pricey but worth it.

RTS (MSRP $30.600)
27,600 purchase price, 15k year 35x319. Residual $18,000 (60%)

Both zero down, 1st payment in 30 days.
2.51% super preferred. Not sure what that takes.

My experience is that the $1000 incentive is for purchase only not lease/balloon since those deals are subsized it appears.

Thoughts??

swoods

Good Day,
I am new to the forum and still without power or phone after Hurricane Wilma and I need help; here is the dealers final best offer on an RTS: $800 down, $285 a month for 42 months, 12k per year; based on a straight invoice of $27,710 as a starting price. The MSRP is $30,625. The $800 does include my first monthly payment and inception fee.
When I work with the lease calculator and use the money factor and residuals from your recent post I can't make the numbers work? Any thoughts on the offer?

cccompson

These number are similar to those being advertised in the paper by multiple dealers in Central Ohio, both today and last Saturday. I'm no lease expert but it sounds pretty good to me.

kyfdx

I don't have the numbers for a Ridgeline lease.. But, if you are doing calculations, add a $595 acquisition fee on to your selling price to get the cap cost... Your upfront money isn't enough to cover that fee, so it has to be rolled into the lease payment...

That might help your numbers agree with theirs...

But, no matter what... Under $300 a month, and under $1000 due at signing, is dirt cheap for a $30K car, even on a 42 month lease...

regards,
kyfdx
Host-Prices Paid Forums

inkyofok

you may want to check out Honda leadership purchase. Acts like a lease but you are the owner not Honda. Ballon at end or turn in like a lease. Payments should be close regardless (lease a little less since on more payment)
My RTS deal went this way

$27,800 with tint and doc fees

15k per year
zero down. Nothing.
Super preferred rate 2.51%

REsidual $18,000

Payment $320 x 35 and turn in or purchase

Big point 12 k year vs 15 k per year $13 per month==this is how Honda works the residual. Way cheap so I did it even though 12k is my normal use. Regardless, can sell myself and will not matter.

postal

If I lease the car in my name is there any restrictions on my wife driving it?

Kirstie_H

Nope. If she's insured, you're good to go.

kirstie_h
Roving Host
Host, Future Vehicles & Smart Shopper discussions

CarMan@Edmunds

You're welcome fsufan. You are absolutely right about October being a bad month for the auto industry. Everyone who I have spoken with at both the manufacturer and dealer level says that October has been terrible. It is difficult to say whether automakers will decide to enhance their incentives or lease programs in response to the rough month. I suspect that most automakers will try to hold off on doing anything dramatic for another couple of weeks. If November ends up being just as slow, we could see some incredible deals at the end of the month or in December. Of course, as I always say it is difficult to predict exactly what manufacturers will do with their future incentives.

Car_man
Host
Smart Shopper / Prices Paid Forums

CarMan@Edmunds

No problem siny. Let me know if you have any other questions.

Car_man
Host
Smart Shopper / Prices Paid Forums

CarMan@Edmunds

Hi tawneycat. Dealers do get holdback on vehicles that they lease, but they wouldn't stay in business long if they sold or leased all of their vehicles at dealer invoice. You are right though that you will likely be able to negotiate a larger discount on the Ridgeline that you are interested in than the one that is used to arrive at Honda's current advertised lease. I would not be surprised though if you were able to lease a truck like the Ridgeline, for say $500 over invoice right now though. You may be able to get an idea of how much you will have to pay for one right now by visiting the following discussion: "Honda Ridgeline SUT: Prices Paid & Buying Experience".

Car_man
Host
Smart Shopper / Prices Paid Forums

CarMan@Edmunds

Hey Larry. You are correct that Honda is currently providing $1,000 dealer cash on the '06 Ridgeline, however this incentive is not compatible with Honda's special lease program for this truck. It is only available for consumers who pay cash for or finance it. I am not aware of anyone at Honda who you can report a dealer that you have not enjoyed your negotiations with to. Most dealers are trying to make as much money as they can on vehicles and manufacturers understand this. They certainly do not want dealers to cheat and lie to consumers, but Honda isn't going to care if a dealer tried to make a lot of money off of your lease.

Car_man
Host
Smart Shopper / Prices Paid Forums

CarMan@Edmunds

I'm sorry to hear that you are still without power or a working telephone after the hurricane, swoods. How were you able to get on-line? I'm impressed. Dealer invoice is a very good deal for this truck, if you can lease one for that price. According to my calculations, if you were to lease a 2006 Honda Ridgeline RTS with an MSRP of $30,625 and a selling price of $27,710 through Honda Finance right now for 42 months with 12,000 miles pr year, your zero down, pre-tax monthly payment should be around $265.

Car_man
Host
Smart Shopper / Prices Paid Forums

swoods

Thank you for your replies. I was able to get on-line via cable modem. My street now has power and phone but many are still without. Here are some additional numbers that may prove helpful the salesman provided; money facto .00055 without security deposit, residual of 57% for 12,000 per year and 55% for 15,000 per year.
What are the odds that this special lease program will continue in November?

tawneycat

With such a subsidized lease. It almost seems absurd to purchase with a conventional loan other than you could get maybe get $1000 off with incentive but pay 5% for 60 months and the interest would eat that. Cash deal I guess would be best but $265 for a $30,000 truck is really amazing. I went with leadership purchase AKA balloon note (residual set like lease and turn in similiar) on the RTS with tint and mud guards. Features O down, 35 payments of exactly $319 and I went with 15k mi per year since miles are incredibley cheap upfront. $13 per month or $455 total to allow the extra 9000 miles. that is 5 cents a mile! If you go over it is 20 cents on 30k $ Hondas.

I have noted GM products with MSRP around 19000 having the same lease/balloon figures at 30000 dollar Hondas. Honda resale makes is all possible.

mrjjgittes

Wow, $265 a month for 42 months, 0 down, 12k a year, would seem to be a very good deal.Question: Would a zero down lease deal still require me to pay tax and reg. up front?

kyfdx

Generally, you can roll all of your upfront costs into the lease payment.... Your tax will vary according to where the vehicle is registered, but even if it is due all upfront, that amount can be financed within the lease payment..

regards,
kyfdx
Host-Prices Paid Forums

tawneycat

My local Tulsa dealer had RT with alloys advertised at this price with zero down, 42 months, 12k year...
It is a great deal and less risk than buying. Honda holds residual high in anticipation of high value down the road. That remains to be seen so locking in a residual with such low financing makes sense to me.

CarMan@Edmunds

You're welcome swoods. Not surprisingly, Honda did continue its special lease program on the Ridgeline for the month of November. Its 36 month, 15,000 miles per year buy rate lease money factor and residual value for the 2006 Ridgeline RTS are currently .00040 and 57%. This truck's 12,000 miles per year residual value would be 2% higher.

Car_man
Host
Smart Shopper / Prices Paid Forums

CarMan@Edmunds

You're absolutely right, tawneycat. With money factors that are equivalent to interest rates of less than 1% and decent residual values, leasing a Ridgeline right now is a great deal.

Car_man
Host
Smart Shopper / Prices Paid Forums