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Honda Ridgeline Lease Questions

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Comments

  • Hello purduealum91. It's not a good idea to lease this truck for 42 months. Honda Finance's current special lease money factors for it are only available for leases up to 36 months in length. If you were to lease it for 42 months, its money factor would more than double from .00084 to .00250. For now, let's work up 36 month lease payments for you.

    According to my calculations, if you were to lease a 2006 Honda Ridgeline RT with an MSRP of $28,250 and a selling price of $24,927 through Honda Finance for 36 months with 15,000 miles per year, its zero down, pre-tax monthly payment should be around $288. the payment for an otherwise identical lease of a Ridgeline RTL with an MSRP of $32,040 and a selling price of $28,927 would be around $362. I based these leases upon 15,000 miles per year because that is the highest mileage allowance that Honda Finance publishes residual values for. If you need to drive more than this, you will have to purchase additional miles on a per-mile basis. It is less expensive to do so at lease signing than it is to wait until lease-end and have to pay an excess mileage penalty.

    Car_man
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  • Thanks for the additional information, ridge2far. OK, so you were quoted $337 per month for 36 months with 12,000 miles per year for a 2006 Honda Ridgeline RTS with an MSRP of $30,075 and a selling price of $27,061. Let's use these prices and Honda Finance's actual lease program to estimate what this truck's lease payment should be. According to my calculations, if you were to lease this truck through Honda Finance right now for 36 months with 12,000 miles per year, your zero down, pre-tax monthly payment should be around $313. If you opt to have your security deposit waived, which it appears you have done, this payment would increase to around $318. Once tax is added in, this is pretty close to the payment that you were given.

    Car_man
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  • Much appreciated!
  • Thanks Car_man.
  • Hi tberry2. Honda is providing incentives on the Ridgeline right now. Specifically, it has $1,000 dealer cash or a special lease program available on it this month (no, these offers cannot be combined). Let's work up a lease payment for you using Honda's actual lease program and the prices that you mentioned and see what we come up with. According to my calculations, if you were to lease a 2006 Honda Ridgeline RT-L without a sunroof with an MSRP of $32,040 and a selling price of $29,000 through Honda Finance right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $364. I based this payment upon 15,000 miles per year because that is the highest mileage allowance that Honda Finance publishes residual values for. If you need to drive more than this, you will have to purchase additional miles on a per-mile basis. It is less expensive to do so at lease signing than it is to wait until lease-end and have to pay an excess mileage penalty. If you want to have your security deposit waived, it would increase the payment for the aforementioned lease to around $369.

    Car_man
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  • You're very welcome, purduealum91.

    Car_man
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  • No problem, ridge2far. Let me know if you have any other questions.

    Car_man
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  • sirhcsirhc Posts: 2
    Car_man,
    I have inquired to a dealer about an RTL (inc SR) with the same numbers (MSRP, selling price, mileage). He quoted me a $430ish price range. That was with the sales tax included (8.75% here in Buffalo, NY). I'm not getting the same numbers you did. What money factor did you use and did you use a residual of 56% ? Thanks.
  • Thanks a bunch Car_man, I appreciate the solid info. What would 42 months / 15,000 miles look like on the same RTL?
  • What would 36mo, 15,000 miles/year be on a lease? Are people getting these for invoice price? I notice you are giving your calculations based on that.
    thanks
  • leasing ridgeline rtl , need carman to help me on this. I have not purchased the car yet but so far, the deal is 350 a month for 36 mths but with 3000 dollars down. my credit ratings was below 700 abit and some late payments at that with my previous leased car so that didnt help except that the down payment can be of big help to lower my payments, is this good, please help me on this, cause I am very confused reading this forum and I see no one mentioning a down payment...why?
  • What are the Residuals & MFs for Rideglines?

    3 year, 15K/year.

    Tier 1 credit (whatever the best is)

    $0 down.

    Looking at RT or RTL (w/ and w/out sunroof)

    Thanks!
  • Hi sirhc. For some reason, the Ridgeline with a moonroof has a different lease program than models without one. If you were to lease a 2006 Honda Ridgeline RT-L with a moonroof (without navigation) 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 .00084 and 53%, respectively.

    Car_man
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  • No problem, tberry2. You definitely don't want to lease this truck for any longer than 36 months. If you were to lease it for 42 months, you would no longer qualify for the .00084 special money factor, but would have to pay Honda Finance's standard factor of .00250, which is more than double.

    Car_man
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  • Hi knockoff. Dealer invoice might be a little aggressive on a lease of a Ridgeline, but I don't think that dealers are making very good grosses on this truck right now. For more specific feedback on how much other community members have paid for their Ridgelines, try visiting the following discussion: "Honda Ridgeline SUT: Prices Paid & Buying Experience". I'd be happy to work up a lease payment for you on the exact model that you are considering if provide me with its full MSRP and approximate selling price.

    Car_man
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  • Hello jfox54. The reason why you don't see anyone mention making down payments on leases in this discussion is that it is not a good idea to make them. 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 $3,000 down, or had made absolutely no down payment at all.

    As long as your credit score is in the 600's, you still should be able to lease this truck through Honda Finance - even without making a down payment. Your monthly payment will be higher than those that you have seen mentioned here though because you do not qualify for Honda Finance's top credit tier.

    Car_man
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  • Greetings granite_stater. If you were to lease a 2006 Honda Ridgeline RT 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 .00084 and 56%, respectively. The money factor for otherwise identical leases of a Ridgeline RT-L with a moonroof and an RT-L without a moonroof would be the same, but their residual values would be 53% and 54%, respectively.

    Car_man
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  • dmjjpydmjjpy Posts: 11
    A dealer told me today that the "Market Support" does not apply to leases. Is this true? So is invoice a good price to get on a Ridgeline RT in the Seattle area?
  • Car_man thanks for all of the great info on this forum. I'm looking to soon lease a Ridgeline RTL (MSRP $32,040) for 36 months, 12,000 miles per year, zero down. I would appreciate knowing the money factor, residual value % and pretax monthly payment you come up with. Also, does Honda have a lease termination fee if you turn the car in at the end of the lease? Thanks very much.
  • Wow, that's weird... you would expect the sunroof to be a more desirable option in the used market and thus should have the higher residual.. but it's opposite of that. You pay more for the option and then the car is worth less at lease end vs. not having one? That makes it a terribly expensive option.

    Someone will have to explain that math to me....

    Anywho... a follow-up question for you: Do you have residual figures for higher mileage allowances? I'd like to have 3K more miles per year (18K total) and not have to pay $.20/per for them.
  • Hi Car_man,
    I too would like to know if the $1000 incentive can be applied to a lease.

    Is the MF and residual the same for 12K and 15K miles/yr?

    I have negotiated a purchase price of $27,383 for a RTL w/o SR (after rebate), according to my calculations the monthly lease s/b $301 w/o tax. The MSRP is $32,040, money factor .00084 & residual 56%...36 month...12,000 miles/ yr.
    Is $301/ month # correct?

    The lease calculator on the Honda website says $327, why is there a difference?

    Thanks in advance
    PS
  • I hear mention that the rate system is based upon credit score and the best rates are available to top tier credit scores. What's the cut off for the best rates? My score is 743. Does that make it?
  • dmjjpydmjjpy Posts: 11
    Can I ask where you got that quote for $27383?? I'm in Seattle and I can't find a dealer that will budge under invoice! :cry::cry:
  • I live in Maryland and the local dealer's internet sales person quoted $27,383 right from the start.
  • Hi dmjjpy. What the dealer told you is correct. The $1,000 dealer cash that Honda is currently providing on the Ridgeline is not compatible with its special lease program. Dealer invoice is a very good price for a lease of a Ridgeline. For additional feedback on how much you should pay for one, visit the following discussion: "Honda Ridgeline SUT: Prices Paid & Buying Experience".

    Car_man
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  • You're very welcome, pferullo. If you were to lease a 2006 Honda Ridgeline RT-L without the moonroof option through Honda Finance right now for 36 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00084 and 56%, respectively. I'd be happy to estimate what this truck's lease payment should be for you, however in order for me to do so I need you to provide me with an approximate selling price for the one that you want.

    I am not 100% positive, but I do not believe that Honda Finance charges any sort of lease disposition aka turn in fee.

    Car_man
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  • You're absolutely right, granite_stater. Any time a vehicle has an option that reduces its residual value, it really adds insult to injury. Not only do you have to pay for the option, but you have to pay for more depreciation as well.

    15,000 miles per year is the highest mileage allowance that Honda finance leases vehicles with. If you need to drive more than that, you will have to purchase additional miles on a per-mile basis. It is less expensive to do so at lease signing than it is to wait until lease-end and have to pay an excess mileage penalty.

    Car_man
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  • Unfortunately, psailj, the $1,000 dealer cash that Honda is currently providing on the Ridgeline is not compatible with its special lease program. Vehicles' lease money factors are the same, regardless of how many miles per year you are allowed to drive them, but their residual values change. Specifically, Honda Finance's 36 month residual values are 2% higher for vehicles leased with 12,000 miles per year than they are for vehicles leased with 15,000. I just double checked your calculations and I also came up with $301 per month for this truck. I'm not sure why the lease calculator on Honda's site told you a higher payment. Perhaps the latest lease program information is not being fed into it, or it includes a security deposit waiver.

    Car_man
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  • Hi fullwave2. I forget the exact score that one needs to have to qualify for Honda Finance's "Super Preferred" credit tier, but I believe that it is something like 730. With your score, I don't think that you will have any trouble qualifying for Honda Finance's best rates.

    Car_man
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  • Thanks Car Man. Now just have to see how the Ridgeline does against WAF. For those that don't know what WAF is, it's "Wife Acceptance Factor". :)
  • Car Man - Is the Honda Lease Calculator off on their website? Just for arguments sake, I checked a 36 month lease on the RTS using a sale price of 28,600.00 and got $376 a month. A big difference from what I'm seeing with your calculations. That would appear they're not adjusting for any current special rates. What are you showing? Thanks.
  • The selling price is $29,300. Thanks again.
  • Has anyone else been running into this $595 Bank Acquisition Fee? I've been told by two dealerships in CT that Honda chages this fee on all leases. They add it to the net capitalized cost to calculate the lease and it adds about $16 per month on a 36 month lease.
  • I'm currently negotiating a lease on the RTL w/o MR and there's been no mention of a bank acquisition fee. Don't think that will be necessary if Honda Lease is going to carry it. Could it be an issue with credit score requiring them to shop the lease to other bank sources? Don't know.
  • kyfdxkyfdx Posts: 137,195
    The $595 acquisition fee is charged on every Honda Finance lease.. They can roll it into the cap cost (my preference), or you can pay it upfront..

    Virtually every leasing company or bank has this fee.

    regards,
    kyfdx
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  • ssg22ssg22 Posts: 1
    I just read your posting on edmunds.com. I test drove a honda ridgeline rtl today. They gave me a price of 26,700 and said they would lower the cap cost as much as they can. The lease associate said the price was 1000 below invoice. I checked the invoice price on edmunds and it was 1600 below what edmunds had listed. Your monthly payment calculation would be very helpfull. I appreciate it. ssg
  • Where are you located to get $1600 below invoice?
    thanks
  • I'm currently shopping for deals on RTL (w/out SR). I read in this forum that there's special lease program going on now (0.00084 money factor, 56% residual). When is this program good 'til?

    I just received a lease quote from a local dealer and here's the breakdown:
    $1248.67 (regular drive-off?)
    36 months, 12k miles/year
    $340.15 + tax
    residual $17922.80

    shouldn't the residual be $17942 (56% of MSRP $32040)?
    The dealer hasn't provided me with a selling price, yet.

    How does this quote look?
  • The selling price for this lease quote is $27998.
  • $0 down sign & drive, lease for $359. 36 month term. $0 total due at delivery (includes $0 down pymt. $0 first month pymt., taxes, tags & $379 doc. fees.) 12k mi/yr allowance. On approved credit. Residual: $16,385 Money factor .00094 On a scale from 1 to 10 is this a good lease? gmd
  • You're welcome, fullwave. I like the "WAF" factor that you mentioned... well I don't actually like it because I have to deal with it myself, I mean the expression is funny ;) .

    Car_man
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  • Hi everyone. Honda is scheduled to publish its new March lease program today. I should have an opportunity to take a look over within the next day or two. I would appreciate it if those of you who still have questions for me about leasing one post a note for me in this discussion later on this week. I'll be happy to answer any questions that you have on the new program then. Thanks.

    Car_man
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  • mrjjgittesmrjjgittes Posts: 156
    I'd be interested in your analysis of the new program.thanks
  • Hi CarMan..I would appreciate your advice. I want to lease a Black RTL w/ NAV in Texas and was quoted the following. Quoted ,in writing, internet discount $30,674 (includes $550 destination fee). Trade In ('03 Accord EX) after payoff value of $6,062. Dealer quoting me 36m/12K @ $268-277/mo. Does this sound like a solid deal? Per Edmunds..purchase price of vehicle would be $1K under invoice (including $550 destination fee). Thanks for your help! :)
  • According to a visit to my local Honda dealer yesterday, Honda has dropped the money factor from 0.00084/0.00094 to 0.00047 (with security deposit) or 0.00057 (no security deposit) but they've also reduced the residual values, at least on the RTL w/ nav. It's now 52%. This drops the zero down, no security deposit payments by about $20 a month (36/12,000) on a RTL w/nav. Toyota still has a fantastic deal on a Tundra lease (money factor of 0.00025 and a residual value of 63%) and I'm probably leaning that way unless Honda loosens up their lease terms. I can get a comparably equiped Tundra with V-8 for about $67/month less. I really like the Ridgeline, but the Tundra is no slouch and money talks to me.
  • Hi hooligan36. $1,000 under dealer invoice is a good price for this truck. I would be happy to use Honda's current lease program to estimate what your lease payment should be like on the Ridgeline that you are interested in right now, however in order for me to do so I need you to provide me with its full MSRP. For now, I can tell you that if you want to trade your current vehicle in, you would be better off if you had the dealer you are working with cut you a check for it rather than using the proceeds from your deal as a down payment on your 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 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.

    Car_man
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  • Right now I am trying to decide to purchase or lease the honda ridgeline. That 268 price sounds great. can you get that zero down if you dont have a trade in. I was going to stop leasing but at that price under 300 mth, that would save me some money at an estimate of 650 mth for purchasing for 60 mths.

    If anyone can help me to see the forest from the trees, i would appreciate it.
  • dbest1adbest1a Posts: 3
    Yeah 268 a month if your Tier 1 ... otherwise they try to jack your price up ... Then you have to haggle more for the thing.
    I know I am not paying more than 400.. cause if it works out to more than that I am going to finance a 04 or 05 truck..
  • aspesisteveaspesisteve Posts: 833
    so you want to pay $268 per month with zero down and no trade in?

    yea that would be nice, but...

    I don't think you understand that hooligan36 is achieving that payment by trading in a car that has maybe $6k+ in equity.

    am I missing something here - that doesn't sound like a good way to lease a vehicle to me - there's too much $$ being put down up front.
  • miller14miller14 Posts: 9
    Hi CarMan! I am interested in leasing a 2006 RTL without sunroof and navigation. I would like to lease it for 36 months with 15K miles a year. Could you please tell me the residual and money factor on this vehicle right now. Thanks!
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