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Car Buying Advice - 2017 Honda Pilot EX-L AWD Leasing question

irishys17irishys17 Posts: 29
edited June 2017 in Honda
I am currently in negotiations for a 2017 Honda Pilot EX-L AWD - leasing for 36 mos/36K miles in NJ and want to check on some numbers. I am going between 2 dealers...each difficult in their own way.

1st Dealership is saying MSRP: $39,195 Adjusted Selling Price - $37, 195 MF= 0.00195 Residual 65% with a monthly payment of $413.02 pre-tax. ($441.54 w/tax). Due at signing = $3403.92 if I pay the tax upfront or $2381.52 if I don't. These numbers include me putting $618.88 out of pocket and a $500 dealer cash if I jump through some hoops (see below).They are giving me a hard time about ending our current lease 4 mos. early and won't tell me if the dealership will buy the car (which is in great condition) until they appraise it. They are being deliberately vague on this issue and on other specific questions I'm asking. This ($500 dealer cash) deal is contingent on my "liking" the dealership on Facebook and giving them a 5 star review on Google prior to them agreeing to it. Past history with this dealership has been sketchy when we got to the financial guy and signing papers.

2nd Dealership is saying MSRP: 39,345. MF = 0.00195 Residual 65%. Initially we were working with a Monthly payment of $447.65/month including the tax. Due at signing = $2205.15. Now they're saying a monthly payment of $429/month (I am waiting to hear if that includes the tax) and $2381.00 due at signing. What they won't tell me is the Adjusted Selling Price. They are buying our current vehicle sight unseen without rolling payments into the lease or having us pay the last 4 payments. Free oil changes and tire rotations for the life of the lease and not making me give a review prior to having an experience in their dealership. No prior history at this dealership.

So...which is the better deal?
And...is it better NOT to pay the tax upfront? We did that last time to lower the monthly payment...but now are turning the car in early so I feel like we lost that money :-(
All help is appreciated.

Answers

  • MichaellMichaell ColoradoPosts: 128,356
    Regarding the trade, you need to do a bit of research to put yourself in a better position.

    Call the bank you have the lease through and get the payoff amount. Then, take it to a local CarMax and have them give you a trade value. Or, jump over to the "Real World Trade in Values" thread and hit up the experts there. The more information you have about the payoff and trade value, you can negotiate that aspect of the deal just as much as the new Pilot. Dealers will often roll the remaining payments into the new lease if you don't know the numbers.

    Next, we recommend you only pay the first payment and DMV costs when you sign the paperwork. Add all the other fees and taxes to the selling price. As you've noted, if you terminate the lease early, those pre-paid costs will be lost.

    Lastly, have the dealers provide you with the adjusted cap cost - this will be the negotiated selling price plus the taxes and fees you aren't paying up front. Make sure you understand the math between the two numbers - every fee, tax, etc.

    Knowledge is power - take the time to arm yourself, then go make your best deal. Get the dealers to compete against each other to get the best price. Engage as many dealers as you're comfortable traveling to - ought to be quite a few in NJ.

    Did you get a good deal? Be sure to come back and let us know! Post a pic of your new purchase or lease!


    MODERATOR

    2015 Subaru Outback 3.6R / 2014 MINI Countryman S ALL4

  • jayr1njjayr1nj Posts: 41


    Knowledge is power - take the time to arm yourself, then go make your best deal. Get the dealers to compete against each other to get the best price. Engage as many dealers as you're comfortable traveling to - ought to be quite a few in NJ.



    I'm doing some research as well in order to get the best deal possible. So far the information I've found throughout various sites is pretty consistent except for the term "rent charge" I dont see this in any of the calculations done here. Some clarification would be greatly appreciated. Another thing is why is there such a big difference in MF from one manufacturer to the other? I know the bank sets that number but comparing the MF from pilot and highlander there is a huge difference. Thanks for the help!
  • kyfdxkyfdx Posts: 134,721
    jayr1nj said:



    Knowledge is power - take the time to arm yourself, then go make your best deal. Get the dealers to compete against each other to get the best price. Engage as many dealers as you're comfortable traveling to - ought to be quite a few in NJ.


    I'm doing some research as well in order to get the best deal possible. So far the information I've found throughout various sites is pretty consistent except for the term "rent charge" I dont see this in any of the calculations done here. Some clarification would be greatly appreciated. Another thing is why is there such a big difference in MF from one manufacturer to the other? I know the bank sets that number but comparing the MF from pilot and highlander there is a huge difference. Thanks for the help!


    Rent charge is the finance portion of the lease payment. The part that is determined by the money factor. When you see it on the lease contract, it's usually the total rent charge for the full term of the lease, not the monthly charge.

    Captive lease companies set money factors and residuals to get a payment that will sell vehicles. The more popular the vehicle, the more they can charge.

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

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