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Car_man
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Prices Paid: Buying & Leasing Experiences Forum
I have been the following lease terms for a Honda CR-V, 4x4, EX-L with Navigation:
MSRP: $ 29,035
Sale price: $ 27,990 (if financing, another dealer is willing to sell for 27, 130)
Sales tax: 5.5%
Money factor: 0.003
Residual Value: 61% of MSRP, i.e. $ 17711
Miles: 12000/year
Duration: 3 yrs
Monthly payment: $459, zero cash down and security deposit
Is this good?
36 months, 0 down $382.96 a month before tax.
Long Island tax is 8.625%.
We are told the total monthly price including tax comes to $422.15 a month.
How does the tax get figured out?
$382.96 at 8.625% equals $415.99. which is $6.16 less.
The dealer says the tax is based on more that just this monthly price.
He said it's also based on the bank fee, and other cap reduction total tax figures. Does this sound correct?
2008 CRV EX 2WD
MSRP= 23,585.00
36 MONTH/12,000 MILES A YEAR
TOTAL OUT OF POCKET = 1224.00
PAYMENT = 325.00 + TAX (6%)
Personally I think this manager has to sharpen his pencil a little more....any comments or opinions would be greatly appreciated.
Stubby
Today they were really hungry for a deal...they have cars up the wazoo. As soon as I walked in the salesman I dealt with in the past shot right for me, he said he needed 1.5 units to make his bonus for April. I was almost gonna sign the papers and take delivery today....but alas I told him I would see him in on the 30th of May. These are the numbers the sales mgr was ready to rock and roll with today.
2008 CRV ex 2 wd
36 month/12k
Sign and Drive. Nothing out of pocket!
344.00 per month 6% tax included!
According to my calculations this is very close a tissue (invoice) deal, maybe even a tad into the hold back. Now my hopes are next month I'll be able to get an EXL for 365.00...one can only try.
Stubby
Purchase price $22,535 (higher than MSRP - added options?),
$0 down with monthly payments of $269, 36 months, 12k miles. Wasn't really $0 down:
Bank fee: $595
1st month: $269
DMV (in NJ, where I live, its 3 yrs prepay): $370
Taxes (NJ rate of 7%): $786
Contingent Tax ("exclsuive to NJ"): $92
TOTAL: $2,112
The manager told me that in NJ, they calculate the sales tax PLUS some interest factor (true?) - hence the higher figure. Whatever.
When we were ready to get this done, they informed us that the financing was done through a non-HONDA Bank: essentially negating the $1,500 deductible to be applied to excessive wear and tear. The financing arm I was going to sign up with did not give you the $1,500 deductible AND charged $450 when the CRV was returned at the end of lease.
I was ready to walk. The manager came back and said he'll try to get Honda Bank. A few seconds of waiting----its a deal...except its now going to cost $279 a month, all other terms remain the same. He had the gall to tell me its really a wash b/c I now didn't have to cough up the $450 when the leased CRV was returned.
Honda Finance quoted a 61% residual and .00235 monthly factor.
I'm getting approximately $297 (a rate higher than the $279 my parents are paying).
Thanks for help people.
Also, don't over look the disposition fee, a lot of banks charge that, so technically, you are saving yourself $450 by not having to go through a 3rd party bank.
Lastly, unless your parents leased a CRV around the same time as you, I don't think you can compare since rates change monthly.
Car-man, can you provide the residuals and May's money factor for the CR-V (AWD) EX and EX-L?
Car_man
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Also, definitely download this worksheet. It was extremely valuable. Honda barn was the only dealership where I could get the quoted numbers (cap cost, fees, mf, residual) to reconcile to the spreadsheet calculations.
Car_man
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3yrs/15000 miles per year
Roof rack accessory (app. $400)
5 yr/60,000 Ext. Warranty (app. $800)
Sales tax (5%) and doc fees included
No money down--only payment is 1st months payment
Security deposit waived
Lease payment- $385 per month.
Thanks.
Like you, I generally like to be in warranty for the entire lease term, but I've leased three Accords for a total mileage between 45K and 54K on each of them... and never had a repair bill..
Keep the $800 in your pocket, and take your chances... It's a Honda!
regards,
kyfdx
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3yrs/15000 miles per year
Roof rack accessory (app. $400)
5 yr/60,000 Ext. Warranty (app. $800)
Sales tax (5%) and doc fees included
No money down--only payment is 1st months payment
Security deposit waived
Lease payment- $385 per month.
Thanks.
Hondas come with 3/36 bumper to bumper, and 5 years/60,000 mile power train warranty. So, if something "major" were to fail, it will be covered by the power train warranty. Anything else will probably cost less than $800 to repair.
So here's the deal I drove off with,
2008 CRV-EX
Dark Blue Gray Interior
12,000 miles per year
3 Year
NO MONEY DOWN at all!
Pure "sign &drive"
364.47 a month 6% sales tax included.
They took the gas guzzling "Pacifica" and when they went to move it the battery was dead, I guess it was time.
I think I got a good deal.
Thanks for your help
The residual was 62%
I think the money factor was .00235
Rick Case was higher, the salesman at Rick Case told me on a follow up call they don't take short deals...Plus you gotta remember this is the seventh car in 10 years I have purchased/leased from CS Honda.....so.
Good Luck!
Tell me, what does the short deal Rick Case salesman refers to? Is it a single vehicle or a new customer?
Drive safe,
Drive safe,
I looked at a Honda CR-V MSRP $26k and the salesman quoted me $468 per month on a 36 month lease with zero down. I could've got a bank loan for $430 per month. The lease rates on most of the Hondas are ridiculously high. That is the point of leasing, to lower your monthly payment.
Car_man
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I agree, leasing never made sense to me, except if you just dead set on having a new car every 3 years. Even then, you can "self lease" and do it on your terms.
If you time your purchase with financing incentives from Honda, you can get 2.9 for 60 months, no problem, with good credit of course. $20,000 at 2.9% for $60 months is about $350/month.
After 3 years of paying $360/month you will have paid $12,600 and owe about $8,000 on the loan. If you were to sell a 3 year old CR-V with 36,000 miles, you could get anywhere from $12,000 to $17,000, depending on whether you trade in or sell privately. Use portion of that money to pay off the loan, and you have a solid $4,000 to $9,000 in your pocket. This is the money you wold have given to the leasing company, why not keep it your self?
A 3 year lease would cost anywhere from $350 to $450 per month. Add acquisition fee, security fee and other lease associated fees and your total for the 3 years is between $12,600 and $16,200 or more. You have no equity in the vehicle and have nothing to show for the last 3 years of payments.
Would anyone be so lazy to not to bend down and pick up $4,000 to $9,000 laying on the floor? They are doing it with leases on Hondas every day.
This only works with vehicle that have high resale value. Most domestics depreciate so fast and so badly that leasing is probably more efficient.
For example, if MSRP on a 2008 CR-V is $22,000 and residual is 62% then it will be worth $13,640 at lease end. Even with a modestly negotiated net cap cost of $21,000 your base monthly payment before rent charge would be $204. Unfortunately, the rent charge is an additional $81 A MONTH!!! If your tax rate was 8% your payment ends up being $308.71 per month for 36 months. That is actually lower than the $364 the poster above said he got on his but in my opinion is still WAY TOO HIGH. I think about $250 with tax is resonable. Over $350 per month DOESN'T MAKE SENSE.
One of my friends just leased an 08 Mercury Mariner 4X4, sign and drive, for 36 months for $266 per month with 7% sales tax included. MSRP was a little over $25K. The key here was the lease rate was 2% versus Honda's 5.64% and unlike Honda dealers, the Mercury dealers acutally like to negotiate a lower sales price and actually have lease cash rebates to work with. $266 PER MONTH MAKES SENSE.
If Honda actually wants a lease program they would set the lease rates lower and have additional lease cash incentives and dealers willing to negotiate. Honda obviously does not want a lease program. I wouldn't lease a car from any manufacturer which has a 5-7% lease rate in June, with no additional incentives and no dealers willing to negotiate a good sale price on a vehicle that has been sitting on the lot since August. A slightly lower residual on a competitor's model doesn't even play into account when you get a lease rate of 1-2%, plus lease cash rebate incentives, and a good dealer willing to knock off a chunk of the over inflated 8 month old sticker price.
In my opinion, if you can't save at least $75-$100 per month leasing versus actually buying, DON'T DO IT.
Zed
My math goes something like this - leasing for three years saves me $3,600. After 3 years, I owe nothing and have nothing. If I buy, after 3 years, I still have payments for the car to own it of about $12,000, and the residual value is about $15,400 ... so maybe I break even if i sell it after three years for a value above the residual. Don't understand the argument for buying via financing and then selling. I guess if the rates are hugely varied a case could be made, but this is not the case in the example i used. thx
CRV EX 4WD - $332/month including tax
MSRP: $24,785, Selling Price: $23,316.71
MI sales tax of 6%, initial payment, doc fees, bank fee included. Can anyone point me to the current money factor, residual, invoice price. I think this is fairly good deal and probably $500 over invoice. Does anyone have any luck on getting close or below to invoice?
MSRP
RESIDUAL
MONEY FACTOR
NET CAP COST which is the SALE PRICE plus ALL fees involved.
TERM (MONTHS)
The formula is:
BASE PAYMENT= CAP COST minus RESIDUAL divided by term
RENT CHARGE= CAP COST plus RESIDUAL multiplied by Money Factor
Add the two together and depending on your state, you add the sales tax to the total monthly payment OR you may have already added them in to the Cap Cost. Some states are weird like that.
MSRP 27,835
Residual 15,400
Money Factor .0026
All in cost 28,000
36 month lease; 60 month financing for purchase (at 4.84% best financing rate)
Any more info would be appreciated.
A loan for $28,000 at 4.84% for 60 months would be $526.34 per month not including sales tax.
If you want an opinion it would be, FIND A DIFFERENT CAR. A $28,000 car should not be $462 a month on a lease. You could get a $28,000 Ford Edge for at least a hundred dollars less per month.
You probably got a pretty good deal compared to other CR-V leasees, but it isn't a good deal compared to other makes and models. A $23,000 car should not be leasing for $320 per month. The guy above was talking about getting a lease of a $25K 4WD Mariner for $266 a month. THAT is a good deal.
$360 a month for 36 months with the first month's payment down for 12,000 miles a year on the 2008 Honda Cr-V Ex-L 2wd with cargo tray and the all season floor mats
Barbara
What is the MSRP on the vehicle you are looking at? What is the selling price?
Car_man
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Car_man
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Car_man
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36 months/15,000 miles
$1500 at signing which includes 1st month and all fees
$365 per month (plus tax which in NJ brings it to about $390)
This was dealer's first offer so I think there is some room).
Good deal?
Personally, I leased a Ford Edge, MSRP $33,885 for $350 per month. I looked at the CR-V's but the dealer quoted me $468 per month on one similarly equipped, leather, moon roof, heated seats, nav. The Edge had 0.75% lease rate. That means I pay around $10 or so of my payment to "rent charge" vs your CR-V's $90+. To me it was more vehicle for my dollar to go with the Edge.
Also, to let you know, you are not the only one trading in your leased vehicle for equity. I traded in my leased F-150 6 months early and they gave me $1,200 "TRADE IN" on it. Also traded my SAAB 4 months early a few years back for "equity.' It's not uncommon if they want to sell you a vehicle that day. You are never actually getting trade in value. The dealer simply moves the money from one place to another.
I turned in my 2004 TSX after leasing it for 3.5 years. I extended the lease 36 month lease. I could have purchased for $17K at the termination of the lease, but I could have easily sold it for $25,000, as the car was worth that. The dealer gave me $2600 for the car, they put it up for sale for $24k and it was gone in a week. With a Honda or Acura you have a far better chance to pull this off vs with an American car. So if you want quality, resale, you may pay more on a lease....but you get what you pay for is what it all boils down to.
I had previously had a 2005 Pilot. That is a comparable price to the Edge, I leased that for $328/month.
Knowing what other people have paid for the CRV, I know I got a good deal within the confines of the figures. The board definitely, provided direction for the deal and I thank everyone for that.