Honda Fit Lease Questions

CarMan@Edmunds

To discuss the latest lease details for the current model, please join us in the 2015 Honda Fit Lease Questions forum.

You can also research local dealer inventory and pricing, reviews, features, and specifications on Edmunds 2015 Honda Fit page.

pcat1

I do have a question. I am thinking about leasing a Fit for 60 months, only to get the payment to $218. The salesman said he would put in writing that I could get out of the lease after three years.
My main concern is my monthly payment.
What do you think of this deal? It is for 12,000 miles per year, which is fine for me. $1000 down.

makabe

You need some more information to determine if this is a decent price or a complete rip-off (I'm leaning toward thinking it's a complete rip-off BTW). You need to know what the residual value of the car will be, the interest rate, and the price of the car. A common mistake people make when leasing is that they don't negotiate the price of the car, but rather only the lease payment. Dealers like to say "the bank is buying the car" so they don't like to disclose what the purchase price is, but it isn't a secret. Just make sure you are getting the car for MSRP--not the "kick me" price of $2500 over sticker. Next you need to see what the residual value of the car will. On a 5 year old Fit, this should not be very high. This is the price you will asked to pay to purchase the car at the end of the lease. Obviously, if the residual is higher, then you will have to make lower payments over the life of the lease, BUT, it will cost more to purchase the car outright. Last, find out the interest rate. A 1% difference on a Fit is $900 in payments. Any money you put down at the beginning of the lease is pure profit for the dealership, and goes straight into the dealer's pocket. On a car like the Fit, the dealer NEEDS you to put money down to offset trying to charge too much money for the car in the first place. To put it another way, if the dealer is selling the car to the bank (which in a lease is essentially what they are doing), they can not sell it for $1000 over MSRP, so they get you to put in the $1000, and sell the car to the bank for MSRP, and you make all the payments. Don't you just love leases? Lastly, a five year lease is way too long. I understand wanting to get a certain payment, but with a lease, that payment is fiction because you still have to decide to "buy" the car at the end of the lease and that means a new loan.

Bottom line: get the price of the car, interest rate and residual value and we'll then be able to tell what kind of deal this is.

pcat1

price of car: $15,200 plus tax, title and lic
interest: approx. 4.5%
couldn't give me the residual, he said until we work the contract up.

johnnyvj

Don't SIGN anything until he discloses the residual and anything else you want to know.

If he's very reluctant to do so, that's a BAD sign and you should get out ASAP.

makabe

Based on your numbers, and assuming $1000 down, the residual should be no more than $5391. (15200+tax, lic, title-$1000=$16000 financed) If it is more than that, then they are either charging you higher interest or not applying your down payment properly or charging more for the car. One other important thing to note: if you don't exercise your option to buy at the end of the lease, you walk away from any equity you may have in the vehicle. If you do decide to buy at lease end, you'll still owe $5391.

Leases are really tricky--you can get totally screwed at lease end with nickel and dime charges. Be very, very careful.

pcat1

Ok. I was also thinking maybe I should purchase, since I am going for a 60 month lease, it might be better to purchase. And this web site has the MSRP for the Fit as $14650. He is quoting $15,200. Should I make him come down the MSRP price, whether I buy or lease?

makabe

His price is MSRP + $550 delivery = $15200. Delivery is a totally standard charge. Documentation fees however are not standard and range from $50 to $500. Go for it. My gut tells me they are going to try and stick it to you on the interest rate--I've not seen lower than 5.5% on loans lately.

rjw1

I am hoping to do a 36 mo lease on a FIT sport AT for 15k miles/year.

Does anyone know what the top tier money factor should be for the FIT?

frayadjacent

Lease a car? Best advice: DON'T.

jimmy5150

Why?

Cars are tools. Use them and lose them.

If you purchase cars every few years, only to trade them in and "break even" or lose a grand here or there, a lease payment that's $100 a month lower than the purchase payment, wil save you $3600 over 3 years.

Will you have $3600 of equity in a car after 3 years....probably not.

Don't go over the miles. Don't have an unusual amount of wear and tear. Don't have any thoughts of bailing on the lease before its termination date.

Leasing works very well for some people...it can make a lot of sense if you're looking to minimize cash flow to have a desired vehcile.

Cars are a depreciating asset, unless its a Shelby Cobra.

amrie

One dealer I'm negotiating with said that the 12K residual values for the Fit Sport AT are 36=$9749, 48=$8095. These are through Honda Finance, I think.

flightnurse

I stopped by one of the local Honda Dealers to look at the Fit, liked what I saw... Spoke to the Finance Manager (that is what I was told) about leasing a Fit Sport not too sure if i want to the Auto or Manuel. My average Credit score is 622, I'm rebuilding, haven't been late on any payments for 2+ yrs, all but student loans are paid off, and they are $150/m, I was wondering if Honda would finance me in a lease?? I'm looking for the lowest payment for 3 yrs in a car tht wont cost me much to use. What do you people think ??

Tony :P

CarMan@Edmunds

Hi pcat1. Sixty months is way too long to lease a vehicle for. A lot can happen during the course of five years to make you need to get out of your vehicle and it is often very expensive to get out of leases early. Let's say that your family expands and you need a larger vehicle, or perhaps you just don't find the Fit comfortable after driving it for a while, or your commute changes causing you to go way over your mileage allowance, etc... You would be much better off leasing this car for 36 to 39 months. You absolutely cannot get out of a Honda Finance lease after three years for free. While it is possible that you would be able to get out of a lease early if your vehicle is worth significantly more than it would cost to purchase on the open market, this scenario is unlikely.

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CarMan@Edmunds

Greetings rjw1. As one would expect with a brand new model, Honda is not currently providing any sort of lease support on the Fit. As a result, if you were to lease one through Honda Finance right now, you would have to use its standard lease program. Its current buy rate standard lease money factor for 36 month leases is .00270 for consumers who qualify for its "Super Preferred" credit tier and pay a security deposit at lease signing. I believe that Honda Finance's current 36 month, 15,000 mile per year residual value for a base 2007 Fit is 57%.

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CarMan@Edmunds

Hi Tony. Even though your credit score is a little low, you probably will still be able to lease a new vehicle through Honda Finance. You won't qualify for its top credit tier, but a score of 622 would put you in its "Standard" aka third tier.

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psharpe

Why not judge a Fit lease on the basis of $/month? All else equal, such as no money down, 12,000 miles per year, and 36 month term, same model Fit etc.

If that is the case; $0 down, 36 months, 12,000 miles per year; what are you paying for a Sport Auto?

Thanks,
PWS

CarMan@Edmunds

Hi PWS. There are so many aspects of deals that dealers can manipulate, the easiest way to get a good deal on a lease is to negotiate the lowest possible selling price on the car that you want, just as if you were financing or paying cash for it, and then have the dealer calculate its lease payment using its captive finance company's buy rate lease money factor. Since the money factor and selling price are the two main profit centers for dealers on leases, negotiating this way almost assures consumers of getting a good deal.

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mrcheap666

Hey Car_man,

I wanted to get the MF and residuals for leasing the Honda Fit Sport model or the Fit Base model, with automatic transmission.

I'm in Houston, TX and would need a lease for 24mths, with 15,000 miles/year.

Thanks
MrCheap666

CarMan@Edmunds

Hello MrCheap666. Honda is not currently providing any sort of lease support on the Fit. As a result, if you were to lease one through Honda Finance right now you would have to use its standard lease money factors. Honda Finance's current buy rate standard lease money factor for 24 month leases is an unattractive .00398. This is equivalent to an interest rate of around 9.6%. You would be much better off leasing this car for 36 months. Its buy rate standard factor for that term is a much more reasonable .00293. Honda Finance's 24 and 36 month, 15,000 mile per year residual values for the '07 Fit are currently 64% and 56%, respectively.

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bmb33

hi

I am also considering to lease a honda fit because I might need a car for no more than two years. with information on the internet and different suggestions from friends, I am now so confused. Which way is better, to lease one or to buy one then sell it? Is lease kind of similar to having a car loan? Thank you for your help.

CarMan@Edmunds

Hi bmb33. Sometimes leasing makes more sense than buying if a manufacturer is providing lease support but no other special promotions on the vehicle that you want. BMWs are often an example of this. Unfortunately, Honda is not currently providing any lease support on the Fit. As a result, if you were to lease one through Honda Finance, you would have to use its standard lease program which is nothing great. There's nothing wrong with leasing this car. Theoretically one would come out about the same if they had leased it for two years or financed it and sold it at the end of two years. So whether you want to lease or buy is more a matter of personal preference than anything.

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bobw3

as long as you keep the miles low.

hbodu

If you only are needing the car for 2 years, I would lean towards leasing it. If you get a 60 month loan, you would probably be upside down in the loan 2 years. You would not have the trouble or expense on a private sale (remember, in 2 years the redesigned Fit might be available). At the end of 2 years, you would owe nothing (provided no excess damage or miles).

gustavonetto

I got an offer for a Honda Fit sport AT for $15,900. My credit score is above 740 but even them the dealer is saying that Honda isn't lowering its APR. He's asking for 7.7%? I think it's too high? anybody could give a peace of advice? Thanks, Guga

CarMan@Edmunds

Hi Guga. Honda is not currently providing any special financing rates on the 2007 Fit. You really would be better off getting pre-approved to finance this car on your own by a local bank, credit union, or a bank that conducts business on-line before going back to the dealer. Getting pre-approved to finance this car serves two purposes. One it gives you an idea of what sort of interest rate you qualify for and two it often motivates dealers to try to beat the rate that you already have. With your credit score, you should be able to do better than 7.7%.

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newcarny

Hi,

I am moving out of NYC for 18 months and need a car, but most likely the car will just be a pain in the neck if I bring it back to the city after that. I like the Honda FIT and think I'd rather be driving a new car than a junker.

Is it possible to lease for 18 months, and if so, does it make sense? Would I be able to lease with the option to buy?

:confuse:

CarMan@Edmunds

Hi newcarny. Unfortunately I believe that 24 months is the shortest term that Honda Finance leases vehicles for. to be honest with you, it will be expensive to drive a brand new car for only 18 months regardless of whether you purchase or lease it. New vehicles experience their highest rate of depreciation during the first year of ownership. You may want to consider purchasing a used vehicle and driving it around until you need to go back to the city. By going used you can avoid that nasty huge initial depreciation hit.

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Karen_S

A reporter with a large finance magazine is hoping to talk to consumers who just purchased or looking to purchase a more fuel-efficient car for their daily commute. Please reply to ctalati@edmunds.com no later than Monday, October 8, 2007 with your daytime contact info.

anti2

I'm looking for the money factor and residual on a 2008 fit sport AT. MSRP is 16705, with no extra sealer options. I'm interested in a 36 or 48 month term with 12k miles/year.
Thank you

CarMan@Edmunds

Greetings anti2. Here is the information that you're looking for. Honda Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2008 Honda Fit Sport with 12,000 miles per year are .00270 and 57%, respectively for consumers who qualify for its top credit tier and pay a security deposit at lease signing. The numbers for an otherwise identical 48 month lease are .00255 and 48%.

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mr2freak

Hello

I'm hoping to find out the current 36 month money factor and residual for a fit sport AT.

Would like to do a 36 month 10-12k mile lease. What should I expect out the door?

Thanks!

dwynne

Honda has no trouble selling Fits, so they have no lease specials on them. As CarMan posted the standard lease rate is a whopping 0.00270 or higher on them. You can get a better rate (but a lower residual) through a 3rd party lease bank via your dealer or online at www.leasecompare.com or any other lease broker.

The car just does not lease well due to a low (relative) residual and the high MF. Right not you could probably lease a Pilot, Odyssey, Element, Ridgeline or even a Civic for less per month than a Fit sport would cost you. If you just have to have a fit, then I would just buy it. Check the lease "specials" online at Honda and they will show good deals (which you can make better by negotiating a lower price) on all the models and nothing for the Fit.

Dennis

mr2freak

Thanks for the reply.
I kinda figured the lease would be rotten and I'm starting to wonder why Honda is able to sell the fits? I love the little thing but theres cheap money right now ($199 camry ect) and I cant see the sense paying msrp and a 6% loan on tier 1.

Are people buying the car with cash or large trade in's so they can put 200k on them?
Or altruistic earth bunnies paying more to pollute less? :confuse:

dwynne

They are cute (to some) and cheap (sort of) and a Honda. Who knows why something sells and others do not. I am on my 2nd S2000 and I love it, but Honda can't sell those unless they offer cheap leases or dealer money and then they STILL can't sell them. Ditto the Pilots and pickup trucks. They have little trouble selling Civics (but I think Fit sales eat into Civic sales) but have to prop up Accord sales with deals - except when the new 08 Accords first came out. CR-Vs almost never have any incentives on them either, they just can sell those without needed any "help".

It is supply and demand and as long as dealers can't keep them on the lots they don't discount them (some even charge over MSRP). As long as Honda sells them as fast as they make them then they are not going to offer any promo deals on them.

I don't know is buying them and why they do, but I have a friend with one and they love it - but paid full price. When my daughter purchased her Civic in 06 we could have purchased a similar Accord for LESS money (due to incentives and dealers willing to deal on price) but she paid MORE for a Civic because that is what she wanted. I guess that is why folks buy them - they are hard to get and you don't see them everywhere, they are Hondas, not too expensive, and get great MPGs. Most folks don't lease and just let the dealer do the financing deals so they don't see they could have (to some) more car for less money getting something else. Quite often folks pick the car then try to find the deal and they don't pick the deal and settle for whatever car that ends up being.

There is also something that spurs folks on when they are told that something is hard to get or rare or limited - that just makes that even more attractive. If there were dozens of Fits sitting on every lot and you saw them everywhere in traffic, the appeal would drop some, I would think.

Dennis

CarMan@Edmunds

Hello mr2freak. Here's the information that you're looking for. Honda Finance's current buy rate lease money factor and residual value for a 36 month lease of a base 2008 Honda Fit with 12,000 miles per year are .00255 and 56%, respectively for consumers who qualify for its "Super Preferred" credit tier and pay a security deposit at lease signing. I don't believe that Honda Finance offers leases on Honda division vehicles with only 10,000 miles per year.

The '08 Honda Fit only has a $500 or so spread between its dealer invoice price and its full MSRP, plus Honda is not currently providing any cash incentives on it, plus it has been selling pretty well. As a result, don't expect to get much of a discount, if any, on one right now.

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mr2freak

Thanks for the info guys.

I got a BS figure from the dealer on the residual for the fit so they quoted me a lease in the 350/month range :surprise:

I seem to be unable to get the lease calculator to spit out figures that look decent--operator error I'm sure.

Using the .00255 and and 500 off msrp its giving me 295 a month? Yikes.
60month finance is only a few bucks more.

EDIT: I just plugged in the figures from some of hondas advertised deals and it works out when I pull out the tax and reg so I guess I was just shocking myself with the numbers generated by putting nothing down Comparing the fit against the 199 civic lx sedan deal the fit seems to cost about 215 a month even considering the rotten money factor. So I guess its just a matter of which one we like more.

CarMan@Edmunds

You're welcome mr2freak.

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movingsale45

I am thinking (lease ) 90 Corolla S VS 09 Honda Fit Sport ? which is better deal
SF BayArea, CA thanks

leetchie69

No posts in almost a year?

Has the leasing forum moved or something?

Has anyone leased a Honda Fit recently? Is there any support for it?

Current MF/Resid?

CarMan@Edmunds

Hi leetchie69. Honda is not currently providing any lease support on the Fit. As a result, if you were to lease one through Honda Finance, you would have to use its standard lease money factor. Its current buy rate standard lease money factor for 36 month leases is .00285. I would be happy to provide you with the residual values for this car if you tell me exactly what trim level you want.

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leetchie69

Hi Car_man,

It would be for a Honda Fit Sport w/o Navigation

CarMan@Edmunds

Thanks for the additional information, leetchie69. Through September 8th, Honda Finance's 36 month, 15,000 mile per year residual value for a 2009 Fit Sport with Navigation is 56%.

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pjp9543

Hello, Car_man--

Honda recently began offering "Closed-end lease for 2010 Fit 5 Speed Automatic (Model GE8H2AEW) for $210.00 per month for 36 months with a no capitalized cost reduction available to customers who qualify. . . ." It's here: http://tiny.cc/6f1hh

They also offer a "Closed-end lease for 2010 Fit 5 Speed Automatic (Model GE8H2AEW) for $149.00 per month for 36 months with a $2,250.00 capitalized cost reduction available to customers who qualify. . . ." I would qualify for either package.

I've never leased before--so I'm educating myself about the ins/out (although I do know some parts of leasing and terminology). These terms seem acceptable. I know this is a general question, but do you have advice to offer? Which deal is "better?" We would prefer the manual transmission sport model--would dealers deal?

They also offer financing at 0.9. Less preferable, we would likely not buy a new car outright. Any thoughts are welcome. If too general a question, thanks for reading. I'm in western MA.

PJP

accordguy0325

Hello

I hope you don't mind my weighing in but I just leased a 2010 Fit Sport and figured I may be of some help on the subject (or so I hope).

I noted your question " Which deal is "better?" in regards to whether putting money down is better than not doing so. I think the less money you put down on a lease the better.

As Honda ultimately owns the car during your lease, I think putting zero down is a better deal for you and your checkbook. One scenario I just recently became aware of is, suppose you put a few grand down and total the car in 6 months from now - or its stolen... The money you put down is NOT recoverable as gap insurance only covers what you owe to Honda on the lease and its residual value.

My 2010 Fit Sport automatic with only taxes, title, and registration down is 239.00 a month. A Fit Sport with a manual should be between the base auto and sport auto in terms of money payment (maybe around 225-230 ?).

I'd do a search of some local dealers and find which ones have sport manuals in stock and head on down to make a deal. Virtually any/every car can be leased !

Good luck !

CarMan@Edmunds

Welcome to the wonderful world of leasing pjp9543. Since you are new to it, you definitely should check out the following informative articles on the subject that are available here at Edmunds.com: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

In short, the easiest way to get a good deal on a leased vehicle is to shop around for the lowest possible selling price and then have the dealer that you decide to go with calculate your vehicle's monthly payment using its buy rate lease money factor.

As official Honda advertisements, both of the leases that you referenced are reasonable. However, most automakers' official advertised payments usually leave a little meat on the bone so to speak. I wouldn't be surprised if you were able to beat the selling prices that either of these deals is based upon by a couple hundred dollars if you are in an area that has a decent level of competition.

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space_pilot

Hi Car_man!

Do you have the MF and residual percentages for a base manual Fit and sport manual Fit for november?

I have to lease a car this month and was hoping that Honda was still providing good incentives on this car.

Thanks so much!

CarMan@Edmunds

Greetings space_pilot. I certainly do.

Honda Finance's November buy rate lease money factor and residual value for a 36 month lease of a base 2010 Fit with 15,000 miles per year are .00033 and 57%, respectively for consumers who qualify for its top aka "Super Preferred" credit tier.

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ellie137

The dealer offered us the following lease package for the 2010 Honda Fit:
$1999 cap cost
$ 595 acquisition fee
$ 93 monthly fee
$ 329 documents fee
$ 125 registration

Then, $93/mo for 3 years, and the option to purchase at 60% MSRP.

Is this a good deal? We are in Massachusetts.

saravah

Hi folks,

I am thinking of leasing a Honda Fit and, as I'm a first-time leaser, I've done a lot of research but wanted to see if anyone could kindly weigh in on the deal.
Here are the numbers from a CT dealer:

MSRP: $17,160 (Honda Fit Sport Manual)
Selling price: $15, 739
Acq fee: $595
Money factor: .00033
Residual: 59%

No money down, but I will pay the following up front:
Dealer's conveyance fee: $399 (legal in CT)
Title & Reg: $155

So, for 36-mo lease at 12,000 miles
Base monthly= $181.22 + 10.87 tax

If any one has any thoughts, please share asap!! I would like to buy the car today if it's a good deal.

sooznd

saravah- i don't know much about leasing, but after reading the post prior to yours with a monthly payment of $93 vs. your $181, I wonder if they are offering you a good deal.