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Leasing Honda CR-V LX - making sense of lease quote/specials

LivAngelicaLivAngelica Posts: 7
edited May 9 in Honda
From my understanding, a lease is based on depreciation value, money factor and sales price. But I get quotes, and see offers/specials on LX that are are lower than what the depreciation charge and money factor charge adds up to. Why? Can someone explain this? It's confusing the heck out of me!

A real life example, assuming MSPR as the sales prize.

MSPR & sales prize: $26795
Residual Value 59%
Money Factor: 0.00023
Doc Fee: $699
Down payment: $1295 + first month payment of $199
Monthly payment: $199

+taxes, title fee, bank fee, registration fee

If I for the sake of staying simple, ignore the fees, the depreciation charge and money factor charge results in a $279 monthly payment. Then how does a 199$ even make sense? What am i missing?

Comments

  • kyfdxkyfdx Posts: 117,101

    From my understanding, a lease is based on depreciation value, money factor and sales price. But I get quotes, and see offers/specials on LX that are are lower than what the depreciation charge and money factor charge adds up to. Why? Can someone explain this? It's confusing the heck out of me!

    A real life example, assuming MSPR as the sales prize.

    MSPR & sales prize: $26795
    Residual Value 59%
    Money Factor: 0.00023
    Doc Fee: $699
    Down payment: $1295 + first month payment of $199
    Monthly payment: $199

    +taxes, title fee, bank fee, registration fee

    If I for the sake of staying simple, ignore the fees, the depreciation charge and money factor charge results in a $279 monthly payment. Then how does a 199$ even make sense? What am i missing?

    The part that doesn't make sense? Assuming the MSRP and sale price are the same. Your assumption makes the rest of your calculations invalid.

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

    Edmunds Moderator

  • LivAngelicaLivAngelica Posts: 7
    The offer says it is based on the MSPR. Have they just chosen not to disclose the sales prize? With offers looking like this, what approach can be used to evaluate?
  • kyfdxkyfdx Posts: 117,101

    The offer says it is based on the MSPR. Have they just chosen not to disclose the sales prize? With offers looking like this, what approach can be used to evaluate?

    You can't really evaluate them, unless you want to bother re-engineering the sale price. Besides, they are just advertisements, not offers.

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

    Edmunds Moderator

  • LivAngelicaLivAngelica Posts: 7
    Got it. Thanks!
  • Jr17456969_Jr17456969_ BX NYCPosts: 9
    Hi can I have the Money factor residual value and lease incentives for the LX 36/12k zip 10468
  • kyfdxkyfdx Posts: 117,101

    Hi can I have the Money factor residual value and lease incentives for the LX 36/12k zip 10468

    .00023 MF and 58% residual

    No lease incentives

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

    Edmunds Moderator

  • barbosaybarbosay Posts: 1
    edited May 22
    Hi there, what is the money factor, residual, and lease credits (if any) for a 2019 CR-V AWD 36m/15K ZIP: 49501 ? Thank you!
  • kyfdxkyfdx Posts: 117,101
    barbosay said:

    Hi there, what is the money factor, residual, and lease credits (if any) for a 2019 CR-V AWD 36m/15K ZIP: 49501 ? Thank you!

    LX?

    .00023 MF and 56% residual
    No lease incentives

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

    Edmunds Moderator

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