Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!





Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Did you get a great deal? Let us know in the Values & Prices Paid section!
Meet your fellow owners in our Owners Clubs

is this lease quote reasonable?

timjoetimjoe Posts: 24
edited August 15 in Honda
i’m slugging it out with my local dealer on a 36/12 lease for a 2019 honda accord sport … the latest offer from the dealer is:
*msrp------$ 27100
*sell------- $ 23529 (13.2% discount)
*pmt/mo----$ 295 inc. tax x 36 = $10620
*das--------$ 0
...does this appear to be a reasonable deal or not?...i need a sense from you folks at the forum because i'm new to leasing and i need help.
Tagged:

Comments

  • timjoetimjoe Posts: 24
    no opinions? do i need to provide more information about the offer?
  • timjoe said:

    i’m slugging it out with my local dealer on a 36/12 lease for a 2019 honda accord sport … the latest offer from the dealer is:
    *pmt/mo----$ 295 inc. tax

    Payment w/o tax =???

    Sign 'N Drive with only 35 payments?
    timjoe said:

    do i need to provide more information about the offer?

    Yes.

    Helpful to post a scan of the dealertrack/AHFC worksheet they gave you...
  • timjoetimjoe Posts: 24
    payment w/0 tax = 278 ... first payment at signing, then 35 thereafter...they've not provided me with a worksheet...i'll ask again.
  • MichaellMichaell ColoradoPosts: 121,893
    timjoe said:

    payment w/0 tax = 278 ... first payment at signing, then 35 thereafter...they've not provided me with a worksheet...i'll ask again.

    The more details you provide, the more we can help.

    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

  • timjoetimjoe Posts: 24
    finally!…dealer sent me the honda finance worksheet for my accord sport potential deal…my initial thoughts/questions:
    1. can i insist they take the splash guards off the deal? options like this don't add to residual value, not to mention they increase the price of the deal.
    2. sales/use tax $663 … it appears to be 2.8% of the "agreed upon value" of the car --- but what is this tax? it appears on both sides of the worksheet.
    3. gross cap cost… should all five of these figures be included to get the gross cap cost of $25,242?
    4.rent charge calculation…is this figured accurately?
    5. current odometer reading shows as 20 on the worksheet…i doubt that's accurate…shouldn't i insist it be accurate?
    6. it's not shown on the worksheet but the monthly pretax works out to $277.54, based on where i live.
    *******
    so, does anything stand out on the worksheet as suspect, incomplete, sneaky, whatever? also, if the deal looks ethical, does it also look like a reasonable deal?
    ….any and all questions and comments greatly appreciated!
    tim

  • MichaellMichaell ColoradoPosts: 121,893
    timjoe said:

    finally!…dealer sent me the honda finance worksheet for my accord sport potential deal…my initial thoughts/questions:
    1. can i insist they take the splash guards off the deal? options like this don't add to residual value, not to mention they increase the price of the deal.
    2. sales/use tax $663 … it appears to be 2.8% of the "agreed upon value" of the car --- but what is this tax? it appears on both sides of the worksheet.
    3. gross cap cost… should all five of these figures be included to get the gross cap cost of $25,242?
    4.rent charge calculation…is this figured accurately?
    5. current odometer reading shows as 20 on the worksheet…i doubt that's accurate…shouldn't i insist it be accurate?
    6. it's not shown on the worksheet but the monthly pretax works out to $277.54, based on where i live.
    *******
    so, does anything stand out on the worksheet as suspect, incomplete, sneaky, whatever? also, if the deal looks ethical, does it also look like a reasonable deal?
    ….any and all questions and comments greatly appreciated!
    tim

    Can't tell you if it's reasonable, but I'm just a penny or two off that payment calculation.

    To answer your questions:

    1. You can ask, but doubt it will happen; you can try to shave off $150 from the sales price to compensate
    2. It is the sales tax - what state is this for?
    3. Yes; I'll guess you live in a state where the tax is assessed against the sum of the payments, then added in
    4. Yes
    5. You'll probably sign an odometer worksheet attesting to the correct reading.
    6. I don't think there is a "pre tax" payment, as the tax is part of the cap cost

    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

  • timjoetimjoe Posts: 24
    on sales tax i am in illinois...so it's 6.25%
  • MichaellMichaell ColoradoPosts: 121,893
    timjoe said:

    on sales tax i am in illinois...so it's 6.25%

    OK, IL taxes the sum of the payments and collects that money up front.

    I don't see anything wrong with the quote.

    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

  • timjoetimjoe Posts: 24
    but my monthly payment includes the state sales tax...am i then paying the tax twice?
  • MichaellMichaell ColoradoPosts: 121,893
    timjoe said:

    but my monthly payment includes the state sales tax...am i then paying the tax twice?

    No

    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

  • timjoetimjoe Posts: 24
    edited August 20
    they provided a worksheet but should they also provide a "federal consumer lending act disclosures" sheet?
  • MichaellMichaell ColoradoPosts: 121,893
    timjoe said:

    they provided a worksheet but should they also provide a "federal consumer lending act disclosures" sheet?

    That's for a purchase transaction only.

    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

  • timjoetimjoe Posts: 24
    my mistake...i meant to write "federal consumer leasing act disclosures"...here's an example i found:
  • MichaellMichaell ColoradoPosts: 121,893
    timjoe said:

    my mistake...i meant to write "federal consumer leasing act disclosures"...here's an example i found:

    Please note that the money factor is not to be found anywhere on that worksheet.

    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

  • timjoetimjoe Posts: 24
    you're right...how is that possible when this clearly is about a leased car?
  • MichaellMichaell ColoradoPosts: 121,893
    timjoe said:

    you're right...how is that possible when this clearly is about a leased car?

    Because the federal statutes don't require it. The auto dealer lobby is pretty powerful, if you hadn't noticed.

    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

  • timjoetimjoe Posts: 24
    it's odd that the feds don't require disclosure of the money factor but, nevertheless, is this disclosure sheet something the dealer must provide to me since it will be a lease and not a sale?
  • MichaellMichaell ColoradoPosts: 121,893
    timjoe said:

    it's odd that the feds don't require disclosure of the money factor but, nevertheless, is this disclosure sheet something the dealer must provide to me since it will be a lease and not a sale?

    I'm pretty sure it is.

    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

  • timjoetimjoe Posts: 24
    you all might be amused (i was) by what the salesman said when i requested they take the mudflaps off the deal....and i quote, "99.9% of people want them on their vehicle and Honda actually wants us to add them as soon as the vehicle arrives at the dealership."
  • timjoe said:

    ...Honda actually wants us to add them as soon as the vehicle arrives at the dealership."

    On our prevoius several leases Honda/AHFC absorbed $1500 damage [now it's $1000] so will take this as a null. If the vehicle is stellar - in which case the turn-in dealer will pay AHFC and keep it in their lot as a USED car sell - AHFC sends it off straight-on to auction with damages...... those fender rock chips DO add up there.
  • timjoe
    timjoe said:

    it's odd that the feds don't require disclosure of the money factor but, nevertheless, is this disclosure sheet something the dealer must provide to me since it will be a lease and not a sale?

    Michaell
    Michaell said:

    I'm pretty sure it is.

    More than pretty sure... yep, that's the REGM Federal format of the lease document you'll sign:

    image

    REGULATION M
  • timjoe said:

    my mistake...i meant to write "federal consumer leasing act disclosures"...here's an example i found:

    A leaser after our own hearts: wondering about the Federal Disclosure Regulation M form all US leasees sign (dissimilar to the lease worksheets dealers provde)

    Thank you for the worksheet you provided above...

    Here is the REGM form we worked out for you based on your capitalized cost (negotiable), advanced ILLINOIS tax payments: Sign and Drive 282/month, (ie nothing down/282x35 mos.):

    https://i.postimg.cc/gcgfSzsN/Tim-Accord.png
  • timjoetimjoe Posts: 24
    thanks...my research is nearly done, thanks to this forum
  • timjoetimjoe Posts: 24
    signed for a 2019 accord sport 1.5...sell price $23370...lease $290/mo for 36/12k...shown here with danish model...big-time thanks to everyone on the forum who helped a newbie make sense out of the process.

  • MichaellMichaell ColoradoPosts: 121,893
    timjoe said:

    signed for a 2019 accord sport 1.5...sell price $23370...lease $290/mo for 36/12k...shown here with danish model...big-time thanks to everyone on the forum who helped a newbie make sense out of the process.

    Congrats!

    Thanks for the report.

    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

  • timjoe said:

    signed for a 2019 accord sport 1.5...sell price $23370...lease $290/mo for 36/12k...shown here with danish model...big-time thanks to everyone on the forum who helped a newbie make sense out of the process.

    @timjoe

    Thanks for the numbers report. Was this sign/drive or did you pay the first month at signing?

    Would like to see the how the RegM form was filled out relative to your state taxing the lease up front and compare it to the lease spreadsheet I posted above based on the dealer worksheet you provided. Was the tax just dumped into the gross cap? If you have a chance :)
  • timjoetimjoe Posts: 24
    paid the first month...and tax was dumped into the gross cap.
  • timjoe said:

    paid the first month...and tax was dumped into the gross cap.

    Thank you @timjoe!

    The car AND model look GREAT! Thank you for the reply.

    In the states we've lived in - working out the Regulation M entries on our spreadsheet - tax was always "by-the-month". First time we put the capitalized tax upfront AND it seemed to pretty much work out.

    Based on your worksheet and https://i.postimg.cc/gcgfSzsN/Tim-Accord.png we provided above there was just a small difference.

    Good negotiations for your car... hope to see you 'round in another three years :)

    Regards, lowmoneyfactor
Sign In or Register to comment.