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Please respond to jfallon@edmunds.com no later than Wednesday, September 14, 2005 with a few thoughts on the subject.
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1. MDX with Touring Package
2. MSRP $40,295
3. Base Price $36,655 plus $595 acquisition fee and $50 doc fee
4. Residual 58%
5. Money Factor .00160
6. 36 Months/12K miles
7. $560/month
8. Payments due at signing are security deposit of $575, first month payment of $560 and License Title.
9. Dealer claims that bc the MF is so low they can't go any lower.
10. Any suggestions? I am not quite believing them.
MSRP w/dest = 40,870
Base Price with dest. = 37,250
Residual = 23,705 (40,870 x .58)
Total of Payments = 20,160
Depreciation that you need to cover = 13,545 (37,250-23,705)
That means you are paying $6,615 (20,160-13,545) in interest assuming some of the $560 is not tax. If it is you need to back that out. Either way that is a very high interest rate (about 7.2%). Should be way better than that on an MDX. This is not a brand new model in which they can get away with a high money factor/interest rate. You should be able to get that vehicle for no more than $475 per month plus tax (and that would not be just an ok deal).
So, my tax rate of 6.5% is included in that rate. Does that change your opinion of the deal?
I went to another dealer tonight who let me walk when I was trying to get only $10/less per month.
For what its worth, got quotes for over $650/month from the Acura dealer in Naperville. I don't think Naperville dealers were too interested in moving cars over Labor Day - the BMW dealer there quoted us almost $900/month on a lease for an X5 3.0.
BTW - The .0016 MF comes out to about 3.84%, not 7.2% as the other poster was claiming. Lease payments aren't computed just by amortizing the depreciation - it would be nice if it was that simple, but you have to use the formula the rest of the industry uses.
As for amortizing the depreciation, that is not what I said. You are paying interest on the outstanding monthly balance which starts at the capitalized cost during the first month and in the last month is basically one payment less than the residual price. A simple way to estimate (for non-financial folks) is to take the avg of the capitalized cost and the residual, this will give you approximately the avg monthly outstanding balance during your lease term. This is not the exact formula, if you want to do that just pull out a HP12C and punch in the data, it will give you the lease amount. But it is true that in a lease your payments are covering the depreciation and the interest on the outstanding monthly balance. It is that simple.
I apologize if I didn't do a good job of placing the explanation into words the first time.
I can also tell you anyone paying $900/month on a X5 3.0 is making a sales manager and finance manager a very happy person. They will take home a fat paycheck on payday. You can count on that.
Thanks for your help in advance
The money factor already takes those calculations into account..
Money Factor X (Cap cost + residual) = Monthly finance charge
(Cap cost - residual) / term = Monthly depreciation
Monthly finance charge + Monthly depreciation = Pre-tax monthly payment
And... taking the MF and multiplying by 2400 actually overstates the effective APR slightly.. It is actually less than 3.84%
regards,
kyfdx
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Dealer adds some accessories as below.
Wheel lock
Sunvisor for Moonroof.
Heavy Duty Floor mat.
Cargo Net.
Is this a good offer?
Thanks,
wheel locks $50
sunvisor $125
floor mats $125
cargo net $49
which makes $38,600, so no, it sounds like you can do better. it sounds like you are paying about $500 over invoice, rather than $500 under invoice.
I think where you are and what's in stock is big part of how much below invoice you can get. I suspect if you went at the end of the month you could get at least $1000 under invoice right now. If you can find a smaller dealer who has only one or two left and wants to move them you might get a better deal.
Well, my brother-in-law just bought base white color $32700 on Monday in NJ.
It seems like a lot cheaper than atlanta.
OK. I will make it too.
Would that be in Youngstown OH?
Im haggling with Spitzer in the south hills about an 05 TL. Was considering other dealers if Im not satisfied and Im about 1hr and 15 min from Youngstown.
Oh yeah:
Boardman OH
I've moved your post to Acura MDX: Lease Questions
You can find it there, along with any replies..
regards,
kyfdx
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THanks!
Thanks!
$36,750 plus $50 doc fee + DMV fee + Tax
in Cerritos of Cerritos, CA
Blue Metallic
I was amazed. I was there last Monday too and they definitely sold a lot of cars in a week. All the TSX were gone. More than 10 MDX sold in a week. Last night, only two blue MDX with touring + navigation and one burgundy basic model was left when I was there.
I went to the civil dealer across the street first. No 2005 pilot was left. The sales person was straightforward and informed me there's no way they would reduce the MSRP ($34.5K) to sell me the 2006 Pilot (EX-L plus navigation), since they only have one.
The MDX is going to be an extra car in my family. So gas mileage isn't a big problem.
Thanks
I went to Acura dealer across the street and bought a 2005 MDX touring with Navigation. There were only three 2005 MDX left (Two Blue with navigation, and one burgundy basic model). I think I got a good deal. Yes, according to the dealer, 2006 MDX is going to be priced higher. A more fuel-efficient MDX would be a near-perfect SUV at its price.
2005 Honda Pilot: Reviews & Specs
regards,
kyfdx
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Thanks.
Now I just feel even better getting a 2005 MDX if 2006 Pilot/MDX doesn't offer a significant better gas mileage.
Our MDX will be an extra family car. My wife is driving 60 miles / day with a >90K 1999 Camry, and I'm driving 50 miles / day with a >90K infiniti. Both still in fair condition. We'll probably get a civic/mazada 3 as the next commute car if needed. I heard CA just passed a law to allow hybrid civic and prius to take the carpool lane.
Thanks
thanks
Thanks
Retail is 44,500.00 Should I take it or renegotiate and for how much less??
Thank you for your response,
Mlock
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