I don't understand your comment about not recovering monies paid for cap cost reduction. I personally agree with you but only because I would rather have the cash today and pay the lease in tomorrow's dollars, plus I don't like the idea of purchasing an asset that suffers significant depreciation as soon as you drive off the dealers lot. However, I don't believe you will lose money paid up front on a lease when there is a total loss. In mid-January my wife totaled her '05 Lexus ES330 which was exactly 24 months into a 48 month lease. Insurance companies pay total loss settlements based on ACV (actual cash value, i.e. fair market value), that is not in any way related to lease (or finance) balances. In my case, the insurance settlement was $30K in round numbers, which was ACV + 7.75% Illinois sales tax based on the on the ACV amount and a deduct of $500 for my collision deductible. The payoff to LFS was $25K in round numbers which included residual + 24 unpaid lease payments. No matter how little or how much I paid up front, I still would have received a settlement based on ACV. Bottom line, I suffered absolutely no financial loss on the insurance settlement, although I did have to go out and lease an '07 Acura TL ($360/mo for 36 mos), to replace the Lexus. In addition, although it didn't come into play in my situation, all Lexus and Acura leases include gap insurance, which is a major benefit in the early months of a lease to avoid being "upside down" in the event of a total loss.
Lessee A rolls in all of his costs, and only pays the 1st payment at lease signing. His payment is $550/mo.
Lessee B makes a $5000 CAP cost reduction on his lease. His payment is $398/mo.
After 6 months, Lessee A and Lessee B run into each other, totaling both cars. Each Lessee's insurance company values the car at $30K.
Lessee A's payoff on his lease is $32,600, and he has made total payments of $3300. But, no matter, all Acura leases include GAP insurance, so the insurance company pays the bank $30K and the GAP insurance covers the $2600 shortage.
Lessee A has paid $3300 to lease his Acura for six months.
Lessee B's payoff on his lease is $28,430, and he has made total payments of $7388 (six pymts + $5000). The insurance company pays his car off.
Lessee B has paid $7388 to lease his Acura for six months.
Even if the bank remits to Lessee B the overage between the payoff and the ACV ($1570), Lessee B is still out a total of $5818 vs. the $3300 paid by Lessee A. Recovering any overage is doubtful, as a lessee has no ownership interest in the vehicle.
These are all hypothetical numbers, but not far off from real-life examples.
Car Man- I am having trouble figuring out this payment let me know if it makes sense to you.
Acura TL Type S Selling Price $35,514 Dealer states No charge options- Wheel Locks/ Splash Guards 36 month Lease 18K Miles a year 0 down - only first months payment
Using current money factor which I believe is .00137 Not sure what the residual would be on 18k a year possible 57%.
abk99, I ran that through my lease spreadsheet and I initially I came up with something about $70 less a month, but then I saw you have 18k miles instead of the standard 15k. I dropped your residual to 56% to account for a car worth a bit less with more miles. Also, I think you have to pay upfront for additional miles. First I would ask if they are and how much you are paying for those. If they charged your 18 cents a mile for 9000 additional miles($1620), the payment would come out pretty close to what you have here. I came up with $556.19 after I added in the Aquisition fee, $1620 for the extra miles, and a 56% residual. If you are not paying for miles, they are adding in something somewhere!
My advice...if you don't think you can put on closer to 15k a year, I wouldn't add on more miles. And even if you do put on more miles than 15k a year (as long as it's not too much more), you can always trade or sell the car at the end and have a good chance of coming out even, as opposed to turning in your car and paying a penalty. Even so, they may "waive" your overage if you lease or buy another Acura 3 years from now.
Car Man, I am looking to lease a car today or tomorrow. Would like a 36 month, 10,000 miles/year (actually drive less than that) on an Acura TL-S, Manual. Are you aware of a way to negotiate a deal with around 1000 down and 450 or under a month. The sales tax in Virginia where I live is 3% (although I am buying the car in Florida). My credit is good. Working with all of the lease calculators but most of them don't account for such low mileage. Do you have any thoughts as to what the residual value for the care may be since the similar make three years ago was quite different? A but under teh gun today as I had beennegoatiating with multiple dealers (in Florida and Virginia) for a TSX, Manual with Navi but no could or would find it in silver (until sometime in March). I need a car now so started belatedly to look at the TL-S. Any guidance or thoughts would be greatly appreciated!! Thanks!
Car Man, They have quoted me a 60% residual, MF of 147 and an invoice price of 35,744 for a 36 month, 10,000/miles a year lease. Would like to do better- what do you think? Thanks in advance!!
If they are selling you the car for 35774 with a 60% residual, a money factor of .00147 (I am assumming that is what you meant by 147), with 3% sales tax included in the monthly payment, you would be looking at $446 a month. Upfront you would need to pay first month and aquisition fee. I forget what the aquisition fee is...I'm thinking 695. So if you rolled that in, you would be at $467, with only first months payment due at signing. One area you could tell them to knock down is the money factor in this case. I think Acura's preferred money factor is .00137, for preferred credit worthy customers. So, if your credit is excellent, you should be able to get that rate. It would prob only save you about $5-10 a month though.
I am looking at a few cars to lease, and the TL is on my list to look into. Im looking at a base TL without navi (AT), with the iPod music link. I would be purchasing my car in NYC and would like my payments to be under 400/mo. I would like to put no more than $2000 when I leave the dealership.
I would want 12k mi/year for 36 months.
Think it can be done? Can I get an idea of how much I would be paying with those numbers?
When you calculate the lease payment, make sure you roll the acquisition cost into the cap (or pay upfront as part of the drive off). It is anywhere between 500-650 (don't know what acura charge).
Hi t2007. The easiest way to negotiate a good deal on a lease is to shop around and negotiate the lowest selling price that you can on the car that you want. Once you have arrived at a selling price that you are comfortable with, have the dealer calculate your lease payment using its buy rate lease money factor. Honda Finance's current buy rate money factor for a 36 month lease of a 2007 Acura TL is .00137 for consumers who qualify for its top credit tier.
Hi snork. The money factor that you were quoted is right in line with Honda Finance's current buy rate for this car. What is the MSRP of the TL that you are interested in? If you let me know I will give you my opinion of the selling price that you were quoted. I can even use Honda Finance's current lease program to estimate what your monthly payment should be if you'd like.
Hi stlgasman. I believe that Acura's February lease program for the TL is exactly the same as if was in January. If you tell me how long you want to lease for and how many miles per year you need to be able to lease I will gladly tell you exactly what the new program is like.
Hi klatu. Acura's February lease program for the 2007 TL is the same as its January program was. If you let me know how long you want to lease for and how many miles per year you need I will gladly tell you the exact numbers for the lease that you are interested in.
Hi abk99. The money factor that you were quoted is right on the money. What is this car's full MSRP? If you let me know I will be happy to give you my opinion of its selling price.
Hi chemoy. While it's difficult to say off of the top of my head I suspect that it will not be possible for you to lease this car for $399 per month for only 24 months with nothing down. If you provide me with the exact MSRP and selling price of the model that you're interested in I will gladly use Honda Finance's current lease program to estimate what your lease payment would be.
Hi cmks02. You were in the fortunate situation that your vehicle was worth more than what your payoff with the bank that you were leasing it through was. With most leases, vehicles' market values are lower than their payoffs. As long as you have gap insurance, which most leases do, you're still fine if a leased vehicle that you are upside down on is totaled. Your insurance company pays off the bank for your vehicle and the gap insurance covers the amount that you owe that the insurance doesn't cover. Let's say that you had made a $5,000 down payment on this lease. The insurance company and gap insurance pay off your car, but guess where that five grand goes...it disappears.
msrp of type S is 38,795 selling price before TTL is 35,514. I am going to lease 18k a year 0 down 552.90 a month (wheel locks, mud guards thrown in as no charge options) Do you know what Acura charges per mile when purchased upfront? I think it is .10 if you factor the extra cost 9,000 mi @ .10 i think the numbers make sense. But let me know what you think
Hello kmn444. Honda Finance's current 36 month, 10,000 mile per year buy rate lease money factor and residual value for the 2007 Acura TL-S are .00137 and 60%, respectively for consumers who qualify for its top credit tier. The best way to negotiate a good deal on this car is to shop around for the lowest possible selling price on it and then have the dealer that gives you that price calculate your monthly payment using the aforementioned buy rate lease money factor.
Hey kmn444. The money factor that you were quoted is .00010 higher than Honda Finance's buy rate for "Super Preferred" lessees of the '07 TL. This means that either you don't quite qualify for its top credit tier or that the dealer you are working with is marking your car's factor up slightly.
Hi o0godspeed0o. Your lease payment for this car will depend upon what sort of selling price you are able to negotiate on it. I would be happy to use Acura's current lease program to estimate exactly what your payment would be like on this car right now for you, but in order for me to do so I need you to provide me with its full MSRP and approximate selling price. You should be able to get an idea of how much you will have to pay for this car by visiting the following discussion: "Acura TL: Prices Paid & Buying Experience". Let me know what these numbers are and I'll crunch some numbers for you.
Thanks for the additional information, abk99. OK, so you're interested in leasing a 2007 Acura TL-S with Navigation that has an MSRP of $38,795 and a selling price of $35,700. This car has a dealer invoice price of $35,444, so the price that you were quoted is only a couple hundred over invoice...which is a very good deal. Using these prices, I estimate that if you were to lease this car through Honda Finance right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $457. If you need to drive more than 15,000 miles per year, you will have to purchase additional miles on a per-mile basis. It is less expensive to do so at lease signing than it is to wait until the end of your lease and have to pay an excess mileage penalty. I'm not sure exactly how much Honda Finance charges per additional mile purchased in advance, but your dealer should be able to tell you.
Hello Carman....i have about the same question as burgermac. but with 10k a year. tl - auto- navi. what do you come up with..thaks again for your help...Fred I know i have posted questions in diff. areas,but lease is coming up and my cadillac sts is rear drive and it is worthless to drive in this iowa blizzard..thanks again
I just leased a 07 TL with Navi for my wife. She loves it and as far as I can tell the lease program is still in effect that was in effect last month. Money factor .00137 and the Navi had a 59% residual the non Navi had a 61% residual.
jvette, if you don't mind me asking...What did you pay for the car (purchase price), and what were your terms (36 months?, how many miles?) and monthly payment?
stlacura- email me at burgermac@mac.com if you would and let me know what kind of prices you are seeing in the St. Louis area (I'm assuming that's where you're from). I am in Memphis and would gladly drive up there for the right deal. The dealers here don't seem too intent on "dealing."
I'm a newbie to this board, so I hope these aren't stale questions:
1) Have any of you obtained 4 yr leases - whether through HFC or a dealer-associated bank?
2) Since few people drive just 10k miles a year, will the dealer let you purchase more miles up front - for less than 20 cents per mile? For example, I have a Canadian friend who leased a Mercedes; they let him buy extra miles at lease inception for about 8 cents (US) per mile.
What state are you in. What are the TTL costs there. I am looking to buy a Type S as well and trying to work out something with the dealer based on your numbers. Looking forward to hearing back from you.
What are your TTL costs. I am trying to negotiate a deal with the acura dealership based on your numbers. Also what state are you in? Can you also quote your MF and residual. Would help me tremendously in reaching the best deal around.
You're welcome, abk99. Honda Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2007 Acura TL-S with 15,000 miles per year are .00110 and 56%, respectively.
I recently visited Acura and got what I think is a decent quote on a 36 mo/15k lease on a TL. MSRP $36,795 Sale price: $34,783.62 Acq. fee: $595 MF: .00110 Depreciation: .55 (not .56 like S-type?) up front fees: $1,552.19 Pre-tax Payment: $481.77
When I did my research on the TL with Navi at the end of Feburary the Non Navi TL residual was 61% and the TL with Navi was 59%. I'm not sure about the TL-S. The TL-S does have Navi so I would assume it is lower.
Here's the information that you're looking for, burgermac. Honda Finance's current buy rate lease money factor and residual value for a 36 month lease of a base 2007 Acura TL without navigation with 12,000 miles per year are .00110 and 57%, respectively.
Hello fgaz1. Honda Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2007 Acura TL with navigation and 10,000 miles per year are .00110 and 58%, respectively.
Hi stlacura. Wow, we've hit all three mileage allowances on consecutive posts . OK, the money factor for the TL is the same as I mentioned in my previous two posts, but the residual value for a 36 month lease of a base 2007 TL without navigation with 15,000 miles per year is 57%.
Hi azn_boi. The dealer invoice price of a 2007 Acura TL-S with an automatic transmission is $35,638. As you can see, the price that you were quoted is pretty close to this, which is a very good deal. The money factor that you were quoted for this car is right in line with Honda Finance's buy rate for a lease of it by a consumer who qualifies for its "Super Preferred" credit tier. If you like the car, I personally don't see any reason not to pull the trigger on this deal.
Hi mark_wny. You can lease this car through Honda Finance or an independent bank for 48 months if you would like, however the best way to lease it is to do so through Honda Finance for 36 months or less. This is because Acura is providing a special lease money factor of .00110 on the 2007 TL for 36 month leases right now. If you lease this car through Honda Finance for 48 months, its money factor more than doubles to .00250.
As far as your lease's mileage goes, Honda Finance has three different allowances to choose from: 10,000, 12,000, or 15,000 miles per year. If you need to drive more than 15,000 miles per year, you will have to purchase additional miles on a per-mile basis. It is less expensive to do so at lease signing than it is to wait until the end of your lease and have to pay an excess mileage penalty.
Hi jimabood. By looking at this car's MSRP, it appears as though you are interested in a base 2007 Acura TL with navigation. Is that correct? The dealer invoice price of that model is currently $33,807. The price that you were quoted is $977 over invoice. If you really wanted to and you are in an area that has a decent level of competition, you might be able to shave another couple hundred dollars off of this car's price but this deal isn't bad. The money factor that you were quoted is right in line with Honda Finance's buy rate for this model, so there's no mark up going on there. The bottom line is that this is a pretty good deal, but you might be able to shave another couple of dollars per month off of this car's payment by spending some time comparison shopping.
from the honda website 36 months 30,000 miles $369 a month(ttl extra), i'm very interested in getting this deal has anyone else gotten this price?
Offer valid through: 4/30/2007 FEATURED SPECIAL LEASE: Closed-end lease for 2007 TL 5-Speed Automatic Transmission (Model UA6627JW) for $369.00 per month for 36 months with a $1,035.00 capitalized cost reduction available to customers who qualify for the AHFC Super Preferred credit tier. Other rates/tiers are available under this offer. $1,999.00 total due at lease signing (includes first month's payment, security deposit, AHFC upfront acquisition fee and capitalized cost reduction; total net capitalized cost and base monthly payment does not include tax, license, title, registration, documentation fees, options, insurance and the like). Security deposit waived in lease example. Not all buyers may qualify.
Subject to limited availability. Through 4/30/2007, to approved lessees by American Honda Finance Corp. Closed end lease for 2007 TL 5-Speed Automatic Transmission vehicles (Model UA6627JW), for well qualified lessees. Not all lessees will qualify. Higher lease rates apply for lessees with lower credit ratings. MSRP $34,295.00 (includes destination) less the capitalized cost reduction (which may be paid by the suggested dealer contribution) resulting in actual net capitalized cost $31,787.32. Dealer contribution may vary and could affect actual lease payment. Taxes, license, title fees, options and insurance extra. Total monthly payments $13,284.00. Option to purchase at lease end $20,577.00. Lessee responsible for maintenance, excessive wear/tear and 15 cents/mi. over 10,000 miles/year for vehicles with MSRP less than $30,000, but for vehicles with MSRP of $30,000 or more, mileage cost is 20 cents/mi. over 10,000 miles/year. See dealer for complete details.
Hello Car_man, I,m trying to negotiate a 36 mo. 10k mile lease for my daughter on a 2007 TL/Nav or TL-S and the dealer is telling me that AHFC does not do 10K leases, only 12K and 15K. Could you please tell me if this is true and if false what the money and residual numbers are for March on a 36mo. 10K are on both cars. Thank you!
Comments
I don't understand your comment about not recovering monies paid for cap cost reduction. I personally agree with you but only because I would rather have the cash today and pay the lease in tomorrow's dollars, plus I don't like the idea of purchasing an asset that suffers significant depreciation as soon as you drive off the dealers lot. However, I don't believe you will lose money paid up front on a lease when there is a total loss. In mid-January my wife totaled her '05 Lexus ES330 which was exactly 24 months into a 48 month lease. Insurance companies pay total loss settlements based on ACV (actual cash value, i.e. fair market value), that is not in any way related to lease (or finance) balances. In my case, the insurance settlement was $30K in round numbers, which was ACV + 7.75% Illinois sales tax based on the on the ACV amount and a deduct of $500 for my collision deductible. The payoff to LFS was $25K in round numbers which included residual + 24 unpaid lease payments. No matter how little or how much I paid up front, I still would have received a settlement based on ACV. Bottom line, I suffered absolutely no financial loss on the insurance settlement, although I did have to go out and lease an '07 Acura TL ($360/mo for 36 mos), to replace the Lexus. In addition, although it didn't come into play in my situation, all Lexus and Acura leases include gap insurance, which is a major benefit in the early months of a lease to avoid being "upside down" in the event of a total loss.
Am I missing something?
Lessee A rolls in all of his costs, and only pays the 1st payment at lease signing. His payment is $550/mo.
Lessee B makes a $5000 CAP cost reduction on his lease. His payment is $398/mo.
After 6 months, Lessee A and Lessee B run into each other, totaling both cars. Each Lessee's insurance company values the car at $30K.
Lessee A's payoff on his lease is $32,600, and he has made total payments of $3300. But, no matter, all Acura leases include GAP insurance, so the insurance company pays the bank $30K and the GAP insurance covers the $2600 shortage.
Lessee A has paid $3300 to lease his Acura for six months.
Lessee B's payoff on his lease is $28,430, and he has made total payments of $7388 (six pymts + $5000). The insurance company pays his car off.
Lessee B has paid $7388 to lease his Acura for six months.
Even if the bank remits to Lessee B the overage between the payoff and the ACV ($1570), Lessee B is still out a total of $5818 vs. the $3300 paid by Lessee A. Recovering any overage is doubtful, as a lessee has no ownership interest in the vehicle.
These are all hypothetical numbers, but not far off from real-life examples.
Hope this helps,
kyfdx
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07 TL ype S+ wheel locks/ splash guards
35700 selling price
5% tax
18k mi a year
mf .00137
Residual $21663
0 down- only first months payment
552.90 monthly payment
Acura TL Type S
Selling Price $35,514
Dealer states No charge options- Wheel Locks/ Splash Guards
36 month Lease
18K Miles a year
0 down - only first months payment
Using current money factor which I believe is .00137
Not sure what the residual would be on 18k a year possible 57%.
5% sales tax and approx cost of tags
They have a payment of 552.90
Good deal?
My advice...if you don't think you can put on closer to 15k a year, I wouldn't add on more miles. And even if you do put on more miles than 15k a year (as long as it's not too much more), you can always trade or sell the car at the end and have a good chance of coming out even, as opposed to turning in your car and paying a penalty. Even so, they may "waive" your overage if you lease or buy another Acura 3 years from now.
I am looking to lease a car today or tomorrow. Would like a 36 month, 10,000 miles/year (actually drive less than that) on an Acura TL-S, Manual. Are you aware of a way to negotiate a deal with around 1000 down and 450 or under a month. The sales tax in Virginia where I live is 3% (although I am buying the car in Florida). My credit is good. Working with all of the lease calculators but most of them don't account for such low mileage. Do you have any thoughts as to what the residual value for the care may be since the similar make three years ago was quite different?
A but under teh gun today as I had beennegoatiating with multiple dealers (in Florida and Virginia) for a TSX, Manual with Navi but no could or would find it in silver (until sometime in March). I need a car now so started belatedly to look at the TL-S. Any guidance or thoughts would be greatly appreciated!! Thanks!
They have quoted me a 60% residual, MF of 147 and an invoice price of 35,744 for a 36 month, 10,000/miles a year lease. Would like to do better- what do you think?
Thanks in advance!!
I would want 12k mi/year for 36 months.
Think it can be done? Can I get an idea of how much I would be paying with those numbers?
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Do you have the March 2007 Acura Lease figures (money factor and residual) for the TL with 12k mi/yr and 36 months?
Thanks!
36 month Lease
15k a year
2000 down
$35,532 Selling price
7% sales tax
MF .0011
Residual 56%
Monthly Payment--470
Is this a good deal?
1) Have any of you obtained 4 yr leases - whether through HFC or a dealer-associated bank?
2) Since few people drive just 10k miles a year, will the dealer let you purchase more miles up front - for less than 20 cents per mile? For example, I have a Canadian friend who leased a Mercedes; they let him buy extra miles at lease inception for about 8 cents (US) per mile.
What state are you in. What are the TTL costs there. I am looking to buy a Type S as well and trying to work out something with the dealer based on your numbers. Looking forward to hearing back from you.
What are your TTL costs. I am trying to negotiate a deal with the acura dealership based on your numbers. Also what state are you in? Can you also quote your MF and residual. Would help me tremendously in reaching the best deal around.
I'm in NJ. TTL is around 670....
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MSRP $36,795
Sale price: $34,783.62
Acq. fee: $595
MF: .00110
Depreciation: .55 (not .56 like S-type?)
up front fees: $1,552.19
Pre-tax Payment: $481.77
Any thoughts CarMan?
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As far as your lease's mileage goes, Honda Finance has three different allowances to choose from: 10,000, 12,000, or 15,000 miles per year. If you need to drive more than 15,000 miles per year, you will have to purchase additional miles on a per-mile basis. It is less expensive to do so at lease signing than it is to wait until the end of your lease and have to pay an excess mileage penalty.
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Offer valid through: 4/30/2007
FEATURED SPECIAL LEASE: Closed-end lease for 2007 TL 5-Speed Automatic Transmission (Model UA6627JW) for $369.00 per month for 36 months with a $1,035.00 capitalized cost reduction available to customers who qualify for the AHFC Super Preferred credit tier. Other rates/tiers are available under this offer. $1,999.00 total due at lease signing (includes first month's payment, security deposit, AHFC upfront acquisition fee and capitalized cost reduction; total net capitalized cost and base monthly payment does not include tax, license, title, registration, documentation fees, options, insurance and the like). Security deposit waived in lease example. Not all buyers may qualify.
Subject to limited availability. Through 4/30/2007, to approved lessees by American Honda Finance Corp. Closed end lease for 2007 TL 5-Speed Automatic Transmission vehicles (Model UA6627JW), for well qualified lessees. Not all lessees will qualify. Higher lease rates apply for lessees with lower credit ratings. MSRP $34,295.00 (includes destination) less the capitalized cost reduction (which may be paid by the suggested dealer contribution) resulting in actual net capitalized cost $31,787.32. Dealer contribution may vary and could affect actual lease payment. Taxes, license, title fees, options and insurance extra. Total monthly payments $13,284.00. Option to purchase at lease end $20,577.00. Lessee responsible for maintenance, excessive wear/tear and 15 cents/mi. over 10,000 miles/year for vehicles with MSRP less than $30,000, but for vehicles with MSRP of $30,000 or more, mileage cost is 20 cents/mi. over 10,000 miles/year. See dealer for complete details.
What is a normal and reasonable profit for the salesman/dealer to make. Does $1000 over invoice sound like too much?
Thanks