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2013 and earlier-Honda Accord Lease Questions
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Thanks!!
Any new programs after May 3rd?
Honda is providing $1,200 dealer cash on the 2010 Accord. If I was in the market for one right now, I personally would shoot for a selling price of right around dealer invoice minus the $1,200.
Car_man
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Car_man
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When negotiating your deal, make sure to take advantage of the $1,200 dealer cash that is currently available on this car. If I was in the market for one right now, I personally would shoot for a selling price of around dealer invoice minus the dealer cash.
Car_man
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2010 Accord LX MSRP: $22,565 36 month lease/ 12k miles per year.
I did a 100% sign and drive lease! NO MONEY DOWN, They also made my first payment. I have a total of 35 payments to make at $274.68 ($252.00 + 22.68 tax) I live in Pennsylvania.
I should note that Honda approved me at the Preferred level (not Super perferred). I believe my money factor was .00235.
HOW DID I DO? Please be honest. I don't think I did too bad, but could have I done better??
Honestly, this is a horrible deal. You could have gotten this vehicle for less than half the 378 monthly payment and very little paid upfront. There is no way that a 7,750 trade allowance equates to a $378 payment. It's so bad that it leads me to believe that something is missing. I'm assuming that you owe nothing on your trade as it's a 2003 EX.
I suggest that if you haven't taken delivery of your new car yet, DON'T! Step back, take a few deep breaths, and try to understand leasing. You may want to peruse these message boards to get an idea of what others are paying. I don't know what the money factor is for your situation nor do I know the residual factor but I can make a pretty good guess.
Here's a realistic example...
MSRP = 29,815
Residual 54% x 29,815 = 16,100.10 (36 months, 12,000 miles)
Money Factor = 0.00240 (this is probably higher (270?) given your 630 credit score)
Sell Price = 25,885 (invoice less the 1,200 cash incentive)
Gross Cap = 25,885
Cap Reduction = 7,750 ( Trade)
Adj Cap = 18,135
Term 36 months
Sales Tax Rate = Assume 7.75% (you didn't mention your state and so I have no
idea how taxes are computed)
Using the above data, your base payment is
0.00240 x (18,135 + 16,100.10) + (18,135 - 16,100.10) / 36 = 138.69
Payment w/tax = 138.69 x 1.0775 = 149.44 (I'm guessing your state taxes
payment receipts)
Estimated Fees Due at Signing....
First Month's Payment..................... 149.44
AHFC Acq Fee................................ 595.00*
Dealer Doc Fee............................... 250.00*
License/plates/Reg. Fees................ 200.00
Service Credit............................... (1,100.00)
Total Due .................................... 94.44
* These are probably taxable in your state.
The Money Factor and residual may be off a bit but I'm betting that they're close. The only things that you will likely need to change are the money factor (negotiable) and residual factor (non-negotiable).You may have to tweak the sell price as you negotiate but I wouldn't increase it by more than $100-$200.
Also, you may want to create a one-page lease proposal on your letterhead using the above information. This will save time, money, and aggravation. Email it to the dealer and do all of your negotiating via email or phone.
My guess is that the dealer, like a shark, smelled blood and decided to clobber you to make up for narrow profit margins. I really question the 7,750 trade allowance. The evidence (payment) suggests that they're giving you nothing for your trade. This is why it's so important for people to understand how a lease is structured and how to make all pertinent calculations.
If you need me to intercede, feel free to email me at
diffeq@zoominternet.net
All the Best,
John
I did some calculations last night on my own via Edmonds Basic Lease Calc application, and I realized that the dealer knew I didn't know what the hell I was doing when I came in yesterday... (They actually had the nerve to start the negotiations at $500/month!!!)... I live in WA state (this was at Honda of Kirkland) so sales tax is 9.5%. They never even showed me how the lease was calculated, what the components were, and kept walking away to look as if they were running some big calculations in an office before coming back with a new number. This song and dance went on for 2+ hours!!!
Then they made me hand over my keys for my trade-in saying that this was a standard procedure (when I questioned this practice, they said they forgot to tell me earlier)... and then they sent me away in another '09 V4 Accord that was on the lot. I feel like they practically stole my old car, which to answer your question is completely paid for. I have just sent them a scathing email telling them to halt the loan process until further notice.
I may take you up on your intervention if I have any further questions. AGAIN, THANKS SOOOO MUCH for being a concerned consumer and concerned for me.
Prior to arriving at dealership, I called in reponse to an ad and was told I would need to put down about 3.5k and lease payment of $129. Sounded pretty good. Closed end lease, gap isurance yada yada ya.
heres what they offered me:
list $22565
disc $ -4885
Vehicle price $17680
Deal "pro Pack" 595 (mudflaps?)
Tot Cap 18275
down pay $1800
nmet cap 16475
#^ month payment 128.98
payement due
Down payment $1800
lic/title $ 219
doc prep $ 154
bank fee $ 595
taxes $1292
ist payment $ 128.88
due on delivery $4189
rate 0.001580
miles 12k
residual 13539
i walked out as i thought they should have included the bank fee in the price and not the accesories with a due on delivery 595 less.Note how the bank fee and the accesories are the same price.
Should i take the deal or play hard ball?b>
http://www.fdic.gov/regulations/laws/rules/6500-600.html#fdic6500182
Sec 182 reads as follows:
§ 182. Consumer lease disclosures
Each lessor shall give a lessee prior to the consummation of the lease a dated written statement on which the lessor and lessee are identified setting out accurately and in a clear and conspicuous manner the following information with respect to that lease, as applicable (then a list of disclosures follows)
WA State Law agrees with Federal Law by stating the following:
http://apps.leg.wa.gov/rcw/default.aspx?cite=63.10.045
RCW 63.10.045
Unlawful acts or practices — Consumer lease of a motor vehicle:
Each of the following acts or practices are unlawful in the context of offering a consumer lease of a motor vehicle:
...
3) Failure to comply with the disclosure requirements of Title I of the federal consumer protection act (90 Stat. 257, 15 U.S.C. Sec. 1667 et seq.), which is also known as the federal consumer leasing act, including, but not limited to, failure to disclose all fees that will be due when a consumer exercises the option to purchase.
Also for good reading is Federal Regulation M:
http://www.fdic.gov/regulations/laws/rules/6500-2000.html#fdic6500213.3
(1) Form of disclosures. The disclosures required by § 213.4 shall be given to the lessee together in a dated statement that identifies the lessor and the lessee; the disclosures may be made either in a separate statement that identifies the consumer lease transaction or in the contract or other document evidencing the lease. Alternatively, the disclosures required to be segregated from other information under paragraph (a) (2) of this section may be provided in a separate dated statement that identifies the lease, and the other required disclosures may be provided in the lease contract or other document evidencing the lease. In a lease of multiple items, the property description required by § 213.4(a) may be given in a separate statement that is incorporated by reference in the disclosure statement required by this paragraph.
...
(3) Timing of disclosures. A lessor shall provide the disclosures to the lessee prior to the consummation of a consumer lease.
I qualify for AHFC's Super-Preferred credit tier. What kind of money factor should I expect from the dealer?
I know they can manipulate it to make a greater profit so I'd like to go in with a "ballpark" number tomorrow.
So far, I've been able to negotiate the cap cost down to $20,899 on the EX Coupe Automatic. Is this a good deal?
Any advice would be greatly appreciated!
Actually, it doesn't really matter whether the 595 bank fee is paid up front or rolled into the lease (six or one-half dozen of the other). Either way, you're going to pay it. However, if you prefer, the dealer can roll it into the lease. In fact, the dealer can roll in all the upfront fees into the lease.
The dealer pro pack (595) sounds like BS. I have no idea what this includes. If it's only mud flaps, then 595 is a lot of doe-rey-mee to pay for just mud flaps. However, you did get a fantastic selling price (17,680) that is about the lowest that I've seen.
I know that this car is for your daughter and so you probably want to keep the payment as low as possible. However, the effective interest rate is about 3.8% and I would be inclined to roll everything into the lease. Where are you going to get a personal loan for 4,188 at 3.8%? Another issue is that I wouldn't put $1800 down because (a) a car is a depreciating asset and I'm sure you wouldn't invest in stock that you know will lose value over time and (b) God forbid, if the car is totaled or stolen, it's not likely that you'll recover most or all of your down payment.
What is your sals tax rate? It looks like it may be no more than 7%. I always like to verify the sales tax.
John
Just browse through this discussion, and you can find most of the answers you need.
Please let me know Honda's current buy rate lease money factor and residual value for a 36 month lease with only 12,000 miles per year of:
a 2010 Accord Sedan 4-cylinder EX-L without navigation; and
a 2010 Accord Sedan 6-cylinder EX-L without navigation.
Thanks for all the great information.
Reply back with your sale price they gave you on both NON nav and Nav models.
Accord EX-L V6 w/Navi - 36mo, 12K per
Total Down - $1,500 (includes first payment, all fees) they will also be paying my last payment on my current lease ($329)
Monthly Payment - $389 (taxes included)
Thoughts???
I am trying ot make a decision on what direction to go. Can you please provide the current residual and MF for 36 months/12k miles for 2010 Accord Coupe Auto EX-L V6 (with and without Nav), and 2010 Accord Sedan Auto EX?
Also what is the change in residual for only 10k miles/year?
thanks.
gperr
Also, 15,000 miles instead of 12,000. Don't know if this will help.
The numbers for an otherwise identical lease of a '10 Accord Sedan V6 %X-L without navigation are .00158 and 56%.
When negotiating your lease on this car, make sure to take advantage of the $1,200 dealer cash that is currently available on it.
Car_man
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Let us know what this car's selling price is and I'm sure that either myself or another knowledgeable community member will gladly let you know what they think.
Car_man
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Honda Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2010 Accord Coupe EX-L V6 with navigation and 12,000 miles per year are .00158 and 52%, respectively for consumers who qualify for its top aka "Super Preferred" credit tier.
The money factor for an otherwise identical lease of an EX-L Coupe without navigation is the same, but its residual value is 54%.
Again, the money factor for a lease of a '10 Accord Sedan EX 4-cylinder is the same, but its residual value is 60%.
When negotiating your lease, make sure to take advantage of the $1,200 dealer cash that Honda is currently providing on Accords.
Car_man
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What is the money factor for tier 2 credit?
Between 660-700 scores?
Is it a big difference?
Thank you!
How about the residual on the EX-V6 sedan for 36/12k? (assuming MF is .00158- since it is with all the other accords)
Thanks
gperr
LX 12K/year 36 months
Sale price 18,870.35
Doc Fee 250.00
Acquistion fee 595.00
License fee 34.25
Cap Taxes 526.75
Gross Cap Cost 19,465.35
Net Cap Cost 19,992.10
Residual 13,539.00
Advance Payment 232.23
Upfront charges 334.63
Initial payment 566.86
Base monthly payment 232.23
The sell price of $18,870.35 is very competitive and the doc fee of $250 is typical of what Ohio dealers charge. Seems to me that your upfront charges should be...
$250 + $34.250 = $284.25 instead of $334.63 and so, I'm not sure where the additional $50.38 is coming from.
Although you didn't mention your sales tax rate, it's 6.75%. At least, that's what was used to compute your taxes of $526.75. In Ohio, taxes are based on total taxable payments. Your taxable payment amounts to $216.77 for which your tax was calculated as follows...
36 x 0.0675 x $216.77 = $526.75
The residual value equates to 60% of MSRP = $13,539 suggesting an MSRP of $22,565. Your money factor is 0.00158. This equates to a lease amortization rate of 3.81% when coupled with your payment of $232.23 as well as the adj cap, residual, and term.
It appears that you have a very reasonable deal. However, you should try to account for the additional $50.38 upfront charge described above if you haven't already done so.
John
Between 660-700 scores?
Is it a big difference tier one and tier two in their lease rates?
Car_man
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Car_man
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here is my Deal:
MSRP $27,540
Purchase Price: $23,209 (including their dealer pack-mud guards/wheel locks/trunk tray & Window VIN Etch)
36 months, 12k AHFC lease
Residual 58%
MF .00158
Sales tax in NJ is 7%
Monthly Payment: $300
Out of Pocket: $704 (which includes 1st month $300, NJ 3yr Reg. & title fees $227.50, Doc Fee $169, and NJ Tire fee $7.50)
I have brought in this dealership a decent amount of business and got them on an unusual very slow saturday.
I'm trying to figure out the rate difference.
_____________________________
Hi dyingbreed. I'm not sure what the factor is for someone with a 660-700 credit score, but I'll try to find out for you.
Car_man
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MSRP on an EX-L V6 would be $29,815
MSRP on EX-L w/Nav would be $29,540
MSRP on EX-L V6 w/Nav would be $31,815
This is one of the most helpful forums I have ever come across online, and have been able to know a lot about leases because of posts on this forum.
I stay in Raleigh NC and am trying to get a decent deal on a lease for Honda Accord 2010 EX Sedan I4 Automatic. I have been given the following quotes by a dealer in the region. The sale price I was quoted was "The price of the 2010 Accord Sedan EX AT is $21,141 plus fees." and the MSRP on the dealer site is 24630 + fees.
Lease numbers for 12k yrly 36 months
Paying upfronts of $846
Monthly payment is $249
Lease numbers for 15k yrly 36 months
Paying upfronts of $861
Monthly payment is $262
Zero down (no money out of pocket)
12k 36 months
monthly payment is $274
Zero down
15k 36 months
monthly payment is $288
I kind of get a feeling the deals are balanced and not too bad or too great, but I would definitely like to hear expert opinions on them.
Any kind of help would be highly appreciated!
Thanks in advance,
Jit
- There's no penalty for terminating the lease, if the dealer purchases the car.
- Because I only have 19,000 miles (I don't drive a ton) after almost 3 years, I know this would be a great car for resale for the dealership.
- He said, I might have "equity" built into the car, which would make this deal smooth. How does that work? For example, the payoff per Honda Financial is $15,600. If he's willing to offer, say, $16600, what happens to that $1000?? I know what happens in a regular trade-in, but what about a lease?
Currently, the deal he is offering (which is the best within 100 miles on-line) is:
2010 Honda Accord EX V6
MSRP $27750
Price - $23,600 (including destination fees) (this is $1700 under invoice)
Extra - Title/registration and tax
I will see what my interest rate will be; we have super great credit and will qualify for the best interest rate (though, I will go with the dealer cash on this deal versus the current 0.9/1.9% offering).
Help? Does this make sense to anyone? Will I be able to do this without killing my credit? I need to understand what the equity piece is about.
Thanks in advance!
Now, having said that, I don't think your dealer is honest with you. First, current deals are great indeed, but they will become only better as the MY nears its end in September (caveat: your choice may become limited at the end of MY). Second, I don't think there is currently any equity in any 2007 Accord, especially V6. Assuming you have a sedan without nav, your TMV for trade-in is about $15k (check it yourself here at Edmunds), i.e., your car isn't worth a payoff as a trade. I have the same situation with my own Accord (matures in 3 weeks, 22k miles). In my opinion, the dealer just wants to bait you to lure into the deal RIGHT NOW, he will not offer you the best deal possible and will handily recover the excessive trade-in allowance.
Update on best quotes with sign and drive ($0 out of pocket)
All fees included:
LX 12K/yr 220.96
LX 15K/yr 233.64
LX-P 12K/yr 241.23
LX-P 15K/yr 254.45