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2013 and earlier-Honda Accord Lease Questions
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The Car max suggestion is a good one. If they buy the car, then your obligation would be complete, and you could possibly realize some equity above the buyout amount.
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A car lease is a contract with a bank.. They will use every opportunity to maximize their profit, if the contract isn't completed as agreed upon. Common sense has little to do with it.
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They should actually be benefiting from an early return.
But, if you turn it in early, then you haven't completed the contract. They can invoke the early termination terms, and may do so, if it benefits them. They may have insured the residual, which they may not be able to collect on, if the lease is terminated early.
Or, they might do it for the regular reason. Because they can, and because they make more money.
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Honda does NOT have an early termination fee, as long as all the payments are made. If you think about it they rather have the car earlier cause they got all there payments and getting the car earlier then the lease ends.
So I went back and forth with the floor manager at a honda dealer for about 1 hour...
The Best LEASE offer he gave me before I left in good terms was...
Accord 2013 LX
430 due at signing that including all upfront fees (included registration fee) WHICH INCLUDED first months pay (idk what to think of this).
367 a month for another 35 months
Gotta get rid of my trade in which is a financed Jeep Liberty 2011 Sport no extras RWD w/ only 27k miles (yes horrible car, i know). This is what is holding me back but i have to get rid of it since I just want one car. 17.2k is left on the loan but the value the dealer gave me (after i negotiated its value up since they agreed its in awesome condition) is 14k. Difference of 3.2k (negative equity) is being added to the lease offer which is basically 88.89 (3200/36) additional charges to the monthly payment.
12k mile allowance a year
No additional warranty or maintenance cover.
THE OTHER DEAL:
Talked to another Honda Dealer Floor manager. This guy said same deal, but no down payment or no inception and no first months on delivery. DID NOT MENTION ANY OTHER FEES (i was stupid i should of asked).
How much is the usual registration fee.
The math they r using on me:
(23270 - 14427.4 ) / 36 = 245.63
(23270 + 14427.4 ) x 0.00089 = 33.55
3200 / 36 = 88.89
12k miles a year. No talk about deposit, idk if this is a bad idea or not. I usually maintain my cars pretty good. They r firm on the car's cost because they keep saying "lease = sticker. no1 will negotiate the car's cost on a lease".
Wanna know what you guys think. Keep in mind, I have to get rid of the Jeep so it has to be part of the deal. Fastest way is thru a dealer. I know I can maybe get more if I were to sell privately but that would be complicated because the car is on lien.
If I am wrong on anything, please correct me. If I possibly forgot to mention something, remind me . Also I live in southern california (if it matters)
TY in advance
Should the car be stolen or totalled, you will be out any money you give the dealer at inception so I always recomment putting all fees (taxes, registration, lease inception, doc fees) into the capitalized cost and never give a down payment. The largest part of the capitalized cost will be the actual cost of the car and you need to negotiate that. I suggest you go to the Prices Paid forum and research what LX's are going for in your area. Let's say they are going for $21,000, doc fees of$300, registration of $200 and Honda lease inception of $595, then the capitalized cost would be $22,095 vs the $23,070 he is using. That would save you about $30 a month.
I know what you are saying. But I'm speaking from experience. I had a Accord lease that I paid up 2 months early and I called Honda finance if there is any fees associated with turning it early. They said that they rather have it early cause the car is worth more today then tomorrow. If it's not Honda lease lease then I wouldn't know.
Just some questions:
According to your message, second formula: (23,270 + 14,427.4) x 0.00089 is incorrect because the bold value is suppose to represent the capitalized cost but they are using the MSRP. Just want to confirm that.
Ultimately, every dealer I am working with are being very strict regarding lowering down the deal (maybe cuz they r scared of the value of the liberty?) value.
$13,313ish total leasing cost is the best deal i can get at this moment, which translates to 368.07 a month + $63.00 upfront (excluding first months on delivery).
Basically, my question is how should I effectively negotiate the cap cost down cuz these dealer guys r playing hardball. The salespeople say "MSRP = Cap cost. u cannot talk to my manager/financing guy". How can I get to the endgame leasing contract with less cap cost? Forcefully talk to a NEW manager/ financing guy from a DIFFERENT dealer and just negotiate with him? Salespeople cannot negotiate cap cost when it comes to leasing?
Again, thanks all. Deeply, DEEPLY appreciate all the help!
Unfortunately it always complicates matters when you have a trade.
yes but hondas now getting strick with lease purchase price cause of turnin=0 and 1500 damage credit
not many do this and probly in three years its gone then will be damage+disposal=$$$ like toyota nissan ford and others
Negotiated purchase price $26215
MSRP $28860
Flex Cash ($500)
Down Payment ($2500)
Money factor .00089
Residual value 57%
No trade
12k mi $282
15k mi $299
I'm coming up with lease pmts of $231 on 12k and $254 on 15k. Using the numbers above (and no fees) do these figures look correct?
all i know is my area no body go below 221xx sell price on the truck with lease but with honda .9 finance sale price was lower. go figure. tried and tried and tried but a no go so i guess different areas
anyway after reading through these many honda forums back some 3+years seems buy price cheaper than lease price tho crv lease 00135/00145mf is crap. honda/acura do take a hit with damage at turnin compared to nissan and ford et al read about sgs on the web and you'll see what i mean
anyways looked to make sure residuals were exact same at 64%/15920 in case we buy later. aware of sell price but total 36mos cost is key for lease way i see it accord/civic/crv/ferarri/porsche etc. with constant residual jus look at total cost for 3 years. cheapest dealer wins on lease with same vehicle/residual
why care bout sell price for lease when 36mos total cost with same residual is key comparing dealers in a region
Car_man
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Car_man
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Here's an example of what I mean. Let's say an Accord is advertised at three different dealers at the invoice price of $25K which is $3K under MSRP but Pete wants to lease an Accord. He visits the three dealers, not understanding the components and formula that results in the monthly lease payment. Two give him a monthly payment of $350 and the third gives him a payment of $300. The $300 is within his budget so he happily signs the deal. However, if he knew the formula and asked for the money factor and residual and plugged it into a calculator, the cap cost (let's assume there are no fees in this example) would come out to be $28K, the MSRP. Pete may be happy but the dealer is even happier. I would have put it into my calculator and told the dealer, hey, you're advertising to sell the car at invoice but it looks like you are using MSRP as the cost of the car in the lease. He would mutter to himself that I got him and I would walk out with a lease amount about $90 less than Pete's.
When I shop around for a lease, I get the money factor, residual, and my estimates for doc, registration, taxes and lease inception fees. I add the selling price based on a price that I would consider a good deal and then I calculate the lease payment. Once I have that number, I can shop that amount around knowing that every $10 difference is equivalent to a $333 difference in the cost of the car.
I always advise consumers to roll fees into vehicles' payments.
I personally don't worry all that much about holdback. I shoot for a selling price that's close to dealer invoice minus incentives on most high volume vehicles.
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The numbers for an otherwise identical lease of an EX-L 4-cylinder are .00089 and 58%.
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I think your residual may be wrong. At the Weymouthhonda.com site, their lease calculator indicates that the residual is 56% for a EX-L coupe. Also, while it's wise to put as much down as possible on a purchase, it's the opposite with a lease. If your car is stolen or totalled, everything you paid at inception is gone so you want to minimize those costs. I put everything into the lease and get 36 equal payments. The only exception is if you must keep a low monthly debt payment to income ratio because you intend to apply for a mortgage.
This assumes you can get the coupe for the same discounted price as a sedan and you don't lose the savings to higher insurance premiums on the coupe.
http://www.planethondanj.com/happy-honda-days-new-jersey.htm?gclid=COzTwaCGr7cCF- - YqY4AodsAwA8A
It's 10k miles year...but even if you added 5,000 miles x 20 cents/each = $1,000 / 39 months = ~$25/month --> $184/month
Unless they're not mentioning a "cap cost reduction" payment
What's the catch?
However, that's not how it's done.... to go from 10K mi/yr to 15K mi/yr, just lower the residual by 3%... that's going to add about $700 total to the lease... so, under $20/mo. more...
Is it legit? No idea... but, add in tax, four years registration and probably a $399 dealer fee on top of all that.. they are already showing a bank fee that looks to be marked up, as well...
If it's legit, and all those costs are added in, you are still only around $210/mo. + tax... with only first payment due at signing... that looks pretty cheap to me for a 39mo, 15K/yr lease...
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residual 15661. not from honda. 10k only. oh its website mistake. wheel locks trunk tray guards=499+tax. tax&tax&tax on everything
lxcrv was like more n 2000 to deal and was really like 309 month
they have free dogs n food Memorial Day so driving there in our cheaper leased crv for some food
happy holiday evryone
Thanks again!
Selling price: $20,000
36 month lease
12000 miles/per annum
Residual 61%
MF: .00100
Base payment $223
Monthly payment = $239 month ($223 + 6.75% tax)
Due at signing: $583 (1st month of $223/$250 doc fee/$60
Appreciate the feedback!
Just wondering what some realistic sale prices are for LX, Sport, EX? How much below invoice can one get?
Invoices I found incl destination: 21,369/22,929/24,037 for LX/Sport/EX
Weymouth's site has: 20,697/22192/23250
How much lower can one reasonably get?
I'm assuming residual, and MF aren't negotiable right? That's why focusing on negotiating the sale price.
So far I've gotten sale price of 20958/22485/23571 for LX/Sport/EX
2. Also, I've read people posting that it is recommended to roll the fees (doc, bank, DMV, etc) into the monthly payments, instead of paying up front? Any reason (aside from not having to pay upfront)?
thank you for all of the advice on the forums
Tomorrow is June 1...will they still honor the price, or do they go up again?
Just wondering bc what if in June Honda offers dealers more flexcash/rebates or something?
Bc I don't need a care TODAY...I can wait another week or 2
June could have a better rebate and flex cash deals.
End of June is the end of the 2 Quarter for car companies. Big savings at end of the month for sure.. Dealers that need those sale incentive numbers will be hungry to sell at much lower prices..
23 Telluride SX-P X-Line, 23 Camry XSE
Just like you can expect pricing to go down in June, it is likely that residuals will go down in June also. Each percentage point decrease will increase the lease by about $8. On the other hand, each $265 decrease in your cap cost will lower the payment by about $8. Doubt the money factor will change much between May and June. Economy wise, there’s probably a greater chance that MF’s would rise than fall but they could also lower the MF to spur volume. If I were you, I’d take my chances and wait till June.
Anyone know the June MF and Res % for all the trims? Where/how do you guys get that sort of info?
Also how exactly is the customer's credit scored factored in? There's different tiers of MF depending on customer credit?
Most dealerships do not want to talk about how leasing actually works. Some sales reps. and managers do not know how it works. They get very defensive: "Why do the details matter? Its $XXX a month. That's the bottom line."
Happy hunting all!