2013 and earlier-Honda Accord Lease Questions

hiker10 · November 2013

I can give you an idea what this means but others on the board could give you more details. The tax is the tax on the monthly amount of your payment. The title and registration is what you have to pay when you buy a car. Every year thereafter you have to pay the registration on your car. Documentation fees vary between dealers. I have seen $80 to around $240 posted on this board. The 12798 payoff after the lease end is what you would pay plus the tax on that to acquire the car. If you were to go the zero down route that payoff amount would be higher. There is also a small tire fee. When they say dealer contribution may vary, that has to do with basically the profit for the dealer. I would say the extra shouldn't be more than 800 plus the 1999.

mergerguy_1955 · December 2013

My son recently completed and signed a new lease for a Honda Civic. He has been a loyal Honda Customer and this is his third Civic. He negotiated the price for the new Civic, provided the first months payment and drove off with his new car. A week later, the Dealer called back stating that Honda Financial decided NOT to honor the contract due to his credit score and that he needed to return the car. This is after they had cashed his first payment!

By way of full disclosure, he had previously been laid off from his job during the summer and had been late with a few payments. He has since found a great position and is again working full time.

What we cant understand is HOW IN THE WORLD did the Finance Manager at the Dealership review all of the numbers, then sit down and have him sign all of the paperwork, give him the keys to his new car and now say that they dont want to stand by the lease. And in fact, he needs to return the car? There was NEVER any discussion as to the lease being dependent on Honda Financial having to review the loan first. There was NOTHING in all the paperwork that he brought home including the lease agreement indicating that the lease was pending. And, as I have mentioned, they cashed his first payment???

Why would they let him drive off the lot in a brand new car if there was a question OR, if something was still pending?

We believe that it is an issue that the Dealership needs to take up with Honda Financial and it was their mistake. The Dealership is stating that oh, we are sorry but you have to return the car! Does my son have any recourse?

Thanks in advance for your inights and suggestions,
RTS in Charlotte

Michaell · December 2013

This is known as a 'spot delivery' and it happens all the time for both regular purchase financing as well as leasing.

The dealer is hoping that when they want the car back, the customer will have fallen in love with it and resign paperwork at a higher price, rate or payment.

I don't think there is much recourse as the deal isn't financed. Do you know what your son's credit score is?

gmanusmc · December 2013

Hiker - you've been providing some great info and advice but just to clarify and make sure no one misunderstands - the residual (what you referred to as payoff at end of lease) is not affected by how much, if anything, is paid at signing to get into a lease. The residual is a percentage of msrp set by the lessor based on the estimated value of the vehicle at lease end. The length and mileage terms of the lease do, however, affect the residual percentage.

Bill G

mergerguy_1955 · December 2013

Thanks for the information. It looks like there isn't much recourse since the lease wasn't finaliized with the 'loan' through Honda Financial. My son's credit score is 654.

Michaell · December 2013

Talk to the dealer .. they may be willing to re-write the contract with a higher money factor, which would increase the payment a bit.

Keep us posted and let us know how it all turns out.

orthopraxis · December 2013

I have been reading and learning, but need a little guidance...

Dealer is offering the following

2014 Accord Sport (located in mid-Missouri)

36k/3yrs

MSRP 25,305
Selling 22,500
LEV RT / AMT 58%, 14,676
MF .00063
Capped Feeds 694
Adj. Cap, 23,194
Upfront fees (not sure what this is) 112.50
Amt. Due at start 372.95
Pymnt 260.45 (tax not included)

Any thoughts would be much appreciated!

gmanusmc · December 2013

Selling price is not too bad at 700 below invoice. Residual and money factor ok. All in all not a killer deal but not that bad. Have you tried multiple dealers to get some competition going? Do any dealers have the 500 flex cash left? Would lower your payment to around 245 plus tax.

Bill G

orthopraxis · December 2013

Bill,

thanks for the feedback.

I have tried, but have not pushed too hard. There are two dealers within 30mins, then its another 2hrs to quite a few. I feel somewhat restricted...

The dealer who gave the quote I listed in my first message adamantly refused to do anything further on the price. I told him that I felt they could reduce the selling price further, but they balked.

I sent the numbers to the other dealer and he said, sure we can beat it, but has not come back with new data.

I do have a 2011 Accord LX-P that will be coming off a 3yr lease with 32k with an approx. 14.2k buyout. That car is in perfect condition. I did not include that in any discussion of the new deal...not sure if that is correct.

Thanks.

gmanusmc · December 2013

Your 2011 is probably worth only 11-12k on trade in so turning it in at lease end is probably your best option. You might be able to get a few hundred more off the selling price working with your two local dealers. Give it a try and see what happens. The deal you have is not that bad so you're probably not going to get much more - that sport model is nice.

Bill

orthopraxis · December 2013

Bill,

11-12k for the 11 LX-P seems kind of low, no?

I will give it a little more effort tomorrow morning and see what happens. I would like to get the payment down a bit closer to $250 if possible.

Thanks.

gmanusmc · December 2013

I went by kbb excellent condition trade in for an estimate on your car's value - I was kind of surprised it was that low too. But like I said - if need be, you can just turn it in. You might be able to get the payment down about $15 if the dealers have any flex cash available.

Good luck and let us know how it goes.

Bill

orthopraxis · December 2013

Bill,

The other dealer came through with an offer of 21.5k selling price, bringing the payment down to 261 tax included.

I think I got a pretty good deal.

gmanusmc · December 2013

Oh yeah - that's much better than the other deal. They must've had some flex cash. Way to hang in there!

Congrats and enjoy the new Accord - that sport is a beautiful car!

Bill

Kirstie_H · December 2013

If you are a parent of young children (at least one under 12 years old) who owns a 2013-14 Honda Accord, a reporter would like for you to fill out a survey, due by December 13, 2013, for use in a print publication. Please email PR@edmunds.com no later than Wednesday, December 11, for a copy of the survey.

hiker10 · December 2013

Thanks for the clarification because I definitely try not to write down anything I am not sure of, or at least preface it by stating that. I actually think I wrote the word residual somewhere on the board when I meant the word purchase. The amount is close to what it would cost to purchase the car at lease-end and I associated it with that. Your definition of residual makes it easy to understand.
Isn't there something in small print in the lease advertisements that states what it would cost to purchase the car at lease-end? (Maybe what I meant by payoff) Is that amount lower if your down payment is higher?

gmanusmc · December 2013

The residual value is stated on lease agreements in black and white and in plain sight - no small print involved because it is a major factor used in calculating the lease payment. "Payoff" might be a bit different because there might be fees and taxes added to the residual if the lessee elects to purchase the vehicle at lease end.

Bill

Karen_S · January 2014

A new topic has been created for 2014 Honda Accord Lease Questions. Please go here to continue.

dcanes41 · January 2014

Hi CarMan,

It was recommended to contact you in regards to my offer from my local Honda dealership here in Northeast Pennsylvania:

For a 2014 Accord EX:
$268/month for 35 months (includes tax)

Negotiated Purchase Price:$22,900

Residual: $15,600

Accessories Included:
Car Mats,
Mud Guards,
Remote Engine Start System II (Installed)

They did mention they included any flex cash they had left since we are close to the end of the month. I would need to come up with the first payment of $268.00 + Title transfer/tags (Guesstimate an additional $170.00). So total due would be $438.00.

Thank you,
Dave

Karen_S · January 2014

For lease questions concerning 2014 Accord, please go here:

http://forums.edmunds.com/discussion/16719/honda/x/2014-honda-accord-lease-questions

2013 and earlier-Honda Accord Lease Questions

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