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2013 and earlier-Honda Accord Lease Questions
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You can determine approximately how much it will cost you to get out of your current lease by comparing its purchase price to its value on the open market at this time. You should place a call to the bank that you are leasing your vehicle through to find out its exact price. Once you know exactly how much money it is going to cost you to buy your leased vehicle you need to compare it to its current value on the open market. You can find out approximately what your vehicle is worth by looking up its Edmunds.com True Market Value in the Used Vehicle Pricing section of this site. You also may want to stop by the following discussion: "Real-World Trade-In Values". Don't forget to check to see if you are still on the hook for your remaining lease payments. The difference between your leased vehicle's current value and how much it will cost you to buy it plus any remaining lease payments that you are obligated to pay will equal the cost of getting out of your lease right now. You may be able to get a dealer to "help you" get out of your current lease, but dealers don't have any magic way to make your lease disappear. Having the dealer that you get your new SUV from help you get out of your current deal will likely hamper your ability to get the best possible deal on your new vehicle. You may find that you are better off waiting until you are closer to the scheduled end of your lease to get another new vehicle.
Car_man
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I can't say what the lowest possible lease payment is for this car off of the top of my head, so lets do some calculations and see what we come up with. A base 2006 Honda Accord Coupe EX-L 4-cylinder has an MSRP of $25,600 and a dealer invoice price of $23,107. Let' say that you were able to get a thin deal of $300 over invoice on this car. Once the $1,000 dealer cash is taken out, that puts the cap cost at around $22,407. Using these prices and Honda Finance's standard lease program I estimate that this car's 36 month, 12,000 mile per year, zero down, pre-tax monthly payment should be around $317, assuming that you pay a security deposit at lease signing and qualify for Honda Finance's "Super Preferred" credit tier. Unfortunately, as you can see I don't think that you are going to be able to get the $269 per month payment that you are targeting.
Car_man
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Here's a question about money down. Obviously the prevailing attitude is "avoid it, invest in something that appreciates instead." But what I've noticed is that the dealerships seem to be giving a small benefit for the more money down beyond the roughly $28/month it should shave for every $1000 you put down. The difference between every $1000 is closer to $31 or $32. Do you know why this is, and does something like this--getting about $150 off your total lease payments for every $1000 you spend upfront--justify putting money down? Or is it still a disaster waiting to happen?
Thanks.
Interestingly enough, that $289 per month lease worked out perfectly. With a total payment of $3251.41 at the outset, covering absolutely all fees/taxes/etc., the lease would be $289.20/month.
'11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S
Do you have any idea what the new lease deal is for Accord SE Auto Sedan after July 5? I would like to construct a reasonable deal when I approach a dealer next week.
Thanks.
Hard to believe based on 07 Camry and 06 Sonatas dominating roads (or so it seems).
I would appreciate any details and possibly a dealership recommendation.
Is the purchase option negotiable? or Should I go for a new Accord?
2006 Honda Accord Sedan EX-V6 automatic w/navigation
MSRP $29300
COST $28,xxx (I can't remember the exact # he told me)
INVOICE $26,385 (according to Edmunds)
$3,700 DOWN (includes tax, 1st payment, etc.)
$303 + Tax for months
Is this a good deal? Does putting less down and making the payment higher come out to the same end out-of-pocket cost?
Thanks in advance!
I would like to know the MF and residual on a lease for an '06 Accord EX V6 for 3 years with 15,000 miles a year.
Thanks for your help Car_man.
Tim
'11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S
Thanks!
Can you provide more details about your transaction? (i.e. money factor, sales price, etc.)
Congrats on your great purchase!
Based on these numbers .. with paying title, tags, security deposit and 1st month's payment out of pocket and adding the 595 acquistion fee to the cap cost. I am coming up with a base payment of 289.32 .. which with NC tax comes out to $298 even. Does this look correct to you?
Thanks
YH
MSRP - Accord V6 27850
Out the door price 25387
Months 36
Money Factor 0.00079
residual value 0.58
Lease Payment $289.32
Tax Rate 0.03
Total Payment $298.00
3200 down at signing
99 + tax/ month for 24 mo
Option to purchase at $14,107.50
Here's the breakdown:
Gross Capitalized 18158.52
Cap Cost reduction 2978
Adj Cap Cost 15180
Res Value 14107
Thanks
What is the current money factor and residual value on a 06 Accord 4dr, EX-L, auto? 15K/yr, 36 month lease
I got quoted $21,7xx plus TT&L. Is this a good deal? They didn't ask if I was leasing or buying. Does it matter?
Thanks.
The I-4 Honda Accord LX would be a pretty good choice from the standpoint of suitability for her. MSRP is $21,375 and the Cap Cost is $18,052 with a final purchase option of $12,183.
A link to the Honda description of the promo is:
HONDA DEAL
I'm sure many here have looked at the $1,999 cash payment and $199 a month for 3 years deal. I know that I'll have some taxes to pay on top of the $199 a month - OK with that. Wondering if I should expect to get one for less than the $1,999 up front. Any knowledgeable advice would be appreciated.
Do you know if Honda is still offering this?
factorco
Carman, Does this sound like a good deal?
FEATURED SPECIAL LEASE: Closed-end lease for 2006 Accord Sedan 4-cylinder LX Automatic Transmission (Model CM5646EW) for $199.00 per month for 36 months with a $1,005.00 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, 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). Not all buyers may qualify.
Subject to limited availability. Through July 31, 2006, to approved lessees by American Honda Finance Corporation. Closed end lease for 2006 Accord Sedan 4-cylinder LX with Automatic Transmission models (Model #CM5646EW). For well qualified lessees. Not all lessees will qualify. Higher lease rates apply for lessees with lower credit ratings. MSRP $21,375.00 (includes destination) less the suggested dealer contribution resulting in actual net capitalized cost $18,052.58. Dealer contribution may vary and could affect actual lease payment. Taxes, license, title fees, options and insurance are extra. Total monthly payments $7,164.00. Option to purchase at lease end is $12,183.75. Lessee responsible for maintenance, excessive wear/tear and 15/mi. over 12,000miles/year for vehicles with MSRP less than $30,000, but for vehicles with MSRP of $30,000 or more, mileage cost is 20/mi. over 12,000 miles/year. See dealer for complete details.
24 mths / 15k miles a year: $359.08/mnth
- based upon the AHFC Super Preferred credit tier (TransUnion score 720+)
- Money Factor: 0.00129, no security deposit (0.00119 with $900 security deposit)
--- **note this MF is also good for 36-mth leases
- Residual: 65% (was quoted 57% for 36mth/15k miles per year)
- Acquisition Fee: $595.00 (capitalized)
- Cash required at signing: $541.13 (includes first payment $359.08 and $182.05 add. fees listed below)
Car pricing info:
(sale price could have been $18559, with 0.00395 MF, lease payment was $411.81)
Accord LX 4 dr Auto, no options:
MSRP: $21,375
Sale Price: $19,409 ($100 over invoice)
State Sales Tax: $1,213.06 (6.25%)
Gap Insurance: $151.21 (capitalized)
Dealer's Inv. Tax: $50.19 (capitalized)
Total Additional Fees $182.05 (not capitalized)
- Full Serv. Deputy Fee: $5.00
- Dealer Doc. Fee: $50.00
- Road/Bridge Fee: $11.50
- Vehicle Insp Fee: $21.75
- License: $60.80
- Title: $33.00
The $900 security deposit requirment seems extraordinarily excessive. Usually, fund providers will round the monthly payment to the next whole $25 or $50. Also, your Gap insurance is on the high side. Gap coverage, as a rule of thumb, should cost no more than 0.1% of the MSRP annually. I structured the following lease proposal for a friend in Ohio and the dealer accepted.
Base MSRP 2006 Accord Sedan 4-cylinder
LX Auto w/o PZEV CM5646EW.... 21,375.00
Negotiated Selling Price.............. 18,034.27
1st Month’s Payment.................. 245.00
Security Deposit......................... 250.00
Acquisition Fee.......................... 595.00
Gross Capitalized Cost............... 19,124.27
Adjusted Capitalized Cost........... 19,124.27
Residual Factor.......................... 0.57
Residual Value.......................... 12,183.75
Money Factor.............................. 0.00119
Monthly Lease Payment................ 230.05
Term (months)............................... 36
Sales Tax Rate............................... 6.50%
Monthly Payment incl. Sales Tax..... 245.00
Total Up Front Costs....................... 185.65
The up front costs covered title/registration/plates and dealer doc. fee.
_________________________________________________________
There is a problem with the wording in Honda's national Ads. The Ad states...
FEATURED SPECIAL LEASE: Closed-end lease for 2006 Accord Sedan 4-cylinder LX Automatic Transmission (Model CM5646EW) for $199.00 per month for 36 months with a $1,005.00 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, 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). Not all buyers may qualify.
Subject to limited availability. Through July 31, 2006, to approved lessees by American Honda Finance Corporation. Closed end lease for 2006 Accord Sedan 4-cylinder LX with Automatic Transmission models (Model #CM5646EW). For well qualified lessees. Not all lessees will qualify. Higher lease rates apply for lessees with lower credit ratings. MSRP $21,375.00 (includes destination) less the suggested dealer contribution resulting in actual net capitalized cost $18,052.58. Dealer contribution may vary and could affect actual lease payment. Taxes, license, title fees, options and insurance are extra. Total monthly payments $7,164.00. Option to purchase at lease end is $12,183.75. Lessee responsible for maintenance, excessive wear/tear and 15¢/mi. over 12,000miles/year for vehicles with MSRP less than $30,000, but for vehicles with MSRP of $30,000 or more, mileage cost is 20¢/mi. over 12,000 miles/year. See dealer for complete details.
The problem is the underlined part that says that the suggested dealership contribution determines the $18,052.58 sell price. In other words, this EXCLUDES CUSTOMER CAP REDUCTION. Therefore, the $18,052.58 is the sell price. I spoke with two AHFC reps; one was sympathetic while the other said that the wording is "problematic". I pointed out to the dealer that "Net capitalized cost" is no longer a term recognized by Reg. M which is the reg. that governs consumer retail leases. After some discussion, the dealer agreed.
Thanks!!!!
I started with the $18,052 in the Ad which I new was below invoice and, possibly, below cost as well. I rolled all the up front costs into the lease. The program automatically prompts me for the security deposit. I looked at the payment and rounded up to the next whole $25 as I wanted to roll the security into the lease. Then the program shows the final payment. I have the flexibility to amend the payment. I rounded it down so that my payment was an even dollar ($245) amount. Because the payment was rounded down, the $18,052 sell price was adjusted downward to $18,034. In Ohio, taxes are levied against the total payments (i.e., term x lease payment x sales tax rate). However, the program will compute tax on just the payment stream for those states that deploy that methodology.
I essentially used the Ad's wording as a bargaining tool. The dealer agreed after a somewhat lengthy discussion (35 minutes) concerning the wording in Honda's Ad.
I routinely prepare a one page lease proposal similar to post #595 and email or FAX it to the dealer. There are only two ways to respond: YES or NO. It saves alot of time. When dealing with dealers, one must (A) Always be in control and (B) Be very firm and disciplined.
Don't worry... you did okay. I'm glad you didn't pay that $900 security deposit because that seems bogus to me. However, the cost of money differential between 0.00119 w/security and 0.00129 w/o security seems to be a high price to pay for the privilege of foregoing the security deposit.
final questions: when faxing in your proposal, do you address it to anyone in particular? when talking to the dealership about your proposal, is there a particular person that you feel is the right "decision-maker" to spend your time with or who won't be wasting your time? Obviously you spent a good deal of time (35 minutes) discussing the semantics of the wording in Honda's Ad - i have a hard time imagining a salesman being qualified to make this decision.
Thanks again for your posts. I got a lot out of them and hope others will too.
It's always a good idea to FAX/email the proposal to a decision maker; otherwise, you're spinning your wheels.
Thanks for your comments. I'm always eager to learn as well as help.
The dealer is quoting me .00119 and 57%. What gives? And I've seen you telling people to request the 'buy rate' MF but the dealer provided me a sheet from AHFC showing the Super Preferred rate of .00119 and said it is what it is and there wasn't anything better he could do. Is this legit?
Please explain this to me. :confuse:
Thanks
The 0.00119 and 57% applies to the Accord LX for sure. I don't know about the EX trimline. In fact, I don't believe Honda is running a lease promo on the EX and so I'm not sure where the 0.00079 is coming from.
You can check the AHFC website...
http://www.hondafinancialservices.com/planning/frm_spec_offers.asp
Thanks though.
There are several reasons he's advising me of this.
1. I don't know how many miles I'll be driving, although I've been averaging 17,000/yr. for the past 5 years.
2. He's worried about additional fees at the end of the lease. Apparently he was clipped pretty bad for seemingly insignificant damage on his own lease.
3. With a purchase you have a business asset.
4. Apparently, when you buy a car for business use you can toggle back and forth between writing off actual expenses or writing off mileage. With a lease, whichever method you use the first year must be followed in subsequent years.
5. You can always sell the car if needed. Leases are more difficult to get out of.
Does anyone have any advice on this subject?
1) If you aren't sure, then don't lease...over-mileage charges can be onerous..
2) Not likely, if you are within the mileage limits and take care of your car..
3) True.. but, to what advantage?.. I'll defer to your accountant on this, but most small businesses prefer to not tie up capital.
4) Again, I'll defer to your accountant.
5) True.. and True...
It is hard to screw up a straight purchase.. Leasing can be advantageous under many circumstances, but when it is a bad deal, it can be a very bad deal..
regards,
kyfdx
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