2013 and earlier-Honda Accord Lease Questions

CarMan@Edmunds · July 2006

Here you go, Tim. If you were to lease a 2006 Honda Accord Sedan EX V6 through Honda Finance between 7/5/06 and 7/31/06 for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00119 and 55%, respectively.

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CarMan@Edmunds · July 2006

Hi yhari. After adding the $595 acquisition fee to this car's capitalized cost I come up with a zero down, pre-tax monthly payment of around $289. This is using last month's lease program though. Using the lease program that is available from 7/5 through 7/31, the payment for an otherwise identical lease would increase to around $313.

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CarMan@Edmunds · July 2006

Hi chipc1. Let me begin by saying that $3,000 is way too much money to put down on a lease. If your leased vehicle is totaled in an accident or stolen and never recovered during your lease, your down payment essentially disappears. I always advise community members not to make any capitalized cost reduction when leasing.

I would be happy to give you my opinion of this lease, however it would be a big help if you would provide me with this car's full MSRP first. This number will show me how much of a discount you are being given and will enable me to estimate what your car's lease payment should be. Let me know and I'll tell you what I think.

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CarMan@Edmunds · July 2006

Here you go, ics88. If you were to lease a 2006 Honda Accord EX-L Sedan (not the V6 & without navigation) through Honda Finance in July for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00210 and 55%, respectively.

The price that you are able to get this car for probably will vary depending upon whether you want to lease or not. Honda is currently providing $750 dealer cash on '06 Accord Sedans. This cash is not compatible with Honda Finance's special lease program. There is a good chance that the price the dealer you spoke with quoted you was taking this cash into account.

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CarMan@Edmunds · July 2006

Hello cmeng. While the lease that Honda is currently advertising on the Accord LX is a good deal, like most manufacturers' advertised lease payments I suspect that if you shop around you may be able to get this car for less. Any additional discount that you negotiate will reduce this car's monthly payment or the amount due at lease signing.

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CarMan@Edmunds · July 2006

Congratulations on your new car, mrcheap666. Thanks for taking the time to share the details of your deal with everyone. Enjoy!

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CarMan@Edmunds · July 2006

Greetings biggerdaddynj. You never mentioned the selling price or MSRP of the car that you are interested in leasing. These are important numbers for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing this car's selling price in relation to its MSRP you don't know how much of a discount you are getting on it. The second reason is that one needs the selling price and MSRP, including the destination charge, of a vehicle to calculate its lease payment. I would be more than happy to give you my opinion of these deals if you let me know what these numbers are.

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CarMan@Edmunds · July 2006

Hi vaulter95. The .00079 money factor was only available on leases signed on July 4th or before. On July 5th, Honda introduced a new lease program. From 7/5/06 through 7/31/06, Honda Finance's special lease money factor for the 2006 Accord Sedan EX V6 is .00119 for consumers who pay a security deposit at lease signing and qualify for the "Super Preferred" credit tier, which is right in line with the number that you were quoted.

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tjordan1 · July 2006

Hi - New to the Forum - Great information source!

I have a question - I'll be finishing up a lease on a 2004 Accord EX-L in September - It will have about 28,000 miles on it.

I'm looking to lease a 2007 EX-L next and was wondering if there is a opportunity to leverage the low miles on current lease vehicle to get a good deal on the new lease?

Is this common? The payoff on 2004 EX-L is around 15k and the trade in value around 16k-17k.

Thanks for the info

qbrozen · July 2006

where did you get the trade-in value?

If the value is what a dealer would give you for the car, then you can either buy the car and trade it in (where it would obviously have positive equity if your numbers are correct) or you can negotiate with the dealer to buy it out on your behalf and use the positive equity. You aren't leveraging the low miles, you are leveraging the value of the vehicle.

When trading a lease, it works exactly like any other car that you either own or finance. If its worth more than what is owed, you can use that positive equity to your advantage.

However, if the dealer would only offer you $13k as a trade-in, then you obviously just want to turn the car back in and start from $0.

tjordan1 · July 2006

I got the trade value from edmunds - with $16,569 being the trade in value and $18,249 being the private party value and the dealer price of $19,834.

qbrozen · July 2006

I'd bet real-world trade-in is VERY close to your buyout price, then.

tjordan1 · July 2006

Thanks - With the car having lower than average miles, it might be worth trying to leverage it as I negotiate for a new lease.

qbrozen · July 2006

It certainly can't hurt to try.

You also might consider leasing an '06 instead of an '07. There won't be any big updates on the '07 and, since you lease your vehicles, it does not matter if you have the latest model (in terms of resale). The '06 will lease for considerably less than the '07, which will make a much bigger difference than any equity you may have in this current car.

ics88 · August 2006

I was told the Honda Leadership Purchase is something like a lease and purchase hybrid. Is this correct?

Would the payments be calculated using the leasing money factor or traditional APR financing?

Can the current $750 dealer incentive apply to this program?

delta737h · August 2006

The link below may help answer your questions...

http://www.hondafinancialservices.com/looking_ahead/lpp.asp

ics88 · August 2006

Does anyone know if Honda is running any leasing specials on the Accord in August?

jayman201 · August 2006

Car man,

I'm looking at two 06' Accords, both EX-V6's, one w/ Nav, one w/o. I know Honda was running a lease special on the 06' that expired on July 31. I was in the dealer tonight and was told this special was extended to August 5. Can you give me the money factor and residual on both V6 nav and non-navi (if there's any difference). Lease is 36 mos, and for either 12 or 15k per year (not sure which one to choose).
On that note-- if I am planning on turning the car in before the lease ends (i.e., not paying any additional mileage overages) would it not make sense to go with 12k/yr. anyway and keep the payment lower?
Thanks in advance,
Jason

anzuelo · August 2006

Car man,

I'm ready to lease a new car for my wife. The Accord LX sedan with automatic transmission is one of my options. I need the August MF and Residual for that car on a 36 month lease 12K miles/year.

Could you please help me?

Thanks in advance

ics88 · August 2006

Hello Carman,

For the month of August, what is the money factor, residual value on the 06 Accord sedan EX-L 4 cylnder and EX V6? 36 month, 15K per year

Thanks.

vaulter95 · August 2006

AHFC's documentation is 'bragging' about no security deposit and a special MF on a subsequent lease with AHFC...but they won't discuss the details. What is this special MF. Is is just waiving the .0001 adder they put on if you don't put down a security deposit the second time or is it something better?

Thanks

stsmythe · August 2006

Just leased an accord EX at Norm Reeves Honda in Cerritos. Here are the details Car_man, wondering if I got a good deal for 36 month lease 12,000 miles.

MSRP: $27,850
Selling price: $24,000
MF: .00129
Residual: $15,875 or 57%
Zero down, just paid first months payment and DMV fees which came out to $598. Monthly payments are $319.

cmeng · August 2006

delta737h and Carman

Thank you both for the replies.

I did a little searching around and found a couple of dealers who would do the deal for $1,500 + TTL.

Took the local dealer's offer. Then it got screwey at the "closing." I knew that no one ever can get a good deal there. Anyone familiar with that?

So what we ended up with was the advertised car with the rubber splash guards, rubber floor mats in addition to the carpets, and that rubber trunk liner deal - whatever it is worth. Raised the mileage to 15,000 a year. Paid $1,900 to drive off including first mos. pmt. Monthly payment was $225 including sales tax and the higher mileage. Residual was about $10,300. Probably not the best deal, given the delta737h example. However, she should have a little equity when the deal is finished in 36 mos.

What was really funny was that we had to sit through a sales pitch about the low quality of the paint on the new cars. And how it was really necessary to buy some type of paint protection for $500 or so. So I asked them if Honda knew about all of the paint problems? Why was Honda putting out such a poor product - particularly when they were advertising the high quality of the cars? Started double talking really fast then. The silly thing was - after we got the thing home - my daughter (the buyer) was still interested in talking about the $500 paint protection. Darned, those people can really scare the unaware.

davidd3 · August 2006

For an even $300 per month; 36 months, 12,000 miles per year, no money down, tax and fees rolled into the monthly payment, paying only DMV fees and first month's payment up front. Westchester County, NY.

There is very strong leasing support this month on the LX and the LX-V6. However, the last of the 2006s are getting hard to find. Each dealer seems to have only a few left and won't be getting any more.

zmnbyu · August 2006

2006 Honda Accord LX V6 Auto. Only option is mud flaps.

MSRP: $25,695
Paid: $22,150
Downpayment: $290(First payment)
MF:.00129
Res:57%
Monthly $275.11 ($290 w/tax)

multiplechoice · August 2006

Hi Car_Man, I'm looking for the August lease programs for the Accord EX and LX, both the 4cyl and V-6. 15K per year, 36mo. Thanks for your help.

pleiades1 · August 2006

2006 Honda Accord SE a/t.
24mos 12000 miles per year $189.00 a month
$2000.00 down plus tax title and license fee.
They didn't concern about security deposit.
(need more negotiation?)

It is first time for me to lease a car, so I'm not sure it is a good deal or not.

jagm96 · August 2006

Hi There:

I am looking to lease after having doubts about leasing. Currently I cannot find a 2006 Honda Accord LXSe in blue near my location. So I decided to possibly look at 2005 or 2004 LX SE or EX. Is looking at a 2004 or 2005 a good idea or should I wait and see what possible 2007 lease offers become available in the next month. I really need to find a car in the next few weeks if possible.

jagm96 · August 2006

Hi, I just found a dealership about 50 miles away from me that has the 2006 Honda Accord LX special edition I am looking for right now. I love to get the ex, but just can't afford it. I was wondering what the money factor should be and residual should be. The MSRP is 22,075.00. I do not know what the selling price of the car is as I just found the car on the internet. No one in my family has ever leased so this is a total new process for me. At another dealer the MSRP a little further away I found one for selling price is $21,525.00. I am hoping to get it with either 12,000 miles or 15,000 miles. I live on disability and have a good credit rating. Thanks for any help. Gosh, there is a career someone to walk us new individuals through the lease so we do not get befuddled.
Have a good day.

davidd3 · August 2006

Don't pay so much attention to relative MSRP when you are leasing, because leasing programs can have an astounding affect on the monthly lease payment, at times making the more expensive car cheaper to less than the less expensive car. Case in point is the 2006 Accord right now. Excellent lease program on the LX and LX-V6. Not as good for the LX-SE. I have no idea why, since they are all trim levels of the LX model. But you will find, as I did, that right now you can actually lease the more expensive (in terms of MSRP) and better equipped LX-V6 for less than the LX-SE. Or, if you prefer to save money, you will find that the LX will be about $50 less per month to lease than the LX-SE, even though the difference is MSRP is only $700. The LX-SE does not make sense to lease right now. For a much better leasing deal, I suggest that you should set your sights a lot higher (LX-V6) or a little lower (LX), whichever you prefer. Hope this helps.

jbell67 · August 2006

hello!

i just got back from a honda dealer. it seems like they have a good deal going:

a 2007 EXL Sedan...sell price $22,500. BUT he said that the MF was .002..?

i told him i looked on the internet, and found that it was .00129.

he also wanted $1,000...covering...title, license and first car payment.

monthly payments of $355 (with tax included).

is the MF still at .00129? today is saturday, august 19.

is this a good deal for a lease?

i live in chicago...zip code 60631..if that matters.

thanks!

davidd3 · August 2006

The low MF is only for the last of the 2006s. You were quoted on a 2007. Consequently you can now lease a new 2006 for a much lower monthly payment than a new 2007.

CarMan@Edmunds · August 2006

Hi ics88. Honda's Leadership Purchase Program is what is known in the industry as a balloon note program. Balloon notes are very similar to leases in that they provide consumers with low monthly payments and the option to buy their vehicle at the end of a certain period of time for a specific price. The main differences between balloon notes and leases is in how they are calculated and that with leases the bank's name is on your vehicle's title, while with balloon notes yours is. Leases are much, much more popular than balloon notes. Balloon notes are usually only used in areas that have sales tax laws that make them more attractive than leases. I do not believe that the $750 dealer cash that you mentioned is compatible with Honda Finance's special balloon note program.

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CarMan@Edmunds · August 2006

Yes, ics88, Honda is providing lease support on the 2006 Accord in August. It is not However providing any sort of support on 2007 Accords yet though.

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CarMan@Edmunds · August 2006

Hi Jason. Honda Finance's current base lease money factor and residual value for a 36 month, 15,000 mile per year lease of a 2006 Accord EX V6 Sedan without navigation are .00119 and 55%, respectively. The money factor for the identical car equipped with navigation would be the same, but its residual value would be 2% lower (many banks' residual values are lower for vehicles that are equipped with navigation). This car's 12,000 mile per year residual values for this term are 2% higher.

It rarely makes sense to try to get out of a lease prior to its scheduled end date. Consumers who do usually end up losing money. If you feel as though you will drive 15,000 miles per year, that is the mileage option that you should go with.

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CarMan@Edmunds · August 2006

Hi anzuelo. Honda Finance's current base lease money factor and residual value for a 36 month lease of a 2006 Honda Accord Sedan LX 4-cylinder with 12,000 miles per year are .00210 and 57%, respectively. When negotiating your lease on this car, make sure to take the $500 lease cash that Honda is currently providing on it into account. This cash will help you to negotiate an attractive capitalized cost.

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CarMan@Edmunds · August 2006

Here you go, ics88. Honda Finance's current 36 month, 15,000 mile per year buy rate lease money factor and residual value for the 2006 Accord Sedan EX-L 4-cylinder are .00210 and 55%, respectively. The numbers for an otherwise identical lease of a 2006 Accord Sedan EX V6 are .00119 and 55%.

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CarMan@Edmunds · August 2006

Hi stsmythe. The money factor that you were given is right in line with Honda Finances buy rate for a 36 month lease of this car with a waived security deposit. This is a good thing because it means that the dealer you worked with did not try to mark your car's money factor up to add additional back-end profit to your deal. As far as this car's price goes, a base 2006 Honda Accord Sedan EX V6 has a spread of a little over $2,700 between its full MSRP and dealer invoice price. You were given a discount of $3,850 on your car. I'd say that this looks like a very good deal. Having said this, I just calculated a lease payment on the car that you described using the info that you provided in your post and I came up with a monthly payment of only $278. Sales tax and the possible inclusion of your car's acquisition fee in its cap cost may make up for some of the difference.

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falashan · August 2006

Are the current lease rates for a 2006 Accord Coupe V-6, 15,000 yearly mileage, MF=.00129 and residual is 57%.

I am working a deal at $27,500 MSRP and $24,708 Cap Cost.
I figure the payment should be $304.52 per month.

Are my figures correct?

Thanks

CarMan@Edmunds · August 2006

You're welcome, cmeng. Congratulations on your new car. Good call on not purchasing the paint protection. Enjoy your new ride!

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CarMan@Edmunds · August 2006

Hi zmnbyu. The money factor that you were quoted for this car is right in line with Honda Finance's current buy rate for it. This is a good sign because it means that the dealer that you are working with is not trying to mark your car's factor up to add additional back-end profit to your deal. The selling price that you were quoted for this car looks good as well. I believe that its dealer invoice price is currently around $23,150. This drops to $22,650 once the $500 lease cash that is available on this car is factored in. As you can see, you're at around $500 below dealer invoice, which as I just said is an excellent price. Overall I would say that you got a very good deal.

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CarMan@Edmunds · August 2006

Hey multiplechoice. Here's the information that you are looking for. Honda Finance's current 36 month, 15,000 mile per year buy rate lease money factor and residual value for the 2006 Accord EX 4-cylinder Sedan are .00210 and 55%. The numbers for an otherwise identical lease of a 2006 Accord EX V6 Sedan are .00119 and 55%. The numbers for a 36 / 15 lease of an '06 Accord LX 4-cyl. Sedan are .00210 and 55%. Last but not lease, the numbers for a similar lease of an '06 Accord LX V6 Sedan are .00119 and 55%. When negotiating your lease on any LX model keep in mind that Honda is currently providing $500 lease cash on them. This cash will help you to negotiate an attractive capitalized cost for your car.

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CarMan@Edmunds · August 2006

Welcome pleiades1. Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

I would be happy to give you my thoughts on this lease, however in order for me to do so it would be a big help if you would provide me with its full MSRP and selling price first. These are important numbers for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing this car's selling price in relation to its MSRP you don't know how much of a discount you are getting on it. The second reason is that one needs the selling price and MSRP, including the destination charge, of a vehicle to calculate its lease payment. Anyhow, post these numbers and I'll tell you what I think.

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CarMan@Edmunds · August 2006

Hello jagm96. As you may already know Honda is not currently providing any sort of lease support on 2007 Accords. It will eventually introduce a special lease program on the '07 model, but when it does will depend upon how quickly it can sell out its remaining 2006 models. I wouldn't be surprised if Honda launched some sort of lease support on the '07 Accord when it is scheduled to introduce its new September incentives on 9/6. You may want to wait until then to make a decision on whether to go new or used. If Honda does not introduce a special lease on this car by then it may be another month.

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CarMan@Edmunds · August 2006

Hi again jagm96. Honda Finance's lease program for this car varies depending upon how long you lease it for and its mileage allowance. For now I will assume that you are interested in a 36 month lease with 15,000 miles per year. Let me know if you want a different length lease. Honda Finance's current buy rate lease money factor and residual value for a 36 month, 15k lease of a 2006 Accord LX SE Sedan are .00210 and 55%, respectively. This car's 12,000 mile per year residual value is 2% higher.

Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

Good luck and let me know if you have any other questions.

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CarMan@Edmunds · August 2006

Hi jbell67. Honda's lease program for the 2007 and 2006 Accords are different. The 06 model's money factors are much lower than the '07 models are right now. The last time that I checked Honda was not providing any lease support at all on the 2007 Accord. I'll check again today to make sure that is still the case. If so and you were to lease one though Honda Finance, you would have to use its standard lease money factors. Its current buy rate standard money factor for 36 month leases is .00293 for consumers who pay a security deposit and lease signing and qualify for its Super Preferred" credit tier. I would be happy to work up a lease payment on this car for you, but in order for me to do so I need you to provide me with its full MSRP (with the destination charge added in).

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CarMan@Edmunds · August 2006

Hi falashan. The lease program that you mentioned in your post is incorrect. Honda Finance's current buy rate lease money factor for a 36 month lease of a 2006 Accord Coupe is .00228 for consumers who qualify for its "Super Preferred" credit tier and pay a security deposit at lease signing. This car's residual values vary by trim level. If you tell me the exact model that you are interested in, i.e. the EX 4-cylinder, EX-L with navigation, LX V6, etc... I can tell you what the residual value is for the car that you are interested in.

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falashan · August 2006

The model is a EX-L V-6 6MT and I have leased Hondas for the last 6 years and would qualify for the lowest rates available.

I am not familiar with the term "Buy rate lease" all of my leases have been closed end with a fixed residual.

This would be a "sign & go" lease with no security deposit.

tex18 · August 2006

I am in the market to for a Accord SE 06. However,they are very scarce. Do you really think Honda will come out with a 07 SE lease campaign?

How much of a internet discount should I realistically expect off the MSRP for a 07 SE?

Thank You.

fstanley35 · August 2006

I've done my work and am looking to lease an Accord tomorrow. Here is what I am looking at.

2006 Accord EXL 4 cy automatic.

24950 MSRP
25500 with fees
22495 Invoice

I was thinking of an asking price of 22,700. But as I understand it Honda is offering $500 on 2006 leases so could I subtract from mu asking price and go closer to $22,000 asking price. Is it possible to go even lower. I live in Michigan if that makes a difference. I have a trade in that I think I can get around $4500 for a total cap cost of around 17,500-18,000.

I was looking at a residual of 7,983 after 60 months @15,000 miles per year and a MF of around .002 (Have excellent credit). All factoring around to a monthly payment of $230 or so.

Does this all sound reasonable to you?

2013 and earlier-Honda Accord Lease Questions

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