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2013 and earlier-Honda Accord Lease Questions
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Car_man
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Subject to limited availability. Through October 31, 2006, to approved lessees by American Honda Finance Corp. Closed end lease for 2007 Accord Sedan models (Model # CM6647EW), for well qualified lessees. Not all lessees will qualify. Higher lease rates apply for lessees with lower credit ratings. MSRP $24,845.00 (includes destination) less the suggested dealer contribution resulting in actual net capitalized cost is $20,941.34. Dealer contribution may vary and could affect actual lease payment. Taxes, license, title fees, options and insurance extra. Total monthly payments $8,964.00. Option to purchase at lease end $14,907.00. Lessee responsible for maintenance, excessive wear/tear and 15/mi. over 12,000 miles/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.
Anyway, all of the advertised deals don't include, "tax, license, title, registration, documentation fees, options, insurance and the like."
Depending on where you live, tax may be built into the payment (you pay tax on the payment amount itself). If that's the case where you live, then that takes care of that. "Options" only applies if you are adding any dealer-installed stuff to the car. And "insurance" is if you wanted to buy extra insurance like a warranty. So all you should have to deal with are license, title, registration, and doc fees. All of those should be set by your DMV except for the doc fees. So I would get a specific breakdown of the fees item by item, then check with your DMV as to their costs.
'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
Manufacturers don't want to step on any toes, so they build dealer profit into their advertised deals. Sometimes quite a bit of profit. Most times, a dealer will be willing to take much less profit than the advertised deal allows.
'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
It was complicated, at least for me:
I turned in an 04 Civic Lx with $9670.00 left to pay. In exchange I signed for an 07 Accord Se - 5sp manual at $250 for 36 months (15,000 miles a year) with $1000 down Instead of the $2690 advertised as the lease special price.
Does that sound right??? The original offer was $1000 down and $269 a month (12,000 miles a year).
I don't know the residual and I am a little concerned about that. What should it be? The Car's MSRP is $20,825. Is that what they base it on?
Thank you.
first of all, yes, the residual is based on the MSRP and it is set by Honda, so you shouldn't worry about it.
The biggest variable I see in your deal is the trade in. If you really want to know if you did OK (although since you already did the deal, i'm not sure why), you'll need to know what they gave you for your Civic and how that compares to its real-world trade-in value and the actual price agreed to on the new car.
'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
It would have been lower if I'd received the trade-in value suggested by Edmunds. However, as I was ready to sell the vehicle for $1100 over the residual price and the dealer gave me $1400 towards the downpayment, Overall I think I made out alright. My monthly is $250, so $40 less per month than the calculator figured with a money rate of .0027 and a residual value of 13,000.
With the trade it certainly gets more complex and the downpayment is a big bite, especially considering that it's money lost if the car is totalled or stolen.
In the future, I'll pull teeth to avoid the downpayment and try to get all charges included in the monthly. My sense from a few postings is that its a better deal that way.
'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
Just a note to let everyone know that I just received a quote of an OTD price of 24,000 (including destination) for an 2006 Accord EX V6. I am thinking about taking this deal because my lease expries in January, but I am so over the mileage that it may be better to do now. I am having trouble calculating payments though. I can purchase the car, and am also open to leasing (if the terms are right). I know that I will owe about 1800 on mileage, and 1200 in payments for the next four months. Does this still seem like a good deal, or should I wait until the end of the year? If I wait until the end of the year, do you think a similar deal would be available?
I am also open to a V6 Coupe, because of the 1250 rebate, but I have a feeling that the price would be the same (24,000).
Any advice?
Car man, can you give me some lease advice for Tier 1 and Tier 2 with whatever residuals Honda has for now?
Thanks
This is supposed to be Internet Pricing, including destination and handling charges, through the dealer's Internet Department.
Does it seem like I can get a better rate than this?
The Accord SE sedan
24/12 $1775 down $200 a month, 36/12 $2797 down $200 a month
The Accord EX sedan
24/12 $2526 down $200 a month, 36/12 $3476 down $200 a month
Also in the lease example they are showing waived security deposit in the deal. IIRC that boosts the MF by 0.0001 on a AHFC lease that would get you from 0.00210 to 0.00220 right there.
You can also work on the lease deal backwards using a lease calculator and solve for the MF. I don't have time to look at today, but maybe later this week.
Dennis
Car_man
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The selling price that you were quoted for this car looks very good to me, but you may want to stop by the following discussion to see how much other community members have paid for similar cars lately: "Honda Accord: Prices Paid & Buying Experience".
Car_man
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Car_man
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Enjoying the 07 Accord SE.
Dennis
What opinions do you all have as to what is a "good" rate? I am in the Metro NY area.
Thanks
The V6 EX-L sedan without NAV has an MSRP of $27,795 so we will assume this is the one you want. Invoice would be a decent price on this car, which is $25,277. Car_Man says the MF on the V6 is .00182 . The residual is either 59% or 60% of MSRP. Plugging into a lease calc shows $315.20 base monthly payment with 60% residual and $322.46 with 59% (I don't know which one is right, I think it is the 59%).
This does not include any taxes, tags, title fees, etc and would be with you buying the car at invoice and paying the $595 (I think) lease acquisition fee and $325 security deposit at signing.
I think on NY leases the tax is due on the total of the payments and is due up front. So $322.46 * 36 = $11,608.56 * your local tax rate - let us say 8.25% = $957.71.
So if you paid $595 + $325 + $958 = $1,878 up front plus title, tags, and dealer fees then your payment would be $324.46 per month. So the $386 payment with $2k up front does sound WAY too high to me. Now I made a bunch of assumptions as to model and price and residual and actual tax rate, but it probably is not a good deal.
The way to do a good lease deal is the same way you do a good purchase deal - negotiate the price of the car first. With today's slow Accord sales you need to be around invoice for the car including destination and dealer fees. Once you have your best price from a local dealer, the the other stuff SHOULD be all the same - the "buy rate" money factor, taxes, etc. Keep in mind, the dealer can mark up the money factor for extra profit - so make sure you check the math and get the proper rate.
Dennis
Dennis
Accord EX-L 4cyl with Nav. List here is 27,795
OTD offer 25,800 (this is 800 over invoice if I read correctly)
MF .0022 (58%)
tax rate 7.375%
Due at signing Taxes 958.69
first month 361.09
admin fee 638.88 (WHATS THIS)
title® 217.50
TOTAL 2176.16
36/12k lease
Well? Should I keep looking?
Thanks for your advice on the boards. I'm planning to lease an 07 Accord SE AT sedan before the end of the month ($22,220 MSRP including dest charge) in a 36-month/15k lease. Car man gives the MF as .00220, but you've mentioned this can be lowered with a security deposit. Is that always true? Do you know the current residual value?
Also, what's your feeling about leasing by end of November vs sometime in December. Honda's leasing special for this car got more expensive in November vs October, do you have a feel this trend will continue?
One more question: do Honda's MF and Residual apply even outside the "online special"? I don't want to pay the cap cost reduction mentioned in the lease details on Honda's website.
Thanks!!
I do have a question, I currently am leasing a 2003 Accord EX-L (no navigation) for 294.13 + tax = 302.95. My lease is a 48 month lease based on 12,000 miles a year. The current odometer reading is 31,000 miles. The lease is up in March 2007. The car is in excellent condition with new tires and new brakes. I would like to get a new 2007 Accord, same specs as my current one and keep the lease payment the same or lower. I thought I might be able to do this as I am guessing I have some "equity" in my current car and could utilize it as a trade in. The MSRP that appears to get me the closest to what I have now is 27618 + 595 shipping and handling. I live in an area where there are not a lot of competing dealers so getting a good deal is difficult and takes a lot of "negotiating".
Does this seem possible based on current prices and programs or am I better off waiting until December or early 2007?
Thanks for your help.
I think the 0.00220 MF is with you paying a security deposit. To get them to waive the deposit, they normally raise the MF by 0.0001 (0.24%). I think returning lease customer can have the deposit waived for no increase in MF.
Normally the MF and residual for the "lease special" is the same as the other cars. In your case, your residual will be lower due to the 15k mile per year lease VS the 12k mile in the special. I think it normally drops 2% to go from 36/36k to 36/45k.
The residual is fixed, can't be changed by you or the dealer. The MF is the "buy rate" for anyone with tier 1 credit but CAN BE marked up by the dealer (seldom done at a Honda dealership, from what I hear). So if you qualify for tier 1 you get that rate and the residual same as everyone else.
The special is just a round numbers thing, they have you put down "some number" and have the dealer discount the car "some amount" to make the payments come out to $249 or $229 or $299 or whatever. You can (and should) get more of a discount than is stated in the special and put down more or less money as you wish. The MF and the residual will stay the same. It is possible and may be likely to get enough discount on the car to wipe out almost all of the cap cost reduction and have the same payment. You WILL have to pay the $595 lease acquisition fee or roll it into the lease. The lower you negotiate the price, the lower the payment. The less you put down the higher the payment. Etc, etc.
Dennis
Generally the residual value drops in steps every 2 or 3 months as the model year ages. So for the same MF the lease would be cheapest in September and cost you the most in August of next year. The car inches closer to no longer being the current model year to the residual drops. In the past later winter or early spring have been choice times to buy a new Accord. When I got my wife's car they had an up to $600 dealer incentive on them AND had a 2% or so MF on the lease at the same time. It actually got a little better the month or so AFTER we did our deal, but not enough to make me sorry we did the deal when we did. But again "who knows" what will happen this time around?
Dennis
$22,500 purchase price
24 month / 24K miles $501 total out of pocket, $298/mo (residual $18,136)
36 month / 36K miles, $501 total out of pocket, $308/mo (residual $15,155)
Will need to work on the purchase price a bit, but overall the numbers look good. Quote good through 11/30/06, then lease deal goes away (or changes to something else I assume).
I guess it all depends on sales and how many leases they write - too many cars on the lot and too few lease deals and the "lease special" will probably get sweeter. If sales and lease volume is fine, then they may even raise the MF for December.
Since the residual just dropped, I think I would wait and see what they announce on/after the 5th. Since the month ends before the current deals, Honda will likely have announced via press release the November sales. Once they do, check the Accord numbers and see how they look. Up from last year? Up from last month? If sales do not look that good, then the odds of better deals coming in December look good. If sales are strong, then you have until the 4th to get in on the current deal.
Dennis
Some dealers give online, phone, or e-mail quotes for just the car. Then when you show up to buy they then add the $595 destination charge to the price AND some dealer fee. So when getting quotes you want the price to be car w/dest and fees included. The taxes, tags, and title will cost the same no matter where you buy. So be specific about what you want in the price and when you do get a price ask again if the fees and dest is included.
Some folks are reporting under invoice prices, but there is not incentive shown at edmunds for 07 Accords so it may be regional. If you KNOW what the incentive is, then take it off of invoice to get a good price. If you can get the car for invoice plus a modest dealer fee that is an OK deal. Anything under invoice that includes the fees is a hotter deal.
Always try for the best deal but don't knock yourself out over a hundred bucks or two. If you run the lease calculations that small of an amount is not going to make a lot of difference in your lease payment. Remember the residual is fixed - 60% lets say - so paying $100 "too much" means your lease amount goes up $40. There is interest, but you can see that would not add much to a payment on a 36 month lease.
Negotiate the price on the car first, then your trade allowance (if any), then finally do the lease deal. Make sure you get the "buy rate" on the lease. The amount you put down is up to you, but there is little reason to put much, if any, down into the lease.
Dennis
Was wondering if this is a good deal. Your feedback, and that of other forum members would be greatly appreciated.
2007 Accord EXL V6 auto trans. No NAV. 3 yr 36 k lease. $1329 out of pocket (inc 1st mo, bank fee, TTL ...). Monthly payment of $334 including sales tax.
Also, in the past I have gotten to my final price and refused to pay a bank fee and the dealer has agreed. Seems like this is more difficult today - your thoughts?
Thank you,
Any help?
I want to lease an 07 accord ex v6 and was quoted 462 down 320 a month for 36 months plus tax and mv fees 12000 miles per year... does this sound like a deal i should make??
I also got quotes on an EX 4 cylinder, because I thought I might like a moonroof, the lowest quote I got was $310 & ZERO down for 36 months.
Thank you for your thorough answer. I did wait out the end of November and now have the time to go shopping. Do you know if the MF or residual changed in December for the SE AT Sedan lease (36/45k)?
Thank you,
Rosa
I am thinking about leasing an 07 Accord EX-L with Nav for 3 Years 12kmi/yr in California. What is the money factor and residual? thanks.