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Car_man
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Where could I find more details on this lease deal (like which models it specifically applies to)? There is a lease offer on Honda’s website for an LX Odyssey but I am looking for an EX. According to previous posts my credit score qualifies me for the 'Super Preferred' rates which I assume includes the 0.00164 money factor you mention. One of the local (Greenwich, CT) Honda dealers sent me an offer for an EX that is around 250 below invoice including destination charge which seems good for this area. They are also advertising a 24 month lease 2007 Odyssey LX for $159.00 per month with $3,499 down (total payments $3,816) with a residual value of $17,843.20. The listed MSRP of $26,240 (corresponds to the Edmunds MSRP including a Destination Charge of $595) so the residual value is 68 percent. I emailed the dealer asking what the money factor is for the LX offer but have not heard back from them today. I think the EX at 0.00164 and 250 below invoice (assuming that's an option) is better that the LX deal but without knowing the exact details yet it's hard to be certain.
Andrew
Thank you
I need your help!
Just got a call from the dealer, that I need to go back to sign the contract again. That the bank did not like how it printed out inline, but that the numbers will not change.
Now, this tells me that they don't have the funding yet, and that I may change banks, and get the Honda deal.
Could it be possible, or I am out of luck? I am really upset that they lied to me and that the funding was already done when I asked them...
Thanks in advance,
(36 months/15K mi)
$395 monthly and $1500 out of pocket. Prices include all taxes/fees. MF 0.00164, Residual 55% per the special offer.
What do you guys think? Looks like there is a need to push these vans out before the end of the year!
I ended up with $1,445 below invoice, $432 per month and $1,200 up front. $595 bank fee is included in the monthly payment.
Good Luck.
I am planning to lease Honda Odyssey EXL 2007.
Dealer is offering me With $2000.00 drive off (down), 36 payments of $343.00 plus tax based on 12,000 miles per year.
I live in Norther California. Can anyone let me know whether it is a good deal to sign.
Thanks in advance.
I am in Norcal too. What is money factor? What is residual? What dealer? I am probably 3-4 months away from a leasing a touring/nav. My last honda lease was with Hansel in Petaluma. I was very happy with the deal from start to finish and will no doubt start there on my next one.
Cap cost is a good number and the residual sounds about right. Taxes seem very high but that's local and may in part account for a number higher than you'd like.
$510 x 36 = $18,360. Add that to the residual and you get $39,732. I would think that you could buy it and pay less overal even if you financed it for 60 months.
If I purchased for 60, I would be paying just over $42k. 60 months at ~$700 or 36 months at $556 and a new car in Jan of 2010 (which is the primary reason I lease) rather than trying to trade something in with 24 more months on the books - the lease still seems more attractive.
The reason I walked was that the sales manager was very inconsistent with his MF explanation. It was very odd.
I'm in the seattle area also and have not enjoyed dealing with local dealers. I have a deal on the table for 31,533 (incl destination) +TTL for a 2007 EXL w/RES & NAV but would have to travel to Southern Cal since there are no BLack/Ivory ODY's around the NW. THe money factor is .00164 but this does not apply for the Touring only EXL models (or so I've been told).
THe numbers look like this for a 36 month lease 12k miles:
34,890 MSRP
31,533 NEGOTIATED (incl destination)
2,500 Total down
.00164 Money factor
55% residual
$372/month + $35 tax = 407
LOL, I'll have to ask isellhondas about that.
Yeah, sales tax here in Columbus is 6.75%. I understand yours is 9.1% or so.
I financed about 34K for 60 at 4.25% when I bought my '05 Touring R&N (sales tax credit was 100%, hence none was paid). My payments are $631.99 per month.
If he couldn't give you a staight answer to your MF question, you were wise to walk.
Good to know that I'm not the only one not enjoying the experience up here.
I checked your numbers and I came up with $384 p/m w/ tax. $352.50+32.08=384.58. Maybe there are some other factors. This was based on a residual of $19,190.
Maybe somebody else should confirm my numbers, but it looks like your deal is $22 p/m too high. It sounds like we're all being gouged an extra $20+ p/m!
3 yrs / 12k miles per year / 60% residual / .00164 MF / $693 out of pocket and a monthly payment of $308 (including tax.)
I too had that GREAT 04 deal on the EX with DVD, but with very little out of pocket was able to get a brand new EX for only $19 more per month than I had been paying. I'm considering it a moral victory!!!
2007 EX-L w/RES (don't need nav)
$30,500 /incl destination
36 months, 12K miles
57% Residual (only 55% for the same vehicle with Nav)
.00164 Money Factor (assumes good credit)
$595 Honda Acquisitions Fee
I paid the fee and licensing and document costs up front. No sense in paying rent on them.
Things I learned dealing with Honda:
#1 - Shop around to see what money factors dealers are offering, just as you do price. Personal commentary: Honda credit should publish their money factors directly to the public. As a returning lessee, I am VERY disappointed that I had to "discover" a lower money factor. Dealers have to make money and I agree with that, but they should make the money on the price of the car, not financing.
#2 - Review your calculations using a lease calculator before you go in to see what numbers are above the line(being financed) and which numbers are below the line (being paid by you). A mix up here will confuse you on your monthly payment amount.
#3 - Ask for residual values from each dealer you speak with. Cross check the residuals as well. Mine was "accidently mixed up" twice. Also, make sure you need the extra features, the difference in residual with Nav and no Nav is substantial on the Odyssey.
#4 - Stay firm and be patient. Sales people are trying to make a living and may rush you. Just keep calling and working through the numbers.
Also, dealer tells me that the Residual % on this vehicle goes to 55% tomorrow, but he did not have the new MF. They said they are willing to rework the paperwork if the deal would change substantially in my favor. Anyone know what the new Res % and MF are on the Touring with R/N starting on 1/3/07?
Finally, I was surprised a bit by the $595 "AHFC upfront acquisition fee." It's not disclosed or even defined on the Honda Financial Services website or included in the Lease vs Loan Payment Estimator on the honda.com website. Seems strange that Honda would advertise "no disposition fees" on the Lease page, while not disclosing an upfront $595 fee that the dealer rolled into the price, which increased my payment almost $20/mo. Anyone else surprised by this fee that's not even defined on any Honda or HFS website I can find?
Lease numbers can get so confusing, but here is the clearest way I guess to explain it.
EXL-RES
$29,348 Cap Cost
$595 Honda Motors Lease Acquisition Fee
$22 title + lemon law
$29,965 Net Cap Cost
57% Resid (on $33,290 MSRP)
0.00164 Cost of Money
12K miles/36 months
Would have been $386 + tax per month; I did it as a sign and drive, so $397 + tax for 35 months.
Price paid:
$369/month ($395 with NJ 7% tax) 36 months/15K miles
$1500 down at signing (incl. all taxes and fees)
The .00164 money factor is no longer being offered. Honda's "best credit" money factor is now .00285. Also gone is the 60% residual on the EX for tha term and 12k/yr; they were only willing to offer 58% of MSRP
Most interestingly, we could not get our lease payment calculations to agree--their calculation was consistently roughly $30 more. I couldn't tell whether they were honestly confused or playing, although I got the distinct feeling that in the end, they thought they had done all they could. I got them to move from $300 per month with $750 down to $260 per month (before 5% MA sales tax) with $613 down, both by dropping the price and increasing my trade allowance from $3800 to $4900. The down payments simply reflected $83 registration, $289 doc fees and first month's payment. They refused my final offer of $750 down, $230 per month, with the iPod adapter and cargo net thrown in.
As to the payment differences, for example despite our agreeing on the following inputs:
Term: 36 months
Net Capital Cost: $21,788 (reflects only $4900 trade and $595 bank fee--no other fees were capitalized)
Residual: 58% of MSRP of $29,290 (which includes Dest.)
Money Factor: .00285
I get a payment of $243.84 plus tax. They got roughly $275 plus tax. What am I missing?
Car_man
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Using the prices that you mentioned, an MSRP of $29,290 and a capitalized cost of $21,788, I estimate that this car's 36 month, 12,000 mile per year zero down, pre-tax monthly payment should be around $243.84 just like you calculated. It is difficult to say why the dealer came up with a different payment, but I wouldn't agree to lease from them until I knew why there was a difference.
Car_man
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As to their weird lease payment calculation, when I overhead the backroom guy tell the out front salesman that the interest portion is "complicated," when trying to explain the difference, I became less certain that they were being straight with me. In fact, if one were to compute the interest exactly (e.g. amortize the net capital cost over the period of the lease), the interest fee would be slightly less, not more, than the approximation all leases use (that the amount halfway between the net capital cost and residual is borrowed at a fixed rate for the period of the lease).
The only good faith explanation I can come up with is that somehow they were not entering the destination charge into their "program" when computing MSRP for the purpose of the residual, and they were similarly not including the acquisition fee in the net capital cost, even though they were telling me it was included in the number they were showing me. Those changes about account for the difference (at the money factor in question, every $1000 drop in the difference in net capital cost over residual leads to roughly a $30 drop in monthly lease payment).
Regardless, I think your advice to wait a bit is excellent, and it was that thought that ultimately drove me from the dealer.
h8byngcars is now dunbyngcars (at least for 3 years!)
I was able to negotiate a cap cost of $30k ( which is below invoice)
i put $2grand total down, and a monthly pymt of $355. 12k miles a year for 36 mos.
I had a 2004 ody exl-dvd coming off lease... i think its a pretty good deal...?
what dealer did you go to?
Negotiated Car Price: $25,000
Dest. Charge: $595
Gross Cap. Cost: $25,595
Trade allowance ('98 Honda EX): $4,200 (a fair price)
Cash Cap. Reduction: $250
Net Cap. Cost: $21,145
Residual: $16,988.2 (58% of $29,290 MSRP)
Money Factor: .00285 (Honda Preferred wo/security deposit)
Monthly Payment: $224.15 plus 5% tax of $11.21
Cash down payment: $1507 ($250 cash cap. cost reduction, $222.50 for 5% tax on trade and reduction, $235.16 for 1st month payment, $318 for TTL + Reg., $481 for Honda iPod Adapter + Cargo Net accessories)
Negotiated Car Price: $25780.40
Dest. Charge: $595
Gross Cap. Cost: $26375
Residual: $17574 (60% of $29,290 MSRP)
Money Factor: .00164 (
Monthly Payment: $316.56
Cash down payment: $1471( $954.43 for 8.375% tax on full lease amount of 11396.16, 316.56 for 1st month payment, 150 for TTL + Reg.
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