Honda Pilot Lease Questions

CarMan@Edmunds · January 2006

Hello dmjjpy. If you were to lease a 2006 Honda Pilot LX 4WD without nav or DVD through Honda Finance right now for 24 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00094 and 67%, respectively. The numbers for an otherwise identical lease of an '06 Pilot EX without nav or DVD should also be .00094 and 67%.

Car_man
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CarMan@Edmunds · January 2006

Hi owl. The salesperson who told you that the residual values for the 2005 Pilot are the same as those that are available on the 2006 model was wrong. Honda Finance's 36 month residual value for the 2006 Pilot EX-L 4WD (without nav or DVD) is 55% versus only 50% for the '05 model. Not to mention that the '06 model's money factor is much lower, .00094 vs. .00265. The only advantage that the 2005 Pilot has over the '06 model is the $1,500 dealer cash that is available on it, and I don't even think that it would be enough to make up for the difference in lease programs. If you can get a great deal and want to pay cash or finance your Pilot, I would consider an '05 model, but for leasing you will probably be better off going with an '06.

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owlwho2 · January 2006

Thanks Car_man. His claim just smelled wrong to me, and it went against all the leasing fundamentals I've learned around here and elsewhere.

--owl

thejerseydevil · January 2006

Car_Man,

I contacted carsdirect.com and was quoted $29,202 (including destination) for a 2006 Pilot EX-L. I asked the rep for his best quote for leasing on this vehicle. Here's the email I received back. I'd appreciate your insight. The quote includes all kinds of things I've not seen mentioned elsewhere in this forum ("lease assignment fee"?).

The rep specifically clarified that this quote was worked up from the $29,202 quote. Does the Cap Cost make sense?

Here is the quote I received for 36 months/12k miles/$0.00 down, security deposit waived (copy/paste):

Residual value- 16,845 (52%)
Miles adjusted +2% 647.90
adj residual 17,493.30
buy rate .000590
assignment lease fee 595.00
total cap cost 30,328.52
vehicle market up 200.00

36 month 12K 384.75 + 3% = 396.29

skitele · January 2006

car_man/kyfdx

I've been shopping around Northern Colorado for a lease on a 2006 Pilot EX-L. Here is the best deal I have found on a 36 mo/45 k lease.

MSRP 33595
Price 30280
Acquisition fee 595
Capitalized Cost 30875
Residual 18477 (55%)
Money Factor .00104 (2.5%)
State and City Sales tax (5.9%) 939.78
County sales tax (0.8%) 99.18 paid at signing
Document Handling Fee (dealer profit) 396 due at signing

Monthly payment: 395.71 + 23.35 (tax)= 419.06
Total due at signing: 923.74 (first payment 419.06, county sales tax 99.18, Government fee 9.50 and Document handling fee 396).

I opted out of paying a security deposit (400) and took the .00104 money factor. Have other buyers obtained a money factor of .00094 without paying a security deposit?
Anything look out of whack with this deal. I have visited 4 dealers and this is the best deal I have seen.
Thanks for your help!

glmw · January 2006

I know Honda currently has a lease incentive in January for the Pilot. Is there any way to tell if this will be continued into February?

grsmom · January 2006

Have never leased before. Scary thing when you have always owned your cars. We would like to trade in our 01 Mazda Tribute (too many problems) for an '06 Pilot EX 4WD. The price we were quoted was $30300 with running boards, cross bars & wheel locks included. MSRP is 31295 + 967 for the accessories. The terms of the lease:

$950 down
259.80 per month payment/36 months/18K miles per year
0.0014 factor
17425.10 residual value
$6000 for the trade

We have some money put away to finance but would like to purchase a home this year. We were thinking we would need the cash for the house vs. a car. Are we doing the right thing? We would like to keep the car after 3 years if we like it enough. Is this a good deal? Should I try to negotiate some more?

brianinsf · February 2006

Hello--

Our lease on a 2002 CRV expires shortly, and we're planning on leasing a 2006 Pilot in its place.

My question is: given the fact that the 2002 maintained its value better than any vehicle in its class (blue book is still quoting a value over 16,000), will the actual dealer that I return it to profit more from it, or does it even matter to him?

I realize that contractually its irrelevant to the deal; however, if I know that the dealer will be dying to get his hands on the CRV, perhaps it will help with the negotiations for the Pilot.

Any thoughts or insights would be greatly appreciated.

Thanks

kyfdx · February 2006

Even though you are returning the car to the dealer, it belongs to the leasing institutiion.. (Honda Finance?).

They set the price that the dealer pays for the car, if they decide to keep it... They use current auction prices to determine that, not necessarily your residual amount..

However, if your residual is substantially below the current wholesale value (which is probably closer to $13K-$14K), then you could trade the vehicle to the dealer, and pocket the positive equity. This would be a rare occurrence, though..

You can't really go by retail values.... Trade-in offers are usually $3K-$4K back of retail.. I sincerely doubt you have any positive equity in the vehicle..

On the other hand... very good lease deals are available on Pilots!!

regards,
kyfdx
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brianinsf · February 2006

Thanks so much for the quick reply. I really appreciate it.

We've got a $1900 excess mileage bill on the CRV, so I'm trying to find a good way to get the dealer between us and Honda Finance. The economical thing would probably be to buy it and sell it ourselves, given the mileage charge, just don't need the hassle!

Thanks again.

kyfdx · February 2006

Ouch!! If you are that far over, you might ask your dealer for a trade-in number.. You may be able to trade.. and take a lower hit than $1900..

But, the key is.... the dealer has to take the car in trade, and payoff the bank... If you buyout is $14K, and they will give you $13K for it, then you are only out $1000, instead of $1900...

regards,
kyfdx

CarMan@Edmunds · February 2006

You're welcome, owlwho2. Let me know if you have any other questions.

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CarMan@Edmunds · February 2006

Hello thejerseydevil. The lease money factor that you were quoted for this truck is right in line with Honda Finance's current program for it, assuming that you are having your security deposit waived. I don't see why the capitalized cost that you were quoted is over $1,100 higher than the selling price that you were given. Even if you were to roll Honda Finance's $595 acquisition fee into it, it would only bring the cap cost to $29,797. Perhaps sales tax is being added in. I would ask the person that you are corresponding with for a break down of the cap cost if I was in your shoes.

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CarMan@Edmunds · February 2006

Hi skitele. The only way that you can get the lower .00094 money factor is to pay a security deposit...well I shouldn't say only way because Honda Finance might waive its security deposit requirement for loyal customers. So you did fine with the .00104 factor that you were given.

The other negotiable aspect of your deal is this truck's selling price. It appears as though the selling price that you were quoted is around $1,000 over invoice. That isn't terrible, but if you are in an area that has a decent level of competition I would not be surprised if you were able to do better than this by shopping around.

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CarMan@Edmunds · February 2006

Yes, glmw, Honda's January special lease program on the 2006 Pilot is scheduled to run through February 28th. I suspect that Honda will have a similar level of lease support available on this truck even after that program expires though.

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CarMan@Edmunds · February 2006

Welcome grsmom. 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.

A base 2006 Honda Pilot EX has a spread of $3,193 between its full MSRP and dealer invoice price. You are being given a discount of $1,962 on the truck that you are interested in. This means that you are probably being charged around $1,200 over dealer invoice. This is a reasonable price for this truck, but if you are in an area where there is a decent level of competition I would not be surprised if you were able to get it for at least $500 to $700 less. Make sure to stop by the following discussion to see how much other community members have paid for similar trucks recently: "Honda Pilot: Prices Paid & Buying Experience".

There's nothing wrong with trading your current truck in when you lease a new one, however it would be in your best interest to have the dealer that you are working with cut you a check for your trade rather than using the proceeds from it as a down payment for your lease. I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your Pilot would be exactly the same, regardless of whether you had put $6,000 down, or had made absolutely no down payment at all.

Another problem that I have with this deal is the money factor that you were quoted. Honda Finance's current buy rate lease money factor for a 36 month lease of a 2006 Pilot 4WD is only .00094 for consumers who qualify for Honda Finance's "Super Preferred" credit tier and pay a security deposit. The factor that you were quoted is higher than this. this means that either your credit is not in good shape or the dealer that you are working with is marking up your vehicle's money factor to add additional back-end profit to your deal. Make sure to insist that they use the buy rate money factor to calculate your truck's lease payment.

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grsmom · February 2006

Thanks Car man for your response. I had a typo in the money factor. It's actually .00104. I guess the problem with no putting the trade toward the lease would be that it would drive our monthly payment from $259 to probably something like $400 a month, which would be very hard to afford now. What does being in the "Super Preferred" credit tier do to your monthly payment. We have an excellent credit history so I believe we could get it.

jpsnj · February 2006

Greetings:

A few people have referenced the current lease offer for the 2006 Honda Pilot LX 4WD that appears on Honda's website. It lasts through February 28, 2006. I'm curious as to what people think of it. A summary of the offer is set forth below.

MSRP: $28,745.00 (includes destination charge)
Invoice: $25,922.00 (from Edmunds.com)
Actual Net Capitalized Cost: $26,529.71
Total Due at Signing: $1,999.00
Consists of
Cap Cost Reduction: $805.00
First Month's Pmt: $299.00
Acquisition Fee: $595.00 (Going with standard Honda #)
Security Deposit: $300.00 (Plug number)
Monthly Payment: $299.00
Annual Mileage: 12K
Purchase Option: $17,247.00 (60% of MSRP)

When I ran the numbers, it seemed like it all worked with a money factor of .00094. It seems like a pretty good deal in that you are getting a very popular car for a little above invoice price and a nominal cap cost reduction payment. I would appreciate any thoughts on this offer. Also, any insight on what are reasonable amounts for title fees, registration fees, and documentation fees would be appreciated. Thanks very much in advance. This site is very helpful.

Best Regards,
JPSNJ

skitele · February 2006

Carman,

Thank you for the info. I have not owned a Honda previously so it seems unlikely that I will find a security deposit waiver and the .00094 MF. According to the dealer and Edmunds.com the invoice price with dealer handling on an 06 EX-L is $30280. There does seem to be some stiff competition between the two local Honda dealers and I have had some luck playing them against each other. Are folks having any luck purchasing the 06 Pilot for $1000 less than invoice?

Skitele

lemmer · February 2006

But I know it is too much. The salesman (from whom I have purchased previously) said this is such a great deal that I should not share it with anyone. But, I am willing to tell you guys.

2006 Pilot EX-L
MSRP $32,395
Cap Cost $31,494
LEV% 54%
Lease factor 0.00059
Miles 12K per year
36 months
$850 due at signing (first payment $435, $16.5 registration, the rest cap cost reduction)

$435 a month plus taxes

golic · February 2006

Has any one leased a car and used a third party vendor to write the lease?

If so can you recommend or warn against a company?

Thanks,

Smile-

eyespy · February 2006

Based upon my visit yesterday to a dealer in New Jersey, I think you can do better on that deal. On the first pass, the dealer offered me a price on an EX-L AWD with Entertainment System of $30,968 - and, yes that number is $200 under invoice.

I don't quite understand it because I'm not aware of any marketing dollars for these dealers. Does anyone else out there know about any dealer incentives?

If you can get the price down with that money factor, then you'd have a really great deal.

hartt · February 2006

Hi CarMan.

I am looking for the MF and Residual for this vehicle on a 3 year/ 45K lease. I have looked through the previous posts but have not been able to find this information. Can you please provide me with this information? As always, thank you!

lemmer · February 2006

I think it is .00094 and 54%

CarMan@Edmunds · February 2006

You're welcome grsmom. If you have the money to put down on the lease, there's not much of a difference between using it to supplement or make some of your monthly lease payments and using it as a down payment on your lease. Many consumers are just psyched out by a large monthly payment. Consumers who qualify for Honda Finance's "Super Preferred" credit tier qualify for its best lease money factors. If your credit is not in good shape, you will not qualify for the lowest factors. If your credit is in good shape like you say, you shouldn't have trouble qualifying.

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CarMan@Edmunds · February 2006

Your calculation are right on the money, JPSNJ. Honda Finance's current buy rate lease money factor for 2006 Honda Pilot 4WD models is .00094 for consumers who qualify for its top credit tier and pay a security deposit. If you are in an area that has a decent level of competition, you actually may be able to do slightly better than this advertised lease by negotiating a selling price of around $500 over invoice or so. Also, it would be in your best interest not to make any sort of capitalized cost reduction when leasing. I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your Pilot would be exactly the same, regardless of whether you had put $1,000 down, or had made absolutely no down payment at all.

Car_man
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CarMan@Edmunds · February 2006

No problem, skitele. I suspect that you will be able to get the Pilot that you are interested in for less than $1,000 over dealer invoice. For specific feedback on how much other community members have paid for similar vehicles lately, make sure to stop by the following discussion: "Honda Pilot: Prices Paid & Buying Experience".

Car_man
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CarMan@Edmunds · February 2006

Any offer under dealer invoice is very aggressive, eyespy, because Honda is definitely not providing any sort of dealer cash on the 2006 Pilot right now.

Car_man
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brianinsf · February 2006

Hello--do you happen to know the MF on the EX-L 2WDs?

Also, not a lease question, but I've noticed at the dealers I've visited that the AWD models received a four-star rollover rating, but the 2WDs were 'not tested'. Is there a reason why the AWDs would perform better here?

Thanks

CarMan@Edmunds · February 2006

Hi hartt. If you were to lease a 2006 Honda Pilot EX-L 4WD with the rear entertainment system through Honda Finance right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00094 and 55%, respectively.

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CarMan@Edmunds · February 2006

I sure do, brianinsf. If you were to lease an '06 Pilot EX-L 2WD without nav. or DVD through Honda Finance right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00049 and 52%, respectively.

That's a good question about the rollover ratings for this truck. I'm not sure why there isn't any data for the 2WD model. The fact that it does not have AWD probably does not necessarily make it more likely to roll over by itself, but if you were on a slick road not having it would make an accident and I suppose a possible rollover more likely.

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brianinsf · February 2006

Thanks Car_Man, really appreciated. Any insight as to how/why the NAV would change the residual and especially the money factor?

CarMan@Edmunds · February 2006

You're very welcome, brianinsf. Navigation and the entertainment system do not have any impact upon the Pilot's money factors, but they do have an impact upon its residual values. Generally speaking, vehicles equipped with these options ten to have residual values that are a point or two lower than models without them because they do not hold their value well. As far as this truck's special money factors go, Honda has two sets a lower one for 2WD models and a higher one for 4WD models.

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cfilkins · February 2006

A local dealer to me in western NY is advertising $249/month 36mo/12k lease with $2k due for the 4WD LX. I don't know any of the further details, but that's a healthy bit less than yours (unless you've got tax already calculated into yours).

Chris

papacrazy · February 2006

Hi
I recently applied for a 2006 Honda Pilot EX lease 3yr 12k/yr $1999 down and was approved for the Honda Finance's "Super Preferred" credit tier. I am trading in my current 2002 Jeep Liberty limited lease (current payoff $11,090) and they are giving me $9500-$9800, I will find out for sure this weekend. The dealer is quoting me $306.21/month for the lease if I put down $1999 plus TT&L + first month's payment =$3500. I then have to come up with the extra $1300 or so to make up what I still owe on the Jeep. So roughly $4800 down total, because I don't want them to roll those extra payments into the lease payments. Is this a good deal??

papacrazy · February 2006

Hi
I recently applied for a 2006 Honda Pilot EX lease 3yr 12k/yr $1999 down and was approved for the Honda Finance's "Super Preferred" credit tier. I am trading in my current 2002 Jeep Liberty limited lease (current payoff $11,090) and they are giving me $9500-$9800, I will find out for sure this weekend. The dealer is quoting me $306.21/month for the lease if I put down $1999 plus TT&L + first month's payment =$3500. I then have to come up with the extra $1300 or so to make up what I still owe on the Jeep. So roughly $4800 down total, because I don't want them to roll those extra payments into the lease payments. Is this a good deal??

papacrazy · February 2006

Help...I sign this deal Saturday!

cfilkins · February 2006

While I'm no expert, that sounds a bit painful to me. How much longer is left on your Jeep lease? Why are you looking to get rid of it before the end of the lease?

If you decide you really want to cough up the $1300 extra to get out of the Liberty, get the dealer to outline all the costs up front for you. I've read (in this forum) of people getting EX's for about that payment with only $1k down (plus tax, etc). If you could bring those numbers back, I'm sure that you'll get some great feedback from others here.

Chris

papacrazy · February 2006

I'm already over my Jeep lease mileage by 8000 times .15cents a mile is already $1200. if I keep it until May (end of lease) it'll have another 3k-4k miles on it, which will add $500 or $600 to the already $1200 = $1700-$1800. Which is already more than I will be paying if I give it to Honda. Not to mention there's a little dent on the drivers door that Chrysler will probably charge $600-$800 to get fixed, not to mention I never changed the tires since new, there are nearly bald. So paying $1300 and getting rid of it sounds better to me than waiting out the lease. Make sense? I just want to keep the Pilot lease payments under or at $309.

ljandsal · February 2006

Car_man,

Am I correct to assume for 2006 Honda Pilot EX-L AWD with DVD for 36 months through Honda Finance with 12,000 miles per year a buy rate lease money factor of .00094 and a residual value of 57%?

Does adding the towing package ($876 parts, $250 labor) change the residual at all?

bigedfrombk · February 2006

Hi Carman or others,

With an MSRP of $33595 incl. $550 destination
Selling price $29,280 incl destination
I have excellent credit and will qualify for honda's tier one lease rate which I believe is MF-.00094, Residual is 57%. i prefer not to put any money down.

please help figure out what the monthly payment will be with an 8.25% ny tax rate.

I'm trying to determine should I buy or lease. I need to make a decision by end of February.

Thanks for your help

ttg911 · February 2006

Hey bigredfrombk,

I leased an 06 EX-L w/Navi at the beginning of the month and found this msg board so helpful and thus I will try and give something back.

The 'best' calculator I found was at: http://www.leaseguide.com/calc.htm

It lets you populate the variables and it outputs the monthly payment (as long as there are no hidden costs the dealer is including).

Given your situation (and I assumed you wanted to lease the car for 36 months) the payment would be $353.91 (326.94 payment plus $26.97 tax). Anything a dealer quotes you above that payment means they are throwing in additional costs somewhere - plain and simple.

Hope that helps and take care.

TG :shades:

soylentgreen · February 2006

Hey ttg911,

did you use this calculator when you landed your Pilot? How close were your figures from the calculator compared to the actual numbers you got from the dealer?

I'm currently shopping for a Murano and the numbers they got were $75 higher than what this calculator came up with. They said something about VIT tax and I factored that in. Still didn't get the close to their numbers.

ttg911 · February 2006

Hey soylentgreen,

The calc is dead on - assuming there are not 'extras' they are hiding. I used the calc to work my deal (yes, I just leased an 06 EX-L AWD w/Navi - put 2,500 down and pay $376 (inclding 5% Mass tax) per month. I know that at least $1k was used as a cap-cost reduction, so the numbers work (assuming a 52% redidual on a 36-month lease and a .00094 mf).

If you can't get the numbers to work, my guess is that they are telling you that they are applying x amount of $$ to a cap-cost reduction and the are not. Flush them out as thats where they usually try the smoke and mirrors show. Ask for a $$ breakdown of how your money down is being allocated. You will see the truth. Best of luck.

TG :shades:

golic · February 2006

Hey if you don't mind me asking, what did you pay for the 06-ex-l. I am looking at the same vehicle but can't decide if i want the Navi or not.

CarMan@Edmunds · February 2006

Hi papacrazy. You never mentioned the selling price or MSRP of the truck 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 truck'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 this lease if you let me know what these numbers are.

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CarMan@Edmunds · February 2006

Hi ljandsal. Your assumption about this truck's lease program is absolutely correct. I believe that Honda Finance allows the residualization of most official Honda parts. It publishes a list of items that can be residualized and the maximum allowable cost for them, but I am not sure if the towing package is on that list. Your dealer should be able to answer that question for you.

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CarMan@Edmunds · February 2006

Hi bigedfrombk. According to my calculations, if you were to lease a 2006 Honda Pilot EX-L 4WD without navigation with an MSRP of $33,595 and a selling price of $29,280 through Honda Finance right now for 36 months with 12,000 miles per year, your zero down, pre-tax monthly payment should be around $327.

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ttg911 · February 2006

Hey golic,

Selling price for the 06 EX-L 4WD w/Navi was: $30,984 (including destination and rear mud flaps). I also looked at not getting the Navi, but boy am I glad I did - WELL WORTH IT. It's a sweet setup and the system is made by Alpine (which is know for their top-notch navi's). Best of luck! :shades:

golic · February 2006

Can I bend your ear? I am looking at the 2006 Honda Pilot EX-L AWD. I keep seeing that Honda's money factor is .00094 which IIRC if you multiply that by 2400 it gives you an approximate interest rate. Which if I do correctly it comes to 2.256%

Is this a "special money factor" that is going to end soon? Just wondering should I buy the car now, or wait until after April 15th when I have more time to do this.

I have been using your "how to calculate a lease payment" model to run my scenarios. I keep seeing people post they bought this car for 29K and I have been using 31K so hopefully I can get that price if I shop on monday/tuesday for an end of monther.

thanks for you insight, I appreciate you efforts. *nodnod*

golic

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