I've been getting so caught up with the Altima that I wasn't sure what to do when I spotted this offer in the paper today.
Lease a 2005 Honda Accord LX Sedan for $0 down, $0 security deposit, $219 per month + Tax. Floor Mats included (all the other features seem to be the typical LX stuff such as AC, Power Windows, etc). 3 to choose from.
So is this a "hurry up and lease before we sell these 3 cars!" deal or is it standard?
Go to carsdirect and price it out - I use that as a guideline for what the going rate (with a lot of haggle) will be. They are showing $1000 under invoice for 2.5 Z4s - which works out to $4k off of MSRP. Of course, NEVER use MSRP in any pricing discussion since it does not apply to smart shoppers like yourself :-)
Depending where you are you might want to talk to Deane "Dr Bimmer" in Augusta. He makes great BMW deals and his finance department does not normally jack up the rate over the buy rate. He found the 330i I used to have on the boat to another dealer (unsold) and did the same for my boss on his 540iA. So it was like ordering a car without all the wait. The salesman can't know what the promos will be once your car comes in, but it does not have to come as far - only from SC.
Sort of a standard deal. If you check the Honda web page you will see the standard deal (I pasted the text below). The standard deal is for $219 a month but you have a $1,499 cap cost reduction. If you run the numbers putting nothing down will raise the monthly payment.
Also Honda has too many Accords and Civis and just started doing up to $600 in dealer cash to try to help move them. The standard deal calls for the dealer to make just over $600 with the lease. So "in theory" since they now have this new money you could negotiate the purchase price down $600 and they would still make the same - and your payment would drop.
If the money was the same, I would rather have the Accord. ABS and side airbags standard - DSC is not available on the 4 banger Accords though. The Altima MF is about 1/2 the Accord - but the Accord is still under 1% (.91 or something) so you would want to avoid paying any of your money into the lease.
Keep in mind the special can be adjusted - the same MF and residual you just put down less or more and the payments change. For an extra 0.0001 on the MF Honda will waive the security deposit. You can also roll the acq fee into the lease - and with < 1% money I don't know why you would not. Should work the same with the Altima - but with a .5% or so money.
Dennis
Terms and Conditions
2005 Accord LX Special Featured Lease
$199.00 per month for 36 months $1,499.00 capitalized cost reduction. $2,493.00 total due at lease signing (includes first month's payment, security deposit, capitalized cost reduction and AHFC upfront acquisition fee; total net capitalized cost and base monthly payment does not include tax, license, registration, options and the like). Model CM5645EW (2005 Accord LX Sedan with Automatic Transmission) Special lease rates available on all new 2005 Accord models. Subject to limited availability. The specific featured lease listed is not available to New York residents. New York residents should contact their dealer for New York featured lease. Terms and conditions vary for New York Residents. In addition, AHFC limits leasing terms to 39 months or less to residents and dealers in the state of Rhode Island.
Offer valid through 5/2/2005 for new and unregistered Accord vehicles only and only on approved credit by HFS (Honda Financial Services) through participating dealers. HFS' standard credit criteria apply. FEATURED SPECIAL LEASE: Closed-end lease for 2005 Accord LX Sedan with Automatic Transmission (Model CM5645EW). MSRP $21,090.00 (includes destination). Actual net capitalized cost $18,148.68. Dealer participation may affect actual payment. Taxes, license, title, registration, documentation fees, options and insurance extra. Total monthly payments $7,164.00. Option to purchase at lease end $11,388.60. Lessee responsible for maintenance, excessive wear/tear and 15¢/mile over 12,000 miles/year. SEE DEALER FOR DETAILS. The specific featured lease listed is not available to New York residents. NY residents should contact their dealer for NY featured lease. Terms and conditions vary for NY Residents. In addition, HFS limits leasing terms to 39 months or less to residents and dealers in the state of Rhode Island.
Just got a phone call from the Nissan dealer. He says that he can get me the Altima for $0 down at $235 a month (about $218 w/o taxes).
Mentioned that I was going to check out a Honda Accord for the same price. He didn't sound too happy but I told him I would get back to him if the deal didn't pan out.
Only thing to think about is that the Nissan deal is for 24 months and the Honda deal is 36 months.
So if they turn out to be the same price, which one would you guys choose?
The Accord is a better car, and all LX Accords are the same. Just choose your color and drive it home.
The Altima does not even include ABS or side airbags - they are a $700 extra cost option. The "special" deal from Nissan is on the 2.5s with splash guards, auto, and mats. What do you bet the dealer will not have any/many of these - and if they do it/they will not be in the color you want? They CAN get you into a more expensve one with more options for the same MF and residual, but you will then pay more. Now if you can find this exact car in the color you want, then you get the exact special deal. Of course, no ABS or side air bags.
The only advantage I can see is the Altima deal is for only 24 months. If you think you will be wanting something better or need to get out of the car for some reason that is an advantage. The Accord will require a longer commitment, but it is a nice car that you can be proud/happy driving for 3 years for cheap.
It is your money, but either one is getting the car just over invoice for a "interest" rate of 0.5% or 0.9% so deal wise you really can't go wrong with either. Both deals have the dealer making money, so in theory there is room to talk them down a little on cap cost to make it even sweeter - but getting the special as they advertised it is still OK.
Thanks in advance for your reply. 1st time on the site...great info. My concern is that I am trying to get out of my Galant lease 8 months early and get into another brand if possible. Quickly, I am almost at my milage limit. This is my 4th Mitsu lease. I have seen a TV ad for a Cadillac CTS for 35months,$299.monthly with under $900.down. What am I missing? Sounds too good. Also, please advise on leasing specials,incentives and rebates for leasing. I am trying to stay in the low $300. range. Possibilities are the (basic)CTS, Acura TSX (4-cyl),BMW 325I (6 cyl) and if I must due to early lease term, the Galant GTS(V-6). Any suggestions as to what to do with my Galant and how to build it into the new lease would also be a huge help. Thanks again
I have worked through a couple of lease vs. buy scenarios where it seems the leasing was actually cheaper. The scenario goes like this: lease with $0 down, 3 yrs, 12K miles then buy the car (cash) after 3 yrs for the residual vs putting $10K down and taking a 4 yr loan.
Depending on loan interest rate vs money factor and residual, in a couple of scenarios, the lease-buyout approach was actually a little cheaper in terms of total cash outlay (I counted interest on the $10K as a credit on the lease side and loss of interest as a debit on the purchase side.)
Could this be right or did I miss something? I've always read that leasing is almost always more expensive the buying.
Im car shopping for my mom today and wondering if there are any good deals for leases right now. She doesnt need/want much and doesnt put a lot of miles on. Something with four doors, reliable, and a low monthy payment.
Yes, this is something you can look at and should - even if you are getting a car you want to keep long term. If you run the numbers SOME times for a lease then buy there is no HUGE difference VS an outright purchase.
Things to watch for - some captive lease specials get the price low by having an inflated release value. So having to buy the car at above market at the end of the lease could mess this up. Of course, you sometimes can negotiate the buyout price down at that time. The truth is they have the promo deals because they need to move cars, when all these come back 2-3 years from now they will REALLY need to move cars, so may offer you a discount to keep yours. You also can't know where interest rates will be at the end of the lease. If the rates shoot up then your calculations will be wrong.
Why do it? Cheaper payments now with the right deal, get to finance it (in effect) for a longer term. Get to take advantage of nearly free money on some deals (the Altima lease is < 0.5% the Accord < 1%). Get to try the car while it is under warranty with "no obligation". You don't like it or it has been a lot of trouble or uses too much gas then just turn it in at the end of the lease. If you can negotiate a discount at lease end to purchase a car then you save even more - and/or the lease bank may offer you a very attractive rate to keep the car.
Why not? Can be a lot harder and more expensive to get out of a lease if you need/want out of the car early. Of course with long term loan and no down payment you would likely be "upside down" if you did the finance deal. If the lease deal is not too good, the lease then buy could be a lot more money.
Like you said, just look at the numbers - the future loan rate is not certain, but should give you a good idea about how it will work out.
A lot of folks that don't understand are critical of leases - but they have a car they own that has to be traded in. They get ripped on the trade, which can more than make up for a difference with even a so-so lease. With a lease, it is sweet to be able to turn in a car and go shopping for a new one without the hassle of a trade in.
Nissan has an Altima deal on the 2.5s for $1,500 down and $199 a month. You can pay less down, and more each month.
Honda has a nice Accord LX deal $1500 down gets you $199 a month + tax. You can put down less, but the payments go up. They also have a Civic "value pack" lease with $1000 down and $159 per month. Same deal, you can put less down and pay more per month.
With both of these deals, you could negotiate the price down a little more and pay a little less.
I am interested in trading in my 2000 A4 2.8 Quattro wagon with 96,200 miles. I am estimating a trade-in value of $12,063 and my pay-off is $9,600. I would like to apply the $2,463 as my down on the lease of a 2005 A4 1.8T wagon. I am estimating a purchase price of $37,780. My credit is good. My questions are:
1. Do you know of any current lease deals? 2. What residual should I be looking for? 3. What money factor?
Please provide me with a sample payment for a 36 month 12,000 mile lease.
Car_man, I just returned from a Honda dealer after negotiating a lease on a 2005 Accord Coupe EX-L 4 Cyl., Auto Trans with Navigation. The residual and money factors you provided were right on the money. Thanks! However, this dealership calculated the monthly depreciation cost as (MSRP - Residual)/36 months. I argued that it should be (Net Cap. Cost - Residual)/36 months. Since the MSRP is $27,215 and the Negotiated Cap Cost came to $25,800 (taxes and fees included with negotiated price), I feel like I am being charged too much. Do you agree? Or does Honda have the flexibility to alter how they calculate depreciation charges? Or maybe I'm wrong. Thanks in advance for your advice. md_outback
I am no "expert" - not like carman, who must work in the industry. I am just a cheap-skate who loves to get a good deal. In the past I have leased a BMW 330i, a C5 'vette convertible, a Honda S2000, and a BMW M5. All were good lease deals after getting a good deal on the purchase price.
I don't know what my next lease will be, but I am pretty much sold on leasing. I would probably lease a car for my wife, but she tends to be really high mileage always on the go. If I can get her to limit her miles, then something new for her may be the next lease. If gas keeps going up, we my all end up in hybrids or Echoes or something :-)
I really hate seeing folks get bad deals - but in a way I benefit from it. If the prior 10 sales at a dealship were bad deals for the customer, then maybe they CAN sell me the car I want and just make a couple of hundred bucks on the deal. It is suprising how many smart folks can be so "dumb" when it is time to get a new car. Of course the dealership folks have training to get us into dumb mode if they can. I guess these online forums are training to make folks smarter shoppers?
Edmunds incentive page is a good source for incentives, best I have found. The trouble is carman and others are always telling us there are more incentive deals that even Edmunds does not list. Getting the real buy rate money factor here from carman is another big plus. Then you just need a lease calulator of your own and you are ready to go!
I wish the Edmunds forum design was better though.....
The only difference I have heard of when they don't count some options toward the residual.
Also plug your numbers in at www.leasecompare.com and see what kind of 3rd party lease they will do on the same car. Looks like 0.00232 and 49% on a 36/36k lease. If the dealers can't provide better numbers, you can do your lease with LC at your negotiated price - or find a "better" Honda dealer?
Another thing you can do. Go to the Honda web page and click on the specials and print out the details on the Accord LX deal ($199 a month with $1,500 cap cost reduction). Plus the MSRP, residual, and cap cost into your lease calculator along with the 0.00038 MF and you will "solve" it to the $199 price. If AHFC were doing the "bad math" like the dealer you visited the numbers would not work out.
I'm trying to get a good deal on a T&C lease. I've been given the following numbers, does this look like a good lease deal?
Town & Country Touring MSRP- $30240 Selling Price- $27,800 Acquisition Fee- $700 Cap Reduction- $4400 ($900 down payment & $3500 in rebates) 39 month lease 12k miles per year Money Factor- .0028 Residual- $15724 Monthly Payments- $350
Is this is a fair, good, bad deal? Any help would be appreciated.
Going to the dealership tomorrow, so need info ASAP!
I am looking for the 36 month, 12k miles/yr, money factor, residual, and lease $ incentives for the following cars: ***2005 Cobalt LT ***2005 Malibu Maxx LS and LT.
Additionally, what is the GMAC aquisition fee?
Finally, is the additional $1000 March Madness cash on some cars applicable to leases, or is it good towards purchase only?
Please give me the following information for both the Accord EX-L V6 (without navigation) and Accord Hybrid (without navigation) models, based on a 3-year/12K lease:
- Acquisition Fee (I believe it is $515?) - Money Factor - Residual - Any current dealer cash or other incentives
Also, isn't it true that Honda will waive the security deposit since I am a current Honda lease customer, without raising the MF?
I saw your previous post #17880 regarding '05 Subaru Forester X for 36 months/12 K miles at .00100 and 48%.
Here are my questions.
1. What is Subaru's current Lease bank fee? 2. What are the residual and base money factor for '05 Forester XS and XS LL Bean editions for 36 months, 12K miles, both with and without security deposit. 3. Do these rates allow you to use the $1750 Rebate currently being offered by Subaru? 4. Are there any dealer incentives, other than the $1750 Customer rebate that i should be aware of prior to negotiating the purchase price? 5. Subaru seems to put lots of accessories on their cars, can these items be residualized into the lease with Subaru's captive finance company?
Thanks again. You are quite the asset for us car buyers.
looking to get money factor and residual info for a 2005 bmw 330i with ZHP/auto/leather. Term would be 36 months/15k per year. I know of the 4k incentive money this month as well. It should be available for this car correct? Thank you.
The dealer incentive is supposed to be $4,200 - not $4,000 and should be available on any 330i.
Carsdirect.com shows this configuration for $1,700 under invoice, but that still leaves a lot (too much?) profit for the dealer. I had a 2001 330i and loved it - very nice car. Mine was sport/premium/xenon - (be sure to get the xenons) - and and I wish I had gotten the NAV system.
Test drove CTS with sport suspension. Deffinately a vehicle to consider fine handling, good back seat room, comfortable seats large trunk. The negative is the cheap hard plastic of the interior, but it isn't tacky or tarted up with lots of "wood".
I've been leasing for so many years. That is where the deals are so the manufacturers don't appear to be heavily discounting their product. With the majority of my leases when I calculate paying for the car in 5 years and keeping it for 10 years, assuming some repairs required when out of warranty, the lease is actualy the same or less. In addition, it allows you a broader range of vehicles because you need to concern yourself less with reliability since you will always have a car under warranty. Example, today I saw the new redesigned Jetta leasing for about $200 per month in a local NYC ad. Given VW's reliability I wouldn't buy one, but at that price I sure would lease one. Keep a car for 10 years and you could easily spend about $200 a month average for repairs when it is out of warranty.
Dennis, Thanks for your reply. My story ultimately has a happy ending. The lease numbers originally given to me were generated by the sales manager based upon the data he "plugged" into the lease calculator (I think he was overwriting a couple of data fields that were meant to be calculated automatically). I guess he got to thinking about my argument and the fact that I walked away, so he turned the matter over to his finance manager. Bottom line: I got a call back from the finance person and he agreed with my math and we now have our Accord EX w/Nav. While signing the final lease paperwork the finance manager muttered 'Hmm, maybe this explains why every time he completes a lease deal, the customer says the actual monthly charge is better than that calculated by the sales manager.' Thanks for your service, it truly helps to be educated before going to the dealer. md_outback
I have another question. It seems that whenever I see the MSRP listed for a vehicle, it includes the acquisition fee (although carsdirect.com shows it separately). What about the invoice price? Does that include the acquisition fee? When these lease payments are listed, it's important to know if the payment includes the fee as part of the payment, or if that is assuming that the customer will pay that up front.
I just went to the Honda dealership to return my leased car for another. I currently have a 2002 Civic EX. I was looking at the 2005 Accord LX. My old lease was 36 months at 15,000 miles a year. I drive a distance from work so I was over by about 23,000 miles. I cannot afford to buy a car and I dont' want to by my current Civic. The price they quoted me was $310 a month for 36 months at 15,000 miles a year. I would be putting $2,600 down. Does this seem right. It seems a little high. Can I do better?
You're in the same shoes as me. I've been posting for the last two weeks about getting either an Accord LX lease or Altima 2.5s. You can do an advance search on my name to see how people have replied to my postings. Dennis and CarMan have been especially helpful.
I'm going up today to take a look at an Accord LX for $0 down, $0 Safety Deposit, and $218 a month for 36 months. I'll let you know how the deal pans out.
I noticed that you're looking for 15,000 miles rather than the 12,000 miles per year. I'm not sure how they factor the difference there but it appears you will be paying WAY TOO MUCH at your current offer.
If folks financed their cars and kept them until they were paid off and them kept driving them, I think (given most modern car's reliability) they would come out ahead. Of course, they would not get a new car but every 10 years or so.
The thing is, most folks do not do this. They are always trading, upgrading, and changing their minds. With long term financing they get upside down in the loans and have to roll that into the new loan. Even is they do not, because of the hassle they end up trading in their cars and the dealer does not give them what they are worth.
Now some smart and patient folks can work good deals and sell their own "old" cars and work better deals - but most do not. The funny this is that these folks never think about leasing. In most cases they would be a whole lot better off and would be driving a new car every few years without the hassle of a trade in and with less money out of pocket. Dennis
You are thinking of the destination fee. Usually when you see an ad for MSRP it does include this. If you check invoice prices here on Edmunds, it will (at first) show you the MSRP and dealer cost (invoice) without the destination fee. If you do a "price with options" here it will show you the numbers with it included.
The acquisition fee is the money paid to the lease bank to get them to give you the lease - and varies in amount from bank to bank.
Did you pay them for the 23,000 extra miles you put on your old car or were they rolling that fee into the new lease?
Does the $310 include taxes and title - or just the base fee for the car?
Honda is having a special right now on the Accord LX - $1,499 cap cost reduction from you then $199 per month for 36 months. This is for 12k per year, so the price for 15k would be higher - but not all the way to $310 higher - I don't think.
That is a huge question - most often by getting the most out of the customer they can.
A lease deal should be split into 2 or 3 different distinct areas.
Negotiate the price of the car. Start at dealer cost less any known rebates and incentives then work up from there - never start at MSRP since "$2,000 off" means a dealer still makes $6,000 on some cars.
Then you negotiate the worth of your trade in, if any. Use Edmunds and KBB trade in values as a guide. Since you are going to demand "wholesale" for the new car, you can't expect the dealer to pay "retail" for your trade. Keep in the dealer has their own (NADA, BlackBook, etc) guides which dealers print up which always favor dealers. Try to get closer to KBB of Edmunds numbers - or just sell your car yourself.
Then you do the lease. The idea (here) is to know the buy rate and residual for the car you want so you can calculate the lease payments for yourself. That way you will know for sure if they used your low negotiated price, applies all the rebates and incentives, gave you proper value for your trade (if any), and finally didn't jack up the finance rate to make extra money.
You can get your own 3rd part lease quotes instantly online at www.leasecompare.com and see how that stacks up with what the dealer offers. When the car makers need to move cars, they often have super lease deals (like the current Accord and Altima deals) that a 3rd party bank can't touch. But for a normal lease deal, it is always wise to see what someone else will do.
Does anyone have any information on what the residuals are on a Volvo S60R ? If you have the residual / residuals figures for 36 months, 39 months, 42 months and 48 months, please share some information. If you have recently leased a Volvo S60R (in 2005), please share information on what your monthly payment is, lease term and total cash down.
Also, does anyone have any idea of how lease payments change if you choose 10K miles, 12K miles or 15K miles per year? Assuming the same adjusted cap cost for a car and other factors stay the same-- how are monthly lease figures adjusted for the 'extra' miles on a lease? Thanks!
Well I pulled the trigger! Thanks to everyone at this board that responded to my questions about leasing an Accord vs. Altima.
I went into the dealer today to purchase an Accord LX for $0 down, $0 deposit, $219 per month.
UNFORTUNATELY, the dealer had one left, but it was only in one color (gold with tan interior). My wife and I really don't like that color so we asked how much it would be to get the color that we liked (which was the graphite).
The dealer went into a 5 minute explaination of the advertisement being a loss leader and that the cars have been on the lot for over 45 days which costs him money.
Bottom line. It was going to cost us $20 more a month for the graphite (which is around $700 after 3 years).
I made sure that it was truely $0 down and then said that my wife and I were going to get lunch. After lunch we went to a different Honda dealership and asked if they could match the $219 offer in the color that we wanted. The other dealership said that it was possible but we had to pay the first month which would be $219 plus tax.
So I decided to pit the dealerships against each other. I called the first place back and explained that they had the color we wanted at the original offer price. The first dealership agreed to beat the second dealership by paying our first month's rent but charging $224 a month afterwards.
So the math was this save $5 a month = $180 over 3 years. or have our first month paid =$224 plus tax.
So we went with the first dealership and got the color that we wanted.
The deal ended up as follows:
Gross Capitalized Cost $19020 ($18425+$595 acquisition fee) Residual Value = $11469.60 Depreciation = $7550.40 Rent charge = $527.04 Total of base payments= $8077.44 36 payments of $224.37 Monthly Sales tax = $17.39 Total payment $241.76
Basically, there is a lot of dealer cash to try to move these cars - but it does not apply if you lease the car from Volvo financial. Think about it: they can't sell them now - if they lease it to you then they will be getting it back in a few years and have to try to sell it again.
Your dealer can get you lease quotes from a 3rd parth lease bank. You can get your own at www.leasecompare.com to compare. If the LC numbers are better they can buy the car at your negotiated price and lease it to you.
I would also check out what Carman comes back with...I've seen varing residual rates @ LC.com. Generally his info has a bit more insight--LC is just another tool to compare I guess...
I spoke with the financial director of the Lexus dealership regarding the MF of .00275. She told me that .00275 is the best being offered by Lexus (LFS) on the 2006 GS. She then went on to say that they could do a better MF with another leasing company, but the residual (58%) would change. It sounds as though this dealership wants to make as much as possible on this deal. How would you proceed at this point?
I have been in negotiations with an Acura dealer in South Jersey, and have negotiated the following deal. I would appreciate any advice on how this deal looks. 48 month term at 12,000 miles per year,
Negotiated Selling Price: $25,300
Monthly Payment $337 (includes 9% lease tax for Pennsylvania)
Due at signing: 1st Months payment ($337) + Tags ($178) + Bank Fee ($595) = $1,100
I paid a total of $ 2000.00 down and kept my payments at my target range of $350.00. Love my new car...now did I do o.k. on the deal? I can handle the truth. Your advise on this site is invaluable for those of us new at leasing. Thank you!
Comments
Lease a 2005 Honda Accord LX Sedan for $0 down, $0 security deposit, $219 per month + Tax. Floor Mats included (all the other features seem to be the typical LX stuff such as AC, Power Windows, etc). 3 to choose from.
So is this a "hurry up and lease before we sell these 3 cars!" deal or is it standard?
Depending where you are you might want to talk to Deane "Dr Bimmer" in Augusta. He makes great BMW deals and his finance department does not normally jack up the rate over the buy rate. He found the 330i I used to have on the boat to another dealer (unsold) and did the same for my boss on his 540iA. So it was like ordering a car without all the wait. The salesman can't know what the promos will be once your car comes in, but it does not have to come as far - only from SC.
Dennis
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Also Honda has too many Accords and Civis and just started doing up to $600 in dealer cash to try to help move them. The standard deal calls for the dealer to make just over $600 with the lease. So "in theory" since they now have this new money you could negotiate the purchase price down $600 and they would still make the same - and your payment would drop.
If the money was the same, I would rather have the Accord. ABS and side airbags standard - DSC is not available on the 4 banger Accords though. The Altima MF is about 1/2 the Accord - but the Accord is still under 1% (.91 or something) so you would want to avoid paying any of your money into the lease.
Keep in mind the special can be adjusted - the same MF and residual you just put down less or more and the payments change. For an extra 0.0001 on the MF Honda will waive the security deposit. You can also roll the acq fee into the lease - and with < 1% money I don't know why you would not. Should work the same with the Altima - but with a .5% or so money.
Dennis
Terms and Conditions
2005 Accord LX Special Featured Lease
$199.00 per month for 36 months
$1,499.00 capitalized cost reduction.
$2,493.00 total due at lease signing (includes first month's payment, security deposit, capitalized cost reduction and AHFC upfront acquisition fee; total net capitalized cost and base monthly payment does not include tax, license, registration, options and the like).
Model CM5645EW (2005 Accord LX Sedan with Automatic Transmission)
Special lease rates available on all new 2005 Accord models. Subject to limited availability. The specific featured lease listed is not available to New York residents. New York residents should contact their dealer for New York featured lease. Terms and conditions vary for New York Residents. In addition, AHFC limits leasing terms to 39 months or less to residents and dealers in the state of Rhode Island.
Offer valid through 5/2/2005 for new and unregistered Accord vehicles only and only on approved credit by HFS (Honda Financial Services) through participating dealers. HFS' standard credit criteria apply. FEATURED SPECIAL LEASE: Closed-end lease for 2005 Accord LX Sedan with Automatic Transmission (Model CM5645EW). MSRP $21,090.00 (includes destination). Actual net capitalized cost $18,148.68. Dealer participation may affect actual payment. Taxes, license, title, registration, documentation fees, options and insurance extra. Total monthly payments $7,164.00. Option to purchase at lease end $11,388.60. Lessee responsible for maintenance, excessive wear/tear and 15¢/mile over 12,000 miles/year. SEE DEALER FOR DETAILS. The specific featured lease listed is not available to New York residents. NY residents should contact their dealer for NY featured lease. Terms and conditions vary for NY Residents. In addition, HFS limits leasing terms to 39 months or less to residents and dealers in the state of Rhode Island.
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Mentioned that I was going to check out a Honda Accord for the same price. He didn't sound too happy but I told him I would get back to him if the deal didn't pan out.
Only thing to think about is that the Nissan deal is for 24 months and the Honda deal is 36 months.
So if they turn out to be the same price, which one would you guys choose?
The Altima does not even include ABS or side airbags - they are a $700 extra cost option. The "special" deal from Nissan is on the 2.5s with splash guards, auto, and mats. What do you bet the dealer will not have any/many of these - and if they do it/they will not be in the color you want? They CAN get you into a more expensve one with more options for the same MF and residual, but you will then pay more. Now if you can find this exact car in the color you want, then you get the exact special deal. Of course, no ABS or side air bags.
The only advantage I can see is the Altima deal is for only 24 months. If you think you will be wanting something better or need to get out of the car for some reason that is an advantage. The Accord will require a longer commitment, but it is a nice car that you can be proud/happy driving for 3 years for cheap.
It is your money, but either one is getting the car just over invoice for a "interest" rate of 0.5% or 0.9% so deal wise you really can't go wrong with either. Both deals have the dealer making money, so in theory there is room to talk them down a little on cap cost to make it even sweeter - but getting the special as they advertised it is still OK.
Dennis
Thanks much.
I'll send you a sepparate e-mail with more info directly to your e-mail address.
Jas
My concern is that I am trying to get out of my Galant lease 8 months early and get into another brand if possible.
Quickly, I am almost at my milage limit. This is my 4th Mitsu lease. I have seen a TV ad for a Cadillac CTS for 35months,$299.monthly with under $900.down. What am I missing? Sounds too good.
Also, please advise on leasing specials,incentives and rebates for leasing. I am trying to stay in the low $300. range. Possibilities are the (basic)CTS, Acura TSX (4-cyl),BMW 325I (6 cyl) and if I must due to early lease term, the Galant GTS(V-6).
Any suggestions as to what to do with my Galant and how to build it into the new lease would also be a huge help.
Thanks again
Depending on loan interest rate vs money factor and residual, in a couple of scenarios, the lease-buyout approach was actually a little cheaper in terms of total cash outlay (I counted interest on the $10K as a credit on the lease side and loss of interest as a debit on the purchase side.)
Could this be right or did I miss something? I've always read that leasing is almost always more expensive the buying.
Yes, this is something you can look at and should - even if you are getting a car you want to keep long term. If you run the numbers SOME times for a lease then buy there is no HUGE difference VS an outright purchase.
Things to watch for - some captive lease specials get the price low by having an inflated release value. So having to buy the car at above market at the end of the lease could mess this up. Of course, you sometimes can negotiate the buyout price down at that time. The truth is they have the promo deals because they need to move cars, when all these come back 2-3 years from now they will REALLY need to move cars, so may offer you a discount to keep yours. You also can't know where interest rates will be at the end of the lease. If the rates shoot up then your calculations will be wrong.
Why do it? Cheaper payments now with the right deal, get to finance it (in effect) for a longer term. Get to take advantage of nearly free money on some deals (the Altima lease is < 0.5% the Accord < 1%). Get to try the car while it is under warranty with "no obligation". You don't like it or it has been a lot of trouble or uses too much gas then just turn it in at the end of the lease. If you can negotiate a discount at lease end to purchase a car then you save even more - and/or the lease bank may offer you a very attractive rate to keep the car.
Why not? Can be a lot harder and more expensive to get out of a lease if you need/want out of the car early. Of course with long term loan and no down payment you would likely be "upside down" if you did the finance deal. If the lease deal is not too good, the lease then buy could be a lot more money.
Like you said, just look at the numbers - the future loan rate is not certain, but should give you a good idea about how it will work out.
A lot of folks that don't understand are critical of leases - but they have a car they own that has to be traded in. They get ripped on the trade, which can more than make up for a difference with even a so-so lease. With a lease, it is sweet to be able to turn in a car and go shopping for a new one without the hassle of a trade in.
Dennis
Nissan has an Altima deal on the 2.5s for $1,500 down and $199 a month. You can pay less down, and more each month.
Honda has a nice Accord LX deal $1500 down gets you $199 a month + tax. You can put down less, but the payments go up. They also have a Civic "value pack" lease with $1000 down and $159 per month. Same deal, you can put less down and pay more per month.
With both of these deals, you could negotiate the price down a little more and pay a little less.
Dennis
y2k_c5
(at)
yahoo.com
Dennis
You have been so helpful with my process of choosing the Altima or Accord (haven't decided yet but this forum has really helped!)
What kind of car are you leasing? Its interesting to see what the experts do.
I am interested in trading in my 2000 A4 2.8 Quattro wagon with 96,200 miles. I am estimating a trade-in value of $12,063 and my pay-off is $9,600. I would like to apply the $2,463 as my down on the lease of a 2005 A4 1.8T wagon. I am estimating a purchase price of $37,780. My credit is good. My questions are:
1. Do you know of any current lease deals?
2. What residual should I be looking for?
3. What money factor?
Please provide me with a sample payment for a 36 month 12,000 mile lease.
md_outback
I don't know what my next lease will be, but I am pretty much sold on leasing. I would probably lease a car for my wife, but she tends to be really high mileage always on the go. If I can get her to limit her miles, then something new for her may be the next lease. If gas keeps going up, we my all end up in hybrids or Echoes or something :-)
I really hate seeing folks get bad deals - but in a way I benefit from it. If the prior 10 sales at a dealship were bad deals for the customer, then maybe they CAN sell me the car I want and just make a couple of hundred bucks on the deal. It is suprising how many smart folks can be so "dumb" when it is time to get a new car. Of course the dealership folks have training to get us into dumb mode if they can. I guess these online forums are training to make folks smarter shoppers?
Edmunds incentive page is a good source for incentives, best I have found. The trouble is carman and others are always telling us there are more incentive deals that even Edmunds does not list. Getting the real buy rate money factor here from carman is another big plus. Then you just need a lease calulator of your own and you are ready to go!
I wish the Edmunds forum design was better though.....
Dennis
http://www.leaseguide.com/lease08.htm
The only difference I have heard of when they don't count some options toward the residual.
Also plug your numbers in at www.leasecompare.com and see what kind of 3rd party lease they will do on the same car. Looks like 0.00232 and 49% on a 36/36k lease. If the dealers can't provide better numbers, you can do your lease with LC at your negotiated price - or find a "better" Honda dealer?
Another thing you can do. Go to the Honda web page and click on the specials and print out the details on the Accord LX deal ($199 a month with $1,500 cap cost reduction). Plus the MSRP, residual, and cap cost into your lease calculator along with the 0.00038 MF and you will "solve" it to the $199 price. If AHFC were doing the "bad math" like the dealer you visited the numbers would not work out.
Dennis
Town & Country Touring
MSRP- $30240
Selling Price- $27,800
Acquisition Fee- $700
Cap Reduction- $4400 ($900 down payment & $3500 in rebates)
39 month lease
12k miles per year
Money Factor- .0028
Residual- $15724
Monthly Payments- $350
Is this is a fair, good, bad deal? Any help would be appreciated.
Going to the dealership tomorrow, so need info ASAP!
I am looking for the 36 month, 12k miles/yr, money factor, residual, and lease $ incentives for the following cars:
***2005 Cobalt LT
***2005 Malibu Maxx LS and LT.
Additionally, what is the GMAC aquisition fee?
Finally, is the additional $1000 March Madness cash on some cars applicable to leases, or is it good towards purchase only?
Thanks - Damon
Please give me the following information for both the Accord EX-L V6 (without navigation) and Accord Hybrid (without navigation) models, based on a 3-year/12K lease:
- Acquisition Fee (I believe it is $515?)
- Money Factor
- Residual
- Any current dealer cash or other incentives
Also, isn't it true that Honda will waive the security deposit since I am a current Honda lease customer, without raising the MF?
Thanks a bunch!
Ernest
I saw your previous post #17880 regarding '05 Subaru Forester X for 36 months/12 K miles at .00100 and 48%.
Here are my questions.
1. What is Subaru's current Lease bank fee?
2. What are the residual and base money factor for '05 Forester XS and XS LL Bean editions for 36 months, 12K miles, both with and without security deposit.
3. Do these rates allow you to use the $1750 Rebate currently being offered by Subaru?
4. Are there any dealer incentives, other than the $1750 Customer rebate that i should be aware of prior to negotiating the purchase price?
5. Subaru seems to put lots of accessories on their cars, can these items be residualized into the lease with Subaru's captive finance company?
Thanks again. You are quite the asset for us car buyers.
Gregg
Thank you.
The dealer incentive is supposed to be $4,200 - not $4,000 and should be available on any 330i.
Carsdirect.com shows this configuration for $1,700 under invoice, but that still leaves a lot (too much?) profit for the dealer. I had a 2001 330i and loved it - very nice car. Mine was sport/premium/xenon - (be sure to get the xenons) - and and I wish I had gotten the NAV system.
Dennis
Example, today I saw the new redesigned Jetta leasing for about $200 per month in a local NYC ad. Given VW's reliability I wouldn't buy one, but at that price I sure would lease one. Keep a car for 10 years and you could easily spend about $200 a month average for repairs when it is out of warranty.
Thanks for your reply. My story ultimately has a happy ending. The lease numbers originally given to me were generated by the sales manager based upon the data he "plugged" into the lease calculator (I think he was overwriting a couple of data fields that were meant to be calculated automatically). I guess he got to thinking about my argument and the fact that I walked away, so he turned the matter over to his finance manager. Bottom line: I got a call back from the finance person and he agreed with my math and we now have our Accord EX w/Nav. While signing the final lease paperwork the finance manager muttered 'Hmm, maybe this explains why every time he completes a lease deal, the customer says the actual monthly charge is better than that calculated by the sales manager.' Thanks for your service, it truly helps to be educated before going to the dealer.
md_outback
I have another question. It seems that whenever I see the MSRP listed for a vehicle, it includes the acquisition fee (although carsdirect.com shows it separately). What about the invoice price? Does that include the acquisition fee? When these lease payments are listed, it's important to know if the payment includes the fee as part of the payment, or if that is assuming that the customer will pay that up front.
Thanks,
Ernest
The acquisition fee is a fee paid to the bank when you do a lease... It has nothing to do with the MSRP or invoice price.
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and share!
Edmunds Moderator
You're in the same shoes as me. I've been posting for the last two weeks about getting either an Accord LX lease or Altima 2.5s. You can do an advance search on my name to see how people have replied to my postings. Dennis and CarMan have been especially helpful.
I'm going up today to take a look at an Accord LX for $0 down, $0 Safety Deposit, and $218 a month for 36 months. I'll let you know how the deal pans out.
I noticed that you're looking for 15,000 miles rather than the 12,000 miles per year. I'm not sure how they factor the difference there but it appears you will be paying WAY TOO MUCH at your current offer.
The thing is, most folks do not do this. They are always trading, upgrading, and changing their minds. With long term financing they get upside down in the loans and have to roll that into the new loan. Even is they do not, because of the hassle they end up trading in their cars and the dealer does not give them what they are worth.
Now some smart and patient folks can work good deals and sell their own "old" cars and work better deals - but most do not. The funny this is that these folks never think about leasing. In most cases they would be a whole lot better off and would be driving a new car every few years without the hassle of a trade in and with less money out of pocket.
Dennis
The acquisition fee is the money paid to the lease bank to get them to give you the lease - and varies in amount from bank to bank.
Dennis
Does the $310 include taxes and title - or just the base fee for the car?
Honda is having a special right now on the Accord LX - $1,499 cap cost reduction from you then $199 per month for 36 months. This is for 12k per year, so the price for 15k would be higher - but not all the way to $310 higher - I don't think.
Dennis
A lease deal should be split into 2 or 3 different distinct areas.
Negotiate the price of the car. Start at dealer cost less any known rebates and incentives then work up from there - never start at MSRP since "$2,000 off" means a dealer still makes $6,000 on some cars.
Then you negotiate the worth of your trade in, if any. Use Edmunds and KBB trade in values as a guide. Since you are going to demand "wholesale" for the new car, you can't expect the dealer to pay "retail" for your trade. Keep in the dealer has their own (NADA, BlackBook, etc) guides which dealers print up which always favor dealers. Try to get closer to KBB of Edmunds numbers - or just sell your car yourself.
Then you do the lease. The idea (here) is to know the buy rate and residual for the car you want so you can calculate the lease payments for yourself. That way you will know for sure if they used your low negotiated price, applies all the rebates and incentives, gave you proper value for your trade (if any), and finally didn't jack up the finance rate to make extra money.
You can get your own 3rd part lease quotes instantly online at www.leasecompare.com and see how that stacks up with what the dealer offers. When the car makers need to move cars, they often have super lease deals (like the current Accord and Altima deals) that a 3rd party bank can't touch. But for a normal lease deal, it is always wise to see what someone else will do.
Dennis
Looking at an 05 TL without navigation. Want to get 36mo/45k. Please let me know current MF and resid.
Thanks!
Also, does anyone have any idea of how lease payments change if you choose 10K miles, 12K miles or 15K miles per year? Assuming the same adjusted cap cost for a car and other factors stay the same-- how are monthly lease figures adjusted for the 'extra' miles on a lease? Thanks!
I went into the dealer today to purchase an Accord LX for $0 down, $0 deposit, $219 per month.
UNFORTUNATELY, the dealer had one left, but it was only in one color (gold with tan interior). My wife and I really don't like that color so we asked how much it would be to get the color that we liked (which was the graphite).
The dealer went into a 5 minute explaination of the advertisement being a loss leader and that the cars have been on the lot for over 45 days which costs him money.
Bottom line. It was going to cost us $20 more a month for the graphite (which is around $700 after 3 years).
I made sure that it was truely $0 down and then said that my wife and I were going to get lunch. After lunch we went to a different Honda dealership and asked if they could match the $219 offer in the color that we wanted. The other dealership said that it was possible but we had to pay the first month which would be $219 plus tax.
So I decided to pit the dealerships against each other. I called the first place back and explained that they had the color we wanted at the original offer price. The first dealership agreed to beat the second dealership by paying our first month's rent but charging $224 a month afterwards.
So the math was this
save $5 a month = $180 over 3 years.
or have our first month paid =$224 plus tax.
So we went with the first dealership and got the color that we wanted.
The deal ended up as follows:
Gross Capitalized Cost $19020 ($18425+$595 acquisition fee)
Residual Value = $11469.60
Depreciation = $7550.40
Rent charge = $527.04
Total of base payments= $8077.44
36 payments of $224.37
Monthly Sales tax = $17.39
Total payment $241.76
1st month payment ($241.76), registration fees ($210), document fee ($45),and tire fee ($8.75) equaling $505.51 was waived.
Basically, there is a lot of dealer cash to try to move these cars - but it does not apply if you lease the car from Volvo financial. Think about it: they can't sell them now - if they lease it to you then they will be getting it back in a few years and have to try to sell it again.
Your dealer can get you lease quotes from a 3rd parth lease bank. You can get your own at www.leasecompare.com to compare. If the LC numbers are better they can buy the car at your negotiated price and lease it to you.
Dennis
48 month term at 12,000 miles per year,
Negotiated Selling Price: $25,300
Monthly Payment $337 (includes 9% lease tax for Pennsylvania)
Due at signing: 1st Months payment ($337) + Tags ($178) + Bank Fee ($595) = $1,100
Thanks!
MSRP: 34,135 Pilot EXL RES
Cap. Cost: 30,846.00 (30,251 + 595.00 acc. fee)
Cap. Cost Reduction: 1239.00
Residual: 20,431.00
36 month/12,000 mile lease
Payments: 354.00 (24.00 tax + 330.00 pymnt)
I paid a total of $ 2000.00 down and kept my payments at my target range of $350.00. Love my new car...now did I do o.k. on the deal? I can handle the truth. Your advise on this site is invaluable for those of us new at leasing. Thank you!
other than th 2550 cap reduction & taxes and 1st month were fees such as aquistion fee etc.