Last post on May 22, 2013 at 9:25 PM
You are in the Prices Paid - Buying & Leasing Experiences
What is this discussion about?
Honda Accord, Coupe, Sedan
#27608 of 29563 Re: Leased 13 Accord EX-L w/Navi [juanvaldez]
Dec 01, 2012 (9:21 am)
Hi all,and JuanValdez,
I have to ask and see if I can understand this.
Why would anyone lease an Accord (I understand EX-L I-4 w/NAV) for $440, it looks like a total ripp-off to me, and here is my reasoning.
I do not know all the details of the Acura leases, but saw the ILX 2013 for $229, TSX 2012 for $299 and the TL 2013 for $349. I would think for $440 you could get a better luxury honda lease, meaning the acura. Probably the advertised prices need a bump from a mileage perspective, however compared to $440 they look better.
Personally I do not lease, I actually bought a 2012 SE Accord about 3 months ago for 21.5K OTD (my post at the end of August) and that is due to my high mileage I put on the car. I put no money down, financed at %.9 and pay 366$ a month.
Still trying to reason for the $440 accord lease though, does not seem like a good deal to me. Can someone please try and explain how this is a good deal? Is it better than the acura deals?
Dec 01, 2012 (9:29 am)
Reading all of the posts, I wonder if one simple way to approach a dealer/dealers is to ask one question and that is "what is the monthly lease amount and residual for a (for example) a 36 month, 12k for a specific car with NO down payment except for the first months lease payment".
It seems that you can forget about money factor, MSRP, dealer invoice, etc. and most other things because what you are really comparing is your monthly lease costs and residual for a specific car with a certain lease period and mileage.
Appreciate anyones input.
#27610 of 29563 Re: Leased 13 Accord EX-L w/Navi [juliankrye]
Dec 01, 2012 (9:35 am)
The 2013 Accord isn't that great to lease yet since it is new and the money factor is still a bit high. The part I think you are missing is that those Acura leases probably require a fairly large down payment upfront, which is not what you want to do when leasing. It looks like the $440 Accord lease is with less than $1000 out of pocket upfront, which is pretty awesome. When companies advertise leases, they always look good until you read the fine print and see the required down payment and they almost always are for 10K miles per year.
#27611 of 29563 Re: '13 Accord EX-L Sedan w/o Navi 4 Cyl. [mikerichmondva]
Dec 01, 2012 (11:05 am)
Thanks for the info. Mike. I just test drove the same car on Hull St. last night. Good to have some info. to go on. What was the 1st name of your salesperson?
#27612 of 29563 2013 Honda Accord LX --- competitor's prices
Dec 01, 2012 (12:16 pm)
On November 12, I bought a 2013 Honda Accord LX automatic with splash (mud) guards, door edge trim and wheel lock from Avery Greene Honda. They claim to beat ANY competitor's written quote.
I saw a message (#27535) where David McDavid of Frisco had the same car for $19,599. That's more than $1,000 lower than the price I paid for just 8 days after I bought my car. Was anyone able to buy an LX at that advertised price? I would love to have that advertisement by David McDavid of Frisco since Avery Greene Honda claimed to beat ANY competitor's written quote. Thank you.
Doc processing charge: $80
Tax (8.375%): $1,734.04
CA Tire fees: $8.75
Smog abatement fee: $20
#27613 of 29563 Re: '13 Accord EX-L Sedan w/o Navi 4 Cyl. [dfinva]
Dec 01, 2012 (1:34 pm)
I went to Colonial and worked with Gordon. Granted it was the end of the month, but you should be able to get close to that. I just lucked out with the mudguards & wheel locks since they were already on the car when it was transfered.
#27614 of 29563 Re: Leasing [peter07]
Dec 01, 2012 (5:25 pm)
Peter, I believe you're interested in knowing the residual in case you want to purchase the car at lease end, but you will want to know the residual and money factor so that you can compute the capitalized cost of the car, which is the amount the leasing company will be paying the dealer (as well as any other other fees you want to put into the lease payment). Say you are noticing that others are paying $500 over invoice when purchasing. You see some ads for leases at $300 a month and you go to a dealership and negotiate down to $250. It's in your budget and you're proud of yourself for getting a better deal than advertised. Then you inquire about the money factor, put it into your calculator along with the residual and MSRP and calculate what the cap cost of the car is and the answer comes out to $1000 over invoice. You won't be too happy. Or say you agreed on a price of $250 and the day you come in to sign the papers, the money factor has dropped. Well, your lease payment should too but you'll never know because you don't know the money factor and don't expect your salesman to volunteer the info, he will just increase the cap cost on the paperwork and make some extra commission. That's why salespeople will always try to convince you that you should only be interested in the lease amount. And, unless the salesperson quotes you a low money factor, I would ask to see the rate sheet provided by the leasing company.
The cap cost will eventually appear on your lease agreement so there is no reason he shouldn't tell you up front if you ask and that is the number you should be negotiating.
Since lease ads are so misleading with all the fine print, I do suggest telling the dealer to tell you what the 36 equal monthly payments would be if you put all fees (documentation, registration, taxes, etc) into the lease and paid nothing other than your first payment at time of delivery. That's the only way to compare apples to apples. Those zero due at signing ads should be outlawed. There all always fees that the dealer will charge.
#27615 of 29563 Re: Leasing [gee22]
Dec 01, 2012 (7:04 pm)
"Since lease ads are so misleading with all the fine print, I do suggest telling the dealer to tell you what the 36 equal monthly payments would be if you put all fees (documentation, registration, taxes, etc) into the lease and paid nothing other than your first payment at time of delivery. That's the only way to compare apples to apples. Those zero due at signing ads should be outlawed. There all always fees that the dealer will charge".
That is exactly what I am saying to do, namely, that everything is included in the lease amount/month and you essentially walk in to the dealer, ask the lease amount for the car you want over what time period with what mileage/year and do not pay anything more than the first month lease. The residual should be the same for the car but you can always check that out beforehand or know that by comparing it with other dealers you may have asked for a comparison bid.
I think the process is indeed simple and eliminates the need for worrying about the "cap cost", money factor, etc.
In my case, I contacted three dealers and ask the same of all three->monthly lease amount for a 36 month/12K/year deal and the residual at the end of three years which turned out to be exactly the same for all three.
That made my decision very easy. If I walked into a dealership after that agreement and anything else in terms of costs were brought up, I would simply walk away to the next highest bidder. The separation in lease costs of two of the three dealers was $15/month with the same residual for both.
#27616 of 29563 Re: Leasing [peter07]
Dec 01, 2012 (10:45 pm)
Sorry Peter, you are taking a very naive approach. Let's assume we are talking strictly cash deals, no trade-ins or dealer financing if a purchase.
Let's leave out taxes since those would be handled differently for a purchase vs a lease. If it's a purchase, then your out the door cost is known. That's equivalent to the cap cost. As long as each dealer is using the same leasing company (and I assume it's Honda Finance), then of course the residuals are the same. I believe for Dec, it would be 61% of the MSRP for an LX and 59% for an EX-L. The money factor is .00155. Neither the residual or the money factor are negotiable. So the only differences in your lease quotes are based on the cap cost. The one who is $15 cheaper would be selling the car to Honda Finance for about $500 less than the others. We see on this board that everyone is paying considerably under MSRP, some very close to and possibly under invoice. But how do you know if two of the dealers are using MSRP as the cap cost and the other is taking $500 off. Yes, he's $15 a month cheaper, but he's ripping you off on the cap cost. He's got at least an extra $1000 in profit based on the cap cost, and if you negotiated that down like you would try if it was a purchase, you'd save about $30 a month.
Just about everyone knows you can buy almost any car under MSRP so you don't come across too many people that do but take at some of the leases that people are trying to get out of at swapalease.com. It's obvious their cap cost was MSRP or higher but they weren't very sophisticated and didn't ask the right questions. I really hope you take my advice. I assure you that you will save a few bucks.
#27617 of 29563 2013 Accord EXL 4cyl non nav
Dec 02, 2012 (8:57 am)
Bought an Accord EXL 4 cyl no nav
25,919 base price including destination
179 dealer fee
300 doc, title, license, and registratio
28,320 including 7.35% tax