Last post on May 19, 2013 at 5:17 PM
You are in the Prices Paid - Buying & Leasing Experiences
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Honda Accord, Coupe, Sedan
#27612 of 29555 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 29555 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 29555 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 29555 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 29555 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 29555 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
#27618 of 29555 Re: Leasing [gee22]
Dec 02, 2012 (2:00 pm)
Well said on leasing....... Just because a Dealer Advertise's a good monthly rate on a lease car...... That price for the vehicle is closer to the Dealers M.S.R.P.... Not anywhere near dealers Invoice or below.. Not to mention the small print of paying thousands up front to get that low monthly lease.. My thoughts on leasing and price I dont but if i leased with exceptions of Bmw, Mercedes, and a few others . My lease price would be trying to get way Below Invoice price and trying to take most if not all of the dealers Hold-Back on said vehicle. Remember your renting that Car for a 2 or 3 yr period.
#27619 of 29555 2013 Accord EXL 4 cyl no Nav
Dec 02, 2012 (5:37 pm)
We purchased the vehicle Friday night after sending an email to local dealer late Thursday. Thanks to everyone on the forum for posting so much helpful info. I have been reading on and off the posts for several months. We narrowed our vehicle choice down after considering the Altima and a VW Passat TDI. This car is needed for a 50 mile per day commute, so decent MPG was important. We liked the new technology on the Accord, we noticed anyone tall in the the Altima backseat would be hitting their head on the top of the car, and we were hesitant about the reliability of VW, although we have heard that the diesel engines last a long time if maintained.
The quote we received was for invoice plus the typical $790 destination, $26,400, on the EXL in the color we wanted. I noticed in the fine print that there would be a $100 document fee. I called the internet salesman Friday morning. The car was a dealer trade. I told him we weren't interested in any dealer add on accessories. Ended up the car had the splash guards, trunk liner and the wheel locks. I ended up getting him to waive the $100 doc fee and a $33 notary fee, agreed to pay for the splash guards only of the add ons, as that was the one item we felt was really necessary for the rock and shell parking lot my husband parks in daily by the river. I had already done my research on the registration, title and license fees by looking it up online, so we agreed on the calculation, he faxed me a buyer's order and I faxed him a form to charge my credit card $500. The car was prepped and waiting for us at 6 pm Friday, November 30th.
They said the doc and notary fees had to be shown on the sales form, so they reduced the sales price by the $133.
Sales price $26,423 (so I paid $153 for the splash guards which was too high, obviously, but at least I got the trunk mat and the wheel locks thrown in)
Sales tax $2378 (9% in Louisiana, ouch)
Waste tire fee $8
Tag and inspection $22
License title and registration fees $88.50
We had been approved by Pen fed for a 60 month loan for $29,000 at 1.49% but did not have any paperwork on it. The finance manager was able to get me 1.84% through a bank and I was satisfied with that. No financing fees.
The finance manager tried to sell both gap insurance and the extended warranty, already figured it into the monthly payments. He removed the cost of both though since we were firm without any hassle. Before he removed the cost he even came down a little on the price of the warranty which he called VIP and included the use of a rental car. The 6 year extended was $1,120 and the 7 year was $1,220. We may get it later, maybe through the internet from one of the dealers listed in this forum.
The dealer was Richards Honda in Baton Rouge, Louisiana. It was hassle free dealing with both the internet salesman and the finance manager. The finance manager actually grew up not far from where my husband grew up in NOLA, so we had a good rapport. He also is studying accounting and we are both CPA's. It went smoothly and I would recommend this dealer.
I think dealing on the last day of the month helped.
It was late when we drove our car home, so the salesman offered to walk us through setting up the technology options Saturday afternoon. He spent at least an hour and a half setting our phones up, showing us how to do the voice recognition speed dial, Honda link and Aha, and setting up Sirius radio stations. He was very patient.
Thanks all of you for posting so much info. We tried the internet route with the Passat back in early October and it was fruitless. I don't think we got the best deal ever on the Acoord but I was trying to pay close to invoice, and was satisfied that I only paid $156 for the dealer add ons.
#27620 of 29555 Re: Leasing [brian125]
Dec 02, 2012 (7:00 pm)
Thanks Brian, but unless there is a manufacturers incentive on a lease, the dealer would not be motivated to give you any break on the cap cost that he wouldn't give in a purchase. To the dealer, it's only a matter who is paying him for the sale so if you were able to get him to go way under invoice on a lease, he would do it for a purchase too.
I do suggest that anyone looking for a car that maintains it's value and would therefore have a high residual, such as a Camry LE or an Accord LX (as opposed to an Accord Touring) and will not put a lot of miles on it to consider leasing. For the past several years, you could lease an LE or LX, throwing all the fees in the lease, for about $250 a month. Purchasing would be about $22,000. It would take 88 months of lease payments to get to $22,000 and considering the time value of money, even longer. And if you financed the purchase, it would be around 9 years. Sure, your 8 or 9 year old Accord would still be worth a few thousand, but you would have been paying any repairs yourself after year 3. Had you been leasing, you would be on your third new car, probably one with a new re-design, and you would never even be driving a car that was 3 years old.
#27621 of 29555 Re: Leasing [gee22]
Dec 03, 2012 (10:37 am)
I would like to know what you think about the following arrangement.
I am leasing a Honda Accord EX-L V-6 with Nav for $460/month with ZERO downpayment and only paying the first months lease. The residual is $19,050 after a three year lease and 12K/year. The cap costs is $30,260. I think the MF and residual is the same for any Honda dealer and there are no incentives that I know of at this time.
Appreciate you and brian125 thoughts about the above.