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Prices Paid: Buying & Leasing Experiences Honda Accord Lease Questions
3629 messages, Last post on Dec 04, 2009 at 9:38 PM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
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Replying to: shant14 (Aug 30, 2007 5:27 pm) |
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I'm in Los Angeles and trying to figure out what my Actual Costs are and what is a fair deal on a 2007 Accord LX Auto - TMV is $19,388.00 The national advert/Official Certificate says: $199.00 36 months 12k miles/year $1999 cap cost reduction to qualified buyers (This is paid by dealer?) $2793 due at signing - Says includes 1st mo, security, acquisition fee, and capitalized cost reduction - This is nearly 3k at signing, seems a bit much. Shouldn't tax Based on $21520 MSRP - $12481.60 residual -58%-Is this high can it be negotiated? And am I correct in assuming that this is what my buy price will be in 36mos? It seems to me to be a reasonable price if actual out of pocket expenses are less than $3k and monthly payments are $199.00, with a buyout price in 36mos of around $12500. Or can I do better, in your humble opinion. I also used the lease calculator on Edmunds - Would these results be fair to take to a dealer to negotiate a good deal? TMV $19388 8.25% Sales Tax $1600 Title, Reg, etc. $291 Cap cost reduction -$1999 Lease term 36 mos Miles 12k/yr Residual $12482 Acquisition fee $500 Security Deposit $200 Money Factor .000835 (used this number to make payment work out to $199 based on total amount financed of $18542) Thank you very much in advance for the advice.
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I got a lease with "no" money down (just the initial stuff and first month) of about $660, for $280/month for a new 2007 Honda Accord EX-L V6 Sedan (Automatic). After a long phone negotiation. Boston area. (all inclusive) Miles - 12K/year Money down - $660 Payments - $280/month Term - 36 months MSRP is $27,400 Thoughts?
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Hey, Car_man. I've got a dealer in Twin Cities to agree to $23,000 for V6 EXL Coupe with mats, moonroof visor and mudflaps, which I think is a very strong deal (almost $2000 under invoice excluding "extras"). What kind of residual factor and money factor do you think I should be looking for? I have very strong credit history (~740+ score). I'm thinking 57-58% residual for 36 months  12K and .00005 money factor. Are those realistic? How much difference in the residual would there be for 10K instead? I plan to pay only first month's pmt and license/title fees upfront and cap everything else.
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Replying to: oh2jibe (Aug 30, 2007 7:31 pm) Okay, here's the Ad... FEATURED SPECIAL LEASE: Closed-end lease for 2007 Accord 4-cylinder Sedan LX Automatic Transmission (Model CM5647EW) for $199.00 per month for 36 months with a $1,999.00 capitalized cost reduction available to customers who qualify for the AHFC Super Preferred credit tier. Other rates/tiers are available under this offer. $2,793.00 total due at lease signing (includes first month's payment, security deposit, AHFC upfront acquisition fee and capitalized cost reduction; total net capitalized cost and base monthly payment does not include tax, license, title, registration, documentation fees, options, insurance and the like). Not all buyers may qualify. Subject to limited availability. Through 9/4/2007, to approved lessees by American Honda Finance Corp. Closed end lease for 2007 Accord 4-cylinder Sedan LX Automatic Transmission vehicles (Model CM5647EW), for well qualified lessees. Not all lessees will qualify. Higher lease rates apply for lessees with lower credit ratings. MSRP $21,520.00 (includes destination) less the capitalized cost reduction (which may be paid by the suggested dealer contribution) resulting in actual net capitalized cost $18,072.93. Dealer contribution may vary and could affect actual lease payment. Taxes, license, title fees, options and insurance extra. Total monthly payments $7,164.00. Option to purchase at lease end $12,481.60. Lessee responsible for maintenance, excessive wear/tear and 15 cents/mi. over 12,000 miles/year for vehicles with MSRP less than $30,000, but for vehicles with MSRP of $30,000 or more, mileage cost is 20 cents/mi. over 12,000 miles/year. See dealer for complete details. You should be able to buy this vehicle at invoice. Check edmunds or kbb for invoice pricing in your area. I'm guessing that it's close to $19,350 based on the TMV that you provided. Next, according to this Ad, the money factor is about 0.00143 and the residual is exactly 58% of the MSRP. Residuals are established by the fund provider and can't be negotiated. The residual and payment vary inversely. The higher the residual; the lower the payment and vice versa. AHFC's acquisition fee is $595. Also, there is no reason why you should pay the $1999 cap reduction. Bad idea! Why? Because (1) a car is a depreciating asset and (2) if your car is totaled, it's unlikely that you'll recover your down payment. And so, you're much better off banking the $1999 and using it to subsidize your higher lease payment if necessary. Afterall, the money factor equates to an interest rate of about 3.4%. You may want to check my sample lease proposals posted in other forums (e.g., Infiniti G35, Acura TSX, etc.) and use them as a template to construct your own one page lease proposal. I FAX/email it to the dealer and it saves lots of time, money, and aggravation. At any rate, here's what I have... MSRP = $21,520.00 Agreed Upon Value (Sell Price) = $19,350.00 Acquisition Fee = $595.00 Gross Cap = $19, 945.00 Cap Reduction = $0.00 Adjusted Cap = $19,945.00 Residual = 58% x $21,520.00 = $12,481.60 Money Factor = 0.00143 Base Payment = 0.00143 x (19,945.00 + 12,481.60) + (19,945.00 - 12,481.60)/36 = 253.69 I don't know how California computes sales tax. Most states tax the payment streams. Some tax the agreed upon value plus any other taxable items. Others tax the depreciation. You may want to confirm how CA computes sales tax but you seem to suggest that CA taxes the agreed upon value plus all other taxable items (e.g., acquisition fee). IF this is indeed the case, then your CA sales tax liability is... 0.0825% x 19,945.00 = 1645.46 In addition, the following amounts are due at Lease Signing... 1st. payment: $253.69 Security Deposit: $275.00 Sales Tax: $1645.46 Title/Registration/Plates: $291.00 (wow, seems high) You can cap any or all of these items. If you cap them all, you would have what is known as a sign and drive lease. However, you need to be very careful. I haven't found an Ohio dealer yet that can correctly compute payments on a sign and drive lease. I think this industry is mathematically challenged. Hope this helps. John Medina, Ohio |
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I just got my EX cloth today no navi no option. Signed and drove off with monthly lease of $269 after tax. price was 21500 plus 595 which looks like the dealer covered (since i didn't pay anything today) making the total $22100. res. value of 13975 at the end. I hope i got a decent deal here cuz i don't feel like i got a GREAT deal, but i am happy for now (until i hear otherwise from Car Man ) this was at Downey Honda, CA. i am not sure if i can mention salesrep.'s name here, so i won't. |
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Replying to: Car_man (Aug 30, 2007 2:49 am) |
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Replying to: Car_man (Oct 09, 2005 5:18 am) MSRP $27,995 36months 15k ml/yr payment 319 tax inclusive (NY state) out of pocket $ 1210 (includes first payment, DMV fees, and I guess some money down) Have to respond today by end of the day........ did not ask for other numbers (like residual, mf, and so on), I am not planning on buying this car at the end of the lease. any thoughts??? any suggestion is appreciated!! Happy Holiday to all |
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Replying to: Car_man (Aug 31, 2005 3:05 am) Thank you in advance
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Hello, I am curious on what a lease on a 27k final price of an accord would be. I would be curious to see what others were paying when we were in the middle of the current generation accords. Where money factors and residuals were not really hot. Anyone buy an accord in like 03-04-05 when the numbers were really strict and no support. This would give me an idea of what my lease payments would be on the 08 model. A 27k EX-L would be 27k for awhile, and it will be the standard lease with little support. I am willing to put money down, which is not advised, but the only way for me to get what I want. The dealers are going to try and mark up the cars, and pulling all the cards, I can't wait til its out. What I am looking at in terms of 27k accord lease payment? 
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