Last post on May 25, 2013 at 5:28 PM
You are in the Prices Paid - Buying & Leasing Experiences
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Honda Accord, Car Leasing, Coupe, Sedan
#5060 of 5265 Re: March 2013 deals [gigalo00]
by Car_man HOST
Mar 06, 2013 (5:29 pm)
Hi Edgar. Honda is not currently providing any cash incentives on the 2013 Accord. It does have 0.9% to 1.9% financing and a special lease on it though.
Honda Finance's March buy rate lease money factor and residual value for a 36-month lease of a 2013 Accord Sedan EX-L 4-cylinder with 12,000 miles per year are .00107 and 59% for consumers who qualify for its top credit tier.
It's difficult to say when Honda will introduce cash incentives on the Accord. Traditionally it has maintained a decent level of cash support on it, however the Accord was recently redesigned and as a result Honda scaled back on the cash. I suspect that it will return some time later this year, but exactly when is difficult to say.
Prices Paid: Buying & Leasing Experiences Forum
#5061 of 5265 Lease Re-up with Over Mileage
Mar 07, 2013 (3:08 pm)
Thanks for all the great info shared here! It is fantastic!
My question is: I am currently leasing a 2010 Accord LX and the lease expires soon. Like really soon. Was looking at purchasing it, but lease payments on a 2013 are getting close to payments for an outright purchase. The dealer says they will eat the over mileage (it's a lot) etc. to get me in a new one.
The question for an expert out there is if I lease a 2013 and give this one back to the dealer, how much does the dealer pay AHFC for it? Do they pay the straight residual, the wholesale cost who exactly is eating the over mileage? Looking at NADA, auto listings etc. It appears the trade in value is about 10k. Retail value is 14kish, and residual is 14k. I am playing with the Weymouth calculator. In this scenario would I put 10k in trade in value and 14k in amount owed? That would add the negative equity to the cap cost of a new one. Or does it work completely different on the dealer end?
Anyway, sorry for the long post, but this would really help me out, to be able to visualize where I have wiggle room for a deal.
Thanks in advance for your assistance!!
#5062 of 5265 Re: Lease Re-up with Over Mileage [kp600]
Mar 07, 2013 (3:27 pm)
Most likely the dealer is not going to "eat" the over mileage - they will determine the trade in value of your 2010 and roll any negative equity into your new lease or require an appropriate cap reduction (down payment).
#5063 of 5265 Re: Lease Re-up with Over Mileage [gmanusmc]
Mar 08, 2013 (1:26 am)
Thanks Bill! Figured that would be the case. So in this instance the residual is about $500 more than the retail value I am finding searching different sites etc. Should I be targeting the $500 difference on the deal (difference between residual and retail)? Or should I be targeting the difference between wholesale value and residual when negotiating. The difference between wholesale and residual is about $3k. If I present an offer of the difference between retail and residual will I get laughed out of the dealership
I guess that is the last question I had. I have been inputting numbers in the Weymouth tool. What a great resource!
#5064 of 5265 Re: Lease Re-up with Over Mileage [kp600]
Mar 08, 2013 (7:51 am)
The wholesale value is not relevant to your situation unless your miles overage is huge. That would be your fault for over-driving the lease. The dealer MIGHT be willing to "eat" some of the miles overage but i doubt they would give you a skinny deal on the new car. Think about it - why would they? You are responsible for the miles - not them. The new Accords are selling well so they are not hard up for sales. If all you have to "cover" is the $500 difference, consider yourself lucky.
#5065 of 5265 Re: Lease Re-up with Over Mileage [kp600]
Mar 08, 2013 (10:54 am)
I think you mentioned your lease is almost up - you might want to extend your lease with Honda while you are shopping for your new lease - the extension will be on a month to month basis so you're not locked in long term - this will give you flexibility while trying to work a good deal.
Now back to the miles - if you are significantly over, you might be in a situation where the negative equity is less than the mileage penalty - if that's the case, it's to your advantage to trade rather than do a lease turn in. I think your best strategy would be extend the lease to buy some time, then do some smart shopping to get your best price on a new lease and you might have to work with a few dealers to negotiate your best trade in allowance on the 2010. Nice thing about Hondas - good resale (even with some miles).
Mar 08, 2013 (7:35 pm)
Please confirm or deny the following for a standard 12k/36 month Accord lease:
1. Current mf for "1st and fees" lease is 0.00107
2. Current mf for "sign & drive" lease is 0.00097
Got the info from the weymouth honda site and want to know why the mf is lower for scenario 2. Does this make sense to you?
#5067 of 5265 Re: Lease Re-up with Over Mileage [trusso69]
Mar 08, 2013 (9:07 pm)
Thanks. I am not debating whether or not it was my fault I am over mileage. I realize that it is my fault and I am not going to get the "best deal" available. I am just asking for advice from experts as to my situation. I don't seem to recall in my post where I said it wasn't my fault....
#5068 of 5265 Re: Lease Re-up with Over Mileage [gmanusmc]
Mar 08, 2013 (9:06 pm)
Thanks again! I am in a situation where the negative equity is less than the over mileage fee. So I will keep doing some negotiation. Lease ends towards the end of the month. Good advice and I thank you for it!
#5069 of 5265 Accord 2013 LX Lease
Mar 09, 2013 (10:17 am)
293 Monthly Payment
The residual value of the vehicle is 14,427.40.
What do you guys think? I live in VA. Thanks!