Last post on Dec 09, 2013 at 9:06 AM
You are in the Prices Paid - Buying & Leasing Experiences
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Honda Accord, Car Leasing, Coupe, Sedan
#5353 of 5564 Re: 2013 Honda Accord EX Lease Quote [mnz1999]
Jul 21, 2013 (7:26 am)
I need to amend the payment of 2013 Accord EX i posted earlier. $368 does not include the 8% tax (miss communication between myself and dealer). i got a revised quote of $375 a month only 35 payments
zero down (just sign and drive)
36 Months and 24K miles a year
Car Man please let me know how's the deal. i need to take the car by tomorrow. other members your comment and opinion are welcome as well.
#5354 of 5564 Re: 2013 Honda Accord EX Lease Quote [mnz1999]
Jul 21, 2013 (7:58 am)
Prepaying for that much additional mileage is a mistake.
If the car is stolen or otherwise totaled, you will not benefit
from that prepayment and the insurance company will not reimburse
you for the additional monthly payments you made.
It is similar to prepaying the sales tax in total up-front instead of including it
in the monthly payment.
#5355 of 5564 Re: 2013 Honda Accord EX Lease Quote [mnz1999]
Jul 21, 2013 (8:12 am)
The lease payment is based on the capitalized cost of the car (sales price, lease inception fees, DMV fees, doc fees etc), the money factor and the residual.
If you provided those details, we would be able to provide comments. You don't negotiate a lease based on the monthly payment, you obtain the money factor and residual and lease inception fees and, then if they are reasonable, you negotiate the purchase price just as if you would be buying the car. Put all the numbers into the lease formula and then you understand what your monthly payment represents.
The fact that this is a 24K miles/yr lease makes it impossible for us to even guess what price the dealer is selling the car since none of us have probably ever seen a residual percentage for such a lease. I can't tell if he is charging under invoice or over MSRP. Even understanding your DMV helps since fees can vary widely by state.
Go back to the dealer and get all the details and then post. Rent a car for a day if you have to but don't blindly enter a lease because the payment fits within your budget unless you don't care that the dealer makes a huge profit at your expense.
#5356 of 5564 Re: 2013 Honda Accord EX Lease Quote [dandydan9]
Jul 21, 2013 (8:17 am)
dandydan, did I miss something? He's doing a sign and drive with nothing due at signing.
I agree with your position 100% and always do my deals with 36 equal monthly payments and nothing else paid at signing. He's not even paying the first month payment at signing.
#5357 of 5564 Re: 2013 Honda Accord EX Lease Quote [huskerfan5]
Jul 21, 2013 (8:36 am)
True, prepaying up-front for the mileage outside of the monthly payments would be the worst possible thing to do.
I just do not like to pay for something I may not benefit from in the event the vehicle is totaled prior to lease expiration.
Insurance plus gap will cover the termination of the lease if the vehicle is totaled, regardless of the mileage on the vehicle at that time.
In that case, you would have been paying for the extra12k mileage annually for naught.
#5358 of 5564 2013 ACCORD EXL
Jul 21, 2013 (9:00 pm)
I just leased my 4 door accord ex-l 4 cy.
sticker was 28795.
36 months/15,000 miles a year
0 sign and drive. didn't pay first month.
335 plus tax.
i think it was a pretty sweet deal. wish they would have thrown in a cargo net!
#5359 of 5564 Re: 2013 Honda Accord EX Lease Quote [dandydan9]
Jul 21, 2013 (10:20 pm)
Dandy - I guess he could bet that he will total the car during his lease term but look at it this way - if he really does drive that many miles, he only pays about 8 cents a mile if it's cooked into the lease in advance and 15 or 20 cents a mile if not and he ends up 36,000 miles over at lease end resulting in up to $7200 mileage penalty. If he cooks those miles into the lease, he pays about $2880. If he actually drives those miles and the car is totaled or stolen, he really hasn't lost anything - he's just paid for his actual use of the vehicle. Now if he pays for those miles and doesn't use them - that's different - but even in that case, he will have a reduced residual and might realize some equity on a trade or private sale.
#5360 of 5564 Re: 2013 Honda Accord EX Lease Quote [huskerfan5]
Jul 22, 2013 (7:33 am)
thanks for the reply...waiting for the dealer to get more details.
#5361 of 5564 Re: 2013 Honda Accord EX Lease Quote [mnz1999]
Jul 22, 2013 (7:45 am)
this is exactly i had in my mind. Yes I do drive 24K miles a yea... I could have bought the car I guess around 23000K plus 8% tax 23840 OTD and at the 1.9% interest rate for 60 months the payment would have been $435 (rough numbers). another scenario if the OTD price would be $24000 payment = $419 vs lease $375 (only 35 payments). But i am not planning on keeping the car for more than 3 years even if i had bought it so with high mileage that i drive the next dealer would defiantly ding me on my trade...that was the thought process behind lease vs buying (not sure how good assumptions i made)
I am waiting for more details from the dealer to share with you guys (this will help future consumer with high mileage lease).
thanks for your input so far
#5362 of 5564 Re: 2013 ACCORD EXL [km38ia]
Jul 22, 2013 (8:10 am)
What state are you in and what dealership?