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Prices Paid: Buying & Leasing Experiences Honda S2000 Lease Questions
270 messages, Last post on Dec 01, 2008 at 5:20 AM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
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Carman and others: I've read so much about leases that it has become cluttered in my head and I was hoping for a double check... Correct me if I am wrong. Part I -The first step is to negotiate selling price of car (doesn't matter if lease or purchase). -The MSRP to use in the calcualtion is AFTER dealer installed options. -Net capitalized cost to use is the invoice minus incentives. I'm trying to work the deal where I don't pay for the options and I pay the car's invoice minus $2000 creating a difference of around $7K. Part II I already know the residual values for the 2007 and the money factor; another dealer has a new Grand Prix White 2006, would the money factor and residual values change on the new 2006 being that we are now in 2007? If the values are different, would you mind posting what would they be (or would older postings still be relevant numbers to use?)? Seems to me a lease deal could be significantly better on the '06 than on an '07 given all things equal?  Thanks in advance... |
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Replying to: accelerator (May 04, 2007 11:17 am) I don't know what accessories you want or need, but generally Honda will not let them include dealer added stuff to the MSRP as basis for the lease. On a lease, you are generally on your own for stuff you want the dealer to add. Over the Accord lease forum someone had a dealer make that mistake - they put all the high priced accessories on the car and added them to the MSRP to figure the lease. The lessee ended up with a very low payment - but I am afraid AHFC will not fund the lease or the dealer will have to eat the loss - or unwind the deal. Net cap should be close to invoice less the $2k incentive and maybe plus a dealer fee. I asked for a couple of quotes and got $30,260 and $30,503 for the car, destination, and dealer fee. This is from dealers that normally are really cheap on everything. Obviously your dealer may make you a better deal, and if I were serious about a new 07 S I might could hammer them a bit on price. A lease is based on the different between net cap cost and residual factored over time with interest. The 06 would make a WORSE lease car since you can get a new 07 for about $2k under invoice. Edmunds shows "up to $750" on left over 06 S2000s - but there is probably more than that. In any case, if they gave you the 06 for invoice - incentives - 100% of hold back it might be $1k - $1.5k cheaper than the 07. When you plug in future value, the 06 will worth a good bit less. If you check an 05 with 36k VS an 04 with 36k it looks to be $1,400 to $1,500 less. So if you start with a $1,000 savings and end up with a $1,500 less residual - and likely a higher money factory, you will pay more for the older car. Check at leasecompare.com and see what they would do with either car and I think you will find that most lease banks consider the car to be "used" once the next September hits - no matter if the car is really new or not. The best thing is to wait and hope for a cheap lease deal again. Failing that, make your best deal on price and compare the AHFC current rate (6.84%) VS what the dealer could get from a 3rd party bank VS leasecompare.com and take the one that is the best deal. Dennis
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Replying to: dwynne (May 04, 2007 11:50 am) Leasecompare doesn't show 2006 as an option anymore.  I just emailed them a few minutes ago. I'll post once they reply.
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Replying to: dwynne (May 02, 2007 10:13 am) I am dreaming of this car since the concept was introduced in the late 90s. I am finally getting close to be able to afford one this year.  Driving home today (LA) -I always pass a HOnda dealer- and saw 3 brand new dark silver s2k's in the showroom. I had to stop and, how it is, numbers got crunched. I have 2 questions for this very informed and knowlegable forum: 1.I was told that my 719 Fico, first time buyer and short credit history (am only 4 years in the states)would not qulify for the AHFC super preffered credit. (I didnt allow them to actually pull my credit, I just pulled it 2 days ago). Further they told me that it would not matter whether I wait for a lease special to come out or lease one now, since I would only qualify for preferred credit. Lower credits would not be benefit of a lease special. Is this true? 2.The best deal they gave me today (alt.Bank)was: 48mo/12k, $3000 drive off, $433/mo (incl.tax). What do you guys think? If its true the special wont do anything for me this seems not to be too bad of a deal. I would really appreciate your vast knowledge on this. I am waiting to the day to sit behind this beauty for over 7yrs...but every dollar less would make it easier to pay off student loans AND to drive the sweetest car there is  Thank you in advance!
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Replying to: cantwait_s2k (May 04, 2007 11:09 pm) 2) AHFC uses your Experian Auto Fico 2 score. Unfortunately, this score is not available to the consumer and may vary by 20-40 points from the score you pull. (I know this from recent personal experience!) An Experian Auto Fico 2 score of 710 qualifies you for the super preferred credit tier - I don't know how or whether AHFC factors in other aspects of your credit history. I'd be at least a little wary of the info you're getting from this dealer - they're almost certainly trying to put you into a lease they can make more money on - and they are probably smelling your "S2000 lust". 3) At leasecompare.com I input your Fico score along with a "selling price" of $29,000 with nothing down. I got back a 48mo/12k payment of $398 plus tax. Remember this is with zero down. It's zip code specific and, I suppose, might vary depending upon where you live. But I certainly wouldn't do a non-AHFC lease with anyone before seeing what leasecompare.com comes up with.
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Replying to: rujo (May 05, 2007 12:38 pm) I also run the numbers again and it seems 0 down and 400+tax would be an OK deal with an APR of approx.6% on a 48mo/12 k deal. Leasecompare just does not seem to include any fees tilte, first month etc. which end up being around $1500 at drive off. I am currently pushing numbers with a dealer who is dying to run my credit. The only thing I am still sketchy about is whether I would qualify for a special w- AHFC (if there is one coming out) and whether other tears would benefit from it also. I have scheduled to go to the dealer again tomorrow. It would be great if anyone in this forum knows anything about how AHFC deals with it. Thanks! |
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Replying to: tonyr313 (Apr 15, 2007 3:56 pm) For now I can tell you that it is not a good idea to pay $5,000 at lease signing. There's nothing wrong with paying the first month's payment, security deposit, etc... for a lease at signing but you really shouldn't make any sort of capitalized cost reduction. Consumers who make large down payments on leased vehicles risk possibly losing them if their vehicle is totaled in an accident or stolen and never recovered. Car_man Host Prices Paid Forum |
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Replying to: dwynne (May 01, 2007 3:00 pm) Car_man Host Prices Paid Forum |
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Replying to: 23109vc (May 03, 2007 5:57 pm) Car_man Host Prices Paid Forum |
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Replying to: accelerator (May 04, 2007 11:17 am) Vehicles' residual values are based upon their full MSRPs, including the destination charge and any factory installed options. I am not sure if Honda Finance allows the dealer-installed options to be residualized. The capitalized cost for your lease is whatever price you negotiate. If I was in the market for an S2000 right now, I personally would shoot for a price of around dealer invoice minus the $2,000 dealer cash as you mentioned in your post, but there is no guarantee that you will be able to get hat price. General Motors is no longer offering leases on 2006 models. If you want to lease an '06 Pontiac Grand Prix, you will have to do so through an independent bank. I have to tell you though that this late in the model year the residual values of leftover 2006 models have dropped so much that they probably are going to be unreasonably expensive to lease. Car_man Host Prices Paid Forum |
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