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Honda S2000, Car Leasing, Convertible
#182 of 270 trading up?
Oct 06, 2007 (2:01 pm)
Wonder if a lease guru could help me out...
I am playing around with an idea of trading up to a new s2000 because of the falling demand. I have a 2004 silverstone with red/black interior. It has 30,000 miles and i have pay off of 19,500 which seems to be in the neighborhood of trade in value. I'm thinking of leasing rather than my current finance to get one of the last of the great breeds. My payments are $400 and i have four years left - got it last year at a great price.
Here is one quote i got...
"2007 Honda S2000 Lease with 12K mi/yr, all tax (7%) and fees included. You're right, need to appraise trade-in here.
36 month lease with only 35 payments of $583.61, and just $658.61 due at pickup
42 month lease with only 41 payments of $530.21, and just $605.21 due at pickup
48 month lease with only 47 payments of $505.00, and just $580.00 due at pickup"
#183 of 270 Re: trading up? [yinzer1]
Oct 06, 2007 (3:15 pm)
I did this - traded in my 2001 for a new 2005 2.5 years ago. They gave me what I needed for the 01 and sold me the 05 for invoice (at that time there were no dealer incentives). If Honda brings back cheap S2000 leases again I would try to do the same deal again to get a newer car.
Trade in value for a 2004 with 30k in excellent condition is about $20k, depending on who you ask. You can bet the dealer's book will be lower.
Right now Edmunds is showing no incentives on either the 07 or 08 S2000s - but there was up to $2k in dealer money on the 07s earlier.
You need to break the deal down into its component parts:
Negotiate the price on the new car - either 07 or 08 as close to invoice as you can get, below invoice if there is dealer money. You may be able to get one below invoice since there is a lot of holdback in a $35k car.
Negotiate the lease terms separately only after you have gotten the price you can live with. Check sites like www.leasecompare.com to see if they can offer you a better rate and to make sure the dealer is giving you a fair deal.
Negotiate the trade in last - you should be able to maybe get enough to cover the buyout on your current car if it is in great shape, but maybe not. If you deal down low on the new car they will want you to deal down low on the trade.
Don't play payments - deal on the price, the lease terms, the dealer fees, and the trade and see where the payments fall once you know you have good deals in each part of the transaction. If you can live with the payments, then do the deal.
Oct 06, 2007 (3:22 pm)
Probably the best time to negotiate is when the 08's start rolling onto the lots, right? When would that be?
I got some internet prices - should i just use lease compare with the internet prices?
Oct 06, 2007 (3:29 pm)
Wow - it looks like leasing is not strong on the s2000 anymore. I just did the numbers on the leasecompare.
#186 of 270 Re: Dennis [yinzer1]
Oct 06, 2007 (9:02 pm)
I would say if your dealer has left over 07s they should be dealing on them now. Hopefully Edmunds will show there is still dealer money on them.
Once you have a good price, you get the lease numbers from the dealer - then compare them at leasecompare (get it, lease compare?) . If LC has a better deal, you can lease it through them - and they buy the car at your price from the dealer and lease it to you. On cars that have not trouble selling, like the 08 Accord (right now) and the new G37 from Infiniti the LC lease price is probably a big money saver. When sales are slow and the manufacturer has to offer special rates (like they did on the 07 Accord earlier this year and the Infiniti M34/M45) and normally no third party bank can touch.
#187 of 270 Re: leasing [yinzer1]
Oct 06, 2007 (9:07 pm)
Did you check the 07 or 08 numbers? Once the model year ends the rates go up on the "old" cars since they are now considered used to the lease bank.
The S used to be a strong lease car due to high demand, low supply, and high resale value. They have been on the market for so long and there is a lot of competition so they don't hold value nearly the way they did - the result is a more expensive 3rd party lease.
Honda is having a lot of trouble selling them and has lately not had many cheap leases. That seems strange, but if you think about it they want to sell the cars since if they lease you one cheap they are likely to get it back then have to sell it again. I am hoping they will get motivated to offer cheap leases again, but I keep watching and they don't have anything nearly as cheap as I got on my 2005.
#188 of 270 Re: 2007 S2000 Lease Payment [bvance]
Oct 08, 2007 (3:00 am)
Hi bvance. Let's work up a lease payment on this car for you and see what we come up with. According to my calculations, if you were to lease a 2007 Honda S2000 that has an MSRP of $34,885 and a selling price of $31,995 through Honda Finance right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $514 assuming that you qualify for its top credit tier and pay a security deposit at lease signing.
Having said this, given the $2,000 dealer cash that Honda is currently providing on the '07 S2000 you should be able to do better than $31,995 on one right now.
Prices Paid: Buying & Leasing Experiences Forum
#189 of 270 Re: trading up? [yinzer1]
Oct 08, 2007 (3:07 am)
Hi yinzer1. You really need to find out what selling price these leases are based upon because the monthly payments that you were quoted look a little high to me. The selling prices of leased vehicles are negotiable, just as if you you were paying cash for or financing them. Given the $2,000 dealer cash that is currently available on the 2007 S2000, I would not be surprised if you were able to negotiate a discount of $4,000 to $5,000 on one right now. Shop around for the lowest possible selling price that you can find and then have the dealer that you are working with calculate your lease payment using Honda Finance's current buy rate lease money factor of .00275 (for "Super Preferred" tier customers who pay a security deposit at lease signing.
Prices Paid: Buying & Leasing Experiences Forum
#190 of 270 Better to Buy vs Lease
Oct 08, 2007 (7:05 am)
I was looking to lease my second S2K, but the leases are terrible now. So I ended up buying one last Thursday, got an '07 Silverstone and paid $29,000+ tax, alarm included. I have heard of deals a bit cheaper too in different states, I'm in CO. They still had the 2k incentives, and were advertising the car at 5k under msrp, so I negotiated a bit more.
If at all possible, I recommend buying an '07 right now, thats where the best deal can be found.
#191 of 270 Re: Better to Buy vs Lease [rd1ofakind]
Oct 08, 2007 (1:15 pm)
Nice Job! I'd love to bring mine up there to the hills just outside of Manitou Springs... there are some twisties that would just be a blast in the S! If you get a chance to head up that way, hit the VTech in the canyon once, just for me!