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Prices Paid: Buying & Leasing Experiences Honda CR-V Lease Questions
381 messages, Last post on Aug 15, 2008 at 1:35 PM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
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Replying to: djhalptert (Jun 03, 2008 5:15 pm) I agree, leasing never made sense to me, except if you just dead set on having a new car every 3 years. Even then, you can "self lease" and do it on your terms. If you time your purchase with financing incentives from Honda, you can get 2.9 for 60 months, no problem, with good credit of course. $20,000 at 2.9% for $60 months is about $350/month. After 3 years of paying $360/month you will have paid $12,600 and owe about $8,000 on the loan. If you were to sell a 3 year old CR-V with 36,000 miles, you could get anywhere from $12,000 to $17,000, depending on whether you trade in or sell privately. Use portion of that money to pay off the loan, and you have a solid $4,000 to $9,000 in your pocket. This is the money you wold have given to the leasing company, why not keep it your self? A 3 year lease would cost anywhere from $350 to $450 per month. Add acquisition fee, security fee and other lease associated fees and your total for the 3 years is between $12,600 and $16,200 or more. You have no equity in the vehicle and have nothing to show for the last 3 years of payments. Would anyone be so lazy to not to bend down and pick up $4,000 to $9,000 laying on the floor? They are doing it with leases on Hondas every day. This only works with vehicle that have high resale value. Most domestics depreciate so fast and so badly that leasing is probably more efficient.
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Replying to: blueiedgod (Jun 06, 2008 7:53 am) For example, if MSRP on a 2008 CR-V is $22,000 and residual is 62% then it will be worth $13,640 at lease end. Even with a modestly negotiated net cap cost of $21,000 your base monthly payment before rent charge would be $204. Unfortunately, the rent charge is an additional $81 A MONTH!!! If your tax rate was 8% your payment ends up being $308.71 per month for 36 months. That is actually lower than the $364 the poster above said he got on his but in my opinion is still WAY TOO HIGH. I think about $250 with tax is resonable. Over $350 per month DOESN'T MAKE SENSE. One of my friends just leased an 08 Mercury Mariner 4X4, sign and drive, for 36 months for $266 per month with 7% sales tax included. MSRP was a little over $25K. The key here was the lease rate was 2% versus Honda's 5.64% and unlike Honda dealers, the Mercury dealers acutally like to negotiate a lower sales price and actually have lease cash rebates to work with. $266 PER MONTH MAKES SENSE. If Honda actually wants a lease program they would set the lease rates lower and have additional lease cash incentives and dealers willing to negotiate. Honda obviously does not want a lease program. I wouldn't lease a car from any manufacturer which has a 5-7% lease rate in June, with no additional incentives and no dealers willing to negotiate a good sale price on a vehicle that has been sitting on the lot since August. A slightly lower residual on a competitor's model doesn't even play into account when you get a lease rate of 1-2%, plus lease cash rebate incentives, and a good dealer willing to knock off a chunk of the over inflated 8 month old sticker price. In my opinion, if you can't save at least $75-$100 per month leasing versus actually buying, DON'T DO IT. |
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Replying to: Car_man (Jun 06, 2008 3:08 am)
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Replying to: zack82 (Jun 06, 2008 6:36 pm) Zed
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Can someone please explain to me why the lease vs. buy calculator indicates that it is $100 cheaper for me to buy than lease even though my payments per month would be $100 per month more expensive to buy (roughly $400 vs $500)? My math goes something like this - leasing for three years saves me $3,600. After 3 years, I owe nothing and have nothing. If I buy, after 3 years, I still have payments for the car to own it of about $12,000, and the residual value is about $15,400 ... so maybe I break even if i sell it after three years for a value above the residual. Don't understand the argument for buying via financing and then selling. I guess if the rates are hugely varied a case could be made, but this is not the case in the example i used. thx
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Replying to: dk93 (Jun 09, 2008 8:13 pm)
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Replying to: indianajohns (Jun 10, 2008 4:57 am)
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Replying to: dk93 (Jun 10, 2008 10:43 am) CRV EX 4WD - $332/month including tax MSRP: $24,785, Selling Price: $23,316.71 MI sales tax of 6%, initial payment, doc fees, bank fee included. Can anyone point me to the current money factor, residual, invoice price. I think this is fairly good deal and probably $500 over invoice. Does anyone have any luck on getting close or below to invoice? |
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Replying to: dk93 (Jun 10, 2008 10:43 am) MSRP RESIDUAL MONEY FACTOR NET CAP COST which is the SALE PRICE plus ALL fees involved. TERM (MONTHS) The formula is: BASE PAYMENT= CAP COST minus RESIDUAL divided by term RENT CHARGE= CAP COST plus RESIDUAL multiplied by Money Factor Add the two together and depending on your state, you add the sales tax to the total monthly payment OR you may have already added them in to the Cap Cost. Some states are weird like that.
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Replying to: indianajohns (Jun 10, 2008 7:54 pm) MSRP 27,835 Residual 15,400 Money Factor .0026 All in cost 28,000 36 month lease; 60 month financing for purchase (at 4.84% best financing rate) Any more info would be appreciated.
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