Last post on Nov 27, 2013 at 9:22 PM
You are in the Prices Paid - Buying & Leasing Experiences
What is this discussion about?
Honda CR-V, Car Leasing, Wagon, SUV
Dec 05, 2008 (5:47 am)
I hope this is the right place to post this.
My wife and I just got married, and we are looking to lease (buy?) a new CUV. I currently drive a 2001 Hyundai XG, and she drives a 2004 Kia Rio. My car is paid; hers still holds negative equity (somewhere in the neighborhood of 3K to 5K, I will have to find out for sure from her). I have done some research, and it appears that my car is valued at around $2000 - $2500. Getting to the point . . .
We would like to trade-in both cars, get a bigger vehicle (to tote my HUGE keyboard around), consolidate our insurance payments, deal with just one monthly payment, and stay under warranty. Obviously, we are considering a Honda CR-V, and we are also considering a Hyundai Santa Fe.
Here are the offers:
2009 4WD Honda CR-V LX
Money Factor: No clue
Warranty: 3-Year Limited
4-Year Residual: $11200
2008 AWD Hyundai Santa Fe GLS
Online Discount: $1639
Money Factor: No clue
Warranty: 5-Year B2B
4-Year Residual: $6000
The residuals (56% vs. 30%) have been a huge hang-up. Notably, the salesperson at Hyundai referred me to the leasing office, who gave me the 30% figure. When I told her what he had said, she seemed quite shocked, and mentioned that she had a 2004 on her lot currently selling for $14000. Not sure what to make of this.
Also, given the 5-year Hyundai warranty, I'm wondering if we could/should take advantage of a lower monthly payment through Hyundai, and accept a 60-month lease term. Would this be an reasonable decision? What about HondaCare? Would it be wise to accept a 60-month lease term under a HondaCare warranty?
I happen to prefer the look of the CR-V. Not that important.
The Santa Fe appears to be a larger vehicle.
Hyundai is offering something like 2% or 3% APR through 60 months; but we would have to finance. Notably, they seemed to be encouraging this . . . any good reasons why?
I have communicated exclusively through e-mail with both dealerships, and haven't test driven either vehicle, yet. Any other factors we should consider before visiting, or advice? Other similar vehicles or dealerships? Any help at all would be greatly appreciated.
#402 of 1295 Re: CR-V vs. Santa Fe [TheQuestian]
Dec 05, 2008 (7:12 am)
It's my understanding that Hyundai's have a poor residual value, so leasing doesn't make any sense. In fact, I test drove the Santa Fe recently and the dealership told me they do not lease at all. When I checked them out a few years ago they told me the same thing.
Some dealerships might offer a leasing option, but it doesn't make any sense to lease a car that depreciates so quickly.
According to Consumer Reports the Santa Fe has an "above average" predicted reliability which is quite good. My guess would be that consumers have a lower demand for used Hyundai's because they do not perceive the reliability to be as good as Consumer Reports suggests. In this case perception is reality. Regardless of the reason, the demand for used Hyundai's is relatively low.
As a result, your choices are to buy or lease the CR-V or buy the Hyundai. Leasing a vehicle with a low residual (even if it is much higher than the 30% mentioned in your email, it has to be much lower than Honda) doesn't make any sense. That is why the dealership is discouraging you from leasing one.
Good luck with your decision.
I'm trying to decide between the '09 Forester (you might want to check it out) and the CR-V. Anyone have any advice regarding these two vehicles?
#403 of 1295 Re: CR-V vs. Santa Fe [newcarguy5]
Dec 05, 2008 (7:35 am)
I checked out the Forester and the CR-V last August. I chose the CR-V. The main reason that I was looking at the Forester was their handling. They are touted as having a great 4 wheel drive system along with the associated benefits. But as I did not need the 4 wheel drive, I chose a FWD CR-V. I have had no complaints and no regrets.
#404 of 1295 Re: CR-V vs. Santa Fe [newcarguy5]
Dec 05, 2008 (7:49 am)
Ha, well your understanding seems to be correct, doesn't it?! Thanks very much for the reply!
All of the feedback I've received so far seems to be touting the build and quality (and obviously re-sale value) of the CR-V. So now the question is how to deal with Honda. Is this price pretty good? I believe it's pretty close to the Edmund's TMV price. How is the money factor determined? I have read that it relates to the interest rate, somehow, but what factors actually affect it? Or is it more concrete depending on credit/vehicle?
And does it make sense to get HondaCare warranty coverage? I don't think I would like our lease term to exceed the length of our warranty coverage. If we were to decide on a 48-month or 60-month lease, would it be worth it? Is HondaCare good and reliable? Is it worth the money, or is there some other better alternative?
Again, any advice is welcome!
#405 of 1295 Re: CR-V vs. Santa Fe [TheQuestian]
Dec 05, 2008 (5:39 pm)
The money factor is set by the leasing company and is not usually negotiable. If you want to know how it equates to an interest rate just multiply by 2400. For example a MF of .00175 equates to an interest rate of about 4.2%.
As for the term of the lease it's usually not recommended to lease a vehicle for more than 42 months. If you're going to lease for 60 months you might as well buy it. One of the main reasons for leasing is so you can drive a new car every few years without having to worry about the resale value of a trade-in every time. Also, the warranty covers most or all of the time you have the vehicle.
You don't seem like the type of person who needs to drive a new car every few years, so I'm surprised you'd want to lease. For someone like yourself I think buying might be the way to go.
I suppose you could buy an extended warranty, but I would still limit the length of the lease. I can't speak to HondaCare, but remember that part of the reason for buying a Honda is the reliability. According to Consumer Reports most warranties are not a good deal, but if it helps you sleep at night it might be worth it (personal decision).
As for getting a good deal, get at least two or three quotes for comparison.
By the way, I took a test drive of both the Forester and the CR-V with the wife this afternoon. Although I was leaning toward the Forester we have definitely decided that we're going with the CR-V. My only concern is that she is going from a Maxima with about 270hp to a car with 166hp. However, she basically uses it just to run around town so it should be fine. For the first time I'm buying instead of leasing.
#406 of 1295 Re: CR-V vs. Santa Fe [newcarguy5]
Dec 06, 2008 (5:04 am)
Thanks for the great feedback; very useful! I am afraid this post might not still fit in this forum, but it is a response to a post that did, right?
Quite serendipitously, upon arriving at work, I found that two co-workers had parked next to each other in the lot; one in a CR-V, and one in Santa Fe. Side-by-side comparison; what an opportunity! Also, it turned out that my cousin knew the CR-V owner, so I was able to test drive the CR-V.
While it was a very good vehicle, the engine did seem a bit underpowered. Especially considering the extra 120+ lb. keyboard that would be regularly making its acquaintance, I feared it might not be appropriate. The Santa Fe also appeared to have a bit more cargo space (given its size advantage), so we are leaning that direction.
New information: I found out that my wife's negative equity on her Rio is closer to being in the ballpark of 8K. This is not a very good situation to be in, and I do realize that, but how should we approach it? Since leasing a vehicle with 30% 4-year residual is a bad idea, and having so much negative equity only makes it worse, is it a reasonable alternative to finance?
What benefits does financing present us vs. leasing? What steps can we take to get a manageable car payment, while at the same time trying manage the negative equity? On the 2008 Santa Fe Limited, they currently are offering:
$3500 cash back OR $3000 cash back + 0% APR through 36 mo. + 1.90% through 48 mo. + 2.90% through 60 mo. + 5.90% through 72 mo.
What are our options? And, perhaps more importantly, which is the best? I suppose I will settle for just finding out what our options are, though!
#407 of 1295 Re: CR-V vs. Santa Fe [TheQuestian]
Dec 07, 2008 (11:03 am)
I will choose CRV based on Edmunds ratings reviews & fuel economy
2008 CRV Fuel Economy : 22-23 mpg
Editor's Rating : 9.0
Consumer's Rating : 9.2 (186 reviews)
2008 Sante Fe Fuel Economy : 19-20 mpg
Editor's Rating : 7.6
Consumer's Rating : 8.4 (84 reviews)
#408 of 1295 Re: CR-V vs. Santa Fe [bigdadi118]
Dec 07, 2008 (12:00 pm)
I did see that the CRV was rated higher here, but I think vehicles are rated highly for different reasons. One of our main needs will be to haul my 120 lb. keyboard around, and the CRV does not seem best tailored to that kind of heavy lifting (given its slightly underpowered engine). Another important factor was the fold-flat rear seating in the Santa Fe. In chaperoning my keyboard from gig to gig, I believe this feature will definitely prove beneficial.
At the end of the day, I think everyone has unique needs. I certainly think the CRV would be the better choice for a lot of people, but I just don't think the feature set lines up with our situation.
#409 of 1295 Re: CR-V vs. Santa Fe [TheQuestian]
Dec 09, 2008 (9:51 am)
With $8,000 of nagative equity!!!! you better forget about buying a new car for while. It will be cheaper to just sell your car and driver her Rio until it is paid off.
Ask her how she got into the $8,000 of negative equity and you will see why you should not be buying a new vehicle now, or anytime in the near future, unless you have $8,000 to pay off the negative equity.
Figuring that a 3 year old Rio is probably worth about $3500, she must have a loan of $11,500. She must have traded in a few vehicles without any downpayment to arrive to the $20,000 loan 3 years ago. A $20,000 loan from 3 years ago should have about $5,500 on it by now if it were financed for 60 months at 3-5% APR.
A $20,000 loan on a $10,000 car?!?!?!?!?!?
Don't make the same mistake TWICE!!!!
#410 of 1295 CR-V lease - is this a good offer?
Dec 19, 2008 (9:03 pm)
got the following offer in NYC:
2009 CR-V LX Auto
$299.00**x 39 months
12k miles a year
is it a good price?
I'm worried for the 39 month - that would end the contract in Mar other then Dec which usually have better pricing for the new contracts