| moesess |
| What are the best prices people are seeing for leases on a touring w/res? i about to go in and negotiate and am being quoted 515 a month with nothing down on a 36 month lease. I am wondering if thats a good deal? |
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| N_Jay |
quote:
Originally posted by moesess
What are the best prices people are seeing for leases on a touring w/res? i about to go in and negotiate and am being quoted 515 a month with nothing down on a 36 month lease. I am wondering if thats a good deal?
Forget about the $ per month.
How much is the Pilot, what is the rate, and what is the residual?
Will you stay under the mileage limit?
What are the overage miles?
Why are you leasing? |
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| citivas |
If you're leasing through Honda the money factor right now should be 0.00212 and the residual 52% for that model (4WD touring w/ RES) on 36 months (with a $595 acquisition fee from Honda America Leasing). These are not great terms for a new year model in this class right now -- the residual should be a little higher and decline to about this later in the model year cycle. Toyota, for example, is offering a dramatically better money factor on the Highlander right now (0.00001) and a 54% residual on the year-old 2008 model, and even the Mazda CX-9 is offering comparable terms to Honda on their year-old model. Honda should be better with a new year model than Mazda’s year-old one. The money factor roughly translates to your interest rate if you multiple it by 2400. The math gets you to 5.09 for the Honda. Not terrible but not as good as their 1.9% and 3.9% financing promotion.
I suspect Toyota is focusing on its previous year model close out and may improve the lease factors later in the year. Or they are just being more conservative than the competition in their residual adjustment as a result of the substantial slide in used SUV prices in the market right now. Most of these companies are taking loses on the SUV's coming out of lease versus the residual they had been leased with.
As the previous poster says, you should focus on getting them to commit to the sale price as if you were purchasing for cash then base the lease payment calculations on that. Otherwise they will use all the math to obscure the actual sale price and you will be paying more than a competitive rate for the car, or at least the piece of it you are leasing. That said, reserving out the math I'd say your quote is a little high. You should get into the 400's even with nothing down. You might also consider putting at least enough down to cover your fees. Most dealerships will even let you do this on a credit card, which makes sense if you pay it off and get rewards on it.
In determining your purchase price, don’t settle for anything above dealer invoice right now. Some people are doing much better than that but results vary by area. And keep in mind Honda is giving the dealer $2,000 incentives on sales right now, even for ‘09’s. So the dealers aren’t hurting and they want to move vehicles.
Good luck. |
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| moesess |
| im leasing because i dont want a payment of over 700 a month. i will not go over on the miles12000 the apr is the tier one for the highest credit level, the price of the car is 34 and change |
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| citivas |
quote:
Why are you leasing? [/B]
Not speaking for the OP, but I think there's still logic in leasing right now. If you plan to own the car for many years, it makes no sense. If you plan to drive it well over 12 or 15K a year, buy.
But if you think you will flip it at the end of the lease, why not make Honda take the risk on the residual value instead of you? At the moment pretty much no SUV except the hybrids are getting real-world used sales comparable to these lease residual values. Heck, there are one year-old SUV's selling at auction right now for 50% off their new value. That may change in 3 or 4 years, possibly for the better possibly for the worse. If gas spikes again and continues to rise and a lot more hybrid SUV models hit the market in mass by then, conventional used SUV sales may continue to be hard pressed. Even if you decide to buy up the residual later, you can do so. Your math will have been worse than financing from the start, but not by that much. It's a smaller risk than the resale value right now if you are uncertain whether you plan to own it long term. |
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| moesess |
| i am paying the standard fees up front, so i guess you guys think i can get the price down a lil more |
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| citivas |
quote:
Originally posted by moesess
i am paying the standard fees up front, so i guess you guys think i can get the price down a lil more
Assuming you are only paying the fees up-front, so that your net cap cost is the total of the purchase price plus taxes minus your first months payment, your lease rate seems accurate based on my quick math.
$34K and change is a respectible purchase price, assuming this is a 4WD and not a 2WD. There definitely have been some people reporting better in the OTD (out-the-door) thread but your price is over $6K below MSRP and below invoice. You might be able to do better but also don't get caught up in assuming every dealer will match the most aggressive prices people are reporting, often elsewhere in the counrty. |
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| moesess |
| thanks for the help and im getting them to give me the running boards and a few extras for that price |
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| citivas |
quote:
Originally posted by moesess
thanks for the help and im getting them to give me the running boards and a few extras for that price
That sounds pretty good then. The running boards are around $800 list I think... Have fun. |
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