Hello all - I am currently in the market to lease an 04 and was able to accumulate some details from other threads regarding residual, money factor, etc.

If you leased your 04, could you provide me with your lease specifics (term, mileage, residual, money factor, monthly payment, amount down, etc.)?

Thanks!

 

Honda uses a 2.05 money factor which is equivalent to 4.9%

Figure out the door price (30995+$300 for other stuff)=31295

Residual after 4 years: 55% of MSRP (NOT SELLING PRICE!!!!!) (or so)=18,315

Payment:

Depreciation: 31295-18315=12980
Depreciation Per Month: $270.42

Interest: Money factor*Avg of selling price and residual
Avg of selling and residual: $24805
Interest per month: $24805*.00205=$50.85

Total Monthly payment: $270.42+50.85=$321.27
**Sales tax on top of that**

I'm betting the dealer quoted you around $400 a month. They are screwing you. This is what the lease price should be for a $31000 sale price and the standard Honda money factor and residual. You can substitute your numbers and figure out your price

 

Honda just increased the money factor AND decreased the residuals on the 04s. usually the dealership will mark up the money factor a bit, too about 1/10th a percent or so.

My 3 year has a 60% residual.

Plus, you forgot taxes on that.

 

Actually, if you plug those numbers into the www.leaseguide.com lease calculator, you come up with a payment of about $370 before tax.......

With tax, assuming 6%, the payment is $394/month... So if the dealer quotes around $400 with tax, it is pretty darn close...

Also, take into account that the money factor gets raised .0001 if you choose to have the security deposit waived...

Also, there is a $595 acquisition fee assessed to each Honda lease....

 

Thanks for the replies.

So far I am receiving a consistent residual of 59%, but money factors have been all over the place from 0.00265 through 0.00365!!

Similarly, price quotes on the car have been around $31K through MSRP.

This is my first go around with the area dealers, so I am interested to see how they will react to counter offers.

 

$349 a month with tax. $31,200+acquisition. 15k a year, 48months. $3,349 down with first month's payment.

 

Thanks PilotKD.

 

$737 total drive off

$373/month including taxes

48 month term

12,000 miles per year

This is through American Honda Finance.

Selling price of my MY04 was $30,019

Total Cap Cost $31,360 - assignment fee & tax

Residual $17,521 (based on 53% of 33060 MSRP)

Mileage adjustment added 2% of MSRP or $661 to residual...

 

Thanks Nate.

Here is my best offer so far:

An inbound Sebring Silver with Red/Black Interior for $30,233.50 (including destination), residual of 59% and a money factor of 0.00275 (which includes the 0.0001 increase for waiving the security deposit).

With these numbers, my calculation is as follows:

A) MSRP = $33,260.00 (including destination)
B) Invoice = $29,965.00 (including destination)
C) Purchase Price = $30,233.50 (including destination)
D) Residual Percentage = 59%
E) Money Factor = 0.00275 (including increase for waiving security deposit)
F) Associated APR = 6.6%
G) Lease Term (Months) = 36
H) Cap Reduction = $0.00
I) Acquisition Fee = $595.00
J) Cap Cost = $30,828.50 (C - H + I)
K) Residual = $19,623.40 (A * D)
L) Payment Part I = $311.25 (J - K) / G
M) Payment Part II = $138.74 (J + K) * E
N) Total Payment = $449.99 (L + M)
O) Taxes (5% for Maryland on Purchase Price) = $1,511.68 (0.05 * C)
P) TT&L for Maryland = $120.00
Q) Dealer Processing/Document Fees = $100.00
R) Total Due at Signing = $2,181.67 (N + O + P + Q)
S) Dealer Profit on Purchase Price = $268.50 (C - B)
T) Dealer Profit on 3% Holdback = $984.00 (0.03 * (A - $460))
U) Total Dealer Profit = $1,252.50 (S + T)

Based on my conversations with a friend of mine who works in the Finance Department for a Honda Dealer in suburban Pittsburgh, the 0.00265 is their current "buy rate".

It was very difficult to find a dealer with either the Silverstone or Sebring Silver with Red/Black interior. In fact, no dealers in MD or VA have either in stock currently. I also made several calls to dealers in NJ and PA without any luck.

Steve (Sales Manager at College Park Honda) was able to work out an inbound swap with Fairfax Honda (his Sebring Silver with Black for their Sebring Silver with Black/Red).

What does everyone think? Thanks again for the input.