michaelr

I was just on Honda's webpage, playing with the lease and finance calculator. I remembered the Chicago deals - about 29500 or so. So, I did the lease calculator as follows:

LEASE
2003 S2000
48 Month Term
12,000 Annual Mileage
$337.53
*Lease Summary: Required Refundable Security Deposit $350.00, 1st Monthly Payment $337.53, Capitalized Cost Reduction $3,500.00 to equal an estimate total of $4,187.53 due at lease signing

As you can see, I started at sticker, and took off $3500, to put the cap cost down to 29500 (about). Would this be the way the advertised Chicago deal would work if I were to lease? This is a hell of a deal if it is true. I don't see why it wouldn't happen like this. The question is, is the $3500 off only for purchase, or for my hypothetical lease, as well? Any experience with this? If any of the Chicago-land people have the time or inclination, could you get in touch with the dealership and see what they say? Anyone bought there, or friends with a salesman there?
If this worked, I would fly out and drive back (to PA), assuming no one around here would match the deal, which I doubt they would. Thanks for the help.
Mike

michaelr

I can't find an email address. Their website doesn't have one, and isn't really up to date or useful anyway. Thanks - Mike

turbo_pwr

doesn't work that way, they lease it to you at the full cost not the reduce cost in most instances i have seen

michaelr

really? I would think (hope) that $3500 off is $3500 off, regardless. Anyone else?

hwyengr

From Edmunds.com

"Capitalized Cost: Lease payments are based on the capitalized cost, which is the selling price of the car. The price of the car is negotiable, so you should negotiate this price first, then have the dealer write you a lease based on this cost."

Otherwise, what were (are?) the dealers doing when they mark-UP the price?

Knipper

Your standard auto lease payment is made up of 2 parts. The equations used to get these values are as follows:
Capitalized cost - Residual value / Term = part 1
Capitalized cost + Residual value * Money factor = part 2

part 1 + part 2 + tax = your monthly lease payment

In your scenario above assuming a new S2000 with no options, the sticker minus the $3500 down would be the Capitalized cost. The 48 month residual on this car is generally given as 55%. The interest rates are generally around 5%. So:

Cap cost = ($33,060 - $3,500) = $29,560
Residual = ($33,060 * .55) = $18,183
Money factor = (5% / 24) = .00208

Part 1 = ($29,560 - $18,183) / 48 months = $237.02
Part 2 = ($29,560 + $18,183) * .00208 = $99.31

Monthly payment = $337.33 plus whatever your local sales tax is.

*** If you didn't put the $3500 down your payment would be $416.53, a difference of $79.20 a month x 48 months = $3801.60 Basically you are saving only $300 over 4 years by giving them your $3500 up front. It only takes a 2% return on investment to make this much in 4 years. This is why I never put money down on lease deals.

michaelr

I agree that $$down on a lease is not well spent... But, the $3500 down is not mine. The dealer advertises the new 2003 S2000 for $29,325 (the latest price, per the ad under the "Chicago prices" thread), or approx $3500 off sticker. So, if they're gonna give, I'll take.
Mike

hwyengr

[QUOTE]Originally posted by michaelr
[B]I agree that $$down on a lease is not well spent...

michaelr

Here is the story if I put $29,325 in the "amount financed" line, as mentioned in my above post. I think this includes destination in the price, but no tags, tax, etc...

I don't know how to copy the add, but here is the link to the chicago post with this price.

https://www.s2ki.com/forums/showthread.php?...35&pagenumber=2

Your Results
LEASE
2003 S2000
48 Months Term
12,000 Annual Mileage

$332.08

*Lease Summary: Required Refundable Security Deposit $350.00, 1st Monthly Payment $332.08, Capitalized Cost Reduction $0.00 to equal an estimate total of $682.08 due at lease signing

Estimated Amount Financed $29,325.00

Terms are not available in all areas. Rates and requirements will vary based on geographic location and credit worthiness. Estimated payments exclude applicable taxes, title, registration, license, and documentary fees. Not all Honda automobile dealers participate in these programs. Programs limited to 48 U.S. contiguous states, Alaska and Hawaii. See your local Honda automobile dealer for program details and offers. This is not an offer of direct financing or of any particular lease or purchase transaction. Trade-in values obtained from Kelley Blue Book are estimates and the actual value of your vehicle may vary. The actual value of your trade-in may be higher or lower depending upon the condition of your vehicle, equipment and local market conditions.

Knipper

Looks like a great deal to me. The Chicago prices have generally been less than the rest of the country for a few years running now. New S2000s have gone for the $30K range there in the past, so getting a lease deal based on $29K and change seems possible. Go for it!