05 Honda Pilot EX - Pending Purchase

[mannyrios]

Hello Everyone,

I recently discovered this website and find it extremely useful. My wife and I are strongly considering the '05 Pilot.

We've visited Honda of New Rochelle and, so far, the experience has been good.

Question: The offer from the dealer is: $420.00 per month, '05 Pilot EX, Smartbuy Program, 42 months, 12K miles per year. With that said, could anyone provide me with any info on the subject of this deal? Is good in comparison to other deals? Or is it comparable to anyone else's negotiated transaction?

Thanks for your help!
Manny

[hobbes]

I'm not familiar with the SmartBuy program, but in general it's the actual price you're getting for the car and accessories that should be the first concern. Once you've decided that you have an acceptable price, look at how good the financing terms are.

[mannyrios]

Hello "Hobbies",

Thanks for the reply.

What is SmartBuy?
SmartBuy is a program that enables you to own your vehicle and lower your monthly payments. The low payment is possible because each month you pay for the portion of the vehicle you expect to use plus a finance charge. At the end of your contract you have several options, including a final balloon payment or the advantage of simply returning your vehicle and paying a disposal fee.

SmartBuy via GMAC

SmartBuy is very similar to a Lease Program. The main difference is the ownership of the vehicle. With a Lease, the Vehicle manufacturer owns the vehicle and it's more of a 'rental'. With SmartBuy, a title is issued with the vehicle owners name and also with a typical bank lean information.

Basically, I am curious to know if the 420.00 was an average monthly on this car. The acceptable price lies more on the monthly with regards to the SmartBuy program. The terms are 420 per month, 42 mths, with 12K a year on an '05 EX.

Thanks again.

[hobbes]

$420 is certainly within the range of typical car payments, but it all depends on the total price, down payment, interest rate, etc. It is impossible to say whether or not it is a good deal just from the monthly payments.

[sfhondapilot]

The keys are the cash price (compared to MSRP and invoice), the money factor, the residual and the annual miles. Get these four pieces and compare them to vehicle leasing sites to see if you are getting a good deal.

Sounds like the SmartBuy program is an attempt to get around states where the "owner" of a leased vehicle is liable for damage caused by operation of the vehicle (New York, for example). By putting the lessee on title and the lessor as lienholder, the leasing companies get out of this liability trap (other companies simply charge a higher acquisition fee in New York).

I suspect the disposal fee incorporates a provision that increases the fee if the vehicle is not returned in acceptable condition.

[BigDogDad]

Originally posted by sfhondapilot
The keys are the cash price (compared to MSRP and invoice), the money factor, the residual and the annual miles. Get these four pieces and compare them to vehicle leasing sites to see if you are getting a good deal.

Sounds like the SmartBuy program is an attempt to get around states where the "owner" of a leased vehicle is liable for damage caused by operation of the vehicle (New York, for example). By putting the lessee on title and the lessor as lienholder, the leasing companies get out of this liability trap (other companies simply charge a higher acquisition fee in New York).

I suspect the disposal fee incorporates a provision that increases the fee if the vehicle is not returned in acceptable condition.

sfhondapilot, you're 100% correct... it's all a liability issue.

mannyrios... Can't comment on SmartBuy but in terms of pricing, for Westchester Cty. carsdirect.com is showing today's price at $27,132, which is $300 under invoice. You can request online quotes thru carsdirect, edmunds and also Honda. If you spend an hour or two online you can save yourself alot of aggravation and hopefully a few bucks as well. You'll be in a much better bargaining position before you even step onto the lot. When I was doing my search I easily got online quotes from Honda of Nanuet, Curry Honda in Yorktown, Brewster Honda (which I believe is connected with Honda of New Rochelle), Mt. Kisco Honda and White Plains Honda. Pricing at that time, beginning of December, ranged from $100 to $1,000 over invoice. Use the prices, go to the dealer you feel most comfortable with, and negotiate your best purchase price of the Pilot. With the SmartBuy pricing you mentioned, $420 for 42 months will cost you $17,640. If you plan on buying the Pilot at the end, the residual price is what you have to keep an eye on.

Good luck.

[saga]

I leased EX on Dec 15. Monthly payment is $265 including tax with
$ 2000 down and no security deposit.

42 Months/12000 Miles

Hope that helps

[mannyrios]

Saga,

That's a great deal!!! Impressed. I decided to hold off. The final numbers would of been $403 monthly with 2K down. A little high for my pocket.

The lease you got is unbelievable. Was that a special they were offering. I wonder if that was just for NJ? Can someone from NY take advantage of NJ deals?

Still shocked at your monthly! Good for you!

Thanks again.

[Hondamatic]

The more complicated these deals get, the more they can screw with you. I went in, I asked how much the car was, I gave them an offer, and spoke to the manager several times. We went back and forth for quite a while, and all I would tell them was I wanted a good price. They want to know about a trade in, you tell them nothing. They want to know if you plan to finance, you tell them nothing. They want to know what you want your payments to be, and this is the big one, tell them NOTHING! Just tell me the price of the car and I'll figure out the rest. I finally got a straight answer out of them on what the car is actually going to cost me including tax and title, and then I sat down and figured out exactly how much interest I'd be paying. From there I figured out the montly payment and made sure they didn't slip anything else in on me. You can't trust these guys with their special incentives.

[mannyrios]

Wow Hondamatic!

Great advice. Thanks!

[colorider]

Originally posted by Hondamatic
The more complicated these deals get, the more they can screw with you. I went in, I asked how much the car was, I gave them an offer, and spoke to the manager several times. We went back and forth for quite a while, and all I would tell them was I wanted a good price. They want to know about a trade in, you tell them nothing. They want to know if you plan to finance, you tell them nothing. They want to know what you want your payments to be, and this is the big one, tell them NOTHING! Just tell me the price of the car and I'll figure out the rest. I finally got a straight answer out of them on what the car is actually going to cost me including tax and title, and then I sat down and figured out exactly how much interest I'd be paying. From there I figured out the montly payment and made sure they didn't slip anything else in on me. You can't trust these guys with their special incentives.

All very good advice. The other standard question is "How much do you still owe on your present vehicle?"

There is a reason why they call this people "stealers"!!!