Honda Pilot - Honda Pilot Forums banner

1 - 10 of 10 Posts

·
Registered
Joined
·
12 Posts
Discussion Starter #1
I am in need of replacing my wife's 13 year old Honda Odyssey. Likely with a Honda Pilot.

Right now they are offering .9 or 1.9% interest, depending on term. I'd love to get zero % as I see many other brands doing that in the midst of the present crisis. And for us money is tight.

Any predictions on what rates Honda might offer in June? And if you were looking to buy a new Honda car over the next few months, any suggestions on how and when to get the best price? Thanks.
 

·
Registered
Joined
·
91 Posts
I am in need of replacing my wife's 13 year old Honda Odyssey. Likely with a Honda Pilot.

Right now they are offering .9 or 1.9% interest, depending on term. I'd love to get zero % as I see many other brands doing that in the midst of the present crisis. And for us money is tight.

Any predictions on what rates Honda might offer in June? And if you were looking to buy a new Honda car over the next few months, any suggestions on how and when to get the best price? Thanks.
Instead of betting on lower interest rate, I'd try to see if there is any MY19 left. There should be some good discounts on those.
 

·
Registered
Joined
·
73 Posts
Don't delay solely for 0%...It is very unlikely Honda will offer it.

Just to bring some analysis to bear: Your total interest paid for a 100% financed fully loaded Elite (~$50,000), according to this calculator will be:

~$1,153 @ 0.9% 60 Mo @ $853/Mo
~$2,944 @ 1.9% 72 Mo @ $736/Mo

Thats free money, and you should easily save that much money when you negotiate the price for your car. Assuming you can make the monthly payments, take the 0.9% loan, invest as much of that $50,000 as you can in a decent mutual fund right now, and in 5-6 years you'll be much better off. Borrow less to keep the payments in check, and its still worth it.

Get the best price by playing dealers against one another and exclusively dealing with them via email until you have a final out the door price. Excellent guide here: 2019 Honda Pilot Actual Price Paid thread.
 

·
Registered
Joined
·
124 Posts
Any predictions on what rates Honda might offer in June? And if you were looking to buy a new Honda car over the next few months, any suggestions on how and when to get the best price? Thanks.
My view - interest rates are not going any lower unless we have a devastating second/third wave of Covid this winter. Car loan rates from manufacturers probably arent going much lower unless we have a real depression.

Fall is model year changeover but I have not seen great Honda deals then unless you want to buy a low demand vehicle in November - like a red Ridgeline or a white Civic LX.

Have you looked at used? I personally buy new and keep to 200,000 miles, but I know some people who have been pleased with buying off lease Hondas at 36k miles. You lose initial warranty and lowest Honda financing.

Idea for best deal - done this for last 3 cars purchased new.

Decide exactly what you want - color, year, model, trim level, etc. Write a one sentence description - 2020 Honda Pilot Touring, 2 wheel drive, second row captains chairs, tafetta white, whatever wheels, no dealer accessories, etc. Visit a dealer, do a test drive, etc. Tell them you are starting process, will include them when is time for specific offers.

Do not get emotionally attached to the new vehicle or rushed in the process. This is a business transaction. Prepare yourself to have to say no or delay the process to get a better deal. If your take 4 hours of work to save $1000, you make $250 an hour, almost as good as a stripper.

Check out local credit unions, join one, get a loan rate preapproved. May not be as good a rate as Honda but it is your backup plan. Also consider doing same with another commercial bank that you may have a credit card with - Chase can be competitive if you have high credit score. Do their application to get preapproved and a rate offer.

Do the Honda finance preapproval application. This will give your APR and Honda will honor for several weeks. https://www.hondafinancialservices.com/finance/applying

Figure out what you are doing with your old vehicle. Do not trade it in with the dealer. You want the old vehicle sale to be a separate transaction from the new car. They give you a deal on tradein and then hose you on the new vehicle price or the loan.

The dealer makes money five places:
trade-ins
new vehicle sale price vs invoice price (you can find out that price)
Honda volume kickbacks and incentives (used to be called holdbacks - $x per vehicle sold that month, etc - private info - they can sell at invoice and still make profit)
finance commissions (percent of loans they book - private info)
add-ons and extras (floormats, accessiories, all that BS you dont need or can put on yourself)
probably something I dont know about - ha ha

Figure out the 8 or 10 closest Honda dealers, including several in secondary markets and smaller cities/suburbs in the area. Email your spec to them, ask for firm price out the door, with all taxes and fees itemized. Ask them to quote your spec but also propose alternatives. Tell them you are preapproved for Honda financing.

You will probably get the best offer from smaller city/suburb dealers. Big ones with lots of drivein traffic are not competitive for internet sales. The smaller guys with less traffic will locate a vehicle and transport it for a sale. They may quote similar alternative, you just need to do an apples to apples comparison.

Rank your offers on price versus invoice price. You can get invoice price from How to find TMV & Invoice Pricing on Edmunds

Pick your lowest price. Tell the dealer the Honda finance offer you have, ask the dealer if they have any better offers.

You can do the sale and finance paperwork at the dealer or have them come to you. I have done one at home, one at credit union breakroom. They deliver vehicle, you sign, leave copies, and leave.

If you like to waste all day haggling in a dealership, knock yourself out, but I have gotten competitive pricing all 3 times. You have to be specific with what you want - year, color, trim, etc so,that the deal is framed. Otherwise there are too many to choose from.
 

·
Registered
Joined
·
12 Posts
Discussion Starter #8
Thanks everyone for the helpful advice! We have found the vehicle and I just committed to it. What a huge range of numbers were offered by the 6-7 dealers I reached out to, and for the trade in of our Odyssey. We are getting it for about $6,500 under sticker. Feels like a great price at a dealer I am very impressed with so far.
 

·
Registered
Joined
·
124 Posts
Thanks everyone for the helpful advice! We have found the vehicle and I just committed to it. What a huge range of numbers were offered by the 6-7 dealers I reached out to, and for the trade in of our Odyssey. We are getting it for about $6,500 under sticker. Feels like a great price at a dealer I am very impressed with so far.
Check the tradein offer against:

I have found their numbers to be very representative of market values. Kellys seems to be for insurance valuations.
 

·
Registered
Joined
·
73 Posts
Thanks everyone for the helpful advice! We have found the vehicle and I just committed to it. What a huge range of numbers were offered by the 6-7 dealers I reached out to, and for the trade in of our Odyssey. We are getting it for about $6,500 under sticker. Feels like a great price at a dealer I am very impressed with so far.
Excellent! I'm stoked for you! Enjoy your new ride! If you're comfortable sharing, what did you decide to do about financing?
 
1 - 10 of 10 Posts
Top