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Discussion Starter #1
Went to the local honda dealer today. (I am on the east Coast).
Was quoted $31900 for a Silver EXL with RES on the lot ($580 off MSRP).

I asked him to calculate a lease for me with these terms:
36 months
15K/yr
Zero cap cost reduction

He came back with $488/mo plus 7% tax or $525 final payment.
He quoted a 58% residual or $18838 and a 2.2% APR.

When I did a calculation on www.leseguide.com, I came up with apprx $410/mo or around $440/month with tax

How is this possible? Am i getting screwed? You think???;)

Also how much discount off MSRP can I reasonably expect currently. I need the car relatively soon. please help!!!!!
 

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I was shopping for an 03 on lease today as well. My guess is that the interest rate is actually the money factor at .0022 which translate to approximately 5.28%. I was given a money factor of .0021 out in Montana.
 

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Yea, I think you're confusing MONEY FACTOR with interest rate. If the MF is .0022 or so, the numbers add up.

www.leasecompare.com has info, too (all their residuals are lower than the one you quoted, but so is the money factor).

BTW, the money factor MAY be negotiable. Worth trying.
 

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pretty easy to figure out your number is off. Take that selling price of $31,900, add tax and about $450 fees. That's a total of 34,583. Now subtract the residual of 18838 and you come out with $15,745. Divide by 36 and you get about $437. So your number of $440 would only be the case if the lease was completely free of charge. That aint gonna happen. NOw, it does seem to me that $525 is a bit high given current rates and whatnot, but, like was already said, you could negotiate money factor.
 

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Discussion Starter #5
That makes sense! The numbers worl out with a money factor of 0.0022.

BTW what kind of money factors have people gotten in theor leases currently?

Also, how much room do you think I have on the price. Thanks.
 

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how do you figure in money factor anyway? That's something I never did figure out. I'm just looking at that and thinking "geez! $90 in interest a month! ouch!"

Hell, you could finance it for 6 years at very near that amount and owe about $18K after 3 years. So the lease is saving you nothing. All it does is give you an easy out in 3 years .... as long as you stay within the miles (that's always been my problem).

regarding the price, of course you CAN get a better deal. Just look at some of the posts around here. Folks get a good amount off all the time. BUT, if you like the truck and are happy with the price, then go for it.
 

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Here's a link

that may be helpful. It's from bankrate.com

Bankrate.com auto lease

There are two separate pieces that you need to look at.

First, if the dealer is willing to sell sub-MSRP on a purchase, then you should be able to lower the capitalized cost of the car. This will immediately improve your monthly payment by lowering the monthly depreciation.

Second, the lease is simply a financing alternative to a loan. When I bought my wife's car back in 3/03 and looked at leasing alternatives, I was being quoted 0.0016 money factor - but ended up going with a loan from BMW bank @ 3.9%.

You should negotiate a lower cap cost and a lower money factor. Also, you might want to check out online leasing companies. There's no reason why you have to originate your lease thru the dealer (just as there's no reason why you have to take your loan out thru the dealer). Bring in a competitive lease quote and have them beat it.
 

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Lease financing Alternative

Aolleasing.com advertises in the Wall Street Journal. They are quoting $339 for a Honda Pilot Lease.
 

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Discussion Starter #9
I tried to independently verify the money factor of .0022 given to me by the dealer by calling AHFC, but they refused to divulge any information. Their line was "ask the deaker for the info - why would the dealer quote you a higher rate, after all they are a Honda dealer" I was laughing so hard I almost crashed my car! Anyway, that was a frustrating call.

I looked at leasecompare.com and they do not lease any vehicles in RI, NY, CT due to outdated liability laws in effect in these states. I
will try calling local banks to see if they will finance a lease at a lower rate.

The dealer may come down to $800 off MSRP plus accessories at cost for the EX-L with RES, but I know that others have gotten much better deals. (My first choice in Navi). They have no inventory to clear even though it is the end of the model year - hence little bargaining room.

I am almost thinking of waiting for 04 since we are so near but the price will go up and I am sure I will not be able to negotiate much on the 04s either. Not sure what I should do.:confused:
 

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mkf said:


I looked at leasecompare.com and they do not lease any vehicles in RI, NY, CT due to outdated liability laws in effect in these states.

mkf, I can't tell from your profile where you live, but you should be aware that certain states, NY included, hold the owner of the vehicle liable for damage caused by the vehicle. In the case of a lease, case law has been established that the lessor (the company that leases you the car) is the owner.

As a result, the cost of leasing in certain states may not work on the standard leasing models because leasing companies either (1) won't lease cars in those states or (2) jack up the lease rates to reflect the liability they assume for the action of the car lessee.

Try an internet search using automobile leasing to get a listing of online leasing companies. They are used to competing on price.
 
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