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I'm all ears
!!!
1. Already confirmed with finance mgr that they want a 720 Fico EQ Auto Enhanced Beacon. CHECK
2. This is about $500 under Dealer Invoice for this vehicle CHECK
3. Works out to be 65% (residual value) confirmed by Sales Rep CHECK
4. down payment plus inceptions
PROBABLY NOT GONNA HAPPEN
5. All things considered the money factor/rate works out to be .00195 or 4.68% APR. confirmed by Sales Rep CHECK
I have a few questions...
I've put the numbers into a couple lease payment calculators and crunched them.
It appears that the down payment is not needed given the cap cost, residual value, and money factors. Is Honda applying their profit through the down payment? (the dealer will also add their fee of $699) Is there anything I'm missing here? Will the money facor change if I do not offer a down payment?
@Anonymous wrote:Large Print2012 CR-V 5 Speed Automatic 2WD LX Featured Special LeaseOffer valid from 3/1/2012 through 4/30/2012$239.00 per month for 36 months. $2,799.00 (4) total due at signing.Small PrintIncludes down payments with no security deposit. Excludes taxes, titles and dealer fees. For well qualified lessees (1)Closed end lease for 2012 CR-V 5 Speed Automatic 2WD LX (RM3H3CEW) available from March 1, 2012 through April 30, 2012, to well-qualified lessees approved by Honda Financial Services. Not all lessees will qualify. Higher lease rates apply for lessees with lower credit ratings. MSRP $23,105.00 (includes destination, excludes tax, license, title, registration, documentation fees, options, insurance and the like). Actual net capitalized cost $21,087.58 (2) Net capitalized cost includes $595 acquisition fee. Dealer contribution may vary and could affect actual lease payment. Total monthly payments $8,604.00 (3) Option to purchase at lease end $15,018.25. Must take new retail delivery on vehicle from dealer stock by April 30, 2012. Lessee responsible for maintenance, excessive wear/tear and 15¢/mile over 12,000 miles/year for vehicles with MSRP less than $30,000, and 20¢/mile over 12,000 miles/year for vehicles with MSRP of $30,000 or more. See your Honda dealer for complete details (5).1. Already confirmed with finance mgr that they want a 720 Fico EQ Auto Enhanced Beacon. CHECK
2. This is about $500 under Dealer Invoice for this vehicle CHECK
3. Works out to be 65% (residual value) confirmed by Sales Rep CHECK
4. down payment plus inceptions
PROBABLY NOT GONNA HAPPEN
5. All things considered the money factor/rate works out to be .00195 or 4.68% APR. confirmed by Sales Rep CHECK
Did you mean the price includes all fees? The MSRP would never include fees.
@UpNComing wrote:Did you mean the price includes all fees? The MSRP would never include fees.
No that's not what I meant. The MSRP is what it is. I would pay for *all fees as they are factors I can't control in this experiment
.
@Anonymous wrote:
@UpNComing wrote:Did you mean the price includes all fees? The MSRP would never include fees.
No that's not what I meant. The MSRP is what it is. I would pay for *all fees as they are factors I can't control in this experiment.
Gotcha!
The best way to negotiate a lease is the same way to negotiate a purchase.
1. Get the absolute lowest price you can on the car.
2. That's it.
No seriously, you can't control the residual value of the car or the money factor on the lease (that is set by the financing arm), so all you can control is what you set the cost of the car to be. The lower the cost, the lower the payment, as your payments are simply the difference between the residual value and cap cost / term + interest.
The $2999 required (or whatever it is), covers the first month's payment, any necessary security deposit (usually not one now a days), taxes/fees, and the rest is cap cost reduction (aka down payment). So if they require $2,999 down for the deal, a good deal of it is just cap cost reduction to get your payments lower.
@Anonymous wrote:The best way to negotiate a lease is the same way to negotiate a purchase.
1. Get the absolute lowest price you can on the car.
2. That's it.
No seriously, you can't control the residual value of the car or the money factor on the lease (that is set by the financing arm), so all you can control is what you set the cost of the car to be. The lower the cost, the lower the payment, as your payments are simply the difference between the residual value and cap cost / term + interest.
The $2999 required (or whatever it is), covers the first month's payment, any necessary security deposit (usually not one now a days), taxes/fees, and the rest is cap cost reduction (aka down payment). So if they require $2,999 down for the deal, a good deal of it is just cap cost reduction to get your payments lower.
I've heard this as well, that you just negotiate price down. I'm totally out of my element having only purchased one used car when I was 16. But we are going to either purchase or lease a new (or new to us) vehicle later this year. So when you see the lease offers for well qualified lessees that the manufacturers are offering, those are based on a certain price. If you negotiate a lower price, will they translate those offers to that price? Or is that typically a special offer that is take it or leave it?
@Anonymous wrote:The best way to negotiate a lease is the same way to negotiate a purchase.
1. Get the absolute lowest price you can on the car.
2. That's it.
No seriously, you can't control the residual value of the car or the money factor on the lease (that is set by the financing arm), so all you can control is what you set the cost of the car to be. The lower the cost, the lower the payment, as your payments are simply the difference between the residual value and cap cost / term + interest.
The $2999 required (or whatever it is), covers the first month's payment, any necessary security deposit (usually not one now a days), taxes/fees, and the rest is cap cost reduction (aka down payment). So if they require $2,999 down for the deal, a good deal of it is just cap cost reduction to get your payments lower.
LOL Thanks for the tip
!!!
Funny thing is...
Dealership #1 offers the standard Honda lease package
Dealership #2 offers a seperate lease with a lower monthly payment and a lower down payment... I called them and the terms, rate, and vehicle are they same. Aswell as the qualifications for prime rate.
@Walt_K wrote:
I've heard this as well, that you just negotiate price down. I'm totally out of my element having only purchased one used car when I was 16. But we are going to either purchase or lease a new (or new to us) vehicle later this year. So when you see the lease offers for well qualified lessees that the manufacturers are offering, those are based on a certain price. If you negotiate a lower price, will they translate those offers to that price? Or is that typically a special offer that is take it or leave it?
Although this is good for regular purchases leases are a little more tricky. It's nothing to adjust the cap cost to a lower price then the money factor is raised on the back end. Or the dealer requires more money down to increase profits without appearing to do so. Becuase rates aren't advertised like regular APR's its a bit more difficult to know what to ask for.