Probably gonna lease a 2014/15 Accord V6 EX-L Coupe...total cost of lease?

[scootermaster]

...Just wondering if there's anything I should know about?

I'm tempted to just buy one outright, but I'm not sure I'm going to have the car for very long, and if the total cost of ownership for the lease is within earshot of what it'd be to drive, depreciate, and then sell the car, it's probably worth it to just lease.

Anyone have any tips? Have any pre-established info on the MF, residual, sale price of such a beast?

I'm really just interested in the total cost over 36 months for the lease. I need to drag myself into a dealership to find out, but that just seems like such a pain.

 

[Demo24]

Negotiate first, then tell them you want to lease. The sale price at the end shouldn't change, but having to finance less is greatly in your favor. If you know the money factor and other rough values you can roughly calculate it yourself( call the dealers, and make sure they don't give you wildely different t rates), but that can be hard with taxes. In Georgia they changed the taxes a bit, so I opted to just pay all at once instead of trying to roll it in. I don't remember the exact specifics of the tax changes, but it made it less desirable to lease

 

[exar333]

Negotiate first, then tell them you want to lease. The sale price at the end shouldn't change, but having to finance less is greatly in your favor. If you know the money factor and other rough values you can roughly calculate it yourself( call the dealers, and make sure they don't give you wildely different t rates), but that can be hard with taxes. In Georgia they changed the taxes a bit, so I opted to just pay all at once instead of trying to roll it in. I don't remember the exact specifics of the tax changes, but it made it less desirable to lease

This. Negotiate price and then residual. Sometimes you can negotiate each separately too, depending on the dealership.

 

[iamwiz82]

Residual is almost never negotiable, in fact I have never seen it being negotiable. That rate is assigned by the bank. You can get different residuals between banks, however. Residual will be based on the model, submodel, engine, or even the specific options. It all depends on the bank. and how they do things.

You can usually negotiate the money factor of the lease, only because dealers are allowed to mark that one up a bit.

See the Edmunds lease forums for more information specific residuals and money factors. They are loaded with guys "in the know" who have access to those numbers and will post them if you ask for a specific model, term, and mileage.

A good place to aim is that the lease price should be 1% of the MSRP w/ nothing down towards the cap costs.

 

[exar333]

Residual is almost never negotiable, in fact I have never seen it being negotiable. That rate is assigned by the bank. You can get different residuals between banks, however. Residual will be based on the model, submodel, engine, or even the specific options. It all depends on the bank. and how they do things.

You can usually negotiate the money factor of the lease, only because dealers are allowed to mark that one up a bit.

See the Edmunds lease forums for more information specific residuals and money factors. They are loaded with guys "in the know" who have access to those numbers and will post them if you ask for a specific model, term, and mileage.

A good place to aim is that the lease price should be 1% of the MSRP w/ nothing down towards the cap costs.

Not true at all...

Colleague at work (who has a background in car leasing way back) did exactly this on his recent BMW lease. Not all places will do so, but it's worth a shot. He got his residual up 5 points....

 

[iamwiz82]

Not true at all...

Colleague at work (who has a background in car leasing way back) did exactly this on his recent BMW lease. Not all places will do so, but it's worth a shot. He got his residual up 5 points....

They changed banks then, it was not the dealer modifying BMWFS rates.

BMW Financial residuals are not negotiable. The dealer is not allowed to touch them in any way.

http://www.bimmerfest.com/forums/showthread.php?t=707801

 

[halik]

Total cost ~= (1-residual amortized over)*cost of the car*( 2,400* money factor) * 3 years / 2.0

 

[AznAnarchy99]

They changed banks then, it was not the dealer modifying BMWFS rates.

BMW Financial residuals are not negotiable. The dealer is not allowed to touch them in any way.

http://www.bimmerfest.com/forums/showthread.php?t=707801

They upcharge you on the money factor and fees not residual.

My suggestion is for you to email blast all of the Honda dealers around your area and get a quote. They are not going to tell you the residual/money factor/fees off the bat so keep pestering them to give you all of the information.

You want them to send you something like this

Use that and have all of the dealers undercut each other until they start backing out and you have your lowest bidder.

 

[exar333]

They changed banks then, it was not the dealer modifying BMWFS rates.

BMW Financial residuals are not negotiable. The dealer is not allowed to touch them in any way.

http://www.bimmerfest.com/forums/showthread.php?t=707801

You don't make sense. Changing banks MEANS they are negotiable.

Its not any different than 'changing banks' for the best APR for a purchase. Why only try one financial institution? If the local BMW place isn't willing to try a different bank and negotiate, then try a different one. Not saying it always can be negotiable, but if the dealer is offering a lower-than-expected residual, then shop around.

For many people, that residual is key because it defines the taxable amounts and portion you are responsible to pay for. If you plan to buy after lease, its less important. If you lease a new car every 3 years (for example) its the next most important thing to the purchase price and # of miles.

 

[AznAnarchy99]

You don't make sense. Changing banks MEANS they are negotiable.

Its not any different than 'changing banks' for the best APR for a purchase. Why only try one financial institution? If the local BMW place isn't willing to try a different bank and negotiate, then try a different one. Not saying it always can be negotiable, but if the dealer is offering a lower-than-expected residual, then shop around.

For many people, that residual is key because it defines the taxable amounts and portion you are responsible to pay for. If you plan to buy after lease, its less important. If you lease a new car every 3 years (for example) its the next most important thing to the purchase price and # of miles.

I've never heard of going to someone else to finance a lease.

 

[scootermaster]

Thanks for all the great tips. I've posted/lurked a bit in the Edmonds forums, and luckily I have a friend with access to certain databases who can get me [supposedly] what the "lowest price" a dealer would sell one of these cars for (from the examples he gave me, they were around $4k less than MSRP).

Since there's no real advantage between the 2014 and 2015, I'd prefer the 2014 because they seem to have better incentives ("lease cash" whatever that is.) Do you just deduct those from the price of the car?

I also have my old car, which is a 2001 Accord V6 EX Coupe, which on the bright side only has 95,000 miles, but on the down side has some slight body damage, etc. It's certainly worth more to a dealership who could fix it up on the cheap than it is to me.


Basically it comes down to this: The depreciation of one of these cars is around $8k for 3 years (give or take). If I can get within a few grand of that -- and from my back of the envelop calculations, it looks like it'll be around $12? -- it's worth doing. Otherwise, I might just pay cash for it and sell it when I'm done.

 

[AznAnarchy99]

Thanks for all the great tips. I've posted/lurked a bit in the Edmonds forums, and luckily I have a friend with access to certain databases who can get me [supposedly] what the "lowest price" a dealer would sell one of these cars for (from the examples he gave me, they were around $4k less than MSRP).

Since there's no real advantage between the 2014 and 2015, I'd prefer the 2014 because they seem to have better incentives ("lease cash" whatever that is.) Do you just deduct those from the price of the car?

I also have my old car, which is a 2001 Accord V6 EX Coupe, which on the bright side only has 95,000 miles, but on the down side has some slight body damage, etc. It's certainly worth more to a dealership who could fix it up on the cheap than it is to me.

Basically it comes down to this: The depreciation of one of these cars is around $8k for 3 years (give or take). If I can get within a few grand of that -- and from my back of the envelop calculations, it looks like it'll be around $12? -- it's worth doing. Otherwise, I might just pay cash for it and sell it when I'm done.

Email some dealerships and ask them the exact residual percentage with the lease term you want. They should give it to you.