[swhtech]

My MDX is shipping tomorrow from Ontario, so I went to my dealer to talk about the lease. First of all, it is a Base 182. The only option I wanted was the running boards...the rest are coming from Tim
So, here are the details from the second lease offer they gave me:

MSRP $35,180
Add to MSRP $300 (running boards)
Residual 65%
Residual Value $23,062
Term 36
Money Factor 0.00296 (7.1%)
Initial Cap cost $36,040 ($35,180 + $860 for running boards)
Annual miles 12K
Excess penaly .15 /mile
Cap cost reduction $0
Adjusted cap cost $36,040
Base Monthly rental $535.44
Sales Tax $991.22
Total Payment $562.21
Reg/Title Fee $767
Security $575
Misc Due $550
Amount due at start $1,931.71

First of all, should the residual be 65%?? Second, the rate is high...they started at 8.6%, but came back with 7.1%...still seems high. Also, it seems like Reg/Title is very high at $767. They claim the $550 under MISC due is the acquisition fee. I need some opinions on this lease, ASAP. Should I look at a third party leasing company?? Thanks for your help!!

 

[lithe67]

checkout www.leasecompare.com that's who I'm going to use, just got my VIN today. expect delivery next week.

 

[TheWorm]

Confused why u say "add $300 for running boards" @ the top, yet the cap cost reflects (and therefore u pay for) $860?

$433, no tax, free shipping from Tim, and 90 minutes for an easy install yourself. Why's the dealer doin' it?

Residual looks about right but you might do better on the money factor.

 

[swhtech]

lithe67,
Are you getting your vehicle from a local Acura dealer, and leasecompare pays for your car in whole to the dealer, and you sign the lease with them??

Worm,
I believe the $300 add is actually added to the residual value, and the 860 is added to Cap cost, therefore I pay for $560 of the running boards.....860 - 300 = 560....does that sound right??
I am really weary of this lease, I tried to run some of these numbers once I got home and some don't make sense.....for example, the tax rate is 5%......it should figure like this:
Base payment: 535.44 x .05 = 26.77 tax per month. They have a total tax amount of 991.22, which would be 37 months of tax, and it actually doesn't match, it's off by a dollar or two. Also, I can't figure out how they came to the amount due at start. The dealer was really cocky with me.....was hinting around that if I bought more accessories they would be more willing to negotiate the lease....pissed me off!

 

[Markedoc]

Is there a reason why you are leasing? Have you considered a purchase? Purchasing certainly seems simpler.

 

[RGWomack]

They will only residualize part of the running boards, so part goes to cap. The money factor is a little high, should be back in the 6% range. Remember, it is the F&I persons job to make money on the back end, if they can pick up an extra 1 or 2k or more on the back end they will. You need to check what money factors are at other lenders, Chase, BOA, etc. Usually when F&I is confronted with the money factors of another lender they will try to match it if they can. Do not go in and make up rates or money factors to see if they will match them, they always have a Roberts report at their desk that gives everyones rates so they will know if you are on the bluff, know what money factor you can get.

 

[texrb]

use this lease calculator

swhtech,

Here is an excel file you can use to help you calculate the lease. For your convenience I input the data you posted. If you want to see what impact a lower money factor has on your price, simple change the number. Anything in "blue" can be changed; any numbers in "black" are calculated by a formula

Hope this is helpful.

AHFC does have an origination fee of $550 (misc due), however there generally is no security deposit with their lease (not with mine anyway back in Oct '01, nor any other AHFC lease I have done)

The tax being off a $1 or $2 over 36 months is probably due to rounding of fractions per month.

 

[DaleB]

If you lease only to afford an otherwise unaffordable car, it might not be the wisest way to go.
Better to save for a fat down payment and enjoy the benefits of ownership.
The only real advantage I can see of leasing is if the down payment you would use for purchasing a car, is making lots of money for you through investments.

 

[RGWomack]

Leasing can be a real advantage for some people. If a person plans on getting a new car every 3-5 years you are always making payments anyway, with a lower payment. You have a guaranteed residual or value regardless of what happens to the economy. How many times have you bought a vehicle and when you go to trade it in your vehicle is worth thousands less than you thought, its guaranteed on the lease if its worth more at the end and you want to keep it, you can, if it's worth less you can walk away, you can trade it or sell it just like a buy. None of these cars are an investment, on a purchase or a lease you are the registered owner, the bank is the legal owner until its payed off. On the purchase you finally get the title to something you probably don't want anymore anyway and you have no control on the trade-in value. The new leases are much better than they were years ago, you know not only what you are paying but guaranteed what you will get. If you keep your cars forever leasing is probably not the way to go.

 

[dakster]

My only input is that your down and monthly payment is equal to mine and I have the base with NAVI...

Although you are doing a 36 month and I am doing a 48 month lease.

Try a place called weleasebytel.com. I almost leased from him, but the dealer had one I wanted quicker and the dealer matched his rates, which they orignally were higher. I see in his ad in Autoweek that he has an MDX available...

Good luck and shop around!

 

[DaleB]

'Forever' is different for everyone. For less than 5 years of ownership I agree, you may reach a point where purchasing is not really a saver over leasing. But I doubt if it ever is less beneficial to own with the exception of having to put more money down to keep payments at bay.

Again, the MDX is one of several cars it is worth arguing about as the resale value looks good which gives it an advantage in leasing, as well as an advantage to the owner that wants to sell later to a private party, or even use it as a trade-in. The leasor as well as the owner will benefit in that case. Except the owner of a well maintained vehicle can even have that advantage for longer than 5 years.

There are other details like ordering like you want, making changes to the car which are not 'factory', exceeding the annual mileage, etc.

I guess if we were rock stars we could walk into the showroom with a checkbook or cash, and this would not even be worth discussing.

 

[swhtech]

texrb:
"AHFC does have an origination fee of $550 (misc due), however there generally is no security deposit with their lease (not with mine anyway back in Oct '01, nor any other AHFC lease I have done)"

Can someone (RGWomack) confirm that there should not be a security deposit on an AHFC lease? Is that where the additon of the .0001 to the lease factor comes in, or is that the origination fee?

RGWomack:
"You need to check what money factors are at other lenders, Chase, BOA, etc. Usually when F&I is confronted with the money factors of another lender they will try to match it if they can. "

How do I find this information? Is it available on their websites without having to go through the whole lease application process with them?? I feel powerless in negotiating with the dealer....any help with these questions is greatly appreciated!!

 

[RGWomack]

swhtech,
The AHF lease book says there is, we just add it in on the money factor as a rule of thumb.

As far as how you get the money factors, AHF does not supply the public with the buy rates, I don't know if Chase or BOA does either, you might give them a call.

I am no longer employed with Acura so I don't have that information available anymore. I enjoy the org site so I'll be hanging around. You folks have been great, I'll always give you the straight scoop, and answer any questions I can.

 

[renov8r]

...I am no longer employed with Acura so I don't have that information available anymore. I enjoy the org site so I'll be hanging around. You folks have been great, I'll always give you the straight scoop, and answer any questions I can.

WHAT'S UP???

Switching careers or just dealers?

Tell us more, please.

Good luck too!

 

[MrPrescott]

This doesn't seem very out of line to me. My lease is 48 month and therefore has a lower residual. With 0 down on a base with $1000 in options, a little better rate (closed in Nov when interest rates were lower), my payment is $525.

One thing I wish I had tried was to negotiate the residual up based on the options I added. Oh well, I plan to buy the car with cash at the end of the lease.

 

[scottnorm]

I just completed the process, and guarantee that nobody has researched the subject more than me. I purchased all the software programs and negotiated left and right. Due to its high residual, I opted for a 5 year lease at $428/mo allowing 15k year. If you want the best lease deal on an MDX, you have to go to leasespecials.com. There is simply no better deal.

 

[DaleB]

I went there scottnorm, and that looked darn good.
Here are 3 questions I emailed to leasespecials.com

maybe you have some answers..it may vary by state:

1) When you talk about tax + license, is that tax against the total purchase price of the vehicle, or is some of spread out over the term of the lease?

2) Do you arrange the delivery of the vehicle, at a dealer I choose, or? (Bay Area, Calif.)

3) Am I allowed to add factory authorized (dealer or reg. owner installed) accessories?

I would certainly think 3 is a given, since it's value added.

 

[scottnorm]

Ask for Jennifer Baker. They will lease in any state (I am in Texas). You can negotiate directly with the dealer (I managed to get $500 off MSRP). Leasespecials will ask you for your salesman and will touch base with the salesman to cut the deal. They really move fast for you. I was approved and the bank made contact with me within hours. You pay full tax on purchase price up front (which is standard) unless they will agree to lump the tax into your financed portion to make a truly 0 down lease, but I don't know if they'll do that. I purchased the leasewizard program and found that there simply is not a better option available. The dealer did not even come close. Good luck!

BTW, this is the most incredible utility vehicle I have ever owned (and I have owned many). You won't be disappointed.

 

[scottnorm]

And yes, you can add options, which will increase your payment based upon the money factor and ALG residual. If you haven't done so already, you also need to spend $29 and purchase the leasewizard program. It is invaluable, as dealers and lenders are sneaky when it comes to hiding fees.

 

[DaleB]

Thanks for the info, it is invaluable. I get 5.25% up to 84 months at my credit union on a purchase, so still working the figures.
It is close to a washout, as I plan to keep the vehicle for a long time. Well, past 4 or 5 years anyway.
The big difference is how much money I need available now or in the future.
If I decide to lease, will definitely get the calculator.

I am considering the Base + Navi and add the accessories as I need or want them (form hondacruaworld.com)
First I will be talking with a recommended dealer tomorrow about availability, etc.

Jennifer answered my email, and said the tax is calculated on the monthly payment only, so that does not sound the same as the purchase price. ?? As my total monthly pyts. are about half the price of the vehicle.