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mdxstang - All valid points.
It was deceptive because at 50K I would NOT have put a foot in the dealership. But in the end it did work for both sides... Other than this part, rest of interactions with the dealership was very good and professional.

Finance - I was relieved that it's only 10K I have to finance. I am going to call Acura finance dept. to make sure early payment is ok after 90 days. (According to dealer, MA law allows prepayment without penalty). I also think that Acura is doing this so people would stay longer on the loan and at higher interest rates than banks. I am sure Acura makes good money off of it.
So today I went back with wife to get her take on the car and she also liked it very much. I drove it again and I had the same happy feeling about it as the first drive. With Lexus drive in the morning fresh in my mind I knew MDX sport performance is what I wanted. One thing the guy explained is that sport hybrid has 7 speed automatic with electric motors which is made in Japan. I already knew about the rest of the technology in 3rd Gen MDX.
So that leaves towing out unfortunately. I still have my 03 MDX for that as long as I can keep it going. I am hoping in the next 5-6 years we will purchase another SUV capable of towing.
What tilted me towards MDX was familiarity and the pleasant feeling of the test drive. Pricing was also another factor. Lexus 450H (5 seats) with similar features (navigation etc.) I could not get dealers to go below 48K (that was almost $4000 over dealer cost) vs, MDX with discounts got me almost 4K below invoice of 49.5K.
MDX MSRP was 53.8K , my OTD (including all dealer fees etc.) 45.6K (he gave me Acura all weather mats)
Also not too many 2019 hybrid tech models left in the market (there are plenty hybrid advance models).
I put down refundable security deposit to make a decision by Monday.
 

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Discussion Starter #24
I am wondering if leasing is good for me to change my mind 3 years down the road (I know I can trade in as well).
I have seen postings that leasing terms are supposed to be better because you're paying depreciation and interest.
So for the sale price of 45,592, what would be good lease price and terms? I have never leased a car before so I know very little.
(I am looking at 12K miles/year) 3 year lease.

Than
 

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If you are looking at leasing, for models other than Base, there is a $8,800 dealer incentive, plus a $1,000 Loyalty incentive, so factor that into your negotiations. I can see a dealer wanting to move you to leasing and then not give you the full benefits of his incentive.
 

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I am wondering if leasing is good for me to change my mind 3 years down the road (I know I can trade in as well).
I have seen postings that leasing terms are supposed to be better because you're paying depreciation and interest.
So for the sale price of 45,592, what would be good lease price and terms? I have never leased a car before so I know very little.
(I am looking at 12K miles/year) 3 year lease.

Than
Part of this post was about you wanting to pay cash. Because you didn’t want to jump through hoops on financing. Now you’re talking about leasing,which is even more complicated. You’re just starting all over again. Just buy the car. If you’re tired of the car in 3 years,trade or sell it.
I don’t think any financial analyst is going to tell you that leasing makes more sense in the long run. Unless you are writing it off. Leasing and buying the car after the lease makes even less sense. If you are only interested in lower monthly payments,then what was this whole post about? Less leasing will give you lower monthly payments. Then at the end of 3 years you have nothing. How do you go from paying cash to renting a car? Yes,leasing is renting a car.
“I have seen postings that leasing terms are supposed to be better because you're paying depreciation and interest.” Doesn’t even make any sense.
 

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Discussion Starter #27
Part of this post was about you wanting to pay cash. Because you didn’t want to jump through hoops on financing. Now you’re talking about leasing,which is even more complicated. You’re just starting all over again. Just buy the car. If you’re tired of the car in 3 years,trade or sell it.
I don’t think any financial analyst is going to tell you that leasing makes more sense in the long run. Unless you are writing it off. Leasing and buying the car after the lease makes even less sense. If you are only interested in lower monthly payments,then what was this whole post about? Less leasing will give you lower monthly payments. Then at the end of 3 years you have nothing. How do you go from paying cash to renting a car? Yes,leasing is renting a car.
“I have seen postings that leasing terms are supposed to be better because you're paying depreciation and interest.” Doesn’t even make any sense.
I went with cash + 10K lease to get discounts.
Their lease terms were not great (I would have paid 5K More in total interest and capitol reduction + down payment etc.)
I only looked at the lease to check if it made sense financially and gave me flexibility to trade it in.
But you're right I made a full circle from cash to loan and lease :)

Details of the lease...
MSRP: 53,795
Selling price 42,361
Govt fees $135
Doc fee $595
Cash cap reduction $2995
Cap Cost Reduction $2995
Adjusted Cap cost $39366.0
Total Due at signing $4787.80
Residual Value $28,511.35
Monthly $470.

If I were to do the lease and buy it at the end it would have cost me.
470x12x3= $16920
Due at signing = $4787
+ residual = $28511. => $50,218...

Vs. $45,600.
 

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I second what Elvis wrote.

The bottom line - if a dealer is pushing something, as they often do with leasing, it's usually because they stand to make a larger profit. They have teams of people whose entire job is to set up things like lease programs in a way to maximize profits and at the same time obfuscate for the 'buyer (renter)' the terms such that they don't really comprehend the true ROI cost.

By paying cash you'll know exactly what the vehicle will cost, you'll feel the 'emotional hit' with writing the big check, which is good for helping you decide whether to buy the more expensive versus less expensive vehicle (as opposed to thinking of it in terms of a somewhat higher monthly payment, which hides the actual cost emotionally somewhat), and 3-4 years down the road, when a typical lease term would have been up, you get to have that second 'emotional feel' when it comes to deciding whether to buy another vehicle already given the depreciation hits, and can better decide whether to write more big checks or just keep what you have longer now that it's on the gentler depreciation curve. That emotional aspect is another reason why car sales people would just as soon you either lease or get a loan and make payments - it's easier to talk you into churning vehicles and thus maximize their profitability.

I think you were on the right track at the beginning of this thread with paying cash versus getting a loan or worse, a lease.
 

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Discussion Starter #29
I second what Elvis wrote.

The bottom line - if a dealer is pushing something, as they often do with leasing, it's usually because they stand to make a larger profit. They have teams of people whose entire job is to set up things like lease programs in a way to maximize profits and at the same time obfuscate for the 'buyer (renter)' the terms such that they don't really comprehend the true ROI cost.

By paying cash you'll know exactly what the vehicle will cost, you'll feel the 'emotional hit' with writing the big check, which is good for helping you decide whether to buy the more expensive versus less expensive vehicle (as opposed to thinking of it in terms of a somewhat higher monthly payment, which hides the actual cost emotionally somewhat), and 3-4 years down the road, when a typical lease term would have been up, you get to have that second 'emotional feel' when it comes to deciding whether to buy another vehicle already given the depreciation hits, and can better decide whether to write more big checks or just keep what you have longer now that it's on the gentler depreciation curve. That emotional aspect is another reason why car sales people would just as soon you either lease or get a loan and make payments - it's easier to talk you into churning vehicles and thus maximize their profitability.

I think you were on the right track at the beginning of this thread with paying cash versus getting a loan or worse, a lease.
I was just checking all my options with making sure that lease didn't offer more savings (it doesn't).
I believe in the same way as in less interest I give to bank the better for me :)
I did go with 10K loan (it's legit and people pre-pay, saw many posts on Acurazine) to get maximum discounts on the sale price. It's a Acura thing...

Hopefully I will be hybrid MDX owner in the next few days :)
My other hybrid car is Prius Prime and it's the best thing for in-city drive and commute but not as much fun as this hybrid will be :)
 

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^^ Oh - I responded the way I did because you stated "I went with cash + 10K lease to get discounts. " but I guess you meant to say 'loan' rather than 'lease'.

I hope you enjoy the vehicle when you get it. I really like my 2014 MDX (non-hybrid) and would expect the hybrid to feel even sportier, although I haven't driven one.
 

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You guys are making generalizations on leasing. Right now is a great time to lease an MDX. The dealers lease offer is obviously a lousy offer as he is keeping almost all of the incentive. However, if a customer knows, like I mentioned above, that there is $9,800 of incentives available, you can actually negotiate a better deal than buying, where there is only a $2,500 incentive.

Should have been able to get the adjusted cap cost, including fees, down near 40k. And never pay anything down on a lease. The downside on the current deals is a 5.16% interest rate on the lease. Also not considered is that your 45k (plus sales tax) remains invested (most of it for three years) and you can use income/growth to make lease payments and to write a check for the 28k (plus tax) at the end of three years. Plus you still have the option to hand the car back if you decide you want something else.

Leases are complicated, and you have understand them to make them work. At model year changes is usually the best time to lease.
 

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You guys are making generalizations on leasing. Right now is a great time to lease an MDX. The dealers lease offer is obviously a lousy offer as he is keeping almost all of the incentive. However, if a customer knows, like I mentioned above, that there is $9,800 of incentives available, you can actually negotiate a better deal than buying, where there is only a $2,500 incentive.

Should have been able to get the adjusted cap cost, including fees, down near 40k. And never pay anything down on a lease. The downside on the current deals is a 5.16% interest rate on the lease. Also not considered is that your 45k (plus sales tax) remains invested (most of it for three years) and you can use income/growth to make lease payments and to write a check for the 28k (plus tax) at the end of three years. Plus you still have the option to hand the car back if you decide you want something else.

Leases are complicated, and you have understand them to make them work. At model year changes is usually the best time to lease.
That 45k stays invested when you finance also. But,we have already had that discussion on this forum.
Yes, leases are complicated. Generally,leasing then buying the car makes less sense. When financing,only 2 numbers that you have to know. Selling price and APR.
 

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mdxstang - Sorry, I accidently wrote 10K lease (I meant loan). If you get a chance try a loner sport hybrid or test drive one. Electric motors put torque from speed 0+ so you get smooth power.

wasjr: They didn't offer me a good lease deal. It had to be $4800 cheaper (lower payments, less down payment etc.) for it to break even vs. buying.
To me lease is more complex and gives dealer many places to jack up the total price. If you notice purchase price of $42,361 looks a lot better (shows savings of $11,609) till you add all other costs, in the end for my example it doesn't make sense.
 

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Final update:
I picked up the MDX sport hybrid today.
I live in NH but dealer was in MA (Acura of Peabody) so I had to go there this morning to sign the loan paperwork.
I was afraid they would take an hour to sell me all the extra stuff and warranty etc.
Well she did walk me through all of that but firm no was sufficient, I like that low pressure attempt.
I was out of there in 20 minutes, not bad.
As it turns out loan is better than I thought.
My rate was 3.69% which is tad higher than what I could have gotten at local credit union.

The sales guy drove the car to my house and I went with him to the city hall.
He had all the paperwork and he handled the whole process, all I had to do was write the check to city.

After that he explained me all the options of the car and helped set up default settings and pair my phone.
He had his own ride to take him back to dealership in MA.

Very happy 2nd MDX owner :)

Robert
 

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Final update:
I picked up the MDX sport hybrid today.
I live in NH but dealer was in MA (Acura of Peabody) so I had to go there this morning to sign the loan paperwork.
I was afraid they would take an hour to sell me all the extra stuff and warranty etc.
Well she did walk me through all of that but firm no was sufficient, I like that low pressure attempt.
I was out of there in 20 minutes, not bad.
As it turns out loan is better than I thought.
My rate was 3.69% which is tad higher than what I could have gotten at local credit union.

The sales guy drove the car to my house and I went with him to the city hall.
He had all the paperwork and he handled the whole process, all I had to do was write the check to city.

After that he explained me all the options of the car and helped set up default settings and pair my phone.
He had his own ride to take him back to dealership in MA.

Very happy 2nd MDX owner :)

Robert
Congrats on the purchase.

I was in the same boat like you, wanted to pay off by cash, but was told the deal is only good with finance. I went ahead with it 45K out the door plus all weather floor Mat included. Got the bill from Acura Finance in about one month, log in the system, and just pay off. Didn't need to wait for few months. Save some interests.
 

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Sales tax for DC is about 5.5%, so before tax, you only paid less than 43k? That's unbelievably low.

Sent from my Pixel 3 XL using Tapatalk
 

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OP bought a hybrid Tech. I assume that he bought the same thing. Maybe I am wrong. OP said he paid 45k out of door, but it seems 45k is the before tax price. I am kinda confused. Previously there is a guy who got a hybrid advance for 50k. That is 12k-13k off. I am looking to match the deal. Not sure whether it's possible now that 2019 cars are gone.

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