I’m new to leasing and looking at a very high mileage lease on a 2018 Civic EX Hatch
Here’s what I’ve been quoted…
MSRP: $24,040
Selling Price: $20,983
Term: 36 months/25,000 miles per year
Residual: $10,943.02
$0 Down/All tax and fees into payments
MF: .00124
Payment: $388
I asked what the prepay rate was on mileage since it is 0.15 cents/mile at end of lease, I was told I’m getting less than that, but haven’t seen it in writing. I’m aiming to get below $340 a month. Is that reasonable?
Have you considered financing if you’re going to be that high mileage? In general, this isn’t a great deal…Nothing past the 1% rule is considered a good deal. You’re way past the 1%, although most people aren’t leasing 25k miles. 1% rule is monthly payment/msrp
This presumes you’d only be able to sell a 3 year old civic with 75k miles for $7,000, which I think is probably about right, maybe even on the plus side for you.
That said, I’d never spend $14,000 to drive a civic for 3 years.
I’m not about to say this is a great deal, but I sold an 8-yr old civic with 130k miles for $9,000 in 2015. It was in great condition with service records and I live in CA, but I’d say that most people can sell a 3 yr-old civic with 75k miles for at least $12,000 with minimal effort.
You mind saying which state you live in? I’m in the market for my first lease and I’m trying to figure out how much fees will add to my payment here in California. It looks like the fees bumped your payment up by about $60/month.
That might have more to do with 2015 being a notoriously poor model civic right before they rolled out the new version. Now you got me thinking tho. I just need a commuter car and was thinking EV. Maybe I just need to nab a dirt cheap 2015 civic.
I’m in northeast Pennsylvania. I have considered financing and currently do. The concern with financing is the loss of equity or being upside down over the term. For monthly payment purposes, I would finance 60 months, but would not keep it until there were 125,000 miles. I’d rather the piece of mind of a newer vehicle.
I currently have a 2016 Civic EX-T sedan with 50k miles. According to Kbb, I may have 1 to 2k in equity right now, but I feel as if I’ll keep falling behind until of course it’s paid off. I think the situation would worsen if I were to trade in and finance a new term as well.
According to a sheet from dealer, I’d be at 426 at 60 months with 0 down finance and 388 with 2k down. I’d also be compelled to carry gap insurance in this situation which is another $10 or so a month.
Lease, I’d be 387 for 0 down and 326 with 2k down.
These are out the door prices.
I had them run numbers on another sedan EX-T, but the hatch leases better they said. Sedan was another 10 or so a month. I know LX are lots cheaper, but I’m stuck at this trim.
Yes, it’s a Civic, but we really like the one we currently have and the mpg it provides given the daily commute. I’d take it over the Prius V we had any day.
I think I was once in the same situation as you: budget minded, high milage commute. After a few trial and error, I found the best “deal”/most money saving way is this: buy a base Honda Accord or Camry during year end model change, finance it with a 15% down payment. Drive it for 100K miles for so. In your case, this is only 4 years. Sell it after if you feel like you need a new car. What I found is a Accord LX hold it value better than a top of the line Civic but it offers most of the creature comfort. And chances are, after 4 year 100K mile, an accord will still be in very good shape, you won’t need to change it.
Hack. One of my Accord went to $250k miles. Minimal maintenance. No major repair at all, never broke down. AC still cool enough. And then someone asked to buy the car, I sold it for $1000. I bought it for $17k new. I couldn’t ask for a better/lower cost of ownership experience. If not for the highly motivated buyer, I may still have this car today at probably 300k miles.
Thanks again for your input. I just got back from the dealer. They aren’t doing very will with my 16 EX-T sedan trade with 45,000 miles on it.
With $1144 in equity, they have me at $350 a month out the door (0 down) for 36 months and $368 for 27 months. If I can get them to budge more, with $1,000 more towards it, I’m looking at 325 month at 27 months and 318 for 36 months. I’m considering the 27 month as I’ll be under bumper to bumper most of the time and powertrain warranty the whole time.
Here are the details.
MSRP: $24,040
Selling Price: $20,983
Term: 36 months/25,000 miles per year
Residual: $10,943.20
$0 Down/All tax and fees into payments
MF: .00124
Mileage program: 15,000 with 10,000 per year extra purchased at 0.10/mile
Trade Equity: 1,144.76
Payment: $350
Monthy finance charge is $28.94.
According to their numbers, they are making a vehicle loss of profit of -1,291.76.
I appreciate the input on long term financing, but I prefer that my wife drive something newer and very reliable given how far she travels each day. I would also be looking at higher monthly payments than I am for this lease with little to no equity unless I complete term, which I know that I won’t.
Hello I have never leased a vehicle before. Alot of manufactures are doing huge ease deals but with a big down payment of course. Above I saw a list of details on a purchase of a vehicle. What is considered the residual? And how is that calculated? I personally thought it meant monthly payment amount times the 36 months but noticed it is alot more than that. Ram here at one of my dealers is currently doing a 119 a month 2 yr lease 10K miles a year with 2,999 down… Honda Civic is doing $79 a month 2 yr lease 12k miles a year with $2,995 down. Plan Excludes $27 Title Fee, $595 Acquisition fee and $549 Administrative Fee with first payment due at signing. Does that mean I would have to pay 4,245.00 up front?
