Thank you so much.
In your expert opinion, what would be selling price if you had to run numbers in reverse-
a. MSRP - $28365
b. MF - 0.00092
c. RV - 55%
d. Incentives - $900 lease cash + $750 Loyalty
e. Total Fees - $700 (Dealer Doc fee + reg)
f. Acq Fees - $595
g. Lease term 36 months and 12k miles
h. NJ sales tax on lease is 6.625%
i. zero down and first month as sign-off amount
k. Targeting $290 per month
Thank You so much for your guidance so far.
You didn’t tell me what the DMV fees are which I believe are non-taxable. However, not knowing what they are, I capped the entire 700 in the lease and treated this sum as taxable. The reverse-engineered sell price, targeting a 290 payment including tax, is 24,311.00. That translates to a 4,054 discount off the MSRP. My guess is that you can do better. Here is my spreadsheet…
Is that for 1.5 Accord sport or the touring?
EX sedan based on msrp
Awesome…will check your worksheet once I reach home.
DMV fees are usually around 300 max from various quotes I received so far and dealer fees around 400. Hence I mentioned 700 as total in fees.
Thanks,
Santo
This is for 2018 Accord EX. I wouldve taken the Sport if not for the oversized 19" wheels. I wish they had kept those as optional.
I just test drove a 1.5T ex and i like it. Looks like the MSRP - $28365. I was quoted 1500-1600 due at siging which includes tax/title etc and Monthly 300. I know i do not have a lot of details but is that the going rate for EX?
I didn’t price any Accord EX-L’s but I can tell you all my payments factored in on a 36/10k on the Accord 1.5 Touring came to $295, you are looking at $340 a month and they bought back about $800 worth of lease payments on my last lease…this was in December when the MF was 0.00092 money factor now is 0.00072. and there are incentives on the trim you are looking at. My MSRP was just a hair under $36,000
Shopping for a new 2018 Accord touring 1.5L. This was the first attempt at negotiations in person. I am perplexed as to what is going on with this worksheet. I am looking into a Single pay lease and asked for the 36months lease as well to compare. I knew enough to know that something was definitely off with this first attempt and moved on to a quote for a Demo 2018 touring 1.5L with 3200 miles. I learned of the 2018 lease deals and unadvertised cash incentives for the 2018’s and specifically the touring 1.5L in January, I started to realize that I may be wise to seek advice as to how far down is reasonable to expect. I didn’t get a new worksheet for the 2018 demo quote as I was just told how much the sales manager would go to earn my business. Started at in the $20’s then down to $18,000 out the door for 18k miles single pay lease. (Do not yet have final selling price for the demo) Day 3 of negotiations have gotten down to $16,100 single pay, 18k miles. I have been seeing what others are getting for standard 36 month leases with 12k miles in $300 range. Any feedback would be great. Sorry hijacking this post. I can redirect if needed.
So as far as I understand this appears to be a very bad deal!
This is what I extracted, and please correct if I misunderstood anything at all!
**MSRP: $34,675
**Selling Price: $37,858
**Additions to Cap Cost: $1,152 (Doc Fee, Acquisition Fee, License Fee, Cap Fees)
**Rebate: $0
**Down Payment: $0
**Monthly Payment (equivalent): $654.16
Months: 36
Annual Mileage: 12,000
**MF: 0.00072
**Region:**Kentucky
From my experience, this is the deal the dealer brings to you when you walk in so he can tear down your confidence to hose you with an inflated price in the end. If you got to this after negotiation, I would just go to another dealer because this one clearly doesn’t care to sell this unit by the looks of it.
A few questions:
Why is the selling price MORE than the MSRP if there is a “discount” of $3,183? This is a discontinued model for 2019 (i.e. moving forward Honda will only make the 2.5T Touring), so the dealer should be motivated to move this model even more so than others. From what I can gather, they’re discontinuing the 1.5T Touring is because when people get to that price point, they don’t want to put up with the laggard, sluggish engine of the 1.5 (SERIOUSLY!!!) and would rather just spring for the 2.0 (kind of like how you don’t find an S class with a 4 cylinder). While you probably don’t care for the seriously underpowered engine, and would just want the lower price it can get you, make sure you get the dealer to understand why he needs to lower the price drastically for you. Also do take into account that we are now well into 2019, and the 2018’s for all Accords (not just the discontinued) sitting on the lot are going to start diving in value really soon if they have not already!
Why do I not see any rebates in here? There should hopefully be at least something from Honda. A good resource to check out for rebates in your area is the Edmunds forum, where they can tell you what you get in your region.
Why are you looking at a single pay when the money factors are so low for leasing right now? Your money would be better spent BY FAR if you simply did the monthly lease, and instead put your money into a high interest savings account (Marcus by Goldman gets you 2.25% vs the 1.73% Honda will charge you for the lease). This also protects you in case of your car being totaled before lease end as GAP will cover your liability.
What you have here is you’re paying Mercedes money for a Honda. No other way to look at it tbh. Unless I’m missing something, which I fear I seriously might be in this case because the deal is laughable from how I understood it, your best option is to cut all the bs with the dealer and ask them to seriously give you real numbers. Otherwise, be prepared to walk away and shop around with other dealers in your area.
It was not a good deal at all. That’s why I stopped it right there and moved to something else. I agree about the inflated price was exactly the attempt you described. As I knew there were unadvertised incentives for leasing 2018’s including the touring 1.5L of $2900 and then some. The other add-on’s were for the appearance package and so on. I just can’t understand the rationale of the calculations on this sheet. I didn’t get the odd way the discounts and selling price were figured either.
Now I am on negotiations with a different accord 1.5L touring with the same dealer. It’s a 2018 accord touring 1.5L Demo 3200 miles. Gotten down to $16100 single pay 18000k/yr. The initial benefit to me for the single pay vs. the 36months is the $1542 savings from a better money factor and tax.
Knowing the way the first deal was inflated, how far I’ve gotten them down on the second vehicle, plus the deals others have gotten for the same car, have me wondering how far I can go. i will push till I get no more from them but what is realistic. Thanks for the info
Why would you shop the same dealer that would mark up a 1.5T Touring 3k?
I am a glutton for punishment and have no life! 
It isn’t marked up 3k anymore and hopefully with my further research and some great advice and the plethora of information in this forum, I will come out ahead. If not then I will move on. The great thing is that I am smart enough to know not to make a move on something until i know it’s the right deal.
Thank you for confirming my assumptions! I agree the price they’re giving you is still too high for the demo, but would like to touch on a few points:
Regarding the single pay, your effective interest rate is 0.02%, which is close to 0%, as it should be because you’re paying everything upfront (i.e. de-risking the transaction entirely). However, the normal money factor translates to 1.73%, which is effectively free money when taking inflation in account. Furthermore, if you stuck with the simplest alternative (i.e. stick the money in a high interest savings account and make the payments from that), you can easily get 2.25% on the cash, which puts you at a profit of 0.52% while also maintaining your liquidity. Tax wise, the tax should be assessed on your monthly payment in Kentucky, where the difference will be trivial. Financially speaking, I cannot see why you would choose a single pay lease for this vehicle given the circumstances and would recommend you look into the possibility of a normal lease instead!
I see you want to do a term with 18,000 miles for the demo. While I certainly understand you may drive a lot (who doesn’t, right), I feel leases start to get less attractive as you push past 15,000 miles per annum. If it is at all possible to reduce the miles, I would highly recommend you go with that part so you can get the numbers far far lower! Otherwise, it might be worthwhile to look into purchasing the vehicle, where I believe Honda does also have some nice incentives available, and then maybe just selling it when you want to trade up in the future.
In any case, I would definitely grind a whole lot more to get at minimum an additional 3k out of the dealer, but actually a whole lot more than that 
. Perhaps if you get quotes from other dealers, they might be more aggressive than the one you’re presently speaking with. Just my two cents. Best Regards!
Hahahahahaha they put a $3k markup on a loaner that is usually discounted 15%+ when new?
This was the point I was trying to make.
$16,100 for a 36/18 for a demo???
I really can’t believe the numbers people are getting for this car . How could you possibly play numbers with a dealership that is already taking advantage of you…that comes out to $447 a month, you could get a demo C class or BMW 3 series even a Q50 with money to spare…I would say let’s sign the deal and as I got the salesfool more excited I would laugh in their face and walk out…
That demo 1.5 should be no more than $300 with 18k miles a year…
This is a perfect example of how dealers wind up with 2-3 year old brand new cars on their lots. They don’t have any impetus to get rid of these things because they are not accounting for the cost of the vehicle sitting on the lot every day. Stay away from dealers like this, you’re wasting your time.
