MSRP: 31,200
Sales Price: TBD
Rebates/Incentives: 0 (high mileage lease)
Residual: 56% (15,000) and .10/mi * 5000mi
Money Factor: .0009
Due at signing: TBD
Hello all,
First post here. I just recently looked at a Honda Accord Sport 2.0T Automatic and I was wondering how much MSRP typically is taken off this late in the year. Is it possible to get it 12-14% off? Has anyone achieved this? Ive seen posts here earlier this year where people were getting 12% off in Q1 for touring trim. Now it is Q4 and I want to see what kind of new deals people are getting.
I discovered the car itself was manufactured only a couple months ago, so I imagine that is important to keep in mind. I also plan to do a high mileage lease of at least 20k mi/yr and was given some numbers above. No negotiations yet as I just met and tested this car in person very recently. There are at least 2-3 other cars with the same exact specs within 50 mile radius of me. One of them publicly advertises 7.85% off on cargurus.
Best case: 14% off MSRP I calculated (not the dealer) 315.10/mo w/o gap insurance, wear and tear and upfront fees rolled in. My goal with everything included is to stay below 500/mo. I also prefer the black alloy wheels over the scythe-like wheels, willing to pay extra for that too.
Why would you want to spend $500/mo on a $30k Accord?
Leasing isnât really meant for that high milage driving. Anything over 15k miles/yr gets too pricy for the most part.
Also, where are you getting the .10/mi from? Over milage is usually much more.
Of course I dont want to spend $500/moâŚ$500/mo is my ceiling. I want to be under that amount with gap insurance and wear and tear rolled in, as well as auto insurance. Im aware high mileage leasing is generally bad financial practice, but I like to drive new and I dont want to own a depreciating asset that I might not want in a few years. I would much rather lease even if it is 20k mi/yr 36-months. I was told 0.10/mi above 15,000 mi/yr pre lease or pay 0.20/mi for overages post lease. Although there is a slim chance I may have misunderstood.
Another option given super high resale value of the Accord is to do a traditional lease knowing that you would resell it yourself or even via Carvana for a small amount under residual value.
I am doing that on my 2016 Camry SE that will easily be over my 36k allowance by around 30k miles. I am enjoying the low payment at $166 after tax (with just drive offs) for 3 years and will likely be able to sell it for around 1-2k less than my residual vs paying $4,500 in a mileage penalty at 15c a mile over. Even the penalty only breaks down to $125 a month or so for a net payment of $291 after taxes for 66k miles after 3 years.
Thatâs a decent plan that I have thought about before for Accord leases but it carries some risk. If you get in an accident that goes on Carfax but doesnât total the car you are in trouble. At that point you are either buying it and driving it until you donât have negative equity or taking a bath.
$500 including auto insurance is just not happening. I worked a few dealerships pretty hard and got to 430 with everything rolled in including a 5,000 damage waiver and 18k miles.
I am very pro-leasing, but not at 20k miles/year (or even more) on a vehicle with zero lease specific incentives. An Accord is not a Kia Stinger - The Stinger has MASSIVE lease-only incentives and the depreciation may be incredibly severe, which IMO makes leasing a no-brainer compared to financing. The Accord has NO lease-only incentives and the residuals from Honda seem pretty conservative. Historically these cars are among the best for residual value, and you would be selling it within the current 10th generation body style in 3 years.
What is the difference between financing a depreciating asset and leasing a depreciating asset like this?
Lease: Acquisition fee, disposition fee, vehicle must be returned in pristine condition or you will have to repair it or pay fees, fixed term that limits your options and makes exiting the lease early a hassle AT BEST, overmileage costs $0.20 per mile (or buy miles at $0.10 and essentially light the money on fire if you donât end up using them) - extremely difficult to accurately budget a lease when the miles you drive is variable. Thatâs my problem, some years I do 20k and other years I do 30k due to my job. There are so many threads on this forum with people that drove more miles than they thought they would, rolled the overage into their next lease, then rolled it into their next lease, and soon were driving a base model compact car for $550/mo.
Finance: Tax on full sales price up front that more or less equates acq and disp fee depending on tax rate and how much you finance at what rate, vehicle can be sold at any time in any condition without fees private party or trade-in, slightly higher monthly payment, can get out of it 10 months in or 10 years in.
With the miles you drive that you will need to either prepay for or pay penalties for and need to consider up front, the monthly payment wonât be substantially different between a 36mo lease and a 60mo loan. FWIW, Hondaâs Tier 1 APR on the Accord is actually lower (1.9%) than the lease rate.
Anyway, Iâd urge you to do the math on both options and not just dismiss financing out of hand. Youâre going to pay for depreciation either way, do for yourself what is least stressful and best financially long-term.
Thank you for your detailed remarks. Definitely going to weigh in the buying side to see if it is substantially better or not. Although I feel the cost may even out in the end. One thing about buying I dislike: getting rid of the car. I donât want to engage in the time nor discomfort to sell a car after x amount of years on my own. Iâd never trade or sell used through dealers because I would lose more. Leasing allows me not to worry about it and that Iâm free to keep it or move on once the term is over.
Doesnât Honda already include GAP. Also on the two accords I leased years ago the leases automatically included 1700 damage allowance (could have been 1200 was awhile ago). At 10 cents a mile (assuming he is 99% sure he will use them) I donât necessarily think itâs a bad plan. Try to find another manufacturer that leased better and only charges 10 cents for prepaid miles.
Thatâs understandable. I tend to think the opposite way - that when I finance a vehicle, I will sell it for as much or more than a dealer could sell it for. Thatâs another benefit of financing, you can list a car for as long as you want, be patient and sell it when the right offer comes along. Iâve sold 9 vehicles and have gotten at or above dealer retail value for all of them. But yes it does really suck to deal with the general public, and I do professional detailing on the side so Iâm probably not the ânormâ.
keyword here is âlikelyâ. Thereâs no guarantee. I myself wouldnât get into an assumption-based lease personally but to each their own based on risk tolerance.
Honda includes $500 damage waiver or $1000 if you lease another Honda. I donât know how Honda charges for damages, but that doesnât seem like very much coverage. I believe everyone except for Toyota includes GAP but I donât think thatâs super relevant. You probably wonât ever be upside down in an Accord unless youâre buying at MSRP or driving insane amounts.
The big assumption here that I take issue with is â99% he is going to use exactly the amount of miles he prepays forâ. Sounds like OP drives âat least 20k mi/yrâ which I infer as a big variable.
Assuming the vehicle is driven 20k +/- 5k a year (this is basically me), the mileage cost is a HUGE variable in a lease without a second car to bleed miles off onto - whether you pay for it upfront or not. Honda does max 15k mi/yr leases. On a 3 year driving as little as 45k or as much as 75k, there is a huge risk balance to make between the two extremes:
Prepaying for 30k additional miles over the term = $3000 or $83/mo, could use all of it or none of it and end up wasting $3000.
Prepaying for no miles and end up going over by 30k miles = $6000 or $166/mo. The âreal costâ of this mileage in terms of actual depreciation would likely be somewhere around $2000-$3000.
Personally, trying to plan for this and potentially either losing thousands of dollars in miles I prepaid for or going overmileage and dealing with mileage penalties far higher than what those miles actually cost in depreciation stresses me the f out way more than selling vehicles and dealing with a-holes does, so I finance and save the lease hacking for friends/family/etc.
Yes he could buy it and save a few bucks but does plus or minus a few grand worth the hassle. 300 a month to drive 20k a year and simply hand the keys in at the end sounds a lot easier to me. Also with that many miles driven Iâm assuming the odds of an accident go up which would completely ruin any savings if he owns it.
