2018 Honda CR-V Touring AWD Lease Deal (Not) Seeking Your Advice

Just goes to show you how long it takes to recover from the damage of the junk the American manufacturers put out in the 80s and 90s. <<

Yes indeed, I remember reading a report about 10-15 years ago that American car quality had caught up to Japanese quality (all makes EXCEPT Toyota), and any differences in car quality between domestic and imported brands was GONE when the car hits 8 years old. Toyota, on the other, over-designs every single part by 10% to get who-knows-how-much (maybe 50%?) more lifespan out of their cars. So Toyotas are heavy, and slow, and to get good mileage they are cramped inside, but they don’t break. During the golden era of the Japanese Auto (1975-85), the Japan Yen was 250 to the dollar (Why is the Japanese Yen Still Rising, despite Bank of Japan intervention? | Forex Blog ~ now it’s more like 106 per dollar). In the golden era the Japanese manufacturers could dump imports on other countries like the USA with way more engineering and manufacturing care put into their products … but not now.

He said that MF rate he quoted is for the first three tiers of credit all the way down to 710. He couldn’t explain why Dealer #1 offered a MF of .00255. I told him there was no way I was paying that kind of interest and thanked him for his time.

I was going to say that with Trump spending like drunken sailor for his tax giveaways to the Rich, the US dollar might depreciate 5% annually and so the japanese manufacturers might have to charge 5% above home-country interest rates just to break even. However, the CR-V seems to be made in Alliston, Ontario, Greenberg, Indiana, and Anna, Ohio. So I’m stumped about why you MF is so high … Perhaps it’s from expected appreciation in the Canadian dollar?

Perhaps if you go to a domestic broker you can arrange a much more favorable interest rate? Did you ask the dealer about a one-payment plan (maybe put it on a HELOC?)

Everything you are saying is making 0 sense to me. The MF is high because Honda would rather sell them tham lease them and there is no need to subsidize the interest rate. Makes more money with a high MF. A domestic broker? What even

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According to the new car manager, Honda discourages leasing on the CR-V. They don’t want a bunch of them being turned in 3 years later. Not sure if that’s accurate. He also said that Honda doesn’t need to offer many discounts or incentives on that model due to it’s popularity.

As for paying for it with one payment via a HELOC or any other way, I am only interested in leasing my vehicles for several reasons.

You could lease a 50k MDX for that price

from edmunds .00220 MF but that is exl did not see touring.Over all thought there is crv and accord currently are not leasing good.

He’s right…basic supply and demand principal. If people are buying it with few incentives, why throw money out the window? If sales slow, then they would add additional incentives to push it.

If Honda didn’t want to lease the car they wouldn’t offer leases on it. I had a base CR-V that I leased in 2014 that I was paying $260 a month sign and drive.

Also, just a word to the wise: If they ever tell you that they “made a mistake” that means they lied. Notice how the “mistakes” are never in your favor. Move on to the next dealership. There aren’t a whole lot of honest ones, but they are out there.

We moved from the CR-V to the Equinox and the CR-V was a better vehicle for sure, but saving $100 a month trumped the benefits. The CR-V had better handling but the Equinox has a quieter interior. The AWD on it was worthless and I’ll never waste money on that again. I get better handling in snow with my Civic Hatch than I did in any of the AWD SUV’s I’ve ever owned. If you think you need AWD, get FWD and winter tires.

Here is the final update:

Today, the new car manager calls and proposes his “best” deal on the 2018 CR-V Touring AWD:

36/15

RV: 58%
MF: .0022 (5.28%)

Selling price: $34,900 (up from $32,949). When I asked about the $2000 increase, he replied that Honda requires him to add certain accessories to most of his vehicles such as splash guards, cargo nets, paint protection, etc… and that increases the final sticker price due to dealer added accessories. He said he was discounting the vehicle $1000 resulting in the $34,900 selling price.

Payments: TT&L plus “fees” rolled into the lease with just 1st month due at signing: $605/mo.
TT&L plus “fees” due at signing: $555/mo.

I told him there was no way I was paying that selling price, MF and those payments for that vehicle. In fact, I actually told him that is the equivalent of paying $6.00 for a can of Coke. Not gonna happen.

And, I told him that I didn’t appreciate him just now mentioning there were dealer added accessories which ultimately raised the selling price $2000 over the quote the other day. What he did was lower the MF a bit, but more than compensated by increasing the selling price. In this case, the selling price impacts the cost of the lease more than the higher MF.

And, that was the end of the conversation. I told him we were way too far apart on the numbers. Honda is a good car and I like the CR-V, but I’m not into being price gouged. So, there will be no CR-V in the driveway.

Normally, I’d call every Honda dealer within 200 miles to get the deal, but I really think that would be fruitless with this model.

Honda offers no incentives and ridiculous MF’s and the dealers barely discount the vehicle so I’m convinced that there really is no feasible way to get a solid lease on the CR-V regardless of which dealership is contacted.

Several years ago, for example, I literally contacted 11 regional BMW dealerships to get a Z4 before I found one who’d make the right deal. That dealership was 200 miles away, but my persistence paid off and I got the car for the right price.

In contrast to Honda, two local Jeep dealers are offering the 2018 Cherokee top trim level Overland 4WD with virtually every available option and a $43,865 MSRP for $35,865. An $8000 discount. I won’t debate the Cherokee vs. the CR-V. I’m sure both have their pros and cons. It’s just an example of how some manufacturers/dealers will offer hefty discounts as opposed to Honda. And, the ironic thing is how several posters commented on the great deals with the Acura MDX. Which company makes Acura?

I’m not knocking the CR-V. It’s a good vehicle and is the best seller in its class which speaks for itself. However, just forget trying to lease one. Better to buy it.

It’s 0.48%, not 5.28%

It’s a typo. MF is .0022, not .0002.

My typo: I meant to say.0022

You should see when the trucks arrive at the dealership and the Yakuza step out with their swords drawn and literally force that poor sales manager to start attaching $2.00 splash guards to those helpless CR-Vs that he can then mark up 395 dollars. It’s horrific. You don’t even want to know what they do to him in order to get him to put the paint stripes on, or the dreaded “Pro Pack”.

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I have no idea what a good deal is on a CRV touring.

I would say you really need to try a few more dealers and find someone who is reasonable. There are always the types of dealers like you are dealing wth. Overpriced add ons “required” high interest rates bogus fees. I find them around my area in economically disadvantaged neighborhoods preying on the uneducated who have questionable credit.

There are others that don’t do that crap. They may start high on the price, but won’t be stacking overpriced accessories on it.

find 1 or 2 good dealers by email and see where it gets you.

Just b/c a brand will discount something a lot doesn’t mean its a good deal.$43K MSRP for a Cherokee seems unreal. Hey look at this good deal, I increased the MSRP $5K and gave a $5K rebate.

My questions and his answers in an email with the new car sales manager at Honda regarding the high money factor. These are direct quotes from the email:

Q: Why is the money factor so high for top-tier credit on the CR-V?

A: A interest rate and money factor do not calculate the same way and can not be compare. And they never equate to each other, which is usually thought that they do.

Q: I am curious about your comment on the money factor not equating to an interest rate.
Isn’t a money factor of .0022 the equivalent of 5.28% APR?

A: No. A money factor will never translate to a interest rate. Totally different math. On a lease, the money
factor is used to figure a monthly charge (rent charge) that is set every month for the entire lease term.

I then found this quote from Money Magazine:

In fact, the money factor is directly comparable to the Annual Percentage Rate, or APR, consumers use to compare car loans. The two simple formulas below demonstrate the relationship between the money factor and interest rates:

Interest Rate = Money Factor x 2400
Money Factor = Interest Rate / 2400

I have been leasing and buying new cars for over 30 years and yet the dealerships still never cease to amaze me with their BS.

Why do you even bother asking why it is high? HFS set it at .0022 for Tier 1 and it cannot be lowered.