I went for the 10, 000 Miles vs 12, 000 because the residual goes up 1% (from 59% to 60%) --that saves about $12 a month, I estimate. Wise/unwise?
I couldn’t get the Lease Calculator figures to line up correctly with my figures (in terms of the monthly payment). I think I have all the input data, correct except maybe the exact break down of the fees in the $1200 DAS. But here is my best attempt:
Thanks in advance for your feedback.
P.S. I have learned a tremendous lot, hanging around here. I got to this current deal, starting only this morning. Knowing how/what to do makes a world of difference–thanks guys and gals!
Looks good. Probably little discount left, if any. Glad we could help.
Depends on how many miles you drive. If you are going to drive closer to 12,000 miles per year, it is better to take the residual % because the cost per mile at the end of lease multiplied by 6,000 miles is much higher than $12 per month.
My hunch is you are off because of how fees and taxes are handled - capitalized vs paid at signing. If you would like, post the financial sections of you lease agreement and we can get it very close (no personal or dealer info please).
I will probably drive 12, 000 miles or more per year.
I was over my 12, 000 Miles per year on my last 36 month lease. It was due to end on Oct 1 2020. But I think I had crossed the 36, 000 mile mark some time around Feb/March. It was sitting in my garage for 2 months after that, not being used due to Covid-19.
A lightbulb finally went off in my head in the latter part of May, and I shopped around quotes for selling it to Carvana etc. I got an offer from Vroom, that was over my Payoff. So I was able to get out of the vehicle (which was NOT a lease hacker worthy deal), without any downsides/cost.
Based on my recent positive experience selling my vehicle to Vroom, my thinking is that I might never end up turning this vehicle into Honda, and dealing with mile overages. Of course, market conditions may be different then, and I might end up with a negative equity situation.
Also, I am not really Brand loyal, and will go with whatever has the best bang for the buck. (Hence the reason, I am shopping a Honda Pilot right now). So if I end up trading this in to another brand dealership, close to the end of the lease, I might also be able to avoid any mileage overage charges.
I am not sure if my reasoning is sound. It’s definitely not too late for me to switch to 12, 000 miles a year.
You might want to check on rebates. Leasing to buy is not really that good of an option, especially since rebates are higher on the purchase/finance IIRC.
If you want to have the car but not own it long, then lease it. Only you are able to figure out the mileage you need. If you plan to keep it throughout the term and you know you are going to drive the same amount of miles, get the miles at the beginning.
^^
Thanks for all the feedback and input guys! @volvo1 : I have no intention of buying at the end of the lease. I meant selling it (Carvana, Vroom, or to another Dealership).
I’ve never been clear on something: when selling to a dealership, they check to see if which option works out better financially: 1. Buyout 2. Remaining Payments.
I’ve always gone the buyout method. If a third-party Dealer is to choose option “2” (Remaining Payments), does that mean that they actually turn the vehicle in to the Captive, and I would be on the hook for the disposition fee? How exactly does this option work?
My other question is regarding the deal in this thread. Because of the whole work from home situation. I don’t have an immediate need for this vehicle. I started shopping around yesterday, hoping that I could lock something in by the end of this month, or by the middle of August. (I know sometimes these things take time, when you are looking for a great deal).
If I were to try to delay the start of this lease, I am wondering if the Dealership would think I am playing games/not serious. Also, there is inventory considerations. I am not sure if there are more 2020 Pilots en-route to Dealerships, or if what they have remaining of the lots is all the inventory that’s going to be available. So I don’t want to delay the deal, and end up having a hard time finding one on the lot in a few weeks time. In normal times, I won’t feel pressured by inventory concerns. But these times are a little different right now.
Obviously, you guys don’t have a crystal ball. But I would welcome your educated guesses on what you think is best/most logical. Should I just take the vehicle now, even though it’s going to be largely just parked up for the next month or so?
The deal is good with the market adjusting for limited inventory. Could you do better? Maybe. I would take a look at when the rebates expire and keep and eye on Pilot production.
Emphasis on 12K mileage allowance if you know you will drive more than 10K. @Bostoncarconcierge just saved you some dough. That’s what good brokers do.
Its such a good value to go from 10-12 (this is the first time 10K has been offered by Honda up this way), that its best to just pay and be safe (take an extra road trip, etc…)
Are you saying, that this would be good deal “if” it were only $338 DAS with all the other figures unchanged?
The likelihood of me getting that is very slim. It would require a lot of time and effort that I don’t think is worth it right now. I was dealing with quite a very General Managers directly. And at least 2-3 of them have bowed out already (two fully, one hemming and hawing and playing games).
I try to be realistic. I don’t think I’ll get the deal of the century every single time. I just want to get the best deal I can get by putting in a reasonable (for me) amount of effort.
Thanks all for engaging with me and all the feedback. I’ve come a long way since I joined this forum in Dec '19. And all my recent leases have gotten incrementally better. I just did one in Dec 31 2019/ Jan for my wife. I didn’t do too bad. But since then, I have read so much here, and grasped leasing so much better now, that I wish I could have a second shot at that, because I figure with my new knowledge I could do better than I did!
