Correct. Only refundable security deposit due at signing.
Honda leases suck. Almost always will. Lease something else and save a lot of cash.
And treat the trade in and lease as separate transactions. Don’t let them hide things.
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As everyone else here said, your dealer is “robbing Peter to pay Paul”
I’d flat out consider another vehicle and possibly just leave the trade in out of the deal entirely.
What manufacturers are better for leasing?
Pretty much anything in the Marketplace
Hondas generally don’t lease well but the bones of this deal aren’t Terrible. With a 61% RV, if you can get a strong dealer discount on the car it should lease fine. I have never had a problem getting below KBB’s fair purchase range and that should always be the goal when buying a car. Figure out fair value of trade and then negotiate a discount off MSRP independent of that, the tax savings from the dealerships funny math don’t make up for the likely poor dealer discount.
As for people suggesting you lease a BMW. If you look at my previous posts I’m often not onboard the swap a BMW for a non luxury brand train . A 3 series or X1 isn’t a substitute for a Accord or Highlander. They are smaller and most don’t have the same level of features. Also, even if the lease costs the same, your insurance and gas (plus sometimes maintenance if not included in lease) will generally cost more.
That said, a 3 Series is a Civic substitute and I would guess if the lease was $25+ cheaper, would come out costing no more than a Civic, especially if you look at the smaller engine 320i.
I passed on a Honda lease for this exact reason Lisa- $279/mo for 36 months means I pay almost $10k for a 3 year lease on a Honda. I could buy a CPO 2019 now, and then in 3 years sell it and lose less money!
I must say, $239 is a great deal on an EX based on everything I was able to find when looking for a Civic at the end of last month, just not sure leasing a Honda is a strong financial choice when buying one and re-selling may result in less of a loss due to their stronger residuals.
Just a question- I thought last night when I read your thread, you still had some time left on your 2016’s lease. Is that right? Is that where this equity is coming into play?
Thanks for the insight. My current lease is up this week, so I have just two days left.
Call Honda finance and ask for an extension for a month or two.
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Can you elaborate/break this down? I’m not seeing the numbers and am genuinely curious.
They are effectively using the trade equity as DAS.
($4,360/36) + $239 = $360.11
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Yes, but I’ve shopped the trade in to multiple places and I’m not getting near the $18150 value. The best Ive seen is $14k. I owe $13800, so I’m thinking the $200 difference is “mine” and that they’re incentivizing $4150. ($18150-$14000) It would be the same as if they gave me $200 on a trade and $4150 off MSRP. They’re then shifting around the trade-in money to pay the taxes, fees and first month and folding the balance into the lease. At the end of the day (really at end of 3 years) I’ll be all in for $8181.80 + $200 of trade-in value that’s technically mine.
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Without the trade you can still get X off Msrp.
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Honestly, I would take it if you’re happy with it. The way they get to the payment doesn’t matter as much as the payment itself does. $239 on a Civic isn’t bad considering what you get for the money
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Hey look at this guy with his reasonable opinion! I dont think every single person is looking for an amazing “hack” per se, they just dont wanna get hosed. This is a solid deal on a good car, and if youre happy, take it and run
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Especially considering that this isn’t the Northeast or Cali, this is a great deal. I’m surprised this is possible in SC (which isn’t a competitive market IIRC)
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I have to disagree. I couldn’t really recommend this deal without knowing how much off you can get sans the trade
This definitely makes sense then. Sounds like you’re in a time crunch for a car too so this is by far the best EX deal I’ve seen (I’m in PA with 9% lease taxes too)! @mani_is_kool what say you Honda broker?
Sell the old car to vroom and get a check for equity. Negotiate the civic ex sedan for close $250 to $270 based on ur reigon. Im not from SC but every states different. Im assuming thats a good discount ur getting for ur state dealers. Whatever you do, DO NOT pay an effective 360 for a civic.
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It isn’t necessarily an effective $360 though. They’re giving a large bump on trade instead of a large discount. Vroom or Carvana likely won’t offer anything close to $18k on a 2016 Civic
Any Civic under MSRP is a killer deal.
Edit: Rare vehicle
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