Hi guys!
Shopping around for a Honda Accord Touring. Wanted some input and advice on these numbers that were presented to me. Dealer claims this is the “best” they could do.
Currently have a ‘21 Kia K5 GT line lease that’s up in about a month. They claim there’s about 2200 in positive equity that they’re putting towards the Accord lease.
Do you think I can get this monthly payment lower (449.00)?
Your monthly isn’t really 449. It’s 449 with $2200 equity down. There looks to be no dealer discount at all here if I’m reading it correctly. I have no idea what these cars go for but without a discount and assuming all other numbers (money factor and residual) are correct you aren’t going to get a lower price. You need to shoot for a bigger dealer discount. Also shop your trade to see if the $2500 equity is fair or a low ball offer.
I’m not an experienced hacker, so take what I say w/ a grain of salt…
Can you post your best attempt at a calculator? Is the amount due at signing only $138.18? And are they really giving you ~10% off of MSRP?
You also might want to change the title to reflect that this is a hybrid (since the hybrids might command a premium over a gas model, in terms of selling price).
Thanks man! From my understanding I’m putting 2500 cash down.
Can you get it under your target, sure, it’s possible. Here are some things to do:
I agree, it’s good to buy Honda rather lease, unless you have a big incentive to lease.
In addition to your trade?
Thank you guys!
@max_g yes on top of the 2200 current lease equity. In theory that should be about 4700 “down payment”.
So effectively $580 a month for an accord? That didn’t sound like a good deal to me.
Probably better to finance
Just visited another dealership and this is the offer:
2023 Touring Hybrid
3000k total out of pocket
389/month
36months/12kmiles
Sales manager claims he’s trying to move this last ‘23 off the lot. He said the deal stands until tomorrow.
Seems good to me! Thoughts???
$3K out of pocket plus trade in?
Did you see this?
Edit: different state YMMV.
Is this offer without the trade in???
Last time i was at the delaership to get my car serviced they offered me a buyout which i refused but they still threw some numbers out for the hybrid touring lease. And this was a few months ago…wanted $3500 out of pocket and $600 a month, 10k miles… I said yes what a great deal paying $700 a month for an Accord!!!
If they are offering you 3k out and $389 per month without a trade in i would jump on that deal!!!
Any premium hybrid under $500 a month in this market is a deal.
How are you benefiting from a cycle where you spend ~$19k every 3 years?
Repeat that again and that’s ~$38k spent over 72 months with nothing to show for it.
Don’t see how you’re getting $2,200 in trade equity. According to your posted dealer worksheet, equity in trade reflects $0 even though ACV of the trade shows $21,000 and the lease payoff is $18,717; a difference of $2,283. It also shows that the trade allowance is $18,717 which equals the lease payoff. So, it seems to me that they’re not allowing you any trade equity.
All the numbers check out except I would want a detailed itemization of inception fees which likely includes the acq. Fee, doc fee, license/registration fees, and taxes.
I think you’re allowing the dealer to control the deal. I would get all the data from the dealer’s itemized lease worksheet which should be vetted from Edmunds and other sources. Data should include all rebates/incentives, money factor buy rate, residual factor, acquisition fee, etc. Research the sell price. Once you have all the data, create a one-page lease proposal like the one linked below.
Sample Lease Proposal.pdf (341.0 KB)
The $138.18 is capped in the lease.
I know you want an Accord - but people here have posted Audi Q4 etrons for 500 all in per month on a lease. If you are wanting to buy right away, great.
But from a leasing perspective, I have seen these german and some american (Jeep 4xe) brands lease way way better than Hondas and Toyotas on here.
What does that mean?
It means capitalized (i.e., financed in the lease) .
Below is the payment calculation.
Sell price = 35,265.28
Cash deficiency = 138.18
Gross cap = 35,403.46
Cap reduction = 500
Adj. Cap = 34,903.46 (Note: looks like the dealer’s worksheet app can’t subtract correctly)
payment = MF x (adj. cap + Residual) + (adj. cap - residual) / term
= 0.00187 x (34,903.46 + 22,611.30) + (34,903.46 - 22,611.30) / 36
= 449.00
There is no evidence that OP’s equity is being applied in the posted lease worksheet unless it’s buried in the dealer 's 9.5% discount which, I doubt. If it is, it shouldn’t be as that needs to be itemized separately as a capitalized cost reduction. Furthermore, it would make a lousy lease and even lousier lease. The worksheet is sloppy and leaves much to be desired.
Edit: OP’s instead of your. Also, what was a 9.5% dealer discount would be a putrid 3.7% discount.
Wow thank you all for your input! Really appreciate it. Needless to say I did not go through with that deal. I’ll continue shopping around.
