Deal Check- HONDA CRV EXL

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Hi,

I just got a Lease deal for HONDA CRV EXL as below-
MSRP- 35500 /-
Down payment- 4000
Monthly Lease- 570 p month
Residual value- 21000
36 months
10k miles per year
I do not have a credit history at all because I am new in the country, if that has an impact.

Not sure is it a good deal?

Is financing an option that’s possible for you?

That’s pretty bad, I would look for something smaller than a CRV.

Why are you looking at that Mini SUV?

I like this Honda CRV. Do not like the smaller one Honda HRV –

What is the full breakdown? This is outrageous number for a crv. Just get a used car from an old lady and call it a day. At this price it’s probably a better purchase

3 Likes

It is practically impossible for us to tell you what a “good” monthly payment is for your specific lease as lease programs are highly dependent on region, personal qualifications, tax rates, etc.

We always recommend the following method before you ever contact a dealership. If you do all of the work up front, you’ll have a stress free dealer experience and set yourself for success.

  1. Read Leasing 101 to understand how to calculate a lease payment and the variables. Monthly payment is an output, not an input!! While you’re at it, be sure to watch the LH video to brush up on how to most efficiently use the resources here.
  2. Pick a specific vehicle that you want to target
  3. Gather the current MF, RV and incentives from the LH Calculator - Lease Program Lookup or Edmunds forums for your zip code
  4. Research the LH marketplace and other deals that have been made recently on your vehicle - what was their pre-incentive discount? How did their lease terms differ?
  5. Plug your numbers into the LH calculator, and use a pre-incentive discount similar to what you have seen
  6. Create a target deal, this is what you’re trying to negotiate to. You can try different terms, selling price discount, etc. and see how your monthly payment is affected. It is also possible that different trims of your vehicle may have different MF and RV (i.e. this is very common with GM), so make sure that you look into that. Come up with a set of inputs that give you the output that you want - your desired monthly payment.

With a target price determined, you now have a deal to pursue and compare dealer offers against. More importantly, you have a solid foundation to work from.

That just means you like it, I like a lot of things but don’t buy them if I can’t afford them.

Get a car you can use, not one that you ‘like’

so you’ll have paid like a total of $25k after 3 years and have nothing to show for a $35k car. yikes.

2 Likes

I got mine CRV EXL 2019 in 2019 for $330 monthly with about 1500 drive off. MSRP around 31K. I know today is different market

Since you don’t have a credit history, I’ll recommend to purchase instead.

MSRP is 35500 minus 4000 down payment = 31500 left.

From one of the honda dealership websites:

3.9% APR 24-48 MOS. or 4.9% APR 49-60 MOS. or 5.9% APR 61-72 MOS.

So, if you take 5.9% for 72 month, your payment will be around 530 (based on the website Simple Loan Payment Calculator | Bankrate).

Pretty much similar payment to lease (+/-), but at least you will pay for your own car.

What’s residual value and payoff by end of the lease?

Also check out this thread for better financing rates: The Best Finance Rates & Hacks! Submit your CU recommendations!

1 Like

I have this exact car. It’s not that nice to be paying that much to lease it. Look at financing. A 5 year loan with that down payment should get to a similar monthly payment if you can get it at/near MSRP. An alternative is a 2020-2021 low mileage certified used one that will have a better warranty and could also be financed for 5 years for less than that lease payment (and would be under warranty the whole time you’re paying it off).

Lastly, contact one of the brokers on here. If that’s your budget and you want to lease, you could get a much nicer car.

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No, that’s a terrible deal.

Finance it for no more than MSRP.

It looks bad and most likely it is bad but hard to tell exactly without knowing the details. For example If you have low residual and low mf it may be worth doing it and purchasing at the end of the lease.

Residual value is 21000

Based on that quote the car is being sold with some form of blessings. If you happen to get a lease at msrp it still makes more sense to finance it. Try to get a Crv around 39k otd and get the special rates like other members said if you qualify.

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This strategy is exceedingly unlikely to save the OP any money. Over the life of the car lease+ownership he’d be paying:

Rent charge on the lease + acq fee + any lease-end purchase fee + Used Car Loan APR + second DMV reg/title fees

VS

New Car Loan APR + just one time DMV reg/title

4 Likes

I agree, it is unlikely. The math you outlined has to be done before deciding.

If you’re in Jersey (Credit approval contingent) I’d probably reach out to @AutoNinjas and ask about the Jeep Compass deal they are offering that is basically half what you’re gonna pay for the CR-V.

2 Likes

In addition to the lease being pretty poor, the CRV is getting a full redesign for the 2023 model year. In “normal” times, the old shape would be getting blown out with steep discounts.

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