Deal check* Trading in my 2019 Honda Pilot Touring (23k low miles) for a new 2024 Honda Pilot Elite. Pay off on 2019 Honda Pilot $22700 (excluding tax). I had extended my lease to 55 months from 36 months. Getting offered 476+tax pm $0 DAS for 36 months/10K (after adjusting equity of about 8k on the 2019 vehicle, the dealer will cover taxes and fees and first month payment) . I’m trying to get the break up for the lease computation, but the dealer is giving me an overall number…
Technically, your DAS is $8k in equity and not $0.
2 Likes
We really can’t evaluate your deal without the detailed numbers. As mentioned, you are putting down $8k in trade equity. The dealer is not picking up anything for you. Get the detailed breakdown and post it here. This seems like an expensive deal given a true cost of over $700 per month.
1 Like
They’re not covering jack. It’s coming out of your pocket using your equity.
You’d have been 5 months away from paying off a 60-month loan and you’d have way more than $8k equity on a low mileage 2019 Touring.
Hope you realize you made a mistake there. Can’t undo anything now but can resolve to not make the same mistake twice.
Thanks @Wtmeyer. They are yet to give me the exact rebates but they gave me the residual this morning so here are the details. But seems like the comments I am getting it does not seem like a good deal at all even if I am saving 2.5K on Sales tax by trading with a Honda dealer:
MSRP (including 399 dealer add on package) : $54729
Residual : $34228
So, seems like the Cap value they are using is around 46729. I am still having second thoughts on just keeping. Other comments have made me realize that I should have used the equity earlier and not extended the lease through 55 months ( I had it at 486 tax inclusive monthly)
You should be getting 64% residual and .00205 MF. You may also be eligible for a $750 Loyalty rebate. Make sure all these items are factored into the deal.
Your best course of action would be to shop around with the goal of (1) maximizing the equity and (2) finding the best price on financing the new Pilot.
Drive that for the next ~4 years until the next generation comes out.
It’s bad enough to pay a huge premium to do 3yr lease cycles instead of 4-5yr ownership cycles. It’s even worse when you sign a 3yr lease half a year before the next gen comes out and you’re stuck with the old body for two and a half years.
It appears they are not providing much of a discount if the Cap Cost is 46729 which is just your $8K equity down payment. The discount off MSRP is likely only the taxes and fees they mentioned, which is not much if you are getting another $2500 in tax savings by trading in the old Pilot. Since the 2025 model year cars are starting to hit lots, you should be able to score a pretty decent discount on a 2024. I would think at least 5-6%.
Thank you so much! Yes, it does seem they are offering much and 2025 models are enroute. Also, I checked my payoff and seems like its around 21.5k (including taxes) and given the low miles and the Elite does not really provide any substantial new enhancements, I am now inclined to keep the vehicle. I did get my vehicle assessed at a non Honda dealer and seems like they were offering 27k just to get the discussion going and Carmax is quoting 31k.
1 Like