Hi – first post - I’ve lived without a car in Brooklyn for 17 years but in the new state of things with COVID-19, my wife and I are looking to get wheels. We want the process to be as low-contact as possible (we both have risk factors and have been really cautious throughout this) so we want to lease rather than go used. Dealerships being willing to deliver the car to us is a huge plus.
I don’t have good credit. Last I checked it was around 550. This is probably affecting the high due at signing amount. I’ve been at the same job for 15 years and the same address for 17, though.
Based on reading reviews we decided on a basic 2020 CR-V. I’ve been in contact with Paragon Honda in Queens for a few weeks and we’ve gotten down to nuts and bolts with them. I got the insurance and lease costs today and am taking a few days to mull it over. Here’s what they offered (36 month, 10K miles/year plan):
Selling Price: $27,500.75
Cash due at signing: $4,980 (this includes plates & dmv costs)
Monthly Payment (pre-coverage): $234.95 (first month would be waived)
Monthly Grand Total after adding Maintenance coverage, Tire coverage, Interior coverage: $429
(Coverage Note 1: because we are uptight about exposure during the pandemic, the fact that Honda will come pick up the car whenever we need service has an appeal)
(Coverage Note 2: Interior scotch gard/damage coverage seems like a must because we have a big crazy 10 month old puppy who is 90% certain to eff up the seats)
A CRV probably only needs 2/3 oil changes for the duration of the lease - My estimate is that it would be about $70 for synthetic (less if you go indie, even less if you DIY/bring your own oil with Mobil1/Pennzoil close-to-free oil after rebates). Free tire rotations at Discount tire for even tire wear. I would skip maintenance coverage.
I would also skip Scotch gard and find a local auto detailer. Better protection products and the detailers do a better job at cleaning the car.
First of all paragon is a terrible dealer to buy/lease from every time I tried getting a car from them they hit me with bmw money for a Honda. Second, they do have valet service that picks up and drops off your car free of charge so don’t pay for something that’s free. Decline all coverages they are just trying to rip you off. I get my oil changes there for $45 on a crv because it’s convenient but I would never buy a car from them. Reach out to other dealers but first research what it should cost first.
You need to check your FICO scores and fix any issues you can before you submit a credit app. You aren’t getting a good lease deal if this is your current FICO score (if they will approve you, expect the MF to convert to usury minus 0.25%).
What is the MSRP of the car? It should be listed on the window sticker. What specifically does the cash due at signing include? Plates and dmv costs should only be a few hundred bucks. Are you putting any money down on the lease?
You are helping dealer buy a boat. Do u want that? I’m sure you don’t. Now take a step back. It might be overwhelming but take your time. U don’t want the dealer to buy even a canoe on ur dime.
Let’s go thru the steps.
First what’s the msrp of the vehicle?
What is the discount dealer is offering you before any Honda rebates or incentives ?
Goto Edmunds forums and check what incentives apply in your area and what’s the MF.
Talk to the dealer to make sure you are getting those incentives and how much is the mark up of MF due to your credit.
Don’t buy anything else. Not a single damn thing.
Come back when you have this. We can help you. Right now it looks like you are giving them 3000-4000$ that you don’t need to
There are at least 7 leasing companies in Brooklyn that can help get you a better price , along with all the brokers in this forum and they’ll also Bring the car to your house.
Do you have a garage or driveway space in NYC? If not, I would strongly advise against any new car lease (or purchase, frankly) given the amount of wear and tear you’ll inevitably get by parking in NYC. So many bangs, nicks, dents - and that’s before you even start driving on the horrible, pot-hole strewn streets in the city. You will likely end up having to pay to get these things fixed when you turn it in. With the low credit problem on top of it all, I’d say get a used CR-V if that’s an option.
I’ve had 8 leases in Brooklyn , all without a garage and only wound up paying $400 to Nissan once. The inspectors in that area seem to be more lenient.
I think you did a good job of at least stepping back and attempting to look at this lease. But don’t do it. I know you say you’re worried about health with buying a used car, but I think this may be the better route. To put almost $5k down on a crv? That’s absurd. Get a used car, maybe certified pre-owned and not worry about a dog destroying the inside and paying the price later. Get a loan from a credit union that will also help build up your credit, and buy a tub of bleach to clean the car with for peace of mind.
Thanks - this comment and others in the thread are getting me more comfortable with deleting those additional coverages. It would also get that monthly payment down to where it (plus the monthly insurance cost) fits more into my budget.
I did forget to mention Lojack is also in there to the tune of about $50/month. That one I think we’ll keep. Monthly payment would still be under $300 if I keep that.
I don’t have access to the specific vehicle to refer to its sticker, but google says MSRP from $25,150 for the CR-V LX.
Here’s what they told me the $4,980 includes other than the up front cost:
$1343.85 tax
$332.50 DMV
$29.85 [Can’t remember what this item was and I missed it in my notes]
Assuming you can get approved, there is a maximum interest rate with markup you can be charged. If I’m reading correctly in NY, that’s 16%, which would be a MF of 0.006666666666667 (point-2 zeros and 6 repeating) (that wasn’t the case when I last lived in NY).
You’re getting a lot of help structuring the deal, and I’m saying if your credit scores are mid-500s I don’t see you getting an approval, even at an effective 16% interest. You need to get a handle on that before you continue grinding this deal.
It’s possible your FICO scores are better than you think, you need to find that out before you fill out the credit app with the dealer.
Using the idiot-proof instructions elsewhere on this site, I checked the Edmunds forums and it appears that this month these are the numbers for CR-V LX 36mo/10K:
Agreeing with jeisen, no offense, living at one place, and having the same job doesn’t mean an underwriter (financial company person) will say yes to base money factor.
With your credit expect a major or even maximum tier whatever markup (If you even get approved) to an outrageous number; not what Edmunds gave you (base money factor for tier 1, think 750+ (Exact varies brand to brand, and even finance dept. to underwriter)).
A 550 fico is a number finance guys love to shove markups at, and a number only Nissan, Mitsubishi, BHPH, and Scamtander could love.
Also yes it’s 3am I drank too much coffee and can’t sleep.
This is buy rate (no markup) for Tier 1 (clean 720+, expected DTI, no negatives, with positive auto lending history).
VW once upon a time had a Tier 7 for situations like this, Honda didn’t used to ever buy this deep, and they have a max markup on financing unless something has changed. If there are Honda folks who are current on HFS underwriting they can correct me.
In general: 16% doesn’t even cover the collateral risk - forget markup to pay the finance manager who will spend 1-2 full days trying to hang this. If that is actually the current FICO score.
You may want to reconsider this… the retail price of LoJack (on their website) is $695. That’s almost $1800 you’re paying for… also, the CRV is not really a hot vehicle (no offense meant). Most stolen cars are civics, accords, camrys, and pickup trucks.
If you really want LoJack or similar system, look into the pros/cons of it. In some cases, folks have opined that they do not want a car that has been stolen/stripped for parts found again lol
