Help analyzing this lease deal for a Massachusetts 2021 Honda Passport

Hi all,

Any help analyzing the following deal greatly appreciated.

I’m interested in leasing a 2021 Honda Passport, EX-L. Below is the quote I am currently most interested in. Can anyone advise if this is a good deal or if there are any red flags? I’m confident I won’t drive over the 12k/yr mileage and I’m fairly sure I won’t want to purchase at the end of the lease term. This is in Massachusetts.

Let me know if you have any questions or if there is something else I should include in this rundown. I’ve never leased before and need all the help I can get. I understand the residual and MF are high, but I’m really interested in a lower monthly payment. There is another Honda dealer in my area who is offering a MF with 3 0’s and a residual that’s around 6% lower, but the monthly payment is WAAAAY higher and I’d rather not go that route!


Term: 36 mo
Miles/Yr: 12,000
Residual: $28,024.50 (70%)
Money Factor: .00130

Total MSRP: 40,035.00
Discount: ($2,928.00)
CAP COST: 42,963.00
DEAL CONTRIBUTIONS: $1,250 (Customer Cash)

Monthly payment = $485 with zero down at signing
Monthly payment = $380 with $3,500 down at signing

That monthly payment includes:

  • sales tax
  • Honda Acquisition Fee
  • New plates/registration
  • Documentation fee
  • First month’s payment

The lease includes gap insurance.
There is also a $450 disposition fee.
Mileage over the allotment is $.25/mile

The bank is Rockland Federal. Apparently, they have a higher acquisition fee and disposition fee than financing directly through Honda.

I’m not sure what the “adjusted cap cost” means. The “deal contributions” is apparently “customer cash” that is apparently an incentive Honda offers when dealerships finance through means other than Honda…

Hope you realize that it’s a markup, not a discount.

I absolutely do not / did not realize that… So, thank you for that info… presumably this is something that could be negotiated away?

I don’t even know the sales price. A backwards calculation of the residual, MSRP, and MF lead me to believe the sale price was the same as the MSRP, but I would not be surprised if I was totally wrong on that one…

Residual value on these Passports seem great. However, they are selling you the car over MSRP.

I had no idea! I AM SO GLAD I CAME HERE. They wrote all over the quote sheet they printed out for me and did a good job of distracting from the fact that they are giving me a fat markup.

My question now is, whether a “discount” over MSRP is the norm right now or am I being fleeced.

Being unseasonably fleeced in New England


I would take a look at how to lease before continuing the search.

The best place to start is

Please read links in there such as “how to calculate payments” and other helpful articles.

It might seem like a lot but TBH there are fewer <60 minute exercises which will save you so much time, money and anxiety over your driving lifetime.

It may also save you (after your negotiations with LH input) inside the finance office where no one can from the internet can really help you.

Remember, it’s almost impossible to reverse-engineer the math starting from the output (monthly payment) and figure out if it’s a good deal. Start at the beginning.

Thanks volvo I’m going to read this now!

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So I read a lot of those articles but I hate to say I still don’t fully understand how this is necessarily a bad deal, aside from the fact they quoted me over MSRP.

I think I need to do more research on what this “discount “ really is because I don’t understNd it

Wife is pressuring me to go buy this car today! UHG! I need ammo. All I think I’ll be able to do at this point is question the “discount” and try to get closer to MSRP… Any last minute tips greatly appreciated.

You have your answer right there.

It’s a bad deal because they’re marking it several thousand over msrp.


Can you point me in the direction of where I can find out what people are typically paying for this car in my area?

Could the sale price be higher because it includes taxes and acquisition fee and document fees and registration fees etc? Monthly payment of $485 with zero down includes taxes in it

A good place to start is in the shared deals and marketplace listings here.

Be sure to focus on pre-incentive discount, not monthly price when comparing details.

Can you provide more info? such as the doc fee and aquisition fee? at first glance it doesn’t seem all that crazy. I’d reach out to them and get clarification on that “discount.” but when I plugged it in the the calculator at MSRP selling price I get about 455 down and 455/month. If no first payment, then i can see it going up a bit.

The internet salesperson quote said that the $595 Honda Acquisition Fee is included, the $135 registration/plates fee is included, the $499 documentation fee is included and the first moth’s payment is included all included in the monthly payment price.

Problem is you’re providing honda fees when you mentioned another bank above. You need to have everything straight in order to get a more accurate picture. Either way, here’s what I come up with using the provided numbers.

Someone else feel free to correct me

Right, the BDC email I received said the $595 Honda Acquisition fee was included in my monthly price quote. However, when I went in and asked for more information, I eventually found out the financing bank’s acquisition fee is $400 higher than Honda’s, but I was still assured that the acquisition fee was included in the monthly price quote.

Thank you for doing that lease calculator for me… I know I don’t deserve that. You are helping someone who you don’t know. I really appreciate it, man… having a moment here… there are nice people out there. makes me want to be a better person myself.

No worries. That’s what we’re here for. If you change the acquisition to 995, it goes to 472, which is even closer to what you are being quoted. I’m still unsure of that whole discount thing though. Because my calculator assumes they are selling at MSRP. If you add a markup the payment goes way up!