Can anyone look over this single pay Honda contract and see if everything is in the correct boxes, please? We had a prior lease with GM and this one with Honda is written completely different so I have a few questions…
Should there be more line items in section 6A (Itemization of Amt due at Signing)?
Is everything in section 12 (Itemization of Gross Cap Cost) where it should be listed? The GM contract had one line in section 12 so seeing all these amounts has me scratching my head.
I’m also curious how box 13 (Official Fees and Taxes) comes into play in these #'s.
The lease can be structured in either way. Doing it with everything paid upfront in section 6a rather than capitalized will save you money in rent charge, depending on the money factor. In this case, the money factor appears to be close to 0, so it won’t make an appreciable difference.
Just in case you don’t already know this - With Honda, if something happens to the car, you’re not getting your one pay money back. No prorated refund or anything. So just keep that in mind if you’re tied to the one pay
Interesting that Honda has chosen to go this route. Not having seen the actual contract language, is it safe to assume that the lessee would receive any excess insurance proceeds in the event of a total loss?
Why are you doing a one-pay on a vehicle with such a low MF? I would assume the MF would still be very low on a regular lease. You would be financially better off putting the $20K in the bank and using the interest to help make the monthly payment.
This was my biggest concern with a one-pay lease so I did some digging. I was able to talk to Honda Finance and they asked me to send a copy of the contract and they confirmed I would get a pro-rated amount of my onepay back if the car was totaled. So that gave me some comfort.
I also asked the finance manger to confirm for me what would happen in the case of a total loss and he spoke to 2 other managers and they both told him I would be pro-rated the amount back.
I dropped the contract into AI of course too, and it told me I would be prorated the amount back.
Here’s the contract with the sections I found relevant highlighted in purple and yellow. From my calculations I should be ok if I total it, but I’m open to other interpretations.
That has nothing to do with the money factor/rent charge.
The benefit of doing a one pay is that paying the lease upfront can result in a money factor reduction due to the lower risk to the bank. If the money factor is already very low, as the case may be here, you don’t get the benefit of a money factor reduction. If that is the case, you are needlessly tying up cash.
I did the math. I’m saving ~600 by doing onepay vs 325 for 36 months. taking into account the draw down rate on 10k at 325/month with a savings rate of 4%. That 600 should cover the extra 200 Tx charges for EV registration & Hondas disposition fee of 350.
