Lease Deal Guidance - 2022 Honda Civic Sport

Ask the Hackrs
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Hey everyone, I’m helping a family member navigate this crazy car market we are in. They have some equity in another vehicle they are looking to sell which is factored into the down payment value. The dealer has been giving me numbers but hasn’t been transparent with the lease cost breakdown, so I feel like they are hiding something. I’m getting messed up on how to factor in the accessories and the calculation of the cap cost reduction value.

Looking to purchase a 2022 Honda Civic Sport in the Los Angeles area and this is what I have thus far:

MSRP: 24845
Acquistion Fee: 595
Accessories: 2200
Selling Price: 27640 (MSRP + Acquisition + Accessories)
Residual: 66%
Residual Value: 16397
MF: .00178 (assuming this is base, dropped them from .002XX)
Dealer/DMV Fees: 545
Down Payment: 3500
Tax Rate: 7.75%
Lease Term: 36 months

They are hitting me with a number closer to $380 a month where as i’m getting something in the $340 range.

Please let me know what i’m missing.

Thanks in advance!!

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Post your calculator

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Msrp already includes destination. Are they showing you being charged again for it?

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Thanks for your reply!

They don’t have it broken out. All I was given was “Vehicle Price”. In another deal I got late last year, they had the destination fee broken out on the sales sheet. It was “Agreed upon value (MSRP) +Additional Items in Gross Cap (Destination)”. I attached the deal I got in 2021 which was my guide in creating my current model.

I recreated the same numbers in the excel model I have attached. That could be something I’m missing

Manual Lease Calc
Manual Lease Calc317×580 11 KB

2021 Honda Deal Breakout
2021 Honda Deal Breakout1318×728 214 KB

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The additional items in the gross cap before was the acquisition fee, not destination.

If we assume that $3500 down is actually $3500 das, i get $367/mo

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Ahhh you’re right!! Don’t think that’ll change the numbers though, just labeling optics.

Interesting, thats a little closer to their number monthly payment . Guess i’m factoring in the accessories incorrectly on my calculator.

I must be messing up the adj cap cost value because the deprecation base cost in the calculator you provided is higher than mine

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Buy this car, don’t lease it

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Acquisition fee is a legitimate fee on a lease, and it needs to be disclosed that way. :slight_smile:

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^^
effectively $16k+ to drive a Civic for 3 years. OP run the numbers but you’ll certainly come out ahead financing it then selling it down the line.

Also have you independently verified the market value of the trade-in to ensure the equity amount is fair? If not make sure to do that too.

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Fair! I was saying relative to the math I was doing, I am including the Acq in my calc as an additional cost. However, I think the dealer is basing residual off the MSRP + acq. They have this one price, no hassle non sense and the acq fee isn’t broken out anywhere so I might have to update my residual value. It shouldn’t change the numbers much though

Yeah, going to run some more numbers on the finance side and see what they want to do. They are looking to keep their payment low

Will double check the trade in again, thanks for the suggestion.

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Dealer can’t change the residual. The car doesn’t make sense to lease even during normal times. If they want to keep the payment low just use the equity as down and stretch out the loan even with higher interest rate they will still come out ahead.

I recently bought a EX with 2k ADM. There are more sport then EX I think so markup should be less maybe

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Acq fees are rarely broken out. Their breakdown simply doesnt show it.

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