Need basic help for Honda HR-V lease—-newbie

Ask the Hackrs
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21

The monthly payment is based on three primary things:

  1. The selling price of the car
  2. The interest rate (MF)
  3. The residual value on the car

Generally the really low monthly payments you see on this site include a large discount off of MSRP, incentives, low MF, and using Multiple Security Deposits to further lower the money factor (and thereby the monthly payment).

So if you want to spend <$200/mo use the LH calculator to see what the numbers need to be to get there…
Let’s assume I am looking at a 22k car and get 10% off MSRP. For 36 months, 10k miles, an MF of .001 (2.4% APR, really low and might not be possible to actually get), and 60% RV…
That brings me to a pre-tax payment of $235. How do you get a lower price in this case? Higher discount off of MSRP or look for a car with high incentives (e.g. lease cash). Getting under $190 might be impossible.

1 Like
22

One last question, on the LH calculator, the lease score says “the higher the score, the better the deal”; what is the scale? Is there an optimal LH score or range?

Thank you again to everyone for your help, so far, in answering my really basic questions :slight_smile:

23

Ignore the LH score. There is a movement here to have it abolished, but that’s a work in progress.

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24

So is the calculator just used as the best guess for accurate pricing, DAS costs?

25

The payment calculator should be accurate given the same inputs as the dealer, but it’s fine to ignore the LH score

26

Okay, so this brings me back to an earlier question; is there a way, other than presenting details to this forum, to learn if you are getting a good deal?

And to reconfirm, the only thing to negotiate is the selling price for the car? Discounts are what they are, MF and RV are set by the bank, and money down is whatever I decide to part with??

27

The only way to know if you’re getting a good deal is to do lots of research and compare against other deals.

RV is set by the bank and can’t be changed. MF is set by the bank, but the dealer can mark it up. Down payment is usually a cap cost reduction and is not always the same as due at sale. You can have a $0 down lease that still has money due at sale.

28

I urge you to reconsider leasing a car for a 16 year old. Just seems like a bad idea all around, from damage to miles driven. It’s your family so you know what is best, but when mine hits that age I am planning to get a 3-4 year old Civic or similar for them.

29

I know that most on this forum say not to lease a Honda HR-V; and I understand the reasoning why…that being said, I think that this deal looks ok but would like expert opinions:

MSRP: 23265
Invoice: 22199
Net cap cost: 19782
RV: 13726
MF: .00135
Term: 36 months
Mileage:12k/year
Payment 190/month
DAS: 5561 (down payment and all DAS fees)

What other criteria do you need to determine if this is worthwhile? This is the lowest net cost on this vehicle that I have come across.

Thank you!

Edited to add payment details because I am an idiot

30

Ah the payment would be a good start.

31

Added to previous post - 190/month

32

A monthly payment w/o the DAS amount is useless.

33

Apologies - still learning the lingo of what is needed—added to OP-----5561

34

That’s ridiculously bad. Seems like you still haven’t done any research about leases.

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35

Well I did research. Is the problem with that scenario the DAS fees? Honestly, I am still trying to become comfortable with the concept of leasing as opposed to financing because I grew up being told that leases were the slippery slope to financial ruin…so I am having to retrain the way I think about things.

36

It’s a terrible idea to pay so much upfront. Your effective payment is ~$348/mo for a $23k car. As others have said, it’s a car to buy, not lease.

37

Got it.

Thank you.