Newbie questions re Honda special

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1

Hi everyone. Newbie here trying to master the dark art of auto leasing. My question is about lease specials. Honda has one for their 2017 Accord CVT Hybrid. MSRP is $30495; $299 per month for 36 months, $2699 due at signing; Option to buy (is this the exact residual value?): $14637.60. And here is my question: Honda has set an actual net cap cost of $22362.06. I thought the Net Cap was a variable figure worked out in the negotiation process, not one set by the dealer/manufacturer. Doe this mean that $30495 minus 22362.06 minus $2699 due at signing equals a discount by Honda of $5433.94, more or less? I know there is the acquisition fee, taxes, title, registration etc. to be factored in, but with these numbers I have supplied can they be plugged into the calculator to get an idea of if this lease is any good? Don’t really know how to do that if the net cap is already a set amount. Thanks for any and all advice, hope these questions were not too ignorant. This is my first year at Hogwart’s…:thinking:

2

Net cap is not set. That net cap is just what is required to meet the national offer.

BTW, that’s a terrible deal for a 2017. I’d check what lease incentive is currently available.

3

click on the link for “special lease”

that is a touring model

4

OK, off to the races! Follow-up questions:

  1. Jon, I guess this goes to the heart of the matter, and keeping in mind that I have been trying to learn about leasing: what makes that a bad deal? What should I be looking for, or are there other things I need to be researching (e.g., what these cars are selling for these days off MSRP)?

  2. How does one find out about these fabulous dealer specials? I live in Cali and have zero idea where Tipp, Ohio is. Is the general idea to try to get the same special at your local dealer, presuming they have the same (or similar) car in stock that they want to move?

Thanks again for all the help!

5

honda incentives are National so an OH deal should be able to be replicated in CA especially when Honda dealers are plentiful in CA. 2017 inventory is almost gone so don’t wait too long to act

btw, 2018 lease deals are pitiful because there is no lease support and higher MFs (0.00200)

leasing tips:
http://www.realcartips.com/guide/#chapter3

6

4750 in lease cash on ex-l hybrid

7

You need to know the MF/RV, current incentives and how much discount off MSRP to calculate a lease.

You can get a $40k Q50 for less that payment and drive-off. You

8

@RoboLobo you know the national deal on the Accord Hybrid is $229 month right? What dealer tried to scam you for $299?

9

I might/must be on drugs, now I am seeing $229 on Honda’s web site, I could have sworn it said $299. Or else I saw that number someplace else. So no dealer scam (quite yet). That would certainly make the offer less terrible. I am still uncertain about a few things, though: 1) How exactly does one find out about what incentives/rebates, etc. are available (e.g. $4750 leash cash) at any given time? The Honda lease details don’t break this out. 2) I am still unclear about how the net cap number specified on the offer (in this case $22362) works. Does this mean that whatever offer is worked out between customer and dealer has to have a net cap of at least $22362 in order to take advantage of whatever incentives Honda is offering at the national level? Or would that be before what dealer incentives might be available? As I mentioned earlier, I thought that the end result net cap number was determined by the blood, sweat and tears of customer/dealer negotiation.

Thanks again, sorry if these are weird/dumb/obvious questions!

10

Never mind about the incentives question. Finally got to the right spot at Edmunds for MF/RV/Incentives, etc. The internets are a great thing!