dhager

Does anyone have an idea of what the rDX lease programs/ payment will be? We know its 33-37K List and that no one id discounting for 3 months...Any ideas on residuals and money factors? Trying to figure if this will be doable or not compared to my TL's $440 a month balloon finance payment

rmralston

The residuals have not been released for the ALG guide. So, banks do not have a framework to set money factors and we dealers then have no way to calculate lease structures. But from my experience, $440 including tax is going to be tough even on a 48 month term and a substatial cap cost reduction.

dhager

hmmm I was figuring $390 mo 36 mos. with $4000 down (equity from my trade) for the base and $460 for the tech pkg...thoughts? (based on a 64% 36month residual and .00288 MF

rmralston

I'll be interested in seeing if the resid is that high right out of the box. Honda is typically very conservative but US Bank may go that high. The money facator is probably right in line.

lumpulus

Please explain any advantages of leasing. I just don't see why anyone would want to do it unless it was business related.

CGTSX2004

iTrader: (1)

Not the place for it. If you're interested in finding out more about leasing, feel free to PM either Shoofin or me and one of us can explain to you why leasing works for some people not others.

lumpulus

Not the place for what? We're talking about lease payments, so what better place to discuss it. Also, I'm not interested in leasing, I was just asking as I can't understand why anyone would lease vs buying outright.

Just because I don't post alot doesn't mean I haven't been here reading for awhile. Been here longer than you, in fact.

CGTSX2004

iTrader: (1)

Again, not the place to have a debate about leasing vs. buying. He didn't ask you for your opinion about his choice of payment option, he asked for a rough idea of what his payments would be.

And it doesn't matter if you're interested in leasing or not, having more information makes you a savvier consumer. Never hurts to better understand your options.

lumpulus

Thx, but I already understand the options, that's why I would never lease a car for my personal use.

CGTSX2004

iTrader: (1)

To each their own. Just don't turn into one of those people who takes the opportunity to villify the lease option anytime someone mentions because just because it's not for you doesn't mean it's not for someone else.

erik7

No offense meant here, but if you don't understand why people lease, then how would you understand your options?

rainshadow

Good point! Everyone can find out the difference between lease and purchase, but "why" people do one over the other is key to understanding human philosophy and choice, both important when buying a car!

dhager

Yes I am planning on leasing thru my business. I have a 04 TL now that i love but am bored with already as i have been with all of my cars around the 2-3 year mark and si i always want a new car. I dont want to ahve a 6-700$ a month loan payment...my mortgage is high enough! SO if i plan on getting a new car ever 2-3 years, get the tax write off from my business (I belive i will be able to deduct 50% of my paymnents why would i buy? I would be happy to ahve a mod PM with any helpful comments or suggestions....Thanks!

lumpulus

The only way I can see an advantage to a lease for personal use is with a car that has a high resale value when the lease ends. That way you can pay for it, then sell it for a profit.

That's the only way I can see it working.

dhager

that would be nice but you cant resell the car when the lease ends...you dont own the title on the car. the leasing company does. Unless you bought it out and then sold which would be stupid...

CGTSX2004

iTrader: (1)

Trade-in.

High resale also translates into solid trade-in value. Allows someone to end the lease early if they wish.

lumpulus

Really? Think again.

My mother leased a Legend, at the end of the lease the buyout was like $10k, and the car was worth $15k. she bought it out, and sold it for a nice profit.

Stupid indeed.

hondamore

All that means is that the sum of her payments (the equity portion) was $5000 more than they had to be. She didn't make a profit. She had already made the payments that were larger than they had to be. It was smart to pay the buyout and sell the car, but only to recoup the overpayment that she had already made.

dhager

youre not meant to buy out a lease at the end...the goal is to get the highest residual you can so you pay the least amount for the time you use the car. if you want to ahve a lease payment and try to make a profit on the car (as I'm doing with my tL) you need to have a ballon finance deals et up. However the deals on ballon financing are not as good as they were 2 years ago when i did it and arent recommneded now

lumpulus

Nope, I negotiated her one hell of a deal. I went into a Brand new Acura dealership where my mom lives, and they didn't know what they were doing.
So pure profit. they had to honor the deal, as I had it in writing, and the person that ok'ed the deal was "let go" soon after.

Digits

SpartanTodd

This is where you are incorrect.....

I have leased and resold for profit 4X.....

1998 Accord
1991 Jeep Cherokee
1999 CR-V
1995 EX

The key to making money is to talk with the dealership you are planning to purchase from prior to needing a car. The goal is to find a dealer who is willing to act as an intermediate between you and the seller....The dealer by law cannot discuss the residual value of your leased vehicle with the seller and thus the seller does not know the markup.

Thus as you mention....I have listed my 99 CRV experience....I made 3,500 on it!

1999 CRV residual was 12,500 and the vehicle at that time was selling on the open market for around 16,000 after three years....16,000 is fair market value and is also at or around where the dealer will price the vehicle sold as used on their lot.....

All you have to do is price the vehicle at or below the 16,000 mark. List the vehicle in the paper for say 15,500....this is 500 under what the dealer is asking. When the seller comes to look at the vehicle, disclose to the seller that the vehicle is a lease end vehicle. Once the price is agreed upon ....lets say 15,000 minus tax, title and license. Call the dealer and either the new or used car manager will transfer the leasing title from Honda or the Bank to the buyer. The price difference between Subtract the residual from the price sold and this is your profit.....The key is that the title never transfers into your name and thus you never end up paying tax on the title. All you do is drop off the vehicle at the dealer with keys and the dealer will request and transfer the title to the seller. The dealer then cuts you a check for the difference as they use the sellers money to pay off the lease residual. Another key to making this work is that you want this to be part of the process with you next new vehicle.....thus use the dealer you are planning to lease your new car from. The only other tidbit to be watchful of is you still are accountable for the rest of the lease payments...some dealers will cover these payments others will deduct the lease payments from your profit. The key is to turn your lease vehicle in the last month.

If you pick the right vehicle with the right residual and money factor you will find that this is very easy to do. The only time this did not work was with a leased 93 Ford Probe GT.....The real value was the residual and I ended up giving the vehicle back to the dealer. The lesson here is to pick a limited supply vehicle and try to stay away from most domestics as their residual is closer to true value than most limited supply imports.

Almost all dealers will do this transaction as title transfers are what they do for a living.....If the dealer is not willing to do this then find a different dealer that will. Most all will as the cost of title transfer ends up being a 15 minute dealer overhead labor thing and is something that is easily absorbed by the dealer.

Leasing is not bad, it is smart if the money factors are set up right with the right vehicle. Just look at the residual and ask yourself, if you would be willing to pay more than the residual value of the vehicle after 3 years if the car were to be in great shape.....Easy answer as far as Honda and Acura go......

hondamore

When you are making lease payments, you are paying interest on the value of the car (basically a rent payment) AND you are paying for the depreciation of the car. If you lease a $25,000 car and the residual payout at the end of the lease is $12,000, you've already paid $13,000 depreciation plus the interest by the end of your lease. If you pay the buyout and then sell the car for $14,000, you didn't make any profit because you have already paid the depreciation on the car to the $12,000 level (plus all the interest or rent payments). Yes, you are better off than if you gave the car back to the dealer, but the point is that you have already paid too much depreciation cost and are simply recouping some of that excess payment.
In general, leasing is a good deal for the dealership. It is a large profit generator and because they can play with numbers in many different ways, they can take advantage of consumers without them knowing it.
Here's my old man advice of the day: You can only really afford to buy something if you can pay cash for it. The greatest deterrent to wealth accumulation is unproductive debt. Even if you are "writing off the interest", you are simply paying a dollar to save 30 cents.

jaobrien6