I was recently offered for the following for a 2008 RDX - Non-Tech:

$400 a month
$1500 for the first month, taxes, fees, etc
$1850 for Trade-In Allowance

36 months and 12K per year on mileage.

Questions that i need answers to:

Would I get the $1K manufacturer rebate on a 08 lease?

Would it be possible to ask for a Tech package for $50 more, brining my monthly lease to $450?

I really want the Tech package, but it would have cost me $70 more. I am hoping to add that I got another offer from another dealership, that would give me the Tech package for less.

Any insights would be appreciated it.

Buggin

 

For the most part, the 2007 is the same as the 2008. Dealers are going to be much more amenable to giving you a better price for the 'older' car [even though there is not any mileage on it]. I would go for a lease on the 2007, I bet you can get it for a great price. They are going to want to move on it.

We wanted the tech package also, so we just kept waiting until last month, when dealers were finally more agreeable to negotiation.

 

Stop focusing on the "monthly payment" and focus more on the details of a lease: MSRP, cap cost, money factor, and residual.

The minute you start talking "what monthly payment can you afford" with a dealer is the exact moment in time you've sold your soul the the devil.

 

I do not quite get that statement - I keep hearing it from leasing posters here and elsewhere, but don't see the point. I am looking for a zero down lease, sales tax in, bank fees in, any things like wheel/road hazard insurance and maintenance in. No accessories. I want exactly 36 months and have no trade and no chance on the Lord's good earth I'd be interested in buying it at lease end. Tell me, what can be more important or bottom-line to me when comparing deals from various dealers (given these parameters) than the monthly payment? Why do I care what the sell price is? The only other factor is the document and related fees." I honestly don't understand. I do understand that if I were interested in buying at the end that the residual would matter. I have calculated a "reasonable or good lease target" using the available MF and residuals I see posted so I know what a reasonable ball-park offer I should expect, but in terms of the final offer from the dealer, cheaper is better - that's it, given they have OK service record, etc.
I see nothing in Buggin's post to suggest he is negotiating on "what can I afford" - I for one tell the dealer that what I can afford is not an issue, it is what do I want to spend on a car. I am always looking for the lowest total 36-month outlay. I consider whether the maintenance is in or out, whether they include loaners, and a few other things – I am only concerned with the cheapest total package for an RDX or an Audi A4 Avant (my other target vehicle). To me the beauty and appeal of leasing is that it is a temporary relationship with the vehicle and I do not care about residuals, etc. If the MF's, residuals etc. are not right, maybe I just move down to a cheaper vehicle. If you can explain your point (and everyone says the same thing) I would appreciate it and maybe learn something in the process. If I were interested in buying it would be totally different – I’d consider the longevity reputation, whether the car has a timing belt, etc. but not for leasing. Thanks.

 

You make a good point, Makolern. If you are looking at a vehicle, purchased or leased, as an investment or a long term deal, everything is important because you are trying to get the best 'investment' that you can. You want to get the minimum interest rate and pay it off in the shortest time so you can keep the vehicle without payments for as long as possible. I tend to fall into this category to the extreme. I will buy a new car, but will drive it until the wheels fall off. I have never had a car less than 12 years, and my longest vehicle was 30 years before it couldn't move any longer. I pay my cars off in 3-5 years, and try to enjoy payment free months by saving and investing my money, partially towrds my next vehicle. I think the average in the US today is a vehicle retention of 7 or 8 years. So, 5 years payment, two years no payment. I don't consider my vehicle and investment, but a necessary expense that I try to minimize by extending it's life as long as possible.

However, if you are simply looking for something to fit a predetermined monthly expense that you can afford, and you expect to continue this monthly expense as part of a cost-of-living parameter in your life budget, and you can continually afford this expense indefinitely, then it doesn't matter what the vehicle is 'costing' you in the long term, the focus is on the monthly cash flow and whatever lease can fit can have whatever arrangement, because you will be leaving this car and moving into another one, which will also be a similiar expense. In that case, you are right, whatever is the lowest monthly payment, no matter the details, is your best deal. The only concern with a supremely low monthly lease payment would be to be concerned with the mileage estimate provided by the dealer, as you may get bitten by a mileage fee if you exceed your estimates. My business partner went through this recently when he estimated 12k miles per year on his Audi, and he actually averaged 16k a year. 12k extra miles at something like a 30 cents a mile was a few thousand dollars at the return of the vehicle. He is also a leasing person, changing in his car every three years.

Good luck, and I hope you find your vehicle.

 

given the option, you always lease a newer model car. in this case, 2008 will give you better deal than 2007. the residual on the 08 is much better than 07, therefore, lowers your monthly "rent" of the car. this will benefit you way more than factory rebate or better discount.

 

Sure looks like the OP has a trade-in to me...

If you go to a dealer and say, "Hello. I have this Honda Accord which I would like to trade-in on a new RDX and I would like to lease", the dealers eyes will light up with more than one way to pull a fast one. Give you less off the MSRP of the new RDX but give you more for your trade-in or vice versa.

The ONLY thing a buyer should negotiate with a dealer from the start is the selling price of the specific vehicle the buyer wishes to drive off the lot. You work this selling price/cap cost as low as possible and THEN you start discussing your trade-in.

Money factors aren't set in stone - they're based on your credit rating and differ from person to person. Further, one might find a better leasing rate/financing rate from a third party rather than the dealer.

Residuals, for the most part, are set and are based on the term of the lease and miles of the lease.


The point behind my post is the OP has a trade-in, is wanting to put cash down, isn't sure if they want a Base or a Tech, and the kicker - only cares about a monthly payment.

My advice - figure out the EXACT RDX you want and email 5-6 dealers within a certain mileage radius and ask for their lowest selling price. Play them off on one another until you finally get the lowest selling price possible.

Further, go to www.leaseguide.com and research leasing options and variables.

 

Yes, I was looking to trade in my vehicle for an RDX.

I wanted the Tech because of the cool gadgets, but I figured I can live without them and the extra cost that's involved.

Correct me if I've been mis-informed, but should I be worried about the residual value, even though it's a lease or do not plan to purchase the vehicle at the end of my lease?

The MSRP value of the base RDX is $33865.00, they gave it to me for $32K.

 

If you're looking at a 2008 Base, you can do better than $32K.

If you're leasing, of course you need to look at the residual as it's one of the key factors of the lease. Let's assume on the specific lease you're looking at the residual is 40% of MSRP - that sort of sucks, huh? The value of the car at the end of the lease will be less than half the MSRP and you're paying for all that depreciation during the life of the lease.

The higher the residual of the vehicle the lower the payment.

Dealers will all quote you the same residual on the same lease terms; however, I would shop your lease deal (money factor, residual) to other third party/non dealer sources.