NJRonbo

Something very interesting happened to me today, and I'd really
like to get as many opinions on my experience as possible....

First, let me backtrack for a moment. I am leasing a 2005 RL.
I got a pretty decent deal of $3200 down and $529 per month
payments for 36 months.

I am now 17 months into my lease with 17-19 months to go.

Okay...here is where it gets interesting....

Yesterday, I receive this letter from my dealer announcing that they
have been selected as a site to conduct a special market test pricing
and financing event. My vehicle is qualified for this special sale.

The letter goes on to read, "we are in need of acquiring several
pre-owned Acuras by December 30, 2006 in order to fulfill a special
vehicle request. You have been identified as a possible owner of
one of these vehicles and our new car managers have been
authorized to buy back your current vehicle at our best market prices."

It continues, "we would like to exchange your current vehicle for
a new 2006/2007 Acura. With factory incentives and generous
trade-in values, we feel confident that you can make this exchange
with little or no out-of-pocket expense and a monthly payment that
fits your budget."

Wow! Great Deal!

I figured, okay, maybe perhaps I could simply give them back my
2005 Acura and exchange it for a 2007 model with the same terms
and monthly payment of $529. After all, the prices of RL models
have not jumped over the past two years.

So, I go into the dealership this morning and explain to the sales
manager that I'll agree upon slipping out of my 2005 into a 2007
under the same terms. The sales manager seemed to think that
it was perhaps possible.

We go over the numbers. My payoff value on the car is $35,807.

What they offered was to wipe the slate clean and put me in
a new 2007 model for these terms....

$3,250 down
$664 per month for 39 months + tax

Something is wrong there. I have no problem with the down payment,
but how does a car that has not increased in price go from $529 per
month to $664 per month?

The sales manager explained that it's the banks fault. Over the past
year or so, banks have changed their leasing plans charging more money
up front but giving a more attractive buy-out option at the end of the
lease.

I don't know if I was being scammed or not. I turned down the offer.

It sort of concerns me (and perhaps you too) that leasing has just
become a more expensive option because of the banks. If what I am
being told is true, you can expect to pay considerably more for your
next RL lease.

Perhaps the dealer will call back with a better offer closer to my current
monthly payment, but if it truly is the fault of the bank, I am not going
to hold my breath.

What do you guys make of all this? Look forward to your replies.

pimpin-tl

They transfered your upside down from your 05 RL to the 07RL which made the price higher.

So in turn your payments are higher.

lumpulus

It's a scam. I got this letter as well, and immediatly chucked it without a second thought.

SteveP66

Sounds like you might want to look into purchasing this car instead of leasing. Similar situation with a TL - Lease terms were 2k down 400.00 per month 36 months..............same 2k down I purchased the car with a monthly payment of $450.00 for 60 months........

I've leased in the past but with my TL I knew I would hold on to it for a long time!

neuronbob

Ronbo...

It's just an ad to get people in the door. It works enough that it is used frequently. I get these from my Honda dealer all the time and they go in the trash.

NJRonbo

Well, I fell for it!

Can you explain this further?


Steve, Exactly how would I get a better deal buying the 2007 over
leasing? The payments would have to be immensely higher.

Do you guys think that Acura would want to make a deal to the point that
they would call me back and attempt to MATCH my current 2005 lease for a 2007?

I mean, if the BANK is not the problem, and prices have not really
jumped from '05 to '07, why would it be so difficult to make me the
same exact deal that they did 17 months ago?

neuronbob

But I also understand your logic (and skepticism) in trying it, so I can't fault you. It never hurts to try to get a good deal.

SteveP66

Not finding fault in your logic at all - and I should have mentioned my TL was an 06 leftover so they were anxious to move it off the lot.

By the time I cruched all the numbers leasing vs. buying it just made more sense for me to apply my 2k as a purchase downpayment and take the $450.00 payment to buy vs. $400.00 to lease

NJRonbo

Steve,

Much different with an RL.

My purchase payments would have been $800+ a month compared
to a $530 a month lease.

I still don't quite understand why Acura would not have made me the
deal that I wanted. A 2005 trade-in (with 8,000 miles) for a 2007 that's
priced nearly the same. They would have gotten me into another 3-year
commitment no problem.

I'm just praying they call me back to make a better deal.

sunnyflava99

My dad used to get these all the time for his navigator. It's no special event, just an attempt to squeeze out more of our hard earned $$$$. Anything to make a buck...

phins2rt

NJ,
Shouldn't you be able to run the numbers from both leases ( residuals, money factor, etc) and figure out where the difference is? I would guess one of the numbers would give a clue.

NJRonbo

Phin,

I'm not very good with numbers which is why auto dealers probably
have a field day with me. I usually walk out on the first and second offer,
post questions on the Internet and when I am confident I got the best
price I could, I go for it.

If this was a purchase option it would be easy for me to figure it out.

Since this is a lease, there are just so many variables I may not be
aware of.

The way I figure it is that these guys had to be high-balling me on their
offer. Dealers never give you their best price up front. If they really want
to lease me a new RL, I'm certainly willing to do so, but they have to do
better on the lease price.

If they claim they are wiping the slate clean on my lease trade-in it
should mean I am starting from scratch. In that case, based on the fact
that the RL has not increased dramatically in price, I should be able to
get NEARLY the same lease terms, not a payment that's $135 + tax more
than what I am paying per month now.

Guys, thanks for the advice you have given. I'm sort of a dummy when
it comes to figuring out lease prices and if I'm getting a good deal or not.
It's just that in this case it seems so logical that with a clean slate,
I should be able to go right into a similar offer.

phins2rt

NJ,
Check out JeffK's posts in this thread. He has leased over 35 cars in the last 20 years and is very knowledgeable about leasing. It may help you decide if you are getting screwed or not.

http://www.acuramdx.org/forums/showt...=leasing+jeffk

linhtwu

If it's too good to be true, it probably is.

Mike_TX

Ronbo, nothing has changed with "the bank" relative to leasing. And if what the guy told you is true, your lease payments would still not be affected, since the "buy-out option at the end of the lease" (also known as the residual) plays a huge part in lease payment amounts.

So, even though they charged more up front, it would be offset by the higher residual. But the "bank" isn't offering higher residuals for RL's. After all, the bank is still American Honda Finance.

Don't expect to drop off your '05 and pick up a new '07 for the same monthly payment ... your '05 is now 2 model years old and you've put quite a few miles on it. You've got to pay for those miles and depreciation.
.
.

jftjr

Not to mention, that the resale market for these cars isn't exactly great right now.... and at 17 months into a lease, you're almost certainly under water on it.

In a lease, the depreciation of the car throughout the lease is distributed equally among the payments.... but the actual depreciation is very much front-loaded -- in a three year lease, the biggest depreciation hit happens the first year, with progressively smaller ones as the lease goes on. That's why it's usually difficult to get out of leases cleanly mid-term, because you're behind the curve on depreciation. And if the residual is being pumped up by the leasing company (as it was on the Acura deal leases) you're even further behind the curve.

Figuring that you're upside down right now, that might not be such an *awful* deal, but it makes no economic sense to jump out of your current lease right now.

vincethe1

what i don't get is why you want to get in an 07 so bad...i mean it's practically the exact same car, there is not even a facelift for it yet, i'd suggest keeping your of until atleast the 08 RL comes out with more features and a facelift, so it's something actually new.

by the way, if you really want to get a good deal on an 07, go to another dealer and explin you logic and mabe they'll match the old price.

NJRonbo

Here's the update on the situation.....

I did go to another dealer to find out why getting into a 2007
lease is at least $130 more than my current lease.

As was suggested in this thread, it has something to do with
the residual cost of the vehicle.

Actually, I would have been far better off if I were at the END
of my lease. I could have gotten pretty much the same deal
on my 2005 lease for a 2007 model if my current lease were over.

So, I feel rather confident that when I shop for a 2008 model in
the next 17 months that I'll be able to stay pretty close to my
current lease payments -- that is, pending on bank rates and finance
promotions.

Thanks for all your assistance, gents!