RL Lease questions
10-01-2006, 10:00 PM
#1
White and Nerdy
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Location: Cranberry, PA
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RL Lease questions
We were thinking about buying a 2006 RL and got an offer for $42,300. Then we saw the featured lease on Acura.com and started to consider leasing instead of buying.
The details for the featured lease are the following: for $599.00 per month for 36 months with a $2,305.00 capitalized cost reduction available to customers who qualify for the AHFC super preferred credit tier. Other rates/tiers are available under this offer. $3,499.00 total due at lease signing (includes first month's payment, AHFC upfront acquisition fee and capitalized cost reduction. Security deposit waived in featured lease example. Total net capitalized cost and base monthly payment does not include tax, license, title, registration, documentation fees, options, insurance and the like). Not all buyers may qualify. Subject to limited availability. Through October 2, 2006, to approved lessees by American Honda Finance Corp. Closed end lease for 2006 RL (Model KB1656KW), for well qualified lessees. Not all lessees will qualify. Higher lease rates apply for lessees with lower credit ratings. MSRP $49,915.00 (includes destination) less the suggested dealer contribution resulting in actual net capitalized cost $39,912.64. Dealer contribution may vary and could affect actual lease payment. Taxes, license, title fees, options and insurance extra. Total monthly payments $21,564.00. Option to purchase at lease end $24,957.50. Lessee responsible for maintenance, excessive wear/tear and 15¢/mi. over 10,000 miles/year for vehicles with MSRP less than $30,000, but for vehicles with MSRP of $30,000 or more, mileage cost is 20¢/mi. over 10,000 miles/year. See dealer for complete details.
My first question is what "actual net capitalized cost is $39,912.64" means. Secondly, is the "Option to purchase at lease end $24,957.50" the same as residual value?
The dealership told us that our negotiated price is $42,300, the residual is $23,460, and the money factor is 0.00303. Since we want 15,000 miles instead of 10,000 miles, we will pay $3,850 upfront fees (the $3,500 indicated above plus tax) and $703 per month for 35 months (the $3,850 includes the first monthly payment).
Is this a reasonal deal? We don't exactly understand all the details of the featured lease but it seems like that we will be paying about $100 more per month because we want 5,000 more miles.
Thanks for your help!
The details for the featured lease are the following: for $599.00 per month for 36 months with a $2,305.00 capitalized cost reduction available to customers who qualify for the AHFC super preferred credit tier. Other rates/tiers are available under this offer. $3,499.00 total due at lease signing (includes first month's payment, AHFC upfront acquisition fee and capitalized cost reduction. Security deposit waived in featured lease example. Total net capitalized cost and base monthly payment does not include tax, license, title, registration, documentation fees, options, insurance and the like). Not all buyers may qualify. Subject to limited availability. Through October 2, 2006, to approved lessees by American Honda Finance Corp. Closed end lease for 2006 RL (Model KB1656KW), for well qualified lessees. Not all lessees will qualify. Higher lease rates apply for lessees with lower credit ratings. MSRP $49,915.00 (includes destination) less the suggested dealer contribution resulting in actual net capitalized cost $39,912.64. Dealer contribution may vary and could affect actual lease payment. Taxes, license, title fees, options and insurance extra. Total monthly payments $21,564.00. Option to purchase at lease end $24,957.50. Lessee responsible for maintenance, excessive wear/tear and 15¢/mi. over 10,000 miles/year for vehicles with MSRP less than $30,000, but for vehicles with MSRP of $30,000 or more, mileage cost is 20¢/mi. over 10,000 miles/year. See dealer for complete details.
My first question is what "actual net capitalized cost is $39,912.64" means. Secondly, is the "Option to purchase at lease end $24,957.50" the same as residual value?
The dealership told us that our negotiated price is $42,300, the residual is $23,460, and the money factor is 0.00303. Since we want 15,000 miles instead of 10,000 miles, we will pay $3,850 upfront fees (the $3,500 indicated above plus tax) and $703 per month for 35 months (the $3,850 includes the first monthly payment).
Is this a reasonal deal? We don't exactly understand all the details of the featured lease but it seems like that we will be paying about $100 more per month because we want 5,000 more miles.
Thanks for your help!
10-02-2006, 02:14 AM
#2
Unless your credit score is less than wonderful, that's not a very good deal. Actually, even if your credit is in the 600's, that's a pretty sucky deal.
The "actual net capitalized cost" is the SELLING PRICE OF THE CAR. In the Acura lease, it's $42,217.64 (2305 "cap cost reduction" or down payment.... you're paying it.)
The 10000 to 15000 miles thing affects the residual price, not your lease rate or money factor.
Your "sale price" offer from the dealer of $42,300 is not only higher than Acura's advertised deal, but it's about $1500-2000 higher than what they're going for on the east coast.
As I recall, Cranberry is between Pittsburgh and Erie, right? I don't know if you wind up with the "midwest" pricing (which is higher) but in the NY/NJ/PA area you can get them for much closer to $40K.
Search around on this forum, you can see the deals other people have gotten recently. Again, unless your credit isn't great, that's not a particularly good deal.
The "actual net capitalized cost" is the SELLING PRICE OF THE CAR. In the Acura lease, it's $42,217.64 (2305 "cap cost reduction" or down payment.... you're paying it.)
The 10000 to 15000 miles thing affects the residual price, not your lease rate or money factor.
Your "sale price" offer from the dealer of $42,300 is not only higher than Acura's advertised deal, but it's about $1500-2000 higher than what they're going for on the east coast.
As I recall, Cranberry is between Pittsburgh and Erie, right? I don't know if you wind up with the "midwest" pricing (which is higher) but in the NY/NJ/PA area you can get them for much closer to $40K.
Search around on this forum, you can see the deals other people have gotten recently. Again, unless your credit isn't great, that's not a particularly good deal.
10-02-2006, 03:46 PM
#3
Sounds like a really bad deal to me. My '07 M35 with all the toys (nav, 5.1 surround, Bluetooth, voice command) had an MSRP of $46,800. My lease was $2,400 out the door with monthly payments of $660 per month for 24 months/12,000 miles per year. The residual used by Infiniti was 70%. That means they are betting the car will hold its value, and the negotiated price at the end of the lease will probably be much higher than what I would want to pay for the car, but I have the option to walk away... plus, it lowers the payments.
Lexus was using a residual of only 52% on a GS350 with an MSRP of $50k, bringing the payments to $899 per month for 3 years.
The residual % can make a big difference. That may be why the payments are so high with such limited mileage on the RL you are considering.
In this case, buying the car may be more financially sound than leasing it, especially if you plan on keeping it for quite a while. I wouldn't lease it for the deal you were offered.
Lexus was using a residual of only 52% on a GS350 with an MSRP of $50k, bringing the payments to $899 per month for 3 years.
The residual % can make a big difference. That may be why the payments are so high with such limited mileage on the RL you are considering. In this case, buying the car may be more financially sound than leasing it, especially if you plan on keeping it for quite a while. I wouldn't lease it for the deal you were offered.
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