You did fine. Acura has lease cash of $2500 they can use. They also have $2000 rebate for finance customers. Also they have 2.9% or 60 months. We could have gotten a better payment on a lease, but my wife drives cars 8-10 years, so going with the higher payment and paying off early. Nice incentive on the lease, but the buyout will be above market, I am sure you know this..........

 

you can always lease 1st, then purchase since the lease deal is better. While the buyout is higher, in the end you still pay less when adding up total payments on lease vs purchase

 

Can you clarify if the money factor was .000028, that was on the lease agreement? Just looking at numbers........

 

I disagree, there are other factors involved. If you can buy a 3 year old MDX with same miles and equipment for $2000 or $3000 less, you would not buy your car most likely. Also what is the rate you would refinance it at if you bought your own vehicle back? Etc. The car companies are not stupid, they want you back in 3 years buying ANOTHER new MDX, not refinancing your old one, that does not help them at all...

 

It's .00028 as in 3 zeros lol

 

i understand. But if you plan on purchasing from the beginning anyway, leasing it 1st might be a better option given the rate and incentives.

 

Not sure what the dealers charge for oil changes in your area, but here in the NY Metro area it's actually pretty reasonable--less than $100 for oil and filter change. And you only need to do that every several thousand miles.

 

6.72% internal interest rate on the lease. They have a high residual of 55%. 6.72% is pretty high new car interest rate, but leases are all about payment anyways.

 

Yes and no. I got $2000 cash rebate and 2.9% for 60 months. Payments are higher than a lease but I don't have to buy another or refinance in 3 years. My wife keeps cars a long time so it works for us, YMMV.. MDX is by far the highest volume Acura, so they are aggressive on programs to move them, that's smart. The used MDX market is very good in my area, I am sure around the US too......

 

NY is expensive, full synthetic is $39.95 at our local Acura dealer......

 

Also, BMW's scheduled maintenance program isn't what it used to be, unfortunately. They used to have the best program in the business. Now, as other manufacturers have started to pay for maintenance, BMW is pulling back. Starting a couple of years ago, they did away with complimentary replacement of wear items (brake pads and rotors, wiper blades, etc.). That had been quite a good deal. Not uncommon to need to replace brake pads and maybe rotors at the 36k mile mark, which would be right at the end of a typical 3-year lease. With the free scheduled maintenance, BMW used to pay for that. Now, it's up to you to pay the $1000+ for new pads and rotors just prior to lease return.

 

BMW = Bring My Wallet. I have heard similar stories from other owners. Acura may not be as prestigious a label as BMW or Mercedes, but I am fairly sure the maintenance costs will be lower........

 

I live in the Washington DC metro area and got a new 2017 MDX base SH-AWD, black/parchment, with all season mats for all 3 rows and the folding cargo tray for just shy of 42K out the door on Nov 24th. How was my deal? Was my first time buying a car on my own. Looking back, I forgot to ask to see the dealer's invoice sheet to see if they were double charging me for the shipping/handling fee of $995, but it's too late now.

 

I think you did great ! We have the same in Silver/Black.

 

residuals being above market is a good thing for leasers.

Dealers try to obfuscate the numbers to get you to focus on monthly payments.

Let's assume you negotiated $50k for a $56k car. Add government fees and taxes and you're probably at $54k or so (depending on state).
Forget discussion of "money factor" (.00028 sure sounds better than 6%) and all those other leasing terms like capitalized cost reduction (sounds better than "down payment") and the like.

So, your negotiated price is $54k but what is the car actually costing you? Add any down payments, all of the monthly payments and the residual. The closer you are to your negotiated cost, the less interest you are paying.

 

Money factors are as real as an interest rate on any loan or credit card. At least that's what the credit card companies want you to think. I used to do commercial vehicle leasing as my first job out of college............

Residuals above market is good for leasers, not buying out your lease. Assuming you are ok with leasing a new car every 3 years or so, not bad. Some people can justify buying their own car at an above market price if they like it, I am just not one of those people.

 

Leasing is for people who want to drive a new car every three years. If you think you'll want to buy the car then you must be very, very careful.

When my sister last leased her RL, the difference in cost between buying a car and leasing it was about $25 - mainly because she prepaid the entire lease.

If the residual ends up being lower than the market price, then you've come out ahead if you want to buy the car at lease end, but normally they are structured to have slightly higher residuals.

One reason for leasing is if it is a new model with unknown reliability and it is worth it to you to pay more for the peace of mind of being able to give the car back wthout a substantial loss if things go badly.

 

I agree on all those points. As I am sure you are aware, very FEW can afford to prepay the entire lease, so she is a rare customer. I have numerous clients who own high end luxury cars, and about 80% of them lease them. If people think depreciation is bad on a 1 year old F150, they should see it on a Mercedes or Porsche or Rang Rover (OUCH), it is breathtaking............

 

She did not OWN the car at the end, which she would have if financing the car. Not saying owning a depreciating asset is a worthwhile endeavor, but you are an owner at the end of a finance contract, not a lease contract....

 

Sure, but buying the car out at the end of the lease is owning it.

It all comes down to $$$ assuming you can live with the lease terms (primarily the mileage restrictions). You need to work both sets of numbers and see what makes the most sense financially.

Buying a car gives you ownership but leaves you open to financial surprises - what will the car be worth when it comes time to sell it (that is the "residual") and the increased costs of repairs and what-not. That should be weighed against the normally higher costs of leasing a car every three years.

I went from driving 25k+ miles a year (not good for leasing) to under 10k miles a year. At this point I'm vaguely considering a lease.

I look at it this way - if you keep your car for a long time then don't even consider leases. If you frequently buy a new car and are good at selling your car privately, then you may want to run the numbers on a lease.

 

If there is any kind of lien on it, then no, you do not "own" it, the finance company does. As the prices of vehicles continue to go up and up, we are seeing a lot more 6 and 7 year financing and 5 year leases out there. Payment is important to probably 75% or more of the car buying public....roughly.

Agreed..........

I do drive 22-25K a year, buy 2-3 year old off lease cars, and run them until about 200,000 miles. I did it with 2 Accords and now a Hyundai Azera. My wife drives about 10,000 miles a year, so she has leased in the past. However, she drove her Odyssey 11 years most recently. I looked at the MDX lease mentioned above, she did not want to have to make a decision in 3 years on whether to re-finance our MDX at roughly $27,000 +tax. So we bought it, traded in the Odyssey, put some money down, and took advantage of the 2.9% for 60 months with Acura. The best move for us, not for everyone......... She loves the MDX (as do I) and I am sure she will keep it many years.

My 84 year old dad leases a new Ram pickup every 2 years. This from a guy who grew up on a farm, can completely wire a house, etc. Used to rebuild engines. He just doesn't want the hassle of changing tires, etc, so he lease and has full warranty, roadside assistance, etc. He never bought a new car until us kids were out of the house..........

 

Going back and forth with a dealer and best they could do is $44.5k (not including TTL, trade in, down, etc.). With 2017 coming to a close, and this particular dealership having ~13 2017 MDX's in stock, couldn't they possibly go a little bit lower ($41-42k range)? Do unsold 2017's just sit in the lot or are they auctioned off?

 

Pricing depends on so many things, one of the most important to the dealer is "can I sell this to somebody else for more money", what the competition is doing, what competition there is and what the dealer's arrangements with the manufacturer are.

They "can" always sell for less - the question is "will they"?

In my area there are six or seven dealerships in a 30 mile radius including one that bills itself as the largest in the country. Each dealer will go to great lengths to try to outsell the others. A few years ago I was in Colorado Springs where there was only one Acura dealer. On the TSX (which is what I was looking for then), the Colorado dealer was a full $3000 more that the DC dealers.

 

Which does bring up a question - what kind of discounts can one expect in the DC area on a SH Hybrid Advance. I may wait on the 18's for Android Auto but it depends on price - one can always wait for the next latest and greatest and never buy anything.

USAA used to give you a decent ballpark until they started with TrueCar a few years ago. TC is showing an average discount of $5.5k on the Hybrid Advance.

 

They all sell eventually. 13 MDX's are not a lot with the 2018's only being on the lot for a month or so, they have the whole month of December and even January to get those sold. Is this on a 2017 technology package? If you finance, there is 2.9 for 60 months, also a $2000 year end rebate. If you lease, there is $2500 lease cash to help. MDX has about a $3500 markup between invoice and MSRP. And I think there is some dealer cash but they usually don't tell you about that.

 

Dealers by me are holding gross on the Hybrid. Not sure about other parts of the country..........

 

Pretty much the same here in this area with limited inventory available. I guess they are holding firm until the '18's are released. All of the press releases over the summer said winter of this year for the hybrid. I have seen nothing further to narrow down the estimated release date. Winter is near!

 

I believe that $44.5k number I was given included the rebates, but I've seen one instance in another forum who got his 17 MDX/SHAWD + Tech for $41.5k in SoCal. I'm dealing with dealerships in the Bay Area (California).

 

That was me, I leased it got 10,000 off MSRP.

MSRP was $51,350
Sale Price was $41,350 before taxes and fees.

5 year maintenance included.
This was Nissani Bros Acura in Culver City, CA.

FWIW I was up in Fresno in October shopping for the MDX too while I was out there for a wedding...
I got wayyyy better pricing from dealers in So CAL.. The NORCAL dealers couldn't even come close.

 

Yeah - I would assume you get better deals down in SoCal compared to NorCal. I'm looking to finance, however. Did you have a number of dealerships compete for pricing?

 

Yeah honestly was shopping the Hybrid for a few months but nobody was budging much. So I decided to go non hybrid. I did have shop on Edmunds / Costco and in the end still came out better than both those programs..
I was maybe shopping 3 dealers it was between Weir Canyon Acura, Ahaheim (Costco) , Thousand Oaks Acura (Edmunds), and then Nissani Bros because of their oil change plan.

 

Need some input. Looking to pull the trigger on a used MDX. I drive a 2007 TL. I keep my cars for a long time.

2017 MDX SH-AWD, Advance package in WDP.
4000 miles. Options already on the car include roof rails, all season mats, hitch, cargo net.

Dealer wants 46k OTD

 

get it

 

I would definitely get it.

 

Looking at some numbers on some of the online sites says for retail (expected price from dealer) shows high 40's before TTT. If out the door is 46K, I would certainly move on that.

 

thanks for the input- purchased!

 

.00028 is just under 1% interest rate not 6.72%. To calculate interest rate from a money factor you multiply the money factor by 2400.

 

Thx.....math struggle.lol

 

LOL! No problem. At first I wasn't sure I calculated it right and double checked the calc via a lease calculation site.

 

It's an aggressive lease rate and residual for them, they are really pushing the new look. I have a friend who works at a high end dealer in the F&I department. He told me they lease about 80% of their cars, they carry Mercedes, Maserati, BMW, and Lexus.