jivaro

I was inquiring with a local dealer if they had any special leases on the 2006 TL w/ Nav. I assumed at this point in the year there might be some special offerings. I live in New York where the tax rate is 8.25% and was given the following information from the dealer and was curious as to whether this sounds good or bad at this point in the year. I was more interested in the 12K a year lease. Maybe I can do just as good on a 2007?? Any thoughts would be appreciated. Thanks.

Term 36 months
Miles 15K/yr
Residual 52%
Money Factor .00300 (super-preferred)
Money out of pocket $2,688 + plates
Monthly payment $516

12K miles/yr
Residual 54%
Money out of pocket $2,618 + plates
Monthly payment $498

jackasswhy

im in ca with 8.25% too. i got my 06 with nav 12k a yr 3 yrs for 325$ a month. with 5k drive off

bignips

That seems like a great deal for a lease...my only concern would be the money down...2700 seems like a lot, I only spent about 1700 for initial fees and such with my lease.

otherwise it sounds good I got the 12000 miles and I am already regretting not getting the 15000

jivaro

$325 a month with 5K down?? That is unbelievable. I can't believe that a new 2006 TL could be had for such a low monthly payment, even with $5k down. I'll move to CA if that is type of deals available.

jivaro

I did not think that this was too bad of a deal either, considering the $2700 includes taxes.

jackasswhy

i spent about 4 hrs at the dealer but i got that price in the end.

bignips

By putting 5000 down, you took almost $140 off each month's payment ( would have been $465) which would have made the deal you got reasonable but still pretty good...

No to be mean here, but putting money down on a lease is one of the worst things a person can do. You should really try to avoid it and pay the higher monthly payment.

jackasswhy

if i didnt put 5k drive off i would be paying higher monthly payment and be paying higher tax on that montly payment...

Ramairgt1

I'm curious as to what dealer(s) you got those quotes from

SonicDark

Those are terrible numbers

On my 2k5 TL with NAV I did:

$0 down, $450 a month + tax

Here are the November #s for a 2k7 TL

2007 Acura TL 4dr Sedan / (10)

24 mo/15k mi – Residual Value 68% of MSRP – .00385 Base Money Factor Rate
36 mo/15k mi – Residual Value 60% of MSRP – .00280 Base Money Factor Rate
48 mo/15k mi – Residual Value 49% of MSRP – .00270 Base Money Factor Rate
60 mo/15k mi – Residual Value 38% of MSRP – .00460 Base Money Factor Rate

24 mo/12k mi – Residual Value 69% of MSRP – .00385 Base Money Factor Rate
36 mo/12k mi – Residual Value 62% of MSRP – .00280 Base Money Factor Rate
48 mo/12k mi – Residual Value 51% of MSRP – .00270 Base Money Factor Rate

2007 Acura TL 4dr Sedan Navigation / (10)

24 mo/15k mi – Residual Value 66% of MSRP – .00385 Base Money Factor Rate
36 mo/15k mi – Residual Value 58% of MSRP – .00280 Base Money Factor Rate
48 mo/15k mi – Residual Value 48% of MSRP – .00270 Base Money Factor Rate
60 mo/15k mi – Residual Value 37% of MSRP – .00460 Base Money Factor Rate

24 mo/12k mi – Residual Value 67% of MSRP – .00385 Base Money Factor Rate
36 mo/12k mi – Residual Value 60% of MSRP – .00280 Base Money Factor Rate
48 mo/12k mi – Residual Value 50% of MSRP – .00270 Base Money Factor Rate

Check out www.googlejeff.com if you can't figure it out

Type in "lease example" and you can see how to calculate it

jivaro

Thanks for all of those numbers and the website. Tomorrow when I get some time I will sit down and calculate and crunch the numbers and see what they come out with. By the way, where did you get those numbers??? Are they from Honda finance? I think they will be very helpful. Thank you.

bignips

When you put money down on a lease, you are definetly making your monthly payment smaller, but that money down is basically money lost. To make this short, if your car was stolen say 2 months after you drove off the dealership, your $5,000 would be history b/c the insurance is only paying the residual (which is less b/c of your money down)...As Googlejeff says, nice site SonicDark

SonicDark

I should have clarified that. The numbers are from Honda Finance. You could find other numbers through third party banks, but I've never seen a better deal and I lease quite a bit. The TL doesn't lease particularly well right now though. For example, using my 330i which had a $46k sticker you could lease that for less than a $36k TL. The numbers arn't terrible, but they're not the best that they could be. Whoever was getting quoted 52% residual was getting creamed even worse though.

Thanks. What jackasswhy doesn't understand is that his $5k down was taxed at his local tax rate. It's not like contributing to an IRA which knocks your taxable income down. It simply is a cap reduction.

Elegant TYPE S

iTrader: (2)

Ditto, except I didnt come out with 5k out of pocket, I just put taxes and tags up front and my lease was $379 a month on a 2006 w/nav.

Also it depends on the bank they chose to use, mine is through HON not the best because they're conditions are little different and more strict on lease return, and the quote you got might have been through HONDA FINANCIAL and they are more laxed when it comes to the lease return. If you're anal on how your car looks whether its leased or not then no reason to spend the extra look on HONDA FINANCIAL because 9 times out of 10 you'll fix any damages to the car on your own because you're anal, which is me!

jackasswhy

im using us bank for any reference if someone wants

jpohl

I am not too sure about this... Insurance is going to pay what the car is worth, not residual or pay off. The leaser pays for gap insurance which will protect all parties if the value of the car is less than the pay off of the lease by paying the difference.

The insurance company does not care if the car is leased, bank financed, owned, etc. They will pay what the car is worth, so putting more money down does not effect how much insurance you will collect...

I went through this when my wife's 04 MDX was stolen. Fortunately the car was recovered, and we did not have to go through all of that hassle, but I did learn a lot through the process on how the insurance would cover us

acuralvr1

Some good points are made here. No money down is the only way to go. The first month lease payment and a bank charge will be due up front, but other than that this should be it. Some people pay a large up front fee because they can't afford the monthly payment which is silly- they should just buy a less expensive car.

New York: There's no true lease available in New York. The laws are such that a "lease" in New York is more expensive than anywhere else.

jpohl

Basically all a lease really is, is a loan with a balloon payment (residual on a lease) due at the end. The difference is that when the balloon (residual) payment is due, you have more options with a lease, you can pay it (and keep the car), you can return the car (you can not do this with a conventional loan with balloon payment), or you can trade it in on a new one.

Just like any other loan out there, the more money you put down on it, the lower your payments will be. The problem with putting too much down is that at the beginning of the lease you may have a pay off (at any time of a lease, you can pay it off and keep the car, just like a loan) that is a lot less then what the car is worth. This is good if you need to get out of the car early in a lease. Having the payments too low means the car is depreciating faster then you are paying it, and each month you will be a little less ahead. For some, this may be fine. Every one has different financial obligations and situations.

At the end, the residual value should be close to what the car is worth at the time. You can decide to try to sell it your self for more than what the residual is, and use the difference as a down payment again. You can also do any of the three things mentioned above.

w112nxs

try this....

This is the deal i made with my dealer...
A demo 2006 Tl w Navi... 31 grant... has just 3k miles on it. and one way its a brand new too...
check at the dealerships near u... as 2007 models are in , they are interested in getting rid of 2006 ones....

as per my dealer - for a lease, you nead a excellent credit score of atleast 730+, and financing is a better option when compared toit.

jackasswhy

your statement is a bunch of bullshit. people who put large money up front doesnt mean they cant afford the payment. it is simple i dont want to have a 700$ a month for a car over my head when it could be 450... if i wanted i could get a brand new amg so lets not start talking shit. o yah im only 20 too...

jzacuto

I got a similar deal on my 2006 TL-N. I paid $3000 out of pocket (including a little negative equity on my trade) and on a 12K lease for 36 months, my payment with tax is $500.13.

Sounds "fair" but since the 2006s are dwindling and the 2007s are in demand, you should be able to score a stellar deal while they're still available.

Good luck!

(P.S. - From previous leasing experience, the capital cost reduction or "down payment" can be a GREAT bonus when you near the end of your lease and want to trade in on a new one or sell your currently leased car. Not only will it help keep your payments lower, but the less you owe on it, the more likely you are to not be upside down. And since Acuras hold their value pretty well, taking $2000 to $3000 off the top if you can not only lowers your payments but it MIGHT put you in a more financially advantageous position when maturity nears. So don't sweat paying a little up front if you want to or need to.)

SonicDark

You don't understand about leasing fully then. Unlike with a purchase you pay a set amount whether you pay $19976 and $1 a month for 24 months on a 24 month lease or $20k / 24. Giving the bank or financial institution more money up front means thats less money that you yourself are collecting on interest. It's typically not much, but its the principle of the mater for me. Some people argue all day over this point, and their point isnt logic, its about their minds. I also don't compare leases unless you do $0 down with just first months + TTL. Dealers love to use the, "You can lease this SL55 for $699 a month!" The cap reduction is $20k, but mentally people think $699.

OasisKid

I didn't put anything down on my TL, 2006/No Navi, had 5 miles on it. $399/per 36/month lease. First month, security, tax, title, registration, other fees, came to $1500. This was in North Jersey. Got it last week. It thought it was a decent deal.

SonicDark

Your dealer is lying to you. You don't need to have a credit score of 720+ to lease a vehicle. It just helps to get the best possible money factor rate, which is often refered to as Super Prefered. It also depends on who is doing the lease. As an example, I helped a friend lease a 2005 RL and he was new at credit. Acura would only qualify him for a $30k car. Anything above that and he would have to put it down. Infiniti qualified him for a $42k G35 coupe the next day and he was on his way. He paid ~ $5-10 more per more based on his lower credit score of 690 instead of 720+ which would have given him the base money factor rate.

Elegant TYPE S

iTrader: (2)

I got the same deal pretty much except 20 bux cheaper but my out of pockets was a little more since tax in NY is more than jersey. Just curious what bank are you leasing through? HON? If its through HONDA FINANCIAL that's awesome! They wanted $439 with HONDA FINANCIAL which was significantly more than the $379 that I'm paying right now so I just went with HON.

My previous lease was through HONDA FINANCIAL and the lease return was so much easier.

BTW HON is different from HONDA FINANCIAL for those that might get confused, cuz I thought it was the same for a bit. HON had the better lease factor rate at the time.