bgut1

When the TL first came out I remember the residual and MF on a TL with Nav, 15K miles and 42 months being 55% and .0020 (4.8%) (w/ Honda Finance). I remember reading that after the first of the year the residual dropped to 52% and the MF increased to .0024 (5.76%) generally adding about $50 extra a month on the lease payment. Would anyone in the know or recent lessors be so kind to confirm this info. Also, does anyone know whether Honda Finance accepts multiple security deposits to lower the MF? Thanks.

bgut1

bump for help.

TLXLR8S

i think the dealers are full of it. they just want you to rush and lease it right away. i was told by my dealer that the residual when the car came out was 60% and now in february its down to 55% and drops about 2% every month. they told my if i wait until next month tthe lease will bw about $35 more a month. if you look at what people are saying about what thay paid then the lease would be crazy now. how can a lease go up $50 every month. they just want you to lease it by them and lease it now. dont fall for it

Novice

bgut1:

The best thing to do is to call at least 3-5 dealers to confirm the residual. The money factor should be around 0.00215 if you have a very good credit. If you have either financed or leased a car through Honda Financing, they will waive the sec. deposit. The TL's residual will NOT drop to 30% range no matter what.

TLXLR8S

can you plz explain what is the MF and how can u determine the lease?

Novice

There are many websites out there you can learn all kinds of stuff about leasing. I find that this is one of the best one:

http://www.leaseguide.com/calc.htm

Just try to read it through.

TLXLR8S

thanx big help

Shoofin

The residual is changing at the end of the month.

TLXLR8S

how do you find out about this. like when do you know if it will change?

Shoofin

I am in the business..I know how long these things are good for..My program sheet shows it being good I think until 2/29 or 3/2..I forget..I'm not sure about the rate, it might change as well. I doubt it though. I'm home now, so I have to double check when I get to work tomorrow

bgut1

Thanks Shoofin'TL. I would appreciate any help you can give.

automophile

1. Be CAREFUL of the MF you finally agree to. Some dealers will quote you a great price, and raise the MF (interest) to make their profit the back way. Check with several dealers to be sure you get the lowest rate! By the way - the rate in % = MF x 2400, so .0023 = 5.52%.

2. Be careful of leases that end mid-year such as 39 or 42 months. You will have already paid the license fee for the entire year, and will lose part of it. In some states this is not an issue, but it is a lot of $$ in others.

jimthegreek

The current lease residual as of this morning for 48 months,15k miles is 50%, next month is 49%...

The reason why it changes is because as the car gets older in the year, the vehicle is depreciating more, which means now, by the end of 48 months, this vehicle will be worth less, so the bank shafts you with the payment of the difference.

RULE OF THUMB!!!

Always lease at the beginning of the new cars year, ie. around sept.. and do not lease a vehicle after about april, since the residuals now suck a$$. You always want to buy a vehicle during the summer or sept when the new models are coming out and you can pick up last years model for cheap...

Try leasing a 2004 TL net sept, i guarantee you that the 2005 TL will have a lower payment than the 2005 , even though the vehicle may be discounted a little more than the 2005, the residual on the 2004 is gonna suck so bad, you'll end up paying more for the 2004 payment wise.

bgut1

Jimmy - Thanks for the info but your "years" have me a bit confused. Could you do me a favor and re-explain? BTW, you wouldn't happen to have the residual for a 42 month lease so I could compare apples to apples?
Shoofin'TL - any news on your end?

bgut1

Jimmy - The problem with buying early in a model year is the price is usually higher. Is there a sweet spot where the residual isn't too low and the price has been reduced or are you screwed either way?

jimthegreek

Right now!!
I've got TL's for lease for 750 over invoice right now in Southern california only.

HacksawHilliard

Dealers have no control over what the residuals are or will be. Only the company financing the lease has control over that.

moeronn

If that's for a Navi model...

bgut1

That's the finance company's perogative however their decisions seem so arbitrary. How can the value of the car decrease that much month to month? It's also hard to understand the disparity of residuals between comparable cars. For example, I understand a similarly equipped G35's residual is several points higher than the TL (unless of course the residual is artificially inflated by the manufacturer to spur sales).