triton3k

Im in the process of purchasing a TL and was looking into lease offers. I currently have a 2005 Honda Accord which im looking to trade and I took a trip into a dealership today and the salesman told me about doing a 36 or 42 month lease and when the lease is up and I decided to keep the car that I could do some sort of refinancing to purchase the car but with monthly payments rather than a lump sum. Has anyone tried this or is the salesman trying to con me into leasing the TL?

trancemission

I leased a Jeep Wrangler back in 98. You agree on a residual value at teh begining of the lease. So at the end you have the option of buying the car at that value. Im sure they would be willing to finance you on the residual but the car will be worth a lot less. My residual on the Jeep was 10.5 and it was worth (appraised) at 7.4k. So he is right, you can do that. The only advantage with it IMO is that it keeps your monthly payments down and you can just turn the car in when you're done But the drawback for financing the residual is you will have car payments for an eternity. I hope that helped..

WdnUlik2no

Thats pretty much how all leases are. At the end of the lease you can either turn it in, or buy it with cash or refinance. Triton is right though if you refinance the car at the end of the lease you will have spent a total of 6 to 8 years until its yours. thats a VERY long time to pay on a car.

If you do lease I wouldn't go over 36 months, and I wouldn't buy the car at the end either.

Ghahary_21

I'm planning on leasing the 06 TL (auto/navi) for four years/12k a year. The residual is 56% which is 20,132.

MR1

The residual is a guess up front. The car may have a market value of $18,000 or $23,000 at the end of the lease. What you are doing with this deal is paying the depreciation on the Acord + the TL in your payments. You are probably paying dearly for changing your mind. But to answer your question, yes it can be done if you can and want to get financing after four years.

triton3k

so basically my best bet is to lease it and just turn it in at the end of the lease. I like the idea of leasing because the payments are typically lower. So maybe i'll just try the lease thing out since I get tired of the car after 2-3 years.

So if i do a lease on a 2005 TL, what should I consider to be an ideal price of the car and how much should I not spend a month on the lease?

WdnUlik2no

Yep if you are set on leasing, don't end up buying the car at the end because it defeats the purpose, and in most cases not worth it. I think a good lease payment would be in the low to mid 400's. But that all depends on how much you put down, and what they give you for your Accord.

Another alternative is to try out leasetrader.com or swapalease.com. A lot of these guys want to get out of their leases for one reason or another. There are some pretty good deals up there and you can get in a short term lease and not even have to make a down payment because the current lessee has already taking the hit for you. In some cases they even give you an incentive for taking over their lease. This is a good route if you don't mind leasing slightly "used" cars and you want a really short term lease without any down payments.

DarkWraith33

Wow... My 06TL residual after that same amount of time was only in the mid 17s....

ludachrisvt

iTrader: (2)

^ so was mine (04) ... You must have 15k/yr like me ... if not if you got scareeewed

triton3k

So i called the dealership today to get me figures on a lease on a 2006 with trading in my accord and they told me that the payments would be $639. I laughed my ass off at that and told him that there is no way im paying that much to lease a TL. It seemed like he danced around all my questions when i asked how much was i getting the car for, how much was the interest rate and why was the payment on a lease so high. But i'll try another dealership and see what happens. If anyone in New york or New Jersey know of any good dealership and salesman then please let me know so I can give them a call and setup an appointment.

Nautica91

what dealership did you go to? I bought an 05 AM 5AT/non-navi in August from Curry Acura in Yonkers and got 407 a month

triton3k

I went to Acura of manhattan. Can you give me more information on how you got that price if you leased. How much did you put down, interest rate, etc. I'd appreciate it so much. Im from the Bronx as well.

MR1

The depreciation on that Accord will not disappear. You have to pay for your mistake or changing your mind. There is no free lunch. The Accord will be rolled into whatever you try to get unless you sell outright, sorry.

Pizza4Everyone

i purchased mine through a broker. it's the cheapest way to purchase a brand new vehicle. with 750 credit score, i had unbeatable offer.
my lease offer was 359/month(tax+registration already included) for 60months.......11k residual with 4500 downpayment. 15k/yr mileage......beat that shit!

WdnUlik2no

yeah, I was about to put that in my reply, but the 5 minutes expired. It was generally not a good idea to lease with a trade in especially if you have negative equity. Even if you don't have neg equity, then you still should not trade in a to a dealer, they will low ball you on your trade no matter what and its just too many variables to factor in when trying to get a good deal. If you really want out of your accord then I would suggest selling it seperately, and then leasing the new car with out a trade in. Because your accord is a lease you still may have to come out of the pocket with your negative equity, but it may end up being less than what would your come out of the pocket with trading it in to a dealer. $639 is a VERY high lease payment for a $33 - $35K car. I am glad you didn't take that "offer"

triton3k

Hey MR1, i definately realized that I will be paying for my mistake on getting that accord.


So you think that the payments will be lower if I just choose to do a lease without a trade in and down payment?

Does anyone have experience on selling a car that is being financed? Reason I ask is because if I decide to do a private sale of the car, how much of the cars value do I have to pay? Am I only gonna pay the cars cost or would I also have to pay interest on it even though the car was paid off early?

acura101west

just facts
all leases are called closed end leases,you res is set in stone by the bank,as long as your miles are the same ie-12k/15k/18k/20k
what makes your payments is selling price of car,called cap cost
money factor(interest rate so called) is set by bank too- based on credit score
honda is most popular
they have super preferred-preferred-and standard
so if your credit score is lower your payment is higher
only other factor is term
and there you go ,full break down on a lease
and yes i work at the dealer
dont forget you pay a disposision fee to get ride of car at the end,and a aquision fee to start the lease ( around 595 to 650)based on the bank they use
what else do you need to know,more then happy to tell you,
my two cents,i own my tl but leased wifes mdx
if you can afford it buy it,it comes out to be cheaper at the end(final cost of the sales)
and your ins in higher with a lease too
you have to carry 100/300 not 10/15 liaibilty
sorry if my spelling sucs,lol

triton3k

so in my situation, do you think im better off just leasing the TL without trading the Accord in?

sjkforever

just be aware of your miles when you lease......i have 15k/yr lease but i am already over so much....i didnt realize i drive around so much.....

WdnUlik2no

Selling a car that is financed and selling a car that is leased is pretty much the same process. Expect you have to go through more red tape with selling a lease. When selling a financed car, the buyers pay you the money and you send that to the finance company + any negative equity out of your own pocket. When that is paid, the company sends you the title and you transfer it to the buyer, or I think you can have the company send the title directly to them.

Selling a leased car is pretty much the same except it generally costs more because taxes are tacked on to the payoff amount. Also from my personal experience you and the buyer have to go to the dealer where you leased the car and the buyer makes out their check to the dealership, and you put up the other portion to cover the remainder of the payoff. The dealer then sends the leasing company a check for the full amount, and when the leasing company gets the money they mail you the title, then you transfer the title to them. The dealer can also transfer the title to the buyer at the dealership, but because they are effectively selling HIM/HER the car, they charge the $599 desitination fee as they do with all cars they sell. Doing it the first way is cheaper, basically all that is happening is the buyer gives you the money to buy the car from the leasing company and you transfer ownership to them.

As far as how much of the car's value you have to pay, it doesn't matter. You choose how much you want to sell it for; it doesn't matter. All the company (lease or finance) want is their money, they don't care how you get it really. Find out your payoff amount and work down from there, it is not realistic to think that someone would pay that amount to buy your car. You may have to eat some of the cost, but you will get more for you car on a private sale than trading in to a dealer. When I was in the process of selling my Mustang, I found out my Pay off and went to KBB and also got my trade in value and set a price between the two. I got impatient so I eventually just traded it in to a dealer for a 2004 Maxima lease (Double wammy and BIG MISTAKE BTW). They gave me $12000 for the car, had I been patient I could have gotten $15000 for it on a private sale. I have learned my lesson, and from now on I will never trade in. In fact I ended up selling the Maxima to a private buyer before I financed my TL. Turned out to be a very good decision because all my payments are paying for just the TL, had a traded in my payments would have been much higher, because I am effectively paying on 2 cars (3 if you count the Mustang that I traded in for the Max). I just ate the negative equity and started fresh.


As for your last question, once the car is paid off, then you have no further obligation on the loan. It will show as PAID AS AGREED $0 balance on your credit report. You will not have to continue to pay any interest on that loan once its paid off. Hope that answers your question.

WdnUlik2no

Also forgot to add that because I didn't do a trade in for the TL, all of my downpayment went to the TL, so now I have positive equity in the car about $3000 worth. So yes if you can sell the accord first, then get the TL, it would be your best bet. If possible, just eat the negative equity and start fresh.

triton3k

Thanks for all that information. Im gonna really look into doing a private sale.

acura101west

selling a lease and selling a buy is the same ,all your doing is paying off balance,,besides your lease companys disposision fee'
buyer pays all taxes,always you can get more selling car private party,it just takes longer and its more hassle,sometimes i just trade in,and some times i sell private,
your trade as far as selling private,depends on what it is,based on what the same car new is selling for-ie chevys last month with crazy rebates and employee discounts around 8k off makes you same chevy worth nothing,just example
you need to deside what works best for you
i didnt say this,but dont be afraid to shop your dealer,ie- use a broker ,that will give you a ruff idea of what the car is selling for currently
good luck and let me know if you have any more questions

03TL-S

That high monthly payment is likely due to your negative equity on the accord. Basically, unless you pay off the negative equity, they tack that on to your monthly payments. So say the TL you lease is 33k. If the negative equity on your accord is 5k, then you are basically leasing a TL for 37k. If you lease a TL without a tradein, its quite easy to get a monthly payment in the high 3's to low 4 hundreds. Three of my friend's do

acura101west

03tl-s is right on the button
its called cap cost
you take 33k plus neg of 5 k plus current drive offs
that makes your selling price (cap cost) around 38900.00(ruff) if you have good credit,and thats why they might have quoted such a high payment

quake97

Here's what I did when I got my TL. I had a 2000 Chevy Monte Carlo SS fully paid off. I didn't really want to deal with selling it privately, so I figured I'd try the dealer. At first they tried to seriously low-ball me, which I expected. Then they offered to give me more for it, but then also upped the down payment, so I wasn't really getting anything. In the end, I put down $3k, got $5k for the Monte ($8k trade-in minus the down payment). I'm paying $410/month.

Joe

acuraddict

that residual sounds high....unless you're talking about a 3 year lease.