QuestionQUESTION: We're preparing to get leasing quotes. Our 2006 Accord's lease is up and money is tight right now (new house). What tips can you give us? I've checked out many dealerships and web sites for info and tips, but have not received anything approaching a comprehensive answers. One dealer told me they weren't making any money on the leases. What should we look for, and what should we avoid? We live in northern VA and are open to any make/model (love our Accord, though). Thank you!
ANSWER: Hi Len, If you want to keep your monthly payments low stay with an import such as Toyota, Honda, Nissan. The residuals are higher on these. If you campared a Honda and a Chevy and they both cost the same the Honda payment will be lower. Car dealerships for sure make money on leasing. You have a money factor that should be around .00200 depending on your credit (times that by 2400 and that is the interest rate they are giving you). This is where they get you. If you would tell me the car you are interested in, I'll run you lease numbers and tell you what your payment should be. The Accord is a fine car, the new ones are awesome! Be glad to help. Shari Arnold
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QUESTION: Shari,
Well, your e-mail certainly provided me with an education on leasing, which is much appreciated. I'm surprised that the American autos lease at a higher rate!
We're looking for another Accord; our current lease ends in two weeks and I'd like to be prepared when we go back to our dealer (or seek a new one). It would be a four-door automatic Accord. If you would like to suggest another import of comparable quality, we'd appreciate that.
Ultimately, Shari, we're hoping to keep our payments in the $200-220 range and are confident that in today's lessee market, this can be accomplished. A minimum of money down would be good, too, since I've been hit with a big tax bill.
Do dealers extend leases past three years? Our car is in good shape, and if we can pay less, we'll keep it another year (then buy/lease something nicer).
Thank you!
AnswerLen,
A Honda Accord 4 door base model runs around 21,000. On a 3 year lease your pymt will be mid 300's (52% residual) A 4 yr lease 280 to 310 (42%). The Honda you currently have, they would extend another year, but typically that payment would be about the same as a new one.
You should never put any money down on a lease. $1000 only drops your payment about $25. When you see an advertised payment of $199, look at the small print, tax, title, 2500 down, and your first born child. You should roll everything into the lease.
I really know of no vehicle that your payment would be as low as $200. A corolla or civic might get you to mid 200's. And of course everything is based on your credit.
Shari
