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Discussion Starter · #1 ·
Thinking of trading in my 2010 Ex with 90k+ miles for a 10th gen lease. I have never leased before but would like to lease an Ex. Some of my questions are is leasing with Honda good? anyone have any issues with it? Can i build the car i'd like to lease (Fog lights, deck spoiler, etc) with the intentions of buying it out at the end of the lease? Any and all advise/help is welcome.
 

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From a pure financial point of view, leasing with the intent to buy is the most costly way to purchase the car.

I am coming to the end of my first lease. It's on a 2013 Honda Accord EX-L. Basically Honda will advertise lease pricing on the entry level model (LX) but when they are having promotions on any given model, the same effective promotion (same amount off or same incentive) is available on the other trim levels as well... EX, EX-L, Touring, etc. I leased partly because I had never owned a Honda and wasn't sure I would be committed to it for many years. The ability to commit to only 3 years and easily make a move was appealing. My Accord residual value is above what my payoff on my lease is by a couple thousand. So simply turning it in would be giving away money. I will either trade it in or buy it out and resell it on my own.

When leasing there are several factors that effect (almost hide) both the real purchase price and the APR you are paying on your lease. I would encourage you to not specify what you are really thinking (Lease vs Buy) but negotiate a purchase price first. Then after you've agreed upon a price work out the details from there. If you mention a lease make sure you have all of the factors that make up calculation into your lease payment.

Capitalized Cost
Residual (or residual value)
Depreciation
Terms of the lease
Money factor

There are apps available for both iPhone and Android that allow you to plug in the above information and quickly see what the actual purchase price and effective APR on a lease is. It's not difficult. Just take a bit of time and educate yourself on the numbers and go in prepared.

Best of luck to you!
 

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+1 negotiate a purchase price first. Do not disclose if you are buying or leasing.

Agreed, this is the way to go. As far as lease incentives it is hard to say, I leased the HR-V I have now as soon as it was released, it is approaching 6 months now I've had it and there are still no lease incentives at all on it. I am paying more than some that will lease later, whenever incentives finally hit, but I'll also be paid down more and the car will be worth a lot more than the payoff at lease end.

I had a '13 CR-V and I added the accessories I wanted with the intention of owning it long term once lease was up, but then the HR-V came out and the wife liked it better. They actually offered be 2k to trade it in early and take the HR-V. Not a bad deal.


I would also assume the Civic lease incentives/deals will be quicker as it is a volume seller and they will actually have enough to sell unlike the HR-V so surely it will not take 6 months? Civic has a history to guess residuals and such better so that should help, but the absolute best deals for leasing will not be for a couple of years really.
 

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+1 negotiate a purchase price first. Do not disclose if you are buying or leasing.
That along with talking to different dealers will be a winning strategy as you have a good chance with find that one which will give you a good deal.
 

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If you want to buy it back have you considered financing? maybe over a slightly longer term if you're interested in keeping payments low...
 

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Discussion Starter · #7 ·
Liquid Squid i'd prefer to own it's just that right now i'm in college and don't have much of a down payment and what i owe on my 2010 Ex is more than the dealer will give me for a trade in.
 

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Based on what we have seen from Honda this past year with the 16 Pilot and 16 HRV, but mainly the higher volume selling CRV, I dont expect any lease specials anytime soon. You can lease the 2016 Civic, of course, but its more a standard lease.

I did the math the other day and a 16 Civic LX, with parameters being the same, came out to about $42 more a month than a 15 LX. To me, without question, the 2016 model is worth the extra $42 a month, but thats for each buyer to decide.

If Honda is going to come out with some type of lease special, however, it will probably be in May. That's usually when they start any noticeable programs.

Another thing to consider is that for the entire past year, only the LX CRV received a lease special. The higher trims have been standard programs. Even so, this, and the fact that the CRV has not had any special financing, has not stopped it from being the top selling SUV 14 months in a row.

I tell customers this all the time. If you are shopping around for the best payment, it will never be a Honda. The equivalent Nissan or Toyota will always be cheaper. But there are many reasons why this is so, and even more reasons why retail customers by Hondas more.
 
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