2016 Honda Civic Sedan Lease Residual Values (as of 11/12/15)

[administrator]

Here are the lease residuals for the 2016 Civic Sedan models. Happy ordering (or leasing)!

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[firsthonda]

Here are the lease residuals for the 2016 Civic Sedan models. Happy ordering (or leasing)!

View attachment 1605

I'm sorry can you clarify this for me?

 

[AndreaCristiano]

Yeah how do you use this to figure outa payment?

 

[administrator]

Yeah how do you use this to figure outa payment?

It's only one of the factors used to figure out payment. There's also money factor, negotiated price, etc.

 

[AndreaCristiano]

Well then we need those lol

 

[HondaRedux]

How do you read the data shown?

For a given model what is the metric for the change in residual value left to right?
The base LX (in the chart) starts at 70 on the left and falls down to 45. Is this based on age or mileage or age and mileage or condition?

It is interesting that Sensing (with Nav) is 2 points lower across the board.

 

[administrator]

How do you read the data shown?

For a given model what is the metric for the change in residual value left to right?
The base LX (in the chart) starts at 70 on the left and falls down to 45. Is this based on age or mileage or age and mileage or condition?

It is interesting that Sensing (with Nav) is 2 points lower across the board.

Sorry, chart was missing the # of months row. Should make sense now

 

[firsthonda]

Oh I get it, so at say 24 months the LX is worth 70% of original msrp and goes down from there. And then if only putting 12000 miles add to the point system etc

 

[SPEEDANDTECH]

how can I figure out a payment? what is the money factor and the formula.
Let's say I know the msrp of the car, the negotiated price, residual, now need the money factor and formula.
Can anyone help? thanks!

 

[administrator]

how can I figure out a payment? what is the money factor and the formula.
Let's say I know the msrp of the car, the negotiated price, residual, now need the money factor and formula.
Can anyone help? thanks!

Dealers sometimes have different money factor (interest rate) that they charge on a lease. You just have to ask and they can tell you.


In terms of calculating monthly lease payments, there are online calculators and smartphone apps to figure this stuff out but the general formula is:

Lease Payment = Depreciation + Interest + Tax


Here's an example from the web:

Now let's take a look at how each part of the lease payment is calculated

1. Depreciation
The depreciation cost is actually the largest portion of your lease payment. It's easy to calculate:

• (Capitalized Cost - Residual) ÷ Term of Lease

Remember, Capitalized Cost is the negotiated selling price of the car. The leasing company doesn't care if you get ripped off or not, it's up to you to get the best deal possible to ensure the lowest possible depreciation cost.

• ($25,000 - $12,500) ÷ 36 = $347

$347 is your monthly depreciation cost



2. Interest
The next part of the lease payment is interest. This is where the leasing company makes a good portion of its profit. The other way it makes money is through a "lease acquisition fee" and a "disposition fee" at the end of the lease. The interest payment is calculated differently than what you would expect. The calculation is:

• (Capitalized Cost + Residual Value) × Money Factor

You read that right, it's the Cap Cost PLUS residual value. It doesn't seem to make sense but it's actually an accounting method the leasing companies use to simplify things on their end.

• ($25,000 + $12,500) × .0029 = $109

$94 is your monthly interest payment



3. Taxes
The last part of your monthly lease payment is tax. In most states, you will need to pay taxes on both the depreciation AND interest payment. Here's the calculation:

• (Monthly Depreciation Cost + Interest) × Local Sales Tax Rate

• ($109 + $347) × 7% = $32

$31 is your monthly tax payment



Add it All Together
Now that we have all 3 factors that make up your lease payment, we can add it all together to come up with the final:

$347 + $109 + $32 = $488 Monthly Lease Payment

 

[SPEEDANDTECH]

thank you. this is very helpful. but 488$ better not be a civic lease payment. a friend leased a brand new e350 sport with zero down for $569 a month 36 months.

 

[administrator]

thank you. this is very helpful. but 488$ better not be a civic lease payment. a friend leased a brand new e350 sport with zero down for $569 a month 36 months.

That's just a random example of a lease deal on a car that costs $25,000 with a 50% residual after 36 months.

If you look at the 2016 Civic Sedan chart, the 36 month residual ranges from 58-63%, so a $25,000 sedan leased for 36 months will definitely have a lower payment than the example used.

 

[zionoraca]

I am also trying to figure out what will be a good deal for a lease. I am currently leasing a 2013 Accord EX for $269 a month. I traded in my wife's old Malibu which they gave me $500 for. I put no money down only the trade in. I am interested in leasing a Touring Civic and hoping to have payment go up only slightly, since EX Accord and Touring Civic are very close in price. I know the Civic just came out but the Accord was also very new at time of purchase in 2012. I hadn't yet seen any on the road when I made my purchase. Does this sound like a reasonable lease request looking at the chart above?

 

[dpgtime]

thank you. this is very helpful. but 488$ better not be a civic lease payment. a friend leased a brand new e350 sport with zero down for $569 a month 36 months.

Yes I got a quote today at $480. The salesman said to me "Don't get the car. Go to BMW."

 

[Revver]

Yes I got a quote today at $480. The salesman said to me "Don't get the car. Go to BMW."

Hard to compare with BMW lease terms but yea for $480 or anywhere close to it, buying is definitely looking like the way to go.

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