Honda lease deals on 2018 Si

First post - not a newbie to hondas as my first car was an early civic with the 2 speed semi auto! Have had lots of cars including Honda’s (previously mentioned civic, CRX, CR-V, Mercedes, Saab...) do most of my work myself once warranty is over. Decided that it’s getting old driving old Mercedes e320’s that always need something (spring perch broke last week precipitated this).

About to get a 2018 si coupe. Negotiated a price of 22,305 including destination charge (does not include tax or title).
So my question is around leases, Honda currently has a factory lease deal of 2399 down 229 per month residual value of 13747, net capatalized cost of 20,918. I know they will up the payments to wrap in tax etc fees if you so choose.

So I’m trying to see what my lease deal should be I figure worst case the published deal price is the net capitalizes cost plus down payment or $23,317 (20,918 + 2,399). My negotiated price is about 1k below this so I figure either I can either reduce the down payment by about 1k or wrap in the tax etc without the payment going up (obviously some adjustment for actual tax and anything else).

So, what have people seen? I have not leased previously but seems attractive - and figu I’ll buy car at end of lease.

Thoughts!
I did some searching and did not find anything related.
Thanks
Paul

DO NOT PUT ANY MONEY DOWN ON A LEASE!

No money down and free oil changes I got mine for 300 a month taxes included. 3yrs/36k I've seen them as low as 270.

https://www.civicx.com/threads/what-is-your-lease-payment.27564/

thatlilwhiteone said:

DO NOT PUT ANY MONEY DOWN ON A LEASE!

No money down and free oil changes I got mine for 300 a month taxes included. 3yrs/36k I've seen them as low as 270.

https://www.civicx.com/threads/what-is-your-lease-payment.27564/

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I'm glad that you can lease the car to make it affordable for you and everyone..the si is a great car.

You should aim for 1% of purchase price as a good lease.

And yeah, $0 down on a lease. Always. If you put money down and total the car tomorrow - guess what. You don't get any of that down payment back. $0 down, you're in the same boat.

Always $0 down on a lease.

And fyi, Honda has been advertising this lease deal since the 2nd month of releasing the Si. Don't let yourself feel a sense of urgency about the purchase for fear of losing it. It's been there forever and will probably continue to be.

87elco said:

I'm glad that you can lease the car to make it affordable for you and everyone..the si is a great car.

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Stop quoting me fruitcake.

thatlilwhiteone said:

Stop quoting me fruitcake.

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Internet tough guy lol Youre from vineland right?

May be back to just purchasing once I wrap everything in. Did a quick spreadsheet to figure out money factor and costs depending on down payment or not etc. I’m figuring I may as well just buy as my plan was to purchase at end of lease anyway.

I understand 0 down from a financial standpoint - if you can invest it at a higher return. However the comments if you wreck it in the first month seem confused (granted I have never leased). In a lease you don’t own the car but are required to have insurance ($ limits may be spaced in lease), so if you wrap it around a tree or some idiot t bones you the insurance cities in and fixes or replaces it - right?
Paul

87elco said:

Internet tough guy lol Youre from vineland right?

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No sir officer Batman never heard of the place. If you would like to continue this conversation please pm me. You already got one thread locked with your shenanigans. Otherwise please leave me alone officer Batman.

PaulME said:

May be back to just purchasing once I wrap everything in. Did a quick spreadsheet to figure out money factor and costs depending on down payment or not etc. I’m figuring I may as well just buy as my plan was to purchase at end of lease anyway.

I understand 0 down from a financial standpoint - if you can invest it at a higher return. However the comments if you wreck it in the first month seem confused (granted I have never leased). In a lease you don’t own the car but are required to have insurance ($ limits may be spaced in lease), so if you wrap it around a tree or some idiot t bones you the insurance cities in and fixes or replaces it - right?
Paul

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I never totalled a lease but I think he is saying the insurance company will pay off Honda financial and you will have no more payments and will be able to just walk away minus your down payment.

and remember rather you give a down payment or not your residual at the end of your lease is going to be the same. I down payment well lower your monthly payments so basically a downpayment is is you prepaying at the start so like the guy was saying if you total it all that prepaid money you don't get none of that back.

In the end if you negotiate a good lease deal there's really no money difference between leasing and buying even at the end of the lease with the residual.

That makes sense if that’s what happens if a car gets wrecked under a lease.
Paul

If you plan to keep the car long term and/or drive more than 12k a year I’d finance it.

The reason it’s said not to put money down on a lease is as everyone says, if you total it in the first few years. On a lease you are paying a set amount of money over the term and the down payment simply reduces the amount you pay monthly over the term. So, if you total it (and it’s leased through American Honda) they will accept the insurance amount and let you out the lease. Honda includes Gap in their leases. If not leased through Honda, you’ll need to read the lease agreement very closely for that particular company.

Simple terms - You are paying for depreciation and money factor(basically interest)- You are paying the same amount in total for the 36 months lease, whether you put down 5000 or 1000. The payments will go down or up depending on how much you put down. No down payment, 300 dollar payment for 3 months and you wreck it.. you are out 900 dollars. Put down 5000 and wreck it in the first 3 months you are out 5300, because we are assuming your payment went to 100. Side note: 5000 in a money market is much better than putting down on a car anyways. Other people were saying what I am saying, but I just wanted to break it down in numbers.

thatlilwhiteone said:

I never totalled a lease but I think he is saying the insurance company will pay off Honda financial and you will have no more payments and will be able to just walk away minus your down payment.

and remember rather you give a down payment or not your residual at the end of your lease is going to be the same. I down payment well lower your monthly payments so basically a downpayment is is you prepaying at the start so like the guy was saying if you total it all that prepaid money you don't get none of that back.

In the end if you negotiate a good lease deal there's really no money difference between leasing and buying even at the end of the lease with the residual.

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I didnt realize this when I leased mine. If you pay the down payment and the car is totaled before the lease is up youll basically lose that money completely. Oh well, my first lease, live and learn. Its nice knowing what they consider the car to be worth at the end of the 3 years though.

At the rate I am driving (~150 miles a week) the car should be worth more than the residual and I could sell it to a dealership IF I wanted at the end of the lease. Still have to read up on that. Ill have to see what the 2020/21 SIs are like and see if I can get into a used accord 2.0 sport w/o paying the turn in fee.

I get it completely! And yes with that scenario makes total sense to avoid down payment.
Another issue with buying at the end of the lease is you will effectively pay sales tax twice. First time wrapped into the lease where Honda or whoever owned it, second time if you buy the car at end of lease. Assuming it depends on state and local tax laws (NH would be free, here in MA 6.25%).

I tend to keep cars for a long time, so will prob just finance. Buying a new car because I’m getting tired of having to do something on one of the old Mercedes all the time.

Thanks
Paul