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

[civicnoob123]

is the november residuals identical to this month at the moment?

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[gabrielrrr]

I'm paying $234.46 monthly lease for my EX-T including taxes. Residual value is 65% for 36 month 12,000 miles a year and 4k down. Money factor .00175 = 4.2% that was the lowest interest rate they had on the new civic. I bought mine 2 days after they came out. You really have to fight your numbers with the sales man to get a good deal. At first they wanted me to pay around $350 a month with the same numbers I mentioned. Negotiate your lease/purchase. Learn how to do the numbers!

 

[RockyD]

I'm paying $234.46 monthly lease for my EX-T including taxes. Residual value is 65% for 36 month 12,000 miles a year and 4k down. Money factor .00175 = 4.2% that was the lowest interest rate they had on the new civic. I bought mine 2 days after they came out. You really have to fight your numbers with the sales man to get a good deal. At first they wanted me to pay around $350 a month with the same numbers I mentioned. Negotiate your lease/purchase. Learn how to do the numbers!

So I got an EX-T Sedan 2 weeks ago with all season mats, splash guards and window visors(all installed) for $260 a month. I had a $500 Honda credit I used as my down payment so I essentially I went in there empty handed. I also traded in a 2015 Civic EX-L that was upside down $960 so that had to be incorporated into the lease too. 12k year/36 month. The first dealer I went to started at $380 a month with 3k down. I think the residual was 64% and money factor was .00083

 

[kirkhilles]

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

Would someone mind walking me through an example. I do better seeing real numbers.

So, take the simplest example of an LX:

Residual Value: 63% for 36 months

MSRP: $18,640
Avg Sale Price (pre TTL): $17,000

So, does that mean that the 37% (100% - 63%) will INCLUDE interest or EXCLUDE?

$17,000 x 37% = $6,290 in fees

So, would that mean that you could expect the Purchase Price to be set at $10,710?

Am I correct that the dealers MUST use the table and that the Purchase Price at the end of the lease is variable based on what is negotiated? In other words, if some chump was willing to pay MSRP, the Purchase Price would be $18,640 x 63% = $11,743.20?

 

[TNMike]

Am I correct that the dealers MUST use the table and that the Purchase Price at the end of the lease is variable based on what is negotiated? In other words, if some chump was willing to pay MSRP, the Purchase Price would be $18,640 x 63% = $11,743.20?

I think you have some confusion in terminology. The "Purchase Price" is what you and the dealer agree the car is worth. If you agree to purchase the car at MSRP then The Purchase Price is $18640. What you are figuring with the 63% is the residual value, what the car will be worth at the end of the lease term. Purchase Price minus residual value = how much depreciation the car will experience over the life of the lease, and therefor what you must pay Honda plus the money factor (interest rate), tax, and fees.

So for your MSRP example

MSRP - $18,649
Purchase Price - $18,649
Residual Value (63%) - $11,743.20
Depreciation - 6905.80
Depreciation/36 - 191.82
Add Fees, Tax, and Money Factor (interest) for final payment.

If you negotiate a Purchase price lower than MSRP that second line changes, but residual is still based on MSRP, so looks more like this:

MSRP - $18,649
Purchase Price - $17,500
Residual Value - 11,743.20
Depreciation - $5756.80
Depreciation/36 - $159.91
plus the above.

Terms you really need to know from the dealer when considering your lease:
MSRP - The Value Honda suggests for the car
Purchase Price - What you and the dealer agree you are buying the car for
Residual Value - What the vehicle will be worth (according to Honda) at the end of the lease term
Money Factor - Interest rate for leasing. Honda has been offer .00083 which translates to 1.9% though mine is at .00073

Don't sign any lease where you don't know all of these figures. Even if the payment sounds great, if they are messing around with one of these figures, it could hurt you in the long term. And double check all of these figures appear on your lease contract. It is not uncommon for a finance manager to "have different numbers" than you agreed to with the sales person. If you call them on it, they will correct it quickly as a "mistake" but if you don't catch the "error" you're the one who ends up paying if you sign off on the document. Mine tried to sneak an extra $50 into my deal. it was "only $2 a month" over the agreed upon payment, but I made them re-print the paperwork with the corrected numbers to get the agreed upon purchase price on my contract.

Leases can be tricky. And my information may not be perfect, which I am sure others will be more than happy to call me on. Just make sure you arm yourself with the right information to be as knowledgeable as possible when you deal with the Car Dealership.

 

[frigga]

Just leased a EX with sensing last week for $190 x24mo with $3500 down and 12k miles. Residual value was around $15330 (67%) and cumulated money factor was 2.9% over the 2 years. Hope this helps!

 

[kirkhilles]

Just leased a EX with sensing last week for $190 x24mo with $3500 down and 12k miles. Residual value was around $15330 (67%) and cumulated money factor was 2.9% over the 2 years. Hope this helps!

Thanks. I'll admit that your lease seems like a strange choice but glad it works for you. I certainly don't have $3500 to put down.

My final result was with the fixed price dealer Economy Honda in Chattanooga which is great to comparison shop as they generally have prices listed. They dropped the price on a Cosmic EX-T and there was no way I was passing it up.

$500 trade in, nothing else and $265 a month with 15k per year and $0.15 per mile after.

Feel solid about it. Had to pay $599 processing fee which website said was included and they snuck another $600 "preferred customer" fee that is unsure what entails, but otherwise not bad considering Georgia charges full tax for every lease. Yeah, like $40 a f'ing month! Still though, certainly not the worst deal posted and a lot better than what the numbers work out that I've spent repairing and maintaining older vehicles.

 

[frigga]

Thanks. I'll admit that your lease seems like a strange choice but glad it works for you. I certainly don't have $3500 to put down.

Strange? How so? To be honest this was my first time leasing and don't really know all the tricks. My goal was to just keep the total 24mo payment below a certain amount. In hindsight, I should have negotiated on my residual value as I did with the MSRP.

 

[kirkhilles]

Strange? How so? To be honest this was my first time leasing and don't really know all the tricks. My goal was to just keep the total 24mo payment below a certain amount. In hindsight, I should have negotiated on my residual value as I did with the MSRP.

Can the Residual Value be negotiated? I thought that was the one value that was fixed (that was posted on the first page).

Also, I never really thought of it, but I'm surprised there isn't an adjustment based on vehicle color. I would think that more common colors like Grays, Whites, Blacks would have a higher residual value (at least demand) versus more polarizing colors like the Red and Blues. Not that they aren't beautiful, but someone looking for a subtle color isn't going to settle for a bright Red car.

 

[Joey Bass]

Here in Illinois, I got a pretty decent deal I believe:

2016 Honda Civic LX CVT
White
$20275.00 MSRP
$17909.00 selling price
36 month lease
63% Residual ($12773.25)
.00083 Money Factor (Roughly 1.992% interest rate)
Taxes were $470.00 (6.25% in my county) - NOT NEGOTIABLE
Acquisition Fee is $595.00 (And is taxed) - NOT NEGOTIABLE
Title and Registration Fees ($196.00 total) - NOT NEGOTIABLE
Doc Fees were $169.00 - NOT NEGOTIABLE
EFT Fee $25.00 - NOT NEGOTIABLE
Only $1000.00 out of pocket
PAYMENT = $186.45 with a $350.00 Disposition Fee at Lease end if i don't purchase outright.

 

[unr1]

Is the 24 month or 36 month lease the sweet spot on these civics?
Can somebody chime in? Thanks

 

[kirkhilles]

Is the 24 month or 36 month lease the sweet spot on these civics?
Can somebody chime in? Thanks

Considering that there are fees (acquisition, disposition, dealer fees, etc), generally the 3 year is considered the sweet spot. Under warranty for most or all period. 15k is also sweet spot which means that hopefully at 45k you still have enough on the tires to avoid fees and getting the car just to the point where you have brakes and other maintenance coming.

4-5 year leases are a bad idea and 2 year seems to be silly as the car is finally getting all initial fixes and recalls applied just in time to trade in.

That's my opinion at least. I'm on my first lease ever

 

[unr1]

thanks for your feedback, kirkhilles

 

[Joey Bass]

I agree with Kirk on the 36 month lease. Warranty, etc.

However, i think 15K/yr in miles is pushing it. I think you will not be happy at the lease end period if you dont decide to buy. They will definitely expect tire replacement and potentially some other areas as well. 12K would be more of the sweet spot for me but i dont have to drive over 12k a year either. I am on my 4th lease btw.

 

[kirkhilles]

I agree with Kirk on the 36 month lease. Warranty, etc.

However, i think 15K/yr in miles is pushing it. I think you will not be happy at the lease end period if you dont decide to buy. They will definitely expect tire replacement and potentially some other areas as well. 12K would be more of the sweet spot for me but i dont have to drive over 12k a year either. I am on my 4th lease btw.

Well, the number of miles is the number you will drive. If you drive 15k annually then that's what you will drive. You shouldn't avoid a lease just because you hit 15k. Maybe it'll be the difference of a transmission fluid change vs not (our Pilot was at 38k) but that's not a huge deal. For tires, if they go below legal limit then just get a set of used or inexpensive tires. Yes, 9k miles out of warranty, but not a big chance of failure.

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