2008 Honda Accord I4 EX-L lease - good deal?

[moriokka]

Is this a good lease deal:

2008 Honda Accord I4 EX-L

$437.6/month, $1350 downpayment+$3150sec.deposit (brings down lease rate from 3.9% to 2.4%) for:
48 months
104,000kms
4yr/100,000kms honda plus extended warranty
$700 cheque to pay last two months of current lease

Thanks for reading.

[Maxspeed]

v6 or i4?

[moriokka]

v6 or i4?

post edited: I4

[DrXenon]

What's the residual?

[moriokka]

What's the residual?

buyback value = $14,594

[Drew_W]

I wouldn't buy the extended warranty right off the bat. The car should be fairly reliable. You can always add the extended warranty within the original warranty period.

[AGR-1]

Why a 48 month lease? A 36 month lease will imply less out of pocket maintenance, and less of an opportunity for charge backs to you at the end of the lease when the car is inspected.

Why invest 3,150 to lower the rate from 3.9 to 2.4 and run the remote possibility that they inspect the car and have a substantial MSD (multiple security deposit) from you.

Why do you need an extended warranty up front?

Is the residual 50% of the MSRP? A residual amount without a point of reference to the MSRP becomes just another number. You want to know on what the residual amount was based.

Ideally when you lease you do not want to tie up more of your cash than you have to, you do not want to spend money beyond normal maintenence on the vehicle, you do not want to buy an extended warranty to protect yourself during the term of the lease.

[VivienM]

Why a 48 month lease? A 36 month lease will imply less out of pocket maintenance, and less of an opportunity for charge backs to you at the end of the lease when the car is inspected.

In most cases, a 48 month lease has substantially lower payments than 36 months... though, yes, if you're buying something with a 3/60K bumper-to-bumper warranty, that does entail higher risk.

(This is not true with German luxury brands that often offer very low interest rates on 36/39 months and very high interest rates on 48 months)

[moriokka]

Why a 48 month lease? A 36 month lease will imply less out of pocket maintenance, and less of an opportunity for charge backs to you at the end of the lease when the car is inspected.

To get a lower rate.

Why invest 3,150 to lower the rate from 3.9 to 2.4 and run the remote possibility that they inspect the car and have a substantial MSD (multiple security deposit) from you.

Since the sec.deposit is money I can use after I return the car (for another lease etcetera), and since the savings in the reduced rate exceed any interest I would get by saving the money, I thought it's a good idea.

Why do you need an extended warranty up front?

Because I expect to drive the car a lot and ext.warranty costs more if added later.

Is the residual 50% of the MSRP? A residual amount without a point of reference to the MSRP becomes just another number. You want to know on what the residual amount was based.

Ideally when you lease you do not want to tie up more of your cash than you have to, you do not want to spend money beyond normal maintenence on the vehicle, you do not want to buy an extended warranty to protect yourself during the term of the lease.

Standard warranty is 3yrs/60k, thus my need for extended.

[VivienM]

Standard warranty is 3yrs/60k, thus my need for extended.

Does Honda have a 5/100 powertrain warranty? If they do, that should cover most of the expensive-to-repair items...

[AGR-1]

Get a quote for a 36 and 48 month lease...unless they do not offer terms for a 36 month lease. Often a 36 is less money since they have apply a higher residual.

MSD's are a good idea, when rates are standard and an MSD can give you a 2.5% saving from a standard rate at 1.5% for an MSD which is close to 10% of the value of the vehicle?

This lease seems to allow you 26,000 klms per year, if you exceed the kilometers you will be charged money. That you drive 26,000 klms/year in a 36 month lease or a 48 month lease its the same distance.

If the standard warranty is 36/60 your lease should be closer to the standard warranty parameters. The duration of a lease should be the duration of the standard warranty.

[AGR-1]

from the Honda web site...

2008 Accord 4 door I4 EX-L

MSRP.................31,090 plus Frt PDI 1,390 = 32,480


Lease..............................36 MTH ..............48 MTH

Rate..................................3.9......... ..............3.9

Kilometer/Year...................24,000 ................24,000

Capital Cost.......................32,480................. 32,480

Residual............................17,410........ .........15,234

Residual as a percent of
MSRP of 31,090 ...................56%....................49%

Down Payment.....................000................... ...000

Depreciation......................15,070.......... ........17,246

Depreciation/Month..............418.61..................317.38

Interest / month at 3.9.........80.60....................119.34

Monthly Payment.................499.21.................436 .72

Due at delivery....................761.86................ .691.24

Interest / month at 2.4.........49.89....................47.71

For every 1,000 of
downpayment the monthly
lowers by..........................30/month..............22/month

Down payment of 1,350
will lower monthly by...........40.50...................29.70

Is this your lease?

Cap Cost..........................32,440 (inc 1,350 of Frt PDI)

Down Payment....................1,350

Net Cap Cost....................31,090

Residual............................14,594 (for the additional 2,000 klms/yr)

Depreciation......................16,496

Depreciation/Month.............343.67

Interest / Mth at 2.4%.........45.68

Total Payment...................389.35 plus taxes = 439.96

They are giving you 700 to get you out of your lease, and are including the extended warranty (what is the cost of warranty?)