Automotive

2018 Honda Civic EX T 48 month Lease - is this a good deal?

  • Last Updated:
  • Jul 27th, 2018 1:29 am
[OP]
Newbie
Jul 23, 2018
2 posts

2018 Honda Civic EX T 48 month Lease - is this a good deal?

Hello Everyone,

I am from Calgary and am looking to lease Honda Civic EX T for 48 months (20000 kms per year). I shopped around 3 to 4 dealerships, the most they are offering on the selling price is $28k (includes tax, freight /pdi). Residual amount at the end of 48 months is $11,725 which means my amortization amount would be $16,275. Monthly payments come out around $346. I still think the amount is higher, can everyone over here help me on how much i would be able to negotiate more? Thanks in advance for your help. Smiling Face With Open Mouth
10 replies
Deal Addict
Jan 15, 2017
2912 posts
2270 upvotes
Have you tried building this model on Honda's website to see the result of paying full MSRP? That's the first place to start. That will give you an idea of the type of deal that the dealers are offering.
[OP]
Newbie
Jul 23, 2018
2 posts
Hey @skeet50 yes i built it on the honda website and the selling price including all taxes was coming out around 28,656, so the dealers are offering upto 600$ in discount.
Jr. Member
Jun 4, 2015
105 posts
89 upvotes
Ottawa, ON
We just financed a demo with 10k km for $150 biweely on 60 months with $4k down. Same model.

Not apples to apples but food for thought
Deal Addict
Jan 15, 2017
2912 posts
2270 upvotes
arpit04ce60 wrote: Hey @skeet50 yes i built it on the honda website and the selling price including all taxes was coming out around 28,656, so the dealers are offering upto 600$ in discount.
Unfortunately for you, that may be the best offer. Is it possible that you live in an area where the dealerships are owned by the same company? That could explain the similar pricing. Or it could be the time of year and the dealers know that they will easily get rid of the '18s before the '19s arrive. Challenge everyone faces with dealers is if the dealers don't want to negotiate much, they simply don't have to.
Deal Guru
Aug 14, 2007
10308 posts
1578 upvotes
Toronto
A lease is never really a good idea, your just giving your money away and own nothing in the end.
Member
Sep 10, 2016
202 posts
31 upvotes
Especially on a Honda. VAG ones are lease oriented though
Deal Addict
Sep 1, 2004
4708 posts
3183 upvotes
XtremeModder wrote: A lease is never really a good idea, your just giving your money away and own nothing in the end.
Wrong, it depends on your usage, ownership habits, types of vehicle you buy, rebate and rates you get.

Example:

$20K Corolla was at 0% for 60 months at $200/month and $9000 buy out.

If you pay cash, it's $19.95K ($20K - $1K + GST). It immediately becomes asset. Your asset will depreciate about $10K in that 60 months. You end up with a $10K asset.

You lease, your $20K could be in RRSP growing protected at 5% compounded, you end up with $26.8K after 60 months. You paid $12K in car payment in those 60 months. So your $2K in payments differential vs asset lost yielded $7K of profits. At end of lease, you pay $9K on a $10K asset, gain of another $1K.

So cash payer in after 60 month have access to car and a $10K asset at the end.
Lease payer after 60 month have access to car and a $10K asset at the end and $8K of profit on average.

Of course, profit is YMMV. And you basically must have cash flow to pay the monthly payments. But it's all about cost of opportunity.

Even if you don't put it in RRSP, $20K into principle in mortgage will also yield some interest savings.


Now, if you don't have $20K and have to lease or finance to get a new car? Go buy a used one.

The only car worth paying cash for is Ford GT or Porsche 918 because those are appreciating asset. 99% of cars out there are depreciating asset, it's stupid to pay cash for them. Cash is better at service debt or investment bets.

When is a lease not a good idea?

- You drive more than allowed mileage
- You are using lower lease payment to buy more than you can chew
- You tends to attract damages to your cars, dings and curb rashes.
- Awful rates, 3% or higher
- Awful residuals - Koreans, Domestics, EVs.
- Really good resales - Honda Fit never loses much value, one of the better cash buys.
Deal Addict
Nov 8, 2017
2193 posts
674 upvotes
OP: may be your best bet is to contact Every dealer within the Metro region (search how many cars on dealers' lot that meet your requirements); and
find out how much competitors are asking and try to use that as a leverage.
End of month is fast approaching. Good luck.
Member
Apr 5, 2017
364 posts
276 upvotes
Edmonton, AB
Xtrema's post is awesome. Leasing a Golf R or Stinger GT is high on my list.
Deal Addict
Oct 8, 2012
1501 posts
555 upvotes
TBD
arpit04ce60 wrote: Hello Everyone,

I am from Calgary and am looking to lease Honda Civic EX T for 48 months (20000 kms per year). I shopped around 3 to 4 dealerships, the most they are offering on the selling price is $28k (includes tax, freight /pdi). Residual amount at the end of 48 months is $11,725 which means my amortization amount would be $16,275. Monthly payments come out around $346. I still think the amount is higher, can everyone over here help me on how much i would be able to negotiate more? Thanks in advance for your help. Smiling Face With Open Mouth
Why 4 years? Doesn't the warranty run out at 3?

I lease a white 18 Civic sedan EX-T in May in BC. 3 year lease, 20k per year. Bi-weekly $193.xx

$25,086 (Discount of $804 from MSRP)

Freight and PDI

$1,655

Paint Charge (Pearl White)

$300

A/C Tax

$100

Tire Levy

$25

Total

$27,166 (pre-tax for easier comparison)

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