Automotive

2018 Honda Odyssey finance vs lease

  • Last Updated:
  • Apr 4th, 2019 2:28 pm
[OP]
Jr. Member
Mar 11, 2004
100 posts
1 upvote
London

2018 Honda Odyssey finance vs lease

Few question so bear with me. We have decided to purchase a 2018 Odyssey. We test drove a Touring today but think the EXL RES has enough options for us. The salesman says there isn't much wiggle room in terms of price due to it being a new release and it being in high demand. He did say he did a deal earlier in the morning for $1300 off MSRP. He also brought up the topic of people pre paying their lease which is something I've never heard of. We had planned on financing it over 4 years at a rate of 2.49%.
So my questions are, is $1300 off MSRP a fair deal for a new vehicle? Should we finance at 2.49% or lease at 2.99 and buyout the residual when the term is up?
30 replies
Deal Expert
User avatar
Jul 30, 2007
23226 posts
8181 upvotes
Toronto
How likely you want to keep the minivan ? Leasing will likely cost more (when you see the interest rate for financing is already lower), given you may also have to pay admin fee on the buyout.

If you think $1300 off is not a good offer, you have the option to try other dealers and go from there
Deal Fanatic
User avatar
Dec 28, 2007
5576 posts
1948 upvotes
Alberta
Think twice before getting the RES. We have it in our 2006 EXL and used it a few times when the kids were small and on longer trips to Jasper and Banff. It hasn't been turn on in over 8 years. We never use it driving around town. RES sounded good at the time. If you plan on keeping the vehicle, I would finance it. I think $1300 was all I got off mine at the time. I know it wasn't very much off the MSRP. .
Deal Fanatic
User avatar
Jul 12, 2003
9809 posts
2235 upvotes
Markham
Dealership nowsday somehow make more profit with leasing than selling, but let's forget how they make their money, but focus on yourself.

In your situation, are you planning to keep the car longer than 3-4 years? If so, financing it. the rate is lower with leasing too.

In most leasing deals, at the end of the lease you need to pay the admin fee to buy out the car, which usually range around $500 depends on the brand. (some dealership will waive it if the original lessee buy out the car). At the end of the term, you need to prepare the cash to buy out the car, if you don't have enough money and need to re-finance. The rate will not be 2.49% or 2.99% anymore.

The only benefit by leasing is if
1. You are so unlucky and got a lemon, it is hard to get rid of and lose a lot money if you have to sell it within the first years. By leasing it, you know your nightmare will ends at the next 36, 42 or 48 months (depending your lease term)
2. Again, if you are so unlucky that you got into an accident or got hit and run. Your car need to go through a major repair (but declared not total loss). By leasing it, you know you can return the car without sucking the van yourself with an accidented vehicle.
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Jr. Member
Dec 13, 2011
111 posts
28 upvotes
GMA
In the same boat, looking to buy/lease a EXL Navi or a Touring.

Leasing for 48 months @2.99% cost over 4K in interest!!! While financing for 48 months is $2700 in interest.

If you can afford 1k/month financing, you should look at leasing for 24months @ 0.99%
It will only cost 800$ in interest, but the buyback will be @27k+tx.

Do you mind keeping us informed of the deal you got?
[OP]
Jr. Member
Mar 11, 2004
100 posts
1 upvote
London
jackrabbit000 wrote:
Jun 17th, 2017 9:26 pm
Think twice before getting the RES. We have it in our 2006 EXL and used it a few times when the kids were small and on longer trips to Jasper and Banff. It hasn't been turn on in over 8 years. We never use it driving around town. RES sounded good at the time. If you plan on keeping the vehicle, I would finance it. I think $1300 was all I got off mine at the time. I know it wasn't very much off the MSRP. .

We were thinking of not getting a RES with everyone having tablets nowadays but with it having Apple CarPlay and being able to use the maps on our phone I feel as if NAVI wouldn't be necessary.
Sr. Member
Feb 7, 2012
598 posts
125 upvotes
SCARBOROUGH
If leather seats are not a must and you can live with the shades of gray color choice, EX is very well equipped 2018 Odyssey and comes with Honda Sensing, heated seats, and sunroof.
I would not pay extra for RES - the screen is small and low resolution. Everyone can have a tablet and watch/listen to what they want. I wish the new Odyssey had panoramic sunroof rather than outdated entertainment system.
I would not pay extra for NAVI - check how much Honda Canada wants for the maps update CD... Over $100! No, thank you. Even the lowest 2018 trim come with Apple CarPlay and Android Auto.
If you need leather seats and can afford Touring - go for it. After test driving the Touring do not expect the same performance from any lower trim. Touring has 10 speed transmission and acoustic glass in the front and 2nd row seats.

I was on the market for a van and was considering a used 2014-2016 Odyssey or Sienna, new previous generation Odyssey (2016-2017), or 2018 Odyssey. I was also contemplating leasing vs financing. Odyssey does not depreciate nearly as much as the residual value of the lease implies. Maybe that is the reason why dealers love to sell them for lease - they can make very good money reselling your off-lease van. If you are planning to keep the car for a long time, it is better to finance than lease. It also helps if you need to apply for a credit (you own the car as an asset rather than owing the lease liability).

$1300 off MSRP is not bad at this moment. Lucky for us, there is no several months of orders backlog (like it was with the new Pilot) and the inventory is slowly building up. But it is a new re-design many people have been waiting for and they do sell. Many dealers do not even have a demo on their lots and some let customers try the van that they will sell to someone as "new". I am afraid that once people test drive the van and start placing more orders, the order backlog may develop and dealers will be more reactant to offer discounts.
Newbie
Aug 27, 2011
26 posts
7 upvotes
RICHMOND HILL
Hi, I'm interested in getting one as well. Do you mind telling me how much you paid for yours so that I have a benchmark when I go into negotiation next week?

The other negotiating tactic is to finance the vehicle using Honda rates, say 2.49% for 4 years. You can usually get more discounts because the dealer gets a cut of your interest payment from financing. Because the financing deal is an open loan, after taking possession of the vehicle, you can borrow from your HELOC at your bank if you have one, say HSBC 5 years at 2.39% and repay the entire open loan to Honda.

Thanks!
Deal Addict
Jan 15, 2017
2155 posts
1483 upvotes
Do not lease with a plan to buy out. With a lease rate of 2.99% and a purchase rate of 2.49%, you will pay more interest on the lease. Interest on leases are calculated on the Net Capitalization Cost + Residual Cost which is why you always want a low lease rate.
Newbie
Aug 27, 2011
26 posts
7 upvotes
RICHMOND HILL
The other thing you may want to think about is the transmission. Depending on the trim you are buying there has been lots of issues with the 9-speed transmission, which is shared with the Pilot and TLX platform. Honda is ditching the 9-speed. They have developed the 10-speed transmission in-house. My guess is that in the next 1-2 years, they will move the Pilot, Odyssey and TLX all to the 10-speed transmission as standard.

If you can afford the Touring trim, I'd recommend to get that just to save yourself some headaches with the transmission.

You can google Honda's issue with the 9-speed transmission, which is developed by ZF. It is used by other car manufacturers as well such as Land Rover, Jeep, Fiat, Chrysler and they all have issues with the 9-speed tranny.
Jr. Member
May 24, 2008
137 posts
71 upvotes
Mississauga
Got a deal for Touring 2 weeks ago as below, Im sure there are better deal out there if you shop around but close enough if you have to buy now
$2300 discount off MSRP
accessories approx 10% off MSRP
extended warranty - 10% off MSRP

I only test drove the Touring (with 10 speed) therefore I cannot comment on the 9 speed trims. The 10 speed is very smooth and I didn't feel the car to "hunt gears" at all, one thing I am worried about for the 10 speed is reliability since this is the first 10 speed that Honda making in house (and that is why I got extended warranty as I plan to keep this car for at least 10 years).
If you dont need leather, the EX trim is actually pretty good deal as mentioned above as it already includes alot of options.
Newbie
Aug 27, 2011
26 posts
7 upvotes
RICHMOND HILL
Thank you! Macrossr!

Which dealer did you get yours? Maybe I'll just go to your dealer and buy the car.

Thanks!
Deal Addict
Sep 12, 2006
1411 posts
346 upvotes
OP, you'll end up paying more to lease it, plus it will be a lump sum to buy out, as well as other minor admin costs associated with buying it out. Dealership may push you to lease because they make more $$ this way.

If you intend on driving it for a long time, I think finance is the way to go.
Newbie
Aug 27, 2011
26 posts
7 upvotes
RICHMOND HILL
Thanks everyone for your help! Ordered my 2018 Odyssey Touring this afternoon. Looking forward to many fun road trips with family!
Newbie
Oct 4, 2012
55 posts
8 upvotes
Toronto
andrewkyng wrote:
Jun 24th, 2017 10:55 pm
Thanks everyone for your help! Ordered my 2018 Odyssey Touring this afternoon. Looking forward to many fun road trips with family!
How much did you end up paying?

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