AM I getting ripped off on this Honda lease?

[ES_TRADER]

Hey guys, never leased a car before so i have no clue as to what's a good deal or not. To those of you who have, please chime in.

CAR: 2011 HONDA CIVIC HYBRID
MSRP: $23950

THE DEAL they quoted me:

$0 down, $0 drive off (no registration fees or anything at time of signing, zero out of pocket)
$260.00/month for 35 months (1st month payment included)

$260/mo INCLUDES ALL CALIFORNIA Taxes and whatever fees...So basically NET 260/mo flat out for 36mo.

My total out of pocket is $9100. Which is 37% of the value of MSRP...seems kinda high to me...but really i have no idea.

IS THIS A GOOD DEAL?

[Freakazoid]

I'd say that's a pretty fair deal, only because it's incorporating tax, etc into it as well.

[BTM]

+1 seems fine

[JayKay335i]

fair deal

[Tondtar]

There are many factors in a lease deal to determine if it's a good one or not. IMO, in order of importance :

1. Negotiated final price of the car (Forget about MSRP. What is your Capitalized Cost?)

2. Residual Value (The estimated value of the car at the end of the lease. The higher the number, the better deal for you)

3. Money Factor (Same as APR. Not as much of a factor since they are usually competitive if you are dealing with car manufacturer's own financial/ laesing services. If it's a 3rd party, watch out. They stick it to you sometimes)

4. Lease term (How long? Usually the shorter term, the better. 24 months is more affordable than 36 mo. usually)

Most lease deals are presented in the terms that customers care more about and are easy to understand : Out of door cost and monthly payment. It does not mean a "good" or "great" deal necessarily. I recommend reading and educating your self about how leasing works vs. buying before making any commitment. There are a good number of sources available on line for free, including this :

http://www.leaseguide.com/lease07.htm

[.:bHd:.]

wait is that a lease?!?! If so you're crazy for putting 9 grand down and paying 260 a month. They had a deal for 0 down 250 a month a couple of months back. if you're financing it then that seems about right.

[MediaArtist]

$9,100 down is a deal breaker. You can do better. One of my friends was able to get a base 328i lease for slightly more, but with much less money due at signing.

[Dre01SS]

Originally Posted by .:bHd:.

wait is that a lease?!?! If so you're crazy for putting 9 grand down and paying 260 a month. They had a deal for 0 down 250 a month a couple of months back. if you're financing it then that seems about right.

No - $9,100 is his total lease cost after 36 months.

$0 down, $260 a month doesn't sound bad. How many miles per year? You don't want to get screwed with overages at the end of the term.

[jasonX]

260 x 35 = 9100.... smh

above poster beat me to it

[escobar929]

with out knowing the MF and other details, sounds pretty decent

[Freakazoid]

the big thing to remember here (and as I had hinted in my post), is you're paying tax in that payment. the tax is money you'll never get back. If I remember right california is like 8.5% or something. So that's quite a chunk of change.

[LACSTER]

so nothing out of your pocket and $260 per month with taxes? That's a great deal

[Tondtar]

Originally Posted by Freakazoid

the big thing to remember here (and as I had hinted in my post), is you're paying tax in that payment. the tax is money you'll never get back. If I remember right california is like 8.5% or something. So that's quite a chunk of change.

Try 9.75% in LA County

[.:bHd:.]

9.75% for tax. But ya that's a reasonable deal i'd say you can knock it down ten bucks more a month but that's not gonna make much of a difference.

[ES_TRADER]

Originally Posted by LACSTER

so nothing out of your pocket and $260 per month with taxes? That's a great deal

yes, not a penny out of pocket at signing and the 260/mo INCLUDES taxes and applicable fees and gap insurance. everything wrapped in the 260.

[blue2fire]

It sounds decent but you will regret it in 2 months. Honda will update the Civic thoroughly and the hybrid will get Lithium ion batteries, helping it be considerably more efficient and even hopefully run on electric only momentarily.

If you were buying it and will get a massive discount, it might be worth it but a lease deal is always meh and not worth it.

[jaco]

Miles is key. My friend gets 35 to 38 mpg in his normal non boring (sarcasm) hybrid civic. How much would a lease be on one of those?

[Kroy]

Originally Posted by jaco

Miles is key. My friend gets 35 to 38 mpg in his normal non boring (sarcasm) hybrid civic. How much would a lease be on one of those?

what do you mean? OP is talking about a civic hybrid. i didn't know there were different models of civic hybrid.

[bmwmike335]

sweet deal. take it.

[MarkR171]

Sounds fine really...