Registered: Dec 2004
Location: Delaware, USA
Posts: 3

Hi.

Nearly two years ago we took advantage of a Honda lease special on an Odyssey LX with cloth and RES. Our lease is up at the end of May and we've been struggling with what to do next. We really like everything about the van (it's size suits our family of four kids just fine), except, of course, the gas mileage (12-15mpg city). We don't have a lot of cash to put down toward another vehicle and would like to keep payments around $300/month, which is where the lease is currently. FYI, it's a 24,000 mile lease and I fully expect us to be around 27,000 miles at lease-end (with a 15 cents per mile overage charge).

Anyway, after looking at some other vehicles with "pretend" third rows, including the new RAV and the Pilot, plus the Sienna and the new Odyssey, I received an offer from Honda to extend my lease up to an additional 24 months. The lease essentially turns into a month to month lease, and can be cancelled any time without penalty. Payments remain the same, and the residual is reduced by approx $236 each month, with an ending value of around $15K (it's $20K after 2 years).

My thinking is this... I see little risk in extending the lease. Since I don't want to lay down any cash, and I don't want payments to increase right now (either in a new lease or by financing a purchase... either the van or something else), the lease extension appears to be almost too good to be true. Am I missing something here? What would you recommend doing? If I keep the van beyond three years (the mfg warranty period) and intend to eventually buy it out, do you recommend buying an extended warranty? From Honda or from someone else?

Thanks!

Last edited by dgreene4001 on 02-24-2006 at 01:37 AM

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Registered: Apr 2004
Location: Georgia
Posts: 35

Assuming the lease funder is American Honda Finance, I would not hesitate to extend the lease on a month to month basis.
I actually did the same thing with my 96 accord (30 mo) when I found out the wait for a '99 Odyssey was about 6 months. Ensure that American Honda Finance sends you paperwork indicating thet the lease is month to month, $x per month, X miles per month, etc.
With respect to the extended warranty on a lease buy out, i'm on the fence about that one. I bought our '02 EX-L at the lease end because it was a very good value considering what similar '02's were selling for on dealer lots. I paid $970 for a $0/5Yr/100K warranty and at 73K (knock on wood) have never had to use it.

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'02 GG Odyssey EX-L

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Registered: Nov 2005
Location: Middle Tennessee
Posts: 274

that is pretty sweat--you can stay in a month to month lease while still under warranty. I would at least be prone to stay in the lease as long as the warranty lasts. After that it would depend on the residual buyout. In fact, what happens to the residual purchase price each additional month you stay in? Does it go down or stay the same as at the end of the original two year period?

That would be an imporant questions to me. IN fact, I just bought my self out from under my lease. I basically leased the car for about 2.5 years of a 4 year lease, then brought my own financing to the table as soon as the buyout got to where I decided the van is a long term keeper and could afford the payments. Also, now I can pay extra and speed up the payoff. Also, now we can drive the Van to kingdome come and back and not worry about the miles.

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2003 Odyssee--wife drives, I clean & maintain!

Mine: 2007 Ford Explorer Sport Trac & 1988 Isuszu Pickup
2004 Stingray 190LX, 4.3 carb Merc (boat + motor = 2527 lbs)

http://drri.home.comcast.net/honda/rig_3.jpg

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Registered: Dec 2004
Location: Delaware, USA
Posts: 3

Thanks for your feedback.

Yes, it is American Honda Finance.

The residual decreases approx $236 per month for every month that I continue to lease.

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Registered: Nov 2005
Location: Middle Tennessee
Posts: 274

That not bad, especially if you think you might want to buy it down the road. Just don't get into mile trouble.

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2003 Odyssee--wife drives, I clean & maintain!

Mine: 2007 Ford Explorer Sport Trac & 1988 Isuszu Pickup
2004 Stingray 190LX, 4.3 carb Merc (boat + motor = 2527 lbs)

http://drri.home.comcast.net/honda/rig_3.jpg

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Registered: Sep 2003
Location: Hayward CA
Posts: 68

That seems to be a great offer from Honda. My lease is up this Aug. and I hope they offer the same to me. I have less than 10k on mine and would like to buy it at lease end but right now the increase in payment from financing the residual would push the limits of my budget. If I could buy down the residual for another two years the buyout at lease end would be affordable.

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In the End, we will remember not the words of our enemies, but the silence of our friends.
Potato Chip, custom canuter valve, low-friction muffler bearings, synthetic turn signal fluid!
Law-makers are supposed to regulate in the interest of the public as opposed to regulating in the interest of the regulated party.

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Registered: Jan 2002
Location: South Lyon, MI USA
Posts: 49

here in Michigan, who states Honda might be offering some special deal for the folks who have the 2 yr lease special on the 2004's. They indicated a lot of folks are getting "sticker shock" when they call in for a new lease price. Will let ya know what I hear...

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Mike and Lorie
South Lyon, MI

April '04 SS EX-RES
Jan '04 Pilot EX-L Black

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Registered: Feb 2004
Location: MAuMEE, OHIO
Posts: 824

Hey guys, dont talk to the dealer about lease extensions, and stay the heck away from them. They have nothing to do with them. You need to contact the leasing center in TX, they will simply extend whatever months you want from 1 month to 24 months and will allow two extenisons for a total of 24 months.
Your payment will stay the same.

There is no sticker shock. Just make sure your residue factor is adujusted for the extension, so in case you decide to buy it after the extension its not at the 2 year orginal buy out.

Now there has been some people that put a good sum of money down at the start of the orginal lease. tune of 4 grand giving them a 89 monthy payment and yes they got the extension for 24 months at the same rate, just had to pay the tax of 7.76 per month as the state charges monthly. Depends on your local state regulations.

Again payments will not change if you choose to extend your lease, the only out of pocket expense you may incur is the monthly use tax, again thats not regulated by HONDA but by your state.

I hope this helps

eb

edited to add contact info for AMERICAN HONDA LEASE CENTER
1-800-351-6508 weekdays from 9:00 AM to 5:00 PM CST

__________________
2010 Mercury Mariner Prem 203A
77 miles 06/10
2010 Honda Odyssey Touring N+R
4102 miles 06/10
2007 Honda Odyssey Touring N+R 118,929 miles 06/10 2nd set PAX GONE
2007 Honda Odyssey Touring N+R
09/29/06 in service Slate 37,510 miles 06/08 GONE LEASE TURN IN
2006 Honda Odyssey EXL SIL N+R
gone 11/06 33,926
2004 Honda Odyssey EX SS 59,920
---GONE-- 12/31/05
2004 Honda Odyssey EX RES SAGEBRUSH 05/20/04 Gone ACCORDS 96,98,2000,2002

Last edited by audreym on 02-25-2006 at 01:02 AM

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