Leasing an Ody

Thanks for all of the advice. We are currently leasing an Accord so I know all of the fine print and how the dealer can screw you when you turn the vehicle back in. The best option at the end of a lease is to sell the vehicle yourself and pocket the difference betwen what you sell it for and what the residual value is. The key is that you have to lease a vehicle that holds it's value, which Honda's do. If you lease a Ford Windstar you might as well turn it in at the end of the lease because it will not be worth more than the residual value.

Odyssey's are holding their value and will continue to hold their value even if production meets demand because they are built by Honda. We will try to sell our Accord and will be able to make about $1500-$2000 because the residual is $13,400 and it will be worth about $15,000 or more in July.

I am just wondering what kind of deal people are getting on their leases, since dealers are not moving off of MSRP at all.

Coleman_lot,

Leasing is not for everyone but if you only keep your vehicle for 3-4 years, take good care of it and like to drive the latest vehicle out there it is probably a good idea. With the Odyssey I think it is an even better idea because at the end of the lease you could sell it for more than what they say it is worth, unless the resale drops in the next few years. If that's the case you just turn it in and owe nothing.

I saw the ad again yesterday and it was actually for $340/mo for 48 mo lease with only $500 down now. That would be a savings of over $200 per month!

The only way you can get screwed is if the vehicle has more than normal wear and tear when the lease is up. They send someone out to look at you vehicle but you can get more than one opinion. They will also credit you for tinting the windows, etc. The only thing wrong with our Accord is that two of the hubcaps are scaped up a little, so if they try to screw me when I turn it in I will just sell it outright or see what Carmax will give me.

Coleman_lot,

My wife's car will only have about 34,000 miles on it when we turn it in at the end of the 3 year lease.

You can buy extra miles up front at a cheper rate then at the end. At the end they usually penalize you at a rate of about $.15/mile and I think you can buy them for around $.10/mile.

Here is Honda's site on leasing http://www.hondafinance.com/honda/leasing/index.htm

Here is a good link which explains leasing http://www.edmunds.com/advice/leasing/articles/43093/article.html

[This message has been edited by scmc75 (edited 02-18-2002).]

Go to www.leaseguide.com/calc.htm and play with the numbers.
I have leased my cars for the past 15 years from Ford, Mazda, VW, Honda and BMW and never had a problem at lease end. Follow the above link and figure on 6% financing. You can practically set the residiual value yourself; it is around 55-60%. It was $14,600 for my '99 EX and about $18,000 for my '02 NAVI. The trade-in on my '99 will be about $19,000 in April with an estimated 36,000 miles. I am applying the equity against the new lease which brings the monthly down to around $365 for 36 months. I like a new car after 3 years for safety, peace of mind and the new technology. Not owning a vehicle makes me re-evaluate my driving needs with less hassle. Most leases allow early termination without penalty; also your equity builds up faster early on because the interest/principal ratio stays almost even for the duration.

<font face="Verdana, Arial" size="2">Originally posted by scmc75:
legend700,

If the vehicle is worth more than the residual value that they set do you get that money when you just turn it back in to Honda?</font>

Click to expand...

No. The only way you see the benefit of the car not depreciating is if you purchase it from Honda and resell it. If you turn it in they make more money reselling it. The only time you would want to turn the car back in to the dealer or leasing company is if the vehicle value is at or below the residual. You might even consider your cost and ability to sell on your own if the car is only $500-$1k or so better than the residual.

If you do it right, take care of the vehicle, would like a new one every 3 or 4 years and don't put over 15k a year leasing can work very well.

We lease a new vehicle every 3 or 4 years for reasons mentioned in other posts. I never put money down only first payment and title fee. It's a depreciating asset, if you put money down you're essentially throwing it away in the name of saving $50 a month. In our house that $2 - $3k can better be used elsewhere. I usually can negotiate out of either the acquisition fee or the disposition fee, was successful on getting rid of both on our last Accord.

You have to be careful to be sure. But if you can handle a payment every month with no end in sight, leasing usually gets you a lot more vehicle for the money.

Also, note that the advertisements in the papers generally do not include TAX or GAP insurance, so the $370 will be higher dependent on those items.

FWIW, 2002 EXL-RES, MSRP, 48 mo. 15K miles, 6% TAX rate, GAP insurance included, no money down, first payment and title fee only. Payment is $465. Payment on ehonda.com is $431 w/o tax or GAP.


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2002 Redrock EXL-RES
2002 Explorer EB
A couple of bikes and feet that work too!