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Lease deal was awful


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Looked into a civic lease deal at the Honda dealer. I looked online and went through the numbers. The total payments plus the 2k down were still under 10. I wouldn't put 2k down on a lease but was a reference point on what they do with no negotiation 

 

Anyways,with a decent credit score, went to the dealer, the total for the 3 years including down payment came to 13,100 and then i could buy it for 12000. Keep in mind this was a base model with a manual so nothing fancy 

 

With a 730 credit score what should I be looking at down on a lease like that? 

 

I looked into some american brands and the lease deals seemed worse than the finance. Is that due to more expected depreciation during the 36 months? 

Edited by Caddypower
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American Honda Finance always has subvented rates on their products.

Consumers routinely misundstand the difference between a down payment  compared to the upfronts.

You should pay the upfronts.  But I fail to understand why anyone would make a down payment on a long term rental.

Ideally you should negotiate the price of the vehicle and or your trade vehicle if any.

Honda always has exceptionally good lease rates across their lineup.

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What was the rationale in looking at lease instead of a purchase on a low-cost vehicle?  As Marv notes, leasing is basically a longer-term rental.  At the end of the term, you are stuck with one of three options, two of which leave you without the vehicle that you have been driving and one leaves you with NO vehicle. 

 

The residual valuation that is used will key the monthly payments as well as what your effective purchase price would be at the end of the lease term in the event that you were going to buy the vehicle.  Your contract at least lets you know on Day One what the price of a three-year old vehicle will be...on some makes and models, it turns out to be a steal, while on others, the manufacturer was the one doing the stealing.  

 

Look at forums like LeaseHacker for the best guidance on lease terms and offers...

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On 3/5/2020 at 8:15 AM, Caddypower said:

the total for the 3 years including down payment came to 13,100

I commend you for looking at total lease cost vs. being a payment shopper.  :good:

 

With that said, I have no idea what's reasonable for that vehicle.

 

Here are some recent Leasehackr threads on the Civic that might help.  https://forum.leasehackr.com/search?q=Civic

 

Note that incentives and money factors (finance rates) can change every month, and may be regional.  You can always confirm current incentives, residual for various lease term/mileage combos, and the buy-rate on the money factor for a given model in your location by posting in the appropriate Edmunds thread.

 

https://forums.edmunds.com/discussion/58101/honda/civic/2020-honda-civic-lease-deals-and-prices 

 

 

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