not looking to lease a car, but I want to know if this is a good offer or meh

[space-time]

What do you guys this about offers like this? I am not looking to lease a car, in fact I have 3 cars and I only need 2. But I am curious if this is a RYF or a Meh. the low mileage would work for me since I have a 4 mile commute. I think I drive 7k per year. I'll highlight some of the things that seem like a good deal. what is "in-wear
termination included"?

ALL New 2013 CIVIC LX 4 Door
Automatic * Cruise Control * ABS Brakes *AC * Front Side Curtain Airbags * Power Windows/Locks *Bluetooth * AM/FM/CD * Back Up Camera * Keyless Entry With Immobilizer Theft Deterrent System
[2013 Civic LX.jpg]
Free Oil Changes And Unlimited Car Washes
16 Available and Ready for Delivery
Lease For Only $98
per month/27 months**
$0 DOWN
Subject to Tier 1 Credit Approval.**Based on 27 mo lease, 10K mi/yr @ .15 additional. Total payments $2,646. Residual $14,233. $0 Down. Add taxes (NJ $279.30, PA $359.10, Doc Fee, DMV fee & Bank Acquisition Fee $595. MSRP $19,755. Prices include delivery & prep fees, up to $500 in-wear termination included. Full Gap insurance protection. Expires 12/23/13. No two offers combined.

[Ombligo]

Not bad.

The allowed mileage is low at 10k, so be ready to park it a month or two most likely. The national average is 1000 per month and at 15¢ each, that is $150/month.

but total lease of $2700 would be tempting

[Wailer]

I've never leased a car nor do I have any interest in leasing one, but that seems like either a bait-and-switch or a RYF.

I looked up the cost of a new Civic LX on Turecar and it looks like you could get one for around $16,700 before T&L. If the residual price is $14,233, that means the depreciation is around $2500. I don't understand how the total payments, $2646, can be less than the depreciation. So even ignoring the capital costs, it seems like they are losing money.

Seems you are missing a digit in front of the $98/mo or a scam to me. $2500 depreciation over 27 months seems awfully low. I know Hondas hold their value well, but who would buy a 2+ year old honda with 20k miles for 85% the cost of a new one?

Maybe someone who is familiar with leasing can enlighten me.

[space-time]

The allowed mileage is low at 10k, so be ready to park it a month or two most likely.

yes, I know it is low mileage, but as I said, for me it would work. I drove 50 miles in 9 years on my current car.

[space-time]

Wailer wrote:
...Seems you are missing a digit in front of the $98/mo or a scam to me. ...

I keep getting this in the mail and I started to keep track of the payment, and I have seen it going from $149/month down in $10 steps and not is is $98. I wonder if next month would be $88 LOL

EDIT: the accord went from $189 (or 179?) down to 129 roughly in the same time frame.



EDIT#2: found an old email from June

[Wailer]

Until you actually go in there to negotiate, you really won't know what the terms are. Again, I have no experience leasing a car, but it doesn't seem like they could honor that deal and not lose a lot of money.

Maybe no one qualifies for "Tier 1 credit" and that's how they get out of leasing it at that price and not getting in trouble for deceptive advertising? Maybe the dealer prep fee is $5k and they only cover "up to $500"? Look how the fine print is different in the two ads. It has very different meaning when there is period and when there isn't.

If you find out either by going in or hearing the actual terms from someone else, please keep me posted.

[N-OS X-tasy!]

Wailer wrote:
...that means the depreciation is around $2500. I don't understand how the total payments, $2646, can be less than the depreciation...

Wat?

[Michael]

Here's what the Honda site says:

$159 per month for 36 months
2013 Civic Sedan 5 Speed Automatic LX Featured Special Lease
$159.00 per month for 36 months. $2,599.00 total due at signing.
Includes down payments with no security deposit. Excludes taxes, titles and dealer fees. For well qualified lessees.
Total monthly payments $5,724.00. Option to purchase at lease end $11,260.35. Must take new retail delivery on vehicle from dealer stock by January 6, 2014. Lessee responsible for maintenance, excessive wear/tear and 15¢/mile over 12,000 miles/year for vehicles with MSRP less than $30,000, and 20¢/mile over 12,000 miles/year for vehicles with MSRP of $30,000 or more.


Given that your ad shows no down payment, substantially lower monthly cost and a shorter time frame, it seems unlikely to me. But, maybe they're making it up on the miles since your shows 10,000 per year while the Honda one shows 12,000.


http://automobiles.honda.com/shop/?kwid=15508320&adgrpid=&ef_id=Ui9OXQAAAEimbHEP:20131220025932:s

[davester]

The bottom line is that a car dealer, who knows lease terms inside out and backwards, is not going to let you "win" on a lease deal. It just doesn't happen. Did you notice the fine print about "dealer fees" not being included? How much are you willing to pay for that paint protectant and underseal that they already put on the car?

[gabester]

If I had access to that deal I'd probably take it - but I'm looking to replace a car and have been trying to figure out how to get something approaching new without spending more than $15k.