2007 HONDA CR-V ex LEASE DEAL...? or no DEAL?

Question

Dealer offering following lease deal. $400 mnth. 0 down 1st mth payment taken care of. new 2007 crv ex. cloth 6 cd sunroof...
not worried about residual (64%), as I will trade in for new one in 3 yrs/36,000 miles.
is this a DEAL or NO DEAL.. ?

Answer 1

You should always care about the Residual value as well as the value of what you are paying for the car.

MSRP for a CRV EX is $24,050, meaning your residual will be $15392. So you will be leasing for the depreciation value of $8658 for a 3 year period

I= PRT (Simple formula to determine what your interest rate will be.
($400 * 35months (one month taken care of)) $14000 in total payment. So the interest you would be paying for this lease amounts to: $14000-$8658 = $5342.

$5342 = $8658*R*(3)

R = $5342/($8658*3) = 20.5%

So you'll be paying an interest rate equivalent to 20.5% for this lease.

I'd say NO DEAL unless you don't think you can get a better rate elsewhere.

Just as a compairson:
$300 per month for 36 months = $10800 total payment cost
Interest would be $10800 - $8658 = $2142

I = PRT

2142 = (8658) * R * (3)

R = 8.24%

That sounds a bit more reasonable to me, so I would hope to get the CRV for a lease deal around $300/month. (Meaning you're paying an 8.24% interest rate, not horribly bad)

Is your credit bad and that's why they are charging a 20%+ interest rate?

Answer 2

You already bought the motor vehicle, you bought the motor vehicle you needed suited? i does not torture your self over regardless of if or no longer you've got squeezed yet another $500 off of the deal now. interior the long-term what difference will it make? Honda sellers are infamous for being problematic bargainers because of the fact the vehicles sell nicely. in case you choose to save $5000 below MSRP you've got bought a POS American motor vehicle that they are begging people to purchase and that they might have given you a unfastened Plasma television with it too probable. you probably did the suited ingredient getting the Honda, the CR-V is staggering, you would be very pleased with it and it will maintain its fee so nicely over the years so you might not sweat what you paid for it in any respect. it quite is a honest deal. Congrats.

Answer 3

NO DEAL!

For $400/month, u can lease an Acura MDX.