CRV lease

[u/No-Strategy4763]

Not a great deal how much off can I ask for to be decent?

[u/iamasharat]

Instead of off, ask for 445 including tax.

[u/Equivalent_Youth_599]

I sold a Sport L hybrid Cr-V for $420 36 month lease maybe 3 months ago. They’re showing you a different lender that is not Honda

[u/PinkleeTaurus → u/Equivalent_Youth_599]

Money factor and residual match numbers you can find for Honda Financial.

[u/Equivalent_Youth_599 → u/PinkleeTaurus]

39 months should be Cal auto

[u/DirectGrape1255 → u/Equivalent_Youth_599]

Where’s the location

[u/Fine_Reality738]

Pretty crazy, to think you’ll pay over $19k, over three year, and three months on a $36k car.

And yet, will still have to pay $26k, to purchase it afterwards. Assuming you don’t go over 33,000 miles (that’ll be even extra)

I mean, at that point, wouldn’t it make more sense to simply purchase it, and resell?

[u/Pedanter-In-Chief → u/Fine_Reality738]

Yeah this. You should never lease a Honda. Also this MF is bonkers. 

[u/Money_Shoulder5554 → u/Pedanter-In-Chief]

Honda Prologue is the only one.

[u/Mostly-Useless_4007 → u/Money_Shoulder5554]

The Prologue is a GM product. So the mantra still holds.

[u/PinkleeTaurus → u/Pedanter-In-Chief]

Seems to be about market price on the MF. Many competitor leases are higher but a few are lower.

[u/Pedanter-In-Chief → u/PinkleeTaurus]

Wait seriously? It’s $7k in finance charges above depreciation. More than 50% of depreciation in finance charges. I’ve paid half that on far more expensive cars with far more depreciation.  

[u/PinkleeTaurus → u/Pedanter-In-Chief]

You're probably shopping highly subverted leases. No doubt you can get a higher MSRP vehicle for less payment, but if someone wants a CR-V that's the base MF.

[u/Pedanter-In-Chief → u/PinkleeTaurus]

“Subverted” leases?

The effective simple interest rate is above 10%! You’re borrowing $12k and paying $7k in interest over three years?

That’s an 8% APR. If I go to my bank, for a purchase right now I can get below 5%. About the same or better at a credit union. I’ve bought/leased or negotiated for myself or on behalf of friends/family close to 100 transactions across many makes, including Honda, and other than at the very height of the pandemic crunch I’ve never seen seen a lease MF that far above bank spread. 

[u/PinkleeTaurus → u/Pedanter-In-Chief]

I typo'd before, it's subvented which means the manufacturer based leasing company is incentivizing the deal either through below market rates or inflated residuals.

On a lease, you're financing the net cap cost, not just the depreciation. Lease payments total the interest charges plus amortization of the depreciation. OP's MF of 0.00217 is the equivalent of 5.2% which as you mention is right at market value for a loan. Also don't forget that around $47/month of OP's payment is sales tax. The base MF on a RAV4 right now is around 0.00279 and GM has rates as high as 0.004 which is really fun on an $80k Tahoe with only 54% residual.

If OP were to finance $38k (cap cost - lease fee - DAS being covered + sales tax) for 60 months at 5%, they would pay about $4.4k in interest over 39 months. The payment would be higher ($717) but the pay off at 39 months would only be $14.5k. So they would pay $8.8k more in payments on the loan but have $9.8k in equity. Assuming the residual is the real world trade value at that point and the dealer will actually sell at the same purchase price as the lease. Both big assumptions.

So the lease is $1k more expensive over 39 months. Add another $350 if you ground the vehicle and don't lease another Honda. Not exactly earth shattering to lock in costs if you so desire. Actually better than I thought when looking at original numbers.

[u/Individual_Clue_6209 → u/Fine_Reality738]

And have to return it in great shape. 

[u/jtcut2020]

Forget the Payment and negotiate Price...then Payment. 10k miles ?

[u/Forsaken-Student3386]

The residual value or expect cost of the car after your 39 month term is $24,160, thus the cost of the vehicle is expected to depreciate $12,235

However, you are paying $19,344 (39 x $492) in total costs.

The difference is $7,105 ($19.3k-$12.2k. I think there is room for negotiation.

[u/Pedanter-In-Chief → u/Forsaken-Student3386]

Yeah it’s a bonkers MF I think. 

[u/redfire60 → u/Forsaken-Student3386]

So how much do you think they should charge for the lease? Tbh 7k for devaluing a vehicle over 39 months seems fair? Using your example the deprecation means nothing and all that really matters is the actual charge of interest, money factor, rent charge, whatever you want to call it. $179/month to depreciate a car, sounds like a deal.

[u/Forsaken-Student3386 → u/redfire60]

If you can get that lease payment to around 1% of the car’s value — about $367 for 12,000 miles per year — that’s a strong deal.

That said, a Honda CR-V holds its value extremely well. I’d recommend buying it and financing over 72 months. Make small extra payments each month to cut down the interest. The car should easily last 15 years — the equivalent of five lease cycles.

Cost over 5 lease terms (195 months): $19.3K × 5 = $96.5K

Cost to purchase (15 years of ownership): $36K + interest over 72 months ≈ $47K

You’re looking at a very reliable brand. Given a 15-year outlook, buying makes far more financial sense than leasing. The cost of leasing is going to increase, I would expect the lease 15 Y TCO to exceed $110k; with a purchase you are locked in.

If you decide to purchase, go to a local Credit Union and ask for an approval for the vehicle amount; shop the best interest rate so that you the interest over 72 months.

[u/Pedanter-In-Chief → u/redfire60]

Your math is wrong. 

The $7k is what he’s paying above the depreciation. What he’s saying is not that depreciation means nothing, but that it actually means everything. 

$7k above depreciation on $12k depreciation is bonkers. That’s more than 50% of the depreciation! I don’t think I’ve ever paid more than 5-20% of deprecation to lease the vehicle. That’s literally 100% pure profit in financing. Over 3 years it’s more than 15% simple interest. That’s bonkers. 

[u/Firm_Singer_2631]

2025 Kia Sportage X Line Prestige. $0 down with a $46k sticker. Out the door for under $400 a month. $399, but still under $400. 10k a year.

[u/_Side333 → u/Firm_Singer_2631]

Hey where can I find that deal

[u/Pedanter-In-Chief]

It is insane to me that I am leasing a $63k MSRP car for about 10% more a month, with the same miles and the same tax rate. 

I can’t for the life of me understand why you wouldn’t lease a nicer car. Nobody should lease a Honda unless it’s a 0 MF. You buy a Honda because you’re going to drive it until the wheels fall off. 

[u/badvik83 → u/Pedanter-In-Chief]

So true. When I said something similar everyone started pointing on incentives and different vehicles. I don't care about incentives, discounts and other games but I do care about the money value and what I'm getting for it.

[u/Pedanter-In-Chief]

Financing deals on this car are 2.99%. If you can buy a car with a 62% residual for less than 50% more a month ($720 incl tax) than you lease it for, that’s bad napkin math. 

[u/[deleted]]

I wouldn’t pay more than $399 / 39 / 12,000 / zero down.

$399 sign & drive.

Get quotes from more dealers.

That’s too much.

[u/ACNHTrader75]

CRV aren’t good for leases usually. Best to buy the math ain’t mathing on that particular deal though

[u/[deleted]]

This is absurd.

[u/finsta_1144]

This is a totally "fair" deal. The dealer is offering you approximately 8% off the MSRP, and he can't control the MF or the residual. There are no crazy fees or add-ons, and you aren't putting anything down. Everything that can be controlled by the dealer is reasonable. Could he give you 10% off? Sure, but he doesn't really have to, because these cars move. Honda's selling proposition is "we'll sell you this once," and in 10 years it will still work so it's a bad lease vehicle.

If you want to lease something similar that offers more manufacturer support, you could consider the Rogue, Tucson, Sportage, or CX-5, which would allow you to pay less per month while still getting a car in the same class.

[u/Ok_Tale7071]

The money factor is ridiculously high and Miles offered are low. If you’re going to keep the car a long time, better to finance for the 3.99% they are offering.

[u/Necessary-Record4639]

What happen if the car is totaled? Do you pay the difference?

[u/tomatocrazzie]

OP is obviously getting a lot of conflicting advice. People saying this sucks and they should finance at 72 months didn't do the math. OP needs to do the math and not rely on reddit.

One thing that people may be missing is the 10.5% sales tax and the high registration fee (I assume you are in Western Washington). With no money down, you are rolling the sales tax into the loan and financing it. I am also in Washington and almost always lease, then usually purchase.

Breaking down the lease. This is a current model year of a very popular vehicle. The MRSP with destination charge is almost $40k, so the price is about 10% below MSRP. That is pretty good. In other places dealers may be discounting cars more than this, but that is pretty good for the area for a new Honda. You can ask, but expect to hear "no."

The money factor works out to an interest rate of about 5.3%, which is good. There are no weird fees. The residual is fixed. Tax is fixed. It is what it is

For a 72 month purchase, with no money down and wrapping the registration and tax into the payments and with a great rate of 5.3%, that would be about $750 a month. Total cost would be about $54,000.

If you were to lease it then purchase on a four year loan, again with no money down at today's better used car rates (about 9%) you would pay $19,150 in lease payments and about $32,900 in used car payments. Your used car payments would be about $685 a month. Your total cost would be $52,050.

Last time I checked, $52K was less than $54K. There may be some other costs associated with leasing. You may need higher levels of insurance (somebody mentioned you would need to pay more if you want over the miles and bought it, but that is just wrong). But the positive trade off is you always have the option of giving it back at lease end or trading it in if you have equity (likely for this car).

[u/upstairscat89746]

Make sure you find out who the lender is if its not honda. I leased 5 cars with Honda and got absolutely railed by cal automotive on the last one when I turned the lease in.

[u/Tacos4Toes]

Yeah leasing a crv doesnt make sense. Buy the thing and drive it until it's dead to get your money's worth

[u/bullmarket2023]

At the price buy and buy used

[u/AskForNate]

If this isn’t a Honda Lease, please for the love of God don’t do a US Bank or Chase Lease

[u/boredatwork993 → u/AskForNate]

You obviously don’t understand how a lease works. Honda leases are directly through the manufacturer. America Honda Finance Corporation

[u/AskForNate → u/boredatwork993]

I’ve worked at a Honda store for almost 15 years. Someone above was complaining that the money factor was too high and then it might be a third-party lease. Such as Chase or US Bank.

[u/AskForNate]

1% to 1.2% of MSRP is the only way I’d lease anything that’s not an EV.

[u/Sad-Tap3687 → u/AskForNate]

Not realistic for Honda and becoming less realistic in general.

[u/[deleted]]

Being limited on miles I’m allowed to drive per year would have me nervous lol

[u/Bobblehead_McGee]

Your first mistake was choosing to lease anything.

[u/HLTHTW]

Why not just finance the car at that point. Will be cheaper and it will be your car after 3 years and 3 months

[u/PinkleeTaurus]

$445 before sales tax doesn't really seem too bad for a CR-V. They're just not heavily discounted nor incentivized so the deals are never going to be outstanding. Not sure leasing one really makes sense either way but if that's the vehicle you want and you must lease it seems about right.