| JeffK |
Just checked Edmunds and the $2500 rebate on the MDX is in force through September 5.
There are also $3000 rebates on the Honda Pilot good through September 5.
JeffK |
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| Loose Cannon |
JeffK,
On pure economics what do you think of trading my 2004 SBP Tour/Nav, 23K miles, mint condition for a 2006 Tour/Nav. I have been quoted $9,500 + my car + tax + misc. fees. I, obviously, can also take the 2.9% over three years.
Thanks,
Loose |
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| JeffK |
Dear Loose Cannon:
You posted:
On pure economics what do you think of trading my 2004 SBP Tour/Nav, 23K miles, mint condition for a 2006 Tour/Nav. I have been quoted $9,500 + my car + tax + misc. fees. I, obviously, can also take the 2.9% over three years.
From a purely economic point of view, your cost would be $9,500 plus tax for 2 years of ownership. Assuming tax of 6% that would be a total of $10,070 or $419 per month, assuming 24 months.
Compared to a two year lease, $419 is dirt cheap! In fact a 2 year lease at $419 a month would be the bargain of the century!
Keep in mind that the '06 will depreciate rapidly once the '07 comes out.
I realize that others have posted with the price of the '07 being higher the '06 will retain their value better.
I respectfully disagree: My experience has shown that when a new model comes out, the previous year's model depreciate rapidly.
So from a purely economic point of view, I would do it!
If you want to really protect yourself against unforeseeable depreciation of the '06, lease it. This way you have fixed your depreciation expense. I suspect the money factor in the lease will be greater than 2.9% financing, but I would look at that difference as "insurance" against excessive depreciation.
Hopes this helps.
JeffK |
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| SilveradoMDX |
quote:
Originally posted by Loose Cannon
JeffK,
On pure economics what do you think of trading my 2004 SBP Tour/Nav, 23K miles, mint condition for a 2006 Tour/Nav. I have been quoted $9,500 + my car + tax + misc. fees. I, obviously, can also take the 2.9% over three years.
Thanks,
Loose
I say go for it, if its within reasonable budget. |
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| jcmax |
| Glab to know that the $2500 rebate continues! :D :2: . Thanks, JeffK |
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| SDTS |
That seems to be working out to somewhere around $26000-$27000 for your current MDX......that is right on the money. You are looking at a fair and aggressive deal, so if having a New MDX is in your desires, then I would also say go for it.
However, I COMPLETELY agree with JEffK.....Lease it if you can. Nobody really does know what is going to happen with the resale value on these 06 and older models, and if it does crash, then you are going to want it to crash in your 04, not your 06 if you do not have the protections that the lease provides you!!!!
The New MDX is supposed to have 5 trim levels....and when they are saying 5, they are not talking about just like they are now....Premium/Touring/Nav/Dvd/Nav and DVD....they are talking about totally different trim levels of some kind, so the new one will cover a large price spectrum which could have an impact on my original thought process of all of the models going up in money. They will be higher in price, but there are going to be models in the same price range as now as well it appears. This is all just from our Area DM, and he is somewhat known to be wrong 50% of the time, but he has sat in the NEW MDX and this is where all this info came from.
Anyways..little off topic there...your numbers look good...it's just about how you want to pay for it now!!!!! :D |
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| SilveradoMDX |
| I should have waited for this large discounted price, but my wants and needs for an MDX was higher early this year instead of this summer.:banghead: |
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| JeffK |
Dear SDTS:
If you can help, I would appreciate it: When will the '07 reach the dealers?
My '03 lease runs out end of October and I want to get an '06 as I am adverse to buying first year of production.
My experience has been, even with rebates, there are usually left over '06 when the '07 come out.
I have read your prior posts about reduction of number of '06 you are now receiving, but believe there should still be some '06 available end of October, assuming the '07 do not reach the dealers before beginning of November.
JeffK
PS: thanks for post re advising to lease to protect against depreciation. |
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| JeffK |
Dear SilveradoMDX
Cars are starting to be like computers: the longer you wait the cheaper they get!
But like a computer you need it when you need it.
So I would not worry about not getting the best deal ever!
Remember those who bought/leased an '03 paid MSRP and those who bought/leased an '01 or '02 paid a premium above MSRP.
Come to think of it, 20% of the cost of a car is now in the electronics. Like all electronics, from TV's to computers, they go down in price each year.
So cars are finally following the same pattern.
JeffK |
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| Loose Cannon |
JeffK,
I also live on Long Island, so tax is more like 8+.
I have never leased figuring that even swapping cars every 3 years it is still cheaper to own.
I have no incentive to lease as my 2004 is mine to keep as long as I want to keep it. Also, I would lose the sales tax advantage.
Loose |
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| JeffK |
Dear Loose:
I also live on Long Island, so tax is more like 8+.
Nassau 8.625% Suffolk I think is 8.5%
I have never leased figuring that even swapping cars every 3 years it is still cheaper to own.
I think if you run the numbers, leasing for 36 months will be much cheaper than owning for 36 months. In your calculations remember when you buy in New York, you pay tax on the purchase price and when you lease tax on the lease payments. The tax savings is usually more than double the bank fee.
And do not forget use of money. If you pay $40,000 for a car (including tax), that money at even 5% would have earned $2,000 per year. For 3 years that is an additional cost of $6,000 by owning.
I have no incentive to lease as my 2004 is mine to keep as long as I want to keep it. Also, I would lose the sales tax advantage.
I guess I misunderstood: I thought you posted that you could trade in your 2004 plus $9,500 plus tax for a 2006?
I said that was an excellent deal - I still do! Your tax will be on only the $9,500 the difference.
My point as to leasing was that if you plan to change every 3 years, it far cheaper to lease than to own.
Another reason to own (as SDTS pointed out) is that with the introduction of the '07, there can be a tremendous hit on resale value of the '06.
Leasing would protect you against this potential loss.
JeffK
Loose |
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| SDTS |
JeffK-
As of right now, they are saying we will have the New MDX in the month of October--Late. As I have learned with the RDX though, that was supposed to be here in May, then June, to July, to August 10th, to now possibly not until the middle of August with real numbers of the units not getting here till September....I would venture to guess November.
It is hard to say how many 06 models will be around. I definitely tthink there will be, but colors will definitely be limited by then. The situation in Calif could also be completely different than the East Coast, as traditionally, the imports have always sold better on this side of the States.
Something to think about, which you probably already have, but if the only thing keeping you from the 07 is the "first year run" thing, might be to extend your lease 6 months and then grab an 07. Usually, as the most recent Honda release in the Ridgeline has proven again, it is the first 6 months, or "batch" that hit the floors that have the problems that need a little fixing to the point that if you just make it to that 6 month range, they usually have the glitches figured out. I know many with a Ridgeline that bought it when it first came out that had to return to the dealer for leaks and minor first year issues, and since I have had mine, I have not had one thing go wrong at all..and I am at 10K miles now after 5 months. |
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| JeffK |
Thanks for the info. Based on your post, I am confident that by the end of October, the '07 will not be in the dealer.
I of course do not know if the $2,500 rebates will still be in effect.
My lease is for 48 months/50,000 miles. So if I extend my '03 it will be out of warranty - a real no-no.
As to first year of production, I only have to remind you about the transmissions in the '01 and '02s.
My '03 has the revised transmission.
So I will not be buying first year of production.
JeffK |
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| SDTS |
Fair enough.....hopefully they learned their transmission lessons!!!!!
Of course, we are talking about Automobile Manufactuerer's!!!! :D
I would be AMAZED, FLOORED, BLOWN AWAY, FLABBERGASTED and any other expression you can come up with to explain absolute shock...if they ever remove the incentive money on the 06 MDX's!!! |
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| JeffK |
Dear SDTS:
You posted:
I would be AMAZED, FLOORED, BLOWN AWAY, FLABBERGASTED and any other expression you can come up with to explain absolute shock...if they ever remove the incentive money on the 06 MDX's!!!
Hope you are right - I am counting on it!
JeffK |
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| socalJD |
quote:
Originally posted by JeffK
Hope you are right - I am counting on it!
A real simple exercise is to go to Autotrader.com and check the inventory of the dealers within a 50 mile radius once a week or so. You can easily track the trends and know if the inventory gets uncomfortably too low. When I drive by my local dealer, a quick visual glance confirms that they have a butt load of '06 sitting on the lot. If I was a betting man, I like your chances of getting into a new '06 at a very good deal at the end of your current lease . . . |
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| Teledatageek |
Opinions appreciated.....
I have a 2003 MDX Touring with NAV/RES, 60K miles. Reasonably nice shape. My wife drives it now.
Looking at the current incentives, I'm thinking maybe it's time to jump to a 2006 Pilot with NAV. My wife doesn't care if its a Pilot or MDX. She drove an '04 Pilot before I traded it in on my '05 FX35!
Any thoughts on what the net out would be on that and does it make sense to do? I have a 5 Yr x 100K warranty so the next couple of years are relatively risk free from a service standpoint but....... |
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| JeffK |
Been checking with my local Honda dealers.
First: the 2007 are already in
Second: there are very few 2006 left.
JeffK |
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| SDTS |
Well.....in California, it appears as though today, the 5th, is going to be the last day of Special rates for the MDX. We have been given extensions on the TL, but not the MDX and they would have no reason to only release the TL rates of they were going to do the same on the MDX. But the TL is only good in about 13 States.
Just thought you would all like to know in case you are on the fence of jumping and the rates would help you ake a choice that is right for you!!!! |
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| JeffK |
THEY'RE BACK!!!
From Edmunds: $2500 rebate on '06 MDX through 10/31/2006!
Att: SDTS: Can you advise if the lease rates and residuals have changed?
Finally, I might consider the Touring with Nav. Can you advise current residuals and money factor for both base (Premium) and Touring with Nav?
Many thanks!
JeffK |
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| one4gatr |
| The extended rebate is good news. If I can steal an '06 than maybe I might consider staying with Acura. You know the old saying screw me once shame on you, screw me twice shame on me... |
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| lucky777 |
| 2.9% financing for 36 months seems to be gone |
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| SDTS |
Special Rates are gone. Only available on TL's.
Money Factors remained unchanged. Residual %'s changed a little.....tell me agian the terms and I will get the %'s. Worse case, 1%. |
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| socalJD |
Attn: JeffK,
According to Edmunds, the Pilot incentive has been reduced to 2,500 and is extended only until 10/2/06. Seems like the window of opportunity is closing faster on Pilots than the Mdx . . . |
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| JeffK |
Just pulled the trigger on an '06 Premium (base) MDX.
Went back to my local dealer who has treated me quite well (loaner car and good service).
Without any negotiation, his selling price was tissue $34,129, less rebate of $2500 less $495 of his rebate, final price $31,134.
Even though the residuals changed on September 5, 2006, to 53% for 36 months, 12,000 miles per year, I went with this lease.
Bank fee was $595.
Best of all, my present lease runs out October 31, 2006, and dealer agreed to hold my car until then, so that new lease starts on October 31, 2006.
JeffK |
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