| eurojap |
Hello out there! I just joined the forum a few minutes ago sicne I am in the market for an '04 MDX. The problem is, they seem pretty scarce at the dealers in my area.
My question is this, was the lease term on the 04 typically 36 months? If so, should I expect to start seeing more of them available?
Any and all insight would be appreciated.
Best regards,
Thanks |
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| JeffK |
In my area, the leases were generally for 48 months to take full advantage of the warranty periord.
Welcome to the board and good luck! |
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| SDTS |
48 Months were definitely the lease term of choice in 04, as the units will still holding decent profits so the banks did not have any desire to put out short term lease specials. 05's were dominately 36 month leases.
Another reason you are not going to find too many 04's out there, is there are very little changes to the units from 04 to 06....so there has not been a whole lot of incentive for people to trade in their 04's...and since Acura manily sells to people that have their act together, you will also find very few Repos, so the only way these cars get back into the market, is through lease returns and trade..both not in your favor.
A little patience though. When the 07 comes out in November, you will start to see some 04's hit Acura lots in much larger numbers as there will be many that will want to upgrade tot he new model.
if Certtifiacation is not important to you...which it should be!!!!.....go to Autotrader.com......put in what you are looking for in your area and you will find some that way. Most 04's will probably be located at Non Acura Dealers where people traded them in for different SUV's/Cars. You should be able to find some for the mid to upper 20's depending on your model of choice. No matter the model, make sure you do not pay more than 30,000 for anything. :D |
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| JeffK |
Dear SDTS:
Assuming highest credit rating, for leasing an '06 MDX premium (base) 12,000 miles, would you be so kind as to confirm:
Money factor .00283
Residual:
36 months 55%
39 or 42 months 49%
48 months 45%
I thought last month there were lease specials and accordingly the money factor was lower and the residuals were higher.
Did the money factor and residuals change in August?
JeffK |
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| SDTS |
Yeah...the special ended.
It was for 36 months and the money factor was .00225%.
The residual was the same at 55% though. And the rate is now .00283 for super preferred-.00318 preferred-.00363 standard-.00403 select.
Your residuals are correct, as they did not change at all for any of the mileages. What will be different on your next lease, which you probably already know, as that if the vehilce MSRP's for over 30,000, then the mileage penalty at the end is now .20 cents instead of .15 cents.
What it really wierd is they have now made the money factor the same for 36 and 48 months...so the only thing that changes in term now is the residual. HAve not quite figured out why they have decided to do this. IN standard rates, they used to have lower money factors for 42-48 months for all the models that did not have specials.
I also have no idea why in the world they decided to remove the lease special on the MDX. Guess they are a little worried about the 07 being too succesful and they do not want too many MDX's back in the market in three years, so by making the rates the same, their hope must be to even out the lease returns so they never have too many in one month. |
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| eurojap |
Guys,
Thanks so much for the info regarding typical lease terms in '04. I guess I'll have to remain patient.
I've done quite a bit of research and driven various comparable vehicles but the MDX is definitely the choice for me. I'm trying to find a certified '04 touring w/nav.
Although few, the certified 04' touring w/nav models I'm found seem to average around $32K MSRP with mileage in the upper 30K range. I'm a cash buyer so do you think they'll pick up a check for $29K + tax on an MSRP of $32K?
Dave |
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| JeffK |
Dear STDS:
Thanks for the confirmation.
Again, I am somewhat surprised at the high money factor and low residuals.
By way of comparison, the BMW X5, 12,000 miles per year, 24 months residual is 70% and for 36 months 59% with a money factor of .00185, 4.4%. There are $2,000 rebates on these cars as well.
But each manufacturer sets their own rates and it is dependent on the market.
I will now have to look at both the Pilot and Toyota Highlander.
I suspect Acura would rather sell the '06s rather than lease them.
Can't blame them, as in my opinion, once the '07 reach the market, very few 03-06, when they come off lease, will be bought. Most will be turned in.
JeffK |
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| SDTS |
JeffK-
I was talking about that exact same thing with a customer yesterday. My thought process, as Honda has always been weak in the lease market, is that they are actually protecting their resale values.
By not having a lot of leases...like BMW, the market never gets flooded with cars, thus making their values hold much stronger.
All that being said, if they do not change their thought process, and they really are serious about becoming a true luxury brand, they are going to be in trouble not being able to compete with the other luxury leases that are out there!!!!
eurojap-
you should not have a problem getting your 04 for 29 + fees. Maybe a little cheaper..28+ fees I would go for first since you can buy what you are looking for brand new for around 36+ fees right now....however, the lack of selection does put a little more control into the dealers hands and out of yours in the negotiation process....and depending on your region..... |
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| eurojap |
STDS,
Thanks for the feedback on pricing elasticity. I understand it will vary depending upon market conditions. I just wasn't sure if they would deal at all and wanted to avoid the embarrassment of someone laughing while handing me my check back.
I'll just be patient and wait for the right '04 to come along. I suppose since the '05 models are now effectively 2 years old, I could include them in my search.
I've decided that buying a quality pre-owned vehicle is preferable to an average new vehicle. The initial depreciation hit is substantially lower while still enjoying the benefits of reliable, high quality vehicle.
I have a Mercedes that I bought new in early '98 that's still worth $9-$10K given it's condition and relatively low mileage. The annual cost of ownership is less than a new Ford Windstar I bought my wife in '04. I've already had to replace a A/C compressor and there is surface rust forming on the inside bottom edge of the doors and rear gate. Thus, I'm selling the Ford and buying the Acura.
I'm sorry Detroit but, until they get their act together, no more domestic designed and built cars. I just can't justify supporting the reitired union workers benefits any longer.
Dave |
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| Echo2625 |
quote:
Originally posted by eurojap
Guys,
Thanks so much for the info regarding typical lease terms in '04. I guess I'll have to remain patient.
I've done quite a bit of research and driven various comparable vehicles but the MDX is definitely the choice for me. I'm trying to find a certified '04 touring w/nav.
Although few, the certified 04' touring w/nav models I'm found seem to average around $32K MSRP with mileage in the upper 30K range. I'm a cash buyer so do you think they'll pick up a check for $29K + tax on an MSRP of $32K?
Dave
Why not buy a new 2006? The touring w/ Nav X's are going for around $36,000 and change in my area right now as they close them out. |
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| eurojap |
Echo2625,
The primary reason I'm buy a pre-owned vehicle in the first place (04' or 05') is to let someone that just has to have a new car take the big depreciation hit.
Besides, 29K vs 36K is a 24% swing, not chump change. I've decided to try and drive premium vehicles for the lowest possible cost of ownership. I look for undervalued brands/models with high reliability and resale. The MDX fits this category.
To buy a new '06 right now seem to be the worst possible time in terms of taking a depreciation hit. When the newly styled '07s come out, the '06s will not be worth that much more (mileage/condition adjustment) than your '04. This isn't a major factor for me as I like the vehicle and intend to drive it for about 5-6 years.
I have a '97 Mercedes that is in excellent condition inside, out, and mechanically. I bought it new and the cost of ownership, in terms of depreciation only, is less than $2,500 a year. I think buying a 2 year old premium vehicle will yield e an even lower depreciation slope over the next 5 or 6.
I could be wrong. Sorry for the long winded explanation.
Dave |
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| Echo2625 |
quote:
Originally posted by eurojap
Echo2625,
The primary reason I'm buy a pre-owned vehicle in the first place (04' or 05') is to let someone that just has to have a new car take the big depreciation hit.
Besides, 29K vs 36K is a 24% swing, not chump change. I've decided to try and drive premium vehicles for the lowest possible cost of ownership. I look for undervalued brands/models with high reliability and resale. The MDX fits this category.
To buy a new '06 right now seem to be the worst possible time in terms of taking a depreciation hit. When the newly styled '07s come out, the '06s will not be worth that much more (mileage/condition adjustment) than your '04. This isn't a major factor for me as I like the vehicle and intend to drive it for about 5-6 years.
I have a '97 Mercedes that is in excellent condition inside, out, and mechanically. I bought it new and the cost of ownership, in terms of depreciation only, is less than $2,500 a year. I think buying a 2 year old premium vehicle will yield e an even lower depreciation slope over the next 5 or 6.
I could be wrong. Sorry for the long winded explanation.
Dave
Of course that's "if" you can get an 04 or 05 for 29K. They are going for the low mid 30's around here especially certified ones.
Good luck! |
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