Residual value??????? 2006 si

[hondaonchrome]

I am trying to figure out if my honda dealership is screwing me on my lease agreement, so i am trying to find out what your guys dealerships have listed on your agreement as your residual value on your cars after 4 yrs????


On my residual value in my agreement it says that my 2006 si will only be worth $10,211.00!!!!

And i thought honda is supposed to hold there value's?????


Please let me know???
I got the shaft.......

I am paying 497.89 a month for a 4 yr lease and then at the end of the lease i still have to pay another 10 grand without taxes and bullshit,

my sticker price for the car is 20,840

Here is what my lease agreement say's

The total amount i pay at the end of my LEASE is 24,924.29!!!!
The agreed upon value of the vehicle 23,699.82.

Gross capitalized cost =$25,149.82
Money put down -$775.82
adjusted cap cost =$24,374.00
residual value -$10,211.60
Depreciation amount =$14,162.40
Rent charge +$8383.68
total of base payments$22,546.08

Lease payments 48 months $497.89 and my amount due at lease signing was $1,523.46

I traded in an 05 crv that i only had for 1 yr to get this si, now they told me that i wasnt rolling no money over but something just dont add up......I got the shaft somewhere and i am trying to figure out where its like they added money to the sticker price somehow.....I dont know......im ready to drive the car right through there front door.....lol.....
Thanks,
Lonny.

[BlaqkAudio]

The residual value is just how much it would cost you if you bought the car at the end of the lease. Mine is like $13,000 at the end of my 2 year lease. In reality, you most likely did not cause the car to depreciate that much.

[Wallyk20]

Don't forget to factor the allowed mileage too. That and the term determine your residual.

[hondaonchrome]

Originally Posted by Wallyk20

Don't forget to factor the allowed mileage too. That and the term determine your residual.

I am allowed 12,000 per yr on a 4 yr lease.

[PhoR11]

Just in case the above posts weren't clear enough:

Residual value is NOT actually what the car would be worth at that point.

In effect, the "residual value" is a discounted price based on length of lease and mileage...
That price is only applicable to the person who has been leasing the car...

If you were to let the lease expire, they'd no doubt sell it at a much higher price to another buyer.
It's just much less work for them if you go ahead and buy the car at the end of the lease, so they try to make it worth your while by giving you a discount.


However, you do pay interest based on that residual value, so the higher the value, the less interest you have to pay.
(then again, the higher the value, the more it will cost you to buy the car after the lease is up if that's something you'd consider)

[Great_Big_Abyss]

On a lease, you want your residual value to be as LOW as possible. Look at it this way.

After a 4 year lease, Honda says that the residual on my '08 Si will be approx $ 13 000 (CAD). That's the price that I can buy the car from Honda when my lease expires. Now, should I choose to get a new car when my lease is up, this is what I'll do. A month before I give my car up, I'll put it on the market for sale. At that point, depending on the car's condition, it should hopefully be worth a little more than $18 000 CAD. If the car sells, I'll just write up an agreement with Honda to trade the car to its new owner. The guy gives me $18 000, I give Honda $13 000, and I walk away with $5000 in my pocket.

Don't complain about low residuals on a Honda lease. Your car will always be worth more at the end.

[PhoR11]

That's true in most cases Great_Big_Abyss, however the lower your residual value, the more interest you pay on the lease... so you may or may not come out ahead by having a low residual and selling for actual value.

Every lease agreement is different :X

[hondaonchrome]

..........added to first post.

[BlaqkAudio]

Something seems wrong. If buying the car at the end of the lease, I know that it usually costs more than if you bought the car outright, but paying $35,135.60 for an 06 Si is ridiculous. My 08 LX comes out to be roughly $21,000 and that's only roughly $3000 over MSRP. You're numbers are really big, and I have no idea why other than it's an Si. Here are mine for comparison, although I have an 08 LX:

Gross Capitalized Cost: $17,765.86
Capitalized Cost Reduction: $2,763.55
Adjusted Capitalized Cost: $15,002.31
Residual Value: $13,060.45
Depreciation: $1,941.86
Rent Charge: $1,394.14
Total of Base Payments: $3,336.00

$139/month for 24 months, $4205.89 due at signing (includes various fees and taxes and first month's payment).

[hondaonchrome]

Originally Posted by BlaqkAudio

Something seems wrong. If buying the car at the end of the lease, I know that it usually costs more than if you bought the car outright, but paying $35,135.60 for an 06 Si is ridiculous. My 08 LX comes out to be roughly $21,000 and that's only roughly $3000 over MSRP. You're numbers are really big, and I have no idea why other than it's an Si. Here are mine for comparison, although I have an 08 LX:

Gross Capitalized Cost: $17,765.86
Capitalized Cost Reduction: $2,763.55
Adjusted Capitalized Cost: $15,002.31
Residual Value: $13,060.45
Depreciation: $1,941.86
Rent Charge: $1,394.14
Total of Base Payments: $3,336.00

$139/month for 24 months, $4205.89 due at signing (includes various fees and taxes and first month's payment).

Yea mine is screwed i have like 3500 bucks that i cannot account for,I am going to contact my sales guy today and have it out with him.

[06CivEXJon]

Originally Posted by hondaonchrome

I am trying to figure out if my honda dealership is screwing me on my lease agreement, so i am trying to find out what your guys dealerships have listed on your agreement as your residual value on your cars after 4 yrs????


On my residual value in my agreement it says that my 2006 si will only be worth $10,211.00!!!!

And i thought honda is supposed to hold there value's?????


Please let me know???
I got the shaft.......

I am paying 497.89 a month for a 4 yr lease and then at the end of the lease i still have to pay another 10 grand without taxes and bullshit,

my sticker price for the car is 20,840

Here is what my lease agreement say's

The total amount i pay at the end of my LEASE is 24,924.29!!!!
The agreed upon value of the vehicle 23,699.82.

Gross capitalized cost =$25,149.82
Money put down -$775.82
adjusted cap cost =$24,374.00
residual value -$10,211.60
Depreciation amount =$14,162.40
Rent charge +$8383.68
total of base payments$22,546.08

Lease payments 48 months $497.89 and my amount due at lease signing was $1,523.46

I traded in an 05 crv that i only had for 1 yr to get this si, now they told me that i wasnt rolling no money over but something just dont add up......I got the shaft somewhere and i am trying to figure out where its like they added money to the sticker price somehow.....I dont know......im ready to drive the car right through there front door.....lol.....
Thanks,
Lonny.

Yikes! and i see some 06 Civic EX's go for 14k used WTF?! but thats only a small percentage but i've also seen some go for as much a new one costs. I think you'll be fine. I pay 380 a month for my EX haha :P

[hondaonchrome]

I was at the dealership tonight and talk to the manager and he just told me that he can charge me whatever he wants for the car and it was my fault that i didnt see it when i was sighning the paperwork.........He is a f...ing a..hole and i told him i am going to contact my local news station and make sure EVERYONE knows how shady and dishonest his dealership is.

[06CivEXJon]

Originally Posted by hondaonchrome

I was at the dealership tonight and talk to the manager and he just told me that he can charge me whatever he wants for the car and it was my fault that i didnt see it when i was sighning the paperwork.........He is a f...ing a..hole and i told him i am going to contact my local news station and make sure EVERYONE knows how shady and dishonest his dealership is.

Wow what a douche bag! i hate salespeople like that,i would of walked before signing anything. GL man get the dealer back good!

[tj_lethal]

Your getting screwed cause I will own mine by the time your lease is up and I only put 2K down. Also I pay less than you a month. I also thought the whole point of a lease was to pay almost nothing and have the choice to refinance or trade it in on something new.

[rob76]

I'm sure the news will post your story on the front page! "Retard signs lease agreement without knowing jack shit about leases" ROFL

[hondaonchrome]

Originally Posted by rob76

I'm sure the news will post your story on the front page! "Retard signs lease agreement without knowing jack shit about leases" ROFL

lol....Yea i know, But when it came down to signing i had my 2 yr old son with me and he was being a total monster for me and so everything got rushed and i really didnt get a chance to go over everything.

I know that technically it is my own fault because i didnt read anything but i just cant believe that they could be that dishonest with me about this and not even give a shit about me as a 8 yr customer of that dealership.And all that i really wanted done was for them to change my lease to a buy but they just didnt give a shit.It is sad, it just show's you how they are only out to make a buck instead of taking care of there customers and thats why i am so upset with honda right now.

[rob76]

Dude, when I went to buy my car the local dealer lied to me about everything. The guy told me there was a $350 lease fee, and that they had a program with the local police where they etch all the major components of every car they sell and that I HAD to pay $450 for this. Anyway, I called a dealer in a town 2 hours away and they didn't want to charge me any of that. In fact, I got the car for $250 less and I got a 1.5% lease rate. I pay $330 a month and that's with 12% sales tax! Don;t forget the car is like 28, 000 here in canada. lol

Anyway, If you let them they will screw you as hard as they can. They sales guy makes more money and so does the sales manager. They all get their piece of the pie so they want to trick you into paying as much as possible.

[SilentBob420BMFJ]

Originally Posted by hondaonchrome

I am trying to figure out if my honda dealership is screwing me on my lease agreement, so i am trying to find out what your guys dealerships have listed on your agreement as your residual value on your cars after 4 yrs????


On my residual value in my agreement it says that my 2006 si will only be worth $10,211.00!!!!

And i thought honda is supposed to hold there value's?????


Please let me know???
I got the shaft.......

I am paying 497.89 a month for a 4 yr lease and then at the end of the lease i still have to pay another 10 grand without taxes and bullshit,

my sticker price for the car is 20,840

Here is what my lease agreement say's

The total amount i pay at the end of my LEASE is 24,924.29!!!!
The agreed upon value of the vehicle 23,699.82.

Gross capitalized cost =$25,149.82
Money put down -$775.82
adjusted cap cost =$24,374.00
residual value -$10,211.60
Depreciation amount =$14,162.40
Rent charge +$8383.68
total of base payments$22,546.08

Lease payments 48 months $497.89 and my amount due at lease signing was $1,523.46

I traded in an 05 crv that i only had for 1 yr to get this si, now they told me that i wasnt rolling no money over but something just dont add up......I got the shaft somewhere and i am trying to figure out where its like they added money to the sticker price somehow.....I dont know......im ready to drive the car right through there front door.....lol.....
Thanks,
Lonny.

according to consumer reports, the car should be worth about 55-60% at the 4 year mark (i forget, but it was something like 58% at 4 years and 52% at 5 years), but remember, the amount of miles is important; they probably base it on the average, which is like 12000 a year.. so that means if you have like 50000 miles on it, and its like 50 months old, it would be worth around $12000 assuming you dont have navigation (i based these numbers on the car being $21000 new).. what im wondering tho, is do they base the original price (consumer reports or the dealer) on msrp from when you bought it (which should include the destination charge)? or do they not include the destination charge? as without destination charge, the car would be like $20500

[rob76]

The lower the residual the better. In my case, in Canada, my residual after 5 years is 11700. But even 10 year old preludes are still selling here for $15000 and they were 27G's new (same as the Si now). So when my lease is up I will buy out the car for 11700 and then sell it myself for 20G's and keep the difference.

[rob76]

The part they're screwing you on is the Rent cost. That's how much interest you are paying to Honda Finance. In my case I'm only paying about $1500 in interest. But that was a special offer because cars are so cheap in the US now (since our dollar is equal value to the US dollar).