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2016 MDX with Tech Package CA tax rate 8%
Talking with a few dealers they all seem to think leasing is much better, even a dealer that couldn't match my deal tried to explain it to me. MSRP $48,380 plus $695 dealer installed options
$42,880-$1750 Lease Cash ($7945 Total Savings!!!)
Your Payment is $359 Plus Tax=$387 (35 Payments)
Total Cash & Drive off =$3980
Residual to Pay off the car at the End of your Lease $26,609 on 10,000 Miles per year
Money Factor 0.00020= 0.4%
Total cost to own $44134To Purchase $42,880 Plus total 10% Fees = $47,168 Plus the Finance fees Base on the Rate

Basically based on the 8% tax rate. At the end of the lease do I always have the option to buy at the residual value? Does it make a difference how many miles if you plan to purchase after lease.  Everyone says you will turn it back in based on current offers and buyouts. 

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Would you mind PM me with your dealer info? Thanks.

fishzebby (Oct. 20, 2016 @ 9:07a) |

I went with the TLX at the end, lower price tag, same smoothness with the MDX and maybe better.

NIKE284 (Nov. 02, 2016 @ 11:37a) |

When I bought my MDX, I had 3 different Acura dealers bid against each other.  I did it from home, through their online ... (more)

riznick (Nov. 02, 2016 @ 12:56p) |

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crownvic

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They just changed the body style in the 2017 model, meaning they're probably having a hard time unloading the rest of the 2016's.

Tell them you don't really want the 2016 because it looks old and outdated already, then make them some ridiculously low lease offer accompanied by some story about how you're doing them a favor of taking this previous years model off the lot but they will need to decide quickly otherwise you're going across the street to lease a new Lexus RX instead.

if they turn you down, walk away happy knowing you didn't give them thousands of dollars in drive off money for a vehicle that looks old the minute you drive it off the lot.

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My BS detector is going off a bit here. "Plus 10% fees"? "Finance fee based on rate"?
Are you paying a giant fee up front (prepaid interest, in effect) in exchange for the so-called 0.48% interest rate?

Let's do the math and find out.

Cost of car: $41,130
Residual: $26,609
Up front: $3980, including $387 for 1st month's depreciation and interest. Down payment: $3593 - state fees, I'll assume it's a nice round $3k down.
Amount financed: $38,130.

Monthly payment: (38,130-26,609)/36 = 320.03 for depreciation, (38130+26609)x.0002 = 12.95 interest, $332.98 total before tax.
hmm, we're off by $26 a month, or $936. Is that your upfront points to reduce interest rate, or does it cost a lot more than $593 to title and plate the car? (I'm neglecting about $200 in tax on the down payment, but that still leaves about $700 of your money going walkabouts)

Is there a lease inception fee? GM Financial charges $595 upfront to do a lease, which is in line with the cost I can't account for in your deal. 

 

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If you plan on keeping or needing another suv in 3 years, buy the mdx. It will last 10+ years. I am currently looking at an 2017 mdx or a 2017 volvo xc90 inscription...both great cars

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Do you have a business you can write-off the lease payments on? That would probably tilt it enough. Right now it is pretty close, that is assuming you 1) will buy it at least end, 2) won't go over the miles if you don't buy it. Also not factoring in the interest cost of financing the car to purchase it at lease end.

If you plan on rolling over and purchasing/leasing a new vehicle is 3 years, then you better make sure you don't go over on the mileage... I think leasing every 3 years without the business writeoff is pretty silly for most people -- unless the money doesn't matter. If the money didn't matter we wouldn't be having this thread I don't suppose.

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ryoung81 said:   Do you have a business you can write-off the lease payments on? 
  how easy is that without getting audited?

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rufflesinc said:   
ryoung81 said:   Do you have a business you can write-off the lease payments on? 
  how easy is that without getting audited?

  For you ruffles, you could deduct 100% of the use of a car that is solely used to support your rentals business -- maybe a beater pick up or minivan.

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maybe a little off topic, I'm comparing the MDX and the RDX, I have not done too much research or test drove either vehicle. Anyone have experience or opinion on these vehicles?
I am leaning toward RDX since I'm not sure if the MDX will fit in my standard garage, and also I just want the height leverage, and something not too big.
Any factors to consider with the selection process?

I plan to test drive this weekend.

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OP, if you need/want a brand new luxury/semi-luxury SUV, a '16 Acura MDX with technology is a good value. If, however, you are willing to consider a 2-3 year old luxury/semi-luxury SUV (which would still be covered by the bumper to bumper warranty), depending on your needs other SUV's can actually represent a better value. Is buying slightly used something that you'd consider? 

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I leased both of our current vehicles simply because the lease cash was about $10,000 for both, whether it was manufacturer rebates or actual lease cash, I didn't care. I've never leased before these two vehicles. When looking at it compared to buying, even if I were to buyout at the end, it was still cheaper. Now I have the option of getting rid of them if I want to--which worked out great. I recently started a WFH job so once the lease is up on one, that payment and insurance goes bye bye.

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jaytrader said:   I leased both of our current vehicles simply because the lease cash was about $10,000 for both, whether it was manufacturer rebates or actual lease cash, I didn't care. I've never leased before these two vehicles. When looking at it compared to buying, even if I were to buyout at the end, it was still cheaper. Now I have the option of getting rid of them if I want to--which worked out great. I recently started a WFH job so once the lease is up on one, that payment and insurance goes bye bye.
  That kinda the talk I get from the dealers.  You have the option, pay less state tax over the 3 years and have the option to purchase.

I'm replacing 2005 MDX I bought new 11 years ago.  Started out looking at the 2014-16 MDX Used.  Liked the new 2016 9 speed and safety features with the Tech package and with 2017 out they are moving some on price.  Not a huge inventory and I've gotten quite a few quotes from different dealers, and shared the lower ones with other dealers looking to get the price down.  They all seem to be coming back around the same and won't budge but a few hundred dollars when I write back/call.  

Lease option has been brought up 3 times since they have Acura money to apply.  I do like the idea of having the option to turn in the car or purchase.  Having a payment under $400 would allow me to save the difference to purchase at the end of the lease.  I don't fully understand what happens at the end of the lease if I beat the crap out of it and put an extra 10k miles on it.  Do I still pay the residual value? 

Is there an easy way to back into what the cost would be if I did 12k/yr based on what the my quote says?

Thanks for advise!

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NIKE284 said:   maybe a little off topic, I'm comparing the MDX and the RDX, I have not done too much research or test drove either vehicle. Anyone have experience or opinion on these vehicles?
I am leaning toward RDX since I'm not sure if the MDX will fit in my standard garage, and also I just want the height leverage, and something not too big.
Any factors to consider with the selection process?

I plan to test drive this weekend.

  
I have an MDX and a friend bought the RDX shortly after me.  He liked the road feel of the RDX more, but every time he is in my car says he wishes he went for the MDX.  He says the RDX is too cramped and appreciates the extra room in my car.

The MDX easily fits in my garage and every other one I've driven it to.

But both cars are nice.

 

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If you don't mind the looks of the 2016, saving the money makes sense.  But I would suggest you get one with AcuraWatch.  It is only about $1500 MSRP and adds a lot of safety features. 

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This is general info and not based on your specific numbers. Much of this comes down to how long you plan to keep the car.

Are you the type of person who doesn't mind spending a little extra to ensure that you get a new car every three year and you can handle driving fewer than 10K miles per year? Lease.

Are you the type of person who wants to save every penny and doesn't mind driving a car until the wheels fall off? Buy.

I've leased 4 cars and bought 4 cars and I think I did the right thing each time for the situation. No regrets.

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rock1 said:   
  
If you keep it, you pay the residual and any buyer's fee mentioned in the lease. They don't care if it's scrap metal or in new condition with 500 miles on the odometer. However, if auction prices have been going for less than the residual, some lessors might be willing to negotiate the price downward. Plan on making many phone calls in the months leading up to lease end before you find somebody who can and will sell it to you for less, and some lessors (mainly the factory owned ones) won't negotiate at all, but you might find a dealer to buy it at auction and sell it to you if you turn it in but wanted to buy it.

If you don't keep it, then you get to pay for damage, excess wear, tires wrong size or tread too worn, excess miles, and maybe a lease turn-in fee.
What does you quote say about excess miles? If it's 20 cents per mile, that's a bargain on a $40,000 car.

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samko said:   Are you the type of person who doesn't mind spending a little extra to ensure that you get a new car every three year and you can handle driving fewer than 10K miles per year? Lease.

Are you the type of person who wants to save every penny and doesn't mind driving a car until the wheels fall off? Buy.
That's not quite the OP's situation. He is wondering whether based on his numbers leasing is going to end up being more favorable even if he intends to buy at the end.

He hasn't quite posted enough information for people to answer his question, but in general, the most favorable leases have manufacturers intentionally boosting the residuals. This makes the lease payments lower than the depreciation over the same period, but also means that the residual would exceed the FMV at the end of the lease term. So, you wouldn't want to buy at that residual and would either need to turn in the car or hope that the manufacturer would negotiate the purchase price down with you at the end of the lease term.

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I am looking for exact same car in east coast. No luck. 
They only offer me 2017 and they want down payment 5k with $490/month. I think you got a bargain. If you don't mind, please PM me. Thanks.

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fishzebby, are you in some God-forsaken place like Maryland, where they add 6% sales tax on the entire value of the car to the lease?

Check the broker listings here:
http://www.leasetrader.com/lease-in/Q.mdx

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I'm trying to further complicate this transaction. Are there rules against leasing a car in Nevada to register in California?

Waiting on a call back from DMV...thought I'd see if anyone has done this.

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stanolshefski said:   
rufflesinc said:   
ryoung81 said:   Do you have a business you can write-off the lease payments on? 
  how easy is that without getting audited?

  For you ruffles, you could deduct 100% of the use of a car that is solely used to support your rentals business -- maybe a beater pick up or minivan.

  1) solely?
2) MDX or other new luxury?
 

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What happens if your financial situation changes and you need to sell it in two years? What if you just don't like the car and want to sell. If you are leasing it will be much harder to get rid of. Also there are some hidden fees if you do not turn it in and lease another vehicle after 3 years.

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rock1 said:   I'm trying to further complicate this transaction. Are there rules against leasing a car in Nevada to register in California?

Waiting on a call back from DMV...thought I'd see if anyone has done this.

  
No rules against. Just inform dealer so they can save you a step by getting paperwork done for California with lease company/arm. Most of the ones near the border (Reno, Tahoe, Vegas) are used to doing it.

You will pay California taxes and license/registration fee.
 

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gnopgnip said:   What happens if your financial situation changes and you need to sell it in two years? What if you just don't like the car and want to sell. If you are leasing it will be much harder to get rid of. Also there are some hidden fees if you do not turn it in and lease another vehicle after 3 years.
  
If I had a favorable monthly rate (like OP is looking at) I'd likely find it pretty easy to find somebody to assume the last 12 months of the lease. He'd be losing the value of the last 1/3 of his down payment, but having to sell a 2 year old MDX would probably entail a bigger loss than $1000.

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Did you check our leasehackr dont come fourm for deals and the lease calc?

Dil

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If you consider this a purely financial question (this *is* a finance forum, after all), then it is never, ever, under any circumstances EVER better to lease than to buy. Full Stop.

If you are considering non-financial elements of this question, like your desire for a cool new car to impress your friends, then you've already made up your mind.

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kenblakely said:   If you consider this a purely financial question (this *is* a finance forum, after all), then it is never, ever, under any circumstances EVER better to lease than to buy. Full Stop.
  
You're kidding, right?

Leasing is simply buying with a balloon payment loan, the balloon payment at full term being the estimated future value of the car at that point in time, except the borrower has the option of making that last payment with cash or with the car itself.

Therefore, leasing is better when the lease incentives are more than the purchase rebates, when the lease interest rate is lower than the purchase interest rate, or when the car turns out to be worth less than the residual at the end of the term.

The lease becomes worse than a purchase when the foolish lessee uses the lease as a tool to spend more on a car without pushing the payments higher than the lenders will allow with his income. If you can't afford a 72 month amortizing loan on a new car, you probably can't afford that new car.

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kenblakely said:   If you consider this a purely financial question (this *is* a finance forum, after all), then it is never, ever, under any circumstances EVER better to lease than to buy. Full Stop.

If you are considering non-financial elements of this question, like your desire for a cool new car to impress your friends, then you've already made up your mind.

  
You should not make absolute statements like this. In 2013, I leased a Nissan Leaf for 2 years where the payment was free after tax rebates. Then I did it again in 2015. Buying would have cost way more $$.

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I am in NJ. I will look into the lease website. Quick question: What else is included in lease monthly payment? 
Tax 7% (NJ), Document Fee, Bank Fee. Anything else? 

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Ken, that is NOT the case. In the OP's case in particular he is in a state that taxes the payments and not the full value at inception. In Texas you get hit with tax TWICE -- at lease start AND if you buy the car at the end. (there is a legal way to dodge the second tax IF your lease agency does the paperwork a particular way -- they never do because they as the official buyer can use trade in credits on returned leases while charging the buyer the tax anyway - legally) At least Texas does not have special insurance requirements.

In some states if you get a good deal on the lease through incentives that are not available for new purchases then you can do better leasing. If you are leasing a car for a small business then you can take the entire payment off taxes too, instead of just depreciation if you finance. Dealers LIKE leases so incentivize them -- they like re-selling the late model lease returns on their used lots at the same time they sell/lease you a new car.

In MY home state your statement is generally correct, though, due to tax method.

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FYI, the 2017 CR-V was just revealed. Might be worth looking at.

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NIKE284 said: NIKE284 said:
maybe a little off topic, I'm comparing the MDX and the RDX, I have not done too much research or test drove either vehicle. Anyone have experience or opinion on these vehicles?
I am leaning toward RDX since I'm not sure if the MDX will fit in my standard garage, and also I just want the height leverage, and something not too big.
Any factors to consider with the selection process?

I plan to test drive this weekend.


I have an MDX and a friend bought the RDX shortly after me. He liked the road feel of the RDX more, but every time he is in my car says he wishes he went for the MDX. He says the RDX is too cramped and appreciates the extra room in my car.

The MDX easily fits in my garage and every other one I've driven it to.

But both cars are nice.


We test drove both and decided to go with RDX (2017). 
Couple of negative for MDX
-It is a huge SUV. We needed primary vehicle for the wife who doesn't need big SUV after driving minivan for 16 years. 
-MDX 3rd row seat is unusable except for small kids-younger than 10 years. 
-With 3rd row seat up, there is very little luggage space. 
RDX drives more like sports car than SUV. Suspension and pick up is nice. 
Be aware that both of these will require 91 or higher octane gas. 

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CollegeSavings said:   
NIKE284 said: NIKE284 said:
maybe a little off topic, I'm comparing the MDX and the RDX, I have not done too much research or test drove either vehicle. Anyone have experience or opinion on these vehicles?
I am leaning toward RDX since I'm not sure if the MDX will fit in my standard garage, and also I just want the height leverage, and something not too big.
Any factors to consider with the selection process?

I plan to test drive this weekend.


I have an MDX and a friend bought the RDX shortly after me. He liked the road feel of the RDX more, but every time he is in my car says he wishes he went for the MDX. He says the RDX is too cramped and appreciates the extra room in my car.

The MDX easily fits in my garage and every other one I've driven it to.

But both cars are nice.


We test drove both and decided to go with RDX (2017). 
Couple of negative for MDX
-It is a huge SUV. We needed primary vehicle for the wife who doesn't need big SUV after driving minivan for 16 years. 
-MDX 3rd row seat is unusable except for small kids-younger than 10 years. 
-With 3rd row seat up, there is very little luggage space. 
RDX drives more like sports car than SUV. Suspension and pick up is nice. 
Be aware that both of these will require 91 or higher octane gas. 

  We needed 3rd row for kids and their friends so this was compromise over a minivan.  The middle row does slide forward some which is nice...2005 MDX didn't.

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Many metropolitan CA cities have state tax already near 10%!
Costs more to buy/lease in CA☹️️

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bbr said:   
kenblakely said:   If you consider this a purely financial question (this *is* a finance forum, after all), then it is never, ever, under any circumstances EVER better to lease than to buy. Full Stop.

If you are considering non-financial elements of this question, like your desire for a cool new car to impress your friends, then you've already made up your mind.

  
You should not make absolute statements like this. In 2013, I leased a Nissan Leaf for 2 years where the payment was free after tax rebates. Then I did it again in 2015. Buying would have cost way more $$.

  Actually; you're right.  I remember when this deal was on, and I wish mightily I coulda gotten in on it.  In this very narrow case, it would have been better to lease than to buy.

Otherwise,  I stand by what I said.  Leasing is basically renting, and only a fool thinks that's a good deal.  Additionally, the whole leasing ecosystem makes it easy for the leasing company to twist, mold, recharacterize and adulterate the numbers to make a bad deal seem good.  Actually; I shouldn't say it's 'easy'; rather, that's the entire business model.

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kenblakely said:   
bbr said:   
kenblakely said:   If you consider this a purely financial question (this *is* a finance forum, after all), then it is never, ever, under any circumstances EVER better to lease than to buy. Full Stop.

If you are considering non-financial elements of this question, like your desire for a cool new car to impress your friends, then you've already made up your mind.

  
You should not make absolute statements like this. In 2013, I leased a Nissan Leaf for 2 years where the payment was free after tax rebates. Then I did it again in 2015. Buying would have cost way more $$.

  Actually; you're right.  I remember when this deal was on, and I wish mightily I coulda gotten in on it.  In this very narrow case, it would have been better to lease than to buy.

Otherwise,  I stand by what I said.  Leasing is basically renting, and only a fool thinks that's a good deal.  Additionally, the whole leasing ecosystem makes it easy for the leasing company to twist, mold, recharacterize and adulterate the numbers to make a bad deal seem good.  Actually; I shouldn't say it's 'easy'; rather, that's the entire business model.

  
Like I said above, taxes and incentives can make leasing a good deal in SOME states.  In MA, forex, they require commercial insurance (or did) on leases so it was always more expensive to lease.  In Texas they tax the full value at purchase and then the AGAIN at depreciated value when/if you buy the car out at the end of the lease.  (makes it easier for the leasing company to talk you into a new one, since you "are taxed either way")   I bought mine out and don't plan to ever do it again.  At least in Texas or Mass.

I believe its IL where you pay the sales tax on the principle portion of each payment and no taxes at purchase.

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Ended up going for 2016 MDX Tech and Entertainment and 12k/yr

MSRP: 49,440
Selling Price: 42,880
Residual: 27,192
12k/yr 36mos .15 cents/mile over
Total Drive off $1100 including first payment
$498.63/mo

They also include the 3yr/36k Acura Care Maintenance

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rock1 said:   Ended up going for 2016 MDX Tech and Entertainment and 12k/yrMSRP: 49,440
Selling Price: 42,880
Residual: 27,192

This is very a decent deal on a solid, nicely equipped SUV, but also illustrates the reason that I don't buy semi-luxury/luxury cars brand new. The MDX maintains its value pretty well for its class, and we are still talking about roughly $5K/year in depreciation for the first 3 years.

Incidentally, many semi-luxury/luxury cars' depreciation stabilizes after the first 3 years or so, such that at that point they end up representing better deals than many of their non-luxury counterparts.

Skipping 11 Messages...
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When I bought my MDX, I had 3 different Acura dealers bid against each other.  I did it from home, through their online departments. 

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