Sibling Rivalry: All-New 2018 Honda Accord ($416/Month) vs. Acura TLX ($291/Month)

Sibling Rivalry: All-New 2018 Honda Accord ($416/Month) vs. Acura TLX ($291/Month)

Sometimes, the cheaper car ends up as the pricier lease. A great example is the all-new 2018 Honda Accord, which as shown below, can cost 40 percent more to lease than its corporate cousin, the 2018 Acura TLX.

Both TLX and Accord are midsize sedans manufactured by Honda Motor Company, with TLX ostensibly being the luxury variant and Accord being the mainstream option. This is illustrated by the MSRPs: a Honda Accord EX-L 1.5T retails for $30,845, while an Acura TLX with Technology Package retails for $37,650.

In actuality though, you'll likely find TLX to be the less expensive lease of the two. Here's a comparison of the lease programs, average discounts, and incentives for the two sedans, and how it all translates into lease deals.

2018 Acura TLX A-Spec (source: www.acura.com)

2018 Acura TLX A-Spec (source: www.acura.com)

Current Lease Programs - Through November 30, 2017

The cost of leasing a particular car is determined, in part, by its lease program, which is set by the manufacturer. Here is the current lease program for each car through Honda Financial Services and Acura Financial Services respectively:

November 2017 - Programs
Model 36-Month Residual* Money Factor
2018 Accord EX-L 1.5T 58% .00200 (4.8% APR)
2018 TLX Technology Package 54% .00088 (2.1% APR)

*Assumes 12,000 miles per year. Subtract 2% for 15,000 miles per year.

This month, Honda has chosen not to support the all-new 2018 Accord with subvented rates. The money factor (MF) on Accord is a whopping .00200 (equivalent to 4.8% APR), while the MF on TLX is a more competitive .00088 (equivalent to 2.1% APR). Accord's four percent residual value advantage is more than offset by its staggeringly high MF.

Confused about terminology? Read this!

Selling Price

The cost of leasing a car is also determined by its selling price. Here are the estimated average transaction prices of Accord and TLX in Southern California, along with a Leasehackr-worthy target price that we'd aim for, if we were to get one ourselves. Note that each dealer sets its own selling price. Email the internet sales departments of several dealers for their best quotes; your mileage may vary.

November 2017 - Selling Prices
Model MSRP Average Exceptional
2018 Accord EX-L 1.5T $30,845 $30,500 $28,850
2018 TLX Technology Package $37,650 $33,300 $32,150

Acura dealers will happily lop off thousands from the retail price of TLX, whereas Honda dealers have less of a reason to do so with the hot new Accord. Although Accord will still be the cheaper vehicle to buy, the bigger discount on TLX helps make it the cheaper lease.

Incentives

Additionally, Acura is offering $3,500 in lease bonus cash on TLX with Technology or Advance Package ($3,000 on TLX Base). No equivalent lease cash is available on Accord this month. Both models, however, do offer a $500 grad incentive for those who qualify.

2018 Acura TLX interior (source: www.acura.com)

2018 Acura TLX interior (source: www.acura.com)

Putting It Together

Here are two sample deals of a 2018 Honda Accord EX-L 1.5T and 2018 Acura TLX Technology Package in Southern California, assuming excellent credit, 12,000 miles per year, and the "Exceptional" target selling prices shown above. The sample deals assume $0 down payment with first month's payment, vehicle registration, upfront taxes, and document fee due at signing.

November 2017 - Lease Examples
Model MSRP Down Payment Monthly, Pre-Tax
2018 Accord EX-L 1.5T $30,845 $0 $416
2018 TLX Technology Package $37,650 $0 $291

As you can see, Honda's mainstream Accord could cost 40% more to lease than its uptown cousin, Acura's TLX. If you have your heart set on an Accord, you're likely better off buying one outright, or wait until transaction prices trend down. We expect Accord lease programs to improve over time.

Use the lease calculator below to customize your own inputs, such as MSRP, selling price, and residual. The default inputs are for the TLX example above.

(11/14/17: Having trouble viewing the calculator? Refresh this page. We are working on a fix.)

NEGOTIABLE
% off MSRP
APR: %
GM One-pay Lease: Pay everyting upfront to lower the MF by 0.00042 (24 mos.) or by 0.00073 (36 mos.).
GM Acquisition Waiver: waive the acquisition fee by raising the MF by 0.00055.
APR: %
I want to pay my acquisition fee upfront.
CONFIGURABLE
NON-CONFIGURABLE
%
Residual (%) at miles/yr
%
Tax is levied on monthly lease payment (most states).
Tax is levied on sales price (e.g. VA, GA).
Tax is levied on total lease payment (e.g. NY, NJ, MN).
1st month payment:
Lease payment:
Down payment:
Registration and doc fee:
Tax on cap cost reduction and fees:
Acquisition fee:
Total Tax:
$350

Which vehicle would you choose? Sound off below or on Leasehackr Forum.