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.
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.
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|
|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.
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.
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.)
GM Acquisition Waiver: waive the acquisition fee by raising the MF by 0.00055.
Registration and doc fee:
Tax on cap cost reduction and fees: