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$299.00 per month for 36 months. $2,999.00 total due at signing. eg
FEATURED SPECIAL LEASE: Closed-end lease for 2008 Ridgeline RT Automatic Transmission (Model YK1628EW) for $299.00 per month for 36 months with a $2,105.00 capitalized cost reduction available to customers who qualify for the AHFC Super Preferred credit tier. Other rates/tiers are available under this offer. $2,999.00 total due at lease signing (includes first month's payment, security deposit, AHFC upfront acquisition fee and capitalized cost reduction; total net capitalized cost and base monthly payment does not include tax, license, title, registration, documentation fees, options, insurance and the like). Security deposit waived in lease example. Not all buyers may qualify. Subject to limited availability. Through 1/2/2008, to approved lessees by American Honda Finance Corp. Closed end lease for 2008 Ridgeline RT Automatic Transmission vehicles (Model YK1628EW), for well qualified lessees. Not all lessees will qualify. Higher lease rates apply for lessees with lower credit ratings. MSRP $28,635.00 (includes destination) less the capitalized cost reduction resulting in actual net capitalized cost $24,542.61. Dealer contribution may vary and could affect actual lease payment. Taxes, license, title fees, options and insurance extra. Total monthly payments $10,764.00. Option to purchase at lease end $16,608.30. Lessee responsible for maintenance, excessive wear/tear and 15 cents/mi. over 12,000 miles/year for vehicles with MSRP less than $30,000, but for vehicles with MSRP of $30,000 or more, mileage cost is 20 cents/mi. over 12,000 miles/year. See dealer for complete details.

The ad above can be broken out as follows:
  • $299.00 per month for 36 months
  • $2,999.00 total due at lease signing
  • MSRP $28,635.00 (includes destination)
  • Actual net capitalized cost $24,542.61.
  • Option to purchase at lease end $16,608.30.
  • Excess mileage charge 15 cents/mi. over 12,000 miles/year.
  • Total monthly payments $10,764.00.
  • Taxes, license, title fees, options and insurance extra.

Using the ShrewdLease Evaluator, the available values can be entered. The final calculate screen reads as follows:


review screen

After the SHREWD LEASE® score is calculated, the resulting email report is sent:


This is short for Manufacturers Suggested Retail Price and is established by the manufacturer. This value positions the vehicle within the marketplace and is the benchmark that is continually referred to by all sectors of the automotive industry.
Your ShrewdLease entry: $28635.00
It is clear you are looking at a vehicle toward the Luxury end of the market.

Capital Cost
This is the true sale price of the vehicle. Even though you are leasing the vehicle (you are the "Lessee"), a sale is still made by the dealer to the leasing company/lender (the "Lessor") that manages the lease.
Your ShrewdLease entry: $24542.61
Your capital cost entry is $ 4092.39 lower than the MSRP. This indicates a substantial discount is being offered on the vehicle. This fact is a good indicator that you may be on your way to a very Shrewd Lease!

Total due at signing
This is the total amount of money to be paid at or before signing the lease papers. It is sometimes referred to as a Capital Cost Reduction or Down Payment. It can be made up entirely of cash, or could be paid in part or whole with a trade-in vehicle. You may even trade-in a car, receive some cash back, and use the remaining equity to cover this charge.
Your ShrewdLease entry: $2999.00
This down payment makes up 22% of the total lease costs! Viewed another way, it is 10 times the monthly payment! Lets suppose at the end of this lease, you decide to return this vehicle and negotiate a similar lease on a new vehicle. Since you do not own the first vehicle, you do not have any equity in it, to put toward another $2999 down payment. You will instead, have to put your hand back in your pocket and pay again! Although one of the main selling points of a lease is fixed cost motoring, this is only truly achieved when a consumer can transition from one car to another, without a spike in fixed costs. A Shrewd Lessee may negotiate a more balanced down payment much closer to, or even equal to just one monthly payment!

Monthly Lease Payment
This is the fixed monthly charge you agree to pay, in exchange for the exclusive use of the vehicle.
Your ShrewdLease entry: $299.00
This payment may be acceptable to you. The most important consideration with this entry should be affordability. Bear in mind you will have additional on-going costs with any lease, such as gasoline charges and insurance.

Lease Term
This is the fixed period of time you will have the exclusive use of the vehicle.
Your ShrewdLease entry: 36 months
This lease period is close to the industry average. This duration tends to provide for a well balanced lease.

Total number of payments
This is the total number of monthly payments you will be obliged to make under the terms of the lease.
Your ShrewdLease entry: 36
The monthly payment count matches the lease term. This means a payment will be due for each and every month of the lease duration.

Total Lease Costs
This is the sum of the down payment and all of the monthly payments added together. It is the total amount committed to be paid, under the terms of the lease.
ShrewdLease Calculated Total Lease Cost: $13464
An important check is to make sure the Total Lease Cost shown in your lease advertisement, quote, or agreement, matches the value calculated here by ShrewdLease. If it does not, we recommend you ask the dealer to verify their numbers and run a new SHREWD LEASE® report. A work sheet that can be passed directly to the dealer for this reason can be downloaded at: Our research has shown that on average, 1 in 10 newspaper lease advertisements contain a numerical error!

Annual Mileage Allowance
This is the number of allocated miles that the lease provides for. Contrary to popular belief, you are in no way limited to this mileage when you lease a vehicle. You just have to pay for the privilege, should you exceed it!
Your ShrewdLease entry: 12000 miles
With an annual allowance of 12,000 and a total lease term of 36 months, the total mileage that can be driven during the lease, before incurring extra charges, is 36,000 miles. This mileage allowance is around the national average, for new vehicles. If you normally drive, or are intending to drive this amount, this allowance should be well suited for you.

Option to purchase price
This is the pre-determined price you may buy the vehicle for when the lease ends. It is normally based on what the leasing company/lender estimates the vehicle will be worth at that time, having driven the allocated mileage. Contrary to popular belief, it is purely a speculative value. It has absolutely nothing to do with the true value of the vehicle at lease end.
Your ShrewdLease entry: $16608.30
Your option to purchase price of $16,608.30 is 58% of the MSRP. This value has a big effect on your SHREWD LEASE® score! High option to purchase prices are associated with vehicles that command high resale values. A higher resale value provides the foundation upon which a lower overall leasing cost may be achieved. Vehicles that do not hold their value as well generally have lower 'option to purchase' prices and conversely, higher leasing costs. Shrewd lessees will look toward leasing vehicles that maintain higher resale values.

Excess mileage Charge
Should you have exceeded the allocated mileage at lease end and you hand the car and keys back to the lender, this is the charge per extra mile, you will be obliged to pay.
Your ShrewdLease entry: 15 cents
This charge is very low in view of the other entries made! If you were to exceed the mileage allowance, the penalty incurred would barely cover the extra depreciation the higher mileage would likely cause! This fact would indicate a ShrewdLease, in the event of exceeding the mileage allowance!

Manufacturers Warranty Period
This is the warranty provided by the manufacturer. It gives you the peace of mind that during this period, any costs of fixing problems (covered under the warranty) are not paid by you.
Your ShrewdLease entry:  
You did not make an entry for this field!
ShrewdLease suggests you consider the warranty period while reviewing any lease and avoid leasing a vehicle beyond the warranty period!

Using our proprietary statistical software, the numerous values you have entered are compared, analyzed and evaluated in relation to each other, and a single SHREWD LEASE® score is calculated. This number is very powerful! Not merely just a result, it can be used to your advantage in many ways!
Your SHREWD LEASE® score: 7.36
Your SHREWD LEASE® score of 7.36 represents a fairly! You would be getting reasonable value for money on this lease as it stands. Be sure to use ShrewdLease to your advantage and try to negotiate a higher SHREWD LEASE® score. Start by addressing any ShrewdLease suggestions that appear in this report. It is your hard earned money that you will be saving.

shrewd scale
Not Shrewd Average Very Shrewd

ShrewdLease Tip
Even though a leased vehicle is sold to the leasing company/lender and not directly to you, you should still negotiate on this Capital Cost sale price. Ask your dealer for a further discount. If successful, your SHREWD LEASE® score will improve and your payments will be lower!

The report contains a breakdown of each and every entry made, along with a summary of the overall SHREWD LEASE® score. The ‘Bell Curve’ graph towards the bottom of the report represents the typical range of current lease scores for US vehicles. The peak of the curve highlights the more common average score.

This particular lease example falls right on the average, scoring 7.36.

The SHREWD LEASE® report also suggests the ‘Total Lease Costs’ of $13,464 should be checked against the ad. This cannot be done easily in this example since the ad does not state a ‘Total Lease Cost’. Instead, it merely quotes the total of the monthly payments being $10,764, along with the total due at lease signing of $2999 including the first of 36 monthly payments.

So, the total lease costs are $2999 to be paid up front (including monthly payment no 1) followed by 35 monthly payments of $299.

Total Due at Signing:   $2,999  
+ $299 (x35) =   $10,465
Total Lease Costs:  $13,464

By calculation, the entries in the ad match the calculated values in the lease Report, so the ad is valid.

The ad states that the numbers do not include tax, license, title, registration, documentation fees or options, and a potential security deposit is waived in the lease example. Moving forward with this lease would inevitably bring these additional costs into play.