Turning in 2016 Honda Civic LX five months early. 293/month payments. 38.3k miles on the car. Payoff is $14084.
Dealership is trading in car/valuing car at for $11,500.
New Lease
2019 Civic LX.
8 Miles
$356/month
Nothing down and “eating” $779 driveoff.
MSRP of $21145
Sale price of $19197
Residual of $12475
Money factor .00159%
12K for 3 years
Thoughts? Thanks in advance.
Aaron
$293 is your current payment? What will the new payment be?
What is the value of the '16?
Please stop paying $300/month for base Civics. You are lighting money on fire. In the span of two leases, you could have more than paid off an entire Civic LX. Pretty sure they usually last longer than 6 yrs/72k miles.
You need to look at leasing something with solid incentives (look through the forums), or just buy a Civic.
Also, I don’t think we need to discuss turning in the 2016 Civic early any more than we already have…
And aren’t you already over miles with your current 36/12? Why are you doing another one?
edit: wait. Why would you possibly trade in the car for $11,500 and roll in $2584 when you could just eat the remaining 5 payments of $296 ($1480) plus 2300 miles @$0.15/mi = $345? What am I missing?
That MF is marked up unless it changed this month, but last month it was .00092 for tier 1 and .00127 for tier 2.
What are the monthly payments?
I’m pretty sure your civic is worth more than what they’re gving you for it. Sell it separately from the lease.
$356/month. Too much?
They’re valuing it at $11500
Thousand in negative equity
$1500 in remaining payments
$356/months
Your response makes me feel a bit confused. Can you explain your last edit again? Frankly, we don’t have capital right now to eat overage on miles or negative equity. I apologize, but can you reexplain?
There’s a difference between what the dealer is willing to pay for your car (trade in value) and what the car is actually worth (book value). My point is, if you’re car is valued to be more than $11.5k…it is already a poor deal, disregarding the terms of the new lease.
Just finance your current 2016 civic with a credit union for the payoff value of around 12.5k. 5 year Payments should be around 250-270 and you will not have to worry about mileage overage etc etc
Are you saying you are rolling in a total of $2,500 towards the new lease?
Right off the bat, paying $350+/monthly all in on an MSRP of around $20k is crazy to me.
The cost of your remaining payments plus the mileage charge is less than the negative equity you are proposing to roll in. You could have the dealer roll this into the new lease. You’re spending $5 to save $3.
Also you’re going to do all this to lease the exact same car you currently drive, which again results in you paying more over 2 leases than it would have cost to own the vehicle outright. I don’t understand why you don’t just buy the one that you have now.
356/mo for a base Civic too much? Nah.
With only $9000 down, he could be driving an Accord Hybrid!
You beat me to it! Ha!
IMO, $13k for a base Civic is worse than $21k for a loaded Accord Hybrid.
Look around on this forum and see what kind of cars you can get for $300/mo, getting another civic and going over miles again is crazy(do 15k and not 12k again). Get your car appraised by carmax, vroom and which other ones are in your area.
As others have said, just buy it out. Changes from 2016 to 2019 are very minimal. You’ll be in debt and unable to retire until you’re 115 if you keep making poor financial choices like this.
Civics retain their value very well. They’re most likely undervaluing your car. Sell it private party. I think you can get 14k for it.
You should finance the car if you planning on paying $356 for a Civic.
$356 x 36 (3year lease) = $12,816
$12,816 + $ 779 (drive off) = $13595 total paid towards the car.
$356 for a Civic LX. Holy hell.
Get Vroom and Carvana offers on your current ride and report back. Methinks you gotta get away from Honda.