My moms 2019 Honda Civic is nearing its lease maturity. Car is in great condition and only has 16,000 miles. We plan to purchase it as its a great deal in today’s market.
Lease Payoff amount is $12,281
I was quoted by a dealer to have the car CPO’d for $1,500 which wound give me the extended CPO warranty and the CPO interest rate of 2.99% for 60 months.
My other option is to buy the car out directly from Honda financial ( I need to check what fees apply apart from payoff amount) and secure financing from a credit union or Lightstream at 4.99 - 5.99.
The lower interest rate offered by the dealer almost offsets the cost of CPO extended warranty. My estimates are payments would be >$20 more expensive. We would have a CPO’d car, pay less in total interest in total and in theory have a higher value vehicle if we decide to resell in the future.
I sell for Honda, that CPO price is a very good deal! It’ll give you 7 years or 100k miles on the powertrain and 1 year or 12k miles on the limited warranty. Also I think the CPO rates change in a few days just a heads up! Just make sure it is the Honda Certified and not a 3rd party.
Thank’s everyone.
It is the certification process through a Honda dealer making it a Honda Certified Pre-owned.
This increases Powertrain to 7 years/100k and Non power train to 4year/48k or 1 year/12k
I just got the rates this morning 2.99/ 60 or 3.99/72 for the CPO. The other rates I mentioned were through a 3rd party Credit union or lighstream loans
Yes sometimes Honda provides us special rates on CPO vehicles. They’re actually better than new car rates right now, but hopefully they keep that same rates again for October.
The CPO Honda warranty is terrible. It’s basically 1 year/12k miles (the powertrain warranty is close to worthless. What’s the chance your engine will die?). You can buy much more comprehensive OEM warranty extensions from Honda dealers online.
Going through the dealer will cost you a lot more than what you’re anticipating. You’re probably looking at close to $1,500 in additional fees that wouldn’t exist if you bought from Honda Finance directly.
$1500 to warranty a basically new civic would not be worth it, but I think you answered your own question by stating the cost of CPO is almost fully offset by the lower rate.
If the total cost of financing is the same with or with out the warranty then I guess it makes sense to get the warranty. Just seems redundant for this car. If you can spend the least amount of money without it, I would. These don’t have high failure rates on anything. Not like you’re rolling around in a Land Rover.
Of course. When something sounds too good to be true it is. They came back with a 4.99% interest rate. Told them to kick rocks, I’m going to buy the car directly and save on the fees.
One last question…
The purchase price listed on Honda Financial seems to be inclusive of Tax as it is different than the # listed on the contract for purchase option at end of lease.
Wouldn’t this be double taxed as I assume I would have to pay sales tax at registration?
So my 2019 Honda Civic is nearing the end of its lease. I decided I want to keep the car as the payoff is low making it a great value in today’s market.
I went ahead and completed the purchase of the car through Honda financials portal and sent in the odometer statement. This week I was reading somewhere and saw that Florida is a state that requires lease buyouts to happen at a dealer?
There is no mention on Honda financial website of it being a requirement for Florida, they provided a buyout quote and instructions over the phone and I was not stopped at all from sending a payment on the web portal.
What happens now? Will they send the title, issue a refund and direct me to a dealer?
