$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?
They are supposed to give you a doc that says bill them for taxes
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?
Anyone have experience with this?
I do not know about Honda, but it has been reported here that Nissan now allows direct buyouts in Florida.
If it is legal for Nissan to allow direct buyouts, I assume it is legal for Honda also.
I bought out directly through the hfs portal earlier this year. They mailed the title and related paperwork. No dealer needed.
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Are you from Florida?!
He is.
There are rules that allow Banks to bypass the dealer buyout and Honda appears to pass it.
BTW Nissan was just being dicks about it, they got in trouble and turns out they also can bypass that rule.
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Yup. The rules seem to require either licensure or a physical location in the state, so it isnt universally applicable.
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I’m nearing the end of my lease too and thinking of buying it since it’s way cheaper to do so BUT I have equity because it’s worth a good chunk more than in 2020 when I leased it. Did you by chance have equity too and if so, did they apply it to the purchase?
Did they require a vehicle inspection?
Nope. Just took the title and paperwork in to the dmv after it arrived.
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Yes, I have a ton of equity. But I want to buy the car. I wouldn’t be able to find anything close to what I owe on it and its way under miles.
One thing to note is Honda requires the car to be returned to Honda or purchased directly by you, cant sell to a 3rd party dealer or Carvana type to cash in on equity.
The dealer did try and sell me a CPO for $1,500 + fees, but they did a bait and switch on the rate they quoted which is why I said screw it and bought it direct.
I just got a bit concerned after reading about these issues in Florida. Good to hear it wasn’t
a issue for some. I’ll be sure to update once I receive title
I’m confused as to how we get the equity.
You cannot apply the equity in your leased car to purchase it.
If you’re buying it below current market value, that delta is your “equity” … on paper. But it’s not realized until you sell it.
I see. So the only way to get a check cut for your equity is if you turn the car back in.
Equity is the difference between what you owe and what the car is really worth.
If you take the car back to Honda they may offer you more than the car’s payoff is worth( your equity) and apply that to a purchase or new lease, but that’s unlikely as dealers are trying to keep that for themselves.
The other option is to buy out the car directly, and resell it. Keep in mind the used car market is declining pretty quickly and you would have to consider tax in that scenario.
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Turning the car in = dealer is going to interpret that as a traditional lease return. Which means you walk away with typically nothing, except a bill from the bank for disposition fees and any excess wear
You want to “sell” your interest in the car to the highest bidder in order to get a check.
Even if you don’t own it, you have a right to purchase it or to choose who gets it. Hence your ability to sell it to the highest bidder.
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Update: 1.5 Weeks after submitting my buyout payment directly on the Honda Financial payment portal I received the title and bill of sale. Hope this helps someone else. Seems to be a lot of conflicting info surrounding lease buyouts in Florida.
Thanks!
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