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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