Deal Check 2020 Honda CRV EXL, $300/month

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Hi, new to leasehacker

Looking to lease 2020 Honda CRV EXL, Trading in leased 2020 civic EXL ( Dealer willing to payoff civic lease, 2 year lease remaining )

CRV MSRP: $ 32,770

Monthly Payment: $ 300 including tax

Drive-Off Amount: $ 1000

Months:36

Annual Mileage: 10K

Is it a good deal ?

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The dealer is not paying off your Civic, they are purchasing it out of the lease. Get your payoff amount and compare it to offers from VROOM, Carvana, etc. to see if you have any equity in the lease.

It is practically impossible for us to tell you what a “good” monthly payment is for your specific lease as lease programs are highly dependent on region, personal qualifications, tax rates, etc.

We always recommend the following method before you ever contact a dealership. If you do all of the work up front, you’ll have a stress free dealer experience and set yourself for success.

  1. Read Leasing 101 (EDITORIAL | LEASEHACKR) to understand how to calculate a lease payment and the variables. Monthly payment is an output, not an input!!
  2. Pick a specific vehicle that you want to target
  3. Gather the current MF, RV and incentives from Edmunds forums for your zip code
  4. Research the LH marketplace and other deals that have been made recently on your vehicle - what was their pre-incentive discount? How did their lease terms differ?
  5. Plug your numbers into the LH calculator, and use a pre-incentive discount similar to what you have seen
  6. Create a target deal, this is what you’re trying to negotiate to. You can try different terms, selling price discount, etc. and see how your monthly payment is affected. It is also possible that different trims of your vehicle may have different MF and RV (i.e. this is very common with GM), so make sure that you look into that. Come up with a set of inputs that give you the output that you want - your desired monthly payment.

With a target price determined, you now have a deal to pursue and compare dealer offers against. More importantly, you have a solid foundation to work from.

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Volvo1 Thank you for taking out time to reply.
Appreciate it a lot.

I have appraised the civic.
As per multiple dealers and Edmunds I have negative equity of 3000 $ in my civic. In this case, how the deal looks ?

One more thing, I didn’t understand difference between paying off lease and purchasing it out of the lease.
Is it going to affect my credit score significantly.

Thank you in advance !

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Let’s ignore dealers (that have a vested interest in conflating trade pricing and your new deal) and Edmunds (who won’t actually buy the vehicle) for the trade in for a second… what do you get pricing wise from carvana/shift/vroom/etc?

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You need a quote from VROOM or Carvana to justify what the dealers are saying.

Paying off your lease means that you pay the rest of the monthly payments (either throughout the lease term or early if you are turning the car in early). You make the payments and turn in the car.
Purchasing out the vehicle means that you agree to pay the payoff amount of the vehicle and buy the car (usually the payoff is residual value + monthly payments + taxes and fees). Depending on who is leasing the car, the dealer or purchaser (Carvana or VROOM) can buy the car at a lower payoff amount.

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There is no way this deal includes $3,000 negative or paying off 2 years worth of payments, so what’s going on here?

Good deal if the equity is trivial +/-

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After seeing you trade in a lease on a 2020 civic that’s about a year old and getting that deal on a CRV EXL I would say that deal is absolutely incredible …but I just don’t see how that’s entirely possible.

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Thank you for your time.

civic has only 3000 miles on it and is in outstanding condition. Could this be the reason.

Dealer took 1 month of back and forth negotiation.

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There would still be depreciation. Why not just get a VROOM quote and compare it to the numbers you were given? Also, have you confirmed whether or not there will be some surprise “end-of-lease” fees for the Civic at signing?

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No termination fees, have confirmed.

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civic lease contract has mention of early termination fee, but dealer is willing to waive off

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Have you checked what your equity is with vroom and carvana? It takes 10 minutes.

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Have done that they all have similar offers

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Take the deal. If at all there is any room for further negotiation its wont be more than $1000-$1500 ($30-$45 in monthly payments). But we can’t get to the bottom of that without knowing exactly how much equity (+ve or -ve) you have with your Civic.

$270/mo (pre-tax) for a $32k SUV seems solid.

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As other’s have said the right way to determine your equity is to get a buy offer from Carvana/Vroom & substract your lease payoff quote amount (from Honda finance) from that. I would check this to be double sure. If you do have $2k POSITIVE equity in your lease, then the deal is not that good for a 2020 car.

Dealer’s do not have the authority to “waive” fees or anything of that sort. They simply buyout your car from the leasing company or make remaining payments as per your lease obligation. In some instances, they might not do a good job of paying your lease obligations - ex. they pay your monthly payments, but not the disposition fee or wear & tear charges. This “fee” scenario probably does not apply here, as the dealer likely wants to buy your car & sell it as a CPO.

I’m almost certain you don’t have negative equity in your car due the fact that it’s a Civic & only has 3k miles. If you made a down payment on the civic lease north of $1k, your chances of being in the red are even lower. The used car market is too hot right now, and people are literally making money by selling their leased cars (myself included :slight_smile: ).

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This is so informative and helpful.
I did what you suggested, to get value of the car and is in negative equity.

What should I be doing to get confirmation that my civic lease is fully paid.

Any other factors should I be considering before signing the deal.

Thank you for your help.

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Nobody is paying off 2 years of your remaining lease.

They are buying the car.

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