Deal Check - 2024 Honda Accord Hybrid

Ask the Hackrs
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1

Key Data:
Coming off existing 2021 Honda Accord Sport Lease
Existing lease was $3500 down and $296 per month
Payoff for 2021 Accord is $17,868.40 from the original lease paperwork
3 yr/30,000 mile lease; car has no damage and 23,000 miles

I’m being offered a 2024 Honda Accord Hybrid Sport. My attempt at the calculator:

From my offer:
Market Value Selling Price: 34095.00
Discount: 500.00
Rebate: 500.00
Adjusted price: 33095.00
Dealer Added Stuff: 699.00
Total Purchase: 33794.00
Taxable Fees: 104.50
Trade Allowance: 18,500.00
Trade Difference: 15294.00
Dealer Fee: 999.00
Tax: 288.50
Nontax Fees: 162.00
Net Price: 16848.00
Trade Payoff: 18525.76
Balance: 35373.76

Residual value: 21138.90 (62%)
Payments of $459 per month

I’m very new to leasing as we’ve always just bought out cars. We thought we were going to only need a car for 3 years, so we leased this one with the intent of giving it back. However, we like it and may buy it out.

I see my options as:

  1. Turn it in and get something else somewhere;

  2. Buy it out and keep it;

  3. Turn it into Honda on the lease above;

  4. Extend the lease (which I can do for up to a year).

The deal they are offering is $160 more per month than what I’m paying now, but I’m concerned that I’ll be in the same territory if I buy it out. I know that USAA will give me a 6% finance rate.

I’d really appreciate any help in navigating this situation.

CheapDad

1 Like
2

Check some other dealers, i think others have gotten a larger discount. Come up with a target offer, take a look at the signed section. Also get a buyout quote from autonation and some of the other dealer network based e buyers (not sure if HFS still restricts buyouts)

3

I’d lean towards

There are some cars that really benefit from leasing (volatile resale values, overestimated RV, huge rebates, etc). None of these really apply to the Accord.

Cheap to extend the warranty on Hondas too if that’s something you would want

4

Thanks very much for both responses. I’m definitely feeling like the offered deal is not so great, but that may just be that we’ve been out of the market for a few years. We’ve been leaning towards buying it out.

I did check out the forum and someone purchased a 2024 Accord Hybrid outright and the purchase price was lower. I’m not sure how that equates to a lease selling price.

5

One additional thought on this situation: Honda will give me the option of extending the current lease for up to one year. I imagine that the cost of money I got in 2021 was better that what is available today and better than the 5-6% I’ll get on a loan. I’m thinking I should extend the lease to continue to pay down the car at what is likely a lower rate than what I would pay if I buy it out today. Any flaws in that logic?

6

There’s no reason to make any assumptions. What’s the breakdown of your payment between depreciation, rent and tax?

And does the RV/buyout continue to decrease with each payment during the extension?

7

What state are you located in?

8

You’re absolutely right. I’m in Florida and that’s where the lease originated.

From my initial paperwork:

DAS - $4000 (Cap Cost reduction $2427.35, sales tax $169.91, 1st month $295.91, registration $187.16, Doc fee $761.50, Doc tax $60.17, Electronic filing fee $98.00) ($500 pd by dealer, $3500 pd by me)

Monthly payment of $295.91, total $10,652.76

Total depreciation is $8895.25.

Payment breakdown is monthly use $276.55, monthly sales tax $19.36

My paperwork doesn’t have a breakdown of depreciation per month. I imagine I can divide $8895.25 by 35, which is $254.15.

I assumed that if I extend the lease, it would continue to pay down our purchase amount. I’ll check with Honda.