Early Buyout of Acura MDX Lease

I posted my lease numbers here:

@lease4peace that’s a really great deal…much better than the one I negotiated just two months ago.

Two months ago the incentive was only $4500 vs your $8500. I did scoop a conquest rebate and some discounting directly from the dealer.

I guess we’re going to find out the answer to the buyout question definitively when you contact AFS for a buyout quote in a month or two right?

Definitely interested in what the buyout total is. Let us know what buyout you get from AFS. I don’t see why you would have to wait a couple of months. I think that might just be what the dealers say to ensure they get their financing kickbacks. Thanks!

What was the dealer discount on your deal? Interested to know if the dealers are giving smaller discounts since so much is coming straight from Acura now.

Just spoke to an Acura financial services rep and she asked me to check with dealer. Dealer said, I need to pay whole remaining monthly payment including rent ( money factor) if I buy out early. So, I cant take advantage of Lease incentives. Damn!
I was offered 31995 on Lease for base RDX.

There is some confusion between all of the people that have been asked (i.e. dealer, finance company, etc.) and it is coming down to semantics. If you terminate early, you DO pay the remaining rent on a lease. This is because the term “TERMINATE” means, give the car back and walk away before the agreed upon term of the lease. This is in your contract. It is a clause to keep you from just giving the car back to the back and walking away, which they don’t want to do because it takes alot of work and money for banks to sell your car - they are in the lending money business not the owning cars business and terminating early does not allow them to make money. So, when you ask the lender “what happens if I TERMINATE early” that is the response you will get: you owe all remaining payments including rent charge. However, if you ask them for a payoff, it does NOT include the rent charge. Rent charge is the equivalent of interest and the bank will not charge you for interest (read rent charge) they have not earned. This is why your payoff is not the same as your residual plus your remaining payments.

So, to answer the OP’s question and for all others that are confused, you CAN come out ahead if you lease, take the higher lease cash, and then call the bank to payoff the car (and own it - i.e. NOT TERMINATE and walk away). However, you will probably lose one month’s rent charge and the bank acquisition fee, which will eat into your gain. Also, it’s a pain in the ass. If you are planning to pay cash already, then it may make sense to lease up-front, take the lease cash and then payoff the loan when you get the first payment (IT WILL NOT INCLUDE ALL RENT CHARGE). BUT, if you are planning to finance after the lease, then it probably will not be worth the headache.


Thanks for explaining in detail. I did mention to the dealer/AFS that , I want to buy out. Seems either they got confused or they are not aware. Anyway, appreciate your comment,.

Great post.

After I finished leasing, I asked the sales rep about the buyout option and he told me that it is definitely possible and he personally has done that in the past. Note that this conversation happened AFTER I had already leased my car so he had no reason to lie to me.

I agree with @Irongunner that this set up makes more sense if you are able to pay cash for buyout to make things simpler.

Yeah after all incentives I paid ~27% off MSRP for this car. I’m curious to see how the discounts change for labor day weekend. I know 2019 inventory would be very limited at that point so I didn’t want to take that chance.

Arrrrgh! I only got 15% off on a financed purchase. However the car I was negotiating for was the only one like it in the Western US. I know this because I checked the website inventory of every single western dealer (there aren’t that many…it only took about 90 minutes). Also the transaction was in May before 2020’s started arriving. And finally the buyer (one of my siblings) doesn’t have perfect credit and needed a car right away as his Lexus RX was totaled (not my siblings fault).

Anyway 27% discount is awesome! Nice work!

Anyone know what level discounting is being offered on RDX’s? When I return to the US next week I need to get to work on buying one for my parents. I wish I could convince them to go with an RDX, but they say it is way too big for them. They want something smaller.

so far the best on RDX I have seen is 31995 on lease and 33600 on purchase. All the number before loyalty incentive. This is SoCal.

The buyout is correct. When we were looking at it the lease incentive was ~4k more than the buy incentive. Lease incentive was around $7500 vs buy incentive of $3500.

So if you had the cash it was better to lease then buy it out after the first month. After the all the fees you’re still up $3k.

But if you don’t have the cash to payoff the car, or need a loan to finance the payoff, it’s probably easier to just finance the car outright.

You think so? Just curious why…

I’m glad this topic came up because I leased a 2018 BMW 330e (MSRP: $57k) two months ago. And I was curious what my buyout price was after first month’s payment and it was only $42k (roughly 26% off).

BMW’s 60 month finance APR was 2.9% then and my my local credit union is offering 2.74% APR loan with other perks.

It seems like if someone wanted to buy a car, it’s better to use the lease incentives (which is usually higher than the financing incentives) then immediately buyout…

I’m starting to think the same way.

I was just saying on the assumption you normally get better financing for buying a new car from the dealer. And maybe you’d need to get a used car loan rather than a new car loan?

If you can get that low of a rate from a credit union, then it would make sense to lease/buy out with the loan from the credit union.

OK… I finally have some real numbers to share!

The payoff number I see on Acura Financials is $38901 with 35 payments remaining. Here are some other relevant numbers:

MSRP: $52695
Negotiated sales price: $39595 (includes all incentives except the $1k royalty which is applied as cap cost reduction)
Gross cap cost: $40190
Cash paid at signing: $1262 (first payment + DMV + tax)
Cap cost reduction: $1000 loyalty

Based on these numbers “Buyout = Gross cap cost - Cash Paid at signing”. This means that by going the lease-then-buy we can take advantage of the larger lease incentives BUT we loose out on the $1000 royalty. Still comes down to 25% off MSRP for purchase which is pretty good IMO.

1 Like

Your calculation for buyout doesn’t make sense.

Should be more like buyout = cap cost - $1000 rebate - depreciation portion of first month’s payment

The details may need fine tuning, but basically what we’re all seeing (from Acura and BMW) is that we can take advantage of amazing lease incentives from the OEM to reduce the overall capital cost of the car.

Then one month later we can turn around and buy the car out at this low lease incentive driven price.

On average it looks like a great way to get another 5-10% off MSRP.

Credit Unions are a great source of extremely aggressive financing. Your CU or a Home Equity LOC could be used to finance the buyout if necessary. If HELOC you could also potentially deduct the interest (need to check that).

It sounds like a lot of trouble, but it’s not really if you have good credit or cash to buy out the lease.

Finally when I was at the Acura dealer they asked me to wait two months before buying out the car. I vaguely recall they said “hey please make the first 2nd payment before buying the car out”. They gave me some BS excuse about how it takes a while for the lease to be processed and show up in AFS’s systems. I suspect the real reason is that if a customer buys the car out too soon, then the OEM and the captive recast it as a sale and charge the way the dealer is compensated whereas no such true up exists after a few months from the sale date.

This has turned out to be a really informative thread. I plan to use this technique the next time I “buy” a car or truck.


Now see if you can get them to offer a larger cap cost discount in exchange for a marked up MF

1 Like