My Pilot is $611/mo- According to HondaFinance the current retail value is 27.9K
My 4XE is $506/mo- According to KBB the current value is 35K
I assumed monthly price would go down since the car is 3 years old… I guess that’s incorrect?
Glad to know I can get cars quicker these days.
It depends on what kind of loan you get. Plug it into an amortization calculator and it’ll pump out your monthly payments til term date. If your 4XE RV is $35k, at 6% over 60 months it would be about $676 not including any buyout fees or taxes. But generally, @forbs is correct in that your monthly normally goes up on a 60 month loan, and you really wouldn’t want to go beyond that on a car that’s already 3 years old.
What’s your buyout price for Pilot? Go to Penfed to look at their rate for used car loan. Plug it into car loan calculator n you’ll see your monthly payment based on how long u want to finance it? If you only care about monthly payment, get the 60 months, it’s a pilot, it will last u more than that. My parent’s previous car was a 2013 pilot which they sold for $7k in 2021 with 170k miles, still drives just fine, only regular maintenance + oil change.
???
Your monthly payment will be a function of how much you financed and at what APR. It has no correlation to what your payment was before.
I think you are looking at your buyout value if on the Honda Finance account page. Your retail value is what a dealer or private buyer would pay for the car. You should have equity in the Pilot.
Ask yourself why you lease? The main reason that I lease is because I don’t like to deal with service advisors that tell me I need this and that. Everything gets fixed under warranty. Plus newer cars tend to be more reliable in general. It also makes it easy to budget the monthly payments. Obviously, getting good deals from the LH community and my low mileage requirements also make it so that leasing makes more sense.
On the flip side, my wife has had it with me leasing her the exact same car 3 times in a row. I think she’s intent on keeping her MDX this time. I’ll sell some stocks and pay the residual in cash. No way I’m going to take out a used loan at today’s interest rates. So we’ll save $430/mo, but then there will be unexpected expenses once the car is out of warranty.
The most you pay per month on your lease is your lease payment. The lease you pay on a finance is your finance payment.
Or something like that
You’re paying more insurance on a new car. You can reduce your insurance car coverage on your paid off car once its value goes down.
Are you saying that if I do buyout, I should just payoff in full so I avoid the interest from a loan?
He’s saying that’s what he would do. You can do what is best for you, loan or cash buy.
One other thing to consider. You are in MD, so you have already paid full tax on the vehicle. If you buy it out you should not have to pay taxes again. I suspect the RV on the Wrangler 4xe is going to be higher than what you can buy a used one for.
Is RV something that was dictated when I signed the lease or a number that is created when the lease is up based on industry trends/availability/etc.?
It is set at the start of the lease. You should not sign any lease until you fully understand the components of the lease, like Residual Value (RV) and Money Factor (MF). Check Edmunds Lease Forum for your specific vehicle to get these numbers, or look in the Marketplace for what brokers are offering on your specific vehicle. You should easily be able to find this information in one of those locations.
Looks like it was Standard MF and 65% residual- Looks like it was $52,520 so that would make RV 34,138
Dang, truly scary how little the OP knows about leasing financing etc! Dude needs to learn how to lease first. Go back and read the contracts that were signed and reverse engineer the leases he already has in the LH calculator so he actually knows how a lease comes together and can be terminated.
@gohawks23- I’m sure the gap of knowledge in this space between someone like you and someone like me is enough to write a book, maybe even several books. The same can likely be said about my expertise in other areas compared to yours.
The reason people like me- smart people who are aware of their limitations in this space- come to this forum is to benefit from your advice. Making someone like me feel small or inadequate or frankly, dumb benefits nobody.
You’re an expert, I’m here for your advice. If you have some, which it sounds like you do, write it in a constructive way that doesn’t try to first put me down while addressing other experts also on the forum. Talk to me, not your buddies.
Your post was basically hey everyone, look how dumb this guy is and others like him. You’re not even talking to me but you are responding to a direct comment from me. Would love your help if you’re willing to give it, but don’t treat me or talk to me like I’m beneath you because I promise you, the day will come that you can benefit from advice and you’re going to want to be treated the same way I do.
I gave you honest feedback and advice without sugar coating. Read it and click on that link I included to learn more. Post your calcs for prior leases to show what you have learned.
I read your post and yes you’re lost in leasing.
But the focus is do you like your cars and want to keep it? Specially the 21 pilot.
Go test drive ‘24 competitors and if you still like your car, call the financing company to buy it out (not the dealer).
If you don’t like it then find the car you like and trade it in (not lease return) if you have equity which you should
Don’t you have the original lease paperwork that shows the actual residual value you agreed to when you signed the contract? It sounds like you should have equity in the Pilot. Use that equity to either buy the car and finance with a used car loan, or buy/trade the Pilot and put some of that equity toward something new. If you lease another vehicle in MD, you can trade the Pilot toward the new lease and take advantage of the 6% tax saving on the entire value of the trade (not just the equity). You do not have to put any of the equity into the new lease. You can ask the dealer for a check if you want to do a $0 down lease.
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