Honda 2018 lease buy out vs new lease

Ask the Hackrs
1

Hello,

I have a 2018 Honda Civic EX with about 23,500 miles. My lease is up in July and pay off is showing $13,300. I don’t know what my best choice is as far as keeping the car or turning it in for a new lease. I am way under my miles and I know I have some equity. I got an estimate purchase price of 15,500 from Vroom. I don’t want to leave money on the table by returning it for a new lease but I also wouldn’t mind a new car. The cars I have in mind are Honda HR-V, Toyota RAV 4 or C-HR or a Subaru Crosstrek. Any suggestions, tips, ideas are welcomed and appreciated. Based in Los Angeles, CA.

2

You will have to assess it yourself and make a decision.

The main thing is to NOT do a lease return on it. You want to sell it if there is equity or if you decide to keep it you are buying it for a good price since its real world value is higher than your purchase price

By the way the HR-V leases are very low right now, Let me know if you are interested in pricing

3

You don’t actually know that until know what the third party payoff is.

The other cars that you mentioned, what are they going for in the Marketplace section?

4

I had 36,000 mile max for three years… My lease is up in a few months and I don’t drive my car often. What do you mean third party pay off?

5

Vroom, Carvana, etc are third parties not on the contract between you and the bank

Only you are granted the option to purchase the car at RV at the end of the lease.

The bank can charge any price it wants to third parties …

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6

Since you are in California and if you have the spare cash to float, then buy it out at the Payoff then sell it to a 3rd party.
you have 10 days to do this and not incur sales taxes. (Changed from 30)

there are 3 Payoff prices (Which can be the same depending on the lender)
Payoff 1 - You
Payoff 2 - Authorized Dealerships that are usually the same OEM
Payoff 3 - Other Dealerships (Carmax for example)

find out payoff 3 because it might be the same.

7

At least in the past, Honda financial did not have a different dealer pay off amount.

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8

IIRC it includes the $350 buyout fee but I may be wrong

9

You’re correct. $350 buy out if you sell to the dealer or a third party. Otherwise the same.

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10

Isn’t it 10 days?

11

Correct, 10 days, not 30.

12

So does this mean third party buyers like Vroom would be able to purchase my car at my payoff amount? I would just have the $350 buy out fee?

13

I would not be able to outright payoff my car. Maybe with a loan from the bank? Not sure if this is a good option for me.

14

If option #1 isn’t viable (Because you got no funds)
Then Option #2 or #3 is your only choice.

Note for #3 I would turn it in on the first day after you made your payment as some Car Buyers don’t mail a check right away and that can really gum things up.

15

You would need to confirm with the bank to be sure, but yes.

16

3rd parties buy Honda leases all the time, just sell it to them without buying it

17

Or you can be like me and fight HFS for that $350. Sure it took two months, hours on the phone, and threatening to sue, but I have my $350 after selling to Vroom.

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18

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