Hello All should i buyout my lease,
My lease ends 8-17-24 on my 2021 honda crv awd touring, with 24,350 miles on it, todays HFS payoff is $25,685, edmunds trade in value is $27,398, edmunds tmv range is $30,000 to $34,000, cars listed for sale now around me in the cincinatti, dayton ohio area range from $29,800 to $33,100 with similar mileages.
Thank You
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If you do not buy it out, what would you replace it with? Does Ohio give a tax credit versus trade in value when buying a new vehicle? Can a third party buy-out the vehicle at your buyout price?
It appears you have equity in the lease, so buyout is one option, but you may have to pay taxes/registration on the vehicle and finance the residual. Compare those costs against the cost of a new lease. You may be able to find a Honda dealer that will take the current vehicle in trade, or you can sell it to Carmax for even more money.
I wanted to lease a 2024 crv awd sport touring hybrid to relace this car, unfortunately there are not a lot of them available, and the dealerships that have them are only discounting 1% to 1.5%off msrp of $42,005 if that, along with low trade in values on my crv, I am not sure about the tax questionI will do some more research on that, and a third party can’t buy-out a honda lease.
My car is in excellent condition with low miles I like the features it has, and I am thinking of paying it off in cash and eliminating the payment.
I think with this car it’s less about the equity you have in it, and more about whether you’re totally content in keeping on driving this thing in the foreseeable future.
The best part about leases is this optionality. If you like the car and keep driving it, you’ll get the upside without having tied up a ton of capital over the last 3 years on loan payments.
If you hate this car and want to roll out of it no matter what, then it seems you can still capture some equity with buying it out and re-leasing a new vehicle or just getting some other used vehicle.
Some other food for thought: what is your money factor? It’s probably better than what you could get today.
I have an Accord lease that ends in June. My money factor comes out to 1.59%. Honda will only let me extend the lease for 6 months, where I will continue to pay down the buyout amount. In December I’ll purchase the vehicle using my own bank or credit union for financing.
[Note: I realize I sound like I’m mixing purchase financing with lease cost/financing. I appreciate that. My point is that I can’t get anyway near the cost of the money today that I got in 2021, so I’m trying to hold onto it as long as I can to continue to reduce the buyout.]
The MF is .0021/5.04% APR and RV 65% through HFS for the new 2024 car for a 36/10, $0 down lease payment is around $510 per month, $2500 down lease payment is around $430 per month.I don’t have the exact MF on my car, but my current lease is 36/10 on a cap cost of $34,167 for a payment of $374 per month through HFS.
Well I read my lease contract about buying the car at the scheduled lease end in August, the residual value price is $23,165.10, the Ohio sales tax will be $1,563.64 = $24,728.74, there might be some Ohio sales tax credit available but I am not sure.
The good thing is I like the car it has low miles and has been totaly trouble free and I will pay cash therfore eliminating the current $374 a month payment and avoiding the posible $450 to $ 500 new payment which will be put into my savings account.
The bad part is I I might have saved money if I just financed it in the beginning.
Just keep hammering away at the dealers until you get the deal,you want. You have the,luxury of time. Honda Dealers may be more willing to negotiate in August as the 2025 models start to hit lots. Keep looking!
The hybrids are very popular. If you can live with a non-hybrid gas engine there are some very good deals to be had on the vehicle you want. Check out Autocompanion in the Marketplace. I see them listed for as low as $325 a month.
