Honda Lease Turn-in Fees Fees and Fees and no common legal sense

@khezik did not return the vehicle to the lessor (HFS) though.

This is not what the OP is doing. Read his original post. He is exercising his purchase option. Therefore, paragraph 27 is not applicable.

So no real resolution with Honda on this one. I was able to have the Dealership use one of their sister Honda dealerships to pay the vehicle off and avoid the fee. It worked out, but if you ask me it’s a BS fee on Honda’s part, and their unwillingness to correct the issue is why I’ll be steering clear of Hondas for now.

That was my point…simple concept really, and I’d almost argue that if it ever went to court it’d be viewed the exact same way. But alas, we will never know.

Mazda is a third party purchaser, therefore, there is no waiver of the disposition fee. That is very clearly stated that no one else can purchase the vehicle to save this fee except you.

anyone have any luck having the turn in fee waived for the third party payoff or even refunded?

The discrepancy between personal and third party payoff is not addressed in the contract. It just says the lessee is the only one that can exercise the purchase option. As someone else mentioned when we sign the poa we are allowing the third party to act on our behalf. HFS doesn’t seem to have an issue with a third party buyout, they are just adding an additional fee. if they are calling it a “turn in fee” then that shouldn’t be applicable. any lawyers out there? Lol.

Yes. They will only charge you $500 to help save you the $350 disposition fee.

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i lease so much the $500 investment could pay off if only to set a precedent with HFS :sweat_smile:

I ran into the same thing selling my 2019 Odyssey to Vroom. HFS charged the $350 disposition fee + tax. Thinking it was an error on their part, I called and was basically told I didn’t purchase the vehicle, Vroom did. I argued the contract states only the lessee can exercise the purchase option and I had to sign a POA transferring ownership to Vroom. How could I transfer ownership for something I didn’t purchase? Also, Honda’s website clearly states the disposition fee is charged when the vehicle is turned in and Honda does not charge a purchase option fee. Anyway, they said sorry but no refund.

I filed a complaint with the BBB. Honda called today to let me know the check is in the mail.

My opinion is the contract doesn’t clearly state the conditions the disposition fee will be incurred in the event of a purchase. I think Honda knows this and if it’s fought they will waive it. I’m sure there are thousands of people that don’t care so Honda nets millions every year.

If you get charged the disposition fee for selling your Honda Financial Services lease to Carvana, Vroom, CarMax, or any other non-Honda/Acura dealer, my advice is to fight it.

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Do complaints with the BBB ever actually go anywhere or amount to anything?

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It sounds like it did in this case if he got a call from Honda about it letting him know the check was in the mail.

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Not really. How does the BBB make money? The companies you complain about pay them a membership fee.

Yes and in this instance it netted me $350 plus tax. After reviewing this forum it didn’t seem there was a definitive answer to the question. After searching BBB complaints I found a few that were similar. Only one shared a resolution that indicated the complaint received a refund, the rest were just canned responses that the issue was resolved. If someone is reading this and experiencing this problem, it is definitely worth your time to file a complaint with the BBB, if you have already attempted to resolve the issue speaking to Honda Financial Services directly.

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Theoretically speaking Honda and Acura are the same company. Acura is a branch of Honda. The disposition fee is waived by the finance company when leasing another vehicle within their own company. Example: GM Financial Chevrolet, GMC and Cadillac are all the same company.
I’m going through the same with my own lease, from Chevy looking into Honda.

You could appeal their decision however the dealership purchased your lease because of the positive equity therefore your lease did not go full term, which may be a penalty fee or disposition fee. Sometimes in this case you’re stuck with the fee. If the new vehicle was still in process of writing up the contract I would suggest negotiating that as well.

Same trick played on me…I have sent a written notice to American Honda Financial services as well as complaint with BBB.

The California Lease agreement for my Honda clarity PHEV clearly mentions under section # 3. Other Charges a 350$ fee+tax will ONLY be applied if you do not purchase the vehicle and return it to a dealership.
There is no return to dealership made here. Honda should not be concerned who made the payment on the product as long as they can justify any additional processing effort is required for a check that comes from a third party purchasing agent that holds the power of attorney.
This is a class action lawsuit waiting to happen !

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We’ve seen lots of cases where the there are 3 prices on a Lease

  • The price you pay
  • The price the Dealership (Same Brand) pays
  • The price that a 3rd Party Dealership pays.

So why is this $350 such an issue?

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The issue is in how my contract is written. If HFS were to follow the terms outlined in the contract, they would never charge the $350 disposition fee for a third party buyout, in my opinion.

Why is it is such an issue? $350 x how many thousands of third party buyouts annually = a huge scam for the consumer.

I would have paid the $350 for the third party buyout, IF the contract made that clear. It didn’t, so I complained and got my money back.

Currently having this problem as well. I’m trying to get rid of my Accord. Was told by Honda Financial that if it was any other dealership brand or third party that I sold to, I would be on the hook for the 350 dispo. However, if I remember clearly if you purchase or lease another Honda within 30 days they do not charge you the dispo fee.

My plan was to sell to my Accord to a 3rd party and get myself a Passport. Was wondering if NOT paying that 350 (plus tax) dispo fee would apply if I went through a non-captive instead of HFS. Lady I spoke to couldn’t give me an answer on that and I was already on hold for 30 min before I finally got her on the phone… I was on hold for another 12 minutes so I hung up.

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If the car was paid off in full to Honda and they try and charge you the dispo fee then you are getting screwed. The purpose of the disposition fee is to clean up and repair any damage to the vehicle and bring it into a suitable condition for resale. Is Honda doing that for your car? Nope.

@d_sharp2002 right above you has the right idea. Report them, fight them, and get your money back even if you don’t purchase another Honda.

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My understanding is most of the Disposition Fee goes toward inspection. Not to ‘rehab’ the car.

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