The lease on my 2019 Honda CR-V is coming due in about 2 months, and I’ve decided that I want to get something new rather than buying it out (my life has changed a bit in the past 3 years and I no longer need such a large car… probably going back to a Civic but haven’t decided 100% on the new car yet)
I know that Honda Financial has banned third party buyouts, so if I wanted to sell it to an online site or even trade it in to a different dealership, I’d have to buyout the lease on my own, get the title, and then sell it? And does this hold true even if I wanted to sell it to a Honda dealership rather than trading it in?
The lease purchase price is $21k and even the online estimate at my local Honda dealership puts it at $26-28k, so I definitely don’t want to leave that money sitting on the table. And I’ve got the cash to buy it out if I have to, but if selling it to Honda avoids the hassle of having to wait for the title and doing whatever will need to get done at the DMV to complete the process, that might be a point in their favor.
Try Autonation. They have the Honda brand on their list, so they theoretically can buy it.
I did that with my Infinity - sold it to Autonation because they have Infinity dealerships.
Get a quote online and then see if the listed store on the certificate will facilitate the purchase. For me, it was Land Rover of Mt. Kisco, but they refused to buy, while Land Rover in White Plains did without hiccup.
Agree with the previous two responders - you best bet is to find a Honda/Acura dealer willing to “buy out your lease.” You turn in the car to them and collect a check for the equity, and you are done.
Given that you are going to get something new, if it is a Honda, it may be advantageous to do both transactions with the same dealer. More room to negotiate as the dealer now has opportunity to make money on two transactions - the new car they sell you and on the resale of your returned lease. BUT don’t assume that will be the best option - check with other Honda dealers, as it is quite possible that someone else may be willing to give you a better prices for your lease return.
Note that most metro areas in the US have “dealership groups” - a single owner who owns multiple dealerships, including different brands. A group like this which has a Honda dealership can arrange the lease return through the Honda dealer while transact your new car through a different brand dealer if you decide on a non-Honda new car.
Sorry for the add on here. I am looking at getting into my first lease and am wanting to put $15K down to keep lease payments down. What happens to that down payment when the lease is up and I want to lease another same vehicle? Do I loose that equity or if I deal with the same dealership will that equity be used for the new lease?
At the end of a lease, the amount of equity is the same if you put $0 down or $15k down. Its entirely based on the residual value relative to the market value.
No, you don’t get the money back at the end, you get a proportion back every single month in the form of a lower payment, plus you’ll pay less in rent charges (total lease cost will be lower).
Look at the total lease cost both ways, and then make an informed decision. Consider:
How many cars on average do you total every three years?
How much in extra rent charges is it worth to you to mitigate the risk of a loss like this over the next three years?
