I have a Honda Civic 2016 with 26k miles on it with very minimal wear and tear. They’ll be able to sell it as pre-owned certified.
I am offering my vehicle as a trade in, but these guys are not telling me if there is any positive equity in the end of it. It seems that these guys are just taking my car and (making money on it), and not sharing with me not even the value of the car or anything. So, it seems like I am giving them my car and they are making me sign a lease, as if I didn’t even have a trade in car.
Can someone please explain to me how to go about this?
Can you explain to me in a way that makes sense. Everything I google online is confusing me
Let me provide a scenario…
I currently have a Honda Civic 2016. Let’s say that NEW the selling price was $21k. My lease currently is $390 a month.My lease ends in January, I have 3 remaining payments to make which amount to $1170.
I believe that I was supposed to have 39k miles for the 3 years, but I got only 26k miles on it.
— What is the payoff value here?
— What is the buyout value?
– How should I go about the trade in?
– Should I try to sell it myself?
– Should I try to sell it to Carmax etc?
– Or should I just trade it in at some Honda dealer to get a newer car?
---- I am looking for a Honda Accord Sport 1.5T 2018, and the lowest lease I got so far WITH THE TRADE IN is $340 a month.
What should I do so that I can not burn myself like I did the first time?
Payoff: the price you can pay right now if you want to own it. Call Honda financial and they will tell you.
Ask dealer how much they’re offering to buy your vehicle. What exact price? There is a price, they need to disclose.
If their price is higher than your payoff, there’s positive equity. If not, there’s negative equity.
You need to call the bank that has the loan/lease for your Civic and ask them what the buyout is. Payoff and buyout should mean the exact same, it’s just semantics.
There is a “buyout” price offered by the bank usually good for 7 days and then 14 days. If you get the 14 day value, also ask for the daily per diem rate on that because the dealer buying out the car would need that as well. They usually do this for you, but since you’re trying to make sure they’re not pulling the wool over your eyes, you’ll have to do this research yourself. No one here can tell you what the exact buy out amount is, you’ll need to make a phone call for that. It’s pretty easy to do, just google your bank’s customer service number and it’s usually an automated option when navigating the phone menu (in my experience).
Once you have the buyout price, you need to go to KBB, NADA, Cargurus/Cars/Autotrader and do some comparative price analysis of what your cars value is and what they’re retailing for.
Most likely, the dealer will make you an offer contingent on “wholesale” price and not retail. Wholesale is basically a price value for the car that they would need to sell at an auction. Even though you say it’s a CPO worthy car, the dealer will not look at it as that because they’ll always do SOME refurbishing so they’ll have to cover their costs. They may have different plans for your car.
Carmax can be useful, but it REALLY depends on your market. In my market specifically, every car is undervalued by Carmax compared to other dealers. Carmax does not play by the traditional market rules or used cars.
Definitely get competing quotes from other dealers/VROOM/Carvana. I’ve always have more luck with those.
Well good thing you found this place so you don’t make the same mistakes. I lease an Audi A4 for about $20/month more than your Civic and put $0 down. You can get a lot of car for what you spent on a Civic. And since you grossly overpaid by around $150/month, you probably have equity so you can get some of the losses back by selling to Vroom, Carvana, etc.
As for an Accord lease - forget the Sport, doesn’t have lease support. Look at the EX-L w/ Navi and the Touring 1.5T. They’ll be a better deal.
And since you grossly overpaid by around $150/month, you probably have equity so you can get some of the losses back by selling to Vroom, Carvana, etc.
What do you mean? Since I paid so much of the value of the car already? The guys that buy it from me will buy it for more money? I don’t get it.
Vroom just offered me 14k online. — It seems a bit fishy to accept a proposal online like that. Not sure what will happen when they look at the car if they want to reduce the offered amount or anything. Since based on my description it was above average (which it is). With 14k I should be able to have a bunch of money on the side as down payment for a new lease.
Will I have to pay any type of taxes if I sell my car to Vroom? (Since it is leased)
They mention that I will have to transfer the title etc. Do I have the title of the leased car? Or does the company that leased it to me have it ? Does this mean that I have to buy it from the dealer first and then sell it to Vroom?