Lease ending, are these ridiculously high offers for real?

Ask the Hackrs
1

Signed 2 killer deal leases 3 years ago with the help of this awesome forum for the 2018 6MT Honda Accord and 2019 Forester Touring. 3 payments left on both and tried to get quotes across Carvana, Carmax, vroom and shift.

2018 6MT Honda: RV 16.5k, highest offer $31k
2019 Forester Touring: RV 22k, highest offer $38k

Originally planning on purchasing both cars at end of the lease but if I am getting offered that much, who am I to refuse? What am I missing here? I will at least consider getting rid of the honda to get a new Tacoma either lease thru Jim or purchase.

Carvana did say they can’t purchase a lease from honda financial though, is there any other workaround other than fronting the payoff money myself then selling to Carvana? Advise and other inputs are appreciated!

2

You can sell the honda to a honda dealer/someone that can facilitate the buy out through a honda dealer or you can buy it out yourself, pay the necessary sales tax, and resell.

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3

Thanks for the reply brother. If I buy it out myself and pay the sales tax, is there any way I recoup that money? Wouldn’t that route make Carvana or any third-party’s offer significantly less after end-of-lease purchase fees and sales tax vs. sales tax-exempt from dealer buyout which should net me more $? Am I getting this right?

Thanks for your help. First time selling a lease.

Edit: State is NV for info.

4

No, there’s no way to recoup the tax, unless you’re in CA.

You would need to get offers from Honda dealers and the usual places to see if paying the sales tax makes sense

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5

Or unless you are in VA. Suddenly paying low 4.15% sales tax on the full price makes VA leases much better, if you are buying your car out.

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6

What are the usual places for Honda Financial buyouts other than honda dealers? I believe AutoNation, and possibly CarMax from what I read in this forum, correct?

7

Damn. I wish. I’m looking to shell out 8.375% if I opt for Carvana.

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8

Honda or Acura dealer or a dealer network that can process the transaction through a Honda or Acura dealer. Autonation if your local dealer will do it, rodo, etc.

Catmax can not.

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9

None

You or a Honda dealer can buy your lease. If the auto group owns a Honda dealer (e.g. Autonation), they may be able to purchase your Honda through their dealer on a trade for another brand they sell.

No third parties can buy your lease.

10

If a honda dealer buys it, what fees am I looking at or is it simply just “Buyout Price minus RV = My equity cheque?”

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Your equity should be close to whatever they offer for it - (buyout + $350 disposition)

Rv isn’t involved

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12

Isn’t disposition only involved if vehicle is being returned at lease end?

13

Thanks. My mistake. Meant “Their offered price minus buyout = cheque”. So disposition is the only fee? Shouldn’t be any processing, documentation or whatever fee? Thank you.

14

Honda charges you disposition unless you buy out the vehicle.

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15

Even then, if you are forced to flip the title into your name first, there’s no way to make it in the 10-day window.

So just expect to eat the sales tax on the RV.

16

There are third parties who will purchase with a lessor released title. We have plenty of reports of Californians who purchased and flipped without incurring sales tax, but you have to have your act together and make the transaction a priority.

17

Yea I kind of got shafted since Carvana won’t accept the lessor released title.

In hindsight maybe I should have seen if someone else’s offer was close enough. But already started the process to flip the title.

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18

When I’ve gotten quotes recently, it’s only from the companies that accept LRTs (GMTV and FMW that I know of).

19

The carvana offer was just so much higher than the others, I stopped looking for updated values from them.

But probably a wash if I could have avoided the sales tax though.

20

Just an update.

Shopped around from local dealers.
The best offer so far is from the Honda dealership,
which offered $29,430 no sales tax, and no disposition fee after dealer buyout, my cheque will come out $11,998. That’s $1.1k equity after 3 years of use, can’t believe it, what a time to sell.

GMTV offered $31.7k-33k but I have to front the money and buy it out myself, get the title transferred to my name, and pay the sales tax which is about 1.4k.

GMTV will be $800+ higher when all said and done but is that worth all the work and inconvenience, and by the time I sorted everything out, at least 4 weeks of work, the offer may be different?

I have 6 days to accept the offer. Leaning strongly towards it. Tried to have them split the difference from GMTV but the dealership said they’re maxed out. Hoping they call back with a stronger offer. But if not, I think it’s good enough?

Also just FYI for readers, called hondafinancial this morning and confirmed that the payoff amount on the website includes the NV sales tax which is $1.4k, dealership presented the same equal number for their buyout less the 1.4k.