I currently leasing a 2016 CR-V EX ( 36mts /12K year) with 32.5k miles and maturity date 01/12/19, so I am going to be upside down in a couple months. Currently I have 8 payments left $263/mo, the payoff is $19769.92
I understand that getting out of it will cost me, therefore I am trying to figure out the best way to minimize my loss besides having to buy out the vehicle at the maturity date.
I believe that if I keep going as is until the maturity date, the excess mileage plus the wear and tear cost will be equivalent to what I would pay now to trade/roll into a new lease. Just need to find the best point in time to do it. One option I was thinking would be driving it until it hits the 36K marks and return it to Honda paying the remaining months, avoiding this way the excess mileage plus wear and tear fees.
Based on my current driving the CR-V will be with 47K by the maturity date or $1700 excess mileage plus a set of tires plus wear and tear. I think I will be around $2K to $2.5k negative so wouldn’t I be in the same cost by negotiating this money (or less if possible) on a new 15K year lease?
I appreciate the feedback.
Take it to carmax, etc. and get an estimate for what it’s worth today. Is $19.8k the buyout now or the buyout at end of lease. It’s a Honda, so may have some equity.
Honda will forgive up to a certain amount if you buy/lease from them again
If you are happy with the car, why not buy it at lease end? It should last a long, long time.
An extra $1700 is only $47/month over the 36 months, I’d just keep driving it and pay the mileage at the end. You could also go to Carmax at the end and get an appraisal and see if you can do any better. You could also wait until you hit the miles and try working a deal on a new lease where they cut you check back for the remaining payments on the CRV. Worst case scenario you just keep driving it. The excess wear and tear only comes into play if you trash it, and that doesn’t matter how many miles you drive. If you take decent care of your vehicle you shouldn’t have any issues other than tires.
If you are looking for another Honda you might be better off waiting. I think it’s 3 or 4 months left when they offer pull ahead. Combine that with any mileage forgiveness you get for re-upping and waiving the disposition fee, and you’re in decent shape. I managed to wriggle out of a similar situation on a Honda thanks to a lot of GM incentives and a credit card Earnings bonus, plus a big chunk of dealer cash at the end of the month to help bury it all. I ended up at 100/mo more than the Honda, but that was moving up to a 3 row and bumping up to 15k miles vs 12k on the Honda. Car was about 14k more than the MSRP on the CRV I had too. As a point of reference my CRV was dropped off at a Honda dealer who ended up keeping it and listing it for 19k+ certified CPO. So you might be able to get a decent offer on a year newer EX vs my 2015 LX.
Yup, and you can always look for used tires for purposes of lease return.
If you don’t mind me asking how much did you pay at sign up to get that payment on crv? When pull ahead does come up, who knows what hondas leasing program would be like given the craziness right now with HFS lease numbers. Have you checked on numbers on the RDX in your area?
- your payments are a little over $2k
- you keep the car, on top of that $2k payments you are calculating $1700 + used tires $250.
Maybe look in to the outgoing 2018 RDX base trim with 15k miles? Again you know your situation better but maybe try to gwt numbers who knows, it may work out. If not, like others said the options are there.