Recapturing Equity Process - disposition fee, paperwork?

Ask the Hackrs
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1

I have a Honda lease i may wish to exit about 6 months early. I’ve driven less than planned, and the car is immaculate. So perhaps there is some equity or at least the chance to exit cleanly.

Lets say the buyout is 18K and the car is worth 19K to Carmax/Carvana, etc. If I sell to them, do they just cut me a check for 1000 and I am done, or do I have to

  1. pay Honda financial the disposition fee?
  2. file paperwork of some sort with Honda Financial?
  3. get some sort of pre approval from Honda Financial?
2

You do not have to file any paperwork with HFS. a third party is buying the car and thus the lease is ending. Honda is weird with third parties purchasing cars and IIRC, charges the buyout+ disposition fee to them. Get the quote from HFS

1 Like
3

Thanks, since they still charge the disposition fee if I sell to carmax or the like, I guess I am paying it either way. Directly or indirectly.

4

I’m pretty sure the payout includes the disposition fee (which covers lease-end inspection, a dealer taking the car back and storage, shipping it all over Hell’s creation to sell/auction it for $1 more, etc).

said another way: you ask for the third-party buyout (vs you buying out) and all you pay is that number. If you complete lease and turn in without leasing/buying a Honda, you get billed for and pay the disposition fee.

Call Honda and ask to be certain.

5

We sold our mdx to carvana 4 months early. You just get the payoff price from your hfs account and give that number to carvana, CarMax, etc… There were no extra fees.

Then they cut a check directly to hfs. If there’s equity the buyer will pay you with a check.