I decided to buy my Honda Pilot in July at lease end instead or return to Honda.
And I’m trying to figure out what would be the best to refinance the buyout?
Should I stay with Honda financial?
Are Honda financial’s rates better that your other options?
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So I called Honda dealer and they said they’ll offer a 4% interest rate. So I decided to check my local credit union and they are offering 2.89 for 48 months.
The buyout price today is $28,495.
Would I need to add the state tax of 6% on top of that ? To get a exact loan?
Does your buyout include tax, if not you’d owe sales tax as KY is a monthly sales tax state.
You can include in loan the tax if within the banks loan to value ratio. If you try harder and are willing for the further aggravation of cross shopping I think you can probably scrape another .1% off that interest rate.
For Public knowledge which credit union are you using!
DCU is still doing 65 months at 2.24%.
Here’s 2.89% for 48 and 2.24% for 65.
Note the difference in the payment and the total interest paid.
This is a case where I just might be a payment shopper. 
This rate requires autopay from a DCU checking account. This is the only reason I have a DCU checking account, and it’s the only action the account ever sees.
My honda lease buyout included tad, but it can be state dependent. Call honda financial and ask.
Would this option be worth it?on a $28420 loan
Option 2: 48 month term, 2.89%, $686 monthly payment including Depreciation protection
- Depreciation Protection a.k.a. “Reverse Gap” - if you were to total your vehicle (or it is stolen), your insurance company is going to not only pay off your vehicle but you will also receive a check from them because of the great equity you have in your vehicle. Then you will also receive a check for up to $10k for the depreciation protection. This means you would walk away with positive equity in another vehicle or even possibly a vehicle paid for.
You are already entitled to the balance between the insurance proceeds of the totaled car and the loan balance, ie the equity. Because you own the car.