My wife has a 2019 Honda CRV EX-L with 7,500 miles and 7 payments left on 3-year lease ($337 payments). We bought the lease for $28,000 and similar mileage/year cars on CarMax going for $33,000. My wife wants to buy or lease an Infiniti, Lexus, or Acura next. What is best way to maximize liquidation or end of lease with Honda with the positive equity?
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I work for a Honda dealership as a salesman and best thing to do is just sell the vehicle to a Honda dealership. Call a few and see which one will give you most for your vehicle.
How does this work – do I buy the car first with the Honda buyout price and then resell?
Wow, did i just read the best thing to do is to sell it to a honda dealership???
You know that is just a straight out lie, right?
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I’d first take a gander at your next car pricing wise while collecting bids for your current car from a variety of sources including a honda dealer.
The general saying is you hope to come out on top with the old CRV when selling, but expect to reinvest that money by paying more for the new vehicle.
If its an active Honda lease, selling it to a honda dealership may be the best option
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I brought my lease to 2 dealerships last year to get a buyout price and both were $5,000++++ less than what i was able to get at Carvana, carmax and enterprise!!!
You’re comparing different dealers, from a year ago, to 3rd party dealers that cant even buy the lease
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Do you really think dealerships even today are going to give more than a carvana or carmax or even match?
It cant be sold to a 3rd party but they can buy it out and sell it to a 3rd party all day long.
The dealership doesn’t need to match carvana/carmax/etc to come out money ahead by going with the dealership.
Yes you did read that right good job. If you understood the market and what dealers are willing to pay you’d realize it’s a good idea. We’re matching Carmax and Carvana offers because we want inventory, we’re not selling these to other dealers. Do you happen to work in the automotive sales industry?
did a KBB insta cash offer and it was $30,050. A couple of Honda dealers called and want to inspect vehicle. Payout is $23,XXX.
Agreed - never EVER sell the car back to the dealer!
OP: buy it out thru your bank.
I got many calls and emails when my Honda was nearing lease end and the dealer was salivating at getting their hands on the '18 Honda:
- When I asked about trading it in for another new Honda, I got a quote that was DOUBLE my old lease.
- Then when I asked about buying it out, the dealer quoted extra $5,000 add on warranty and 5.9% rate for 60 months.
I then asked my local CU about the buyout and they gladly offered me 2.24% for 60 months and did not add on any extra stuff (just registration transfer fee & sales tax).
The CU said my '18 Honda was worth $28K compared to the buyout price of $14K from Honda Financial.
They even offered a larger loan to take advantage of the higher value as cash out.
So in the end, it was obvious the dealer was trying to make a huge profit.
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This is bad advice in the current market.
The only proper answer to this is to compare the buyout offers from dealers with the buyout offers from non-honda dealers, after factoring in all the additional cost needed to sell to a non-honda dealer, including the risk of price dropping between now and when you can sell.
As a data point, I sold my honda passport lease a few months back. In december, carvana was offering a high enough price vs the local honda dealers that after buying the lease out, paying taxes, etc, I would net about $2500 more to buy it and sell it
So I did. It took 2 months before I had the title in hand and was able to sell. During that time, all the offers dropped $3k. It ended up costing me about $500 to buy it out and sell it vs if i had just sold it to a honda dealer from the get go.
As another data point, in October, I sold my audi e-tron. The local audi dealer gave me a price high enough that it was more cost effective to sell to them than it would have been to buy it myself and then sell to carvana/carmax/etc
Blanket statements don’t work in this situation. You have to compare the numbers for both options.
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Except
Not sure what the advantage is of a larger loan amount than is necessary in this situation.
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I understand in your experience the dealer was bad, but that is a single data point in a singular locale on a singular deal. The OP needs to conduct their own due diligence at every avenue and then decide.
The CU playing no games was nice, right up until they were offering you to take a larger loan against your current car. Thats a little iffy. Yes its nice to leverage debt and all for those who know what they’re doing, but I hope they don’t offer that to everyone like free candy; all fun and games till shit hits the fan.
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There - done. If multiple people offer you 30.5k, then ask for more, play them off each other to get the most value for your trade - don’t slug it out be quick and decisive about it.
As a former broker I strongly disagree, and a private citizen (least to this forum), I don’t recommend this either.
Matching carmax and carvana prices??? So right now im going to get an offer from both carmax and carvana, then i will call up 3 dealerships asking if they can match that buyout. I will post the information here as soon as i gather up everything. Lets see what the outcome is!
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If that’s want you want to do with your free time big guy go for for it lol.