Buying out my leased 17 Si Sedan

JO3L

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Hi all,

Just wanted to share my recent experience buying out my leased Civic Si. First a bit of history on how I got the car. Flashback to 2017, just had my firstborn at the beginning of the year. Wifey tells me I finally need to get a new car that is modern and safe, no more 90s JDM legends. Test drove my friends Civic Sport hatch and was amazed at the performance for a stock car. Now its almost the end of 2017, dealers in my area are having year end lease deals to make way for the 2018 models. $2000 down and $220 a month for 3 year lease on a Si sedan (originally wanted the hatch for versatility, but it was only $10 less per month). Did not even have to think twice at this price. Dealer drops the car off to my work one morning, I sign all the papers and get handed the keys. Yes I got my Si without even test driving. I really did not need to after driving the hatchback and hearing all the praise of the Si from automotive journalists.

Now nearly 3 years later I have grown attached to my Si, not just because it is my first new car, but also because I think you can't really find another vehicle around this price point that offers the same level of performance, fuel economy, reliability and aftermarket support. My buyout amount was $14,500. Called up a local credit union to apply for an auto loan. Immediately got denied because I answered some questions incorrectly. Definitely take your time and double check your work on those applications. After talking with them again and revising some of the answers I was approved. Now it was time to submit all the required paperwork. Had to call Honda to get a faxed copy of the buyout amount and email to the credit union along with my odometer disclosure, registration, ID, and insurance. There were a bunch of DMV forms I printed out and attempt to fill out, but to my surprise the credit union was providing those and all I had to do was sign. A few days later the loan was funded for the buyout amount and the sales tax on the vehicle. The credit union mailed a check to Honda to obtain the title and starting in November I will be paying $340/month for next 4 years with 2.75% APR.


The KBB on my Si in its current condition is roughly around $20k so overall I think this was a sound financial decision and would highly recommend other lease Si owners to take the same path. Now that I don’t have to worry about returning the vehicle back to stock I can start doing some more serious modifications.:drive:
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I wonder how many would have still picked the sedan if the Si was available as a hatchback. Good decision with the buyout, new/used car pricing right now is nuts!
 

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Nice! It sounds like you got a good deal. My wife and I just bought out her lease for her 2017 Mazda CX-5 as well. We went with Logix Credit Union and it was easy. Just had to sign some docs fedex them over and boom done!

Enjoy your build now that your going to own it outright. The great thing about these civics is they hold their value. I would just keep all stock parts Incase you ever decide to sell you can covert your car back to stock and sell your aftermarket parts here.
 
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disgraced.fk8

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Curious about what questions you answered "incorrectly"... Would you mind elaborating? If not I understand there may be sensitive info etc. Just curious as I have done financing through Honda for my 2 car loans.
 
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JO3L

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@Memogiyi we think the same lol. my wife wanted the CX-5 but I talked her into the CX-9. couldnt be happier with the 2.5T and the extra space to seat 2 in the back.


@adc3132 I put that I pay the full mortgage on my house instead of half since my wife and I technically split bills 50/50. at that amount the credit union saw I practically had no disposable income leftover each month to pay towards an auto loan.
 


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@adc3132 I put that I pay the full mortgage on my house instead of half since my wife and I technically split bills 50/50. at that amount the credit union saw I practically had no disposable income leftover each month to pay towards an auto loan.
[/QUOTE]

Yes! Thank you! That's what I was looking for. Good info to know!

Also, I just got into real estate part time so I'm looking to learn everything about loans. I know a mortgage is different, but I would stand to argue at least one or two of the same principles apply and having some insight as to why a client may have been declined interests me!
 

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So all said and done your going to be 26xxx or so into the car
 
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JO3L

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So all said and done your going to be 26xxx or so into the car
Yes roughly that amount you are right. I think MSRP was just under $24k when I leased it.

When you do a lease buy out you pay less up front and more at the end.
 

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@adc3132I just got into real estate part time so I'm looking to learn everything about loans. I know a mortgage is different, but I would stand to argue at least one or two of the same principles apply and having some insight as to why a client may have been declined interests me!
DTI is a big one for RE loans.
 

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I am curious. The credit union bought out the car, why is your thought process that you are able to do "serious modifications" to it now and you still technically don't own it?
 


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Oh I'm well aware. I just got into my house last year and am super familiar with all the formulas and rules of thumb. Just interested what caused this hiccup, as every delay in real estate means the check coming later and later. Also, you generally spend time helping the buyer get financing so being able to avoid issues up front by learning what NOT to do should save some time over the course of my RE career!
 

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I am curious. The credit union bought out the car, why is your thought process that you are able to do "serious modifications" to it now and you still technically don't own it?
I would guess because the bank won't be offering to take it back or he won't have to 'return it' to anyone. If you lease a blue car and then try and return a green car when the lease is over I'm guessing the dealer won't be happy and that likely broke some rule in the contract. His credit union isn't going to care what he does to the car now since hopefully they'll never have to even see it.
 

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@Memogiyi we think the same lol. my wife wanted the CX-5 but I talked her into the CX-9. couldnt be happier with the 2.5T and the extra space to seat 2 in the back.
@Memogiyi we think the same lol. my wife wanted the CX-5 but I talked her into the CX-9. couldnt be happier with the 2.5T and the extra space to seat 2 in the back.


@adc3132 I put that I pay the full mortgage on my house instead of half since my wife and I technically split bills 50/50. at that amount the credit union saw I practically had no disposable income leftover each month to pay towards an auto loan.
good call on the CX-9! We regretted not going for the CX-9 ourselves since my daughters feet hit the front seats now that she’s a toddler. We’ve decided to make it work. If we do go for our 3rd child we may just trade it in and get the bigger suv. I love the look of the cx-5 though. And it handles really well for a crossover.
 
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JO3L

JO3L

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I would guess because the bank won't be offering to take it back or he won't have to 'return it' to anyone. If you lease a blue car and then try and return a green car when the lease is over I'm guessing the dealer won't be happy and that likely broke some rule in the contract. His credit union isn't going to care what he does to the car now since hopefully they'll never have to even see it.

Exactly! Everything I have done up to this point is easily reversible in the span or maybe half a day just in case I needed to go back to stock to turn the car back in. Now everything I do to the car I know won't necessarily increase the value, but if I were to sell I am sure I will find a buyer who appreciates the tasteful mods done since it would be the first things they would do to it anyways.
 


 


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