Lease end coming up on my 17 EX-T coupe. Buyout is $13,600.

Hollywoo0220

Customer Service oriented (most of the time) :-)
First Name
RJ
Joined
Feb 10, 2019
Threads
5
Messages
744
Reaction score
524
Location
WA
Vehicle(s)
Dihatsu Charade, BMW, Various Hondas, Focus ST, and VW GTI
Country flag
No Charles. Any addt'l you put down on a Lease only affects the payment. The Residual is what the automaker guarantees the vehicle to be at the end of the term. Thus, for a Closed End lease you can return the vehicle or refinance it - you just can't SELL it, as you would need to purchase the vehicle yourself first and getting the title before doing that.
I have rarely in the past 7yrs seen any POSITIVE equity in a leased vehicle when returning it to an appropriate dealership.
I will caveat to that by saying that, any specific dealer may offer a more enticing Offer on another vehicle if you leased upon turning in. Now, that would be the same as a "somewhat" equity situation....:)
Sponsored

 

06XTOR

Member
Joined
Aug 23, 2019
Threads
0
Messages
41
Reaction score
32
Location
Denver
Vehicle(s)
2019 Civic Sport Sedan
Country flag
I just straight up purchased my ā€˜18 Touring sedan.
Always done that, but Iā€™ve always been a lifer who hangs on to his vehicles for a minimum of a decade.
Iā€™ve never leased, and canā€™t see the logic in it.
So, guys... enlighten me.
And not being a smart ass here either.
Why lease first and then buy out if when the lease is up?
It canā€™t be less money, can it?
Leasing is a complete ripoff. If there is any minor damage in any way, high mileage they take you to the cleaners. It's for people who don't do anything but go to work and the grocery store.
 

The Vyzitor

Senior Member
Joined
Oct 14, 2019
Threads
11
Messages
430
Reaction score
344
Location
California
Vehicle(s)
2019 Civic Sport FK7, 2010 VW GTI MKVI
Country flag
There isn't any "trade-in" value @charleswrivers, it's a lease; thus, it has a residual in the contract.
but a dealership can take the car as a trade in, buy out the residual, and give you cash over the top towards the car theyā€™re trying to sell you. Itā€™s exactly what I did with my 2016 LX lease.
About 2 months before the end of my lease I went to the dealer, and as a trade in, they took the leased car in trade and gave me $1500 towards whatever I wanted to buy.
 

xcivicx

Senior Member
Joined
Jan 14, 2016
Threads
69
Messages
933
Reaction score
490
Location
whycanogaparkofcourse.
Vehicle(s)
19 SI coupe in black
Country flag
the sale tax upon lease termination is what i turned into a si, just to delay the process. and so far the si is way better than the lx hatch. much more of a keeper. but in fact the hatch got me nothing, but the dealer working more with me. do it early.
 

Hollywoo0220

Customer Service oriented (most of the time) :-)
First Name
RJ
Joined
Feb 10, 2019
Threads
5
Messages
744
Reaction score
524
Location
WA
Vehicle(s)
Dihatsu Charade, BMW, Various Hondas, Focus ST, and VW GTI
Country flag
but a dealership can take the car as a trade in, buy out the residual, and give you cash over the top towards the car theyā€™re trying to sell you. Itā€™s exactly what I did with my 2016 LX lease.
About 2 months before the end of my lease I went to the dealer, and as a trade in, they took the leased car in trade and gave me $1500 towards whatever I wanted to buy.
Totally understand that point.
You could have obtained that $1500 either way. Whether you had a lease or not. Itā€™s all technique. You were happy about it and thatā€™s all that mattered.
For example:
Trade value is $15,000
New car is $??,???
So, multiply the Trade Value by 10% (tax/title/doc) and there is your $1500 without the dealer losing $.01.
Smoke and Mirrors...
 


charleswrivers

Senior Member
First Name
Charles
Joined
Nov 3, 2017
Threads
43
Messages
3,736
Reaction score
4,468
Location
Kingsland, GA
Vehicle(s)
'14 Odyssey, '94 300zx, 2001 F-150
Vehicle Showcase
1
Country flag
A disclaimer: I know little to nothing about leasing firsthand. It always seemed like kind of a bad deal unless you like paying a little less and swapping cars every 3 years. Itā€™s something Iā€™ve never done.

From the OP, it sounded like there was some benefit to doing the buyout and flipping it on a trade vice turning it in and walking away with nothing.
 

BoxsterSteve

still plays with cars...
First Name
Steve
Joined
Aug 7, 2018
Threads
5
Messages
591
Reaction score
415
Location
Baden, ON
Vehicle(s)
2000 Porsche Boxster S, 2018 Civic Touring sedan
Vehicle Showcase
1
Country flag
Leasing is a complete ripoff. If there is any minor damage in any way, high mileage they take you to the cleaners. It's for people who don't do anything but go to work and the grocery store.
Thatā€™s my general understanding of leasing.
If itā€™s not a company vehicle that can be written off, itā€™s only a good deal for the selling dealer.
Good friend of mine leased an Accord several years back. She figured sheā€™d have 3 years to save up money to make a large down payment on her next purchase when the lease was up.
What with life being expensive, that never happened.
Upon returning the leased car, she was told sheā€™d have to pay $3k for unacceptable ā€œwear & tearā€œ; a full front end repaint for stone chip damage and new tires and brakes just to give the car back and walk away.
Iā€™m no lease return specialist, but the car looked like what youā€™d expect a 3 year old car would look like.
And the car was nowhere near the mileage limit specified in the lease either.
The dealer graciously said theyā€™d take the car back as-is if she leased another new car.
Sandpaper central.
She ended up having to lease another car again and continue the apparent never ending cycle.
 

jgreen16

Senior Member
Joined
Jan 30, 2016
Threads
3
Messages
510
Reaction score
345
Location
Cleveland, OH
Vehicle(s)
2020 Civic EX Hatch, 1990 Chevrolet C1500
Vehicle Showcase
1
Country flag
Leasing is a complete ripoff. If there is any minor damage in any way, high mileage they take you to the cleaners. It's for people who don't do anything but go to work and the grocery store.
Well, leasing certainly isn't for everyone, but isn't necessarily a ripoff either. If you tend to put a lot of miles on a vehicle, then leasing probably isn't the best idea.

As far as minor damage, there are standards for what is considered minor, and that varies by manufacturer. Best to look into those details before entering into a lease. Honda allows a $500 excess wear and tear allowance, which can be doubled if you lease or purchase another Honda/Acura. An inspection is done on the vehicle prior to lease end, typically within the last 60 days. Any damage found can be repaired by the lessee prior to turn in, so you can go out for competitive quotes if necessary.

I have leased ten vehicles since 2009, with seven of them already haven been returned. I have paid absolutely no money for damages so far, and I drove all of them for more than just going to work and the grocery store.
 

Fredline

Senior Member
First Name
Fred
Joined
Oct 11, 2017
Threads
7
Messages
88
Reaction score
44
Location
Seattle, WA
Vehicle(s)
2009 Mazda Miata MX-5
Country flag
I just straight up purchased my ā€˜18 Touring sedan.
Always done that, but Iā€™ve always been a lifer who hangs on to his vehicles for a minimum of a decade.
Iā€™ve never leased, and canā€™t see the logic in it.
So, guys... enlighten me.
And not being a smart ass here either.
Why lease first and then buy out if when the lease is up?
It canā€™t be less money, can it?
Well in my case I'd always bought my cars used, never had a brand new one in 36 years. I'd also never leased before and liked the low payment ($249) and the option of turning it in for a new car and starting a new lease or buying the car outright...or just walk away. I'd really like to get an Si next time, if I can find one in the color I want. Either way it's nice to have options. Besides buying a car is always the worst investment you can make (unless your buying & flipping an under valued classic) but just about everyone needs one at some point.
 

The Vyzitor

Senior Member
Joined
Oct 14, 2019
Threads
11
Messages
430
Reaction score
344
Location
California
Vehicle(s)
2019 Civic Sport FK7, 2010 VW GTI MKVI
Country flag
Totally understand that point.
You could have obtained that $1500 either way. Whether you had a lease or not. Itā€™s all technique. You were happy about it and thatā€™s all that mattered.
For example:
Trade value is $15,000
New car is $??,???
So, multiply the Trade Value by 10% (tax/title/doc) and there is your $1500 without the dealer losing $.01.
Smoke and Mirrors...
Truth. I did negotiate the price of the car and the trade in separately... but I get what you're saying, it's all a game and they know how to play it well. I was happy with both the trade in I got, and the price I paid for the 2019 so i still consider it a win/win.

Thatā€™s my general understanding of leasing.
If itā€™s not a company vehicle that can be written off, itā€™s only a good deal for the selling dealer.
Good friend of mine leased an Accord several years back. She figured sheā€™d have 3 years to save up money to make a large down payment on her next purchase when the lease was up.
What with life being expensive, that never happened.
Upon returning the leased car, she was told sheā€™d have to pay $3k for unacceptable ā€œwear & tearā€œ; a full front end repaint for stone chip damage and new tires and brakes just to give the car back and walk away.
Iā€™m no lease return specialist, but the car looked like what youā€™d expect a 3 year old car would look like.
And the car was nowhere near the mileage limit specified in the lease either.
The dealer graciously said theyā€™d take the car back as-is if she leased another new car.
Sandpaper central.
She ended up having to lease another car again and continue the apparent never ending cycle.
I'd say there are a ton of variables, not least of which is the dealership's honesty... but it all depends on your intended use of the car. Leasing is basically a long term rental, so you are expected to take better care of the car versus if you're buying it. A simple investment in something like a clear bra and properly maintaining the tires and brakes would have avoided all of that headache.

Well, leasing certainly isn't for everyone, but isn't necessarily a ripoff either. If you tend to put a lot of miles on a vehicle, then leasing probably isn't the best idea.

As far as minor damage, there are standards for what is considered minor, and that varies by manufacturer. Best to look into those details before entering into a lease. Honda allows a $500 excess wear and tear allowance, which can be doubled if you lease or purchase another Honda/Acura. An inspection is done on the vehicle prior to lease end, typically within the last 60 days. Any damage found can be repaired by the lessee prior to turn in, so you can go out for competitive quotes if necessary.

I have leased ten vehicles since 2009, with seven of them already haven been returned. I have paid absolutely no money for damages so far, and I drove all of them for more than just going to work and the grocery store.
Truth. I have only leased one car, but it was a great experience. My daily commute is just under 20 miles, so we used the car for any errands around town and took the car on a few road trips while still being well within my annual mileage limitations. The car was serviced at the dealership on schedule. I maintained a decent coat of wax on the paint and swapped the carpeted mats out for all weather within the first few weeks... and just put the like-new carpet mats back in when it was time to trade. The car looked practically brand new when i traded it in and not a single question was asked about wear and tear. Though I did get out the car as a trade-in a few months premature, rather than a lease end turn in...
 


JO3L

Senior Member
First Name
Joel
Joined
Apr 17, 2018
Threads
6
Messages
387
Reaction score
379
Location
Southern California
Vehicle(s)
FC1E5, NA6CE
Country flag
Seeking advice from others. My lease is up in November. I want to keep my Si since I thoroughly enjoy the car and it is still under 20k miles out of the 36k allotted. The car looks 100% stock from the outside, but it does have some suspension mods, stage 1 intake, shifter parts and a tune. I really don't want to take everything off only to put it back on. Does this matter on a leased car that I plan on buying back? Getting mixed opinions from friends.
 

Donkeyhotay123

Senior Member
Joined
Jun 23, 2019
Threads
10
Messages
264
Reaction score
134
Location
HB
Vehicle(s)
2019 Civic Hatch
Country flag
Iā€™ve never leased, and canā€™t see the logic in it.
So, guys... enlighten me.
Makes sense if you're low mileage or building credit. Back when i was much younger, my commute was like 10mi or less and i biked everywhere else. So made sense to lease and get a nicer car. Had two leases before saving enough, plonkin down, and buying a used SUV.
Sponsored

 


 


Top