Ending a Lease Early

HondaCrazeSi

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Hey Civic Community,

I could use some advice about ending a lease to get into a '17 Si. I am currently leasing a 2015 Fit Ex and the lease ends in January 2018. This is the first time I have ever leased a car as I normally purchase. But anyways, my circumstances changed after 1 year into the lease and now I am projected to go over my miles by time I turn it back in (approx. 3k miles left). I have already started discussions on a car however the dealership wants to roll a bunch of negative equity over.

What I want to know is there any possibility that Honda Financial would "eat" the negative equity if I choose to use them again to finance a Si. I know it wouldn't be the best interest rate, but I can refinance immediately with my credit union. Suggestions are welcomed and I can give more details if necessary.

I use to own a '07 FG2 and I really "want" to get back into a Si, but not at the expense of making an bad financial decision.
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Is the negative equity due to turning it in early and still having remaining payments? Or due to the trade value being less than what is currently owed on the vehicle? A lot of people don't know that a lease can be traded in the same way a financed vehicle can and it's usually a better option than trying to eat the negative of the payments.

As for Honda eating the negative, I don't think you have a cold chance in heck of that happening. The only time they may forgive payments is if you are close to lease end and want to lease again with them.
 
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HondaCrazeSi

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Is the negative equity due to turning it in early and still having remaining payments? Or due to the trade value being less than what is currently owed on the vehicle? A lot of people don't know that a lease can be traded in the same way a financed vehicle can and it's usually a better option than trying to eat the negative of the payments.

As for Honda eating the negative, I don't think you have a cold chance in heck of that happening. The only time they may forgive payments is if you are close to lease end and want to lease again with them.

The negative equity is due to trade value (high mileage). I was confused because the first sales proposal had the Si at MSRP and then the dealership tacked on $3500 in negative equity. I pretty much said "take a hike". He came back and said they could do a lease buyout for $1800 however I may still be on the hook for any wear and tear items once the vehicle is assessed. I know customer loyalty is a thing of the past, but I figured Honda Financial might consider paying off the next six months because I'd be borrowing more to finance a vehicle.

Another option would be to do a clean deal and buy a Si without trading the Fit, just park it to keep the miles off it and turn it back in in January. I'd prefer not to have a second car payment for a few months but I could do it.
 

d1zguy

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The negative equity is due to trade value (high mileage). I was confused because the first sales proposal had the Si at MSRP and then the dealership tacked on $3500 in negative equity. I pretty much said "take a hike". He came back and said they could do a lease buyout for $1800 however I may still be on the hook for any wear and tear items once the vehicle is assessed. I know customer loyalty is a thing of the past, but I figured Honda Financial might consider paying off the next six months because I'd be borrowing more to finance a vehicle.

Another option would be to do a clean deal and buy a Si without trading the Fit, just park it to keep the miles off it and turn it back in in January. I'd prefer not to have a second car payment for a few months but I could do it.

What's your car worth now compared to what you owe or the buyout option?
 

Shankmeyster

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You have the dealer buyout the lease then eat whatever negative there is and you're done with that and move on. That's what I'm going to have to do, but I have a bit of savings to pay off the negative right away.
 


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HondaCrazeSi

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What's your car worth now compared to what you owe or the buyout option?
I owe $12.5k according to 10 day payoff, however they want to give never $9k and roll $3.5k over on a trade deal. They said the buyout would be $1.8k and I'm still liable for wear and tear cost (tires, etc)
 
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HondaCrazeSi

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You have the dealer buyout the lease then eat whatever negative there is and you're done with that and move on. That's what I'm going to have to do, but I have a bit of savings to pay off the negative right away.
So they said buyout would be $1.8k plus any additional charges. If I go this route then im paying taxes on the car again along with interest on that amount. My payment is currently $171 and I have six months to go. That equals about $1.1k and add inthe disposition fee of $450 and it's puts me right under the $1.8k.

Does it make more sense to buy the Si without trading the Fit. Looks like I'm going to pay the same amount except I wouldn't have to pay taxes and interest on the $1.8k. Essentially I would just keep the vehicle the remainder of the lease, make smaller payments instead of a lump sum and still walk away. Thoughts?
 

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I don't know why you would be charged for any items after they buy it out. It's payed for and the lease company no longer owns it, the dealer does, so far as I know. That would be their problem not yours. Check your lease agreement. The only time I see myself being liable for wear and tear items is if I turned the car end at end of lease.
 

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I owe $12.5k according to 10 day payoff, however they want to give never $9k and roll $3.5k over on a trade deal. They said the buyout would be $1.8k and I'm still liable for wear and tear cost (tires, etc)
What's the KBB, NADA value on your car?
 
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HondaCrazeSi

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What's the KBB, NADA value on your car?
On KBB is has trade value at $9600 - 10,900. I did a used car search for the identical vehicle with similar miles in a 200 mile radius of my zip code and avg. selling price is $13k. Obviously dealer mark up
 


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Well you can't expect to get dealer retail. Trade-in value is as good as you will see and you'll be very lucky if they offer you a high number in that trade range.
 

d1zguy

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On KBB is has trade value at $9600 - 10,900. I did a used car search for the identical vehicle with similar miles in a 200 mile radius of my zip code and avg. selling price is $13k. Obviously dealer mark up
Any private sales? how much are those going for? May be worth getting the new car and selling this one in the market yourself and limit 1k max loss
 

Shankmeyster

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You know how hard it is to get a private party to agree to buyout your lease when you can't even afford to?
 
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HondaCrazeSi

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UPDATE: I am the owner of a 2017 Civic Si Sedan. I went to a different dealership to get a oil change on the Fit and walked out with a Si. I appreciate everyone's advice/tips as I was able to get out of the fit with only $1000 negative equity rolled into the price of the new vehicle, but they discounted the car so it all balanced out! I'll post a new thread in the Si forum with pics, so stay tuned....
 

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UPDATE: I am the owner of a 2017 Civic Si Sedan. I went to a different dealership to get a oil change on the Fit and walked out with a Si. I appreciate everyone's advice/tips as I was able to get out of the fit with only $1000 negative equity rolled into the price of the new vehicle, but they discounted the car so it all balanced out! I'll post a new thread in the Si forum with pics, so stay tuned....
Glad to hear it worked out for you. Enjoy!
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