CR-V lease ending in May...decisions...decisions....please help!!

capaxone

I leased my Honda CRV back in 2012 and it will end this May for 3 years. My initial down payment was 2500 dollars. According to the contract, if I decide to keep the car and pay it at the end of contract, it will be 16,700 dollars. I got into a car accident last year and it was a minor collision with total fix cost around 2000 (not my fault). Here are my questions:

1. If I decide to keep the car after contract ends, does my initial down payment will be counted toward the balance of 16,700?
2. Should I keep the car ? Total milage only 26,000 miles so far.

Michaell

capaxone said:

Took the car to dealer today and found out if I want to buy this car I have to pay 16,700 (residual) + 1995 ( recon safety fee) + 1800 ( tax). Omg...the guy obviously wanted me to lease a brand new one. So 21k for a 2012 crv......what should I do now?

Take the car to another dealer. The residual and sales tax cannot be avoided, but I'm not certain that the reconditioning fee is legitimate.

isellhondas

No, your initial down payment will not be deducted from your residual.

It was used to pay cap cost reduction and fees.

The choice is yours. If you like the car and have taken good care of it, you'll be able to buy it for wholesale.

Or you can stay on that leasing treadmill and enjoy a new car.

stever

Or you can give it back and buy a new car.

Or you can buy it and immediately trade it in for hopefully more than $16,700 for another CR-V or something entirely different.

A 2012 LX with those miles would retail for 19,000 at a dealer. Trade-in is a bit less than the $16.7 buyout.

New 2015s are going for $26k and up.

I'd be inclined to buy it and drive it another two years (or more). You'd save $10k over a new one and wouldn't "lose" all those miles you paid for and didn't use.

isellhondas

If they buy it, they will have to pay sales tax on the residual which may negate and profit they are hoping for.

Oh, and that accident will show up on a Car Fax and this scares away buyers and lowers value.

By turning it in and walking away, the dirty Car Fax won't be a problem.

A 2000.00 accident is nothing given today's prices but it still shows up as "ACCIDENT REPORTED" and
people will assume the worst.

kyfdx

A 26K mile CR-V sounds like a great deal for $16,700. At your rate of mileage, you could drive it for 6 or 7 more years...

Of course, even with buying a used car, you are going to have "payment shock" after leasing the last one.. A 48 month loan on $16K @ 2.9% is $353/mo.

If you look at the long-term, buying that CR-V should be cheaper than anything else, and I assume it's been a good car?

capaxone

Took the car to dealer today and found out if I want to buy this car I have to pay 16,700 (residual) + 1995 ( recon safety fee) + 1800 ( tax). Omg...the guy obviously wanted me to lease a brand new one. So 21k for a 2012 crv......what should I do now?