Positive Equity...should I sell my lease to the dealer.....

asenest

Hello, I just was thinking about something this morning and wanted to run it by some other people to see if it makes sense.

I currently lease a 2015 Accord Sport, I am 9 months in and I have some great positive equity in the car to sell it private party.

Here are the vehicle details

Miles; 9300
Lease term, 24mo @ 12k/year
Payment; $240 w/tax/month
Payoff; 19,200
Will be paying my 10th payment next week.

So, my wife and I just had our first baby, so she will be out of work until the beginning of March and we also have an Infiniti Q50 that we lease, so if i did this i would just drive that car for at least a few months.

I would be saving almost $1000 over the next few months
-December Payment $240
-January payment $240
-February Payment $240
-February Registration $226
-Insurance over 3 months ~$150

I did $0 down and 0 first months payment as well so there is no money lost there....

I know I could sell it private party and make a little money, but wasn't sure how exactly the title transfer/fees and vehicle sales tax would go?? Not sure if anyone has any insight on that (in California)

Private Party value is $21,200

Thank you for any help or tips anyone has

Mr_Shiftright

Is that number the *current* pay off or the residual value stated in the lease?

You could always go to CARMAX and get an appraisal. In many cases, they can buy the car, pay it off and hand you your equity if there is any. Keep in mind though that some leasing companies do not allow this. Check your lease agreement.

From Edmunds re Private Party Sale of a Leased Car:

"After finding a buyer, get him to mail a check for the buyout amount to the leasing company. Once you receive the title (the leasing company will only send it to the person leasing the car), sign it to release your interest in the vehicle and give the title to the buyer. The buyer can then register the car and pay sales tax at that time. Be careful here, however. If the buyer waits longer than 10 days, the state might try to charge you both sales tax, which would wipe out your profit.

A way to prevent this, according to the Auto Club of Southern California, is to pay the sales tax and DMV fees as soon as possible and then return to conclude the deal with the title in hand. This transaction is called a "lease buyout transfer." Contact your state's DMV for more details."

asenest

Current pay off I believe I am reading it correctly

Maturity Date: 2/2/2017
Payoff Amount: $19220.53
Good Through: 11/29/2015

asenest

I would really prefer taking it to a Honda dealer and having them take care of it (That seems like it would be the easiest way anyways) if they would purchase it and make me break even. I would love to MAKE some money but it's more about the $1000+ I would be saving over the next few months if that makes sense

Mr_Shiftright

Well OK then, try Honda and CARMAX and compare the two. Where did you get the Private Party value from ?

asenest

KBB

stever

I get $20,203 when I appraise it here, but I'd didn't know the color or zip code. I assumed it's an automatic. True Market Value.

From our FAQ - While other guides (such as KBB or NADA) tend to base their vehicle pricing on average list prices at dealerships, Edmunds bases its vehicle pricing on actual sales data of similarly-equipped vehicles in the same region.

asenest

Yes, I do know how to use KBB. 
Private party excellent condition in my zip is 21,153

http://www.kbb.com/honda/accord/2015/sport-sedan-4d/?vehicleid=402149&intent=trade-in-sell&mileage=9300&category=sedan&options=6038832|true|6038832|false|6038829|true|6038701|true|6532038|true&condition=excellent&pricetype=private-party

Michaell

Not to be a Debbie Downer, but the dealer will first tell you that "books don't buy cars, dealerships do" - just before they offer you a lowball offer to take the car off your hands.

Head over to the "Real World Trade in Values" discussion here at Edmunds - we've got a guy with access to the auction numbers who can give you a better sense of the trade value.

Remember, there are still some 2015's on the lot that can be bought new for not much more than the trade value you've quoted. Dealer will have to buy your car at the right price so they can sell it at a profit. If I'm in the market for a 2015 Accord Sport, do I want one with 0 miles on it or one with almost 10K on it -- for the same price?

Will you be back in the market come March?

asenest

Yes absolutely understand that KBB isn't going to guarantee anything or have anything to do with the actual quote a dealer gives you. It's a game, just like leasing or buying a car. 

I I will be in the market in March, either to lease or buy. 

asenest

Dealer bought the car 

stever

Cool, how did the numbers pan out?

(and congrats on the new kiddo btw).

isellhondas

I'm trying to figure how you could possibly had positive equity in a leased car after nine months and not putting any money down when you leased it? It's not low miles either.

This makes zero sense but it sounds like it worked out for you!

asenest

I have no idea. I am sitting at the dealer now. It may have to do with location (N California) or the stock at the dealer (only have 2 used accords right now). 

If I remember correctly the dealer I purchased from threw in an incentive on the purchase price when I bought it earlier this year, making the vehicle cost right around 21,000-21,500 (I'll look in my paperwork) which allowed for the deal

This worked so well I might do it again to avoid lease-end fees and registration fees 

asenest

Adjusted cap cost was 21,279.71

carboy21

Some cars are so in demand as CPO that the dealer is ready to get you out of the lease as soon as possible , provided you lease another one from them, it happened with my wife's 2010 Subaru Forester. They offered me a deal within 18 months on a 42 month lease

hondaretailer

asenest said:

Private Party value is $21,200

Thank you for any help or tips anyone has

Take a look at what brand new, zero mile Sports are selling for. Take a look at the 26 used Sports for sale within 50 miles of LAX. Do you really think you could get $21,200.00 for your car?

isellhondas

I know how Hondas hold their value but this still makes no sense.

I used to watch people buy Certified used Hondas and pay nearly as much as a brand new one.

It's all perception I suppose.

asenest

hondaretailer said:

asenest said:

Private Party value is $21,200

Thank you for any help or tips anyone has

Take a look at what brand new, zero mile Sports are selling for. Take a look at the 26 used Sports for sale within 50 miles of LAX. Do you really think you could get $21,200.00 for your car?

The thing is i don't need to look at cars within 50 miles of San Francisco (Northern, not southern california) Because the dealer already purchased it.

You have to remember this is Northern Ca, people are crazy, and some people are so afraid of purchasing a new vehicle they will pay almost as much for one with 10,000 miles on it.

@isellhondas Certified hondas are crazy expensive, I worked at a dealer for 5 years and I saw so many certified hondas get sold for within thousands of dollars of new for a couple year old car.

I think it was just right place right time scenario, I am super picky about keeping my cars in great condition and it showed. Dealership had 0 new 2015s left on the lot, and the only used Accords they had were 2 2013 V6's.

If you think about the market for this type of car, its an easy sell for them, Pearl white, tinted windows, nice looking wheels. This has first car for a teenager written all over it, or someone going to College.

At the end of the day the dealer will make money on it, whether its $1000 or $3000