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Car Buying Advice - End of lease options Honda CRV 2015 LX-AWD

nutznboltsnutznbolts Posts: 7
edited April 2017 in Honda
Hi

I had leased a 2015 Honda CR-V LX-AWD for 24 months/12k in June 2015. My lease is coming to an end next month.

The residual value for my vehicle per the contract was $19,400.

The current market value per KBB is 15,500-16,500.

I have a moderate sized dent (not very obvious till you walk right next to the car) on my door (Door slammed against a wall while opening). This is my first time leasing a car. I was not sure if the residual value can be negotiated with Honda. I have only driven 11K miles with my SUV so far and is in good condition otherwise. I am open to both keeping the SUV or turning back in but prefer to keep it if possible.

1) Is the residual value negotiable ?
2) If I keep the car, would it be possible to negotiate the current rates for financing the residual with them ? What would be the current rates for someone with excellent credit?
3) I am moving to a bigger city where car is not a must. If I turn my car back to the dealer, how much will they charge for a 10 cm dent ? Should I try to fix the dent in a body shop before turning it in ?

I would appreciate any advice on this topic.

Thank you

Comments

  • kyfdxkyfdx Posts: 120,318

    Hi

    I had leased a 2015 Honda CR-V LX-AWD for 24 months/12k in June 2015. My lease is coming to an end next month.

    The residual value for my vehicle per the contract was $19,400.

    The current market value per KBB is 15,500-16,500.

    I have a moderate sized dent (not very obvious till you walk right next to the car) on my door (Door slammed against a wall while opening). This is my first time leasing a car. I was not sure if the residual value can be negotiated with Honda. I have only driven 11K miles with my SUV so far and is in good condition otherwise. I am open to both keeping the SUV or turning back in but prefer to keep it if possible.

    1) Is the residual value negotiable ?
    2) If I keep the car, would it be possible to negotiate the current rates for financing the residual with them ? What would be the current rates for someone with excellent credit?
    3) I am moving to a bigger city where car is not a must. If I turn my car back to the dealer, how much will they charge for a 10 cm dent ? Should I try to fix the dent in a body shop before turning it in ?

    I would appreciate any advice on this topic.

    Thank you

    1) Honda won't negotiate the residual
    2) I don't have their rates. Surprisingly, leasing banks don't seem all that excited about financing their lease buyouts. Not sure why. If you decide to buy it, best to line up your own financing. Of course, if the car is worth much less than the residual, you shouldn't buy it.
    3) When I leased Hondas, they had a $500/$1500 forgiveness for wear and tear ($500 per item, $1500 max). Check your lease contract. If not, get an estimate from a body shop, so you'll know what your liability might be.

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • carpersocarperso Posts: 148
    kyfdx said:

    Hi

    I had leased a 2015 Honda CR-V LX-AWD for 24 months/12k in June 2015. My lease is coming to an end next month.

    The residual value for my vehicle per the contract was $19,400.

    The current market value per KBB is 15,500-16,500.

    I have a moderate sized dent (not very obvious till you walk right next to the car) on my door (Door slammed against a wall while opening). This is my first time leasing a car. I was not sure if the residual value can be negotiated with Honda. I have only driven 11K miles with my SUV so far and is in good condition otherwise. I am open to both keeping the SUV or turning back in but prefer to keep it if possible.

    1) Is the residual value negotiable ?
    2) If I keep the car, would it be possible to negotiate the current rates for financing the residual with them ? What would be the current rates for someone with excellent credit?
    3) I am moving to a bigger city where car is not a must. If I turn my car back to the dealer, how much will they charge for a 10 cm dent ? Should I try to fix the dent in a body shop before turning it in ?

    I would appreciate any advice on this topic.

    Thank you

    1) Honda won't negotiate the residual
    2) I don't have their rates. Surprisingly, leasing banks don't seem all that excited about financing their lease buyouts. Not sure why. If you decide to buy it, best to line up your own financing. Of course, if the car is worth much less than the residual, you shouldn't buy it.
    3) When I leased Hondas, they had a $500/$1500 forgiveness for wear and tear ($500 per item, $1500 max). Check your lease contract. If not, get an estimate from a body shop, so you'll know what your liability might be.
    Does any Leasing company negotiate the residual?

    Especially when the market value is significantly below than the residual?
  • isellhondasisellhondas Issaquah WashingtonPosts: 20,225
    This is a good example of a car company (Honda in this case) mortgaging tomorrow for today's sale!

    Other car companies can be MUCH worse at this but even Honda blows it once in awhile and this seems to be the case here IF the numbers posted are accurate.

    In order to move a large quality of cars in a short time an especially attractive lease with low monthly payments is advertised. To keep those payments attractive, guess what? They post a residual that is artificially high. They hope the market will be strong three years down the road and that the cars will be worth the residual. Sometimes this doesn't happen. The lessors walk away and the cars sell at auction for thousands of dollars less.

    HOWEVER....Hondas have crazy high resale values which often "blow away" what ever numbers the books say the cars are worth. In this case, if the lessor thinks they can buy a 11,000 miles 2015 CRV for 19,0000 I would be VERY surprised. It's probably a very good deal for that price!

    At the auctions the Honda buyers routinely pay well over "book" in order to be the successful bidder on nice used Hondas that are in high demand.

    Of course, residuals are not negotiable! You knew what it was when you signed up and you agreed to that. By the same token, Honda couldn't raise it if they suddenly realized they had set it way too low...this has happened too!
  • MichaellMichaell ColoradoPosts: 111,014
    carperso said:

    kyfdx said:

    Hi

    I had leased a 2015 Honda CR-V LX-AWD for 24 months/12k in June 2015. My lease is coming to an end next month.

    The residual value for my vehicle per the contract was $19,400.

    The current market value per KBB is 15,500-16,500.

    I have a moderate sized dent (not very obvious till you walk right next to the car) on my door (Door slammed against a wall while opening). This is my first time leasing a car. I was not sure if the residual value can be negotiated with Honda. I have only driven 11K miles with my SUV so far and is in good condition otherwise. I am open to both keeping the SUV or turning back in but prefer to keep it if possible.

    1) Is the residual value negotiable ?
    2) If I keep the car, would it be possible to negotiate the current rates for financing the residual with them ? What would be the current rates for someone with excellent credit?
    3) I am moving to a bigger city where car is not a must. If I turn my car back to the dealer, how much will they charge for a 10 cm dent ? Should I try to fix the dent in a body shop before turning it in ?

    I would appreciate any advice on this topic.

    Thank you

    1) Honda won't negotiate the residual
    2) I don't have their rates. Surprisingly, leasing banks don't seem all that excited about financing their lease buyouts. Not sure why. If you decide to buy it, best to line up your own financing. Of course, if the car is worth much less than the residual, you shouldn't buy it.
    3) When I leased Hondas, they had a $500/$1500 forgiveness for wear and tear ($500 per item, $1500 max). Check your lease contract. If not, get an estimate from a body shop, so you'll know what your liability might be.
    Does any Leasing company negotiate the residual?

    Especially when the market value is significantly below than the residual?
    Residual values used to be negotiable, but no longer.

    Banks have insurance policies to make them whole if the market value is less than the residual value from the lease contract.

    Did you get a good deal? Be sure to come back and let us know! Post a pic of your new purchase or lease!


    MODERATOR

    2016 VW Jetta 1.4T SE / 2015 Subaru Outback 3.6R / 2014 MINI Countryman S ALL4

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