By accessing this website, you acknowledge that Edmunds and its third party business partners may use cookies, pixels, and similar technologies to collect information about you and your interactions with the website as described in our
Privacy Statement, and you agree that your use of the website is subject to our
Visitor Agreement.
Comments
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and share!
Edmunds Moderator
Holy Cow! Can you pls send some our way?
Seriously our *annual* rainfall is 19"! I can't imagine 20" in a few days.
Richard
Richard
Don't you know we're on the dreaded "Palmer Divide"? I saw on the news that we may get 6-12" of snow with the next front. "Western and southern suburbs" - great.
I'm so glad I've got the painters coming out next weekend to paint my house ...
:mad: :sick:
The local soccer park near my house had about 10' of water covering about 3 football fields wide and who knows how long. The goals were completely covered, playground gone...
I see sunlight poking through the clouds now. We are supposed to get more rain throughout the week, but I think the worst is over. Cleanup begins.
This is crushing our sales right now. So slow.
http://projects.ajc.com/photos/image/metro-atlanta-weekend-storms/1045/
it is still technically mine? my dad is freaking out over it. I do have a local buyer
willing to pay the same price, but I I wont have to pay sales tax if the dealer buys
the vehicle from honda. I need some help.
2001 Prelude Type SH, 2022 Highlander XLE AWD, 2025 Camry SE AWD, 2025 Integra
I'm also not familiar with KY tax laws - why would you pay sales tax when selling something - wouldn't the buyer pay that?
How much is the tax? If it's negligible, say the same amount it would cost you to drive your van to NC, then I would sell it locally and pay the tax, just to have the peace of mind.
first to honda, but this buyer was in such a hurry to come up here and get it. he would have gotten it the next day. as far as the tax goes, honda doesnt allow
3rd party lease buyouts. I buy it from HOnda, pay the sales tax on purchasing the van, or a usage tax since it is registered to my business. then my buyer has to pay the tax on the price when we transfer the title. absurd. the tax is going to be about $1600. since I am selling it locally, I am going to check with my dealer to see if they can flip it for me. I can pay their doc fees and take them to lunch.
For that matter, why even sell it to any other buyer? Is the lease up? If so, why bother with selling it to someone else. Just turn it back into the leasing company.
On strictly a business perspective, if you were using the Honda as a business vehicle, and you wrote it off as such, what was the term you used for the right off? You may be stuck with paying the IRS some coin if you dispose of it before the term is up, too (based on the terms you wrote it off).
I'd hold onto it, based on what you're telling us. I think we need a few more details.
in laymens terms, I have about 10K left to put into this lease only to give it back.
I would rather take that 10K and buy a car to own now, rather then start over down the road for 4-5 more years of payments. I am dumb when it comes to car buying.
I will say once this lease was up, i wouldnt lease again. I drive too many miles. I had planned on buying used.
i just dont want any more car payments.
Sorry to hear this, I suppose many of us have gone through these situations in life. I always think school would be more helpful if they explained how to make good decisions about money, might be more useful than trigonometry (do they still have that?)
I heard an ad on the radio the other day for a company called Lease Busters - they will buy up any lease (this is in Canada but I am sure if it is here it must be in the U.S.). If you do sell it privately, I am sure you will come out ahead, but if you really need to sell it might be worth a try.
You are taking a risk again though I think. You sound like you have thought this through quite well and are very logical in your thinking, but I don't know if buying a used car, and putting lots of miles on it will work out that well too. A one or two year old car will be the best buy, biggest depreciation hit and still lower miles. Personally, I think buying a less expensive new car with a long warranty is less risky...and if you own it you can sell it if you have to.
Good luck!
2017 MB E400 , 2015 MB GLK350, 2014 MB C250
Leasing companies can be off a bit on residual values. But, $10K is quite a bit....especially since it sounds like your Honda has some serious miles (as you point out, you're going to be way over on the mileage terms).
I'm still trying to wrap my arms around the paying taxes thing. You're buying it from the leasing company, so I understand that part. Then, the new buyer purchases it from you, but those taxes go to the gov't. Not to you.
$25.2 on a used Odyssey, with some hinky miles sounds like a lot (depending on the year). Why would someone do that? Is the local buyer a dealer, or an individual? How did they come up with a price of $25.2 as its worth?
Just a quick look at a new, '09 Ody, with leather, the buyer can get one for about $5K more, with no miles, and all the warranty. Even a used Ody, say an '07, with normal miles, can be had for around $25K-$26K.
I'm trying to figure out how you make this work without some substantial cash coming out of your pocket to dispose of it.
Don't know what the lease terms are, but even if the mileage penalty is .25/mile, you're looking at $2,500 out of pocket at lease end. Did you put a lot of money down on the lease (cap cost reduction)? If so, how much?
Ordinarily, any leasee is going to be upside down for the entire term of the lease. That's why I'm trying to figure out how you walk away from this one with 17 payments left.
I have $7717 worth of lease payments left, i can't remember what the residual is, somewhere around 18K or so, I was adding in my estimated mileage penalty to the 10K i stated above.
My payoff is actually $25433, I took an offer of 25.2 from the buyer. If I pay the sales tax and what I owe, I am out around $1800 out of pocket. Unless his bank wants to buy the van from HOnda, relieving me of the sales tax issue. then I am only out $233.
My van is an EX-L with RES. If he doesn't want to buy new, I got no problem with that. He can buy an extended warranty from Honda. as far as another car goes, I don't want to pay more than $300 per month.
If you have a residual amount of $18,000 (which was set at the time you signed your lease & Honda generally does not renegotiate this) + your remaining payments of $7,717 ... this would be your current payoff. If you choose to purchase this car, you need to pay sales tax on the total amount, in this case $25,717 or so. Keep in mind that you never actually "bought" this car when you signed the lease. Any taxes that were incorporated into your lease are "usage" taxes, not sales taxes.
If you turn the vehicle in to Honda with more miles than your lease agreement, you would normally be charged .10 - .20 cents per mile (depending on the lease agreement) as well as any damage charges and a disposition fee. Since you are purchasing the car, Honda doesn't care about excess mileage or damage so your payoff would just be the residual, remaining payments & tax/tag charges.
Now that you actually "Own" your vehicle, you can sell it, or trade it in toward the purchase of a new or pre-owned vehicle.
This is why you have to pay tax on a lease buyout.
Some states collect sales tax on the entire purchase price (even though it's a lease)... Illinois and Texas, for example...
Of course, the most desirable way... are the states that collect the tax each month, with the lease payment.... KY, CA, and a bunch of other ones..
scottinky.. If you trade your lease in to a dealer, then they should get a payoff from Honda Finance that doesn't include taxes... I doubt you can come close to breaking even, selling to a dealer, but at least you don't have to factor in the sales tax.
regards,
kyfdx
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and share!
Edmunds Moderator
Just when the lease was up the finance guy at the dealer called me for a meeting. I thought they were going to arrange for getting me into a new car.
The finance guy and sales manager were there with some papers they wanted me to sign. They said they sold the car to me at too low a price, it was calcualated by a new clerk at the time, and they wanted me to pay an additional $1600, or they wouldn't make any profit on the car.
I thought I got that car for a really good price, so that made me sure I got a good deal.
I said "I felt bad for them" (and even though I had tears in my eyes) but I wasn't interested in coming up with $1600 for the dealership.
I bought my next car somewhere else because I thought they would sure want to make it up on my next purchase.
2017 MB E400 , 2015 MB GLK350, 2014 MB C250
I'm supposed to instruct at Road Atlanta; maybe I should bring my Wrangler instead of my 318ti... :P
Mine: 1995 318ti Club Sport-2020 C43-1996 Speed Triple Challenge Cup Replica
Wife's: 2021 Sahara 4xe
Son's: 2018 330i xDrive
My dad and his business partner leased two Caprice Classics back in the late 70's. When the lease was up the partner returned his car and then received a phone call from the dealer @ 2 weeks later. They told him the car brought $1200 less than estimated and that he would have to make up the difference. He told them to show him the contract language that made him responsible and to produce all the supporting sales documentation. They never called back.
Mine: 1995 318ti Club Sport-2020 C43-1996 Speed Triple Challenge Cup Replica
Wife's: 2021 Sahara 4xe
Son's: 2018 330i xDrive
In reality that doesn't happen. Once a deal is done and delivered, nobody will look back when you come back to buy another vehicle.
2016 Audi A7 3.0T S Line, 2021 Subaru WRX
There's a delta of about $100 between your current payment and what you want your payment to be.
So, $100 x 19 more payments = $1,900. And your out of pocket right now on this sale is $1,800. Kind of a wash.
But, as you say, you would own a car at some point if you pull this deal off, and buy something else.
On the other hand, buying something else, even used, you're extending your payments past the 19 months you have left on your current lease (probably, at least an additional 36 months)..
I say, keep the Ody till the end of the lease. Then, start all over again, only this time on a purchase instead of a lease. To me, that makes the most sense.
Interesting, I will keep that in mind (though I think the dealer learned not to give cars away at cost any more) .
Leasing used to have some great advantages....these days I think it only works if you are leasing a car that doesn't depreciate much, and if you don't drive many miles.
I suppose that low monthly payment is hard for some people to turn down, but it could lead to problems like our friend here with the Odyssey.
2017 MB E400 , 2015 MB GLK350, 2014 MB C250
And we wonder why car dealers get such bad reputations.
Many are fine and I am sure honest (like the fine people on this post), but a few stories like that certainly lead to a lot of distrust. I really wonder whether these dealerships ever collect from any one in these situations. It's hard enough getting people to part with their money for a legitimate reason.
2017 MB E400 , 2015 MB GLK350, 2014 MB C250
Alot of the leases also have very low money factors that help drive the cost down. Actually, with the residuals in the toilet that is really the only way leasing makes any sense. Try and figure a lease at a non-subsidised MF and it will be sky high. Residual on three year leases used to be 55 - 58% now I am seeing mid 40s (even on Lexus) and on a Cadillac board i saw in the 30s! I was happy on my last lease in May to get a 49% and a MF that equated to 1.4 % interest.
2025 Ram 1500 Laramie 4x4 / 2023 Mercedes EQE 350 4Matic / 2022 Icon I6L Golf Cart
Bottom line, he's paying to relieve himself of the current lease, while extending the time he'll be paying his lower payments for a used car. Plus, he'll get to keep the $1,600 he'd have to pay to do the Ody deal right now.
To me, riding out the lease seems to be the best option.
Even the 2010 Volvos have residuals in the mid 40 percent range.
It just can't make any sense to lease those. I would think low intersest financing would work out much better.
2025 Ram 1500 Laramie 4x4 / 2023 Mercedes EQE 350 4Matic / 2022 Icon I6L Golf Cart
It just can't make any sense to lease those
I think that would make a used Saab a great buy in 3 years time!
2017 MB E400 , 2015 MB GLK350, 2014 MB C250
Ok, educate me here because I know very little about leasing. You're saying that a 3 year old Saab is only worth 30% of the original MSRP after 3 years? Didn't we just have a discussion on one of these boards that used car prices are skyrocketing due to short supply?
How can depreciation be so high? The worst I've ever heard of is the Kia Sedona being worth only 20% of MSRP after FIVE years. I'm confused. :confuse:
2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible
so rover, you didn't tell 'fez i bought the silver one? :P
so many times i have said to myself, if i hadn't just bought a car, or if i just had the extra cash....
Used car prices are going up....but the car companies got burned on risidual values especially for SUVs, so they are going to estimate on the lower end when predicting values 3 years from now. Keep in mind too, the economy hopefully will be back on track by then, and used cars won't be selling as well in 3 years.
2017 MB E400 , 2015 MB GLK350, 2014 MB C250
At this point nothing will happen until spring though I had the top down today.
now for less, isn't that the better option?
If i ride the lease out, i make 17 more payments, plus the penalty. then have to start over again making payments for at least 48 months depending on what I would buy.
or I can wait another year, then trade the van in on something. I wont be driving much during the winter time, so by next summer, i could trade down before the warranty runs out. how about that?
1. No one is actually leasing Saabs at all right now cause you can finance one for less over 60 months. With no one leasing the residuals are really a non-starter there will be no leased Saabs coming back with these too low 30-35% residuals.
2. I think the residuals for many cars right now are actually too low. A typical overreaction to the too high residuals of the past few years.
3. These are for residuals three years from now so the current market for used cars has little impact on it. The market for used cars in three years will probably be even tighter then it is now but I can't say that for sure.
4. On the flip side of all that supporting low residuals we are selling 2009 Saabs for 10,000 dollars or more off MSRP now. That is with all the money back from GM, all the markup from invoice, all the hold back plus thousands of dollars in loses just to keep these cars from becoming curtailed by the bank when they have their birthdays.
On a 36,000 MSRP car that is already a 72 percent residual before the car is even one month old. A 36 percent residual for three years on a 36,000 MSRP car is $12,960. That $12,960 is a 49% of $26,000 the actual selling price of the car. Now a 49% residual after three years and 45,000 miles sounds about right to me.