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Comments
I just can't see a significant financial benefit on the deal you're proposing. Maybe a little bit, but you'll be paying a higher interest rate on the purchase of a used car.
I still say you complete the lease on the Ody. Turn it in. Try to limit the mileage (as you say, you won't be driving much this winter). Start all over again when the lease is up. This time, on a purchase.
No wonder I stay away from leases. Misleading and BS IMHO.
bill
on this 08 EX-L with Rear DVD
I can put 10K more into this Odyssey and give it back and start all over again, financing a car for at least 48 months, or I can buy a nice 12K car, pay it off in nearly the same amount of time, and be done until my monthly expenditures drop way down (kids out of daycare).
I agree with GG. I think it sounds good in theory not to have a lease hanging over your head, and you can buy a used car and make lower payments....but the reality is you lose money on the trade because you will be paying out additional tax money, you are imagining that you can get a used car which will be more reliable than your current car.
IMHO you are better off with GGs plan....ride out the rest of the lease, then decide. If you are over on mileage and the car runs well you might be better off buying your Ody....at least you will know it was looked after.
2017 MB E400 , 2015 MB GLK350, 2014 MB C250
*with $3,500 cash or trade, and $500 loyalty, $500 college grad, $500 active military credits.
Gotta love advertising. As long as it gets people into the dealerships.
As for the leases, as has been said before people are monthly payment shoppers so how great do some of those advertised leases sound? Also, most customers don't realize how bad it is to put a lot of money down on a lease.
2025 Ram 1500 Laramie 4x4 / 2023 Mercedes EQE 350 4Matic / 2022 Icon I6L Golf Cart
I just don't think it is as simple as it sounds. You can pay now, or you can pay more later.
My opinion is that it doesn't cost that much more to drive a new car than a used one, unless you are extremely lucky with the used car you buy.
That $12k used car will probably have 50k to 80k miles on it, so the best half of it's life will be over. It will be reaching the point of needing many repairs. You might save a few thousand dollars a year driving the used car....or you could end up with one repair after the other.
If you do go used, the best chance is a one or two year old used car....most of the depreciation has come off, but the best part of the cars life hasn't been used up.
If you can get out of your lease for $433 then you should probably do that for your own peace of mind. I don't think you stated that before. I'd be surprised if the dealer will actually do that....doesn't sound profitable enough for them. :confuse:
2017 MB E400 , 2015 MB GLK350, 2014 MB C250
I'm guessing the dealer will only do this if you buy something else from them? Perhaps a used car worth maybe $8-9K, but selling it to you for $12K?
Somebody, somewhere has to make some money. It doesn't sound like they are doing it by taking back your Ody with just a $433 out of pocket on your end, without some other deal that nets them a profit.
Even if you do find the elusive "cream puff" of a used car (where were you several months ago when I was selling an absolute cream puff Merc GM?), it will take 48 months to get your payment to that $300/mo range). You note that you're putting lots of miles on your vehicle. That means you're going to be faced with some higher maintenance costs, on top of your payment.
I'm trying to see how this is beneficial on your end. I just can't.
I have just read an article (in the Globe and Mail) which states that car sales have slumped in September. This is due to the cash for clunkers program having pulled sales from September into August.
Is there any traffic? Sales? How are things going?
Just curious....
I agree that he should proably keep the Ody but there is another possibility. Honda/Honda Finance may have some funny thing going with lease forgiveness if someone buys/leases a new, hell maybe even CPO honda, and has a honda lease they are getting out of.
Earlier this week I had someone who called us because his Acura dealer called him saying he could get him out of his MDX lease 11 months early and into a new MDX for the same lease payment and only XXX amount out of pocket. He called us cause he doesn't want a MDX but wants an XC90. I looked everything over and told him no way can I do that. Your are at least 4,000 in the hole on your lease, not to mention you have 1,000-1,500 worth of body work and the MDX is a funny looking color, and the XC90 leases higher.
I told him there must be some kind of owner loyalty or lease forgiveness program to make it work or there is something the other dealer isn't telling you cause the math doesn't work straight out on just the merits of your trade.
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
Ahhh, now I understand. When you calculate from the actual selling price it doesn't seem quite so bad. Still, a $26,000 car losing $13,040 in value in 3 years is scary.
I guess, since I never get rid of a car until it's begging to die I never really looked at how fast they lose value. :lemon:
2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible
Assuming this isn't tied to you buying a car from them... If it is, better make darn sure you have a good deal on that end, as well...
Echoing the other comment.... Sometimes Honda Finance will sell a leased car to a dealer for less than the payoff... especially, if they think they are looking at a loss in the near future...
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buying used. I would by lying to say I wasn't concerned with the possibility of
maintenance costs. the residual on my Ody is around 17k and change, probably will have close to 50K on it. out of warranty as well. I am in the same boat either way really. $2400 out of mileage may be cheaper than potential repairs.
I'm glad that you can get out of the lease for $433, but it is difficult for me to wrap my brain around that picture. With the miles and all, I can't imagine how the dealer is going to take your problem off your hands and make money on it. If you decide to turn in the keys, I would be sure to get a full release of my obligation in writing---and read it carefully.
As for buying used, I have done it several times. I buy a one year old car with no more than 10k miles on it. This gives you two years of factory warranty and about 5k in saved mileage. You can get a pretty good deal and have a fairly new car.
If the $433 deal doesn't work out for you, I would listen to graphicguy and driver. They always give good advice, and they are honest guys. Good luck to you. It's been a hard lesson for you to learn, but we have all been there at some point in our lives.
Richard
my convertible isn't coming out of the garage until next year, but i still plenty of them out ther with the top down.
my fusion has a moonroof. so i still get some sunshine on my head if i need it.
Another nice one today.
It gets really nice when you hit a decent day one the leaves start falling. Having them fall right into the car is pretty neat. I could really like fall if it didn't mean winter was next....
One afternoon I saw a carrier with two cars on board. One was a nothing special older domestic but the second was a newer Volvo with the entire side smashed in. It looked as if someone had dragged the driver's side along a wall and tore up the sheet metal for the whole length of the car.
Do they Auction off such cars?
The second shipment was two near identical pick-ups. On the back of one was written "CLUNKER". I didn't see that carrier pull into Manheim but it makes you wonder what may end up on some buy here pay here lot.
2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible
I believe all the clunker cars have to have the engines destroyed and then go to scrap lots.
2025 Ram 1500 Laramie 4x4 / 2023 Mercedes EQE 350 4Matic / 2022 Icon I6L Golf Cart
Just a quick gander at trade values, and just using Edmunds (which can be high at times), trade is worth ~$23,500. Sell price would be right around $26K.
So, the dealer is overallowing on your Ody on the purchase side. And, after shining it up, doing an inspection, not making much (if any) money when they resell it.
Doesn't make much sense to me, but it they're willing and you want to do it, go ahead.
Was there a large down payment (cap cost reduction) you made? You'll lose that, too.
I don't lease for the same reasons you say you won't, again. I turn cars over too quickly (haven't recently, though). Breaking a lease is a costly endeavor.
Hi Tony
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
It requires that the engine and transmission get scrapped. The rest of the vehicle is fair game. That's a whole lot of parts. On the right vehicle a clunker could be very profitable.
Seems that other customers such as BMW (the company mentioned in the article) got the latest technology first, because suppliers would withold it from GM and Chrysler due to their slow payments.
Although I owned many GMs in the past I haven't considered one lately because I didn't want to buy a car put together with parts from the lowest bidders. But, this is another reason that confirms my original thoughts.
It also confirms my own thoughts on business. I always pay suppliers on time to build a solid trusting relationship. Most MBAs or business people tell me it is crazy, you should use other peoples money for as long as possible. But, I am offered supplies first and become a preferred customer.......because I actually pay on time.
2017 MB E400 , 2015 MB GLK350, 2014 MB C250
Most parts on most machines are made by the lowest bidder. The auto industry as a whole is notorious for putting pressure on all suppliers.
I remember back in the day at flight school at Pensacola we spent time on ejection seat training. At the end of the module, the instructor made sure we knew that the seat in any aircraft was made by the lowest bidder. That is when I knew I would never jump out of a perfectly good airplane.
Read the rule at http://www.cars.gov/files/official-information/rule.pdf
CTRL+F for auction and see how many times salvage auction is reported.
Even Mannheim is mentioned a couple of times.
From page 22-23
With these points in mind, the agency consulted with representatives of the
salvage auction industry. The agency believes it is practicable to provide for the
participation of salvage auctions in the transfer of trade-in vehicles to disposal facilities
under the CARS program, in order to broaden the avenues of disposal available to
dealers. Therefore, salvage auctions may receive a CARS trade-in vehicle, provided that,
as a condition of participation, these entities agree to limit their auction sales of CARS
23
trade-in vehicles to the disposal facilities described above that appear on the agency’s list.
We believe that including listed disposal facilities, and requiring salvage auctions to sell
at auction the scrap trade-in vehicles only to approved disposal facilities strikes the
appropriate balance between program and environmental accountability, on the one hand,
and geographic distribution and dealer access, on the other.
You must walk a lot because I don't know any company that buys from a higher bidder (unless its a favor for a friend).
Hi Tony
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
Richard
Some companies have certain standards, and they might not compromise just to get the lowest price possible. Not buying from the lowest bidder is not the same as only buying from the highest bidder. It might mean getting the best possible part made to the best possible standards....at that particular price. That's the main thing....what standards are you willing to compromise to get the price really cheap....and a company with no R&D money and is losing money isn't going to have very high of standards.
2017 MB E400 , 2015 MB GLK350, 2014 MB C250
2013 LX 570 2016 LS 460
A good point, but that is the American way....make a buck however you can.
I got into trouble with 80% of the audience when I suggested your hard earned tax dollars should go mostly to the C4C purchaser since that was the intention of the plan (bring cost down so more cars could sell), but most think it is fair that the dealer take a giant share of your tax dollars right off the top.
Do you really care if the dealer or the scrap yard makes money off your tax dollars :confuse: At least you are spreading it around a little more.
2017 MB E400 , 2015 MB GLK350, 2014 MB C250
Don't ever get on the Space Shuttle then. :P
2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible
Damn, how did this happen? We actually agree on something. :P
When I was in the Navy (enlisted man) I was an Airdale and was lucky enough to be on a flight crew for about 2 years. Flew so much as a crew member of a transport squadron I was actually tired of it before I was discharged after serving 3 years. Anyway, I and anyone that was part of a flight crew had the opportunity to sign up for classes then jump out of a plane the following weekend. I was about to sign up once but I couldn’t get the words of one of my plane commanders out of my head:
“Unless you’re a paratrooper and that’s why you signed up, why would anyone want to jump out of a plane that still works? I hope I don’t have anyone on my crew that thinks like that. I’m trying like hell to make sure it stays up.” :confuse:
I never did take those classes.
jmonroe
'15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl
And we know what happened to a few of those rockets. And, don't worry, I won't get on one of them and that is one reason.
2017 MB E400 , 2015 MB GLK350, 2014 MB C250
I might try it on my 98th birthday, not too much to lose by then. :shades:
2017 MB E400 , 2015 MB GLK350, 2014 MB C250
Actually no company tries to get the best possible standards. What companies do is set minimal standards for what they want and usually go to the supplier who can deliver the needed amount at the needed time for the least amount of money.
In other words the lowest bidder.
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
But I'll be tyou that 99 times out of a 100, they'll go with the lowest bidder that meets their requirements.
Snake explained it much better in the previous post.
Well, just because your mind stopped working why would you want to give up your legs. But if you were in a chair, it WOULD make it easier on the "pusher".
jmonroe
'15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl
The car manufacturer sets the specifications and those specifications will be met whether it's the lowest bidder or the highest bidder. A higher bidder will not provide any more than the specs. Why would you go with anyone but the lowest bidder? If there's a complaint, it should be directed at those who set the specifications.
tidester, host
SUVs and Smart Shopper
What we end up doing instead is being insanely precise about what we want. This is a bear when you are bidding out a contract for janitorial services. The only way to enforce things is to have absolutely everything in the contract.
Richard
Ok, I guess you and the Tidester are politically correct on this point, and I do concede (not seen here too frequently).
What I should have said was "I didn't want to buy a car made from the cheapest possible parts". Unfortunately, almost all companies will buy from suppliers with the lowest bid..........some companies do have a higher standard for the actual part being made.
Trying to save money by making the cheapest possible part could be very false economy, as when you get exploding Pintos.
2017 MB E400 , 2015 MB GLK350, 2014 MB C250
If you go out this weekend for a steak at Outback, Texas Roadhouse, etc., ask the manager if the beef they use is from the highest bidder in Argentina or Australia or wherever? Same for the lettuce from the salads. Only Michelle would go out for the highest price on arugulas. :P
The lowest bidder excuse is a red herring.
2014 Malibu 2LT, 2015 Cruze 2LT,
In Canada we have spent a lot of money on stimulus packages too, though no C4C thank goodness. Our Conservative Party was forced into spending money by a Liberal party. It is nice to see that both countries seem to be making a recovery.......I think we would have had similar results though with no extra spending.
I am sorry your money went to car dealers and junk dealers though.
2017 MB E400 , 2015 MB GLK350, 2014 MB C250
2013 LX 570 2016 LS 460
Seriously please don't bring this in here.
2013 LX 570 2016 LS 460
Richard