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What is the adjusted cap cost?
.00210 and 60% for Sport 2.0 36/12
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
15% discount
selling price is 26,520
not sure yet about cap cost...
I was offered $1000 cash rebate by non-Honda banks, just FYI,
2017 Accord Sport CVT Mod Steel Metallic
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
You can trade your car in if you're buying another one, but wouldn't CarMax pay you the trade in value (ie, what they think the car is worth) rather than the agreed upon residual value?
Not sure if you can outright sell your car to CarMax, but if you've done it multiple times, then who am I to argue?
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2017 Accord Sport CVT Mod Steel Metallic
You can sell your car to any dealer. However, Honda Finance may have a different price for the dealer than your purchase option price (possibly higher). It's their car, and though you have a contracted option price, they aren't obligated to sell it for that price to anyone else.
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@richman1975 - I think you’ll find selling your leased vehicle to a dealer is no more complicated than selling a conventionally financed vehicle to a dealer but a quick call to Honda Finance will probably clear up any confusion.
2017 Accord Sport CVT Mod Steel Metallic
Another item to note.. trading in a lease before the term is up, might be different than trading in one that has already had the last payment made.
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2017 Accord Sport CVT Mod Steel Metallic
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“You don't own the car, to sell to CarMax (or anyone, for that matter). You first have to buy it from Honda Finance - at the agreed upon residual value - before you can do anything with it.”
I appreciate all the assistance I have received from this forum over the many years I have leased cars. Just concluded a lease on a 2018 Accord with your help.
I would just like to add my comment that there are times, several in my memory, in which I have bought the car at lease end from the finance entity at a price less than the residual value. This usually happens when the contractual residual value exceeds the actual value of the car. Two great examples of this were when I bought my 1998 Mazda Millenia at lease end in 2001. Residual was around $17k and I bought it from Mazda finance for around $12k. The car had been discontinued so the value had plummeted, but I loved the car and it stayed in my family for another ten years. The other example was my 1984 Audi 5000 which was plagued with the bogus “unintended acceleration” issue. I can’t remember the numbers now, but I bought it out at lease end for considerably under residual. Great car. I have also been turned down flat by car finance entities in comparable situations where they simply refused my offer which was in excess of the wholesale value of the car, but less than the residual. I never understood their reluctance.
An additional comment on lease end buy-outs and this may be unique to Ohio and their sales tax rules. I have had some cars, Honda in particular, where the value at lease end was considerably higher than the residual, but I had no use for the car, so I sold it on Craigslist and had Honda finance title the car in my buyer’s name when I paid the the residual and pocketed the difference I received from the buyer. When I tried this once on a lease for a Porsche 911 that was held by a bank, rather than a car manufacturer, I had to title the car first in my name, and pay sales tax, then into the buyer’s name, who again had to pay sales tax. The bank said they could nota requirement title it into the buyer’s name directly because they, the bank, did not have a car dealer’s license. Again, this may be peculiar to Ohio.
In any event, this is one of the reasons I like leasing. The lease end buy-out is a option, not a requirement, and can lead to some very favorable situations.
Thanks again for all your asistance.
I would just like to add my comment that there are times, several in my memory, in which I have bought the car at lease end from the finance entity at a price less than the residual value. This usually happens when the contractual residual value exceeds the actual value of the car. Two great examples of this were when I bought my 1998 Mazda Millenia at lease end in 2001. Residual was around $17k and I bought it from Mazda finance for around $12k. The car had been discontinued so the value had plummeted, but I loved the car and it stayed in my family for another ten years. The other example was my 1984 Audi 5000 which was plagued with the bogus “unintended acceleration” issue. I can’t remember the numbers now, but I bought it out at lease end for considerably under residual. Great car. I have also been turned down flat by car finance entities in comparable situations where they simply refused my offer which was in excess of the wholesale value of the car, but less than the residual. I never understood their reluctance.
An additional comment on lease end buy-outs and this may be unique to Ohio and their sales tax rules. I have had some cars, Honda in particular, where the value at lease end was considerably higher than the residual, but I had no use for the car, so I sold it on Craigslist and had Honda finance title the car in my buyer’s name when I paid the the residual and pocketed the difference I received from the buyer. When I tried this once on a lease for a Porsche 911 that was held by a bank, rather than a car manufacturer, I had to title the car first in my name, and pay sales tax, then into the buyer’s name, who again had to pay sales tax. The bank said they could nota requirement title it into the buyer’s name directly because they, the bank, did not have a car dealer’s license. Again, this may be peculiar to Ohio.
In any event, this is one of the reasons I like leasing. The lease end buy-out is a option, not a requirement, and can lead to some very favorable situations.
Thanks again for all your asistance.
When leasing was new-ish, those kinds of situations were more common.
Now, the banks have insurance policies to make them whole if the market value is less than the residual value from the lease contract, so it's harder, if not impossible, to negotiate the residual buy out amount.
There are advantages to leasing, so long as you understand the pros and cons.
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
We don't track pricing - there is a fairly active Accord Prices Paid thread here at Edmunds you can check.
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I’m in UT in zip 84092. Spent a while looking at different cars, decided on Accord touring 2.0t. My first time doing a lease and took some apparently bad advice from a friend to just focus on getting MSRP down to a “good price” from TrueCar and getting a residual in the high 50%s, then follow a lease calculator at 4.5% APR and try to hit that.
Ended up signing this deal:
MSRP 36379
Agreed price 34179
~$1000 in registration, doc fees, etc
residual 20546
$0 down ($1000 downpayment covered by dealer)
36 mo/12k
$556/month payment incl taxes and all fees
can someone help me understand how my lease payment ended up hundreds over a lot of the deals I’m seeing here? Spent hours negotiating and got most fees thrown out, got them to pay my down payment, etc. they had started at $650/month so I thought I was getting a steal getting $3500 in discounts/credits and payment down to $556! Then I found this forum AFTER! Heh... bummed to have burned that money (or agreed to watch it burn from here out?) but hoping I can learn from you all!
thanks!
Edit: Actually, with those numbers and no money up front, I calculate the lease payment is about right with 6.5% sales tax included.
2017 Accord Sport CVT Mod Steel Metallic
Heres a shot of the numbers at the end, after I elected to add a $15/mo service contract.
looking at those, can someone tell me which things I got screwed on? [facepalm]
Thanks for the help, btw! Would be glad to find out these numbers add up- I really liked the dealership and salesmen I worked with, so I’d love to not feel duped, if that’s not the case. Haha.
The service contract and the mx should be cancelled immediately as they are both unnecessary.
Btw, it's not the worst deal i've seen on here so just ENJOY that 2.0T Touring with all the goodies.
Next time you will be more prepared...GL
The maintenance contract is only $270. If that includes your service for the term of the lease, that's not terrible, and probably not worth worrying about. The $795 for wear/tear insurance is really not needed, unless you just plan on trashing your car. The $2500 discount from MSRP isn't too bad either, on this model.
I'd really like to see a good snapshot of that top document, though.
1) The payment calculations are correct
2) You picked the most expensive Accord, with the worst residual. That's not a mistake, just the most expensive model of a car that doesn't have a very good lease program, right now.
3) Maybe, I could pick out $1400-$1500 of garbage/extras on this deal, but that would still only take you down to $530/mo. It's a popular car with no incentives and a crappy lease program. Your friend didn't tell you how to watch out for vehicles that you probably shouldn't lease, at all.
4) On the plus side, it's a very nice car.
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Thanks to the two two of you, I also found out the maintenance and wear/tear coverage are both 3rd party and fully refundable- while it won’t lower my payment, going to get that wear/tear cash back in a lump sum this week. That helps take some sting out! Keeping maintenance- as you said, 9 synthetic oil changes for $270 is a fair price.
Oh and the $1640 is just 1000 down paid by the dealer (I paid $0 down), $68 tax on that (not sure if they rolled that in or covered it), and $571 paid by me as my first month advance. So nothing sketchy there, I think.
Lesson learned! Next time I’ll watch my timing
It says some lease agreements prohibit sales as I’m talking about but it seems like jbakker7 has accomplished exactly what I’m looking to do. Thanks all for your responses. I’m going to call Honda Finance just to double check.
1. Trading in your car before lease end - yes, your leased car has a trade value, and a buyout value, can can be traded in like any other vehicle. You may have positive or negative equity in the car.
2. Trading in your car after the final lease payment is made. As noted, some finance companies will only allow you to buy the car for the residual value. If you try to trade it in, a different buyout value may be used.
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There are two different situations here:
1. Trading in your car before lease end - yes, your leased car has a trade value, and a buyout value, can can be traded in like any other vehicle. You may have positive or negative equity in the car.
2. Trading in your car after the final lease payment is made. As noted, some finance companies will only allow you to buy the car for the residual value. If you try to trade it in, a different buyout value may be used.
Is the buyout value not the residual value at lease end?
For you, it will be the same. But, if you trade it in, after all payments have been made, it's the bank's car and they can put a market value on it, if they wish, instead of giving the residual price to the dealer.
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Got it now.. Thanks for the insight. Hopefully I can get some equity out of it.
The only advice I will give you is to take your time and research pricing on any car you want to purchase/lease in the future. Supply and demand can affect pricing. Not sure how many Honda dealers are within a 50 - 100 mile radius of your residence, but getting quotes from multiple dealers is the best way to get a good deal.
Enjoy the Accord. Congrats.
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Also do they have any incentives? This is for 36/12. Thank you.
Thanks!
Thank you
tax rate? dmv fees?
shoot for 10% off msrp + 1000 flex cash
34200 is the most i would pay...GL
No incentives
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No 10K allowance
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