My Nissan Altima is worth nothing lol I got the 18 Accord 1.5 Touring for tax down and $430/month for 12k and 36 months. msrp 34690 with $1000 flex cash
BTW, what was the selling price of the car before the flex cash? I had a few questions about the $1000 flex cash:
1. What part of the country are you located? I'm in the north east. 2. Were you aware of the flex cash or did the dealer mention it to you as a lease incentive? 3. When I purchased my Accord 5 years ago, there was $500 flex cash (for financing through Honda).
I am cross shopping/comparing the Touring 2.0T against some luxury cars. Pricing on the Accord is not that great right now, given it is a new model. I am in no rush to buy, but I will probably make a decision in the fall when new models are released. The more I see the Accord on the road, the more I am leaning away from this new model. I am not a big fan of the exterior design. Finance rates are also not that great. Not seeing any 0.9% or 1.9% rates yet.
BTW, has anyone else gotten flex cash on a purchase/lease? Just curious.
I'm receiving $1000 flex cash on a Lease of an accord 1.5 touring. It is based on if the dealer has enough flex cash to hand out, and if they want to give it to you or not. It's up to them. I'm in NY. Flex cash is given to the dealer depending on how many deals they did the prior month.
Got you. Thanks for the info. I was able to find some additional information online about it. I also reached out to one dealer about it and they did mention the Flex cash.
BTW, how do you like the car and the features?
You're welcome! I actually don't have it yet lol Picking up the car this Friday (can't wait!) I was offered $1000 cash rebate by non-Honda banks, just FYI,
At the end of a Honda lease can I just take the car to Carmax or similar dealer and have them buy the car from me? Does Honda prohibit that? Anyone know?
At the end of a Honda lease can I just take the car to Carmax or similar dealer and have them buy the car from me? Does Honda prohibit that? Anyone know?
As long as the balance owed is paid in full, you can dispose of the vehicle in whatever way you like (provided no laws are broken in the process.)
2016 ES350 Lux/Atomic Silver 2017 Accord Sport CVT Mod Steel Metallic
At the end of a Honda lease can I just take the car to Carmax or similar dealer and have them buy the car from me? Does Honda prohibit that? Anyone know?
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.
My personal experience has been to sell my honda leases to Carmax. I’ve done it with my last 3 leases. They just pay the residual and you make up difference if there is any. Great way to off load, especially if you are over mileage or wear tear issues.
My personal experience has been to sell my honda leases to Carmax. I’ve done it with my last 3 leases. They just pay the residual and you make up difference if there is any. Great way to off load, especially if you are over mileage or wear tear issues.
Well, OK.
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?
They give you an appraised value for your car. I’ve had it sometimes where it is only $500 less than the remaining payments and residual and you make up the difference. It works great.
My personal experience has been to sell my honda leases to Carmax. I’ve done it with my last 3 leases. They just pay the residual and you make up difference if there is any. Great way to off load, especially if you are over mileage or wear tear issues.
Well, OK.
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?
He is correct Michaell- CarMax can buy your vehicle whether it’s a lease or whatever. If their offer is more than the payoff, they cut you a check for the difference. If their offer is less than the payoff, they require a certified check from you for the difference.
2016 ES350 Lux/Atomic Silver 2017 Accord Sport CVT Mod Steel Metallic
@richman1975 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.
@richman1975 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.
Like @jbakker7, I’ve sold 3 leased vehicles to CarMax (including 1 Honda and 1 Acura). In each case, I received a payoff quote for the vehicle and that’s what CarMax paid to close out the lease. They cut me a check for the difference between what they offered me and what the official payoff was. I’m not sure why any dealer would purchase a customer’s leased vehicle and turn around and pay the captive finance company more than what the customer actually owed on it.
@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.
2016 ES350 Lux/Atomic Silver 2017 Accord Sport CVT Mod Steel Metallic
@richman1975 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.
Like @jbakker7, I’ve sold 3 leased vehicles to CarMax (including 1 Honda and 1 Acura). In each case, I received a payoff quote for the vehicle and that’s what CarMax paid to close out the lease. They cut me a check for the difference between what they offered me and what the official payoff was. I’m not sure why any dealer would purchase a customer’s leased vehicle and turn around and pay the captive finance company more than what the customer actually owed on it.
@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.
Honda Finance may not have done that... but, they can. And, many other banks do the same thing. If the bank owns a car worth $22K at lease end, but the contracted residual is $20K, why would they give it up for anything less than $22K, unless it's to a person that has a contractual right to the lower price?
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.
@richman1975 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.
Like @jbakker7, I’ve sold 3 leased vehicles to CarMax (including 1 Honda and 1 Acura). In each case, I received a payoff quote for the vehicle and that’s what CarMax paid to close out the lease. They cut me a check for the difference between what they offered me and what the official payoff was. I’m not sure why any dealer would purchase a customer’s leased vehicle and turn around and pay the captive finance company more than what the customer actually owed on it.
@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.
Honda Finance may not have done that... but, they can. And, many other banks do the same thing. If the bank owns a car worth $22K at lease end, but the contracted residual is $20K, why would they give it up for anything less than $22K, unless it's to a person that has a contractual right to the lower price?
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.
I just re-read @richman1975’s original post and I see what you are saying. If the final lease payment has been made, a technicality might exist that would complicate selling the vehicle without the lessee first buying out the lease from the captive finance company. Honda, however, still allows you to extend your lease to allow more time to decide what you’d like to do with the vehicle.
2016 ES350 Lux/Atomic Silver 2017 Accord Sport CVT Mod Steel Metallic
@kyfdx@Michaell Interesting.... Please let me know if this is true or not. Honda just told me the standard money factor for 18 Accord Touring 1.5 is .00210 and that is WITHOUT a security deposit. They also told me they contacted HFS, and since "no one puts a security deposit anymore" that the money factor would actually INCREASE. Is this true??
@kyfdx@Michaell Interesting.... Please let me know if this is true or not. Honda just told me the standard money factor for 18 Accord Touring 1.5 is .00210 and that is WITHOUT a security deposit. They also told me they contacted HFS, and since "no one puts a security deposit anymore" that the money factor would actually INCREASE. Is this true??
Our only information is what we gave you before...
“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.
“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.
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.
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!
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 36600 Agreed price 34100 residual 20800 $0 down 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 nearly every fee thrown out, got them to pay my down payment, etc. they had started at $650/month so I thought I was getting a steal! 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!
Wow - did you purchase any extra accessories or a Hondacare contract? Was there a trade in with negative equity involved? What money factor did they use to calculate the payment? That payment is way out of whack.
Edit: Actually, with those numbers and no money up front, I calculate the lease payment is about right with 6.5% sales tax included.
2016 ES350 Lux/Atomic Silver 2017 Accord Sport CVT Mod Steel Metallic
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 36600 Agreed price 34100 residual 20800 $0 down 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 nearly every fee thrown out, got them to pay my down payment, etc. they had started at $650/month so I thought I was getting a steal! 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!
Wow - did you purchase any extra accessories or a Hondacare contract? Was there a trade in with negative equity involved? What money factor did they use to calculate the payment? That payment is way out of whack.
Edit: Actually, with those numbers and no money up front, I calculate the lease payment is about right with 6.5% sales tax included.
Just saw your edit- so the 7% sales tax takes it up that high? How so? Seems every other touring I see mentioned on this forum is $100 or more less per month.
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.
@spongecake I can't see all the numbers on that first page. The stuff that adds up to $1640. How much did you have to pay at lease signing?
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.
@kyfdx - thanks for the response and for the helpful analysis! From you and @tonyg2016, I’m gathering that it may not have been too bad a deal, just bad timing with Honda Financing since the residual for the touring is a bit lower and the money factor a bit high. So that’s comforting. And useful info for the future. Glad I at least got a good deal on agreed sale price ($2500 discount plus $1000 downpayment paid by dealer- sounds like that’s a solid price).
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.
My personal experience has been to sell my honda leases to Carmax. I’ve done it with my last 3 leases. They just pay the residual and you make up difference if there is any. Great way to off load, especially if you are over mileage or wear tear issues.
Currently I’m leasing a 2016 Subaru Forester XT and was told point blank by a salesman, not the one I bought from, that at the end of the lease I could take the car back to his dealer or Carmax because they would probably give me more for my Subaru than his Subaru dealership. Since my lease is almost up on my Subaru, I called about my Subaru lease with Chase Finance, that’s who is through for me, and they said I could take the car to any dealer and have them buy it at my residual amount but if I wanted a private individual to buy, I’d have to buy the car first then sell it to the private individual. In fact, I’m been to a couple of Honda and Toyota dealership lately and have been told by all of them they can get me out of my lease right now. I am going to know for sure soon about my Subaru because I’m going to go down to Carmax and tell them my situation to find out for sure. But Edmunds also says, Carmax does this “The used-car superstore CarMax is another place where you can go to get equity from a leased vehicle. In most cases, you can sell your leased car to CarMax in almost the same way as any other financed car, according to the company. It will appraise the car or truck, then contact the leasing company for a payoff quote and process any equity you might have. CarMax notes that it's important to check your lease agreement for details. Some don't permit such sales.”https://www.edmunds.com/car-leasing/3-ways-to-turn-your-lease-into-cash.html 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.
My personal experience has been to sell my honda leases to Carmax. I’ve done it with my last 3 leases. They just pay the residual and you make up difference if there is any. Great way to off load, especially if you are over mileage or wear tear issues.
Currently I’m leasing a 2016 Subaru Forester XT and was told point blank by a salesman, not the one I bought from, that at the end of the lease I could take the car back to his dealer or Carmax because they would probably give me more for my Subaru than his Subaru dealership. Since my lease is almost up on my Subaru, I called about my Subaru lease with Chase Finance, that’s who is through for me, and they said I could take the car to any dealer and have them buy it at my residual amount but if I wanted a private individual to buy, I’d have to buy the car first then sell it to the private individual. In fact, I’m been to a couple of Honda and Toyota dealership lately and have been told by all of them they can get me out of my lease right now. I am going to know for sure soon about my Subaru because I’m going to go down to Carmax and tell them my situation to find out for sure. But Edmunds also says, Carmax does this “The used-car superstore CarMax is another place where you can go to get equity from a leased vehicle. In most cases, you can sell your leased car to CarMax in almost the same way as any other financed car, according to the company. It will appraise the car or truck, then contact the leasing company for a payoff quote and process any equity you might have. CarMax notes that it's important to check your lease agreement for details. Some don't permit such sales.”https://www.edmunds.com/car-leasing/3-ways-to-turn-your-lease-into-cash.html 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.
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.
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?
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.
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.
Got it now.. Thanks for the insight. Hopefully I can get some equity out of it.
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]
Don't beat yourself too much on this deal. The fact that you are on this forum asking questions is the first step to getting a better deal next time.
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.
2021 Audi A6 P+2018 Audi A4 P+ (lease returned)2013 Honda Accord EX-L (Sold)
Can you all help me out if this is a good deal on the EX-L 2.0 (no nav)? They have the vehicle price at $29,420 (plus I owe an additional $1056 on my trade), $338 in fees, and taxes are 8%. $2,000 down ($1,000 from flexcash and $1,000 out of pocket). Through U.S. Bank at 10,000 miles with 56% residual and .00122 they are saying $414.13 per month.
Can you all help me out if this is a good deal on the EX-L 2.0 (no nav)? They have the vehicle price at $29,420 (plus I owe an additional $1056 on my trade), $338 in fees, and taxes are 8%. $2,000 down ($1,000 from flexcash and $1,000 out of pocket). Through U.S. Bank at 10,000 miles with 56% residual and .00122 they are saying $414.13 per month.
Accord lease rates can only get better. Why trade out now with negative equity, go with a third party bank, and still have a pretty substantial payment? Why not wait until your equity situation is better, and maybe a better lease program on the Accord?
Hello - checking to see if you have March Resids and MF for Sport 1.5, Sport 2.0, Touring 1.5, Touring 2.0. Also do they have any incentives? This is for 36/12. Thank you.
Hi! Checking on the incentives, money factor and residuals for the Accord LX Sedan for Tallahassee, Florida 32301. I'm flexible on the length (24 or 36 months) and mileage (10k+ is good), so whatever offers the best terms. Thanks!
Hello. I have an offer on the table to purchase 2018 Accord Touring 2.0T. Vehicle MSRP $35,800. Negotiated purchase price $35,000 out of the door (taxes, tags, etc). Is this a good deal or do I have more room to push? Thank you
Hello. I have an offer on the table to purchase 2018 Accord Touring 2.0T. Vehicle MSRP $35,800. Negotiated purchase price $35,000 out of the door (taxes, tags, etc). Is this a good deal or do I have more room to push? Thank you
Hello - checking to see if you have March Resids and MF for Sport 1.5, Sport 2.0, Touring 1.5, Touring 2.0. Also do they have any incentives? This is for 36/12. Thank you.
Hi! Checking on the incentives, money factor and residuals for the Accord LX Sedan for Tallahassee, Florida 32301. I'm flexible on the length (24 or 36 months) and mileage (10k+ is good), so whatever offers the best terms. Thanks!
.00210 and 66% (24/12) or 60% (36/12) No 10K allowance
Comments
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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Did you get a good deal? Be sure to come back and let us know! Post a pic of your new purchase or lease!
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