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2017 Honda Accord Lease Early buyout or end of lease term

newuser8newuser8 Posts: 13
edited November 2018 in Honda
Hello everyone, I need some help in determining my options to buy leased honda accord now or end of lease. I leased 2017 Honda Accord EX-L V6 in September 2017 for a good deal of $300/month (including taxes). I leased during that time because of showing less debt in credit history in buying new house.
I have about 22 months left on the lease, residual value of the car is ~$16.5k at the end of the lease. Payoff amount is showing as $21192 in honda financial services.
Now, I like the car and want to buy it, I want to go over few things before I make the decision.
1. Does Honda Financial Services ever negotiate in residual values at the end of lease? I looked into similar spec 2015 Honda accord with 40k miles on it, and it costs more than ~$16.5k for pvt party or from dealer.
2. Does it make sense financially to buy the car now instead at the end of the lease? Auto loan interests are at ~4.5% now and might increase in the future? My lease car has MF of 0.00059.

Sorry for giving a long post, want to provide all the details as I could. Please suggest any other alternatives I might be missing. Thank you.

Comments

  • kyfdxkyfdx Posts: 184,684
    newuser8 said:

    Hello everyone, I need some help in determining my options to buy leased honda accord now or end of lease. I leased 2017 Honda Accord EX-L V6 in September 2017 for a good deal of $300/month (including taxes). I leased during that time because of showing less debt in credit history in buying new house.
    I have about 22 months left on the lease, residual value of the car is ~$16.5k at the end of the lease. Payoff amount is showing as $21192 in honda financial services.
    Now, I like the car and want to buy it, I want to go over few things before I make the decision.
    1. Does Honda Financial Services ever negotiate in residual values at the end of lease? I looked into similar spec 2015 Honda accord with 40k miles on it, and it costs more than ~$16.5k for pvt party or from dealer.
    2. Does it make sense financially to buy the car now instead at the end of the lease? Auto loan interests are at ~4.5% now and might increase in the future? My lease car has MF of 0.00059.

    Sorry for giving a long post, want to provide all the details as I could. Please suggest any other alternatives I might be missing. Thank you.

    1) Almost never
    2) Yes, used car rates could go up in the next 22 months, but in the meantime your effective rate is 1.4% APR for the next 22 months. Hard to beat that.

    Plus, you get 22 months to make the final decision.

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

    Edmunds Moderator

  • @kyfdx thank you for providing the insight. I just want to get the car under my name so that I dont need to worry about miles or any changes I want to make in the car. On the other hand, financially it would be hard to beat 1.4% APR on any auto loans. 
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