Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!





Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Did you get a great deal? Let us know in the Values & Prices Paid section!
Meet your fellow owners in our Owners Clubs

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: 133,854
    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. 
Sign In or Register to comment.