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Do dealers profit from taking your lease when the residual is way lower than market?

NJFLDriver2025NJFLDriver2025 Member Posts: 3
edited February 2022 in Acura
I am curios if multiple Acura dealer will give me a better lease price because they know they can make money on my current lease.

I am at the end of my current 2019 A-Spec RDX lease and looking to lease a new 2022 RDX A-Spec. The residual on my current lease is $26,200 with less than 30k miles, 7k miles under the 36k miles 3yr lease allotment, car is excellent condition. Online trade-in value KBB is $39k.

Can a dealer keep the car sell it and only pay Honda Financial the residual or does Honda Financial take the resale profit?

I live close to NYC so there are multiple Acura Dealers I could try and deal with.

Thanks for any insight?

Answers

  • MichaellMichaell Moderator Posts: 240,924

    I am curios if multiple Acura dealer will give me a better lease price because they know they can make money on my current lease.

    I am at the end of my current 2019 A-Spec RDX lease and looking to lease a new 2022 RDX A-Spec. The residual on my current lease is $26,200 with less than 30k miles, 7k miles under the 36k miles 3yr lease allotment, car is excellent condition. Online trade-in value KBB is $39k.

    Can a dealer keep the car sell it and only pay Honda Financial the residual or does Honda Financial take the resale profit?

    I live close to NYC so there are multiple Acura Dealers I could try and deal with.

    Thanks for any insight?

    If you simply return the lease, then the dealer has the option of buying the car from Acura Finance and selling it for a profit.

    You could, however, trade in the car at fair market value and put that profit in your pocket, or use it as down payment for the next lease.

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  • nickc3nickc3 Member Posts: 17
    Is that right? (The trade in towards a new lease) I'll need to do that. I"m debating whether to keep my RDX 2019 (current payment is 415) OR buying it - which is 25500 with taxes. There seems to be no incentives or inventory - so with no money down, I'm probably looking at $500+ per month for a base 4wd RDX....
  • NJFLDriver2025NJFLDriver2025 Member Posts: 3

    I am paying 495 if I can’t get the same I’ll extend the lease. Honda Financial says I can extend for up to a year.

  • kyfdxkyfdx Moderator Posts: 236,590
    nickc3 said:

    Is that right? (The trade in towards a new lease) I'll need to do that. I"m debating whether to keep my RDX 2019 (current payment is 415) OR buying it - which is 25500 with taxes. There seems to be no incentives or inventory - so with no money down, I'm probably looking at $500+ per month for a base 4wd RDX....

    The leasing banks can set restrictions. Some banks won't let a dealer buy out the lease, within the last month of the term. They can have different rules for their own make dealers vs. other dealers, etc, etc. Your lease contract doesn't actually give you the "right" to trade-in your car, but many leasing banks have no restrictions, as long as they get their payoff.

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  • NJFLDriver2025NJFLDriver2025 Member Posts: 3
    To trade it in I'm assuming I would have to purchase the car. The loss on the sales tax and DMV Fees (title transfer, etc.) is not insignificant.

  • kyfdxkyfdx Moderator Posts: 236,590

    To trade it in I'm assuming I would have to purchase the car. The loss on the sales tax and DMV Fees (title transfer, etc.) is not insignificant.

    If you are trading in a leased vehicle, the leased car has no value for a sales tax credit against the next car. Also, it doesn't matter if the next car is a sale or lease. Trading in a leased car to gain the equity is a separate transaction.

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