Buying out my lease of Honda CRV Touring 2020 ?

good_boy_1234

I have less than 4 months left in my lease with 2 payments left (just made one few days ago) and I have been hammared with dealers offers to buy my car. But it's the only car I have.
CRV Touring CRV
Mileage: < 20,000
Serviced every 6 months at Honda Dealer
Today's Purchase price per Honda payment website: < $23K

I am leaving to another state in less than 2 years from now and not sure if getting a new leased car would be a good option after this current lease ends. I am also hesitant to buy out my lease but the market is crazy for new cars. Looking at similar used cars prices, they are +$30K! So buying out for < $23K does not seem bad!

1) In case you advise to buy out the lease, do I have to pay $23K at once to avoid interest? or there are ways to split payments without adding interest?
2) I have a lot of equity on my current lease because of low mileage, well-serviced and Honda incentive to lease another car. This would give me a discount of at least $2K as a trade in. Would you guys recommend leasing a new car instead of buying out my lease?

Michaell

good_boy_1234 said:

I have less than 4 months left in my lease with 2 payments left (just made one few days ago) and I have been hammared with dealers offers to buy my car. But it's the only car I have.
CRV Touring CRV
Mileage: < 20,000
Serviced every 6 months at Honda Dealer
Today's Purchase price per Honda payment website: < $23K

I am leaving to another state in less than 2 years from now and not sure if getting a new leased car would be a good option after this current lease ends. I am also hesitant to buy out my lease but the market is crazy for new cars. Looking at similar used cars prices, they are +$30K! So buying out for < $23K does not seem bad!

1) In case you advise to buy out the lease, do I have to pay $23K at once to avoid interest? or there are ways to split payments without adding interest?
2) I have a lot of equity on my current lease because of low mileage, well-serviced and Honda incentive to lease another car. This would give me a discount of at least $2K as a trade in. Would you guys recommend leasing a new car instead of buying out my lease?

1. You have to buy the car out in its entirety; either by paying cash or financing the buy out price
2. The advantage to having equity is that it will help reduce the payments on the next lease. We can't tell you to lease again or buy out your car, but you've noted that you couldn't buy your car on the open market for what you can pay for yours.

good_boy_1234

I pay less than $300 on monthly lease. I think it's impossible to get another touring lease with such monthly payment. So no credit cards or check? Just the 23K right away?
What is the downside of buying out my lease?

Michaell

good_boy_1234 said:

I pay less than $300 on monthly lease. I think it's impossible to get another touring lease with such monthly payment. So no credit cards or check? Just the 23K right away?
What is the downside of buying out my lease?

You’re right that you won’t be able to replicate the current lease payment.

There will be sales tax and fees added to the buy out price, based on state and bank regulations.

good_boy_1234

I ran some calculations and it seems a new touring lease will be close to buying out my 2020 touring. Any suggestions on how to get zero interest auto loan so I can cover the $23K to buy out my lease? Is there a way to split into 2 payments? Anyway to negotiate with Honda? Credit card payments?

Michaell

good_boy_1234 said:

I ran some calculations and it seems a new touring lease will be close to buying out my 2020 touring. Any suggestions on how to get zero interest auto loan so I can cover the $23K to buy out my lease? Is there a way to split into 2 payments? Anyway to negotiate with Honda? Credit card payments?

I doubt you'll be able to find any 0% financing for a used car.

Buyout price is non-negotiable.

I don't think Honda Finance cares how you pay for the car, but I do expect them to get the entire amount at one time.