Breaking New Car Lease and Pay Off Questions - Desperate For Advice

terri232terri232 Member Posts: 8
edited May 2023 in Honda
I have a unique problem. Recently leased an SUV and am somewhat unhappy with car - it has less than 2000 miles on it. I have received a pay off price from the leasing company and here is my question:
Am I better off trying to sell it to one of the company who buys cars OR take it to the dealer of the new car I am interested in and trying to sell it to them? I have received one online offer which is about $2,000 less than the pay off.
Can anyone offer me some advice?

Comments

  • MichaellMichaell Moderator Posts: 250,460
    terri232 said:

    I have a unique problem. Recently leased an SUV and am somewhat unhappy with car - it has less than 2000 miles on it. I have received a pay off price from the leasing company and here is my question:
    Am I better off trying to sell it to one of the company who buys cars OR take it to the dealer of the new car I am interested in and trying to sell it to them? I have received one online offer which is about $2,000 less than the pay off.
    Can anyone offer me some advice?

    I don't believe Honda Finance allows you to sell a leased car to a third party (Carvana, Vroom, Carmax, etc.). You can only trade or sell it to a Honda dealer.

    You can engage with multiple dealers to see if you can get a better price from one of them, to minimize the hit you'll likely have to take to get rid of the car.

    Also, not a unique problem - lots of folks are looking to end their leases early, for whatever reason.

    Is it that bad? What model is it? What would you get instead?

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  • terri232terri232 Member Posts: 8
    The lease is with US Bank - it is a CRV-EX. I will check with US Bank to see if I can sell to a third party.
  • terri232terri232 Member Posts: 8
    I called and I can pay it off myself by selling it to a third party.
  • terri232terri232 Member Posts: 8
    So - try it sell it to a third party or take it to the dealer of my choice when I go to lease a new car - NOT a Honda..
  • kyfdxkyfdx Moderator Posts: 251,262
    terri232 said:

    I called and I can pay it off myself by selling it to a third party.

    I had a lease with US Bank, and they wouldn't let me sell it to a 3rd party, directly.

    If you are paying off the lease, you'll also have to pay sales tax. Only then, after obtaining title to the vehicle, can you do whatever you want with it.

    Of course, paying sales tax will make you that much more in the hole.

    US Bank will tell you a lot of things over the phone that just aren't accurate.

    Are you in NY or NJ? It's unusual for a Honda dealer to use a 3rd party bank, in most areas of the country.

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  • terri232terri232 Member Posts: 8
    I am in Florida and they did add the sales tax into my pay out
  • kyfdxkyfdx Moderator Posts: 251,262
    terri232 said:

    I am in Florida and they did add the sales tax into my pay out

    Seems like it would be cheaper to learn to love the car.

    Do you have the cash to purchase the vehicle?

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  • terri232terri232 Member Posts: 8
    I can't love it! Don't have ready cash to buy it back but could probably get a loan for a few days -
  • kyfdxkyfdx Moderator Posts: 251,262
    terri232 said:

    I can't love it! Don't have ready cash to buy it back but could probably get a loan for a few days -

    Just be aware that US Bank will not likely lend you the money for a lease buyout. Getting a loan, waiting for the title, etc.. Might be over a month before you have title in hand to sell the vehicle. No telling what might happen to the value, by then.

    Good luck.

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  • terri232terri232 Member Posts: 8
    Then following your advice, I think my best bet would be to take it to the dealer where I am interested in leasing the other car...
  • kyfdxkyfdx Moderator Posts: 251,262
    terri232 said:

    Then following your advice, I think my best bet would be to take it to the dealer where I am interested in leasing the other car...

    US Bank will not likely let another dealer buy the vehicle, unless you are opting for another US Bank lease.

    At least, that's been my experience.

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  • terri232terri232 Member Posts: 8
    Looks like Honda will buy it out
  • kyfdxkyfdx Moderator Posts: 251,262
    terri232 said:

    Looks like Honda will buy it out

    That would be good. Good luck!

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