Lease Buy-Out Question???
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From: socal
If you buy it out, go through a honda dealer to do the financing and have them "certify" it. It will cost you like $200 for the inspection (or Less) and you can have a 7 yr 100,000mi warranty on the powertrain. Even if you plan on paying cash, have them set it up as a finance and just pay it off the next month just to get the warranty. IMO
Matt
Matt
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From: socal
oh and If you wait till the end of the lease you can still have the certification done as long as you are under 80K mi., and Paivag is correct, you can negotiate this price at the end. A good measure of the wholesale value is between kbb.com (kelly blue book.com) and look at the trade in value. SPLIT the difference between the "GOOD" and "FAIR" values and try to get this price at the end of your lease (about what the dealer would get it for
)
Matt
)Matt
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From: Vancouver
Well, let's have a look, 02' Sebring Red (bad colour choice for resale)
15,000km is low . . . . . and I assume you don't go past that
Assuming that you end up with 14,000km per year
at the end of one year (summer time) you should have around 14,000km
That is considered low mileage on a one year old car. And assuming that you have no decs (hits over 2k)
your car is top book = ~$38,000 value (you said sticker price on the new car was $38K??? do you mean $48K???)
Retail top book (which means the lowest price a dealer should go when reselling this vehicle) is $42,775, which translates to the dealer listing for $44-$45K then slashing back to $42,800 or thereabouts
So how to determine whether it is worth it or not???
Simple, the money you have paid for the car, including deposit on the lease? Consider it gone
You are trying to minimize damage right now . . . . . so if you can buy out your car for less than $38K? (including taxes and shit) Do it cuz you can buy it out then sell it and worst case scenario, break even by selling it to a broker for $38K or more
If you buy have to buy the car out for more than $38-$40K (including taxes) then screw it, it's too much hassle, might as well just turf the car back to the dealer afterwards
15,000km is low . . . . . and I assume you don't go past that
Assuming that you end up with 14,000km per year
at the end of one year (summer time) you should have around 14,000km
That is considered low mileage on a one year old car. And assuming that you have no decs (hits over 2k)
your car is top book = ~$38,000 value (you said sticker price on the new car was $38K??? do you mean $48K???)
Retail top book (which means the lowest price a dealer should go when reselling this vehicle) is $42,775, which translates to the dealer listing for $44-$45K then slashing back to $42,800 or thereabouts
So how to determine whether it is worth it or not???
Simple, the money you have paid for the car, including deposit on the lease? Consider it gone
You are trying to minimize damage right now . . . . . so if you can buy out your car for less than $38K? (including taxes and shit) Do it cuz you can buy it out then sell it and worst case scenario, break even by selling it to a broker for $38K or more
If you buy have to buy the car out for more than $38-$40K (including taxes) then screw it, it's too much hassle, might as well just turf the car back to the dealer afterwards
Originally posted by Johnny--2K
I have an '02 Sebring/Red w/ hardtop, side strakes, spoiler, and paint sealant. Sticker on the car new was just under 38K, and i took a 4 year lease with 15K miles a year. I just got the car this past june, so it hasn't been even a year yet. My buy out now is about 29K and some change. They told me if i want to calculate it later, to take that price, and subtract any payments i have made twoards the lease to get my buyout....
Do you think this is a good price to buy it out at, or should i wait till june and just buy it out at the one year mark?
Oh yeah...today is Feb 26, and i am at 14,975 for mileage.....oops.....
I have an '02 Sebring/Red w/ hardtop, side strakes, spoiler, and paint sealant. Sticker on the car new was just under 38K, and i took a 4 year lease with 15K miles a year. I just got the car this past june, so it hasn't been even a year yet. My buy out now is about 29K and some change. They told me if i want to calculate it later, to take that price, and subtract any payments i have made twoards the lease to get my buyout....
Do you think this is a good price to buy it out at, or should i wait till june and just buy it out at the one year mark?
Oh yeah...today is Feb 26, and i am at 14,975 for mileage.....oops.....
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From: Brookfield
yes, waltk88 is right.......miles, and US$, not KM and CAN$...that makes a big difference....i get 15,000 miles a year, its been 9 months so far, and i just turned 15,000 miles yesterday....oops!
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From: Austin
Johnny -
Don't worry about mileage. The key behind a lease with a lot of extra miles on it is that you always have that option to buy. What you do if you are way over on miles is either buy it out or trade it in. In other words if you want like a BMW at the end of your lease (or any time really)...you can trade in your S2000 even though it's just a lease. Basically what will happen is that they will pay to get that car from you. If you are lucky they will give you at least as much as it would cost to buy out the car from the lease. Even if they don't give you enough for the full pay-off, as long as the difference is less then what you would pay in added mileage you are good. That's why it's always a good idea to lowball the mileage you expect to use on a lease. Your monthly payments will be lower, you won't be paying for miles you don't use, and you typically don't end up having to pay for the extra mileage. That's been my expericence anyways.
Rice
Don't worry about mileage. The key behind a lease with a lot of extra miles on it is that you always have that option to buy. What you do if you are way over on miles is either buy it out or trade it in. In other words if you want like a BMW at the end of your lease (or any time really)...you can trade in your S2000 even though it's just a lease. Basically what will happen is that they will pay to get that car from you. If you are lucky they will give you at least as much as it would cost to buy out the car from the lease. Even if they don't give you enough for the full pay-off, as long as the difference is less then what you would pay in added mileage you are good. That's why it's always a good idea to lowball the mileage you expect to use on a lease. Your monthly payments will be lower, you won't be paying for miles you don't use, and you typically don't end up having to pay for the extra mileage. That's been my expericence anyways.
Rice
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