Automotive

2016 Civic EX, lease take over

  • Last Updated:
  • Jan 16th, 2019 5:41 pm
[OP]
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Sep 12, 2017
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2016 Civic EX, lease take over

Hi looking around for a used civic, and curious about lease take overs, as there is many on Kijiji.

Someone posted a 2016 civic ex with 59,000km on it. there are 18/48 lease payments remaining at $336, and buyout is $11,000.

According to vmrcanada.com this civic is worth $13,500 (wholesale) and $16,000 (retail).

If I take over the lease and then buy this vehicle is be 18*336=$6000 + $11,000 (+tax) = $18,400.

1. Should I be asking for all transfer fees to be covered by the seller, and also, should at least 1 lease payment be added as an incentive? Dealers want around $19,500 for a similar car no including tax, this seems like a better deal no? Even if I negotiate with the dealer to $19,000 + tax it be $21,500. Seems it's $3000 cheaper to take over a lease.

2. Since the car is about to end it's 60,000Km bumper to bumper warranty, if anything happens to the car, do I need to repair the car at the dealership?

3. Is this a decent lease take over deal?

4. When doing a pre-purchase inspection, do you simply borrow the owners car and take it to the mechanic, before finalizing the deal?
Last edited by reggyDeal on Jan 15th, 2019 9:58 pm, edited 1 time in total.
27 replies
[OP]
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Sep 12, 2017
1261 posts
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Anyone know if a lease can be bought out any time, and if there are any penalties? The take over lease, may not have enough KMs for me before lease is up.
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Jul 30, 2007
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The orig owner has fully used up all the brakes and tires and you want to takeover this lease, without warranty ?

Ask the orig owner to pay at least 75% of those mentioned items and you can consider doing it; otherwise please amend your calculation to include them along with some contingency repairs fund.
Newbie
Feb 7, 2017
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Sounds like the original owner may have put cash down in which case they need to be willing to forgoe if they want to transfer. I would think in this Scenario it would be fair to have the owner cover the cost of the transfer.

As for brakes and tires these are wear and tear and would be one of the trade off’s or taking over a lease. Ask the previous owner if any of these items have been changed in the past. Don’t expect any extra incentive for this though as it’s the nature of how this works.

Based on your math the lease take over is a cheaper option if you plan to purchase the vehicle at the end.

You would still be able to even buyout the car and sell it for more if you were to do that effectively putting some money back in your pocket.

As for one month free I think the deal is fair without out.


******edit nvm just realized there is only 1000km left on the 18 mo lease wtf? The owner is trying to dump it to prevent paying the penalty. This deal would only be worth it to buyout the car at the end to avoid paying a km surcharge. I think it def would be reasonable to have the owner offer more incentive to take this over.
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Added note.

This guy is averaging 2,000km per month and yes, he is dumping the car to the next sucker in line. You need to see the orig lease agreement to find out what mileage he signed for and then to figure out exactly how much he had over used on his mileage. Take the excess mileage charge rate x excess km over per month x 30 months. That’s your lease transfer incentive you should retrieve from the owner

Lastly on your #1. Are you referencing your funding based on a high or average mileage car . The potential difference can be a few thousand $ in retail pricing
Member
Jan 12, 2013
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Halifax
So I think I’m reading this differently...

It’s a 48 month lease with 18 months remaining correct?
Honda does yearly kilometre allowances of either 20,000 or 24,000 km per year depending on original terms (unless the purchaser bought extra Kms at lease inception).
So 20,000 x 4 = 80,000 km allowable or 24,000 x 4 = 96,000 km allowable by lease end. But you need to see the lease contract to confirm this. And yes, you can pay out all remaining payments at any time without penalty for doing so. Dealers usually charge nominal fees to buy out leases.

The car has 59,000 km currently so you have 21,000-37,000 km left, or 1167-2056km left per month on average. Of course, if you intended to buy out at lease end none of this matters.

Your bumper to bumper expiring in 1,000 kms is a concern. Sometimes you can purchase an extended warranty before 100,000km on Honda’s but it’s dependent on your dealer. Contact them for details.

Anyways, the current lessee is going to go over his km allowance at his current rate of driving so that’s why he is trying to dump the lease. Use that to your advantage for incentives if you’re serious about it.
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Feb 8, 2010
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reggyDeal wrote:
Jan 14th, 2019 10:16 pm
Someone posted a 2016 civic ex with 59,000km on it. there are 18/48 lease payments remaining at $336, and buyout is $11,000.
Seller should write you a $3000 check to take over his lease. Because he had used all his *leased mileage*.
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Jul 12, 2003
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I m sure if searched enough, you can score a lower price Civic with less km and probably a better deal. Don’t take over the lease of that civic.
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[OP]
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Sep 12, 2017
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billy_z wrote:
Jan 15th, 2019 7:58 pm
Seller should write you a $3000 check to take over his lease. Because he had used all his *leased mileage*.
The lessee used 59,000 / 96, 000 KM allowed. So there is 37,000 KMs left for the the remainder of the 18 month lease. I think it's a good price, as the remainder of the lease and buy out price would come to $18,500 with tax. Where dealers for a similar car want 19,500 (+tax) = 22,000. So that be a $3,500 in savings.
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Xtrema wrote:
Jan 16th, 2019 12:42 am
https://www.autotrader.ca/ico/Honda/Civ ... 2&showVs=1#

Low km, priced decent.

I don't think you have shopped enough and used one dealer price to justify your savings.

There is also one in Calgary are for $17.5 with 55000km but I assume that's too far for you.
But op would be saving on some of the borrowing interest as well right? thats 3-5%+

seems like a decent deal to me if op's numbers is right
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Dec 15, 2017
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Leased cars are now allowed 96,000 kilometers? Spread out over how many years?

OP you are weak at negotiating, I would make this seller cough up 4 months of payments for putting so many km's on it and being only 1k from warranty expering.
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Jun 26, 2009
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Xtrema wrote: https://www.autotrader.ca/ico/Honda/Civ ... 2&showVs=1#

Low km, priced decent.

I don't think you have shopped enough and used one dealer price to justify your savings.

There is also one in Calgary are for $17.5 with 55000km but I assume that's too far for you.
Looks like rear bumper was repainted. Totally different shade than rest if the car. Is the Carfax clean? Zoom in on picture number 4. Right side where the bumper meets the fender. That's why they don't show any pictures from the side, it would be easier to notice.
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Tommy74 wrote:
Jan 16th, 2019 7:21 am
Looks like rear bumper was repainted. Totally different shade than rest if the car. Is the Carfax clean? Zoom in on picture number 4. Right side where the bumper meets the fender. That's why they don't show any pictures from the side, it would be easier to notice.
You can view the CarFax report right from the listing. It lists that an estimate was done for damage repairs of $1137. I would say you're probably correct about that bumper.
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TBBA29 wrote:
Jan 16th, 2019 7:29 am
You can view the CarFax report right from the listing. It lists that an estimate was done for damage repairs of $1137. I would say you're probably correct about that bumper.
lol wow, definitely not worth it then
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