Automotive

Help: Transferring lease buyout at the end of lease for Honda vehicle

  • Last Updated:
  • Nov 27th, 2020 7:48 pm
[OP]
Member
Aug 23, 2006
200 posts
5 upvotes

Help: Transferring lease buyout at the end of lease for Honda vehicle

Can someone please explain to me, in detail, how this process works at Honda?

My friend’s Honda is at the end of the lease. He won’t be buying the car but we want to buy it out at the residual value. The finance manager said we can do it, but we need to pay (buyout value + admin fee + tax) + tax again to buy it. He also said that all we need is for my friend to bring him a safety test certificate from his own mechanic and the original ownership. Then he will get us new plates and a release letter then pay the amount. He suggests that it’ll be cheaper if we refinance the car from him instead of paying out in cash in full because we would be saving the second tax. I’m not sure how/what he means by that. I can’t see how we can possibly be saving money by financing and he couldn’t clearly explain it to me either, except he kept pushing for us to go in to talk to him. But due to COVID, we want to deal with everything over the phone first and only go in to sign papers and pay. Can someone please tell me if what I’ve been told sounds right??
1 reply
Deal Addict
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Jul 5, 2011
1617 posts
1456 upvotes
Toronto
They can do a 3rd party buyout in your name to avoid having to pay tax twice. If they refuse it’s probably because they want to buy it out themselves and sell it, or the business manager doesn’t know what he/she is doing.
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