Automotive

Lease ending in few months, dealership offered to show me the new Civic & talk about my current car. Need some advice.

  • Last Updated:
  • Oct 1st, 2022 4:43 pm
[OP]
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Feb 10, 2018
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Lease ending in few months, dealership offered to show me the new Civic & talk about my current car. Need some advice.

Current lease: 2019 Honda Civic, EX. Has about ~34500 km. The lease ends in a few months. I am currently paying $157 bi-weekly @ 0.99 with about ~$12k residual.

The dealership gave a couple of proposals:

Proposal # 1
Proposal # 2

The surprising thing was the adjustment of $8,900 on the second proposal when I told them I am not signing anything today since I am leaning towards buying back the car. I told them a new car is not exactly on my mind as I am planning for a house in the next few years & want to be debt free, they told me banks won't care about car leases, lol. I know it was just them trying to convince me to sign.

Does any of the deals look good? Even if I want to change my current car, I would probably get something other than a Honda. :D
33 replies
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$5000 of ridiculous add ons and 5% lease rate. I don’t even need a calculator here. Buy out your current car on #1.

# 2 $8500 - $5000 add ons = $3500 net adjustment that I would consider as a positive equity of your current lease. Is it a lot ? Hard to say unless you talk to a couple more Honda dealers to see what they are willing to offer you.
[OP]
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Feb 10, 2018
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booblehead wrote: $5000 of ridiculous add ons and 5% lease rate. I don’t even need a calculator here. Buy out your current car on #1.

# 2 $8500 - $5000 add ons = $3500 net adjustment that I would consider as a positive equity of your current lease. Is it a lot ? Hard to say unless you talk to a couple more Honda dealers to see what they are willing to offer you.
Right, both deals definitely looked kind of bad. Oh & I have a minor accident on it too but considering that the dealership looked like they really wanted my car. I don't think I need to talk to any other dealership if I am buying back the car anyways.
Last edited by binarynumber on Sep 24th, 2022 6:04 pm, edited 1 time in total.
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The health insurance you don't have to take, along with the tyre & wheel protection, and I'd assume the "customer comfort" which I have no idea what that is but I'm assuming it's wear & tear protection?

Tint & 3M (presuming meaning PPF) might not be so bad depending on how much they are covering with PPF; but why would you care about that on a lease? That just helps the next buyer of the car on your dime.

But yeah anyway, just buy out your existing lease. Best idea esp. if you want to buy a house soon.
[OP]
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Feb 10, 2018
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ES_Revenge wrote: The health insurance you don't have to take, along with the tyre & wheel protection, and I'd assume the "customer comfort" which I have no idea what that is but I'm assuming it's wear & tear protection?

Tint & 3M (presuming meaning PPF) might not be so bad depending on how much they are covering with PPF; but why would you care about that on a lease? That just helps the next buyer of the car on your dime.

But yeah anyway, just buy out your existing lease. Best idea esp. if you want to buy a house soon.
A lot of those add-ons definitely sounded useless. They also tried to scare me that if I buy out my lease the interest rate is going to be near 7% plus taxes & safety if I finance (which I am going to since I, unfortunately, don't have the cash to spare). I told them I am fine with that since I plan to clear off that loan in a year or so.
[OP]
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Oh and also tried to convince me by telling me that the used car market is going to correct itself soon. Which in my opinion seems highly unlikely. At least for the next 6 months or so.
Last edited by binarynumber on Sep 24th, 2022 6:09 pm, edited 1 time in total.
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Your buyout is what ? $12,000 range ?

Autotrader is listing 2019 civic ex at $25-28k range. Looks like a windfall for dealer to buy it out at $12k and gives you $3500 and then try to sell at $26k for example. $10,000 potential margin for them.

https://www.cargurus.ca/Cars/l-Used-201 ... 56611/NONE

For you, you are paying 5% interest and a lot higher msrp on the new car. Meaning, that $3500 positive equity will be wiped out just like that.
[OP]
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booblehead wrote: Your buyout is what ? $12,000 range ?

Autotrader is listing 2019 civic ex at $25-28k range. Looks like a windfall for dealer to buy it out at $12k and gives you $3500 and then try to sell at $26k for example. $10,000 potential margin for them.

For you, you are paying 5% interest and a lot higher msrp on the new car. Meaning, that $3500 positive equity will be wiped out just like that.
I know, right!? I would rather buy it out & sell it myself & get the profit. They really tried their best today but I was having none of it lol
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If you finance $13,000 at 8% and payable in 1 yr. Your interest costs = $561. Monthly payments $1130

For 2 yrs financing at 8%. Your total interest costs = $1,100. Monthly payment $587
Last edited by booblehead on Sep 24th, 2022 6:22 pm, edited 1 time in total.
[OP]
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booblehead wrote: If you finance $13,000 at 8% and payable in 1 yr. Your interest costs = $561. Monthly payments $1130
Maybe one year is too optimistic lol.
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Edited to provide you with 2 yrs financing scenario.
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I'd move on just based on the sneaky sales tactics. Lol at the magical $8k discount, useless add-ons and also the original offer. $30k to lease a "$36k" car yikes Neutral Face

Glad you caught on with everything OP. Of course banks care about car leases! Mine made me pay off my entire lease when I refinanced the house..
Last edited by TimeRunz on Sep 24th, 2022 6:28 pm, edited 1 time in total.
[OP]
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booblehead wrote: Edited to provide you with 2 yrs financing scenario.
Thanks! Here's to hoping I will get rid of this debt soon. :)
[OP]
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TimeRunz wrote: I'd move on just based on the sneaky sales tactics. Lol at the magical $8k discount, useless add-ons and also the original offer. $30k to lease a "$36k" car yikes Neutral Face

Glad you caught on with everything OP. Of course banks care about car leases! Mine made me pay off my entire lease when I refinanced the house..
Thanks! I understand it's a liability at the end of the day & I want to get the best mortgage possible down the road.
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If your current car does mot have much mechanical issues and you are okay driving a 4+ yrs old car, I think you will save a lot of $ for the next few yrs for buying it out. Just budget $1000 annually for those rainy days repair funds.
[OP]
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booblehead wrote: If your current car does mot have much mechanical issues and you are okay driving a 4+ yrs old car, I think you will save a lot of $ for the next few yrs for buying it out. Just budget $1000 annually for those rainy days repair funds.
Mechanically it's been very good. No issues at all. I know the car has more years in it. Besides a minor accident involving the rear bumper replacement, everything has been a breeze with it. And I agree, I am definitely going to have some funds stand by in case of major repairs.

We all want the greatest & latest but at the end of the day, we need to be practical. I will definitely change the car but not Honda & not anytime soon definitely. I personally want to go to something nicer some day :)
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binarynumber wrote: Mechanically it's been very good. No issues at all. I know the car has more years in it. Besides a minor accident involving the rear bumper replacement, everything has been a breeze with it. And I agree, I am definitely going to have some funds stand by in case of major repairs.

We all want the greatest & latest but at the end of the day, we need to be practical. I will definitely change the car but not Honda & not anytime soon definitely. I personally want to go to something nicer some day :)
House first Thumbs Up Sign. Not a difficult choice/priority to make here.
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Aug 11, 2007
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Buy out your 2019 and trade it in. I bought out my 2018 civic ex after 48 month lease and traded it in for 22 000 plus tax with about 58 000km with 1 accident, made almost $10 000 equity off it.
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Buy out your lease OP…those proposals made by the dealership are just terrible! Talk about screwing someone over with a million useless addons Face With Rolling Eyes
[OP]
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singh20 wrote: Buy out your 2019 and trade it in. I bought out my 2018 civic ex after 48 month lease and traded it in for 22 000 plus tax with about 58 000km with 1 accident, made almost $10 000 equity off it.
That's a good suggestion too. Will probably do that if I decide to change my car.

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