Automotive

Selling my Leased 2015 Honda Accord Sport

  • Last Updated:
  • May 18th, 2020 12:07 pm
[OP]
Newbie
Oct 15, 2018
16 posts
8 upvotes

Selling my Leased 2015 Honda Accord Sport

Hi everyone,

My lease comes to an end this October and the residual value will be about ~$14,000. The vehicle is a 2015 Honda Accord Sport 2.4L (https://www.auto123.com/en/new-cars/tec ... dan/sport/). At the end of the lease I'm expecting around 100km in mileage and the car is in good condition. Tires are 6/32 thread (replaced over the years but same rating as OEM), interior is not damaged and non-smoking drivers, pretty much in decent condition with expected wear and tear over 5 years.

My question is; will I be able to profit from purchasing this car (via LOC) and selling it privately. I can see posts on Kijiji and Auto Trader for $15000 to $19000. I have not sold a car before let alone a car that has been leased.
1. What are lease end costs? (assuming no mileage extra is driven, this car has a lease guard warranty of up to $7500)
2. What costs are associated with selling a car privately?
3. Can the potential buyer of this vechile purchase it directly from the Dealer to avoid selling twice? How so?

Any other tips and advice is appreciated.

Thank you!
Last edited by RyanA70468 on Mar 6th, 2019 11:46 am, edited 2 times in total.
30 replies
Deal Expert
Aug 22, 2011
34003 posts
19864 upvotes
Ottawa
Selling privately will always get you more.
Banned
Aug 3, 2005
1235 posts
1163 upvotes
Hit me up in August. I will be looking for a new "used" car later this year, and the 2015-2017 accord is my main target.
Member
Dec 11, 2012
238 posts
105 upvotes
Coquitlam, BC
According to vmrcanada.com, your car's value is between $12,500 to $15,000 with 100,000km, so I'd just return the lease. Here are the different situations and the possible outcomes IMO:

1) You just return the lease and because you have the lease protection, there are no cost to you unless vehicle has a big cosmetic damage which the warranty doesn't cover it. But other than that, you don't pay anything to the dealer.
2) You buy-out the lease, pay full sales tax on it, change the insurance and plates completely, and then sell the car privately. In this case the buyer will pay taxes so you won't be paying anything. But keep in mind that random people will test drive your car and you have to keep paying for the insurance until it's gone. Also you can sometimes negotiate with the dealer or even Honda Canada to get some discount on the buy-out price, something that you can try.
3) IF your plan is to purchase/lease another Honda, you might as well talk to your dealer and use the loyalty discount and just return the lease and buy another Honda at possibly a good discount.
4) If you are looking into another brand, try to trade-in your car and in that way you'll get some break on tax, but probably won't be getting a good offer from the trade-in.

I'd personally won't be selling the car off myself, unless I'm 100% sure that I can sell it for $1k or more than what I paid for it.
Deal Addict
Sep 8, 2017
3753 posts
3850 upvotes
GTA
And even then, that's a lot of work and risk for only $1000 profit.
Deal Guru
User avatar
Jul 12, 2003
11195 posts
3464 upvotes
Toronto
derass wrote: And even then, that's a lot of work and risk for only $1000 profit.
Exactly. I would not do it.

Your cost is residual value of the car, plus dealer admin fee plus HST on the residual value plus your Time.

And that's if you have that approx 16k sitting in the bank to buy it., more hassle if you need to borrow money for it.

Just return the car and enjoy the next one.
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[OP]
Newbie
Oct 15, 2018
16 posts
8 upvotes
Thanks for the comments and advice everyone. I checked and the exact residual value is $13,588. Also, there is an approx. $380 fee for the lease end process if i were to buyout, this is admin+taxes as explained by Honda Financial. I understand vmrcanada has the car valued at around $15k but the market as of today is going for slightly more, closer to $16K.

Honda Financial does allow a 3rd Party buyout but the dealership will charge and additional fee so $380+$200 to $500 more. With all that said, I'm look at a buyout cost of around $14468. If* if i find a buyer around October then i can coordinate this for a sale around $16000. That's a happy path and hopefully a win for me and a win for the buyer as this is a competitive price at the moment.

If not, then I am happy with returning the car and looking into whats next.
[OP]
Newbie
Oct 15, 2018
16 posts
8 upvotes
Thanks for your response. The money to buy it is in the bank and I don't think I'd have t worry about the HST if the dealership can process the 3rd party buyout. Its some hassle but i think worthwhile for $500 to $1000 profit.
Deal Expert
User avatar
Jul 30, 2007
27585 posts
12658 upvotes
Toronto
Yours is a 4 yr lease ? Is your mileage allowance good for 100,000km ? or have you pre-negotiated for the extra mileage (as typical allowance from Honda FS is either 20k or 24k per year).
[OP]
Newbie
Oct 15, 2018
16 posts
8 upvotes
It's a 5 year lease, updated the post. I have only had the car for the last 14 months. ( lease takeover)
Deal Addict
User avatar
Oct 16, 2007
1268 posts
512 upvotes
RyanA70468 wrote: Thanks for the comments and advice everyone. I checked and the exact residual value is $13,588. Also, there is an approx. $380 fee for the lease end process if i were to buyout, this is admin+taxes as explained by Honda Financial. I understand vmrcanada has the car valued at around $15k but the market as of today is going for slightly more, closer to $16K.

Honda Financial does allow a 3rd Party buyout but the dealership will charge and additional fee so $380+$200 to $500 more. With all that said, I'm look at a buyout cost of around $14468. If* if i find a buyer around October then i can coordinate this for a sale around $16000. That's a happy path and hopefully a win for me and a win for the buyer as this is a competitive price at the moment.

If not, then I am happy with returning the car and looking into whats next.
You are still responsible for the taxes on the 14k which puts you at ~16k
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Deal Addict
User avatar
Jul 23, 2004
2107 posts
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Montreal
Seems to me like this is a waste of time for a possible 500/1k$ profit...
Just give the keys back and move on.
[OP]
Newbie
Oct 15, 2018
16 posts
8 upvotes
It was worth looking into. I guess the consensus is that its not worth it. As i mentioned earlier this was a very short term lease as i took it over and i dont know if i want to lease, finance or buy next. Thanks anyways!
[OP]
Newbie
Oct 15, 2018
16 posts
8 upvotes
ziaa wrote: You are still responsible for the taxes on the 14k which puts you at ~16k
I don't understand, what taxes is this?
Deal Addict
User avatar
Oct 16, 2007
1268 posts
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RyanA70468 wrote: I don't understand, what taxes is this?
You are purchasing the car from whoever the leasing company is. So you will have to pay HST on the balance.
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