Automotive

Selling my Leased 2015 Honda Accord Sport

  • Last Updated:
  • Mar 8th, 2019 6:35 pm
Deal Guru
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Oct 6, 2010
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Toronto
RyanA70468 wrote: I don't understand, what taxes is this?
You pay taxes on used car sales.

So your buyout is actually $13,588+tx = $15354.44

EDIT: Actually, forgot to add the dealership fee etc... but anyways...
Last edited by koffey on Mar 6th, 2019 12:59 pm, edited 1 time in total.
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Apr 5, 2013
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lol... another op learning about real life on RFD
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Sep 9, 2012
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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.
If you're looking at AutoTrader, Kijiji, other ads you're looking at asking prices. Also, every seller prices higher because (a) they're greedy, (b) they value the car more than it's actually worth, or (c) they're a business to make a profit. Nobody pays asking price - the final sale price will be much closer to Black Book or VMR than you think.
[OP]
Newbie
Oct 15, 2018
16 posts
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ziaa wrote: You are purchasing the car from whoever the leasing company is. So you will have to pay HST on the balance.
Oh Okay. With all this worked in i don't see any potential profit really just a lot of work. Anyone suggest a good short term lease? Haha
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Oct 6, 2010
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RyanA70468 wrote: Oh Okay. With all this worked in i don't see any potential profit really just a lot of work. Anyone suggest a good short term lease? Haha
That's relative to what you choice of automobile is. IE; I could say there's an awesome lease on GM, but you hate domestic. Don't waste time asking, best check for yourself.
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Dec 11, 2012
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Coquitlam, BC
RyanA70468 wrote: Oh Okay. With all this worked in i don't see any potential profit really just a lot of work. Anyone suggest a good short term lease? Haha
Another lease take over :)
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Jul 30, 2007
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If OP is saying the market for his car today is worth around $16K, October is like 7 months away ... that $16K today will be reduced to around $13.5K - $14K easily by then. If that's the case, then there is really no profit upside to buy it out.
Sr. Member
Dec 16, 2008
887 posts
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Richmond Hill
Safety to be paid on top of your other expenses.

An Accord is not a kind of car for the lease buyout/sell profit OP is thinking. There are cars which you can earn a bit from reselling provided mileage is below average of course, but not an Accord due to its abundance.

OP's other option is to just buy it and drive it for a while if he/she does not look for the latest model.
Sr. Member
Dec 16, 2010
672 posts
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Canada
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.
When I was in the business and working for Toyota, we would see this sometimes.

You do NOT have to pay the admin fee to buyout your lease. ESPECIALLY if you bought it originally at the dealership. I would make it pretty clear I am not paying an admin fee.

As for the dealership taking care of the sale but charging another fee for this, it may make a little sense because of the following:

- If you're in Ontario (I'm in Alberta so doesn't apply), you cannot license the vehicle unless you get a safety done.

- You have to pay taxes on the buyout and then the private buyer has to pay taxes again (it's criminal the province does this if you ask me).

You don't need an e-test on a lease buyout per my understanding, but you may need one as it's 5 years old (criminal provincial practice again).

As per your lease agreement, you have first option to buyout the lease. But by reading above, it doesn't make a lot of sense. However, a Honda dealership has second option. They know this and is why they charge the second fee. The would essentially purchase the vehicle from Honda Financial and then sell it to the person you've found to purchase it. This is helpful because you save having to pay the Ontario tax.

The most lucrative option for you would be if you are buying/leasing another Honda. The dealership would usually not charge the second 'profit' fee in this case and the profit you make from it could be applied to the new purchase. When I was in the business this was called flipping your lease. Some sales guys would profit $1000-$3000 flipping their lease and finding buyers.

If you're not buying another vehicle, as I mentioned earlier, inform them you are not paying an admin fee if you're buying it out. If you do the math, and you find someone at an agreed price and if you subtract the admin fee and the 'profit' fee the dealer wants to make and you still come with several bills in your pocket, then it all comes down to how much time you want to spend ciphering through people wanting to buy it. Keep in mind, people like buying cars with a warranty and from the information in your post, you seem to be out of warranty compared to a dealer who could sell the car with a Honda certified preowned warranty.

Hope this helps and wasn't too confusing. I probably didn't write it very well.

Cheers
Deal Addict
Jan 19, 2008
1244 posts
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Etobicoke
Don't know why anyone would do this for a possible profit of $1000 or less. It could easily turn into a possible loss of $1000-2000 if everything doesn't go perfectly. Just pick up an extra couple of shifts OT and you will make more money without the hassles.
[OP]
Newbie
Oct 15, 2018
16 posts
8 upvotes
All great answers and advice. I wasn't committed to doing this at all. As mentioned, I have until October. I was just curious if there was potential and it seems like its slim to none. I will most likely return this car and do another lease takeover.

Thanks!
Banned
Aug 3, 2005
1235 posts
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RyanA70468 wrote: All great answers and advice. I wasn't committed to doing this at all. As mentioned, I have until October. I was just curious if there was potential and it seems like its slim to none. I will most likely return this car and do another lease takeover.

Thanks!
Where did you find your lease takeover initially?

I also hear its not worth it, but seems tempting.
Deal Expert
Mar 23, 2004
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ekcivichb wrote: 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.
Yeah but by that time you will tell OP, "It's nearly 2020, car is worth less money now" and tell him to sell it to you for $12k or something :lol:
Deal Expert
Mar 23, 2004
25632 posts
5927 upvotes
RyanA70468 wrote: I don't understand, what taxes is this?
Hello, and welcome to Canada! lol What do you mean "what taxes is this?"?

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