Automotive

Went over km on lease.

  • Last Updated:
  • Jul 25th, 2020 5:37 pm
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[OP]
Sr. Member
Sep 29, 2012
766 posts
55 upvotes
Toronto

Went over km on lease.

Hello

So I got Honda Civic 2017 2.5 years ago. But year ago I got different job which is far from where I live. On my lease if I go over 95k km which I did I am looking at $.12 per km. And I went over by 10k already and that’s $1200 penalty!
I still have 1.5 year left on the lease. This is first time leasing the car. I was thinking of buying the car out or trade it in and get newer model.
What other suggestions do you guys recommend?

Thank you
15 replies
Deal Expert
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May 22, 2005
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Either that or put it on Leasebusters with a hefty incentive.
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Feb 7, 2018
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sndeal wrote: Hello

So I got Honda Civic 2017 2.5 years ago. But year ago I got different job which is far from where I live. On my lease if I go over 95k km which I did I am looking at $.12 per km. And I went over by 10k already and that’s $1200 penalty!
I still have 1.5 year left on the lease. This is first time leasing the car. I was thinking of buying the car out or trade it in and get newer model.
What other suggestions do you guys recommend?

Thank you
Happened to us with our Honda. We ended up 20k km over limit and were set on buying out. Sales manager was going to write off the excess fees and give incentives to lease a new car. We still ended up buying out but go talk to dealership to see what your options are. Good luck
[OP]
Sr. Member
Sep 29, 2012
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Toronto
We’re you able to buy the car out before lease finish ?
Is there any fee to pay the car off earlier then lease ?
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Sep 1, 2004
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wiab89 wrote: Happened to us with our Honda. We ended up 20k km over limit and were set on buying out. Sales manager was going to write off the excess fees and give incentives to lease a new car. We still ended up buying out but go talk to dealership to see what your options are. Good luck
This.

Honda residual are low and resale tends to be above average that buying out and sell private is probably your best way to lose the least money on it. You have 1.5 years to save up or arrange loan for the buy out.

Kick the tires on a new lease but given you life has changed that you drive that much more, buying out and driving that Honda to the ground is probably your best bang for $.

But if you have money to blow, lease another one with higher mileage and repeat the cycle. Due to lower residual than normal, unless you have a lot of excessive mileage, there is still $ in it for dealer to flip you over to a new car/lease. And they also don't have to back down much since you have that large penalty over your head and not in a good bargaining position.
Last edited by Xtrema on Jul 22nd, 2020 12:58 pm, edited 1 time in total.
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Jul 30, 2007
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^ there is really no free lunch out there. sales mgr can simply use that excess mileage charge and applied towards any new lease discount and claiming the dealer is doing you a huge favor.
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Sep 1, 2004
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booblehead wrote: ^ there is really no free lunch out there. sales mgr can simply use that excess mileage charge and applied towards any new lease discount and claiming the dealer is doing you a huge favor.
They are if OP can't come up with the cash or loan to buy out. :D

That's why I always advocate that you make sure you can buy the car outright even if you lease. So you won't get trapped.
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Feb 7, 2018
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sndeal wrote: We’re you able to buy the car out before lease finish ?
Is there any fee to pay the car off earlier then lease ?
We bought out at lease end. With 1.5 years left on your term and over KM you’re likely looking at rolling some negative equity into your next vehicle if you want to get into a new car now. As others have mentioned it’s no free lunch, you won’t be able to negotiate down price as much and the dealership will dictate terms. You will have more leverage closer to end of term (6 months out).
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Jul 8, 2013
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sndeal wrote: Hello

So I got Honda Civic 2017 2.5 years ago. But year ago I got different job which is far from where I live. On my lease if I go over 95k km which I did I am looking at $.12 per km. And I went over by 10k already and that’s $1200 penalty!
I still have 1.5 year left on the lease. This is first time leasing the car. I was thinking of buying the car out or trade it in and get newer model.
What other suggestions do you guys recommend?

Thank you
Are you still happy with the car? Has the car been reliable? If so, keep on driving until the lease is up. You will then have few options: buy it out at the already agreed upon price, trade it in for another Honda (you will likely get a break on the excess miles), or simply return it and pay the penalty (not recommended).

If I was in your position, I'd figure out how much extra I'll be over in 1.5 years. I'll then think hard and see if I want to live with a '17 Civic for 5+ years with many kms.
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Dec 4, 2017
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You should also factor in if and when you need to replace tires and brakes. That should be part of the evaluation.

If you're going to replace the wearables near end of the lease, you're just chipping in to help the next owner.
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Jul 12, 2003
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Start saving money and once the lease is up, buy it out.

Check the residual value, + HST and some dealer fee and inspection fee. Save that amount of money, prepare to buy it out.
If you own the car, the excessive KM is no longer an issue until you sell the car later.

I would go for that route, and also start maintain the car properly since you are going to buy it.
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Your Honda dealer is eagerly anticipating your return to use that as a negotiating tactic to get you in to leasing another Honda.

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