| junobear |
So...our lease ends in a few weeks for our '05 Pilot EXL. Don't laugh, there's barely 20K on it. Car is in great condition, almost worth holding onto, but I don't want to buy it.
Honda offers to let me keep the lease going, but I'm sure the price would be the same (which wasn't bad, really). But I bet I could get a better deal with a new one in this anti-SUV climate.
What would you do? Lease a '09? See if any '08s are around? Look at a different car altogether like a Highlander, a Lexus, etc? |
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| sblvro |
| if the residual value is higher than the actual market value of the vehicle, maybe honda can agree to sell it for actual market value since it will just languish in the dealers lot. Unless there is high demand for it if the market prefers the old design vs the new pilot:) j/k. |
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| jcantanixon |
| I turned my 05 in and got an 08 for super cheap. Couldn't be happier. |
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| whizmo |
The car is probably worth much less than the residual, so it makes no sense to buy out the lease. Likewise, making the same lease payment on a 4-year old car that you were making on a 1-year old car doesn't make sense - you'd be vastly overpaying.
I don't know if Honda negotiates these deals, but turning it in and buying it for the actual market value is a good one. Assuming of course, that the car still meets your needs.
Whatever you do, I'd certainly factor an increasing price of gas over the next five years in your decision. $3 gas is in the rearview mirror and with worldwide demand growing in places like China, we're probably in for a sawtooth ride over the next five years, with the general trend WAY UP. Investing in a new 15 mpg vehicle today should be done only if you absolutely have to.
- Mark |
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| sblvro |
quote:
Originally posted by whizmo
The car is probably worth much less than the residual, so it makes no sense to buy out the lease. Likewise, making the same lease payment on a 4-year old car that you were making on a 1-year old car doesn't make sense - you'd be vastly overpaying.
I don't know if Honda negotiates these deals, but turning it in and buying it for the actual market value is a good one. Assuming of course, that the car still meets your needs.
Whatever you do, I'd certainly factor an increasing price of gas over the next five years in your decision. $3 gas is in the rearview mirror and with worldwide demand growing in places like China, we're probably in for a sawtooth ride over the next five years, with the general trend WAY UP. Investing in a new 15 mpg vehicle today should be done only if you absolutely have to.
- Mark
He would still be ahead, because the price of his vehicle would be cheaper now than getting a new 09 pilot. I will say buy it with market value, if not then walk away. |
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| sblvro |
kbb msrp at 20K miles is $23K
kbb private sale at 20K miles, a dismal $17800:(
try to negotiate at $18K:) |
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| junobear |
quote:
Originally posted by sblvro
kbb msrp at 20K miles is $23K
kbb private sale at 20K miles, a dismal $17800:(
try to negotiate at $18K:)
Well, the stated residual value from the original lease puts my '05 at something over 19K. Can't imagine it's worth that. Had a very clean bill of health from the inspector, too. I'll be curious to see if the Finance Co is open to negotiate... |
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| deparson |
In this market KBB (blue book) can't keep up with falling prices. Don't expect them to be a good source for resell values of SUVs.
You have to look at on the ground prices of actual transactions to get an idea of what it is worth. My best guess is an 05 with 20k dealer sale would be around 16k-18k. Back off from there.
quote:
Originally posted by junobear
Well, the stated residual value from the original lease puts my '05 at something over 19K. Can't imagine it's worth that. Had a very clean bill of health from the inspector, too. I'll be curious to see if the Finance Co is open to negotiate...
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| junobear |
quote:
Originally posted by deparson
In this market KBB (blue book) can't keep up with falling prices. Don't expect them to be a good source for resell values of SUVs.
You have to look at on the ground prices of actual transactions to get an idea of what it is worth. My best guess is an 05 with 20k dealer sale would be around 16k-18k. Back off from there.
Thanks. And edmunds is closer to what yr saying. |
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| eldeekay9 |
Has anyone had any luck getting Honda Finance to sell for less than the residual?
My lease is up in December and I assume the residual is under water. I'd buy my '06 Pilot if they'd deal. But I'm not paying the $19K+ my lease says. |
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| jl_ss |
From an Acura used car manager who posts on the Acuramdx.org website: he can buy your turned in lease from Acura/Honda cheap, certify it (brakes, fluids, tires, etc. replaced), and resell it to you well under residual. Of course he deals in MDXs, but the Pilot has equivalent market conditions.
Some recent quotes:
"It all depends on the MDX in question. However, I have converted 3 lease buy out customers last month, they all bought their cars certified and got the special rate, new brakes, new fluids, new tires, etc and were still an average of $2,000 UNDER their residuals."
"For those of you not in the business, let me clarify this... When we take in an Acura or a Honda off lease (Assuming it was leased through AHFC) we have 3 purchase options.
1) Purchase at Residual. I do this on every TSX and RSX that comes in that's clean.
2) Purchase at Gross Payoff amount. I did this recently on a 2003 TL where the customer had extended their lease by 12 months, GP was $13k, Residual was $16,000. (Before Jeff jumps on me with his websites, this was a 13k mile car, yes, it was thousands over book, but we sold the car retail in 4 days)
3) Market Based Purchase Option. This is an option, and one that I use on MDXs, TLs and RLs (When I keep the things) where I can buy the car for a price that's based on what AHFC feels is the actual market value on the car. For a long time MBPO has been a laughable figure, starting in Feb/March they got in line with auction values, currently they are often BELOW Auction values, in the case of a car I bought today, WELL below market value. American Honda Finance corporation continues to drop the Market Based Purchase Option pricing on off lease MDXs
It's also been a bit tricky to figure out MBPO pricing lately, it has also been varying quite a bit, where in recent months it was a bit more Uniform, IE, you knew that a 2004 Base Touring with, say, 36k miles would cost you $X give or take $200 or so.
Now, all this being said, it's also important to remember that only Honda and Acura dealers can buy cars at MBPO (There's also an internal website for our use called VIPS where we can buy them for MBPO) and that the dealer auctions are open to ANY Licensed dealer. So if, say, the Nissan dealer up the road from me wants to buy a TL from AHFC, they have to go to the auction to do so." |
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