Assuming Lease of 2011 MDX
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Instructor
Joined: Jan 2005
Posts: 166
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From: St. Louis Metro Area
Assuming Lease of 2011 MDX
I wanted to see if any of you had experience with this type of situation or could lend any insight.
I own a 2009 TL (it was a CPO financed through the dealer and subsequently refinanced through Capital One). My partner leased a 2011 MDX last February, so he's just about 12 months into the 36 month AHFC lease.
I looked all through his lease contract and am trying to figure out if there is a way that I can assume his lease (selling my car and assume the lease on his).
There are all sorts of clauses on early termination and buyout, but it says that the lessee is the only one that can buy out the lease early.
Side note: Prior to purchasing my TL, I had a 2008 RDX lease that I ended 11 months early. However, the car was worth more than I owed on it, so the dealer "purchased" it and we applied the profit as a down payment on the TL. Not sure if something like this would/could be done in this situation too.
Any info would be appreciated - let me know if I can provide any clarification. Thanks!
I own a 2009 TL (it was a CPO financed through the dealer and subsequently refinanced through Capital One). My partner leased a 2011 MDX last February, so he's just about 12 months into the 36 month AHFC lease.
I looked all through his lease contract and am trying to figure out if there is a way that I can assume his lease (selling my car and assume the lease on his).
There are all sorts of clauses on early termination and buyout, but it says that the lessee is the only one that can buy out the lease early.
Side note: Prior to purchasing my TL, I had a 2008 RDX lease that I ended 11 months early. However, the car was worth more than I owed on it, so the dealer "purchased" it and we applied the profit as a down payment on the TL. Not sure if something like this would/could be done in this situation too.
Any info would be appreciated - let me know if I can provide any clarification. Thanks!
Three Wheelin'
Joined: Aug 2003
Posts: 1,282
Likes: 170
From: SoCal
Fortunately (or unfortunately), I've had a lot of experience in this area. I've done lease transfers with several vehicles and several different leasing agencies.
HOWEVER, not all leasing companies allow lease transfers. And unfortunately, as you read in the contract, Honda Financial is one of them (as well as Chase Auto Finance, which I found out the hard way when someone wanted to take over my Mazda 6 lease).
In addition (more bad news), Honda Financial doesn't even allow third-party purchases:
Yay. The good news is that you're not the lessee, your partner is, so this is not your issue as you have a CPO TL with a standard financial contract and can sell to whomever you wish. Your partner, however, can only buy the vehicle himself or trade in to a dealer.
If this transaction were to happen, your partner would need to buy the MDX (and thus pay sales tax), then sell to you, who in turn, would pay another sales tax (or more appropriately a "use tax") on the purchase. Double Yay.
HOWEVER, not all leasing companies allow lease transfers. And unfortunately, as you read in the contract, Honda Financial is one of them (as well as Chase Auto Finance, which I found out the hard way when someone wanted to take over my Mazda 6 lease).
In addition (more bad news), Honda Financial doesn't even allow third-party purchases:
We are unable to conduct third-party sales. Your leased vehicle may only be purchased by the original lessee(s) or by a dealer.
If this transaction were to happen, your partner would need to buy the MDX (and thus pay sales tax), then sell to you, who in turn, would pay another sales tax (or more appropriately a "use tax") on the purchase. Double Yay.
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lanechanger
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