Its coming up on that time. 6 months to-go on my 2004 CGP lease. I have never leased a car before, so I really don't know what to do. I logged into the Honda Finance page and says that my payoff is about $15,300. I also checked KBB and Edmunds and they both are putting the value of the car at around $18-19K.

I know I am very very close to being over on the mileage, and I really don't want to pay a fee at the end. So i guess my main question is, what would you do? Buy it out, trade it in for something else? My goal is to lower my monthly payment so I can save for my wedding. As much as I would love a new car, i LOVE my TSX.

 

how much was your lease? If you want to figure out whether financing the residual $15k will fit into your wedding planning budget, use an online loan calculator. I know there's one on remax.com

I'm estimating at 6% interest that a 5 year loan will cost you around $300 a month

 

thats what I am thinking! Do I have to go to the dealership to do this?

 

Sounds like time to trade for a new car. If your car is worth more than the pay-off on the lease and you've been itching for a new car, now is the time to do it.

 

Is your residual 15k and you still owe 6 payments, or do you owe 15k including the 6 payment?

You have 3 choices, really, give it back to honda, sell it privately, or trade it into a dealership to get the equity out of it and use that towards a new car.

For example you say the residual is 15k, if thats total payoff, galves claims the car is worth appx 16500-17 to a dealer, then the dealer will pay off your 15k and apply the 1-2k towards a new car purchase.

 

Hmmm, It said total pay off amount was 15k, I still have 6 lease payments to go ($380). I'd LOVE to get into an RDX if i wouldnt have to put anything down, and would be able to keep the same payments, but i know thats a pipe dream.

If you were in my situation what would you do? and if looking for a new ride, what would you go with?

 

I would keep the car. First, I would put down as much money as I could toward the car and finace the rest through your bank (usually lower APR, expecially if you put some money down) Then, you can use the money you save monthly from your lower payment towards your wedding. The TSX is a nice car to keep for the family. You can always buy a mini van later. LOL

 

It would seem the 15K is the residual, and you have approx. $2280 to pay off. If you bail now, you'll owe that. If you wait it out, you may be in for a penalty if you go over the milage (however it won't be anything like $2K). That's how it goes with a lease. The only scenario I see where you can get anything out of it is to sell it privately when you are closer to ending the lease.

So I'll tell you what I've told a lot of 'soon to be married' couples. Maybe you'll get married and very little will change about your life situation. Maybe a lot will change. Maybe you'll start a family (by choice...or not ), change jobs, move, etc. The more you are tied to your car (or any debt for that matter), the fewer choices you have. So if you're going to be married soon, my vote is to have choices, not to be locked into a lot of obligations.

You said you wanted to lower you payment? A new car - let alone an RDX - won't do that. You can buy your TSX - $15K @ 6% for 48 months is $352 / month, @ 60 months it's $290. You can always get something even cheaper, but if the TSX is your standard then you don't have many places to go but more expensive. So, one plan could be to buy your TSX on a low payment, get married, see what life brings you, then decide where to go. You'll still have a solid car that will be an excellent trade or sell in a couple years. That's just one of many options to consider of course. That's how it goes with advice.

Good Luck!

 

Personally, leasing a car is pretty stupid if you can't write the monthly payments off (ie. if you own your own business), but to each...

In any case, since I've never leased before, inquiring minds want to know how you can sell the car when it's still technically owned by the leasing company? How can one sell the car privately as an option?!

 

The same way you sell a car that is financed...by buying the car first.

Or, you can choose to trade the vehicle in to a dealership for the market value of the vehicle. In that transaction, the buying dealership pays the leasing company the buyout value on the lease and the vehicle is released into their hands. If the vehicle is worth more than the buyout cost of the lease, that extra equity can be paid out in cash or used towards the purchase/lease of a new vehicle.