Hi all,

I'm sorry if this isn't the correct forum to be asking this, but I am hoping maybe I can get some advice/guidance. I am currently leasing a 21' RDX Aspec. I like the vehicle, but I just recently accepted a new job position (pay is substantially more than I am currently making). I am also just about done with my Master's Degree, so I won't have that debt anymore (paying as I go). The new position is a much longer commute, and based on my agreed lease mileage amount, I am almost certain I will now exceed that limit. So, I'm kind of wondering what my best option is at this point. It appears that the vehicle market is kind of leveling out, so I am not sure if I should do one of the following:

1. Not worry about the miles, purchase the vehicle at the end of my lease, and then either keep it (or most likely) trade it in for something else.

2. Dump it now to Acura or Honda and get into a new Acura or Honda lease. I also have been looking at BMW, and found a dealership that owns a Honda dealership as well. They advised that they could buyout my lease and put me into a new BMW lease.

For those of you that currently lease, or have in the past, what would you recommend?

Thanks so much!

 

Acura forgives half of the overage on a lease up to 15,000 miles so basically you would pay 10 cents per mile over your contracted amount for up to 15,000 miles as long as you lease another Acura. However you may be able to negotiate the overage payment when the time comes. If it were me I would not worry about it now and when this lease is up hopefully the new car inventory situation and interest rate environment will be much better than it is now and you will be able to get a lower lease payment than currently available.

 

I would say #1.

I spoke with my dealer on Saturday about my lease options (2020 MDX A-Spec); the terms ends in May. In my situation, the best bet would be to buy it out at a lower certified/pre-owned promo rate now - which is 2.49%, depending on credit and term of course. Waiting will likely cost us more in the long run.

 

Option 1.

 

I don't normally chime in, but I have a similar situation with my 21 TLX. I am going to buy at the end of my lease term. I have been tracking the value of my TLX and given the value that used cars are still commanding, it would be in MY best interest to buy it. Yes, interest rates are high but I will have several options if I buy it out. I can keep it (which is what I want to do at this point), sell it or use it as a trade. So option 1 is your best option IMO. Good luck with what ever you decide.

 

Thanks, everyone! I think I will most likely just buy it outright at the end of my lease term. I do have a couple of questions regarding buying it out at the end of the lease.

1. Do I arrange my OWN financing prior to my lease term being up? I'm assuming I would get a better rate getting a car loan through my personal bank, possibly?

2. Can the vehicle continue to be financed through Acura Finance (moved from a lease lien into a purchase lien?)

Again, this whole leasing thing is all new to me, so any help would be greatly appreciated!

Thanks in advance!

 

Those are great questions. I know that my wife's CPO RDX was financed thru Acura, so they do offer loans for used vehicles. I still have a year left on my lease so I have a remote interest in loan rates and options. I suppose you could call Acura financing and ask them about your options. If you do get some answers to your questions, please share the results.

 

Here are my thoughts:

I would keep the current lease and evaluate options at lease end. Getting out of a leases locks you into a loss today and it's not clear that is a winning strategy. Getting out of the lease would be the correct thing to do only if is clear that you cannot afford it (sort of cutting your losses). What I'd do is estimate what the mileage penalty is going to look like (without any specials) and set that amount aside in a savings account.

As far as options at the end of lease -- Those options are likely to look very different from today. For example, used car prices could continue to drop and the economy could be in a deep recession at that time. So then the best thing might be to pay the mileage penalty. Or due to inflation, your residual might look good because used car prices are up but interest rates could make it unattractive to finance (if you are forced to finance). Or you get a raise/bonus/etc. that make the need to finance the car unnecessary. There could be affordable electric cars with massive incentives. And so on. There are just so many variables in this environment that I'd not worry about it.

 

You may find someone to take over your lease. Try www.swapalease.com

 

If you all don't mind me asking, what do you pay for your RDX per month? Also, is it a lease or did you buy it? I was looking around at the Mercedes dealership today with a friend, and test drove a 23' MB CLA 250 4Matic coupe. Wow, what a cool ride! I was just tossing around the idea of getting out of my current RDX lease and into a MB, snd it looks like my lease payment would actually be cheaper than what I am paying for the RDX.

Has anyone had personal experience with a MB? I'm sure it's not as reliable as an Acura, but I wouldn't be keeping it beyond my lease terms.

Just curious... Thanks!

 

We purchased the 17 RDX as my wife's MB was totaled in an accident. We financed 14K with the Acura .99% offer at the time so payments are very low ($286) per month. Just my OPINION, but I will NEVER get another MB as the cost of ownership is just way too high . You did mention that you would be leasing so I guess you have that issued covered. The RDX is a much better riding vehicle, but MB does win in the area of technology loaded in their vehicles. The other issue is that MB has a very high depreciation rate. It is all a matter of personal preferences so "to each his own."