When you click on links to various merchants on this site and make a purchase, this can result in this site earning a commission. Affiliate programs and affiliations include, but are not limited to, the eBay Partner Network.
Honda/Acura Financial has just announced that when it's time to turn in your lease, until further notice, you will only be able to do so at a Honda or Acura dealership. Honda finance will not accept lease payoff's from any other dealerships. Not a problem at all if you plan to lease another Honda or Acura. However, if you wish to change brands, that's the rub. Here is the article from Automotive News that was published today:Honda Motor Co. has a rude surprise for drivers of its leased cars: No more turning in your vehicles to other dealers.
The carmaker said Thursday it will require the drivers with expiring leases to return their vehicles to authorized Honda and Acura dealers and refuse to accept buyouts from unaffiliated dealers or others. Honda cited tight supplies of cars and trucks as a result of shortfalls in critical components and congestion at ports as the economy recovers.
The Japanese company is the latest automaker to take more control over leases -- and boost inventories -- by limiting vehicle returns to its own dealer network. The industry has struggled to meet consumer demand in recent months due to a global shortage of semiconductors, which has curtailed production and lifted prices for used cars.
“Our goal is to make sure our dealers have access to quality pre-owned Honda and Acura vehicles to satisfy the needs of new and returning customers,” Petar Vucurevic, a vice president at Honda’s financing arm, said in a statement.
Nationwide, auto inventories stood at about 1.5 million units at the end of May, the equivalent of about 25 days of supply, according to the National Automobile Dealers Association. That’s down from 2.6 million units and 61 days a year ago amid the pandemic, which depressed demand as showrooms closed and consumers sheltered in place.
It’s not uncommon for drivers to get out of their leases by going through a third party -- such as another dealer at a different brand who offers them a good price on a new car and is willing to take the old one off their hands.
The policy change, which Honda will reassess at the end of the year, applies to both existing and new leases, a spokesperson said.
Honda’s not alone in limiting options for drivers of leased vehicles looking to sell to the highest bidder. General Motors' financial arm introduced a similar policy earlier this month and Toyota Motor Corp. is reviewing its policy on leased vehicles.
While becoming more widespread, the practice is not new: A spokesperson for Ford Motor Co. said the company has refused to accept third-party lease returns for years.
Never having leased, I don't really understand how this changes anything. My understanding, possibly wrong, is when your lease is up, you turn you vehicle into the dealer where you leased it (or another of the same brand) OR you can purchase the vehicle for the pre-agreed price. So, If you leased an RDX and wanted to next lease, say a Volvo, you have options, yes? Obviously I don't understand how this changes anything.
Honda/Acura Financial has just announced that when it's time to turn in your lease, until further notice, you will only be able to do so at a Honda or Acura dealership. Honda finance will not accept lease payoff's from any other dealerships. Not a problem at all if you plan to lease another Honda or Acura. However, if you wish to change brands, that's the rub. Here is the article from Automotive News that was published today:Honda Motor Co. has a rude surprise for drivers of its leased cars: No more turning in your vehicles to other dealers.
The carmaker said Thursday it will require the drivers with expiring leases to return their vehicles to authorized Honda and Acura dealers and refuse to accept buyouts from unaffiliated dealers or others. Honda cited tight supplies of cars and trucks as a result of shortfalls in critical components and congestion at ports as the economy recovers.
The Japanese company is the latest automaker to take more control over leases -- and boost inventories -- by limiting vehicle returns to its own dealer network. The industry has struggled to meet consumer demand in recent months due to a global shortage of semiconductors, which has curtailed production and lifted prices for used cars.
“Our goal is to make sure our dealers have access to quality pre-owned Honda and Acura vehicles to satisfy the needs of new and returning customers,” Petar Vucurevic, a vice president at Honda’s financing arm, said in a statement.
Nationwide, auto inventories stood at about 1.5 million units at the end of May, the equivalent of about 25 days of supply, according to the National Automobile Dealers Association. That’s down from 2.6 million units and 61 days a year ago amid the pandemic, which depressed demand as showrooms closed and consumers sheltered in place.
It’s not uncommon for drivers to get out of their leases by going through a third party -- such as another dealer at a different brand who offers them a good price on a new car and is willing to take the old one off their hands.
The policy change, which Honda will reassess at the end of the year, applies to both existing and new leases, a spokesperson said.
Honda’s not alone in limiting options for drivers of leased vehicles looking to sell to the highest bidder. General Motors' financial arm introduced a similar policy earlier this month and Toyota Motor Corp. is reviewing its policy on leased vehicles.
While becoming more widespread, the practice is not new: A spokesperson for Ford Motor Co. said the company has refused to accept third-party lease returns for years.
No problem. I have 16k miles on the odometer and my lease is up in 2 months. I can sell it tomorrow to CarMax for 7k above what the payoff is. I can get a Lightstream unsecured loan for the payoff at 3% which will give me the title and then I can sell it to the highest bidder, pocket the difference as I don’t plan on buying another Acura product. Not just going to turn it in, walk away and let the dealer pocket the extra.
I've always turned in my leases to the original dealer (it's cleaner that way). Hopefully 27 months from now when my lease is up, supply/demand of cars goes back to normal.
I never lease, but when getting rid of my old car, I explore my options and do what is best for me. Sometimes it is selling it myself, sometimes it is trading it in, I even sold one to a used car dealer.
I never lease, but when getting rid of my old car, I explore my options and do what is best for me. Sometimes it is selling it myself, sometimes it is trading it in, I even sold one to a used car dealer.
The 2019 Acura RDX was my first lease EVER. In hindsight given the continuing issues I feel good that I made the right choice. I thought I would just turn it in and walk away as well but given the current Automobile inventory situation which no one could predict in 2018 I can make a nice profit fairly easily.
The 2019 Acura RDX was my first lease EVER. In hindsight given the continuing issues I feel good that I made the right choice. I thought I would just turn it in and walk away as well but given the current Automobile inventory situation which no one could predict in 2018 I can make a nice profit fairly easily.
But can you get what you want to replace it now?
If I had leased, mine would be up next month. I don’t see what I would want to replace it with.
If I had leased, mine would be up next month. I don’t see what I would want to replace it with.
Thats why I am going to pay it off at lease end in 2 months. Buys me some time to wait and get what I want or sell it at a profit and just drive our Lexus rx350 until the inventory recovers. Retired, can get by with one vehicle for awhile.
Thats why I am going to pay it off at lease end in 2 months. Buys me some time to wait and get what I want or sell it at a profit and just drive our Lexus rx350 until the inventory recovers. Retired, can get by with one vehicle for awhile.
Among other things, this is a big problem I have with leasing: being on a forced schedule. And always shopping. I know me, and if I knew I had to pick a new car every three years, I would start shopping for it a year in advance, at least.
I have a friend who leases, he always gets a Mercedes E. He just does not want to be bothered shopping for cars all the time.
Among other things, this is a big problem I have with leasing: being on a forced schedule. And always shopping. I know me, and if I knew I had to pick a new car every three years, I would start shopping for it a year in advance, at least.
I have a friend who leases, he always gets a Mercedes E. He just does not want to be bothered shopping for cars all the time.
I get that, A Mercedes is on my short list but inventory is scant right now. If inventories were plenty it would not be a issue. I only leased the RDX as it was a totally new platform that I could just walk away from if unfixable issues arose as is the case.
My lease on my 2019 rdx tech expires in Nov 2021, a few months away. I plan on buying out the lease and here's why: The buy out is $27K. I only have 20000 miles on it and my research has shown that the selling price of a used 2019 RDX with tech package with low mileage ranges from $35K to 38K. Just for the heck of it put my car thru the carmax site and they would give me $34K on the spot. With all that I would be foolish not to buy out the lease. Am I missing something here?
My lease on my 2019 rdx tech expires in Nov 2021, a few months away. I plan on buying out the lease and here's why: The buy out is $27K. I only have 20000 miles on it and my research has shown that the selling price of a used 2019 RDX with tech package with low mileage ranges from $35K to 38K. Just for the heck of it put my car thru the carmax site and they would give me $34K on the spot. With all that I would be foolish not to buy out the lease. Am I missing something here?
You are. It may only be worthwhile to buy it out now and then sell it. If you wait until November of this year, the used car market may no longer be so hot. You are taking a risk that the situation doesn't change by November.
Of course there's also the possibility that if you pay it off now, the deal might be a wash. You need to know what the payoff amount is right now to make the right choice.
You are. It may only be worthwhile to buy it out now and then sell it. If you wait until November of this year, the used car market may no longer be so hot. You are taking a risk that the situation doesn't change by November.
Of course there's also the possibility that if you pay it off now, the deal might be a wash. You need to know what the payoff amount is right now to make the right choice.
I agree that as the supply of chips increases and new cars become more available used car prices will decline, but I don't see the price of my RDX dropping from say $36K to $27K where I would just turn it back. I could buy out the lease now for $28K. I will probably do that and keep the car. I'm relatively happy with the performance, comfort, utility and reliability so far. Just that the navigation system is disappointing for a so called luxury vehicle. I can live with that. If I decide I can't live without the 2022 mid cycle upgrade I'll consider my options at that point.
When the built vehicles in storage waiting for chips are released for sale…………new and used vehicle prices will adjust to “normalized pricing” with in days or weeks.
There 100’s of 1000’s ( aka millions) built and waiting for the modules.
Carmax and Carvana paying top dollar ( crazy money) ……..when the music stops some might not have a seat.
We just sold our 2019 RDX to CarMax for over $3500 more than the lease by-out 5 or 6 months before lease end. We were never really thrilled with the car and are looking to get back to an X3, a plugin hybrid this time. In the meantime, we are an all electric, one car family with our Bolt EV.
We just sold our 2019 RDX to CarMax for over $3500 more than the lease by-out 5 or 6 months before lease end. We were never really thrilled with the car and are looking to get back to an X3, a plugin hybrid this time. In the meantime, we are an all electric, one car family with our Bolt EV.
How do you sell it that early before your lease is up? I’m thinking I’ll buy my 21’ APSEC unless something great comes out by then.
If you log into your account at Acura Financial you will see a payoff amount:
Payoff Calendar
Payments Remaining: 4 You can determine payoff amounts for days other than today by using the payoff calendar.
Maturity Date:12/8/2021
Payoff Amount:$31222.36
Good Through:7/12/2021
My understanding is you can purchase the car yourself at that price or sell it for that price plus a disposition fee. I think you can do this at any time during the lease.
If you log into your account at Acura Financial you will see a payoff amount:
My understanding is you can purchase the car yourself at that price or sell it for that price plus a disposition fee. I think you can do this at any time during the lease.
Absolutely. I went on line to verify my payoff amount and spoke to Acura Financial about the process just to confirm. They indicated to me there are zero fees if I choose to buyout the lease. Just some paperwork regard confirmation of mileage and plate transfer (fees apply there). So I would purchase the car, then decide at a later time if I want to sell.
Never having leased, I don't really understand how this changes anything. My understanding, possibly wrong, is when your lease is up, you turn you vehicle into the dealer where you leased it (or another of the same brand) OR you can purchase the vehicle for the pre-agreed price. So, If you leased an RDX and wanted to next lease, say a Volvo, you have options, yes? Obviously I don't understand how this changes anything.
For example, now I am leasing a RDX Aspec and still have 2 years till my lease is up, but the new GV70 catches my eyes and I want that right now. Well I am not able to do that anymore because Honda/ Acura won't accept Genesis to take over my lease. I will have to wait till my lease is up or turn the car to Acura now and pay a heavy fine for breaking the contract. Of course when my lease is up I can do whatever I want, turn the car back and buy/ lease another car, Acura or something else.
For example, now I am leasing a RDX Aspec and still have 2 years till my lease is up, but the new GV70 catches my eyes and I want that right now. Well I am not able to do that anymore because Honda/ Acura won't accept Genesis to take over my lease. I will have to wait till my lease is up or turn the car to Acura now and pay a heavy fine for breaking the contract. Of course when my lease is up I can do whatever I want, turn the car back and buy/ lease another car, Acura or something else.
You can buy out the lease at any time. The buy out amount decreases after every payment. Are you leasing through Acura Financial? So you could buy out the lease where you now own the vehicle, then sell the RDX or trade towards the GV70. The only thing is the buy out price will probably be significant after only one year of leasing but it's doable.
No problem. I have 16k miles on the odometer and my lease is up in 2 months. I can sell it tomorrow to CarMax for 7k above what the payoff is. I can get a Lightstream unsecured loan for the payoff at 3% which will give me the title and then I can sell it to the highest bidder, pocket the difference as I don’t plan on buying another Acura product. Not just going to turn it in, walk away and let the dealer pocket the extra.
Have you got a loan through lightstream before? Just curious as I may be doing the same thing near my lease end.
Canadian, but I just gave as an example, not decided to jump the boat yet. I do like the GV70 a lot but love my Aspec as well.
Me?
I would sit tight until this whole thing shakes out. It might be a couple of years. Once the chips start flowing and the cars start moving, it will still take time to see how it all shakes out.
Have you got a loan through lightstream before? Just curious as I may be doing the same thing near my lease end.
Yes I have on our 2010 Lexus RX350. Got the funds in one day and the title to the vehicle soon after. Easy process, great interest rate and car title in hand.
I've been leasing for over 20 years and IMO, Honda/Acura Financial offers the most flexible lease packages on the market. The change here, in this very unique and temporary automotive landscape, is that Honda/Acura is not allowing lease returns to other brands. As mentioned above, it's to keep their own inventory as stocked as possible. Some lots are flat out empty. Again, this is temporary as the chip shortage works itself out.
That being said, one option that's always available (assuming it's still valid during this timeframe as well) is that Honda/Acura Financial allows you to extend your lease up to 24 months (at the currently monthly rate) with no additional paperwork needed. This is 24 months after your current agreement of say 36 months. I've had to do this twice on Acura vehicles as my wife had lost her job (first instance) and we weren't ready to give up the vehicle in the second (and not willing to commit to buying yet). Obviously you don't want to make a habit of leasing a vehicle for 4 or 5 years, but in unique circumstances like right now, it's nice to have the option.
I understand the reasoning behind it, and that it may be contractually permissible and that Acura isn’t the only one doing this, but it’s still shitty. It reduces the market for selling and therefore undermines market pricing.
I understand the reasoning behind it, and that it may be contractually permissible and that Acura isn’t the only one doing this, but it’s still shitty. It reduces the market for selling and therefore undermines market pricing.
If your lease is coming up, it definitely pays to price out your car and see if it is worth more than the residual. Even if you don’t want to sell it yourself on the open market, there are lots of places to sell it wholesale.
Remember, when you lease a car, you don't own the vehicle. The leasing company owns the vehicle so they can dictate what they can do with it. Also, with Honda Financial, you don't have to turn in the vehicle at the end of the lease, you can extend the current lease. With today's low inventory situation or if you are not sure what to do next, extending the Honda Financial lease buys you time. With that said, if you are getting back into an Acura, the residual value for Acura's are high and you may be able to turn the vehicle in early and get into a new car. The value of the car will pay off the remaining payments and any fees will be forgiven. I turned in my 2019 TLX early with 6 months left on the lease in May 2021 for a 2021 RDX, and it didn't cost me anything to get out of the lease.
Remember, when you lease a car, you don't own the vehicle. The leasing company owns the vehicle so they can dictate what they can do with it...
Agree with this. Also to remember: if some unforeseen market event creates conditions that significantly reduce the residual value of your lease, you would not have to absorb the loss at lease end. I understand how some people want to see it differently, but I see this as fair. You can't expect to be able to profit from an upside when you are contractually protected from the downside. I normally don't side with the financial interests of car dealers, but a lease is a mutual agreement for the limited use of an asset owned by the lessor.
07-09-2021, 06:50 PM
