reddogTL

Hey guys,

I'm having a hard time deciding on what to do. My lease is up in Feb. But the end of Dec. is the best time to pull the trigger on any new car deal, so I think i need to make a decision before the end of this month. The TL is currently at the dealer getting service done. The infamous Subwoofer deck rattle and the side mirror switch is being replaced due to intermittent issues. I like the car despite it's many interior rattles. Although I wouldn't mind a Type S to own for minor modding purposes. I'm not big on modding so the most I would do would be tints, CAI, and new wheels.

I've test driven a new 09 Accord coupe V6 EX-L/w Nav, 09 Lexus IS, and for shits'n'giggles an 08 Mustang GT. Infiniti G37 would probably be my next test drive. The Accord V6 is noticably slower than the TL. The Lexus and Infiniti are outside of my price range to purchase, so they would be leased. The Mustang GT is faster than the TL but it didn't feel THAT much faster. At least not enough for me to sacrifice the amenities of the TL to get one. I'm currently in an 09 TSX/w Nav loaner and I like it.

Current Vehicle Info:
07 ASM Acura TL/w Nav
15,800 Miles (Most likely will be 16,200 miles by Feb)
Bone stock except for changed DRL bulbs
Curb rash on all 4 wheels and rear bumper needs to be repainted from neighbor scraping it backing into his driveway(most likely will have insurance cover this since I have a police report filed)

Lease agreement:
Original MSRP listed in contract $36,800
Gross Cap Cost: $35,170
Cap Cost Reduction: $6,100 (Yes, its high, it was my first lease and had a tradein)
Lease pmt $299/mo. for 36 mo. (Yes it's low but see cap cost reduction)
Residual value(Buyout amt): $20,550

My thoughts:
I'm leaning towards buying out the car because it has low miles and since it's an Acura it should be reliable(except for rattles lol). But, now that i've lived and learned, I should of negotiated the vehicle price prior to the lease agreement so the cap cost was lower. Now the residual value is based on an original vehicle price that's close to the MSRP. If I buyout the car I will be paying close to the original MSRP in the long run which is $1,000's more after taxes and financing. I'm thinking it will be a no brainer if the leasing company offers me a lower buyout amount prior to the end of the lease.

Question for other people that have leased through Acura Financial Services:
Did Acura contact you toward the end of your lease and offer you a lower amount than the residual value on your lease contract?
If no, then I will waiting around for a phone call or letter in the mail that will never come and I will need to make a decision sooner than later.

Thoughts, suggestions, recommendations, and personal experiences welcome!

Thanks.

wonton

I really don't know how leasing works because I never leased one. Just think about how much you put in for the car and the amount that you would have to pay, then come to a conclusion to see if it's better to buy or not. Personally and this is just my opinion but a 3G TL > G37 > Lexus > Mustang > Accord. I recently purchased my TL a month ago and I also had to decide on which car I should get and coming on this website pretty much made my decision for me. 3G TLs are so much sleeker than all the new rides!

xrvman

sounds like where im at... paying $270 a month 3 years 15,000 miles a year and on my second year and the buyout is 18,000... have a lot more done to my car though. blacked out front, headlights, interior lighting, lowered, TL-S tails

kyamcg

iTrader: (2)

reddog, instead of spending the 20k on a TL, I'd put that towards a 2005ish RL. Just my opinion

wall e

keep the 09 tsx. its slower than a 07 TL, but who cares, speeding is a bad thing unless u have money to burn paying tickets.

Will Y.

I originally leased my TL for business reasons, but did so through Wells Fargo rather than American Honda. Wells Fargo wouldn't deal on the buy-out price, but I got plenty of notice on lease expiration.

After testing out a bunch of new cars (G37 6M, 335i, A4, XF, GS, Volvo C30 6M, etc.), I decided to buy out my TL at the original buy-out price because it is a nice, solid car. I couldn't drive enough to feel the extra acceleration from faster cars, which tended to have interiors that weren't as nice, and the cars with as-good or nicer interiors weren't as fast as the TL.

My TL was worth more than the buyout and I know its service history, so it didn't make sense for me to consider other used cars.

princelybug

iTrader: (16)

I say give it back.

reddogTL

Thanks for the input guys, keep it coming.

I see there's some mixed opinions on this which I already knew was coming.

Another piece of information i didnt mention in the original post was that, if you haven't noticed, the residual value of $20,550 is about $4-5k lower than the current market value of similar mileage used TL's on cars.com. This can also give me leverage if i wanted to buyout the TL and trade it in later. only problem that kills the deal is 7% state tax. the most i'd get is maybe $1k after taxes, fee's, etc. tradein over what ill finance for the buyout.

@kyamcg: I have looked at the RL's. I like the pre-2009 models but the technology package, navigation with backup camera, etc. didnt all come standard until the 2007 model year. cars.com lists 2007 RL's in $25-30k range. a bit high for me currently. so the RL is out.

@wall e: i do like the 09 TSX/w tech & backup sensor loaner they gave me. the only thing that i see it lacks is power and some interior room. the TL interior is a little bigger and more roomy. i cannot find an 09 TSX/w nav with decent miles for under $28k. purchasing a newer TSX would be out. the only option would be to lease one, which im keeping as my 2nd option if i dont buy out the TL.

I was thinking about calling the leasing company to see if they'll negotiate the buyout price. I was hoping other TL drivers that leased through AFS would respond to this thread with their own input. I'd like to know if AFS has been known to negotiate their lease buyouts.

carlos9827

iTrader: (2)

Have you considered 2010 TSX V6?

I personally like to get a new car every couple years or so but I have had my TL since 05!?!?!!! The reality is that I still love this car to death! If I went out a bought a new car right now though it would be the BMW 335i Coupe or Conv. GL

Oswald Vater

I would try to negotiate a lower buy-out price. If you can do so, keep the TL. If not, try to use the low mileage factor as trade-in leveage on a new car with Acura. They would rather sell you new than get no sale at all as with the buy-out or see you walk to the competition.

06 Acura TL

honostly man its not worth it, ur buy out compared to the current value of the car is gona be soo offf. TL's lost a lot of value

reddogTL

UPDATE:
So I decided to buy the car. Which I later found out banks charge up the ass for lease buy out rates. ALL banks are like this I've noticed. If you buyout your lease the interest rate is 3-4% higher than if you finanched the purchase for a used car from a dealer. I asked the banks and Acura Financial Services why this is and they have no answer for me. So I assume that they're trying to make extra money off the top on leases(the banks that is).

My lease is over in exactly 2 weeks. I REALLY don't want to pay for a 7-8% lease buy out. The 4-5% interest rate for used car purchases at local banks SOUNDED good at the time until I learned they're not for leases. I asked Acura what If I just get a used car loan check from one of these banks and just send it to them. They said the Banks lookup the VIN on the car and can see if there's a lien/lease on the vehicle, which they will jack up the interest rate.

I'm not eligible for any local credit unions. My credit score is 800 and I refuse to pay anything more than 5% for interest.

So now I dont know what to do. At this point I'm kind of pissed the banks try to milk leases like that. I really feel like giving the car back now.

Majofo

Don't buy it out.. not a good deal at all.

If you want to stay with a TL, get a low interest loan & buy a TL-S for the same price they're asking. In the mean time, go test drive a Camaro SS..

ImagePree

That buyout price, I think, is actually pretty reasonable.

Have you tried PenFed.org? Probably one of the lowest interest rates you could find anywhere.

ayanomich

You have to be either military or DOD employee to join Pentagon Fed Credit Union, if you are, you should join. But you would have to ask them if they consider a lease buyout the same as a used car loan. I just bought my 07/Navi off lease for residual of $21,709 plus 8.10% tax, which I'll deduct on 2010 taxes. Since I have savings, used my own money to purchase and am paying myself back, what the heck, interest rates on savings are garbage anyway and I don't want to pay interest on a loan. Knowing that used TLs where I live are selling for around $28 to $29K with the same mileage I have (27,500), and I don't want to buy the 4g TL, buying out the lease for me was the best thing to do.

ImagePree

Actually, there is a way into PenFed that'll only cost you a one time $25 membership fee to the National Military Family Association - note that PenFed does not require you to stay a member - once you're signed up with PenFed, you're in.

Majofo

PenFed is awesome.. I once got a loan approval over the phone, dropped by and picked up the check. Their rates are outstanding as well.

Oswald Vater

I was contemplating buying out the lease on my 04 2 years ago. I went to a credit union who treated the car as a used car purchase and not a lease buyout. In the end I turned the car in on an 08 when the dealer offered me a great deal on a new lease. I'll be in the same predicament at the end of this year and I'm thinking about buying the 08. In your case, if you really want the car, you still have 2 weeks to shop for a loan. There's got to be a bank/credit union out there that wants your business.

Bender

Don't buy it out. I know you want to but it is a rip off. The mustang will be disappointing as the new ones have 400+ hp and a 5.0 engine. Also they get 1 mpg more economy. The one you drove have like 300+ which the new v6 will come with 315 hp. I would seriously consider the Camaro It is the best bang for the buck in that class. If you still like the TL that much go find a used Type s. At leat that way you wont be taking it up the butt by some parasitic banker.

reddogTL

Thanks for the feedback guys. State Farm, which is also my insurance company, quoted me 6% for a lease buyout. Still higher than I'd like.

@Majofo: I dont know of any low mileage 2007 TL Type S for $20,600. Regular low mileage TL's are selling for over $25k MSRP. A friend of mine bought a Camaro SS. Although the sound of the engine and performance is nice, they have no indash navigation option. Plus i dont want to spend that kind of money for an SS, they're like $32-34k new.

@ImagePree: The residual is pretty decent i think. PenFed.org you need to be working for the government or military or red cross. If i pay the $25 membership for the National Military Family Association, dont i need a family member in the military?

@Bender: I wouldn't go with a Mustang unless it's a 2011 with the newer engines anyways. So dont have to worry about that.

Also, every credit union that i've seen in the area has a requirement that i must either work for the local town(government job), work for a bank, hospital, clinic, etc. I'm an IT consultant and have yet to find a credit union that would allow me to sign up as per their requirements. Anyone else in the IT field that was able to get a loan with a credit union?

Majofo

I got my loan from a credit union and I'm neither of those affiliations. In regards to the camaro.. I understand, but it's a bmf. In regards to finding a TL-S, it takes time.. over the past year there have been several members to score a fairly low mileage TL-S for ~$23k & the prices should only drop as they get older. You should definitely be able to find a low mileage 07 base TL for less than $20k though.. and score a decent % rate.

reddogTL

Welp, I've made my decision. The lease is over this wednesday so I'm out of time. I'm buying out the lease. I still have another year left on the bumper to bumper warranty so I can hold onto it or if I see something else I want I'll use it as a trade in since it'll be worth more than I'll owe.

Thanks for your opinions. They were all taken into consideration.

Let the modding begin

jvette

You have a real low residual on that car. My 07 TL Navigation just ended and the residual was $21,700 on the paper work. Acura/Honda wouldn't give an inch on the price to me but my friend purchased it through the dealer for a $499 dealer fee and he was going to finance it through his credit union and had a drift to use for the loan and the dealer offered him 3.9% interest to beat his 4.3% from the credit union. Even though you have a low residual right now you paid way to much for the car with $6 grand down. That payment should have been lower than you were paying. That dealer didn't do you any favors on that lease.

reddogTL

I agree with the $6k being too much as a down payment. I also could have negotiated the gross cap cost down more in the beginning but I didn't know any better. They tried to get me to do $7k down to get $299 again for the V6 TSX and I said no way am I doing that again. So I decided to deal with AFS directly to cut down on the dealer fee's and just buyout the car myself. It has just under 17,000 miles and I know its history. I figured I can hold onto it for a year or two and get my ultimate goal which is a used G37x Journey with Nav(with the newer 328hp engine). But hell by the time I do that there might be a newer G out by then and I'll want that one instead lol.

In any case, despite the rattles throughout the cabin, the TL is a good car. The financially responsible thing to do will be to hold onto the TL until its paid off. But time will tell.

mikeucla

I may have stumbled on to this thread a little too late. Not sure who you ended up with for your lender, but PenFed is a great credit union from what I've read. I have a lease maturing in a month on a TSX and I have decided to buy it out. I think PenFed will treat this the same as a used car purchase. Their interest rate on a 5 yr loan is 3.99% if you apply online. That's the lowest I've been able to find. As a bonus, they are currently running a special where they will refinance your existing auto loan and throw in $100 as a promotion incentive. This doesn't apply to me since I don't have an existing loan, but if you went in another direction you may want to consider this.

FYI, the $25 payment to join the National Military Family Association is open to everyone. I do not have a family member in the military and I was able to join without a problem.