Sarlacc

I have a friend whose 2009 civic si lease is ending.

I'm telling him to buy it out because the buyout cost is 13.9. And the cars are selling privately for 18-19k. Puts him in a good spot.

Question is.

Can the lease buyout price be negotiated? Or is it set in stone?

ttribe

The thing with leases is the cars are really owned by a bank and it's the bank that you have to deal with. When we bought out the lease on our 2000 Accord, it was with BofA and they told me - here's the buyout price, or return the car. There was no room for discussion.

dannyboy10

Depends on the financial institution. In this tight used car market, they have no incentive to negotiate with your friend since a "clean" 2009 Civic Si will EASILY wholesale in the mid-high 16's.

ZhenyaF

iTrader: (6)

I'm pretty sure Honda Financial doesn't negotiate their lease buyout.

Will Y.

It depends on the bank and maybe the car as well.

There's no incentive to negotiate the buyout price if the car is worth much more on the market.

Sarlacc

Thanks guys.

This is what I figured as well. They would rather have that car because the mark up in it to them would be very valuable.

BUT I just wanted to double check to be on the safe side.

ThermonMermon

buyout is set by financial institution - in this case, most likely honda financial. consider a buyout price as a balloon payment on a mortgage. its contractually set, and not open for negotiation unless you can raise a very valid reason to the bank as to why you cannot pay it.

fuzzy02CLS

iTrader: (2)

Yes & no. The buyout should be stated in the lease agreement. However I have seen banks/dealers negotiate that some. Not a big amount though, maybe $500 or so.

AZuser

If the buyout is $13,900, that's still a good deal if car can fetch the $18K like you say.

Shoofin

Dave, it's set in stone with AHFC. the amount you're saying the buyback is, seems a little low though, are you sure that's the buyback?

dannyboy10

Weren't residuals low during the crappy years of 2008-2009 ?

Shoofin

Yes, but more so on the bigger, heavier vehicles like minivans and SUV's. Not so much a fuel efficient 4 cylinder compact.

I guess it could be possible that his buyout is about $14k, I just don't think it's going to fetch $18-19k like David says it would. That's just me though

Type34

American Honda Financial Corp. definitely does not negotiate on end-of-lease purchases. I've had 4 leases through AHFC and am very familiar with their terms.

That buy-off is very plausible; it means he probably had a higher monthly payment (or neg a much lower selling price).

If this is his first lease purchase, you might want to let him know he'll pay fees + taxes on the $13.9K, so roughly $1400 extra (assuming around 10%). He's probably aware of this, but you never know...

Sarlacc

He didn't a great deal on the lease. He's pretty clueless about when it comes to big purchases such as this...and he was in a position where he couldn't and I think I was out of town to try and help. So, I'm not surprised if his payments covered more than just the initial depreciation...unless you're saying the buyback is different than the buyout.

Sarlacc

There is no 2009 civic listed for less than 18.8k currently on craiglist in So Cal...well...there is one for 16.5 but its a salvage.

I would assume that means he could get anywhere from 17-18k if he sold privately. The sedans are going for more than coupes...and he has lower mileage than the others at just under 25K.

Sarlacc

I was aware of this...so I have already been helping through. He has an appointment tomorrow I'm going to try and go to to help him take to honda to see what his options are.

We sat in the new Civic Si...I hate to say it...its shit. The interior is a giant junk of solid shitty plastic and the seats are a piss poor attempt to copy the GTI...there is nothing about this new model that is better than the 2009 except maybe the steering wheel...Everything else from materials to the ergonomics were horrendous...no wondering they are scrambling to get the MMC out as a major redux.

dnd2984

iTrader: (6)

Hmm my Wife has a 2010 CRV on lease that her dad did before we were married. The lease ends next spring. I was thinking of buying it out cause the buyout is like 12k or so. From what you stated above if its a balloon payment, can it not be financed? I was thinking of taking a 24 month loan cause the buyout is so low, but if the only option I have is to write a check I might as well finance another car.

Sarlacc

Yes...you can finance the buyout.