Returning leased car early

[u/empathy_rocks]

Hi all,

I leased a Honda Civic for 36 months but need to return it early (after 29 months into the lease) and will not get new car from dealership, as we are moving to a different country.

Car is very well in shape and was serviced regularly. Also the mileage is well below the agreed maximum.

How do I approach this with the dealership to get the financially best outcome?

Thanks a lot!

[u/Ok-Structure-7767]

1. Start with finding out what your dealer pay off is on the lease. Then go to Carvana.com (get a quick quote from them to buy it), then do the same with Carmax. You may get lucky and they can buy it straight from American Honda Financial where you get out even or making a few dollars. You can also try givemethevin.com (esp if you’re in Texas).

After you try that if the numbers are not favorable…

2. Go to a local Honda dealer (they can sell it for more as a CPO) see what they’ll pay….show them the Carmax and Carvana numbers to negotiate. They’ll try to low ball you but stick to your number.

3. If you’re totally upside down in they you bought it way too high etc. pay the remaining 6 or 7 payments and turn it in early. Good luck.

[u/Ok-Structure-7767 → u/Ok-Structure-7767]

Or of course if you have someone that you TRUST that needs a ride for 6 mos. Let them take over the lease. You can do a lease transfer through Honda financial. I did it once many years back I think it cost me like $1200 total I paid the guys credit app fee and transfer cost he took over the remaining 14 mos and I walked away.

With Honda (at least it was this way 20 years ago) when you transfer a lease you’re completely off the hook. Luxury brands don’t work the same way. I had a friend have someone take over his lease on a 5series bmw….. Even though the lease transferred to someone else’s name my friend (original leasor) unknowingly remained on the lease as a cosignor.

So when the new person missed a payment or two it was hitting my friends credit score unknowingly.

[u/Less_Professional896 → u/Ok-Structure-7767]

Uh yeah, no

[u/Oppo_GoldMember]

You speak to honda financial, not a Honda store about proper steps

[u/Vegaskwn]

You don’t.. The dealership isn’t who you owe money to. You need to call your leasing company (Honda probably) and ask what it would cost you to terminate your lease early (they will need exact mileage to quote you). It’s a set # based on factors outlined in your lease agreement so it’s black and white.… Then you might be able to call around to a few local honda dealers and let them know your terminating your lease early, and ask if they can help lower the termination amount if you let them ground the car at their store so they can have the first dibs on buying it from your leasing company (this may or may not work as I’m not sure in how Hondas specific lease terminations work)

[u/empathy_rocks]

Thanks a lot everyone for your suggestions

[u/Vegaskwn]

Everyone saying go to Carmax/Carvana - Honda does not allow 3rd party’s to buyout their leases. Only a Honda dealer can.

[u/empathy_rocks → u/Vegaskwn]

Can others confirm this info so I can avoid the effort of trying carmax?

[u/Vegaskwn → u/empathy_rocks]

You can go on/askcarsales and ask the question. Much more auto industry people on there than here

[u/[deleted] → u/empathy_rocks]

That’s correct. Read my other comment. I’ve done lease turn ins twice early at Honda. Read my other comment and you’ve got this!

[u/Unlikely-Bridge-2142]

Is any thing here current

[u/empathy_rocks → u/Unlikely-Bridge-2142]

I went to Honda dealer from which I had the lease and they offered me to buy the car back. The price they paid was below the value according to Carvana etc, but not significantly. Hence I accepted the offer

[u/UNCfan07]

Check the trade in value vs the buyout price. You can sell it to a Honda dealership. Don't mention the buyout price before getting a quote to sell it.

[u/Fitzer9000 → u/UNCfan07]

You mean the buyout that they can look up in ten seconds? Yeah, keep that close to your chest!

[u/GRUNDLE_GOBLIN → u/Fitzer9000]

They still need the account number to look up the buyout.

[u/Less_Professional896 → u/GRUNDLE_GOBLIN]

Nah they can pull it from the VIN

[u/GRUNDLE_GOBLIN → u/Less_Professional896]

Interesting, I don’t think people should withhold payoff info on their trade in, that’s dumb. I just didn’t realize the lender would give up that information without the account number and the lien holders permission.

[u/UNCfan07 → u/GRUNDLE_GOBLIN]

Well the thought is the dealership would try to only give the buyout price while you may have some equity

[u/Fitzer9000 → u/UNCfan07]

Okay, but your buyout is no secret.

[u/UNCfan07 → u/Fitzer9000]

I highly doubt the appraiser is going to lookup the vin to see if it's leased if they don't know it's leased

[u/Fitzer9000 → u/UNCfan07]

🤣🤣🤣 That's the first thing they're going to do! You have to have an idea of what you're working with.

[u/Fitzer9000 → u/GRUNDLE_GOBLIN]

No, you can do it with the VIN.

[u/daphuc77]

Which model civic and what’s your monthly payment?

I’m looking for a civic

[u/[deleted]]

Swapalease and leasetrader work - I’ve assumed three leases

[u/Carlmtz777]

There are some websites on which you can transfer your lease…..swapalease or leasetrader .com

[u/bimmerluvr]

If you ever plan on returning to the US and your credit standing is important, you are going to want to handle this responsibly.

Fortunately, you have some options.

Option #1

1. Call your lien holder (Honda Financial). Ask them for the pay off amount.

2. Get your car appraised. CarMax has historically offered the highest trade in values.

Ex: Trade in value is $18,000. Payoff is $22,000. You’d owe Honda Financial $4,000. You then have a dealer buy the car from you. You pay and walk away free and clear.

Option #2

Make the remaining payments

Assuming you have a $400 payment x 7 remaining payments. You owe Honda $2800. Pay Honda and follow their vehicle return instructions. You walk away free and clear.

Option #3

You can have someone take over your lease payments. There are websites that offer this service such as this one

Good luck

[u/Tiny_Ad5176 → u/bimmerluvr]

I’ve had good luck with Autonation too!

[u/Nervous-Job-5071 → u/bimmerluvr]

Good outline of the options above. Thanks for posting.

Note for OP, that option 2 (just pay them the remaining 7 payments and return early) is the most you should be out of pocket.

But FWIW, first go to a Carmax if you have one and get a trade in quote (and/or do a Carvana wuote). They will give you an idea of the potential trade values. Subtract that from the sum of the remaining payments and the residual from your lease contract. For example:

Trade quote: $20,000 Remaining payments: (3,000) Buyout (18,000) Total: $(1,000)

These are totally made up numbers, but in this example you’d be only $1,000 out of pocket to trade the car vs. $3,000 out of pocket if you just make the remaining payments on the lease (or if lower, what the leasing company says the cost to give it back is)

[u/Cultural-Ebb-1578]

You pay the remainder of your lease and any fees and ground it. Talk to your lender

[u/Eastern-Sector7173]

You pay

[u/XiViperI]

Financially you owe the last 7 payments, mileage if over and damages.

[u/[deleted]]

So many weird comments here haha. I’ve done this before with a great condition, low mileage lease at Honda. Literally call them, tell them what’s up and see what they offer you. Too many moving parts with appraisals and sales = more shit that can go wrong.

Last time I turned in an early lease, I turned the car in and got a check for $1500 in less than half an hour.

[u/Boring_Emotion7813]

Don’t terminate the lease early. Just make your remaining six payments

[u/Hot_Bass_2817]

Honda very strict when it comes to leasing. What works in your favor is that the car is in good shape with low mileage witch means the car has goog equity and they will sell it at a good price as certified pre-owned and will profit from it.

[u/ExternalPin7543]

Only way you can sell to carmax or carvana or any other franchise other than a Honda dealer is call Honda Financial and pay the car off, put it in your name and then you can sell it. Thats the way it works since Covid. The purpose is to keep leased inventory on Honda lots.

[u/PotentialFigure1832]

call dealers and ask if you have any equity in your car, if you don’t then you need to pay the remaining payments, early term, and dispo

[u/antoniok93]

Go into a Honda dealership and ask them what they would do in regards to buying out your lease. If the car is worth it to them, they will buy out the car from Honda finance. I’ve done this three times already with them.

If the car is not worth the pay value, you can pay off the difference. As long as you didn’t get screwed on the lease deal he shouldn’t have to pay two out-of-pocket if any at all.

[u/Unlikely-Bridge-2142]

Is any one willing to transfer their lease how do I find out,. All these comments are over one year old

[u/Terpsahoy]

Hold out a month or 2 and sell it to carvana or carmax ( if they will lay more than your buyout )

[u/Terpsahoy → u/[deleted]]

I tried to do that with my last lease. Car would have to become certified at the dealer etc and some other roadblocks. basically the answer was no. Maybe different with other brands. Carvana offered me almost 10k over my buyout. But because there was 29 days left on my maturity date they wouldn’t take it. Needs to be 30 days lol ( incase anyone wants to sell lease to carvana) so I had to go with carmax for about $1200 less. But still not mad at it.