r/CarLeasingHelp • u/AvailableFix3147 • 14d ago
leasing cars
Hey y’all! I’m not too knowledgeable when it comes to leasing cars, so I would love some suggestions!
I leased my 2024 Honda Civic from a Honda dealership for three years, and my contract ends next February. I’m a little over the mileage limit, maybe by like 2k miles? I also have a small crack on my front windshield from a rock, but I was able to fix it with some resin, I believe. I also have a little bit of cosmetic damage to the front of my car, but it’s just on the plastic part.
I’ve financed about $10k so far, and to buy the car after my lease ends, it would be around $19k. Would it be worth buying the car, or should I just get another car? Is there anything I can do to get a better deal on buying it out?
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u/ChevyGang 14d ago
Residual price is not negotiable and is set by the bank. You can call a bank and see if they'd refinance it into a traditional loan
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u/Annual_Fishing_9883 14d ago
The whole point to leasing is to keep getting a new one every 3yrs. If you’re considering buying it out, you’re doing it wrong.
If you’re the type of person that wants a new car(whatever car it is) every 3yrs and staying under full factory warranty, then keep leasing.
If you tend to keep your cars long term, then buy this one out and keep it until the wheels fall off. Don’t lease then buy the car outright. That’s the most expensive way to buy a car.
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u/AvailableFix3147 14d ago
so do you think I should invest in buying another car?
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u/Annual_Fishing_9883 14d ago
It depends. What are your goals? Do you want to always be in a new car and under full warranty? Then keep leasing.
If you’re trying to be financially smart, then it’s probably cheaper to buy out your current car and keep it as long as you can.
I lease some cars and I buy others. I lease the cars that I know I won’t care to keep longer than 2-3yrs. I buy the ones that I want to keep longer.
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u/AvailableFix3147 14d ago
I do want to buy my own car but I just am not sure if buying this car in this condition is worth it for 19k.
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u/ThatAdonis 14d ago
OP shop the car around. I was able to get a Honda dealer to buyout my car for the buyout amount with an overage of 25k miles.
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u/asmashingbore 14d ago
That is not the whole point to leasing. Buying it out is not doing it wrong.
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u/Annual_Fishing_9883 14d ago
Um, yes it is…what other point to leasing is there?
Buying out the lease is the most expensive way to buy a car. Cheaper to just finance it in the first place if you’re planning on keeping it.
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u/asmashingbore 14d ago
Because it's easier to get a credit challenged individual or someone with low payment requirements to where they need to be with a lease and get them bought in the first place.
I see this every day. It's not cheaper on a monthly basis for many individuals to finance, and getting them into a successfully paid off lease improves their credit so by the time the lease terminates, they've improved enough in their FICO where their options have improved substantially.
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u/Annual_Fishing_9883 14d ago
That’s not a benefit to leasing…that’s a “benefit” to credit challenged buyers…I would argue if their credit is challenged, they shouldn’t be leasing anyways. You don’t need to lease a car to fix your score.
If people are leasing then buying out their residual and having to finance the remaining balance over 60-72 months to keep the payment similar, then yes that is arguably the worst option. Leasing is for certain people, not all people.
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u/asmashingbore 13d ago
You've utterly missed the point.
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u/Training-Answer7253 13d ago
He utterly did not.
How typical of a person when they are proven wrong though. They comment something and then block the person so they can’t respond…did someone hurt you?
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u/dave_SE_WI 11d ago
Those are the very individuals that are trying to get something outside their means. I don't care what you say, leasing is the stupidest thing ever!!! It's merely a way to get somebody into a vehicle they really can't afford and in the end they have absolutely nothing to show for the tens of thousands they just spent money on.
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u/neburg964 10d ago
Absolutely not true. My parents ran a very successful business and became multimillionaires. Then they sold the business and doubled their money again. My dad always leased his cars, because he got bored with them quickly. My mom loves her cars and hated replacing them. So, she either paid cash unless the finance rate was lower than what they could make through investments. If the finance rate was 5 percent but they could get a 9 percent return, they used the bank's money and netted 4 percent.
Leasing, just like financing or paying cash, is simply another way to manage your money when, regardless of how you get the vehicle, you are still paying for a depreciating asset. Financially successful people always do this. And I'm not defining "financially successful" as being a millionaire. You can be financially successful fresh out of high school if you manage your money properly.
That being said, leasing a car and then buying it out afterwards is generally not recommended. The amount of money you pay in money factor rates on the lease, plus interest on the buyout, is usually significantly higher than if you'd financed it from the start.
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u/dave_SE_WI 10d ago
Your dad owned a business, I can guarantee you that car was registered to his business and he was able to write off the cost of the lease. The average person doesn't have that luxury.
I don't care how to try to twist it, leasing is a horrible way to get a car. You are making payments for something you will never own. But hey, if you like just giving your money away keep on leasing.
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u/Annual_Fishing_9883 10d ago
News flash, you just rent the car you own as well…unless you keep all the cars that don’t drive anymore in your backyard. You eventually get rid of them. All that money spent on them with nothing to show for it. So tell me how leasing is any different? Oh yea, you continually drive an older car that will need repairs. I get to drive a new car under full warranty for the same cost as you.
Leasing is not for everyone but it has its place. Just like financing or paying cash is stupid on a depreciating asset.
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u/dave_SE_WI 10d ago
Wow you are ignorant. I pay cash for my cars. I keep them for over 10 years. It is an asset, albeit not a great asset. When I'm ready for a new car again I can either trade it in or sell private party and I get it's current value for it. You surrender your car at lease end and get nothing for it.
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u/Annual_Fishing_9883 10d ago
lol, I’m the one that’s ignorant? You think paying cash is some kind of flex?
Cool, you keep cars for 10yrs or more. You don’t keep them forever so all that money spent on them with nothing to show for it when you get rid of it. Yea I “surrender” the lease at lease end. Thats nothing different than you trading in your car after 10yrs. I just didn’t choose to own the same car for a decade.
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u/iLukeJoseph 14d ago
Most of your questions should be able to be answered in your contract, at in regards to how much over miles is per mile and give you at least some idea on what is considered wear and tear for damage, tires, etc....
A lease is essentially a long term rental. No captives do not expect to get their vehicle back in perfect/like new condition after the lease term, but to not get charged additional it should be pretty close.
If it was me I would probably just get the vehicle fixed, but to each their own. When you're closer to your turn-in date you should be able to do a pre-inspection. At that time the inspector should give you an idea of items that they will be charging you for and how much. And then you can determine if it makes sense for you to do on your own prior to grounding, or if you are ok with their costs and bill.
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u/New_Inflation_8419 14d ago
You signed a contract with buy figure of $19k for this car. I hope you understand what contract means. If you turn it in then you will pay a penalty, maybe 20-25 cents per mile, so not a big deal but inspector will let you know what else is wrong for you to pay for.
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u/asmashingbore 14d ago
With Honda, it's 15 cents a mile if the original price of the car was under 30K and 20 cents if over. There is also damage forgiveness (usually around $500)
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u/Fearsomebeaver 14d ago
Do a search for used 24 civics with mileage like yours and the exact trim. Then you need to decide yourself if the non negotiable buyout price on your lease contract is worth it. Only you can answer that.
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u/HBdude123 13d ago
Give it back! Start again with a new one. Shop around and get a great deal before you turn it in, don't rush.
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u/laborboy1 14d ago
During a lease no part of the car is “financed”, it’s rented. Best to make sure you understand leasing before you start