Should I keep my lease? If I don't want do I get?

Buying/Selling
1

Hey guys,

Looking to get some advice on a topic that is somewhat stressing me out and I would appreciate some feedback!

So I leased my 2015 Acura ILX and it’s coming to an end in October of this year. I like my car a lot, however, it seems like the market value of my car is going to be much lower than the residual.

I believe my payoff will be about $16500 (before taxes, fees, etc)
The car is a 2015 Acura ILX 2.4 6-speed manual w/ 52,000 miles.

Option 1: Is for me to just buy out the car.
-Can I negotiate my end of lease price whatsoever?

Option 2: My dad wanted to buy my car out, which leaves me car-less and in the market for a new one.

I’m somewhat leaning towards this option, as my ILX is still in the family and the option of getting something cheaper and newer is enticing.

Driving style:
I drive 50 miles round trip to work through downtown Los Angeles, I go out of my way for work (they reimburse me for driving) I fill up weekly, sometimes more. My Acura ILX despite being a manual was pulling roughly about 33mpgs and I want something similar to that.

I was looking at the option of getting a Chevy Volt ('13-15) as they’re pretty efficient, and I can take the express lanes to save time. However, I’m pro-Japanese and not quite sure what comes with the reliability and maintenance of these cars.

I don’t want to sound snobby, but being in a fairly nice, comfortable, reliable car is definitely a need for me. I spend at least 3 hours/day in it, so I guess you could say that it’s pretty much the standard now.

I definitely enjoy a sporty car, so a VW GTI was an option, Mini Cooper, Scion FR-S, but then again reliability is a very strong point for me. Looking to keep the price of the car around $15,000.

thanks!!!

1 Like
2

We have a lease ending soon, and we were told what the buyout price would be at purchase, now our car got rear ended, but we can pick up the same car, similar mileage for a couple grand less than the buyout price. We get 12k miles per year, will you owe money for extra miles?

3

Yeah at the time of leasing our car was put at 15k miles/year, as you can see exceeded it quite a bit lol.

4

You usually don’t lease a car that you’re going to put a lot of miles on. At any rate it is all math. The mileage penalty versus the higher residual. Could your father buy a similar off the lot much cheaper? If so why not and complicate the issue. Was there special care taken with this one or treated like a throw away leased car? I guess it would just be up to your dad but the warranty is over now if that means anything. As far as driving a mini three hours a day, I would very carefully consider what that would do to one’s back. I always drove larger more comfortable cars for my 2-3 hour daily stint.

1 Like
5

Make sure you can get a pass for the HOV lanes. The last time I heard, there aren’t any more available. Just because you have a hybrid doesn’t mean you can use the HOV lane.

Look at Edmunds.com to determine the value of your ILX configured as yours is in LA. If the value is lower, then tell the dealership that you might buy it if they make the price attractive. If Dad can’t get yours at an attractive price, he can get another for less.

If you use it for work and commute 250 miles a week, you might be in for a big mileage penalty. Add that to the cost to buy at the end of the lease and see if it equals the market value you got from Edmunds. If it is more than the buyout, let Dad buy it. You should consider making up the difference for mileage. Your company reimbursed you, after all.

6

Yeah, I definitely didn’t plan to throw so many miles on my car haha.

Reasoning behind my dad wanting mine is, yes despite the mileage it was well taken care of and the fact that he knows the entire vehicle ownership puts him way more at ease.

7

You have 2 options: 1) keep the car and pay the residual value at the end of the lease.
2) Sell the car privately at a higher price than what the residual value is worth

1 Like
8

Our lease dealer (KIA) said we could go over on miles and the extra miles would be forgiven if we leased another from them.

9

Or 3) pay the penalty and end the lease and then buy a car of choice. I guess the terminology was a little confusing but it sounds like the buy out price which was determined at the time of lease is now higher than the value of the car on a used car lot. So why would one want to buy it out unless the over charges for mileage are horrendous?

1 Like
10

If you go to the end of the lease you will pay for the excess miles. If you sell you don’t. Acura./Honda does not negotiate residual values/buyouts.

Your lease is probably old enough that you do not have a $350 early termination or buyout fee. read your lease to avoid suprises. Is the $16500 the end of lease residual or the present buyout? Acura financial will give your the current buyout over the phone. The Black Book current trade-in value is $16,500. I have never had a problem getting above the trade in value in the many times I have traded a leased Acura.

Leasing anything with 20000 plus miles is expensive. I would ask several Acura dealers for a buyout quotation. You can try Carmax, but I have never had any luck.

A $15,000 budget makes buying the ILX more attractive, as you know the history. This assumes its been maintained.

1 Like
11

I do not have any experience with leasing so take my words with a ton of salt.

I looked into this option when I was hunting for pre-owned Subaru that costs less than what pre-owned vehicles are sold at. DW had someone at work leased Outback and he was close to the end of the lease. I wanted to buy out that vehicle.

I noticed that you can not negotiate the price. Plus, in our case, the dealer was no one to talk to, it was the lien holder who I needed to talk and that will be the bank that financed the car. Whatever price they quote, take it or leave it was the option. In our case, it was Chase.

If your Dad decides to buy out that car, he may get a deal depending on the price that the bank quotes. If you buy the car, it will be the worst deal you can get.

After this information and a few phone calls to confirm, we dropped the idea and got a brand new Forester.

It will be great if you could update the thread on how it goes. I have not given up the idea for the next car if I learn something new

1 Like
12

https://www.edmunds.com/car-leasing/buying-your-leased-car.html - Read some helpful advice here just in case you want to buy your leased car. You can try to check out their appraisal tool too.

Also option 2 is another option also to choose new and affordable cars. The decision will depend on you at the end.