honda lease terms

Not sure where is most appropriate place to post this.

I have a lease on a 2006 Accord. Lease is up in July of 2009. Lease
buyout is $13500. 57000 miles on car now (12000 over) at $.15/mile
($1800) and payments of $330/mo. Owe about $4000 to get out of car
now.

Can the lease be turned into any honda dealer?
If I pay the $13500 buyout, do I still need to pay the milage penalty?
Do used 2006 accords sell for $13500 (I saw many posted for $16000-
$17000 online). My thought was to sell the car for $13500 then not
have to pay out the lease penalties.

Comments?

 

Ask you local Honda dealer, and then do your own research.

 

We went to 2 dealers over the weekend and were told 4 different things
(trade in, penalties, buyouts and similar). I could not decipher what
I am legally obligated to pay and need a non saleperson to comment.


anyone else? Thanks in advance

 

These are questions you should have asked before you signed the lease.
If you were to purchase the vehicle you would not have to pay the excess
mileage charge. I have leased many vehicles over the years and have
never paid a penalty for turning the vehicle in with excess mileage. I
have also turned vehicles in prior to the end of the lease and leased a
new vehicle without any penalty for the mileage being over the
contracted amount.

 

That makes sense - if you buy the vehicle the mileage should not matter at
all to the leasor. The charge is there because the leasor would otherwise
take a loss if you turned in a car that more "used" than expected. Instead
you would take whatever loss there really is when you resell the car.

But the big question is what the contract says.

Mike

 

I called a 3rd Honda dealer to figure out what the two I visited did
not tell me.

I can pay the buyout amount and not be liable for anything except the
extra payments.

thx to those which responded.

 

Have you read the contract? All the answers are in there.

From what I've seen, in general:

You will have to pay the mileage in addition to the buyout. If you
bail now, you'll owe the four grand, plus the mileage.

Read the contract on who you can turn it in to.

In my zip, Edmunds says a third party sale for an EX automatic sedan
with 57K would be around $14.5. Of course, those numbers are off
stats about 4 months old.

My numbers say you would pay $15.3 for a car you MIGHT be able to sell
for $14.5.

Read the contract.

By the way, read the contract.

If you don't understand it, pay a lawyer about $250 to read the
contract.
--
- dillon I am not invalid

When you wish upon a falling star, your dreams come true.
Unless it's really a meteorite hurtling to the Earth which
will destroy all life. Then you're pretty much hosed no
matter what you wish for. Unless it's death by meteor.

 

VERY doubtful.

A lease is simply a loan with smaller up front payments and a larger
balloon payment due at the end. That balloon payment can be satisfied
with the car (in good condition, as spelled out by the contract) or
cash. If you satisfy the balloon payment with cash, you get to keep the
car.

It's really very simple. If cash is on the table, they don't care if
the car is a beat up 300K mile piece of shit.

 

We went to 2 dealers over the weekend and were told 4 different things
(trade in, penalties, buyouts and similar). I could not decipher what
I am legally obligated to pay and need a non saleperson to comment.


anyone else? Thanks in advance

-----

It depends on what you can negotiate. You usually won't have to pay
the over milaege if you notify them that you are buying it out at the
end of the lease or if you agree to lease a newer vehicle.

You can also negotiate the price of a new vehicle for lease, which
will affect the monthly payment and residual.

 

You may have misinterpreted what I was saying. If he surrenders the
car prior to the expiration of the lease, that's called a buyout. It's
basically the same sort of thing as if he went to the end of the
lease, only the amount he pays is less (since he's not paying for
interest to the end of the term.

Yes, if he buys the car outright (pops for the balloon), they don't
give a FF what the car looks or smells like, it's his problem now.
--
- dillon I am not invalid

When you wish upon a falling star, your dreams come true.
Unless it's really a meteorite hurtling to the Earth which
will destroy all life. Then you're pretty much hosed no
matter what you wish for. Unless it's death by meteor.