Topic: lease takeover fees

[taurean68]

Hi all!
Love this site! Lots of good info. Anyway I plan on taking over a lease for a 05 Civic SE at $204 for 48 months. Honda dealer wants $630 admin fee and $1750 security deposit. Does this sound right? The admin fee is BS in my opinion but willing to pay $200 max. The security deposit is refundable at lease end and will be taken off buyback ($7900).  Any other fees I should worry about that they may try to squeeze in there? Im getting a fair deal on the car but the fees dont make it look as attractive. . The taxes PDI,PDE and god knows what else was paid by the original purchaser. Can the dealer try to squeeze any of those fees out of me again?
Any advice or comments would be greatly appreciated.

[toolatecrew]

Are you in contact with the orgional lesee?

Usually when someone wants to get  out of their lease THEY (not the person taking over the lease) will spring for the lease transfer fee as an incentive.

The security depositis up to the leasing company although often you will see people offer to let you keep their security deposit as an incentive for taking the lease. $1750 seems pretty steep to me. Thats over 8 months of payments.

The freight/pdi has already been rolled into the lease. The dealercan't charge them .

[Snowman]

The cost to take over the lease on my 2005 GMC truck was $421 and it was paid by the original buyer. The dealer is trying to pull a fast one on you. Ask to contact the original owner.

[y2chuck]

That is INSANE.  Tell them to cram it and walk away.  If you are taking the lease from another owner there should be ZERO out of your pocket.  If this is a dealer's car and one of the employees leased it or something they are just trying to rip you off.

[Snowman]

And tell them CTC advised you on this scam and we will trash talk them on the internet if they don’t smarten the fack up. And automotive dealer wonder why they are loathed.

[taurean68]

The cost to take over the lease on my 2005 GMC truck was $421 and it was paid by the original buyer. The dealer is trying to pull a fast one on you. Ask to contact the original owner.

Hi! thanks for the advice. Yes I am in contact with the original owner. He is the one that told me of the fees that are needed to be paid to the dealer.Honda finance charges $500 and the dealership $130 for the transfer fee. He is losing his original downpayment and guess he figures its enough. He originally leased the car for 5 years and 4 years are remaining. The car has less then 11000 km on it.

[quadzilla]

He is the one that told me of the fees that are needed to be paid by the dealer. He is losing his original downpayment and guess he figures its enough.

None of that is your problem.  Tell him what you are willing to pay. I'm sure there are more Civics available for sale. When selling a one year old car you take a bath on depreciation....them the facts.

Have you seen the original lease papers?  I don't think that five years at 200+ is amazing for a lease on an 18G car. So I wonder how much he originally put down.

[taurean68]

He is the one that told me of the fees that are needed to be paid by the dealer. He is losing his original downpayment and guess he figures its enough.

None of that is your problem.  Tell him what you are willing to pay. I'm sure there are more Civics available for sale. When selling a one year old car you take a bath on depreciation....them the facts.

Have you seen the original lease papers?  I don't think that five years at 200+ is amazing for a lease on an 18G car. So I wonder how much he originally put down.

The original buyer is willing to pay $100 off the $630. How generous!    He says he got the financing for .04% Is that possible? He has already paid for a year. There is 4 years remaining. He didnt tell me what he put down as a downpayment.

[y2chuck]

The dealership should not be charging any fee.  Mazda charged me $325 + tx, as Snowy said he paid $420 or something so the $500 Honda charges sounds high, but if that's their fee, that's their fee.  If the original owner wants to get rid of it, ask him to pay the fee.

Is the original owner still the person the car is registered to or did this person just turn it over to Honda or something?  If you are only dealing with Honda (as in the previous owner had some type of walkaway protection and he excerised it) they are simply gouging your for that $1750 fee.  That means the dealer kept the original down payment (including the security deposit) and are now asking you to pay additional on top of that.

There are lots of Civics up on leasebusters, I would avoid this one as you are getting ripped off.

As for your last post, .04% is likely BS.  I don't think Honda has never had a rate.

[quadzilla]

The original buyer is willing to pay $100 off the $630. How generous!    He says he got the financing for .04% Is that possible?

Sure it is possible but that seems really low for a Honda.  Since you are serious about this car, ask the owner to show you the original leasing papers as everything you want to know is on there.  If he is lying about anything you will know right away and then can walk away from this deal or have more bargaining power.

I haven’t checked the price of a ’05 Civic but….

$204 x 48 = 9792

$7900 * 1.14 = 9006

$9004 + 9792 = $18798

You didn’t mention if this pmt included tax or not. So if you had to add tax to the monthly pmt…

$232.56 x 48 = 11,162.88 + 9006 = $20168.88

I’m sure you could easily find a ’04 or ‘05 Civic for less than that.

* I hope my math was correct.

[taurean68]

The dealership should not be charging any fee.  Mazda charged me $325 + tx, as Snowy said he paid $420 or something so the $500 Honda charges sounds high, but if that's their fee, that's their fee.  If the original owner wants to get rid of it, ask him to pay the fee.

Is the original owner still the person the car is registered to or did this person just turn it over to Honda or something?  If you are only dealing with Honda (as in the previous owner had some type of walkaway protection and he excerised it) they are simply gouging your for that $1750 fee.  That means the dealer kept the original down payment (including the security deposit) and are now asking you to pay additional on top of that.

There are lots of Civics up on leasebusters, I would avoid this one as you are getting ripped off.

As for your last post, .04% is likely BS.  I don't think Honda has never had a rate.

He still has the car and is driving it. Its registered to him. He's not willing to budge on the fee except for $100. I think I will tell him to stuff it.

[y2chuck]

The dealership should not be charging any fee.  Mazda charged me $325 + tx, as Snowy said he paid $420 or something so the $500 Honda charges sounds high, but if that's their fee, that's their fee.  If the original owner wants to get rid of it, ask him to pay the fee.

Is the original owner still the person the car is registered to or did this person just turn it over to Honda or something?  If you are only dealing with Honda (as in the previous owner had some type of walkaway protection and he excerised it) they are simply gouging your for that $1750 fee.  That means the dealer kept the original down payment (including the security deposit) and are now asking you to pay additional on top of that.

There are lots of Civics up on leasebusters, I would avoid this one as you are getting ripped off.

As for your last post, .04% is likely BS.  I don't think Honda has never had a rate.

He still has the car and is driving it. Its registered to him. He's not willing to budge on the fee except for $100. I think I will tell him to stuff it.

Yeah, the 1750 he's asking for is going to recoup some of his original down payment.  Much better deals on Leasebusters for the same car.

[taurean68]

Thanks for the great info guys!

[Cord]

If you are truly taking over an existing lease then the terms of the original lease will not change. The payment, the mileage limit, security deposit, and the buyout amount are all spelled out on the lease contract and will not change with a transfer of name on the lease. Any fees required to do the transaction are separate - Honda will charge a fee and since there is nothing in it for the dealer, they will probably charge something as well.

The only thing that Honda Credit will care about is that the new lessee meets their credit qualifications and that they get their fee. They will need a completed credit application to determine if you meet their criteria.

The request for $1750 security deposit seems unlikely to be legit as this would mean a re-writing the lease contract.

My advice: Contact Honda Credit to verify their requirements for a lease takeover. Ask the current lessee to see the original lease contract. Be prepared to search around for a dealer willing to work for free.

[taurean68]

You guys are great! I can get a better deal at leasebusters if I choose to go that route. I was wondering......does your credit rating have to be really good to get a lease as opposed to getting financed? Im not interested in leasing (except for the low monthly payments) but since I put about 40k a year a buyback is a must if I ever leased. I just don't like the extra money for a vehicle that has to be paid because of a lease.

[y2chuck]

You guys are great! I can get a better deal at leasebusters if I choose to go that route. I was wondering......does your credit rating have to be really good to get a lease as opposed to getting financed? Im not interested in leasing (except for the low monthly payments) but since I put about 40k a year a buyback is a must if I ever leased. I just don't like the extra money for a vehicle that has to be paid because of a lease.

If anything it would be the other way around since financing would be more $$/month.  I don't think it really matters tho.  If you can afford it and you have a good rating, you'd qualify.

[Cord]

Im not interested in leasing (except for the low monthly payments) but since I put about 40k a year a buyback is a must if I ever leased. I just don't like the extra money for a vehicle that has to be paid because of a lease.

It is a fallacy that driving higher than average kms automatically disqualifies you from leasing. All leases have the ability to be custom tailored to the kms required. If a lease comes standard with 25000km but you drive 40000km, the lease can be adjusted so that it allows for 40000km/yr. The payment will go up but the buyout amount will come down accordingly.

If you finance rather than lease and drive those 40000km/yr, after 4 years you will have a car with 160,000km compared to the average car with 100,000km. What do you think those extra 60,000 kms do to your car's value? In many cases, this drop in market value equates to a situation where the car is not worth what you still owe on it. Sure, you can say, "but I own it," but who cares when you still owe the bank more than you can sell it for?

For many people ending up after 4 years with a 160,000km on a car they are still making payments on isn't that attractive.

[MKII]

Familiarize yourself with "Leasing" it always pays to understand what its all about
http://www.leaseguide.com/

[tenpenny]

[
If you finance rather than lease and drive those 40000km/yr, after 4 years you will have a car with 160,000km compared to the average car with 100,000km. What do you think those extra 60,000 kms do to your car's value? In many cases, this drop in market value equates to a situation where the car is not worth what you still owe on it. Sure, you can say, "but I own it," but who cares when you still owe the bank more than you can sell it for?

For many people ending up after 4 years with a 160,000km on a car they are still making payments on isn't that attractive.

For others, the idea is to buy a car you can afford to own.  If, after 4 years, you owe more than the car is worth, then perhaps you need to consider what you can actually afford.  On second thought, don't:  this foolishness is what keeps the banks and finance companies happy, people over extending their credit, living on the edge....

[Cord]

For others, the idea is to buy a car you can afford to own.  If, after 4 years, you owe more than the car is worth, then perhaps you need to consider what you can actually afford. 

And others, like a friend of mine, believe that if you have to finance anything then you can't afford it. Of course, the reality is that if people could only buy cars with the cash in their bank accounts that the car industry wouldn't exist because virtually no one can do it.