March 27, 2007

Hello Tony

I leased a 2007 Honda Civic. After 6 months it has got in a accident and sustained $13,000 damage. I was planning on buying the vehicle at the end of the lease but now I don't think I will.

Is it possible to negotiate a lower price knowing that the wholesalers will definitely offer a lot less than the buyout because it was in a accident? The buyout is about $11,000 after four years.

Assuming it has the maximum allowable km of 24000 / yr - 96,000 total what do you think a reasonable offer would be? If I do turn in the car I will make sure that I use all of the 96k up.

Also the car has a list price of $21,000 + tax freight and pdi and some extra options worth $2,900.

Keith & Kelly

Answer:

Hi Keith & Kelly,

I don't really have any idea what a reasonable offer would be for the car. It may be possible to negotiate a lower price on the buyout, but I wouldn't tell them it's worth less because it's been wrecked!

You may want to just turn it back in at the end of the lease and forget about it.

All my very best...

Tony Iorio