Rick Case Honda, Euclid OH Informative - Inflated End of Lease Price

Review by cbronson on 2007-06-12
CLEVELAND, OHIO -- On 6/9/07 my family sat in the dealer for 3+ hours. We were to buy out a 03 vehicle from its lease. i suspect we were being ignored as we weren't really giving them a sale but causing paper work. Prompted by a friend that does financing in the automotive industry; he mentioned i should make sure i have my lease buy out price on hand to make sure they werent adding anything. i called the leasing company and received a buy out price. Some how Rick Case said they would contact Honda that day to also get the buyout price. Amazing: Honda Financing comes up around 875$ lower. (yes the verions of the price from Honda Finance included sales tax) When i asked to get honda on the phone they insisted i wouldent reach any one... How did they? We were then told that the extra amount was standard and used to cover processing fee's; that we wouldn't want to be filling out all that paperwork. I'm sorry, we were there three hours; we could have had it finished by then. We were more fortunate than most: we ended up trying to buy the vehicle before its lease term was finished. This allowed us to insist the dealer put the plates back on our vehicle so that we could leave and pay Honda Finance directly. Most aren't this fortunate and either 1) Pay Rick Case everything they are making up or 2) get stuck with turning in the vehicle and getting stung for what im sure would not be a pleasant audit of the vehicle condition. Google Rick Case Honda, it turns up quite a few 'nice' reviews. It's amazing how arrogant a finance person can be when they are trying to take 875$ of your money with no justification at all.
Comments:6 Replies - Latest reply on 2007-07-19
Posted by rhondam718732 on 2007-06-12:
Why did you decide to go to the dealership for the buyout? They are merely a 3rd party that can only mess things up and prolong it. Whomever gave you that advice should be shot. You always contact your finance company, get the buyout amount and send the money (certified check!) with a return receipt requesting your final documents and title, etc.
Posted by cbronson on 2007-06-13:
we had only gone to the dealer to avoid any delay in the mail. that was all. but good advise.
Posted by denoslack on 2007-06-21:
First of all, why would you possibly buy your lease out?? That's the worst possible thing you can do as a consumer; it puts you in a substantial negative-equity position. Just wait until you try to trade that car in...

Further, an additional charge is standard through a dealership; it covers a variety of charges that the dealership incurs during the process of the transaction such as documentation fees (it's the law, pal), paying the finance manager to process the paperwork (nothings' free, even though you may want it to be), lease/early termination fees and others.

These fees are not incurred when dealing directly with the lender/manufacturer. I don't have any affiliation with Rick Case, but I am a finance manager and it irks me when people spout off with complaints when they frankly have no idea what they are talking about.

Oh, and by the way:

Regarding your concern over an "(un)pleasant audit"; you need not worry: All manufacturers and/or lenders use certified, independent third-party inspection companies for lease turn-in inspections. In addition, if I recall correctly, Honda Financial gives up to $1,500 worth of grace for damages incurred on all lease turn-ins.

Just food for thought.

Posted by cbronson on 2007-06-22:
denoslack: wernt looking for equity in the car; were were looking for a car we'd own. The car has very low mileage and is in excelent condition.

To your fee's point: Dealer wanted $8662 at the end of the day. After talking to Honda Financing we owed $7530. Visit http://www.consumerreports.org/content/news/wheeling/worksheets/fees_fair.html and tell me that you can expect more than 1000$ in dealer ship fees. i think you can read the chart.
Posted by denoslack on 2007-06-28:
I'm sorry that you feel that the Consumer Reports page is gospel. I have never seen a documentation fee under $100. From my time in the business, I have noted that the more expensive or unique the vehicle is, the more the documentation fee is. A minimum documentation fee is the law, however there is no ceiling to said fee. If it is any consolation to you, when I bought my Lotus in 2005 I was charged over $1200 for a doc fee.

As we say in the business, "It is what it is".
Posted by getitdone on 2007-07-19:
your still an idiot for going back to the dealer

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