Honda No Longer Wants Leased Cars Returned to Random Dealers
Amidst chip shortage and production delays, Honda wants to ensure their dealerships have first access to lease returns over other dealers.
The microchip shortage is causing more turmoil for large automotive manufacturers than just halted production. Given the lack of production of new vehicles, many dealerships across all brands are left without any new vehicle inventory. Therefore, many dealerships are doing what they can to keep sales flowing with used vehicles. Thankfully, leases on vehicles from one to two years ago ending every day. This means there’s a relatively healthy flow of decently maintained vehicles ready to be sold as CPO vehicles. That is unless lessees take the car elsewhere to jump on a deal with another brand. Honda is now saying enough is enough in that front.
According to Car Scoops, Honda officially made the decision to no longer allow unaffiliated dealerships to take their lease returns. This means at the end of a vehicle’s lease period; lessees may only return the car to official Honda or Acura dealerships. How can Honda make sure this is the case? It’s quite simple, really.
No more external lease buyouts.
When a vehicle’s lease term comes to an end, you are given the option to buy the vehicle out and keep it. This means you can independently finance the vehicle through your own bank or credit union or pay with cash if you’ve got it. However, many lessees want to get rid of their vehicle at the end of a lease term and step into something new once again. If lessees plan on returning to a Honda or Acura vehicle, this won’t be a problem. However, if one looks to venture to a different brand, they’re out of luck. Given that Honda’s leases (in the US) are controlled by American Honda Finance Corporation, a bank, they can control who can buy out the remainder of the lease.
Do you know who isn’t allowed to? You guessed it! Anyone that isn’t a Honda or Acura dealer. That is unless the lessee decides to buy the car.
There is a loophole, though.
Of course, nothing stops a lessee from getting financing to buy the car and then immediately trading in the car they now own for whatever else it is that they wanted. However, this is an additional step that many will tend to avoid due to rapid credit report checks, required down payments, due-at-signing amounts, and a host of other options. What a pain!
All of this is an effort to keep Honda vehicles on Honda lots. We understand the idea; it’s just a bit inconvenient. Many Honda lessees are likely to return to Honda, sure. However, we fill just being told we couldn’t do something may push us to want to try something new. You know, out of spite. Regardless, beware of this newly changed scenario if you currently lease a Honda. If you’re looking for something more high-end, our best recommendation is to step into an Acura. Otherwise, you’re in a bit of a nightmare situation.
Desperate times call for desperate measures, we suppose.
Photos: Honda
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