2019 Honda Clarity - Price Drop?

I bought used. Allowed me to get (most of) the tax credit up front. Mine was also CPO, so I have some additional warrenty.

 

True enough. Used Clarity in Texas also doesn't qualify for $2,500 state TCEQ rebate either.

 

Honda does not offer the federal tax credit back to leasees in most states, which was the case for me. - https://insideevs.com/honda-offers-6500-lease-credit-clarity-phev-zev-states/) - On top of that, I don't like leasing. I like someone else to take the initial depreciation hit, to put a reasonable down payment down, and to never be upside down on my loan. I have never sold a car before I was done paying for it, but if A) I just don't like it or B) my financial situation changes significantly, I can, and I like that peace of mind. Everyone's deal is different; I'm happy with mine. I do think I could have paid about $1000 less if I had more time, but I was in a rush because I needed to get my current car to my son. I also wanted to buy this one from a local dealer so I could get some sympathy with "you sold me this car" should some of the 1st year problems become issues for me. C'est la vie.

 

You can sell car you are leasing the same way as one you are owning (or financing through your bank).

 

Do you happen to know how Honda calculates the buyout? I can’t find that info online. My impression has been that breaking a lease (even with a buyout) can be expensive, but perhaps that is because people often don’t make a significant down payment.

https://www.nerdwallet.com/blog/loans/swap-car-lease/

 

The calculation is very simple: Multiply monthly payment with the number of months remaining in your lease period and add residual value from the lease agreement.

 

You should do a one pay on the lease instead of "breaking a lease".
The advantage of the one pay lease is lower cost over time but you have to cough up the larger payments.

The buyout after the lease depends on the lease miles contracted as well as the bank's perception of value at the end of the lease.

Mine is 42% residual value (RV) when I leased mine.
Past month, the 2018 residual has dropped to 39% (but the money factor dropped in tandem).

So when I do the math, it makes sense for me to lease the Clarity for 36 months at $282 + tax per month with $1,000 cash due at signing (DMV, registration, first month, and tax).

When the lease is done, if the car has been problem free, I will buy out the lease (42% of $34,295 = $14,400) and refinance it and own it at the end.
If the car has issues or I don't like it, I can sell it out since Honda cars retain so much more value - I will end up pocketing the positive equity.

Makes more sense to own it in CA since the battery is warranted by Honda for 10 years / 150,000 miles!

 

These deals are crazy, although the 2018 still has the 0.9% APR that the 2019 does not. So in reality the difference is smaller than that.

In terms of resale values, it depends on how long they will have these offer ($6k incentive). If it is a temporary offer, it won't have much impact long term, but if they do this for extended period, resale values will tank.

 

Is there a way to tell which dealer has that 6k incentive, or does it apply to all in the Bay Area, California?

Thanks

 

https://www.carsdirect.com/2018/honda/clarity-plug-in-hybrid

According to this and what I saw on Costco, it is the whole state CA and OR. Probably depends on the dealer. Just tell them you see this info, or go elsewhere.

 

I am not in california or oregon. Can i but it there and still qualify for my state tax rebate?

 

Thanks for the info.

 

With the Volt, resale dropped a lot, but stabilized, so if you keep it 6 years it might not be much different than 3 years.

People don't want to hear it, but the Clarity is One and Done, meaning I don't see them doing another generation, they are doing it solely to get credits and gain some market share. Volt made it two generations, only because they were getting more ZEV credits for PHEVs still, the 53 mile range gave it an extra ZEV credit, which is no longer the deal. With tax credits up and zev credits reduced it wasn't feasible. Plus, I think they wanted battery supply for their new vehicle coming out.

 

Anyone know a good socal dealership? Around Los Angeles? Looking to lease a Clarity or even buying one. I dont have costco, so I'm not sure if that $6,000 manufacturer incentive I can use, since I don't see it advertise anywhere else.

 

Guys..I just bought my clarity base today in CA Socal. I paid 29K OTD on a 2019 model. However most dealers were able to give it to me for 30K after some hard negotiations. I am pretty sure Honda is giving big incentives to clear them out.

 

I had a pretty good experience at Sierra Honda in Monrovia and ended up buying there. I had bad experiences with Pasadena Honda and Keyes Honda, both of them tried playing car salesman games and I dropped them.

 

I bought the 2019 on March 1st (day the Honda started giving the rebate) but dealer didn't tell me... I feel screwed over by them....

 

Bought another Clarity Touring today (2019). 6k under invoice, using Costco auto program. $33.4k out the door, socal.

After 7.5k tax credit, 1.5k California rebate, 1k utility rebate, it will be $23k total. Crazy deal.

Before I did the Costco program, other dealers played games and the best they offered was $3.5k more.

 

I am in Sacramento and most dealers have only a few Clarity’s.

Actually, some dealers have one or zero Clarity. Sounds like Honda is going to cut the Clarity line.