Honda, and its Acura luxury marque, have joined several automakers in restricting customers from turning their leases over to anyone but a Honda dealership. General Motors made a similar move late last month. Nissan and its Infiniti luxury brand did the same in May.
The practice is spreading but is hardly new. Among others, Ford and Lincoln have refused to accept third-party lease returns for many years.
Most automotive leases have a built-in buyout price – a price the customer can pay to exit the lease and own the car. In recent months, used car prices have climbed to record levels. This has left some leaseholders driving cars that can be purchased for a set price, then sold immediately for a higher price.
Many used-car dealers have made a profitable practice of buying cars near the end of their leases, then reselling them. Used car giants like Carvana and Vroom are among the most common users of the strategy, but any dealership can do it.
Until now, that is. Honda’s move means that lessees can only return their car to a Honda or Acura dealership. The goal, says Petar Vucurevic, a vice president at Honda’s financing arm, is “to make sure our dealers have access to quality pre-owned Honda and Acura vehicles to satisfy the needs of new and returning customers.”
The move prevents customers from trading in their leased Honda or Acura on a new vehicle from another brand. Customers can still buy out the lease themselves and trade in their car. The move simply prevents third-party dealerships from paying a customer’s buyout price for them.
Honda says it will review the policy at the end of the year. Automotive News reports that rival Toyota is considering a similar measure.
