Buying My Lease - Something seems suspicious

[bdaoust]

2015 CX-5 Grand Touring - Should I Buyout My Lease

I have a 2015 Grand Touring CX-5 with Tech Package with 41,000 miles.

My buyout is $17,308 and wondering if I should just buy it? I like the car a lot, but my only concern is that I would not really have a warranty.

My Mazda dealer wants $2,000 for a 3 year warranty, which sounds pricey.

They are trying to get me into another lease (which not sure if I want to lease again) but the offer they made me sounds horrible:

2017 Sport CX-5 (bare bones) for $299.00 33months AFTER any rebates/incentives.

Any suggestions are appreciated.

 

[paris1]

I've never leased a car in my life, but let me ask you: what is your total cash outlay to date for lease payments and all other charges incurred in acquiring the lease?

 

[Anchorman]

I think a test drive might make up your mind.

 

[CX-5um]

I have a 2015 Grand Touring CX-5 with Tech Package with 41,000 miles.

My buyout is $17,308 and wondering if I should just buy it? I like the car a lot, but my only concern is that I would not really have a warranty.

My Mazda dealer wants $2,000 for a 3 year warranty, which sounds pricey.

They are trying to get me into another lease (which not sure if I want to lease again) but the offer they made me sounds horrible:

2017 Sport CX-5 (bare bones) for $299.00 33months AFTER any rebates/incentives.

Any suggestions are appreciated.

Not sure if Mazda does this but I think you can request to have your car CPO certified. Ask different dealerships. Once its CPO certified you then get additional power train coverage through 100k miles.

One purchase tactic is to tell the saleman....er maybe finance folks directly that you are willing to buy the car but will do so only upon approved CPO certification.....then negotiate.....then post your results back here!

 

[Monterra]

I'd look for deals on new/leftover (there are a few 16.5s kicking around) ones and go from there..I would absolutely not spend 2k on a warranty!

 

[KB24SD]

When does the lease end ?

Just look at this way you have a 2 year old CX-5 going on 3 years. It's just going to keep depreciating the longer you keep it.

For around $19K if you were to buy out the lease and get a extended warranty. You can use that towards a new 2018 or left over 2017 model. If you have that money available remember you don't need to necessarily put that all towards a down payment.

Just my 2 cents.

 

[Danny Linguini]

I can't tell you what you should do, but I can pretty comfortably say you won't be happy going from a GT to a Sport. I'd ask what kind of deal they can do on a new GT, then see what the payments would be to buy out your 2015 (with and without that extended warranty), and then you'll have some numbers to compare.

 

[silvertom]

Lease incentives are pretty good on the 2017s these days. Plus, the money factor is .00001, so it's as good as 0% interest. As a point of comparison, I leased a 2017 FWD CX-5 Grand Select (which is mostly a GT without the lane keeping assist and radar cruise control) last week. MSRP on it was $30,680, and I got 33 months at 15k miles per year for $298/month + tax with $0 down (first payment only). Factor in your $500 loyalty rebate and a non-premium paint color, and you can do even better (my calculator suggests $278 + tax). Granted, rebates are regional (I'm in Texas), but most dealers should have $1470 or $1800 lease cash, plus additional year-end rebates & incentives until the new programs start for January. I ended up at about $3,270 below invoice, with nearly $0 rent charge and a solid 57% residual.

Bottom line: if you want a new car, you can do a lot better than $299 for a sport model. If you like your current car, then at least
a) have it appraised at CarMax or a Mazda dealer to see if it might be worth more than your buyout (in which case you can just take that positive equity and buy something else); and
b) shop around for similar used models to see if you can get one with fewer miles or maybe more features (and/or a CPO warranty) for less money. In that case, you'd just walk away from your lease and get a loan for the other car.

The main benefit I see to buying your car at the end of the lease is just in knowing where it's been, what it's been doing, and how it's been maintained for the last 3 years. If you know the car is in good shape and there's no reason to be worried about any significant problems in the next few years, then you don't really need an extended warranty. I can't imagine it will need more than basic maintenance up to 100k or so if you take decent care of it.

 

[KB24SD]

I'm sorry but my experience with buying & selling cars in the past which were 4 different Toyota's is that CARMAX is the worst place to go have a car appraised.

They are known for low balling and their slogan of "no haggle" when comes to buying or selling a car is just a horrible and a very deceitful tactic.They literally look for any way possible to bring the value of a car down to make their bottom line profits go up.

 

[7eregrine]

I can't tell you what you should do, but I can pretty comfortably say you won't be happy going from a GT to a Sport. I'd ask what kind of deal they can do on a new GT, then see what the payments would be to buy out your 2015 (with and without that extended warranty), and then you'll have some numbers to compare.

+1. Surprised this wasn't first comment.

 

[bdaoust]

Not sure if Mazda does this but I think you can request to have your car CPO certified. Ask different dealerships. Once its CPO certified you then get additional power train coverage through 100k miles.

One purchase tactic is to tell the saleman....er maybe finance folks directly that you are willing to buy the car but will do so only upon approved CPO certification.....then negotiate.....then post your results back here!

I don't think the dealer wants me to buy. They are making it very difficult. For instance, I already got financing through my credit union, but they are telling me that they still need to submit the financing through them because it 'protects us'. What the heck does that mean?

 

[bdaoust]

So how do I calculate what a lease payment should be ? After all rebates and incentives ?

 

[bdaoust]

I'm looking to buy my lease and have been pre-approved via my credit union.

When I told that to my dealer, he said the rates are going up next week - here is the list. I told him that didn't matter, I'm grandfather in at the rate I got for a couple of weeks. He said 'we can try - but I can't guarantee that interest rate.'

I called Greylock to confirm and they said yes, just get us the bill of sale, we will cut the check for you to bring to the dealer.

After going back to my dealer, he said that the financing part has to go through them per their policy. I told him I don't want another application to be ran due to it will impact my credit score. He said it won't.

I also pointed out that Mazda sent me the paperwork and I could technically just send them the check.

Something doesn't seem right with the dealer. Thoughts?

-Brian

 

[7eregrine]

This dealer sounds awful.
I do agree there is no "grandfathering in" of interest rates. You qualify for what the rate is today UNLESS you have something set up prior to rates going up like you do with Greylock.
Why does the 'financing part' need to go through Mazda? I want clarification on what that means. So you can't use Greylock then?

 

[bdaoust]

I can use Greylock and in fact the dealer has a relationship with Greylock. They said thought it's there policy that I finance through the dealer. So basically, I can't just bring them a check for the price of the car.

 

[7eregrine]

Well if I'm not mistaken you don't HAVE to go through this dealer. Is there another one near you?

 

[banjos-n-beer]

can't you just contact mazda finance, or whomever set up the lease financials? i doubt you even need to bother with your dealer unless you wanna get rid of it.

 

[banjos-n-beer]

a member on an Infiniti forum is thinking about buying out his lease. here is a reply in the thread:

"Leasing is two transactions. As a lessor, you are negotiating the upfront sales price with the dealer (cap cost in lease terms). This is the value the dealer receives from the lease (gross profit equals dealer purchase price less this sales price--omitting other incentives for simplicity). From there on out, you are working with Infiniti Finance--not the dealer. Infiniti finance sets the leasing fees, residual values, and money factors. Dealers can mark up the lease money factor just like a bank loan rate--so check around.

This all gets to why the dealer is not really interested in your lease return. As it would have to negotiate a price from Infiniti finance before be able to determine a selling price to you that would be lower than the lease residual value."

 

[bdaoust]

a member on an Infiniti forum is thinking about buying out his lease. here is a reply in the thread:

"Leasing is two transactions. As a lessor, you are negotiating the upfront sales price with the dealer (cap cost in lease terms). This is the value the dealer receives from the lease (gross profit equals dealer purchase price less this sales price--omitting other incentives for simplicity). From there on out, you are working with Infiniti Finance--not the dealer. Infiniti finance sets the leasing fees, residual values, and money factors. Dealers can mark up the lease money factor just like a bank loan rate--so check around.

This all gets to why the dealer is not really interested in your lease return. As it would have to negotiate a price from Infiniti finance before be able to determine a selling price to you that would be lower than the lease residual value."

Is there any negotiating the buyout price that was determined at the time of the lease? Mazda told me no. And I wouldn't think the dealer would because they want me in a new lease, which is clearly obvious.

 

[bdaoust]

I could, but then I would have to get the title, new plates, stamp of registration, title from Mazda, etc. But at this point, I might seriously think of that direction.