Lease take over questions on 2024 CX-50 Meridian

[Mukesh]

I am planning to do a lease take over on 2024 CX-50 Meridian. 10 months old and 12.5 K miles driven.

Is there anything i should be aware off or concerned about as i have no idea how lease take over works?! is Lease take over is a good idea ?

Is there anything i should negotiate with the seller ?!

I am considering this because it comes within my monthly payment budget and used cars prices are so crazy right now.

 

[sm1ke]

Please provide as many details as possible to allow others to provide more targeted advice. For example, what are the terms of the lease? How much is the payment? Mileage allowance? Etc.

Maybe @Ninja_Matt can assist here..

 

[Mukesh]

Payments: $254 + tax biweekly
Lease starting date: September 2023
Duration: 48 months
Lease term Rate: 5.5%
Residual value: $28459.75
Lease transfer fee: $699 ( as per the owner, i should be the one paying)
Mileage allowance = 20K per year.

The owner has put 5000 down payment on it. So the owner paid so far 10,334 so far for the vehicle.

So i will taking over lease for 38 month and will be paying 533.4 * 38 month = 20,270 with the buy out option ($28459.75).

also, to note there is a 2 chip on windshield with minor crack around it. Owner told me how wont be doing anything and its my responsibility to repair or change it.

Owner paid so far = 10,334
I will be paying for 38 months = 20,270
Residual value = 28,459.75

Total cost for vehicle = 59,059.75
Total cost for me to own = 48,725.75 (Excluding lease transfer fee and windshield repair/replace price)

This is my maths, please correct me if i am wrong.

 

[Silly Wabbit]

2024 Cx-50 Meridian starts at $40k. How you get $59k? Are you set on leasing only or you're interested in owning it?

 

[Mukesh]

2024 Cx-50 Meridian starts at $40k. How you get $59k? Are you set on leasing only or you're interested in owning it?

I am not sure which region you are in but in Alberta the MSRP in 50K. I came up with the number with all the taxes and interest we are paying for leasing.

For now, I am looking only for leasing only.

 

[Ninja_Matt]

Payments: $254 + tax biweekly
Lease starting date: September 2023
Duration: 48 months
Lease term Rate: 5.5%
Residual value: $28459.75
Lease transfer fee: $699 ( as per the owner, i should be the one paying)
Mileage allowance = 20K per year.

The owner has put 5000 down payment on it. So the owner paid so far 10,334 so far for the vehicle.

So i will taking over lease for 38 month and will be paying 533.4 * 38 month = 20,270 with the buy out option ($28459.75).

also, to note there is a 2 chip on windshield with minor crack around it. Owner told me how wont be doing anything and its my responsibility to repair or change it.

Owner paid so far = 10,334
I will be paying for 38 months = 20,270
Residual value = 28,459.75

Total cost for vehicle = 59,059.75
Total cost for me to own = 48,725.75 (Excluding lease transfer fee and windshield repair/replace price)

This is my maths, please correct me if i am wrong.

Biweekly payments? Is this in the US or another country? $533 seems high but also not sure on your location... could you provide your zip code, or city/county so I can get an idea of where you are located and what your market may be like?

We specialize in new leases so not AS familiar with lease transfers, but this is a great resource if you are within the US and assumedly dealing with Mazda Financial (Toyota Financial) - Mazda Financial Services (04-01-20 and after) lease transfer information

 

[Ninja_Matt]

I am not sure which region you are in but in Alberta the MSRP in 50K. I came up with the number with all the taxes and interest we are paying for leasing.

For now, I am looking only for leasing only.

Disregard my last comment, I'm not familiar with Canadian leases or how their banks work - in terms of US market, this doesn't sound like a great deal to be honest but its an apples to oranges comparison.

 

[Silly Wabbit]

If you're only leasing it you really only benefit from the $5k down pay. However, you have to pay for the transfer fee $699 + windshield replacement which can be $1k+. Are you really saving that much for a second hand "new" car?

 

[sm1ke]

I am not sure which region you are in but in Alberta the MSRP in 50K. I came up with the number with all the taxes and interest we are paying for leasing.

For now, I am looking only for leasing only.

You wrote "12k miles driven" in your OP, which is probably why people are assuming you're based in the US. Can you confirm that the numbers you provided are in CDN and not USD?

 

[gphin]

I've taken over two leases and got out of a lease in recent years....all through Swapalease.
Questions: Are you close enough to inspect the vehicle yourself? If not, how are you confirming the condition for nicks, dings, wheel rash, etc.? Did seller confirm in writing no accidents? How are you physically obtaining the vehicle...are you picking up or having delivered? Why isn't the seller replacing the windshield through their insurance prior to transferring?
When taking over a lease from a "seller", everything is negotiable. There is no reason you need to pay for a damaged windshield. For my most recent lease takeover, I negotiated an $1100 cash payment from the seller at pickup to help pay for the lease takeover fee and lower my actual monthly payment for the remaining months. Having to pay to replace a windshield could make this a no deal for me.

 

[Mukesh]

If you're only leasing it you really only benefit from the $5k down pay. However, you have to pay for the transfer fee $699 + windshield replacement which can be $1k+. Are you really saving that much for a second hand "new" car?

Yea that's what i thought as well but the current owner feels like he is already selling it at loss because 5k down payment and 5.5K as monthly payment. So far he has spent 10.5K for 10 months in that car. So he doesn't want to spend more on it.

 

[Mukesh]

You wrote "12k miles driven" in your OP, which is probably why people are assuming you're based in the US. Can you confirm that the numbers you provided are in CDN and not USD?

Sorry my bad. The above number are in Canadian dollars. I live in Calgary.

 

[Mukesh]

I've taken over two leases and got out of a lease in recent years....all through Swapalease.
Questions: Are you close enough to inspect the vehicle yourself? If not, how are you confirming the condition for nicks, dings, wheel rash, etc.? Did seller confirm in writing no accidents? How are you physically obtaining the vehicle...are you picking up or having delivered? Why isn't the seller replacing the windshield through their insurance prior to transferring?
When taking over a lease from a "seller", everything is negotiable. There is no reason you need to pay for a damaged windshield. For my most recent lease takeover, I negotiated an $1100 cash payment from the seller at pickup to help pay for the lease takeover fee and lower my actual monthly payment for the remaining months. Having to pay to replace a windshield could make this a no deal for me.

He brought the vehicle to my place and i did test drive it. He verbally said no accidents but didn't do anything in writing. My plan is to do a pre-purchase inspection and run a CarFax report on it.

We will meet up on the dealership and once everything is finalized i will take the car from dealership. That's the plan for now.

He is not willing to spend anymore on the vehicle because he feels like he is selling the vehicle already on loss since he has put 5K down payment and 5.5K on monthly payment. So on total he has spent around 10.5k for 10 months on the vehicle.

I didn't really ask about the windshield replacement with insurance i ll ask about it .. Do you think its still fair for me to ask him to pay for the windshield replacement and lease transfer fee ?!! I am kind a new to this and felt bad about pushing too much on him. Please advice.

 

[theblooms]

This is a rip off, 100%.

For that kind of money, as others have said, just buy a new one.

 

[sm1ke]

Yea that's what i thought as well but the current owner feels like he is already selling it at loss because 5k down payment and 5.5K as monthly payment. So far he has spent 10.5K for 10 months in that car. So he doesn't want to spend more on it.

Just keep in mind that you have no obligation to cater to what the seller "feels like". Your only concern should be what you're willing to pay, and what you think the car is worth to you. It doesn't matter how much the seller has put into the car and whether he wants to spend more on it or not, all that matters is whether you're willing to pay what he wants, or negotiate for a better deal.

Having lived in Calgary for a few years, from what I remember, front windshield claims from road hazards do affect your premium. The more claims you have, the higher your premium is. So in that sense, I can understand why the seller may not want to fix the windshield, as his premium might increase and "follow" him to his next policy/vehicle.

In your case, if you accept the car without fixing the windshield, you likely wouldn't be able to open a claim because the cracked windshield did not happen during your ownership. If you don't fix the windshield, you may want to look into the lease details to find out if it needs to be fixed upon lease takeover or lease return. In short, if the seller doesn't open a claim and repair the glass before you take over the lease, you might be on the hook for the full cost of the windshield replacement at one point or another. So factor that cost into your decision as well.

 

[gphin]

One thing to consider is how long the seller has had the vehicle listed for lease swap. If it's been listed a while. then they should be more acceptable to a negotiation. It's their problem they put $5k down as the point of leasing is to get into a vehicle with minimum down payment. I never put more than $1k down when leasing. Since you are using a dealer for the transaction, have you asked the dealer what the comparable cost would be to lease a new one? I would definitely confirm the cost to replace windshield, and how long it would take to get one. Good luck and keep us posted how you make out.

 

[Mukesh]

Just keep in mind that you have no obligation to cater to what the seller "feels like". Your only concern should be what you're willing to pay, and what you think the car is worth to you. It doesn't matter how much the seller has put into the car and whether he wants to spend more on it or not, all that matters is whether you're willing to pay what he wants, or negotiate for a better deal.

Having lived in Calgary for a few years, from what I remember, front windshield claims from road hazards do affect your premium. The more claims you have, the higher your premium is. So in that sense, I can understand why the seller may not want to fix the windshield, as his premium might increase and "follow" him to his next policy/vehicle.

In your case, if you accept the car without fixing the windshield, you likely wouldn't be able to open a claim because the cracked windshield did not happen during your ownership. If you don't fix the windshield, you may want to look into the lease details to find out if it needs to be fixed upon lease takeover or lease return. In short, if the seller doesn't open a claim and repair the glass before you take over the lease, you might be on the hook for the full cost of the windshield replacement at one point or another. So factor that cost into your decision as well.

Oh it make sense now the reason he doesn't want to do anything on the car even helping with the insurance.

More over in his post he said the odo meter reading is 12.5KM but in 10 Months he has already put 23K which very high for 10 months .. Should i worry about that like it will affect in long term to overuse the vehicle this hard?!

 

[Mukesh]

One thing to consider is how long the seller has had the vehicle listed for lease swap. If it's been listed a while. then they should be more acceptable to a negotiation. It's their problem they put $5k down as the point of leasing is to get into a vehicle with minimum down payment. I never put more than $1k down when leasing. Since you are using a dealer for the transaction, have you asked the dealer what the comparable cost would be to lease a new one? I would definitely confirm the cost to replace windshield, and how long it would take to get one. Good luck and keep us posted how you make out.

He has the post for 4 Months but does want to come to any negotiation.. he just want to do the lease transfer as is.


I checked with the dealership for new vehicle below is the quote i got (I can negotiate and reduce may be some 10 or 15 dollars more on biweekly) and i compared it with the lease transfer amount.

Though it saves me some money i am confused is it really worth it. I highlight in red which concerns me.

@sm1ke

 

[sm1ke]

If it's been up for sale for 4 months, it's likely because he isn't willing to negotiate with other previously interested buyers. They probably looked at the deal and figured that paying a bit more by leasing new is worth it vs. trying to negotiate a better deal from this seller.

 

[gphin]

If it's been up for sale for 4 months, it's likely because he isn't willing to negotiate with other previously interested buyers. They probably looked at the deal and figured that paying a bit more by leasing new is worth it vs. trying to negotiate a better deal from this seller.

Exactly. Total car price is only a difference of $3100 over three years and you get a brand new vehicle with new tires, brakes, etc. It also bothers me that the seller never bothered to get the windshield fixed which gives you an indication how they might be taking care of this vehicle, My bottomline is this to Mukesh.....If you plan on taking care of the vehicle and purchasing at lease end, I would definitely go new. If you plan on just "renting" the vehicle for the next 38 months and turning it back in at end of lease and your budget is really tight, then used might be the way to go.