Need Help with Lease

[mazda_roads]

Hey folks. 3 years ago I leased the RX8. I love my car and I am 2 months from the end of my lease. I got a call from Mazda Financial Services a couple of weeks ago and they gave me 3 options.

The first is to buy back my car for $17,000, the second was to extend my lease by 6 months with the same payments, the final was to return the car and get an end of lease inspection.

I love my Mazda and I have taken great care of it. I went online to find out how much the RX8 is worth. It has a trade in value of $14,000 which is obviously lower than the retail value on my same make and model.

My mind wants to return the vehicle back to the dealer but I really want to keep this car. Does anyone have any suggestions on what to do with Financial Services to lower the residual value or buyout value?

 

[nate0123]

Moved to RX8 section.

 

[solidtrance]

Thanks Nate,

Hopefully someone else will chime in since I don't know anything about this process.

 

[nate0123]

Let me take a stab.

In your lease terms - did you agree to an amount for a purchase option at the end of the lease? The dealership isn't going to want to reduce that amount (at least not significantly) since they still need to recoup the rest of the new car value. You essentially paid for the first three years of depreciation on the car (plus finance charges and possibly dealer fees). They still need to get the rest of the value of the car. They're not going to sell it for significantly less.

That's not to say you can't make a reasonable offer and see what they say. You could also secure your own financing and make a "cash" buyout offer.

 

[Dream20b]

Assuming the car is a 2007... KBB says retail on the Base model is around $17,400. Seems like you would be paying right around there. If you had a better model, buy the car and never look back.

From a fellow RX-8 owner, I say keep the car.

If they said (or it was written anywhere in the contract, READ: VERY LIKELY) $17,000 and you signed into a contract, you can't do much about the price.

I agree you should Make them an offer. Be sure to point out that they'll probably sit on the car for a while before they sell it and will have to pay inventory fees on it, as this can increase your chances of saving money.

 

[fuztupnz]

Dream20b is right. Most leases have the buyout determined at signing. It it is an 07, it's not a bad price. You may be able to find another for a few grand cheaper if you're willing to shop around and look out of town. That being said, if you don't have any problems with it, buy it out. Even if you can find another cheaper, you don't know it's history as well as yours. Look at outside financing and make a cash offer. It can't hurt and they may go for it so they don't have another used 8 on the lot. Good luck!

 

[mazda_roads]

End of Car Lease Help

Let me take a stab.

In your lease terms - did you agree to an amount for a purchase option at the end of the lease? The dealership isn't going to want to reduce that amount (at least not significantly) since they still need to recoup the rest of the new car value. You essentially paid for the first three years of depreciation on the car (plus finance charges and possibly dealer fees). They still need to get the rest of the value of the car. They're not going to sell it for significantly less.

That's not to say you can't make a reasonable offer and see what they say. You could also secure your own financing and make a "cash" buyout offer.

Yes I did agree to a buyout price 3 years ago. That price is higher than the market value today. I do not think the finance company figured in that unemployment would be 10% or the economy would have been in such a bad place. The dealership told me it is not their responsibility to help me with my lease buyout price. They want me to lease a new car. They are digging into their position on the buyout price telling me there is absolutely no room.

From a fellow RX-8 owner, I say keep the car. from Dream20b.

Two years ago I would have paid out the price and never looked back. My 401-k is cut in half and my expenses seem higher than before the market crash. I am not going to pay unnecessary expenses.

fuztupnz you are right but I found this company online today called Get Your Car Back. I called the company and left a message. 15 minutes a lady named Debbie called me back and said took my information and suggested to run a report. She gave me actual sales for the south east auctions over the past 3 months. Let's say I am about 20% over the auction prices for a similar car.

I am certain that the company will lower the price. I am going to try to buy my car back for less than the buyout price. I will let you know what happens.

 

[Dream20b]

good luck!

 

[mazda_roads]

lease end help

good luck!

Thank you. I will let yo uknow what happens shortly.

 

[ender164]

another thing to keep in the front of the mind, with a lease, is the post lease inspection. They always find some reason to inflate the buyout price with fines and fees should you decide to purchase it.
Really the only way around that is to lease another vehicle wich many times leads to them dropping the fees in order to secure another sale or to buy the car outright.

Also keep in mind that car companies are in a tough spot as well with the economy the way that it is. making a fair offer after the inspection could ease both of your problems but you having been sighned to a contract makes there stand a lot more stable then yours.

Leases are never a good way to "buy" a car. they are intention is to supply reliable transportation by replacing the car before costly maint starts to crop up every 2-3 years while maintaing the most valuable years of the car so they can re-sell it with much of the value still intact.

If your looking to save money, i would not advise buying the car at this juncture, but resighning another lease untill things settle down financially.

Should you choose to re-sighn, do not choose a car that you will plan on keeping at the end of the lease.

My course of action was to just return the car and pay the fines and be on my way. The dealer i was with was not willing to disscuss and they lost the sale simply by being non-negotiable.
I just went and bought a toyota instead, the non lease version. However, that was before the economy took a nose dive.