I got into a CX-5 GT through one of the brokers here just before the pandemic started, monthly was 283. The way I see it, these are my options:
Contact the bank and try to extend my lease, hoping that the market cools down next year. Has anyone does this before? Would it change my monthly and my RV? I have also heard that since I leased my Mazda, they have switched finance companies. My lease is with Chase, but I have read on here that Mada now uses Toyota Financial. Would this affect a lease extension?
Buy out the car - My RV is around 19K under the current lease. I’ve seen other 2020 CX-5s with similar mileage (~17K) listed at 29-32K on various sites. From here, I suppose I could sell the car myself, I suppose netting myself around 10K, maybe less if the market cools. OR just keep it and use it - though I’m trying to avoid that kind of large expenditure at the moment since I just bought a house.
Equityhacker - I got a quote for ~24K, which I assume means about 5K in my pocket after they pay off the RV? Or am I not understanding how that works? Carvana also quoted me ~21K for the car. Is the advantage to these just that I can avoid the time, hassle, and up front expense of buying out the lease myself and selling the car individually? If I were to go any of these routes I would need to get into a new lease before selling this car since this is our only vehicle at the moment.
Trying to find a balance between cost-effectiveness and time/effort-effectiveness. Most cost effective to me would seem to be buying out at lease end and selling myself. I can’t figure out if the easiest is to extend the lease or to just go the equityhacker route.
If you like the CX-5 and don’t have a plan for a new car, extend the lease. It’s unlikely things will be worse in late 2023 than they are now. May not be better though.
I have a Mazda6 through Chase that I extended six months. If you leased through Chase, your lease stays with Chase. You can extend for six months. Payments will continue to go to reduce buyout price (and RV will change with the extension).
If you don’t have an extended warranty and don’t want to buy one, your risk is a window where you don’t have coverage. I barely drive the Mazda6 so I could live with that. You could buy a warranty third party too.
Yes, you’re sitting on potential equity. But unless you have a strategy for effectively maximizing that equity, you’ll just take it and turn it around into a car that costs too much.
If you do have a car you like, maybe now is a good time to see if you can save ordering one. You’d have a window with the extension to wait out a delivery. And can still turn the CX-5 back in (extension is month to month for a maximum of six months) when you want if the used car market resets.
Extended warranty is a great thought, thanks for that.
With regard to the extension, will the RV just be reduced by whatever additional payments under the extension are? 6 months at 283 is just under 1700. Will RV at the end of extension be just the current RV minus 1700 or will they use the extension as an opportunity to recalculate the RV based on current market conditions?
It seems like maximizing whatever equity I have is impossible in this market. Current pricing on a similarly equipped CX5 now is $120 more than I’m paying now. Painful to consider…
RV will not be recalculated based on current market. It’ll just reduce based on additional payments.
There are definitely people here who are smart enough to be able to tap into the equity and use it to get a good deal on a new car (to the extent one exists now). I’m just not one of them so I can’t help there.
Yeah this is the operative phrase. I’ve been browsing the broker listings for the last few weeks and haven’t seen anything even close to 300/month regardless of brand.
I think extending the lease makes the most sense here, and I’m assuming I don’t need to have that conversation with the bank until closer to the end of the lease. Gives me a few more months to see how the market is trending. Thanks for your input!
