I feel this thread is no different at this point.
“But what about a [insert random car with no apparent logic]?”
Hey the TLX also has $8k+ in incentives…
This is my understanding:
If I can get a lower APR - yes, but they’re also going to write the loan factoring my NE & with my credit score, the % isn’t much less than a lease.
A lease is preferable to me because I have the burden of being out of warranty and out of pocket repairs off my shoulder, my total loan amount over the next 36 mos is lower, lower mo payments and I clean the NE when I drop the keys off. I’m willing to over pay a little for the model itself for comfort of having newer & reliable car that I can dump after 3 years, but still want it to be reasonable.
If a refinance is going on my credit either way, why would I refi on my Mazda unless it’s the best deal I can get?
Am I missing something?
The 2020s are out of stock in my area…they presented the ILX offer as an alternative to the MDX/TLX because of the mo payments. Last option is the Genesis…one dealer left that has em in stock.
Otherwise, CU it is
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Wait… There was a Genesis mentioned previously in this thread? Is there something out there that “fits the bill” here with a boatload of incentives right now?
No, they’re not going to write a loan factoring in anything except the current value of the vehicle according to them, which is highly variable depending on what they are using for valuation. A couple years ago I helped my sister get a PenFed loan on a 2007 RAV4 V6 that we paid $7k for and they valued it at $13k based on their own valuation which was like KBB private party excellent condition…so who knows.
Again, if you drop $3k or whatever negative into the cheapest lease you can find and then ‘turn the keys in’ (assuming that you don’t go over miles or have damage charges), you’ll have spent several thousand dollars more than it would have cost to just get the refi the CX5, get it fixed and maintain it to a decent standard. I don’t think talking in circles is going to help, it’s time for you to make a decision on what you want to do and work on the numbers. So far this seems like a bird shot approach, it’s all over the place.
If you’re going to lease I’d work on getting the best trade in value possible, and then trying to get that number into a good lease deal on a vehicle that you want. I’m very confused about the prior post where an ILX is $342/mo “all in” and then a Fusion is $7k negative equity ($194+tax+rent charge per month). You gotta dumb this down for us with complete sets of numbers 
What’s your search radius? In Michigan/Ohio region dealers are flooded with 2020 TLX’s. I would go out of state anyway to avoid the dealer fees. Or just talk to @mani_is_kool so that we can be done with this and move on
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Keep in mind that if you refi the Mazda, you’re dealing the negative equity of the Mazda but the bulk of the depreciation has already occurred.
If you roll the negative equity, you’re paying for all the negative equity of the Mazda AND all the depreciation on a brand new vehicle.
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Have you shopped refinance rates at all? These are the current rates from Lightstream (Not endorsing or suggesting, but they are Bankrates top choice and they had the rates easily available without filling tons of crap out). According to Bankrate a minimum 660 score is required, which will most likely mean a rate at the higher end of the range. If you are not doing auto pay you need to add 0.50% to the rate as well.
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I’d close what’s become a very redundant thread at this point but those of you who are very active in it can make that decision.
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I second this.
I am also out. I have shared my feedback with OP.
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Well I appreciate everyone’s advice. I’ll have to think on it. I’ll report back when I’ve made a decision.
Other’s have already answered it, but until you actually get approved on a loan, we don’t really know what you’re new rate will be. But your current rate is 8.5% and you said your credit score has improved since then, so it’s very possible you’d have a lower rate. After you get a pre-approval from your CU, bring the numbers back here and we can help advise.
I understand the desire for a warranty, but you have to weigh that against the higher depreciation of the new car. Either way, you’re paying the burden of the negative equity over the next few years, one route leaves you with nothing, the other a 2018 CX-5 fully paid off, even if it is out of warranty (but at least it’s a decently reliable vehicle). And by the way, you can still go this route and lease something else in half a year or a year, so I still don’t see a reason not to refi. If you just want a new car, then you just want a new car, but it feels like you’re looking to convince yourself it’s the more prudent financial direction, I’m not convinced it is, but it’s your choice, your money and your car, so the decision is of course, yours.
I don’t really understand this comment. One additional credit run over the next half year or year isn’t really going to hurt you. Not sure what you mean about being the best deal you can get. You already own the CX-5. So I assume you’re talking about best deal on the finance rate. See above comment about getting pre-approved on the rate and going from there.
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The one I visited today pre-approved me between 5.84% and 13.42% for 72 mos. I haven’t allowed anyone to hard pull my credit because I don’t want it to further impact my score.
Good to know. Thanks for clearing this up.
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But that’s 72-mo on a ‘used’ vehicle. 72 is considered an extended term on a new car, let alone a used car loan. How about 36 or 48 mo? You’d still have a lower payment that would free up cash.
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1 or 900,000 auto inquiries in a short period of time are scored as one by FICO, specifically to accommodate rate shopping.
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Well, I pulled the trigger.
After talking to mulitiple advisors and researching loans online, the best interest rate that came back was 5.44% and 110% LTV and they weren’t even sure the appraisal would approve me for the $ I needed based on my car’s value. I was also risking being in a worse NE situation after 1 year.
Two CU loan advisors actually recommended I go the lease route, and I ended up signing on a 2021 Mazda CX-30 for $475/mo (33/10k) - first mo included $0 DAS.
As aggressive as I was, I do think there was still room left in the deal…they could’ve nixed the EFF & delivery service fee for instance. I may have jumped the gun, but tbh I was tapped out from negotiating with dealerships, noticed how much my NE worsened since Aug, and decided to just cut my losses & move on. All my counter-negs were coming back in the upper $400s/mid-500s for less LTV, even with the high-incentive options. I felt a lot of them took advantage of my NE and lowballed me on my trade.
The Mazda worked due to the lower MSRP/higher RV ratio, negotiated cap, MF & what they were willing to give me on my trade.
After all I learned, IMO, I think the best Plan A in a NE situation is to pay for it out of pocket & sell the car for the remaining…actually the best Plan A is to never have NE! This was 1000% preventable on my part if I would have educated myself earlier.
Regardless, I’m at peace with my decision. My overall loan over the next 36 mos is less. If I overpaid on the deal a little for some peace of mind, time & convenience, I can live with that. Now I can focus on increasing my annual income vs worrying about $ needed for a further depreciating vehicle.
It was overall a great learning experience and I hope to have a more hackr-worthy deal on here in the future.
Thanks again to everyone’s advice. I def feel better prepared for future deals ; )
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What was the deal on the cx30 prior to the trade?
$291.58 before gap 
That was before running my credit & everything
Wow, time really is a flat circle 
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lol…touche. I should have taken the $400 when I had the chance. I thought this deal was bad until I talked to other dealers.
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What were the important numbers? Pre-incentive discount, incentives, marked up mf, etc? Did you do gap through toyota or did you do it through your insurance/credit union?
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