Better to trade in after taking purchase option?

Hi,

I currently own 2017 Mazda CX5 GT. I have two more payment left until end of the lease.

Currently about 4k miles over, I did 10k/year because I was going to purchase after the lease, but want to get rid of it.

I’m not sure which option is better, either take car as it is to different dealership and try to have dealership buy it out or talk to Mazda and I take the purchase option then try to trade ti in afterward or it doesn’t matter.

I took it to local BMW and salesman told me it would have been better if I had financed the car instead of leasing for trade in. Not sure why, but I’m trying to figure out best way to get rid of this car.

Any advice will be appreciated!

You need to do the math on what makes the most sense…

  1. What is the excess mileage charge on your current car?
  2. What is the trade-in value?
  3. What is your current lease payoff?

If the excess mileage charge is only going to be say $500 but you would have $2k in negative equity trying to trade it in, then it makes no sense to trade it, just keep it, turn it in and pay the charge, then go get something else.

The BMW salesman was just saying that if you had financed the car instead of leasing you would probably have a bit of positive equity in it by 3 years in, thus making it “easier” to trade in vs. your current lease where you’ll most likely have negative equity trying to trade it in.

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Return it to Mazda, pay the overage bill, and walk away.

Don’t shoot yourself in the foot buying it out and then trying to trade it in.

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What is the fee per mileage over the term?

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.3 per mile. Overage for OP would be 1200. @yb7488 Definitely ground the lease if you have no equity (check with carvana and vroom first though). You’d pay a lot less than the money you’d loose from trading it in.

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That is not bad when compared to the 160,000 mile overages that we have seen.