Buyout of Mazda Questions

Ask the Hackrs
,
1

Trying to help my daughter through this. She’s at the end of a 3 yr lease on a Mazda CX-5 and she’s choosing to buy it. The affect COVID has had on used car values makes it a pretty good buy. She took it back to the dealer and the number they put on it as trade on another lease or buy is well above the buyout total due number. Obviously they tried to sell her but she likes the car, plus it’s a good investment, so she’s keeping it for now. Anyway…

The lease was Mazda, through Chase. Chase gave her a buyout number through them. She also got a number to do it through the dealer which was ~$1k less so she’s buying through the dealer obviously. They also approved her up with better financing than Chase offered.

My questions are; the dealer is requiring her to have them perform a brake and frame certification for $150 (which takes 2 hours!?!). What the heck is this check for and why? Is this a standard thing? Sounds like a money grab to me. Chase didn’t require the same and I’ve never heard of a bank requiring it. She isn’t getting any extended warranty plan either.

Anything else we might watch for or think about?

Thanks!

2

Let’s be honest with ourselves, depreciating assets aren’t that. I’m assuming the brakes frame thing is a state thing, what state is this in? So the finance rate is 3% something?

3

Well, that’s true about investment but the buyout is almost $3k under the trade appraisal and I’ve confirmed that by checking on what the same car is bringing at auction. It’s worth more wholesale than the buyout.

We’re in PA and I believe the interest rate is around 3% yes.