I will do my best to summarize this after the research I’ve already done so please bear with me…I’m a newbie
Current Situation - Lease is up June 16, Location St. Petersburg FL
Vehicle Description
Vehicle: 2018 MAZDA CX-5 Grand Touring Sport Utility 4D
Drive -4WD/AWD
Transmission - Automatic
VIN - JM3KFADMXJ0337438
Mileage -5,700
Color: Gray
2 Sets of Keys: Yes
I’ve contacted the bank and buyout/residual value = $20,934 @ 4.84% APR for 60 months, monthly payment = $393.51 (which is more than I want to pay for this term)
My lease payment was/is $328.55 @36 months.
My dilemma…I ultimately would like to wind up with a vehicle that’s paid off in the next five years looking at the low mileage and considering the vehicle is in excellent condition I am not sure if I should go with the buyout for this existing lease or negotiate a better deal for a 2021 vehicle via a new lease negotiation which would provide me a better residual value if I were to go and buy that lease out in 3 yrs.
If your goal is to have a paid off vehicle in 5 years then it doesn’t make any sense to go lease another new car now. In 36 mos you will be right back in the same position.
At a high level deals on new cars now are not great at all (low inventory, chip shortage, yada yada yada). And purposely targeting a car with a low RV to make it “easier” to buy out at the end also doesn’t make any sense, the lower the RV the worse the car will lease, generally speaking.
If the ultimate goal is to own the car then it rarely makes sense to lease first then buy it out.
What is the current market value for your CX-5 and how does your buyout compare to that?
Current market value is 23K - 25K, the dealer will pay out trade in value and my payment would be lower for a new 2021 GT loaded so if my mileage is low at the end of this term I should be in the same place in 3yrs but I’d be able to save to actually buyout the vehicle vs. financing it?
Even if you’re able to lease a new one for $50/mo cheaper, and you save that for the next 36 mos., is that extra $1800 really going to make a material difference in the exact same situation you’re in right now?
Honestly, with only 5,700 miles on the clock, and given the current state of the new & used car market, and that your goal is to have a paid off car in 5 years, the only sensible option is just to buyout your current car. No other options even come close to making sense.
Just FYI: Mazda uses Toyota Financial Services now, so if you lease a new Mazda, unless something has changed, you will still need to pay the disposition fee to Chase and inception to TFS (so there is no loyalty). It’s as if you switched brands anyway.
The images came through fine, but what’s not coming through is what exactly you’re trying to achieve here.
If you’re hell-bent on leasing a new one then by all means go for it, but don’t try and fool yourself into thinking that that’s going to somehow save you money or cost you less than just buying out your current car.
To lease a new one and then buy it, you’ll be paying $2k trade equity + $12k lease payments + $18k residual = $32k on a car you could buy now for $27k, does that seem like a good deal?
Does this mean you already leased a new one? Since you’re posting pictures of a deal sheet and a 2021 with the protecting sheeting from it being shipped to the dealer? Sort of seems like you already had your mind made up since after asking for advice, not a single person seemed to agree leasing a new one makes any sense for you.
But hope you enjoy the 2021 more than you did your 2018.
First you have to decide what you want. Do you want a fully paid off car in five years or do you want to drive a new car every few years? Those are very different goals.
If you want a fully paid off car in five years, buy out the 2018. Get a 5-year loan from dcu.org at 1.49%. Chances are you’ll never again be able to buy a used car at a price so far below market value as the opportunity you have now.
If you want to drive a new car every few years, lease a new one. But don’t hesitate to separate the new lease from selling the 2018. You said market value is $23-25k. Why would you sell to the dealer at $21k? Get quotes from Carvana, Carmax, Vroom, etc. Since you’re with Chase you can still do a third-party buyout for now.
And find a better new lease deal. With the amount of equity you’d give up by trading in the 2018 your effective payment would be pushing $500. 0.00114 MF with a $1k dealer discount after the doc fee isn’t a reasonable deal for a CX-5. If you’re not able to find a decent new lease now, you could always extend your current lease for a few months while you look.
You drop pictures without context. Perhaps consider not making misleading posts if you get offended when we are left to make assumptions in the vacuum of actual updates or detail.
Anyway, glad to see you delayed making an awful lease decision. You dodged a bullet by not throwing away money on that 2021 and getting ripped off on you 2018 (taking $2k under market value).
at the bottom