First time returning a lease vehicle. I am planning on leasing the 2021 version of the same vehicle.
This entitles me to some incentives from Mazda. I understand I also may have some equity in my 2017 Mazda which has 22k miles in 39 months (6 month extension due to Covid). How do I handle the equity aspect when I am returning the lease? What’s the usual process? I know they do an dealer inspection and then what happens? Any advice?
Thanks
Try selling it on carvana/carmax to avoid the $350 disposition fee.
I returned a 2017 Mazda 3 6months ago and got billed 2k for excess wear and tear damage (there was a slight dent but the charges seemed excessive). Sold the car on caravan for more than residual value, didn’t have to pay the damage fee and disposition fee
If it is a 2017, then you should be through chase bank and Mazda Capital Services. As of October when I last dealt with them, they allowed third party buyouts with no penalty. You should schedule a pre-inspection with AutoVin to see any potential charges levied.
If you have positive equity, and can have carvana, vroom, shift, carmax, or any other dealer buy the car for more than your buyout, then you’re golden, possible check in pocket with positive equity and no disposition fee (there may be a buyout fee if I recall correctly when I dealt with Subaru, which is also Chase).
Equity aspect, if any, will be handled separately to the trade in guidelines of whichever dealer is buying the car, online, traditional, etc.
If you choose not to sell your car, then you will have a dealer inspection where they will assess the car and have charges levied, this may be done after the car is dropped off (Which is why most recommend an AutoVin pre-return inspection). Disposition fee if not leasing another Mazda within x period.
Just to be clear, if you have positive equity, you must sell your car to a Carvana, Vroom, local dealer, etc. in order to pocket this.
If you just turn the car back in to Mazda via the usual lease end process then any positive equity goes down the drain.
As mentioned, get offers from Carvana and Vroom and compare that to your lease payoff. Make sure you’re using the correct 3rd party dealer payoff.
If you have positive equity then pick the best offer and sell it. They will pay off your lease, cut you a check for the equity, and your account will be closed. No inspection needed or anything else.
If you don’t have positive equity, then just follow the lease-end instructions you’ll be receiving from Mazda re: scheduling the inspection, turning the car in, etc.
I put everything in to vroom and it seems I have $2000 in equity but I could have categorized it
incorrectly. It’s has some scratches and a small dent. Autovin says $430 worth of repairs out of $1000 deductible. The buy out price from Mazda lease deal says $16,965 and the car only has 22k miles. Vroom says $18,695. How does the process work as far as accuracy of this offer from them. Do they come for pickup and then give you the more accurate offer? I have less than two weeks to rerun the car to dealer. Is it possible to have one of these companies pick it up that quickly?
Thanks
Nope, usually offer is offer unless you grossly misrepresent the car.
I had carvana take my Nissan and they didn’t reduce my offer with clear coat scratches on the trunk. They didn’t represent it online either… I chose the top option for condition.
If you’re apprehensive some services like algo have you do a FaceTime call that allows you to walk around the car for them to give you a more accurate offer to negotiate on.
How long does the process take - accept the deal and they pick it up?
Really depends on the service it can be really quick like mine was for an owned Altima (sub 3 days) after agreeing, and I’ve heard things about over two weeks.
Services may also have restrictions on time left on lease to buyout.
if it’s a cx5, you have equity. sell it to a third party.
Each of these services has a dedicated thread on LHF and pretty much every single aspect of selling your leased car to them has been covered exhaustively.