Weird Mazda CX5 or Jeep GC 4xe Lease Buyout Question

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1

I am in NY, and my current CX5 lease ends in a few weeks. I have about $3k in equity with a buyout offer from CarMax.

I don’t have my heart set on a specific vehicle and am wondering if it makes sense (or if it’s even possible) to lease a new CX5 or GC 4xe now and then at some point during the lease, see what CarMax will offer to buy out the lease early so I can get a different car if I want to.

My question is, which car is most likely to hold its value if I try to sell it to a third party dealer before the lease period ends?

2

If it were me I would just buy out your existing cx-5 and wait it out. Banking on equity in a lease (especially towards the front end of it) is probably not a good plan.

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3

First see how much equity we are talking about. It maybe more.

4

I am going to do that right now, thank you!

I am wondering, if a place cannot do a lease buyout with Mazda Financial but can only buy it directly from me, then I believe I would have to factor in paying almost $2K in NYS taxes to buy out my lease and then first sell it to them, basically taking ~$2K off their offer for practicality purposes. Does that sound right?

5

“Mazda Financial” is basically a letterhead for another bank, you should find out which one.

It could be Chase or it could be Toyota Financial aka TFS aka TMCC.

6

I think everything through Mazda after 4/1/20 is with TFS.

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Ah okay. They told me it is under Toyota Lease Trust. Maybe I am missing your point, but in either case I would still be on the hook for NYS taxes if I have to buy out the lease from either of them first before selling it, no?

I already received a $27.2k offer from Algo Nation, which would give me almost $5k in equity if they do lease buyouts.

8

So if Toyota Lease Trust is TFS then you won’t need to buy it out AFAIK. The equity should be all yours, no need to deduct TTL from it.

9

Okay, thanks again. Looks like that was the highest offer. Assuming I can get about 5k equity on this, what would you do?

Sell the CX5 and try to lease a new CX5 or a GC 4xe until you find another car or deal you like?

Or would you just buy out the current lease and hold onto the current CX5 until you find a car or deal you really like?

11

I’m in the exact same situation-cx5 lease is up in August and have about 5k equity. I am going to see if I can use that equity toward a Cx-90.

12

I was thinking about doing that too.

But it is hard for me to justify spending an additional $20k minimum for a first-gen model that might not hold its value. I’m concerned the PHEV tech is early and that in another year or two the tech will continue to improve and nobody will want the first-gens. I also read the CX90 will not get full 7500 credit.

Am I way off? Are there features in the CX90 that totally justify the price increase?

13

Either buy your current CX5 or use the equity and tax benefit to trade in for a financed brand new CRV, HRV etc or even Lexus RX/GX (healthy discounts in the #marketplace)

14

Thank you! I am having trouble finding the CRV or HRV deals in the marketplace. Or were you only referring to Lexus for being in the marketplace?

15

There are some Honda broker/dealers too. Not sure if they are close to where you are but check out the #marketplace

16

Cash out the equity and snag a GC 4XE!

17

If you go that route be very cognizant of using the right lessor.

18

if the goal is to continue to have a vehicle until you find your next deal, are you able to extend your lease for 6 months on a month-to-month basis at the current pmt until you find your next vehicle. That way you are not taking any of the market risk in a new lease if the Market tanks.

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Yes I can extend it at $40+ each month on top of my current lease payment. I have considered doing this.

Are there any reasonable expectations for the market tanking or dropping from its current levels in the near future?

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