Lease Trade In

[Mr. Lennon]

So I just started on the last year of my lease (2010 Mazda 3 S) . Long story short, leasing was the best option for me at the time...that has now changed. Since I don't plan to keep the car, nor do I want another lease, I don't see a point in paying $222 for another 12 months.

My idea is to find a used car at a dealership for under 10k. The dealership will then hopefully pay the current buyout amount of 14k (kbb values the trade in @ 16k). End result equals lower payment on something I'll eventually own and drive to the ground.

Comments, critiques, and similar experiences are welcomed.

 

[DeviousTrap]

In theory, nothing wrong with the plan.

In reality, there's one small hiccup you need to research with your leasing company. I can't speak for Mazda, but I can speak for VW leases. With VW, the payoff the car is irrelevant if you're trading the car into a dealer. They will only sell the car to you for the payoff value. If you're trading it in, they'll sell it to the dealer for a fair-market value, which can easily be significantly more than the current payoff amount.

 

[Mr. Lennon]

In theory, nothing wrong with the plan.

In reality, there's one small hiccup you need to research with your leasing company. I can't speak for Mazda, but I can speak for VW leases. With VW, the payoff the car is irrelevant if you're trading the car into a dealer. They will only sell the car to you for the payoff value. If you're trading it in, they'll sell it to the dealer for a fair-market value, which can easily be significantly more than the current payoff amount.

Good point . I'll call Chase for the details.

 

[alkemyst]

I made a profit on my 1997 VW VR6 lease.

Traded for my 1996 Saturn SC2 in late 1999 and the deal was pretty much a wash.

I have known a lot that were 'upside' down on their leases though due to wear/mileage.

I'd see if they'd trade you out for something they want to move off their lot.

My VW was $20500, my Saturn was $10360.

 

[Mr. Lennon]

I made a profit on my 1997 VW VR6 lease.

Traded for my 1996 Saturn SC2 in late 1999 and the deal was pretty much a wash.

I have known a lot that were 'upside' down on their leases though due to wear/mileage.

I'd see if they'd trade you out for something they want to move off their lot.

My VW was $20500, my Saturn was $10360.

Nice. My Mazda is in pristine condition with only 17k miles on it, so I think I'll be in a similar situation.

One more question, would other dealerships (besides the one I'm leasing from) be interested in such a transaction?

 

[alkemyst]

I traded at a GM dealer.