Automotive

Lease ending with unused km question

  • Last Updated:
  • Mar 12th, 2019 12:14 pm
[OP]
Member
Sep 20, 2010
244 posts
141 upvotes

Lease ending with unused km question

Hello all, I have a few questions and I'm looking for some advice on my car lease which is ending in July. I have only used 28,000 km of my allowed 80,000 km. Do you typically get any type of refund for the unused kilometers? If so, roughly how much can I expect?

I have the option of buying out the car for $10k. I have a 2015 Mazda 5 (which I have grown quite fond of) and they have stopped making them, so I'd have to switch cars. I'd likely get some variant of the Mazda CX series.

I'm trying to work out what would be the best options, but I'm not sure what type of deal I'd get on a new lease as I've no experience on the matter. How much can I expect to receive towards a new lease? Is there any angle for negotiation there?

What do you suggest? Should I return the car and hope for a fair discount on another Mazda lease or should I just buy out the car for 10k?

Thanks much for any input at all. I'm completely new to this and don't want to fleeced by some greasy salesperson.
17 replies
Deal Guru
Jan 15, 2006
13500 posts
10331 upvotes
Richmond Hill
You get nothing back. The only people that benefit from this is your dealer. No different from renting a home and when you go on vacation you don't get "credit" for not using the place.
Last edited by EP32k2 on Mar 11th, 2019 11:06 am, edited 1 time in total.
Deal Addict
User avatar
Jan 16, 2011
3778 posts
3269 upvotes
The NORTH
I don't believe you are entitled to any refund because of not using KM's. In your case if you like the vehicle and its only got 28k Km, i'd buy it out.
Sr. Member
Jul 21, 2009
822 posts
236 upvotes
Toronto
If you like the car then keep it. The dealer won't give you any refund for unused KM but may give you a loyalty discount on another car. Signing a new lease will always cost more than buying out your old lease.

The other option is to buy out the car and sell it privately
Deal Addict
Jan 8, 2007
2452 posts
968 upvotes
Calgary
submarine wrote:

The other option is to buy out the car and sell it privately
This.

Since you have such low kms on it, you should be able to sell it for more than your buyout with tax(es). It's a bit of work but potentially you can make some money back if you're willing to deal with the extra work. This will be harder if you're in a province where there is tax on private used sales (Ontario).
Deal Expert
User avatar
Jul 30, 2007
25753 posts
10801 upvotes
Toronto
.. in that case, to get your money's worth, you will need to use those allowance up fast. Be a Uber driver and earn some $ back ...
Deal Guru
User avatar
Oct 5, 2008
12374 posts
6243 upvotes
Toronto
since you like it and it has low KM's, buy it out.

You don't get a "refund" if you turn it in
Last edited by Swerny on Mar 11th, 2019 12:39 pm, edited 1 time in total.
Deal Expert
Aug 22, 2011
31115 posts
16864 upvotes
Ottawa
I would buy it back or sell it privately.
Deal Addict
Apr 6, 2008
1807 posts
1146 upvotes
You get nothing back, but I would think the dealer could make the deal "sweeter" if they stand to make a bunch of money on the lease return that they could translate into a savings on your new vehicle. I would shop around, and if you definitely want to change vehicles, figure out what's the best course of action. I definitely wouldn't return it without doing your homework as there should be a significant positive equity in the vehicle with the low kms.
Deal Addict
User avatar
Jul 26, 2007
4567 posts
2184 upvotes
Toronto
Last time I returned low km lease, the dealer made it like a trade-in to give me more value of the old car to get more discount for the new car I was buying from same dealer. They upped the value by $1000. Nice of them.
[OP]
Member
Sep 20, 2010
244 posts
141 upvotes
peteryorkuca wrote: Last time I returned low km lease, the dealer made it like a trade-in to give me more value of the old car to get more discount for the new car I was buying from same dealer. They upped the value by $1000. Nice of them.
This is what I was hoping for. If I expressed interest in buying out the car to sell it at a profit, but don't want to go through the hassle of all the paperwork/legwork, then perhaps they could give me a bit of a discount.

Thanks for all the responses though. It looks like a buyout might be the best option. I do actually like the car quite a bit and was very disappointed to hear that they discontinued the 5. It is in pristine condition too.
Deal Addict
Apr 5, 2013
4340 posts
1536 upvotes
markham
vkizzle wrote: I would buy it back or sell it privately.
what you would do and what op is capable of are like 2 different planets...next post will be how do I sell my car!

op....just buy out car and keep...or if you want to upgrade to new car, ask for a premium on your trade...and threaten to sell it private as leverage to get a better deal..thats about as good as your going to do..and even that is a stretch..you didn't know about lease rues so its highly unlikely you are going to have the ability to negotiate a killer deal on trade or new purchase...just get whatever you feel comfortable and live with it..pretending to do or be something you are not will just get you more trouble and headache down the road.
Deal Addict
May 30, 2012
3640 posts
950 upvotes
Montreal
Sounds like a first world problem...
The point of leasing is so that you can give it back and not worry about keeping an old car.....buying it out and selling it privately is too much of a hassle.....but I guess a good option to save a few hundred bucks....but if you wanted to save money, you shouldn't have leased....

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