Mazda end of lease - dealer wants to charge $699 admin fee?

Jun 9th, 2021 3:52 pm

#1

shop ahoy [OP]: Deal Addict; Dec 19, 2004; 2382 posts; 140 upvotes

Jun 9th, 2021 3:52 pm

Mazda end of lease - dealer wants to charge $699 admin fee?

My lease is coming to an end. I plan to purchase and keep the vehicle. I will pay for it outright (no re-financing), and I will not be leasing or buying another vehicle at the moment. The dealer says there is a $699 fee to process paperwork. I do understand that aside from the vehicle residual value, I have to pay for Safety certificate and any Ministry licensing fees. But to tack on a $699 fee?

I called Mazda Financial Services but they said they do not process end-of-leases directly with consumers.

Can anyone suggest a dealer that is willing to waive this fee and earn my future business? I am in Toronto.

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Jun 9th, 2021 3:57 pm

#2

pentiumvi: Sr. Member; Dec 3, 2009; 579 posts; 249 upvotes; Vancouver

Jun 9th, 2021 3:57 pm

shop ahoy wrote: ↑ My lease is coming to an end. I plan to purchase and keep the vehicle. I will pay for it outright (no re-financing), and I will not be leasing or buying another vehicle at the moment. The dealer says there is a $699 fee to process paperwork. I do understand that aside from the vehicle residual value, I have to pay for Safety certificate and any Ministry licensing fees. But to tack on a $699 fee?

I called Mazda Financial Services but they said they do not process end-of-leases directly with consumers.

Can anyone suggest a dealer that is willing to waive this fee and earn my future business? I am in Toronto.

I think in general every dealership would charge some sort of admin fee. The only difference would be how much they charge.

Best to just call around and ask what fees each dealer is charging.

+3

Jun 9th, 2021 3:58 pm

#3

CNeufeld: Deal Guru; Mar 23, 2008; 12331 posts; 8747 upvotes; Edmonton

Jun 9th, 2021 3:58 pm

shop ahoy wrote: ↑ My lease is coming to an end. I plan to purchase and keep the vehicle. I will pay for it outright (no re-financing), and I will not be leasing or buying another vehicle at the moment. The dealer says there is a $699 fee to process paperwork. I do understand that aside from the vehicle residual value, I have to pay for Safety certificate and any Ministry licensing fees. But to tack on a $699 fee?

I called Mazda Financial Services but they said they do not process end-of-leases directly with consumers.

Can anyone suggest a dealer that is willing to waive this fee and earn my future business? I am in Toronto.

IF you were buying another vehicle right away, you might find a dealer willing to eat some or all of the fee. But as you said, you're not planning on buying or leasing another vehicle right now, and it's going to be tough to find a dealer that's willing to bank on your goodwill in a few years. Still might be able to find one that's lower in cost, though.

C

+3

Jun 9th, 2021 4:19 pm

#4

CuriousJack: Sr. Member; Feb 17, 2015; 951 posts; 1111 upvotes; Canada

Jun 9th, 2021 4:19 pm

Check you lease agreement. How much does it say in the agreement?

+2

Jun 9th, 2021 5:28 pm

#5

shop ahoy [OP]: Deal Addict; Dec 19, 2004; 2382 posts; 140 upvotes

Jun 9th, 2021 5:28 pm

It says $0.00 But - I had taken over the lease, and the original dealer is 160 kms away roundtrip. I called MFS first, but they do not process end-of-lease directly with consumers. I called a local dealer, and they said $699, even for their own leases. To justify the fee, this dealer claims it involves a two part process - the ownership goes from the leasing company to the dealership, and then from the dealership to me.

Last edited by shop ahoy on Jun 9th, 2021 5:41 pm, edited 1 time in total.

Jun 9th, 2021 5:35 pm

#6

jzmtl: Deal Addict; Jun 14, 2008; 3311 posts; 2072 upvotes; Montreal

Jun 9th, 2021 5:35 pm

I'd drive 160KM for $699.

+14

Jun 9th, 2021 5:41 pm

#7

DoogeCoinR: Member; Oct 25, 2011; 381 posts; 107 upvotes; Toronto

Jun 9th, 2021 5:41 pm

Ask them to discount it to $500 bucks and call it a day. Every dealership charges to buyout the car.

Jun 9th, 2021 5:58 pm

#8

shop ahoy [OP]: Deal Addict; Dec 19, 2004; 2382 posts; 140 upvotes

Jun 9th, 2021 5:58 pm

I read in another thread where some people dealt with Honda Financial Services directly for their end-of-lease purchase and was able to avoid the fee. Was hoping Mazda would be the same, but apparently not.

Jun 9th, 2021 7:04 pm

#9

matrixfwd: Sr. Member; Oct 4, 2010; 637 posts; 273 upvotes; Surrey

Jun 9th, 2021 7:04 pm

how many more weeks/payments do you have until your lease ends?

Jun 9th, 2021 7:39 pm

#10

Holystone: Deal Addict; Oct 24, 2016; 1064 posts; 937 upvotes; ON

Jun 9th, 2021 7:39 pm

Strangely Nissan Finance actually encourages you to deal directly with them. In the letter, after explaining how to do the lease buy out process with them, they end by saying if you do this process through your dealership then they will charge you an administrative fees.

Isn't it great to live in the 21st century where deleting history has become more important than making it.

Jun 9th, 2021 9:15 pm

#11

shop ahoy [OP]: Deal Addict; Dec 19, 2004; 2382 posts; 140 upvotes

Jun 9th, 2021 9:15 pm

matrixfwd wrote: ↑ how many more weeks/payments do you have until your lease ends?

7 weeks

Jun 9th, 2021 9:19 pm

#12

shop ahoy [OP]: Deal Addict; Dec 19, 2004; 2382 posts; 140 upvotes

Jun 9th, 2021 9:19 pm

Holystone wrote: ↑ Strangely Nissan Finance actually encourages you to deal directly with them. In the letter, after explaining how to do the lease buy out process with them, they end by saying if you do this process through your dealership then they will charge you an administrative fees.

So Nissan encourages you to deal direct
Honda doesn't publicizes but allows you to do it
Mazda doesn't allow it.

Should remember to factor that $$$ in when getting into a lease next time.

Jun 9th, 2021 10:14 pm

#13

ES_Revenge: Deal Expert; Mar 23, 2004; 29104 posts; 9618 upvotes

Jun 9th, 2021 10:14 pm

jzmtl wrote: ↑I'd drive 160KM for $699.

Just make sure they aren't going to charge you an admin fee as well, before you make the trip lol. But yeah 160km round-trip is nothing. That's like an hour and a half's worth of driving round trip.

shop ahoy wrote: ↑ So Nissan encourages you to deal direct
Honda doesn't publicizes but allows you to do it
Mazda doesn't allow it.

Should remember to factor that $$$ in when getting into a lease next time.

Most people leasing don't lease-to-own so this is why this isn't very well publicised or at least few people ever mention it when you look for "car shopping tips".

But yes "admin fees" are pretty common on lease buyouts.

+3

Jun 10th, 2021 1:52 am

#14

MP3_SKY: Deal Guru; Jul 12, 2003; 11743 posts; 4045 upvotes; Toronto

Jun 10th, 2021 1:52 am

No dealership will waive that admin fee for that lease buyout (unless agreed prior and in writing)

Even you go back to the dealer you got the car fro, they wouldn't waive it. It is a matter for how much they charge? $499? $599 or $699

It sounds steep, but dealership won't work for nothing, they have to pay their staff to do the paper works for you + their own profit.

I remember I pay around $500 at Erin Mills Mazda when I bought out my lease 10 years ago, not surprise the fee gone up since then.

Retired Forum Moderator February 2009 - June 2015

+1

Jun 10th, 2021 1:56 am

#15

MP3_SKY: Deal Guru; Jul 12, 2003; 11743 posts; 4045 upvotes; Toronto

Jun 10th, 2021 1:56 am

jzmtl wrote: ↑ I'd drive 160KM for $699.

No body said that dealer which is 160km away is waving the fee.

Retired Forum Moderator February 2009 - June 2015

Jun 10th, 2021 1:59 am

#16

xjesterxx: Deal Addict; Jul 5, 2011; 1767 posts; 1661 upvotes; Toronto

Jun 10th, 2021 1:59 am

$699 is excessively high.

$299 is the going rate, but you might find most upped to $499 these days.

2013 Wins - $1320 - Woohoo!

+1

Jun 10th, 2021 2:40 am

#17

Sanyo: Deal Guru; Feb 9, 2009; 11256 posts; 9746 upvotes

Jun 10th, 2021 2:40 am

matrixfwd wrote: ↑ how many more weeks/payments do you have until your lease ends?

feel like this should be a thread title.

Jun 10th, 2021 2:52 am

#18

Quentin5: Deal Expert; Feb 8, 2014; 20552 posts; 7689 upvotes; Socially Distanced

Jun 10th, 2021 2:52 am

They get you coming, they get you going

I'd shop around, even call up the original dealership. 80km away is an hour depending on your proximity to the center of the universe.

In fact in Rand McNally they wear hats on their feet and hamburders eat people

Jun 10th, 2021 7:26 am

#19

RaphaelG041: Deal Addict; Nov 27, 2013; 1434 posts; 1830 upvotes

Jun 10th, 2021 7:26 am

Only leased a vehicule once and that was with VW. Returned to car to local dealer and was never charged any sort of fee. Didn't buy a car from them afterwards either.

699 is insane. That's probably more profit than they made selling you the car in the first place.

Jun 10th, 2021 11:20 am

#20

StatsGuy: Deal Fanatic; Dec 20, 2018; 5172 posts; 4233 upvotes

Jun 10th, 2021 11:20 am

Quentin5 wrote: ↑ They get you coming, they get you going
I'd shop around, even call up the original dealership. 80km away is an hour depending on your proximity to the center of the universe.

To be fair, the dealer he went to that wanted $699 never made any money on the sale, of course they're not going to process the buyout process for free.

Though$699 is pretty high for a Mazda

Mazda end of lease - dealer wants to charge $699 admin fee?

Mazda end of lease - dealer wants to charge $699 admin fee?

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