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I was just about to finnish a Mazda lease. I had a 3 S and was happy enough to want the car. After 3 years I was not upside-down on the purchase price of $9300. I was way over my miles at 68,000. The car was running great and I had taken very good care of it. I had the cash to pay for the car. Here's the problem.

The dealer I bought the car from was Galpin, a mega dealership in LA. When I tried to just buy the car they insisted I come into the dealership to do so. I had been given prices to end the lease 1 month early or wait the full 36 mos. So reluctantly I went to the dealership after making an appointment only to receive a sales-pitch for a new Mazda, a new lease or at least an extended service contract. When I told them that those things really didn't appeal to me I just wanted to buy the car. I was told I needed to make another appointment with the leasing department to buy the car. I had been trying to buy the car for 2 and 1/2 week at this point. I called once again to buy the car at the leasing department at another location 20 odd miles from my house. I still wanted the car. When I made the appointment I was told the price had gone up from interest applied. ~$100. $100 is still a significant enough amount of money for me to care about. I'd had it. The next morning I went to a Honda dealer and traded in the car on a HCHII.

Here's where it gets really sticky-

The day after I got my new car I was called from the new dealer saying that Galpin/ Mazda wouldn't accept payment from them for the car - I had to pay Galpin who would then pay Mazda. I spent an entire day trying to get someone to intercede in this foolishness. After many calls to many people from the dealership to Mazda credit to the Galpin leasing department even to Galpin's owners office I was told:
"You don't own the car you cant trade it in. If you want you can come in and pay the car off with sales tax, or turn the car in and pay the mileage. Those are your only options". Then I was told that during the last 90 days of the lease this policy was in effect. Needless to say this is the first time I'd heard this caveat. If it was one guy or the dealer I would have to say was was the victim of shady dealings but MAZDA was in on this too.

I had taken the money I was going to pay for the car with and used it as the down payment on the HCH. I have ended up taking money earmarked for my daughter's tuition at college next year and paying the bloodsuckers but I am furious with the complete disrespect for what might have been a great customer. I have been told that when I get the title for the Mazda I will get the agreed upon price for my car from the Honda dealer. I am still waiting for the title.

I hope you Mazda leasers out there get this info. You will be over a barrel if you don't have the cash or means to obtain it at the end of your lease!

Why would a company destroy it's chances of EVER selling another car to me? Over the last 16 years I have pumped about $70,000 into the Ford/Mazda coffers. I still own a Mazda 3 my daughter's college car. These tactics stink. When did this policy of having to return the lease or buy it start? Do they think they've made my poison pill a positive thing for their companies? Thank God for the internet so information can flow.

Anybody started a class action suit?

Guzmania, don't take this the wrong way -- I'm not knowledgeable about leasing practices. It has always been my understanding that when you lease a vehicle you are only paying the depreciation on the car due to use... so you don't own the car. Is it normal practice to be able to "trade in" a lease for new car? Doesn't the dealership own the actual remaining value of the car? In that case, what exactly are you trading?

I'd be grateful if you could explain this to me as I'm quite confused right now. :confused:

Guzmania, don't take this the wrong way -- I'm not knowledgeable about leasing practices. It has always been my understanding that when you lease a vehicle you are only paying the depreciation on the car due to use... so you don't own the car. Is it normal practice to be able to "trade in" a lease for new car? Doesn't the dealership own the actual remaining value of the car? In that case, what exactly are you trading?

I'd be grateful if you could explain this to me as I'm quite confused right now. :confused:

I'm confused too, about how the Honda dealership could accept it? I thought that if you are leasing a car you don't have title (pink slip) for it?? I thought the leasing company held onto that?? So how could Honda take it as a trade-in??

I'm still paying off a loan on my Subaru and I think I have the pink slip, but I believe it shows a lien on the car from the bank (Chase) that made the loan. So if I tried to trade it in I'd have to satisfy that lien I think??

Okay, I'm confused. Had you, or had you not, actually purchased
the car and held title before you went to trade it in?
.
_H*

It seems to me that it is the Honda dealer who accepted the leased vehicle in as a trade that did you the disservice. That dealer out to know that when you lease a vehicle is like renting a house. You get to use it for the term of the lease, but then you have to turn in back in. Surely the Honda dealer should know this.

Leases are taken in trade. My payoff is what I contracted with Mazda for. I paid extra so the deal would end with me having a car worth more than the price to buy. That payoff, whether paid by me or Uncle John or The Marine corps is the contract. Reseller to reseller there would be no sales tax in California. Now I'm out 800 clams. Ford/Mazda just won't ever get my business again. I have been told there is a legal case here

Goodluck with your legal case, but I don't think that trading a lease in is as easy as you make it out to be.

Actually I have had several cars on lease before. And Have traded one in before the lease was up. It is true that you "own" the car during the lease period. It is treated just like a normal load on a car but that once the term is up you do not keep the car. The dealer/maker does and resells it if you do not buy it. That stinks that Mazda has that very small print in the contract, but I guess they lost out on keeping a customer.

It all sounds real screwed up.

Isn't Cali. a title holding state? When I lived out there in the land of fruits and nuts. I never got a title to a car. Only the pink slip. Be it old new, paid for or not.

Rule of thumb. Trading a leased car is not good. Once you own it out right. Then you can do what you please.