Tips on Buying Cars: turning in my leased vehicle and mileage overage, high mileage, honda dealership

Question
Hello,

I have just made my last payment on a leased 2003 Mercedes c320.  The due date to turn in the vehicle is July 26th, next month.  I am over my miles and will most likely owe something like $4k when I turn the vehicle in.  I am wondering if I should just ride the lease out to the end, pay the mileage overage and walk away to try and purchase another car or; if I should try trading the vehicle in for another vehicle at another dealership.  I am thinking about trading down as I have just lost my job.  I will need a car, but a lower priced car such as a Honda Accord might better suit my wallet for the time being.  I have also been told to take my car to CarMax to see how much they will give me for the car, assuming it is much more than what any dealership might offer me.  My asumption is that I would take take the car there and walk away with a check that I can apply to another vehicle.  My manin question is, is it possible to:  1) get out of paying the mileage overage at all; 2) can the CarMax option truly be exercised and 3)can I trade the vehicle in for a lesser priced vehicle at the likes of a Honda dealership and have the mileage overage absorbed through that purchase process.

Your kind advice is much anticipated.

Thanks in advance for your prompt response,
Denise

Answer
1) You can only trade in a car that you own outright- since you're leasing this vehicle, it's not yours to trade.  And CarMax IS a dealership; they won't give you any more for it than any other dealership (even if it was yours to trade).

2) The only way to get out of paying the mileage is to buy the car from the leasing company.  Chances are, there's a clause in your lease contract that allows you to do that, along with a set purchase price.  Problem is, that purchase price, because of your high mileage, is FAR more than the car is currently worth.  I've known several people that have bought out their high-mileage leases, and everyone of them has lived to regret it. Your car's warranty has expired, and your monthly finance payment will certainly be higher than what your lease payment was; what would you do if the car needed a major repair?  You'd have no choice but to pour more money into a car you shouldn't have purchased (at the end of the lease) in the first place.

3) Unless you have a very sympathetic banker, only the dealer from which you leased the Mercedes can get you into another vehicle where they can "absorb" the mileage.  Well, they'll add the cost of the miles to the cost of the new car (trust me, no dealer will just make $4,000 worth of mileage charges just disappear, not even for their own mother!).  

I know you don't want to hear this, but I'm here to give the straight scoop, the best possible advice, and that is:  pay the mileage charges when you turn in the Mercedes.  I know it seems like a waste of money, but you legally owe it, and it's the best way to solve this problem.  Even if that money were to go towards the down payment of your next car, you'd STILL be better off to pay the charges and start fresh with the next car.  I've leased most of my cars since 1983, and I'm a big proponent of leasing.  But you've just found out the biggest downside to leasing: not anticipating exactly how many miles per year you drive.