SO I get a letter from my bank and they want me to refinance my VX that I am currently leasing. It also says in this letter that I can push back my first payment til' August 06. Wow!

My lease expires at the end of June 06.
I have roughly 74,000 miles on her.
So, I call the bank and ask for more details. The nice southern-accent woman informs me that I don't qualify for the "three-month break" but I do qualify for the new fixed monthly payment of $257 a month for 5 years.
I was paying $329 a month and now I can purchase the VX with an added two year warranty for only $293 a month for 5 more years??? Huh?

They tell me over the phone that the VX Payoff:
$10,599.53 as of 04/12/06

I talk to my Allstate rep and he says "don't do it" ...just turn the car back in because the last thing the bank wants is to have to deal with the VX being returned.
I look on Kelly Blue Book.com...and my VX is only worth about $8,315 in "fair" condition...hell...even in "Excellent" condition the VX is only listed as $8,975 @78,000 miles.
My bank tells me that the interest rate is 12% and if I go to try and buy a new car at a dealer it will be much higher due to my bankruptcy 2 years ago.
She tells me I already have an established relationship with them so why not stay with them.
I think I'm being lied to...(I know...duh)
My credit score is in the mid-sixties...not quite "fair" but not "very poor" either.
Any suggestions?
I think I'm gonna shop around and ask some dealers.
I'm not just going to make it easy on my bank and sign this new contract. I think if I tell them that I researched the actual price quote of my VX, maybe they will change the deal.
I had fun with the my VX, so its not like its a big deal if I let it go.