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Prices Paid: Buying & Leasing Experiences Prices Paid & Leasing Experiences Archive Mazda MPV Prices Paid and Buying Experience 
536 messages, Last post on Jun 28, 2008 at 7:58 PM
You are in the Prices Paid & Leasing Experiences Archive Forum. Your Hosts are car_man & kyfdx
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As far as trades are concerned, you have to understand that the used car market took 2 large hits over the past few years. (1) All the lease returns. In the mid 90s the dealerships pushed leases and all of a sudden people were returning the vehicles to the dealership and leasing new cars. The good is they buy or lease a new car, the bad iss what do you do with all of these used cars. So the dealerships are stuck with all of these used cars on their lots. If they can't sell them, then they go to auction where you get less then the car is worth. Thus it re-adjusts what the car is worth on the lots and for lease returns. Too much supply and not enough demand. It creates a nasty cycle. (2) Sept. 11th and all the rebates that followed. When a manufacturer offers a cash rebate on a car, that money is comes off the value of the car. So a car that is $15k with a $1500 rebate has a true value of $13,500. Now all the used cars get re-adjusted based on that price. So two years ago, there was a major adjustment in the value of cars. You have the rebates being offered and all these off lease cars on the used car market drove down the cost of used cars. Also is caused many problems for leasing companies. The Guaranteed value of the car after X years (in the lease contract)was now too high. So they were stuck with cars that were lower in value then they guaranteed. Right now, the only way to expect a good money for your trade is if you have a late model car in demand or if the dealer is really trying to get asale. Otherwise, you are better off sellingit on your own. |
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| Yeah, we leased the car a 2000 Nissan Maxima SE in June of 2000. It was a new design and people were paying top dollar for the car then. We were able to write-off some of the expenses but I hate to have to dish out an additonal $1500 for "nothing." We are negotiating with the dealer to see if they will give us an additonal $500 off the selling price or towards the trade-in value. 0% on a $24,000 minivan is a pretty good deal. We will see what happens. Thanks for the info | |
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NEVER put money down on 0% financing..... NEVER |
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| What's wrong with putting money down on 0% financing? | |
| It makes no sense to put money down on a 0% loan. You are getting a free interest loan so why cheat yourself. It doesn't cost anything to borrow money for next 5 years. Only reason I can see why someone would put money down on a 0% loan is, if they want to pay it off quicker or have lower monthly payment they can work with. You can also pay it off quicker by paying extra each month but why would anyone do that unless they just want to pay it off qucker. | |
| 0% financing - Don't forget some manufacturers require you put 10% down on the 0% financing. It all depends on how long you plan to keep the car. Now I would definitely say never put any money on a lease except the required fees. | |
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| Thanks for all of the input. We picked up a 03 LX about a week and a half ago. We got the car for invoice with 0% financing but were upside down on our trade-in. So we put a little down to lower the monthly payments. | |
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Mazda Mania Chat Tuesday nights - 6-7pm PT/9-10pm ET. |
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| I went to a dealer in Oakland...BIG mistake. At first they were happy to sell me the car at $20,055 before taxes and before the $2,500 REBATE. Then they found out I had a pre-approved loan from my Credit Union and they freaked out. The salesman even yelled at me and told me I should be ashamed....how he had to keep the lights on and so on it really got ugly for no good reason other than he couldn't screw me on th financing and stuff. I walked and am still searching to match the deal someplace else. o | |
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Makes this new article even more timely: Financing Pitfalls and Solutions And it's ok to name dealers, per the blurb above. Best leave the salesperson out of it though  Steve, Host |
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