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Prices Paid: Buying & Leasing Experiences Mazda5 Lease Questions
40 messages, Last post on Nov 05, 2009 at 10:13 AM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
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Hi everyone. Please use the following discussion to post any questions that you have about leasing a Mazda5. Thanks. Car_man Host Smart Shopper / Prices Paid Forums |
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Just curious----do you negotiate the price first?
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Replying to: ndigiorgio (Jan 27, 2006 11:27 am) Car_man Host Smart Shopper / Prices Paid Forums |
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Replying to: Car_man (Jan 31, 2006 3:54 am) |
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Replying to: bobw3 (Jan 31, 2006 9:50 am) If you tell them right away that you lease, they will give you final pricing, they are more reluctant to give you the detail as of amount given for the exchange, price paid for new car, ... The sales dept. will give you a nice (it's gonna be 450$/month, tax, exchange, Trans&Prep included). I prefer to know how much i got for the exchange,then the price paid. It's easier to negotiate with other dealers with those numbers. then again, some will give you the details even if you tell them you'going to lease the car. |
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| Just my own two cents about the art of leasing. Unless they actually allow you to sit down and view the lease computer, chances are the price you spend time negotiating will be meaningless. Having worked in a dealership I know that the finance guys will routinely punch sticker price back in as the sale price, quote a payment, and see if you can swing it. Heck, same goes if you're a payment buyer on a loan too. If you push, they'll "change lenders" or try some other sales tactics to get you closer to where you want to be. Because leasing involves lease factors, residual values, mileage allowances, etc. it is less understood by the general public and can be manipulated to a greater degree for dealership profit. Not saying leasing is bad, but make sure you're dealing with somebody you trust and/or find an independent source for financing. | |
| thats ok to negotiate the lease payments as long as you are sticking to the terms of the lease. (Let say your target price is 0 down, $250 a month for 36 month, 12k a year plus tax that you could pay upfront) | |
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I had good luck with Leasguide.com for great info about leasing. I paid the ~$20 bucks US and found that information and tools have been invaluable in my research towards driving our M5 sometime next week!--can't wait  After a bit of research and negotiating I settled on a deal with Leasecompare.com. They allow you to either locate the car you want and negotiate the purchase price or they'll find your car and purchase it, then lease it to you. They had trouble finding the one I wanted, so now that I have found it and got the price down a bit, they are working with the dealer on the purchase and with me on the lease deal. It turns out something like this... I talked to my local dealer (Stokes Mazda, Charleston, SC, USA) and found an M5 Touring Carbon Gray, the only acc. = floormats Manual trans. US$18,800 + Tax/Title/Lic. OTD $US19,438 Now for the lease At Leasecompare.com I input all the parameters and it returned 5 or 6 offers, of which I chose the my best set of parameters (lease term, miles/year, 0 to ?$ downpayment, money factor, etc) and chose the lease option. I should be zooming next week 
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Replying to: bobw3 (Jan 31, 2006 9:50 am) Car_man Host Smart Shopper / Prices Paid Forums
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Replying to: Car_man (Feb 19, 2006 7:07 am) In my mind, the first and foremost is the price of the car. Everything else is derived from the price because the monthly lease payment and the future residual value are all a factor of future value of the current purchase price. Since I learnt finance, I am pretty familiar with a financial calculator. If you provide two out of the following three variables, the calculator can help you to find the last variable: Monthly Payment Amount, Future Residual Amount; &/or Interest(depreciation)%. I have bought 4 vehicles in the last 10 years or so. Each time the dealers brought up the leasing option and I started punching in numbers to the calculator. They never told how much they were making on the interest(Depreciation) on a lease, so I would use the monthly payment and residual value and back tracked the interest they were making off of me. Usually, it would be 8-10% from my experience with the promoted leasing program. However, if there was no promoted leasing program, just a lease alternative that a dealer brought up so you might afford a car that you wouldn't be able to afford with a loan, then the interest on the lease would be much higher. By the way, not only you need to negotiate on the purchase price of the car, you also should pay attention to the residual value of the car. If you want to get rid of the car at the end of the lease, you want the residual value to be high (so lower monthly payment). If you want to buy out the car at the end of the lease, you want to have a low residual value. The reason I never be able to lease is because I found the interest on the lease is almost always higher than a loan (which is natural), but more importantly, I can't drive less than 1000 miles a month, which is the usual 12K miles a year maximum requirement (10.5K miles per year on the current Mazda5 lease program). Remember, in most cases, each extra mile over the maximum mileage requirement costs $0.15 when you return your car. So let say you need to drive 20K miles a year, at the end of the 3 yr lease, you will owe 60K-36K=24K  $0.15/mile, that equals to owing $3,600 when you need to return the car. Let say you don't have $3,600.00 cash to pay just to return the car, that means you HAVE to buy the lease off. Imagine if you have a high residual value compared to the used car market at that point, you basically are forced to buy an expensive used car. Personal experience, my co-worker leased 97 a civic LX and went over mileage. She doesn't have cash to pay the over mileage in order to return the car, so she got a 12% loan to finance her $15K residual value on a civic LX with a lot of mileage on it (more than used car market). She was totally screwed. So basically, if you want to lease a car that is your second car, so you can keep the mileage low; and a car that have good resale value, which translate to higher residual value; and you are pretty certain that you will return the car at the end of the lease, then lease is for you. If your car is your primary car, then you need to worry about the mileage. And if the car does not have a good residual value, you payment won't be too much lower than a loan payment. And if you want to keep the car at the end of the lease, you should just get a loan to finance car because the loan usually have lower interest rate even if it is a 60 month loan.
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