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Prices Paid: Buying & Leasing Experiences Mazda CX-9 Prices Paid and Buying Experience
2192 messages, Last post on Nov 28, 2009 at 5:58 PM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
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Replying to: slin30 (Oct 25, 2007 9:11 am)
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Replying to: madscientist3 (Oct 28, 2007 5:52 am)
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Replying to: c_bag (Oct 28, 2007 6:16 am) Obviously, if the financing was $488 at 2% over invoice,and I'm trying to get the payments lowered to 400 per month, its a good deal. (invoice at that rate would be $424 a month.) Either way, the sticking point is the dealer wants to build the term left on my lease into the cost. I need to know if this is a real cost to him.
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Replying to: madscientist3 (Oct 28, 2007 6:40 am) The other thing is that most people think that when you sign a lease, you're going to owe 100% of the payments, no matter what. This is rarely the case; MOST leases have an early termination clause. It can vary, but typically, you have to pay the difference between what you've already paid for in terms of depreciation versus what the vehicle is really worth plus a penalty which can be anywhere from a couple hundred bucks on up to maybe a grand. Remember, with a lease, you're basically paying off the depreciation between what your car was worth when brand new and whatever they estimated it to be worth at the end of the lease (your residual) plus what amounts to interest (they DO have to make money on the financing, of course). Now, if you've got a 3 year lease and it is now only 2-1/2 years into it, your car is probably worth somewhat more than what your residual is. So they basically look at what your car is worth now (compared to the residual) and how much you've already paid against it and then charge you the difference. So if your residual is $10,000, the car is now worth $12,000, it was $20,000 when new, and you've already paid off $7,000, in most cases, you basically have to pay off the difference between $13,000 ($20,000 new minus $7,000 paid off so far = $13,000) and what it is worth now ($12,000) so you'd have to pay $1,000 plus whatever early termination penalties there are (maybe $500). Then you can return the car and that's that. That's a bit of an oversimplification (because it goes by the current buyout and not exactly "what it is worth") but gives the basic idea. Another option of most leases is an early buyout. Sometimes, there's a penalty, sometimes there isn't. Basically, you can usually buy out your lease at any time and then own the car. You can either keep it or sell it and if it is truly worth more than the buyout amount, you can make a profit. Chances that the dealer is going to do that are slim to none because the buyout is likely going to be more than the car is worth unless they REALLY got the residual wrong (way too low). In other words, the dealer would be buying your leased vehicle for more than it is worth and then trying to sell it. They'd never do that. And as I said, most leases provide a less expensive way of terminating the lease early as compared to simply the total of the remaining payments. So likely, the dealer has found out the current early termination amount from your current lease. And then they're including THAT amount (probably plus some profit for their troubles) into the purchase price of your new vehicle. So effectively, you're paying some for your existing vehicle as part of your new one. You can't just look at the "paying $x per month with $x down" as "the deal" because it isn't; it is the sucker's deal. The DEAL is the ENTIRE transaction... the purchase price, options and fees, the term, credit for any trade-in, and the interest rate. THAT'S the deal; the rest is just math. "$x a month" doesn't say anything about whether you're being had on the price of the car, whether they're stuffing extra charges in it, or whether you're getting had on the interest rate. I'm wondering WHY you'd want to get out of an existing lease early when that basically means you're throwing away money. If you just can't afford that vehicle anymore and are getting into a cheaper one, then that may make sense. Or if you're getting a deal on a new car that you would NOT be able to get later on that justifies the extra cost (I did that once; got a new vehicle with 2 months left on an existing lease because in 2 months, I'd be in a new model year that would cost SIGNIFICANTLY more and would cost far more than the extra two months of lease payments). Other than that, it just makes really poor financial sense. Even if you WANT a new car, unless the Pilot is just completely unusable for you, your best FINANCIALLY would probably be to WAIT until your lease is either up or close to up before buying a new vehicle.
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Replying to: warever (Oct 28, 2007 11:12 am) If you wait until your lease is up you have to pay wear and tear and excess milage charges. If you can find a dealer to take it off your hands as a trade, your much better off. Besides, if you wait until the lease is up, your in a desperate position to buy a car. I'd rather have the leverage of being able to walk out the door and still have a car. These are a few reasons why I'm not leasing my next car.
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Replying to: kyfdx (Jan 21, 2007 8:01 pm)
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Replying to: jintorcio (Oct 28, 2007 1:48 pm) |
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Replying to: seloo (Oct 23, 2007 1:47 pm) 07 CX-9 $0 under invoice. At invoice. 08 CX-9 $500 under invoice. Includes rebates. Keep posting those good deals.
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I'm looking at buying a 2008GT CX-9, and don't know much about Mazda. What is the relationship between Ford and Mazda? What major parts of the CX-9 are Ford parts? Do you think one could get as much wear out of a CX-9, and as little long term problems as you may with Pilot or Highlander? I'm looking at 2008GT CX-9 with moonroof and Bose package. Any feedback on quotes or what you paid is greatly appreciated! Thank you!
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Replying to: nm1675 (Oct 28, 2007 7:19 pm)
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