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Mazda3 Lease Questions

CarMan@EdmundsCarMan@Edmunds Posts: 38,515
edited January 15 in Mazda
Hi everyone. Please use the following discussion to post any questions that you have about leasing a Mazda3. Thanks.

Car_man
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  • Hi,

    I posted this in the general lease forum, but perhaps it would be better here...

    I'm looking to lease a 2005 Mazda 3 (manual transmission, 5 door hatch/wagon) for 24 months. What type of deal on a lease should I work towards or expect? I'm located in the SF area of California if that helps.

    Thanks.
  • Hello halo19. Yes, this would be a better place for this question. We are beginning to transition from one large lease questions discussion to many model-specific discussions. Mazda is not currently providing any sort of lease support on the Mazda3. As a result, you may find that you are able to get a lower payment on one by leasing it through an independent bank than you would be able to by leasing it through Mazda Credit. I do not personally follow the lease programs of independent banks, but I can tell you how to get a good deal. Negotiate the lowest possible selling price on the Mazda3 that you are interested in. You may want to stop by the following discussion to get an idea of how much you should pay for this car right now: "Mazda3: Prices Paid & Buying Experience". Once you have an idea of the selling price that you want to pay, it wouldn't be a bad idea to comparison shop with a few dealers to see which one provides you with the most attractive lease payment using that price.

    Car_man
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  • z71billz71bill Posts: 2,000
    The 24 month term will drive the payment up THROUGH the roof - not sure why a 2 year term is required - but if you can extend out to 36 (48 even better) you will have a much lower payment.

    I know that some very high end cars - Ferrari & Porsche - will be leased for 24 or even 12 months - but that is normally the super rich who just want the latest toy.

    Its been close to 20 years since I was in the leasing business - so I am sure my numbers are not 100% accurate - but on a $20K MSRP car your payment on a 48 month lease will run close to $350 a month - take that down to 24 months and the payment will be at least $500 a month. They will also try and squeeze the number of miles allowed per year down to 10,000 - many longer term leases will be offered at 12-15,000 miles per year - but like everything else its negotiable.
  • Bringing this over from the Gen Pricing Forum:

    Just getting into the 3 pricing and whatnot, but I've been looking to lease. We only have one local Mazda dealership around here, and the salesman quoted me around $339 a month for a 3S Touring 06 model. That seemed REALLY off to me for a 48 month lease, considering for a Cobalt, which was just around $1000 less the monthly payment for the same term was less than $230.

    I wanted to see if I could find the Money Factor and residual so I could compute the lease price myself but I'm having no luck. Any suggestions on the next course of action here would be very appreciated.
  • Hi casandranow. The problem with leasing a Mazda3 is that Mazda is not currently providing any sort of lease support on it. As a result, the lease money factors that you would have to use to calculate your car's monthly payment are fairly high, around 7.5% for consumers who qualify for Mazda's top credit tier. These rates seem especially high when they are compared to the special lease rates that are available on a number of other models, like the Chevrolet Cobalt that you mentioned. If you were to lease a 2006 Mazda3s Touring Sedan through Mazda Credit right now for 48 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00315 and 42%, respectively.

    Car_man
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  • crg4crg4 Posts: 8
    Car_man,

    How would these numbers, the residual and money factor, change for the same car - an '06 Mazda 3s - for a 36month/12k/yr. lease?

    Thanks in advance!
  • Hey crg4. Unfortunately, the lease program for a 36 month lease of this car isn't any better. According to the latest information that I have seen, if you were to lease a 2006 Mazda 3s through Mazda Credit right now for 36 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00315 and 57%, respectively.

    Car_man
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  • Hi, I recently leased a 2006 Mazda3 Touring (4dr) with .00225 money factor and 54% residual value for 36mo/12k mile per yr. and monthly payment came out to $292/mo. How's this deal?
  • Hi hoyzhou. You never mentioned the selling price or MSRP of the car that you are interested in leasing. These are important numbers for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing this car's selling price in relation to its MSRP you don't know how much of a discount you are getting on it. The second reason is that one needs the selling price and MSRP, including the destination charge, of a vehicle to calculate its lease payment. I would be more than happy to give you my opinion on the deal that you got if you let me know what these numbers are.

    Car_man
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  • d_r_gd_r_g Posts: 1
    Hi Car_man,

    Could you please help me find out the latest residual and money factor numbers for a Mazda3s Touring 5-door automatic, for 12K/yr and 36, 39 and 42 months? Trying to help my sister decide what she can afford to lease ...

    Thanks,
    David
  • Car_Man,
    I have an offer from a dealer for the subject car of $17484 (base car with Auto and ABS), MSRP is $19365. With that in mind what should I be looking at for a 39 month lease with $0 down and 12K miles?
  • Hi David. I'd be happy to help you out. If your sister was to lease a 2006 Mazda3 Touring 5-Door through its captive finance company right now for 36 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00315 and 52%, respectively. As you can see, it does not have a very attractive money factor. I haven't seen any info on 39 or 42 month leases of this car, but I can tell you about its 48 month lease program if you would like.

    Car_man
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  • Greetings deejay2099. According to my calculations, if you were to lease a 2006 Mazda3 S 5-Door with an MSRP of $19,365 and a selling price of $17,484 through Mazda Credit right now for 36 months with 12,000 miles per year, its zero down, pre-tax monthly payment should be around $293. I worked up a 36 month payment for you because I don't believe that Mazda is offering 39 month leases on this car right now.

    Car_man
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  • I am coming off a three year lease on a 2003 passat.

    I have read so much good about the MAzda3

    yet my emails to dealers asking for lease deals have gone unanswered.

    Is there any way to get a good lease deal on a MAzda3 (like the ones offered on jetta/passat, even saab 3 and audi4)

    should i wait until after jan 3 (when all the current manufacturer deals end) for better deals in jan...does history show greater incentives in january?

    thanx
  • mazda6smazda6s Posts: 1,901
    The Mazda3 is selling very well so I wouldn't hold your breath for a good lease deal.
  • Hi murphy123. Unfortunately, Mazda's current lease program on the Mazda3 is not nearly as attractive as the leases that Volkswagen has been offering on the Passat, Saab has been offering on the 9-3, or Audi has been offering on the A4. Given the lack of lease support that is available on this car right now, it couldn't hurt to wait until after January 3rd to lease one. Its lease program can't get much worse. I certainly would finance or pay cash for this car rather than lease it right now. As the previous poster said though, don't hold your breath for an unbelievable lease on this car.

    Car_man
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  • Carman,

    Thnaks very much for your frank appraisal of the MAzda lease program. I will watch for developments this month...but won't be holding my breath!

    Cheers
  • Car_man, I am looking for the residual and money factor (top-tier money factor if possible) for a 3 year, 12K mile a year lease on an 05 Mazda5 Sport with auto transmission. (I'm comparing this to the Escape lease offer going on now--I test drove and liked both vehicles). Also, if you know how much Mazda's various lease fees were, that would be useful too.

    I don't see a forum for Mazda5 lease questions, so please pardon me for posting this here. Thank you so much for your help, and pointing me on to some good leasing resources on Edmunds.

    Charlotte
  • You're very welcome, murphy123.

    Car_man
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  • Hi Charlotte. I guess that we don't have a Mazda5 lease discussion yet, do we? Let's take a look at the current lease program for the vehicle that you are interested in. According to the latest informaiton that I have seen, if you were to lease a 2006 Mazda5 Sport through Mazda Credit right now for 36 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00315 and 51%, respectively. When negotiating your lease on this vehicle, keep in mind that Mazda is providing $1,000 lease cash on it this month. This money will help you to negotiate an attractive capitalized cost. As far as Mazda's fees on leases go, the last time that I saw it, its acquisition fee was $475. In addition to that, you would have to pay a security deposit. I don't believe that Mazda charges a disposition fee.

    Car_man
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  • Thanks so much, Car_Man! The $1000 lease cash is great, and I have Mazda's S-plan, too, which I assume I can use in conjunction with the lease cash in negotiating a capitalized cost, right? This may work out well, I hope.
  • No problem, charlotte7. Yes, you should be able to use the S-Plan pricing as your car's capitalized cost if you decide to lease.

    Car_man
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  • Hello, everyone!
    I'm hoping someone can help me out: I am considering a 2006 Mazda 3i 4door sedan w/ touring (white/tan gut :shades: ). The local Mazda dealership (Partyka Mazda in Hamden, CT) told me about Mazda's AVP Plan (Assured Value Plan). Evidently, it's somewhat like a lease agreement but I will own the car -- it is in my name.
    Does anyone know anything about this plan? What are the pros and cons?
    Thanks!! ;)
    -CarCutieCT
  • aviboy97aviboy97 Posts: 3,159
    CarCutieCT, I am a CT dealer as well. I can shed some light on the subject for you.

    The way you pay for the vehicle, it sounds like a lease, but it is not a lease. It is a finance. Your monthly payment is like a lease, and you do have mileage restrictions. i.e. 12K or 15k per year.

    Pro's are you do not have to pay a bank fee, security deposit, acquisition fee. Also, the vehicle is registered in your name, so you may get an insurance break. You may trade this vehicle in at any time, unlike a lease, where you may have to go over your contract to see if you can do so. At the end, you can pay the "balloon" payment if you choose to own the car out right, or finance that balance, or just turn the car in. If you are over miles, I believe it is 18 cents a mile.

    Con's are not that significant. You do pay more over time as opposed to a general finance. You also pay sales tax on the full amount of the car, as opposed to just a portion like a lease.

    I think I about covered it, I may have left a few out, but, I believe I listed the major ones. I hope I have helped you.
  • audia8qaudia8q Posts: 3,138
    Aviboy did a good job of describing the basics of the AVP vs a lease.....but I have a question:

    Why not just buy the car? If the answer is "thats the only way I can afford the payments" you need to review closely what your doing and get a complete understanding of the contract your about to sign.
  • gambo384gambo384 Posts: 2
    Hey, Here's what's on the table for me. I can lease a Mazda3i(touring) for $174/month for 24months/12k per year or $205 for 36 months/12k per year. Buying the car would be around $270/month. I would like advice on buying vs. leasing and if leasing, which term ?? Here's some info, MSRP of the car is $19,200. I am using my S-Plan pricing so that brings the car down to around $18k. I will be putting down $4500. What do you think??
  • slate1slate1 Posts: 84
    If you finance at $270/month for 5 years you will have invested an additional $8,820 in payments over leasing at $205 for 3 years:

    $270/month for years 4 & 5 = $6480
    Additional $65/month for years 1 - 3 = $2340

    According to Edmunds "True Cost to Own" estimations, your $19,200 car would be worth $8256 at the end of the 5 year term if you buy.

    So, essentially, if you lease @ $205/month for 36 months you will have invested a total of $11,880 and have $0 in equity once you turn the car in.

    If you buy at $270/month for 60 months you will have invested a total of $20,700 and have around $8200 in equity in your car remaining. However, the price of that $8,200 in equity has been the additional $8,820 you've paid over years 1 - 5. So, you've basically got $0 (or, really -$620) in equity at the end of the buying period as well.

    What it really boils down to is how long you want to be tied to a particular car and, especially, if 12k/year is going to be enough for you. I always buy my cars because I don't want the mileage restrictions and, mostly, because I tend to keep cars for 8 - 9 years.
  • aviboy97aviboy97 Posts: 3,159
    Only finance if you plan on running the car until it has well over 100k miles. So, that would equate to 7-11 years, depending upon the mileage you drive.

    If you feel the need to have a new car every few years, lease, or else you stand the chance of being in an inescapable negative equity situation if you finance, and get a new car every few years.
  • gambo384gambo384 Posts: 2
    Basically, I am looking to lease because it will give me a few years to stock pile some money. If I buy now, I can afford the $260 per month, things would just be a little tighter than I prefer. I'm looking at the 2 or 3 years as a period to save while having a low payment on a brand new car. Also, I anticipate buying the car after my lease is up and keeping it for 5-7years....Thanks for the advice guys, keep it comin'!!
  • atlgaxtatlgaxt Posts: 487
    I was looking through the history of this thread, and I saw repeated references that Mazda does not have a good program for the 3. Within the past month or so, I have seen some of the Atlanta dealers offering what appear to be fairly aggressive deals. Have there been any recent changes?
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