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Mazda3 Lease Questions

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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?
  • bstein81bstein81 Posts: 1
    Hi Carman,

    I was wondering if you knew what the current residual/money factor is on the 2006 Mazda 3 Grand Touring - 4 door. I am in the Maryland/DC area and am looking to do a 36 or 39 month lease at 12K miles/year. The MSRP of the model I'm interested in is 22,010 + destination charge of 550. The invoice is 20,620.

    Thanks,

    Ben
  • qbrozenqbrozen Posts: 16,889
    Does anyone know the MF and residual on the current 24 month deals Mazda is running on the 3s hatchback? The deal is for 12k miles, but I'd want 15k. How much does that change the deal?

    I'm specifically interested in a Touring 5-speed with moonroof package and leather, which is also different from the advertised deal (Touring automatic).

    I'd like a Grand Touring, but edmunds doesn't list that as having a lease deal. Is it true that there are no special offers on the GT?

    '13 Stang GT; '86 Benz 300E; '98 Volvo S70; '12 Leaf; '08 Town&Country

  • qbrozenqbrozen Posts: 16,889
    Audia8q was kind enough to provide me with the following info on the 3 hatchback via email:

    24month 15K miles
    Touring...64%
    GT...62%

    add 2 points for 12K miles year
    add 3 points for 10.500 miles year
    deduct 2 points for manual trans.

    Money factor is .00102 for both. This is tier 0 or 1 which is the best rates.
    $595 acquisition fee....can be built in or paid upfront.

    program runs thru 5/31/06.

    '13 Stang GT; '86 Benz 300E; '98 Volvo S70; '12 Leaf; '08 Town&Country

  • z71billz71bill Posts: 2,000
    A .00102 money factor is less than a 2.5% interest rate (money factor X 2400 = interest rate)

    Sounds like a very good rate -

    Mazda also wants a $2,000 down payment PLUS a $250 security deposit.

    I worked (as the CFO) for a leasing company for 3 years - So I have looked at leasing a car many times -if I bought the car at the end it always ended up costing more - but that was back when interest rates were more like 12% - also back then most leases just required the first and last months payment and a security deposit - no $600 fees or $2K down payments. I always thought it was one of the advantages of a lease - no money down - but so many companies got burned by people walking away after only a year that the leasing company added a down payment. They always say its to lower your monthly payment - even when they are telling the truth they can also lie!

    BTW = by costing more I don't mean just the monthly payment amount VS a loan - because if that is all you are looking at then the lease will (almost always) have a lower payment.
  • audia8qaudia8q Posts: 3,138
    Mazda also wants a $2,000 down payment

    Not true. They don't require any down payment unless the buyers credit is lousy or the buyer wants to 'buy' a lower monthly payment. They often run ad's with down payments but its to hit a specific payment....not because it's required to get a lease.
  • z71billz71bill Posts: 2,000
    I am only going by what Edmunds has for the Mazda3 lease program - but like everything the terms can always be changed.

    I have seen a 24 month lease with no money down and no payments for 23 months - leaving one payment in month 24 - but it was more common to have a one payment lease - all paid up front - this was used by people who had nice cars that were paid off so they had a bunch of equity - they could trade their 2 year old car in - lease a new car and pay next to nothing (sometimes they even got a check).

    I have nothing against leasing - it can work out great - but you need to be very careful - educate yourself a little so you understand what the true cost will be - and if you don't understand everything then ask someone you trust that does. It is another chance for the dealership to do what they do best - which is - take more of your money.
  • ttintinttintin Posts: 8
    Greetings! I spent some time at a dealer a week ago trying to get my bearings on the cost of leasing a Mazda3 Grand Touring trim (with navigation system & moonroof/Bose package). The very best I was offered was $450 per month w/ $1,500 drive-off (practically no down payment). Supposedly, this was already some sort of employee discounting. I currently have another lease I am trying to get out of, that they were willing to pay off for me, however, obviously, I am very much "upside down" going into the lease. How do these terms compare with what's out there? Thanks for your time.
  • qbrozenqbrozen Posts: 16,889
    $450 is ALOT to pay for an economy car, IMHO.

    how many months is that? why are you trying to get out of your current lease? I ask this last question because it would seem to me that, if one lease did not work out for you, most likely another won't, either. (unless you've simply realized you need 4 doors or something like that)

    '13 Stang GT; '86 Benz 300E; '98 Volvo S70; '12 Leaf; '08 Town&Country

  • ttintinttintin Posts: 8
    We were dealing for a 36-month lease. I don't really need to get out of my current lease. It ends in December of this year. I was just testing the waters to see what the dealership would be willing to do for me to get me into the Mazda3. I guess it's so popular that they don't really care too much to make me happy. The main reason why I am going into the Mazda3 is for the MPG, supposed reliability & amount of options available for a small amount of money.

    May I ask a question? Taking into consideration the popularity of the car, what is a decent monthly payment I can expect to make with no down payment? (Taking my current lease out of the equation?)
  • qbrozenqbrozen Posts: 16,889
    well, if you look back here:
    qbrozen, "Mazda3: Lease Questions" #34, 12 May 2006 11:14 am

    you'll see the numbers for the 3 hatch (i'm not sure if this applies to the sedan, but I would not be surprised if it does since mazda is offering deals on those, too).

    So let's say your MSRP is $22,810 and invoice is $21,148. I'd say $150 over invoice is doable, giving you a cap cost of $21,300. let's say you are looking for 15k miles per year, a stickshift, and we already know about the nav. Given all of this, I'm going to assign a residual value of 58% ($13,230).

    I come up with $441.72 with zero down and including 6% tax.

    This is about as bad as it gets. If you go with an automatic, that ups your residual. If you go with 12k miles per year, that ups your residual. If you go without NAV, that ups your residual.

    So, here we have almost the $450 you were quoted, BUT its ONLY FOR 24 MONTHS. And, of course, ZERO DOWN. so paying $450 for 3 years with money down is pretty bad when compared to this 2 year deal.

    '13 Stang GT; '86 Benz 300E; '98 Volvo S70; '12 Leaf; '08 Town&Country

This discussion has been closed.