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Mazda6 Lease Questions

CarMan@EdmundsCarMan@Edmunds Posts: 38,515
Hi everyone. Please use the following discussion to post any questions that you have about leasing a Mazda6. Thanks.

Car_man
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  • Hi i just wanted to know if anybody knew the current money factor and residual on an 06 mazda grand touring S. I've been to a couple of dealers but they all seem to give me differet numbers. Thanks
  • Hi jhandal. I would be happy to help you out. You never mentioned how long you want to lease this car for or how many miles per year you need to be able to drive it, so for now I will give you the info for a 36 month, 15,000 mile per year lease. Let me know if the lease that you are interested in is different. If you were to lease a 2006 Mazda6 GT sedan S through its captive finance company right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00211 and 48%, respectively.

    Car_man
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  • Car man,
    Could you please post the money factor and residuals for the new Mazdaspeed 6 in both the Grand and Sport models?

    Thanks a lot!
  • audia8qaudia8q Posts: 3,138
    Car_man....

    just FYI....the .00211 rate is based on the very best credit and not everyone will qualify. Also there is lease cash that varies per region. In the northeast it's $2000
  • Here you go, rtadams. You never mentioned how long you want to lease this car for so for now I will assume that you are interested in a 3 year lease with 15,000 miles per year. Let me know if you want a different length or mileage allowance. According to the latest information that I have seen, if you were to lease a 2006 MazdaSpeed6 Grand Touring through Mazda Credit right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00148 and 44%, respectively. The numbers for an otherwise identical lease of a 2006 MazdaSpeed6 Sport should be .00148 and 45%. Both of these money factors assume that you qualify for Mazda's top credit tier and pay a security deposit. When negotiating your lease on this car, make sure to keep in mind the fact that Mazda is currently providing $1,200 lease cash on it. This incentive will help you to negotiate an attractive capitalized cost.

    Car_man
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  • Very good point, Rich. You are absolutely right. I normally provide community members with information on the money factor for banks' top credit tiers, but not everyone will qualify for them. Furthermore, consumers are usually required to pay a security deposit to qualify for the factors that I mention. Many banks will waive their security deposit requirement in exchange for a slight increase in the money factor that is used. Thanks for the info on the lease cash as well.

    Happy Holidays,

    Car_man
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  • Have the numbers for the MS6 GT changed at all? I have a quote from a dealership for the MS6 GT with a negotiated price of 29700 (car+moonroof), 39 mos at 15K/yr, and a monthly payment of $412 with 4667 down (I guess basically throwing 3000 at the car & the rest financing fees, first month, security, etc.). When I do the calculations given the dealership's figures, I come out with something different (like 388 a month!). What am I missing? Thanks very much, Car_Man!
  • Hi masscounsel. I haven't seen a 39 month lease program for this car, but Mazda Credit's current 36 month, 15,000 miles per year buy rate lease money factor and residual value for the 2006 Mazda6i GT Sedan are .00223 and 48%, respectively. When negotiating your lease on this car, keep in mind that Mazda is currently providing $1,000 lease cash on it. This money will help you to negotiate an attractive capitalized cost. I can't double check the lease payment that you were quoted without knowing what this car's full MSRP is. If you let me know, I'll work up a payment on it for you.

    In your post I notice that you mentioned you are making a $3,000 down payment on this car. I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your Mazda6 would be exactly the same, regardless of whether you had put $3,000 down, or had made absolutely no down payment at all.

    Car_man
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  • So I just finished a lease for a mazdaspeed6.
    I wished I head done more research on leasing, but since my mindset was to buy the car, I didn't bother.

    Going over the numbers, I noticed that the car was basically 1K over MSRP.

    In hind site, I was focused on getting a decent monthly payment that I didn't pay attention to the numbers before signing (didn't notice the extra $640 in doc fees as well).

    question for the future:
    My question:
    1. Is the cap cost fixed when leasing, or is it a negotiable value.
    I was given the impression that I could not negotiate the cap cost (it was fixed).
    After reading this thread, I assume that is not the case.
    Is the residual based on the negotiated cap cost or is it a fixed rate?

    2. If I buy out the lease, do I still have to pay the rent charge or do I only have to pay the residual at the time I buy it out?

    3. Is there time period to wait before I buy the lease out?

    Thanks.
  • The dealer just called me and said that I hadn't signed some contract regarding the mileage of the lease.
    Is this something I can use to try to get back my doc fees?
    I'm assuming we can't re-do the numbers of the car, but possibly some other concessions, like a lower price for my mp3 upgrade?
  • I'm sorry to hear that you don't feel as though you got a good deal on your lease, duhfool. The selling prices (aka capitalized cost) of leased vehicles are absolutely negotiable, just as if you were to finance or pay cash. Vehicles' residual values are based upon a percentage of their full MSRPs. This percentage is chosen by the bank that you are leasing through and individual dealers do not have any authority to alter it.

    I am sorry to say that it is usually fairly expensive to get out of leases well before their scheduled end dates. In order to do so, you need to purchase the vehicle that you are currently leasing from the bank that you are leasing it through. It often turns out that it costs more to do so than your vehicle is worth on the open market. Furthermore, many banks expect consumers who end their leases early to still make all, or at least the depreciation portion of their remaining lease payments. As you can see, this can get very expensive.

    You can determine approximately how much it will cost you to get out of your current lease by comparing its purchase price to its value on the open market at this time. You should place a call to the bank that you are leasing your vehicle through to find out its exact price. Once you know exactly how much money it is going to cost you to buy your leased vehicle you need to compare it to its current value on the open market. You can find out approximately what your vehicle is worth by looking up its Edmunds.com True Market Value in the Used Vehicle Pricing section of this site. You also may want to stop by the following discussion: "Real-World Trade-In Values". One of our most knowledgeable community members, Terry, frequents that discussion and he is often kind enough to give community members who give him an accurate description of their vehicles with his opinion on their value. Don't forget to check to see if you are still on the hook for your remaining lease payments. The difference between your leased vehicle's current value and how much it will cost you to buy it plus any remaining lease payments that you are obligated to pay will equal the cost of getting out of your lease right now. You may find that you are better off waiting until you are closer to the scheduled end of your lease to buy your car out or get a new one.

    Chalk this up as a learning experience. You will be much better prepared the net time you lease a new vehicle.

    Car_man
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  • Hello Car_man,

    I’m seriously looking into leasing a 2006 Mazda6i automatic with the Grand Sport package. Before last week I hardly knew a thing about leasing. I’ve been doing research, but I still have quite a few questions that I’m sure others out there might benefit from. I would like to understand some things more clearly before I go price quote hunting and negotiating. Any help would be greatly appreciated.

    For the 2006 6i Grand Sport with automatic transmission, do you have numbers on the money factor (my credit score is on the high side) and the residual value for a 36 month lease and both 1,200 and 1,500 miles per year? Are they offering 36 month leases, or do I have to go with a 39 month term?

    What’s this “lease cash” you’ve been mentioning from time to time? Is it cap cost reduction off the sticker price? If so, does this mean we have a chance to negotiate beginning with a price that equals invoice price minus the "lease cash" amount? How is this different than cash-to-customer and cash-to-dealer rebates?

    About the True Market Value (TMV) price, what exactly is it, or close to, among the following?:
    1.Gross Cap Cost (the selling price you negotiate
    with the dealer)
    2. Gross Cap Cost plus any add-on fees and taxes
    3.“Net Capitalized Cost” aka “Adjusted Cap Cost”, where Net Cap Cost = the Gross Cap Cost plus any add-on fees and taxes, minus any Cap Cost Reductions (down payment, trade-in, or rebates)

    What I’m finding out to be really tricky is that (at least from what I understand) sometimes these miscellaneous add-on fees are already included in the Gross Cap Cost, and sometimes they’re not, so I would hope the answer is at least #2. #3 would be more useful if it involved only rebates since we consumers have no control on other consumers’ downpayments and trade-ins. Since monthly payments are going to be based on the Net Cap Cost, and not the Gross Cap Cost, our goal when negotiating is to focus on the Net Cap Cost. The TMV can be helpful, but the Cap Cost Reductions will have to be considered when negotiating if they’re not already factored into the TMV. Now according to Edmunds, the TMV for the car with the options I chose is about $900.00 less than invoice price. Does this mean that when negotiating I can reasonably set my first offer to something like $1,500 to $2,000 below invoice?

    From the articles I’ve read, it seems that if you’re leasing, you have to settle for what is already in the lots. I’m satisfied with all the bells and whistles that the 6i Grand Sport comes with, except that I also want to add the remote engine starter option. Is this a big deal to add to a car that’s already in the lot… in other words, would I be losing negotiating leverage if this I want this added? Would I also therefore have to wait a month or so for my ordered car to arrive? It would seem to me that the task itself of adding the remote starter is no big deal, but the repercussions of doing that may be a big deal.

    Do Mazda leases include gap insurance, and is it part of the Gross Cap Cost?

    What’s the best site to use to go look for quotes? (if you’re allowed to answer this one ;) ).

    Thanks!
  • I meant to say 12,000 and 15,000 miles per year. ;)
  • gmcjoegmcjoe Posts: 11
    Let me try to answer one part of your question. The remote engine starter is a dealer installed option. It can be added to any automatic transmission equipped Mazda6 on the lot. You may special order a Mazda6 with the remote start option, but it would be installed at the dealer anyway. It's an OEM dealer installed Mazda accessory. I have one on my 2006 6s Grand Sport 5-door. Since the 2006 has a "switchblade" style key with built-in transmitter, the remote engine starter option adds a second single-button transmitter (unlike prior model years). If you were inclined to build a Mazda6 from scratch and special order it, expect to wait anywhere from two to three months for delivery (I've been there). Good luck with your lease negotiations.
  • Greetings mittbb. If you were to lease a 2006 Mazda6i Grand Sport Sedan through Mazda Credit right now for 39 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00223 and 47%, respectively. Mazda's 12,000 mile per year residual value would be 2% higher. I don't believe that it is currently offering 36 month leases on this car, so if you want one for close to 3 years you will have to go with the 39 month term.

    The lease cash that I have mentioned, specifically $2,000 on the car that you are interested in, works just like normal customer cash would but it is compatible with Mazda's special lease program. Make sure to negotiate the lowest possible selling price that you can for this car, taking into account this lease cash into account.

    Edmunds.com's True Market Value supposedly represents the selling price that consumers are paying on average for this car. If you are a savvy consumer and shop around you should be able to get the Mazda6 that you are interested in for less than its TMV price. The price that you negotiate will be your car's capitalized cost. If this car's TMV is less than dealer invoice it means that the cash incentives that are currently available on it are being taken into account.

    Dealers are always more anxious to sell vehicles that they already have in stock than ones that they have to order. This is because they can provide immediate delivery of an in stock vehicle, but they risk having deals on ordered vehicles fall apart between the time that the deal is agreed to and when the car arrives. Furthermore, dealers have to pay "floorplan" interest on the vehicles that they have in inventory. The sooner they sell the cars that they have, the sooner they can stop paying interest on them.

    Many banks automatically include gap insurance in their leases. There is a good chance that Mazda Credit does, but I do not know for sure that this is the case.

    Car_man
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  • Thank you for your replies, gmcjoe and Car_man. That helps clarify some things.

    Just a couple more clarifications if you don't mind. I've seen conflicting information regarding how the residual value is calculated. Most sites state that it based on MSRP. A few other sites, including alg.com say it's based on the adjusted (net) cap cost. Which is the norm? If the dealer claims that the leasing company normally uses the adjusted cap cost, should I call him/her out on it? In the event that I have no intentions of buying the car after the lease expires, I would therefore want the residual value to be based on MSRP so that I can have lower monthly payments.

    So that $2,000 lease cash you mentioned is the unadvertised manufacturer-to-dealer rebate? This does not include any advertised manufacturer-to-consumer rebates, right?

    Thanks again for your time!
  • You're very welcome, mittbb. I'm surprised that ALG.com would say that vehicle's residual values are based upon their adjusted capitalized cost. Vehicles' residual values are always based upon a percentage of their full MSRPs, including destination charges and any options that can be residualized.

    I don't believe that Mazda advertises the lease cash that I mentioned, but given the fact that you are aware of it you should be able to get the dealer that you are working with to take it into account on your deal.

    Car_man
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  • My girlfriend is looking at a NEW Mazda 6gta 2005 MSRP $2800 and A Mazda 2006 GTA MSRP $28430.

    I got the dealer down to $23,500 on the NEW 2005 and when I mentioned Lease he clamed up. I know that Mazda is offering $3000 cash back on the New 2005 Mazda 6's I was think with dealer customer loyalty cash of $2,000 I could get this car for $20,000-$21,000 am I out of line. Also, I was wondering what a risidual would be on a new 2005 and the current money factor on a 36 month lease and a 39 month lease.

    She is also turning in a 2003 Mazda Tribute with 30,000 miles on it.

    Thanks
  • Does anyone know the current money factor and residual for a 2006 Mazda6S GT Automatic MSRP 27,820 cap reduction around $25,280 (not including current rebates) for a person with good a credit score 780?

    Also are there new rebates for March and if so what are they?

    Thanks
  • mittbbmittbb Posts: 8
    Hello Car_man,

    I’ve been keeping an eye on the local dealer inventories, and I’ll be requesting price quotes very soon. With the change of month, I’m guessing that there will be different residual values, money factor and rebates (I live in the northeast) for the lease I’m considering. So if you don’t mind, can you tell me what they are this month for the same car and conditions?:

    2006 Mazda6i automatic with the Grand Sport package.
    39 month lease with 12,000 and 15,000 miles per year allowance.
    My credit score is very good.

    Another thing I had forgotten to consider is this “destination charge”. From what I’ve read, you have about zero chance in negotiating it out of the total cost. Is the destination charge already included in the sticker price, or will the final MSRP be the MSRP stated on Edmunds + the destination charge. If it is the latter, will the residual value be based on sum of the two figures or on the “base” MSRP?

    Thanks again!
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