Lease question - fair deal?

rjaustin

Hi. I live in Austin, Texas and just received the following quote on a new Mazda CX-5 GT:

$29,275 Capitalized Cost
10,000 miles / year
24 months
$0 down with first payment due at signing
69% residual value
.00090 Money Factor

Does this look like a good deal?

Is there a good reason other than lower monthly payments to go with a 36 month lease? In other words, will I save money overall by getting a more favorable deal?

kyfdx

rjaustin said:

I agree that the 36 month lease makes more sense. They quotes me MSRP: $29,275 and a lease at 10k miles /year for $540/month with first payment due at signing and no money down. The residual value was 69% on the 24 month lease and the money factor was .00090. The auto tax in Texas is:6.25%. From what I have here, the total cap cost would be: $29,401 (which includes all the doc prep, title fees, etc.) + .0625(29,275) = $31,230.69.

In Texas, with full taxation... you are crazy to lease for 24 months... You would be better off buying the car..

However, using your figures, I only calculate $506/mo, not $540.

And, using the same figures for the 36 month term (MF is just .00030 for 36) and 57% residual, the payment would be $418.mo.

kyfdx

rjaustin said:

Hi. I live in Austin, Texas and just received the following quote on a new Mazda CX-5 GT:

$29,275 Capitalized Cost
10,000 miles / year
24 months
$0 down with first payment due at signing
69% residual value
.00090 Money Factor

Does this look like a good deal?

Is there a good reason other than lower monthly payments to go with a 36 month lease? In other words, will I save money overall by getting a more favorable deal?

That's FWD, right?

Yes.. the best reason for getting a 36 month lease is the lower payment...

It's hard to say how good your deal is, because you don't give the MSRP.

Did they quote you a 36 month payment?

rjaustin

It's the two wheel drive version, so yes, FWD. The MSRP is $29,275. Here's a link to the exact car: http://www.mazdaofaustin.com/vehicle/new-2015-mazda-cx-5-grand-touring-1768925.cfml

I didn't request a 36 month payment. I tend to change cars every two years, but I would be willing to wait three this time if it's a smart financial move.

Thanks for your help!

kyfdx

rjaustin said:

It's the two wheel drive version, so yes, FWD. The MSRP is $29,275. Here's a link to the exact car: http://www.mazdaofaustin.com/vehicle/new-2015-mazda-cx-5-grand-touring-1768925.cfml

I didn't request a 36 month payment. I tend to change cars every two years, but I would be willing to wait three this time if it's a smart financial move.

Thanks for your help!

Is the CAP cost the same as the MSRP? A little unusual, but if everything is rolled into it (acq.fee, title license fees, etc), it could happen.. This vehicle has $1125 of lease cash, so if the CAP cost is the same as MSRP, that seems like a little too much.. It would help if we knew your state/tax rate and the payment that they actually quoted you...

To compare 24 vs. 36 months..

I calculate $422/mo.+tax for the 24 month term, assuming your parameters... and just $363/mo.+tax for the 36 month term.. If the selling price was discounted more, it would narrow that difference, but not by a lot..

As much as one would like to change cars often, it's expensive, especially if you are only using 10K/yr mileage.. A 36 month lease at only 10K/yr is pretty cost efficient, because you will still be under warranty and aren't likely to have any wear and tear issues like tires or brakes in only 30K miles.

rjaustin

I agree that the 36 month lease makes more sense. They quotes me MSRP: $29,275 and a lease at 10k miles /year for $540/month with first payment due at signing and no money down. The residual value was 69% on the 24 month lease and the money factor was .00090. The auto tax in Texas is:6.25%. From what I have here, the total cap cost would be: $29,401 (which includes all the doc prep, title fees, etc.) + .0625(29,275) = $31,230.69.

rjaustin

I agree. I spoke to the Finance Director of the dealer and discovered the lease quote given to me was incorrect. Thanks for your help. I signed a much better three year deal last night that I am very happy with. You are doing great work here.