It would mean a lot if you can help me with this lease. Is this acceptable?

11LEXI

I hope you're all doing well. I am so embarrassed but I have no clue what I am doing & everyone I've spoken to recommends this site! The lease deal I am being offered is...


2024 cx-5 2.5 S PREFERRED

36 month lease/10k miles per year

$495 a month

$1200 'down' = It's just the first payment & plates. They said taxes & fees are rolled into the monthly.

MSRP $30, 650

TOTAL MSRP $32, 025

Money Factor = .00231

Residual Value = 62%

Cap Cost = $33,306

Credit Score 750

Any help would be great!

ZIPCODE 60707

kyfdx

11LEXI said:

I hope you're all doing well. I am so embarrassed but I have no clue what I am doing & everyone I've spoken to recommends this site! The lease deal I am being offered is...


2024 cx-5 2.5 S PREFERRED

36 month lease/10k miles per year

$495 a month

$1200 'down' = It's just the first payment & plates. They said taxes & fees are rolled into the monthly.

MSRP $30, 650

TOTAL MSRP $32, 025

Money Factor = .00231

Residual Value = 62%

Cap Cost = $33,306

Credit Score 750

Any help would be great!

What is your location?

11LEXI

Zipcode 60707
Thank you for responding!

kyfdx

11LEXI said:

Zipcode 60707
Thank you for responding!

.00131 MF and 62% residual

Appears your money factor is marked up by a lot.. That adds $55/mo. to your payment.

Do you know the selling price? Are you getting a discount from MSRP?

11LEXI

Now they are telling me this deal & negotiating a bit more:

selling price = $29009

$439/mo

12k miles per year

$1200 out of pocket


For MSRP am I supposed to go by the Total MSRP or just where it says MSRP. I apologize.
Sticker says...

MSRP $30, 650

TOTAL MSRP $32, 025

kyfdx

11LEXI said:

Now they are telling me this deal & negotiating a bit more:

selling price = $29009

$439/mo

12k miles per year

$1200 out of pocket


For MSRP am I supposed to go by the Total MSRP or just where it says MSRP. I apologize.
Sticker says...

MSRP $30, 650

TOTAL MSRP $32, 025

MSRP for calculating the residual is the bottom line on the official Monroney sticker. Including destination and factory installed options. Which number is that?

A $60/mo drop in payment is great. And, instructive regarding how bad your deal was to start.

Do they have a new CAP cost to go with that selling price?
Is the money factor still .00231?

11LEXI

I really hope that works so you can see the sticker. But basically it says...

MSRP is $30,650

Plus $1,375 is the delivery, processing & handling fee.

So altogether with that it’s a total of $32,025


I feel so stupid I don't know anything. I have no one to go with me, I'm a female & they always rip me off
I am really grateful for you!

kyfdx

11LEXI said:

I really hope that works so you can see the sticker. But basically it says...

MSRP is $30,650

Plus $1,375 is the delivery, processing & handling fee.

So altogether with that it’s a total of $32,025


I feel so stupid I don't know anything. I have no one to go with me, I'm a female & they always rip me off
I am really grateful for you!

$32,025 is the MSRP

11LEXI

So do you think this deal is a green light & good to go? I really don't think they will go any lower I've had them drop it twice already.

$404 per month
36/12k

Michaell

11LEXI said:

So do you think this deal is a green light & good to go? I really don't think they will go any lower I've had them drop it twice already.

$404 per month
36/12k

I know it's more work for you, but the best way to know you're getting the best deal is to shop another dealer and see if they can beat the first dealers' quote.

11LEXI

You're amazing. Thank you so much. I am going to contact a few more dealers tomorrow for sure! I really am appreciative of your help

Michaell

11LEXI said:

You're amazing. Thank you so much. I am going to contact a few more dealers tomorrow for sure! I really am appreciative of your help

One last question - do you know your credit score? That could be the reason the MF is higher than the rate we've provided. Dealers will often use a MF for a lower credit tier until they've had a chance to run your credit.

11LEXI

Credit score is 750

Michaell

11LEXI said:

Credit score is 750

Perfect - you should expect to get the MF we've provided, then. Anything higher represents the dealer reaching into your pocket for more money.

11LEXI

Ugh, I love you. Thank you. I literally thought I was getting a great deal when I first spoke to them on Monday but when they told me the first deal it didn't feel right & I thought something was off so I started doing research. Every single person on Reddit recommended Edmunds & has been so helpful. I've learned SO SO much & holy sh*t am I happy I didn't go in & sign! They were practically begging me to go in ASAP & now I see why. What a terrible deal they were trying to give me. You are all angels for people like me who are CLUELESS & starting out! THANK YOU THANK YOU!

If I need more help can I come back here?

Michaell

11LEXI said:

Ugh, I love you. Thank you. I literally thought I was getting a great deal when I first spoke to them on Monday but when they told me the first deal it didn't feel right & I thought something was off so I started doing research. Every single person on Reddit recommended Edmunds & has been so helpful. I've learned SO SO much & holy sh*t am I happy I didn't go in & sign! They were practically begging me to go in ASAP & now I see why. What a terrible deal they were trying to give me. You are all angels for people like me who are CLUELESS & starting out! THANK YOU THANK YOU!

If I need more help can I come back here?

Of course. We are here to help level the playing field.

kyfdx

11LEXI said:

So do you think this deal is a green light & good to go? I really don't think they will go any lower I've had them drop it twice already.

$404 per month
36/12k

If it's still $1200 due at signing, that's not bad.

11LEXI

Where would you guys suggest I start looking of info on possibly buying the lease I have now? I just found out the new preferreds are actually a downgrade from mine & don't even have the Bose speakers like I have now.

Any idea where to start looking for things I need to look for in a good deal? I appreciate you! Basically going from lease-to-buy.

kyfdx

11LEXI said:

Where would you guys suggest I start looking of info on possibly buying the lease I have now? I just found out the new preferreds are actually a downgrade from mine & don't even have the Bose speakers like I have now.

Any idea where to start looking for things I need to look for in a good deal? I appreciate you! Basically going from lease-to-buy.

Look on your lease contract and contact the leasing bank.

11LEXI

Thank you! Out of curiosity, do you recommend anything else equivalent to a Mazda cx-5? In general I love a smaller SUV. I feel better driving about this size. Any other cars you suggest I should take a look at or that might be BETTER than the cx-5?

I'm really sad they don't have the Bose speakers in the new Preferreds. That was a reason I was going to stick with the cx-5 because I could tell a difference with quality. Now that it's not there, which I just found out, I'm a little on the fence. What do you guys like?

Michaell

Lots of great choices out there.

The RAV4 is a perennial favorite, and the Hyundai Tucson and Kia Sportage are filled with features (my daughter is keen on the Sportage Plug-In Hybrid as her next car).

You never mentioned you had a CX-5 lease already. There are two loyalty incentives on the new CX-5 - one for $500, and the other for $1500, if you have an existing lease you are going to turn in. That should save you another $60/mo or so on the payment.

But, if the car you want doesn't have the required features, I guess all the incentives in the world won't matter.

11LEXI

The price they're giving me is WITH those I believe. I also just asked them if the price is including gap insurance & they said no, that would be another 30-40 a month. I think I'm about to tell them forget it. They are trying to get any little cent off of me or stupid little things.

The speakers at the end of the day aren't an absolute deal breaker but what gets me is they're trying to make me pay so much for a car that doesn't have what I have now which is ridiculous.

Funny you mentioned the Kia though, my neighbor has a white one & I love it!

Michaell

11LEXI said:

The price they're giving me is WITH those I believe. I also just asked them if the price is including gap insurance & they said no, that would be another 30-40 a month. I think I'm about to tell them forget it. They are trying to get any little cent off of me or stupid little things.

The speakers at the end of the day aren't an absolute deal breaker but what gets me is they're trying to make me pay so much for a car that doesn't have what I have now which is ridiculous.

Funny you mentioned the Kia though, my neighbor has a white one & I love it!

You didn't answer my question about living in Chicago - leasing within the city limits is beyond expensive, as the city imposes its own sales tax on leases over and above the State of Illinois.

I'd love to see the math behind the cap cost number you recently posted - how much was the discount from sticker, what fees are they adding, etc.

But, if you aren't going forward, I suppose it doesn't matter much.

11LEXI

Technically I'm not directly in Chicago but I am still in Cook County. I can cross the street from my town & be in Chicago. The dealership that I've been talking the most with is in the suburbs, however, there's a dealership that's actually int he city who said they would match or try & do better. They would be the preferred location since they're a lot closer.

Now that you're mentioning all of this I just text the salesman at the original dealership. I'm starting to realize there's still a lot he not telling me. Can I request for him o send me over the paperwork to look it over or would that be rude of me if I don't go with the deal? I feel like there's still not something adding up because when I use the lease calculator it's still coming up way less!

I'm waiting for him to respond with how much the price dropped from MSRP with this 'new deal' he's offering. It's like I ask questions & they try to dodge.

Michaell

11LEXI said:

Technically I'm not directly in Chicago but I am still in Cook County. I can cross the street from my town & be in Chicago. The dealership that I've been talking the most with is in the suburbs, however, there's a dealership that's actually int he city who said they would match or try & do better. They would be the preferred location since they're a lot closer.

Now that you're mentioning all of this I just text the salesman at the original dealership. I'm starting to realize there's still a lot he not telling me. Can I request for him o send me over the paperwork to look it over or would that be rude of me if I don't go with the deal? I feel like there's still not something adding up because when I use the lease calculator it's still coming up way less!

I'm waiting for him to respond with how much the price dropped from MSRP with this 'new deal' he's offering. It's like I ask questions & they try to dodge.

Ask whatever questions you want. Ideally, you want a screen shot of their internal lease worksheet which lays out all the numbers so we can evaluate the quote.

11LEXI

When they give me the papers to look at do you have a recommendation for what add-ons I should be looking for or what maintenance I need/don't need? I think the number is still a bit high because they're including something in the price that I might not need. I also found out that $404 a month doesn't even include gap insurance.

Is the regular maintenance worth it? For oil & filter changes, tire rotations...etc.?

Michaell

11LEXI said:

When they give me the papers to look at do you have a recommendation for what add-ons I should be looking for or what maintenance I need/don't need? I think the number is still a bit high because they're including something in the price that I might not need. I also found out that $404 a month doesn't even include gap insurance.

Is the regular maintenance worth it? For oil & filter changes, tire rotations...etc.?

Correct - Toyota now manages Mazda's banking needs for leases and GAP is no longer standard.

I wouldn't pre-pay maintenance. On my last lease, I think I spent a couple hundred dollars for the annual service visits.

11LEXI

Great! Thank you!

11LEXI

Hi Michaell. Sorry I keep bothering you but you've been most helpful & I trust you more than others that were trying to help me before.

So I am putting 0 down on this upcoming lease. I only want to pay the first payment due at signing. What else should I include at signingt? Plates, doc fees, registration?

Thank you!

kyfdx

11LEXI said:

Hi Michaell. Sorry I keep bothering you but you've been most helpful & I trust you more than others that were trying to help me before.

So I am putting 0 down on this upcoming lease. I only want to pay the first payment due at signing. What else should I include at signingt? Plates, doc fees, registration?

Thank you!

All that. The $1200 you were putting upfront before should cover it

11LEXI

Ok. Just wondering because it still seems like a lot at signing if they're saying my monthly will be $404/mo & they are just adding license & registration & title so I'm trying to figure that number out. Does that seem about right to you?

Thank you 🙏🏼

kyfdx

11LEXI said:

Ok. Just wondering because it still seems like a lot at signing if they're saying my monthly will be $404/mo & they are just adding license & registration & title so I'm trying to figure that number out. Does that seem about right to you?

Thank you 🙏🏼

$800 for doc fee, DMV. Or, maybe part of it is CAP reduction?
Ask them to itemize everything

11LEXI

Would it still be 62% residual & Money factor .00131 if the mileage per year changed to 12k?

kyfdx

11LEXI said:

Would it still be 62% residual & Money factor .00131 if the mileage per year changed to 12k?

For 12K/yr, the residual drops to 61%.

That should add about $10/mo. to your payment.
That's cheap, if you need the mileage.

11LEXI

Nice! Thank you.

Is there anything you recommend as far as finding out how to outline an email to send over to dealers asking for the deal I want? Should I just state the basics I'm looking for such as the selling price for the car & how much I'm looking to pay a month?

Or do I also tell them details such as money factor & residual I want? Any insight would be great! I am fixing to send some emails to dealerships in my area hoping one will accept my deal!

Michaell

11LEXI said:

Nice! Thank you.

Is there anything you recommend as far as finding out how to outline an email to send over to dealers asking for the deal I want? Should I just state the basics I'm looking for such as the selling price for the car & how much I'm looking to pay a month?

Or do I also tell them details such as money factor & residual I want? Any insight would be great! I am fixing to send some emails to dealerships in my area hoping one will accept my deal!

The only variables in a lease are the selling price/cap cost, and the MF (but, you want the base MF).

Figure out the price you want to pay, and include that in your email. Don't ask for a payment - dealers can muck around with the numbers to get you a payment you want - usually by asking for more money up front.

Be clear about your terms - only first payment, DMV, tags, etc. due at signing (this should be relatively fixed). Same with term and miles per year ("oh, you wanted 12,000 miles? I quoted you for 10K").

Create a template and email away!

11LEXI

What is your stance on paying title, license & registration upfront with 1st payment?
I am getting mixed reviews so I don't know if that should be rolled in or just pay it...
I see a lot of people say only do first payment?

Michaell

11LEXI said:

What is your stance on paying title, license & registration upfront with 1st payment?
I am getting mixed reviews so I don't know if that should be rolled in or just pay it...
I see a lot of people say only do first payment?

You should pay government fees up front, as they are not taxable.

If you roll them into the cap cost, then they get taxed.

11LEXI

I'm sorry I'm young & just learning so government fees would be the title/license/registration, correct?

Then all the other taxes & fees & dealer fees/doc fees roll in?

I really don't want to make a fool out of myself. If you saw the deal I initially was going to take because I didn't know any better, you'd probably laugh the rest of the day

I apologize for all the questions. I really just want to get this right.

Michaell

11LEXI said:

I'm sorry I'm young & just learning so government fees would be the title/license/registration, correct?

Then all the other taxes & fees & dealer fees/doc fees roll in?

I really don't want to make a fool out of myself. If you saw the deal I initially was going to take because I didn't know any better, you'd probably laugh the rest of the day

I apologize for all the questions. I really just want to get this right.

Dealer and doc fees should be rolled into the lease. Title, registration, license fees should be paid up front.

As my co-host has noted, get everything itemized.

11LEXI

Is it true that the money factor & residual value for a car changes from month to month? The dealership is really pressuring me & saying, "We can't promise the same deal after the first because money factor might change & residual"

Is that true? If so, can I come back to ask you what the new one would be after the 1st?

kyfdx

11LEXI said:

Is it true that the money factor & residual value for a car changes from month to month? The dealership is really pressuring me & saying, "We can't promise the same deal after the first because money factor might change & residual"

Is that true? If so, can I come back to ask you what the new one would be after the 1st?

Yes, it's true

We don't get the new programs in advance

11LEXI

Please provide MF, RV, and rebates/incentives for:

Mazda: 2024 CX-5 AWD 2.5 S Preferred
36/12K
Zip Code 60707

Thank you 🙏🏼

Michaell

11LEXI said:

Please provide MF, RV, and rebates/incentives for:

Mazda: 2024 CX-5 AWD 2.5 S Preferred
36/12K
Zip Code 60707

Thank you 🙏🏼

.00141 MF and 61% RV
No lease incentives
$500 loyalty
$1250 lease to lease loyalty

11LEXI

11LEXI

Hi guys! Thoughts on this deal? The $752 down is just first month plus tags/title/license/registration.

2024 Mazda CX5 Preferred trim.

Michaell

@11LEXI said:
Hi guys! Thoughts on this deal? The $752 down is just first month plus tags/title/license/registration.

2024 Mazda CX5 Preferred trim.

Not bad, but the numbers on the right are for a purchase, not a lease.

I don’t see the acquisition fee anywhere, for example. Ask for the adjusted cap cost.

11LEXI

Is the acquisition fee the same as bank fee? If it is, that's $650 (already asked).
I'll ask for the adjusted cap cost

They agreed to money factor at base, residual at 61%

And the $385/month would be including tax and everything.

Michaell

Yes, same thing.

Doesn’t look like you can do much better, other than to get a bigger discount from MSRP.

11LEXI

Please correct me if I'm wrong, but would the adjusted cap cost be [selling price – residual value]?

MSRP = $32,070
Selling Price = $30,270

So, $1800/5.6% off

Do I get the residual value frat he MSRP or selling price? They're taking forever to text me back with the answer but I think I can figure it out by myself?


EDIT:: I think the adjusted cap cost is about $29, 894. I looked up how to calculate a lease.

Michaell

11LEXI said:

Please correct me if I'm wrong, but would the adjusted cap cost be [selling price – residual value]?

MSRP = $32,070
Selling Price = $30,270

So, $1800/5.6% off

Do I get the residual value frat he MSRP or selling price? They're taking forever to text me back with the answer but I think I can figure it out by myself?


EDIT:: I think the adjusted cap cost is about $29, 894. I looked up how to calculate a lease.

Adjusted cap cost is the selling price plus any taxes or fees you aren’t paying up front.