Mazda3 Lease Questions

stallionre · April 2007

I really believe that the better deal is to buy your cars. I had one lease in my life and will never do that again. I actually decided to keep the car and paid more in the long run than buying the car right out. I have owned 7 cars in my life and I buy them, not lease them. If the lease deals sound to good in the beginning, then at the end you might have to pay. Since the cars are built better these days (electronic wise, faster engines, etc), it is better to buy.

qbrozen · April 2007

blanket statements need not apply.

my brother-in-law is actually saving money by leasing. he plans to buy the car at the end of the lease, but thanks to the subsidized rate through mazda, he will be saving about $400 by taking the 27-month lease now and financing the balance for 36 months later compared with financing the full amount for 60 months now.

This isn't a fluke. Take a look at volvo's recent programs, for instance. They were offering somewhere in the neighborhood of $6500 cash if you lease through an independent bank. That money ONLY applied to leases, not financing. So if you financed the car, you'd pay ALOT more for it.

All things being equal, yes, it is probably safer to finance. But things aren't always equal. There are deals out there where leasing saves you money.

stallionre · April 2007

In that situation it works out well for the lease, however, if you plan to keep the car for more than 3 years, then leasing is not a good deal. Everyone knows that. It also depends on the depreciation of the car. I think that buying a car, with half down is the ideal.

qbrozen · April 2007

if you plan to keep the car for more than 3 years, then leasing is not a good deal.

well, again, he does plan on keeping it. it just so happens that leasing and then buying out the lease is going to save him money in finance charges thanks to the low lease rate.

I think that buying a car, with half down is the ideal.

And again here, it really isn't as easy as a blanket statement. Every situation is different. As you said, depreciation is definitely something to take into consideration, as are interest rates. Let's say, for instance, you have $10k to put down. That $10k is probably invested somewhere earning interest (at least it should be). Now let's say the manufacturer you want to buy from has a low finance rate. It might be 1.9%, for instance. Your investment is making 4.5% in the meantime. Taking money out of that investment to buy the car would not be the ideal situation in this case.

Its pretty much the same situation with leasing. For example, my Honda lease has a MF that is equivalent to something ridiculous like 1.9%. It would not have been in my best interest to finance it at 6% when I can take advantage of their subsidized lease rate. Just like my BIL is taking advantage of the Mazda program, which is at around 4%, rather than paying 6.5% on a 60-month loan.

stallionre · April 2007

This is true and I agree with you. It depends on the car the person and how much you want to put down. I didn't want to invest this money. I wanted to put it down on a car instead. I am tired of investing. I have been investing all my life and never spent money on a car like this before. It was time for me to start enjoying my money. I also wanted a low finance payment for three years at 1.9% therefore I put down 65%. I do know that investing the money earning more than say your interest rate of the car, would be a better choice. Lease vs. buying this is up to the person and how much money they have to work with. I am just talking from experience. I leased a 1999 Ford Escort Sport model and got screwed with that all the way around. The depreciation on that car was so drastic that I lost money and the interest rate at that time was high. Just like buying a house at that time, with good credit the interest rate was over 9% to me that is bad compared to 1.9% for a car and 5% for a house.
But in all fairness, a lease can be a great deal and/or buying a car right out can be a great deal. It all depends on many factors.

fgaz1 · April 2007

where should i be on payment for a 2007 mazda 4 door '
s grand touring auto...msrp around 23000..i would like to follow the 24 month program they have now...little as possible down...my use tax is 5%..thanks in advance..fred

stallionre · April 2007

Wow only 24 months plan. Little down, you will have a huge payment. My 2007 Mazda M3S GT OTD was $25K, I put down $15K. I owe 10K at 1.9% for 36 months, which equals $283.05 a month.

fgaz1 · April 2007

I should have said that i am looking to lease , not buy...thanks for the reply...fred

steevo · April 2007

This forum is called Lease Questions. WHat else would you have meant?

fgaz1 · April 2007

come on Steevo..cut me some slack...the post before mine was someone that thought i was doing a buy,not a lease...

steevo · April 2007

Sorry bro! Meant it in a light hearted way. Some of my recents have ended up on the wrong boards.. Also its top of new page when I view it and I didn't see the previous post. I guess now HE might consider it a slam!
Anyway I am looking for same thing. Waiting for someone to post the April numbers.

steevo · April 2007

So, anyone have the April numbers?

CarMan@Edmunds · April 2007

Here you go, sdoo25. Mazda Credit's current buy rate lease money factor and residual value for a 36 month lease of any 2007 Mazda3 5-Door with 12,000 miles per year are .00227 and 57%, respectively for consumers who qualify for its top credit tier. Unfortunately, I am not sure how much this money factor increases for other tiers.

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CarMan@Edmunds · April 2007

Hi calvinc. When you said that you saw the deal for the sport model do you mean that you saw an advertised lease for it? Mazda has a special lease program for both the sport and grand touring models.

You absolutely should negotiate the selling price of the car that you are interested in prior to having the dealer work up a lease payment on it for you. You don't have to mislead the dealer that you are working with about the fact that you want to lease as long as you are firm about the fact that you want to negotiate the price of your vehicle before discussing payments. You can shop around with several dealers for the lowest possible selling price on the Mazda3 that you want and then have the one that gives it to you for the most attractive price calculate your monthly payment using Mazda's buy rate lease money factor.

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CarMan@Edmunds · April 2007

Hi luke111. The money factor that you were quoted looks good. It must be based upon Mazda's March lease program though. I believe that Mazda Credit's buy rate lease money factor for a 36 month lease of a 2007 Mazda3 5-Door is now .00227.

Let's take a look at the selling price that you were quoted for this car. A base 2007 Mazda3 5-Door s Touring has a spread of only around $1,250 between its full MSRP and its dealer invoice price. So the discount of $1,500 that you were quoted looks very attractive to me. If you like the car, I personally don't see any reason not to pull the trigger on this deal.

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CarMan@Edmunds · April 2007

I do steevo. Here's the info that you're looking for. Mazda Credit's current buy rate lease money factor and residual value for a 36 month lease of a 2007 Mazda3 5-Door s GT with 15,000 miles per year are .00227 and 55%, respectively.

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CarMan@Edmunds · April 2007

Hello tucci314. Let's work up a sample payment on the car that you are interested in using Mazda's current lease program and see what sort of number we come up with. According to my calculation, if you were to lease a 2007 Mazda3 s Touring with an automatic transmission, sunroof, and 6 CD changer that has an MSRP of $20,860 and a selling price of $19,992 ($500 over invoice) through Mazda Credit right now for 24 months with 12,000 miles per year, your zero down, pre-tax monthly payment would be around $298. As you can see, the payment that you are looking for is not really possible without making a large down payment. Even if you were able to negotiate this car's price down to invoice, the payment would still be $283 before tax. If you want a lower monthly payment, I suggest stretching out this lease to 36 months.

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CarMan@Edmunds · April 2007

Hi fgaz1. This car's lease payment will depend upon what sort of selling price you are able to negotiate on it. The lower its selling price is, the lower your lease payment will be. For now I will assume that you will be able to negotiate a $1,000 discount on this car. According to my calculations, if you lease a 2007 Mazda3 s Grand Touring Sedan that has an MSRP of $23,000 and a selling price of $22,000 through Mazda Credit right now for 24 months with 12,000 miles per year, your zero down, pre-tax monthly payment should be around $354. If you stretch this lease out to 36 months or are able to negotiate a lower selling price its monthly payment will be a little lower.

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CarMan@Edmunds · April 2007

Hi steevo. I have seen Mazda's April lease program for the Mazda3 and I would be happy to give you an idea of what it is like. I just need you to provide me with some additional information first, including the exact model that you want, how long you want to lease it for, and what mileage allowance you need. Let me know what these numbers are and I'll tell you what the April lease program is like.

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steevo · April 2007

Thanks Car_man!!
You got me in #117.

mhs7386 · April 2007

Hi Carman:

Please tell me what my monthly payment should be on a 36-month lease, 12k miles a year, for a Mazda 3 with a price of $17,700. We would put $2000 down, to cover all fees, first payment, etc. The dealership wants $243 a month...seems high to me.

Thanks.

stallionre · April 2007

That sounds right to me, what is the APR?

mhs7386 · April 2007

Sorry, but don't know apr. I can tell you the sale price is $17,356 and the monthly payment is actually $237.49 for 36 months with $1994.99 out the door. Your thoughts?
Thanks very much.

mhs7386 · April 2007

Also, this car has a spoiler, abs and side air bags. Thanks again.

stallionre · April 2007

I think that it is a good price for all those options. Sounds good to me.

qbrozen · April 2007

did you list the options and I missed it?

have you seen the advertised lease deal? $189/mo with a hair over $2k down for only 24 months. Your 36-month deal does not sound too enticing to me.

mhs7386 · April 2007

Hi qbrozen, thanks for your input, but the advertised lease deal is for a stripped down Mazda3, no power, no spoiler and, I think, manual tranny.

qbrozen · April 2007

actually, i think it was posted here, but we figured the deal to include AC and automatic tranny.

In any case, the options don't affect the deal all that much. If you read back, you'll see my BIL got a 3s touring automatic with SAB, 6cd, and moonroof (right around $20k msrp) for $211/27 mos and $3k down. It would have been about $250 with $2k down.

mhs7386 · April 2007

What's BIL? You apparently got a good deal because you got the moonroof and 6cd. Hey, I have another question. I just did a verbal deal on the phone with one dealership, gave him all info for credit app, then another dealer called and for $2 more a month, the car he has in stock includes compass/auto dimming lights and wheel locks... only difference being he has to add the spoiler and we can't get the car tomorrow, which is when we wanted to surprise our son. Your thoughts? Thanks very much.

qbrozen · April 2007

BIL = brother-in-law

personally, those extras are worthless to me, so i wouldn't pay $2 or wait for the car. but that's just my opinion. you may WANT those things.

You really should look at the 2-year deal. You may be surprised. The number is probably amazingly close to your 3-year deal, if not better. That just happens to be where the mazda incentives are right now.

should be easy enough. Just call the dealer you've already got the verbal with and ask him what the payment would be on the same car, same down, for 2 years, because you've read that mazda has great 2-year deals right now.

stallionre · April 2007

How long do you want the car for? 2 or 3 years? I still think that what they offered you is a good deal with all those options.

mhs7386 · April 2007

Hi Stallionre. We're picking up the car for our son today. I leased it for three years...don't want to shop again in two. The only question left is whether to go for 12k miles a year or 15, which ups the monthly another 10 bucks. The wife prefers the lower payment ($239.00). By the way, the first dealer told me after I posted yesterday that the car DOES have those little extras, the compass/auto dimming lights and wheel locks. So bottom line is $1994 out the door and $239 a month...based on purchase price of $17,356.

mhs7386 · April 2007

My lease payment will be $237 a month, not $239.

mhs7386 · April 2007

Yeah, but your BIL put 3k down...we're putting $1990 down, and my son actually does not want a moonroof, and doesn't need a 6cd player...and our monthly payment is $237, taxes included.

stallionre · April 2007

Awesome deal mhs7386. Great job!!! Tell me how you like the car and drive the heck out of it.

qbrozen · April 2007

As I explained, $2k down would have made his payment $250, including taxes. Knock off the extra options and it would be right in the neighborhood of your payment.

Hey, its whatever you need, right? Good luck with the car. enjoy.

sonnie · April 2007

Hello...

We are looking at a Mazda3 for our daughter... very nice car. We went to Mitchell Mazda in Enterprise, Alabama today and got a quote on a 36 month lease. I wish I had paid closer attention to the car though, because I'm not totally sure of the details. If I'm not terribly mistaken this unit had the 6 disc in-dash CD changer, satellite radio and I believe floor mats. It listed for around $18500-18700. I remember them showing me the invoice and I want to say it was around $17200-17300. I may be a $100 or so off. The unit is red, 2.0 liter engine, automatic... I think it's the i Touring 4dr sedan.

Initially they quoted us zero down and $322 month. Of course I wasn't even going to consider that much per month. They came back at me with zero down and $286 month or $1500 down and $256 month. Ultimately the best deal he offered me was $500 down and $269 month... and that was supposedly the best they could do. He said they were selling it at invoice.

The lease quotes are all 36 months and include the wear and tear coverage, with 10,500 miles per year, which is plenty for our daughter. She averages less than 500 miles per month.

For $17300 or there abouts, does $500 down, 36 @ $269 sound reasonable? We may go ahead a pop $1000 down and see where that gets us... or is it better to pay more down? I guess it makes sense to pay more down and not pay the lease fees on that portion.

Thanks!

wilkich84 · May 2007

Looking at a 5door touring which i think includes the SAB and stability control standard. Would consider a sunroof but not a required option. We are thinking about pulling the trigger now or waiting until labor day when we will actually need the car. While the rates look good now, anyone have any reason to believe that lease deals or selection will be in September? If I opt for Man Tran, does your answer change? Thanks.

audia8q · May 2007

Looking at a 5door touring which i think includes the SAB and stability control standard.

If your looking for a manual tranny in the northeast they are in very short supply...So your location might help you to decide when to buy. If your in the northeast, waiting won't help...the deal doesnt matter if you can't get the car.

wilkich84 · May 2007

Thanks for the response. I'm in Northern California. The sales guy at the Oakland dealership did mention they were short but I thought he was full of it.

I guess the question now is whether the supply will remain constant for the 07s (i.e. are they making more?). If not, will the lease rates change significantly that I will not regret waiting until September. Put another way, if I can't talk the wife into an stick and I'm stuck with the auto, will there be screaming deals at model year end that will make me feel better?

qbrozen · May 2007

heck, 5-door models in the NE seem to be in short supply regardless of tranny. when i took my brother-in-law to lease his 4-door, the dealer didn't have a single 5-door on the lot, but had at least 30 sedans.

sphinxridd · May 2007

Hi Carman,

could you please give me the residual % and money factor for super preferred/preferred/standard credit tiers for a 24-month lease on a i Touring 4dr 5A mazda3?

Thanks!

CarMan@Edmunds · May 2007

You're very welcome, steevo.

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CarMan@Edmunds · May 2007

Hi sonnie. Let's use Mazda's current lease program to estimate what this car's payment should be and see what we come up with. According to my calculations, if you were to lease a 2007 Mazda3 s Sedan that has an MSRP of $18,600 and a selling price of $17,250 through Mazda Credit for 36 months with 10,500 miles per year, your zero down, pre-tax monthly payment would be around $232. The $286 per month payment that you were quoted is considerably higher than this even if it does include tax. Make sure that the dealer that you are working with is using Mazda Credit's buy rate lease money factor of .00220 and its residual value of 57% to calculate your monthly payment.

It is definitely not in your best interest to make a down payment when leasing. Consumers can and should lease any vehicle that they want without making any capitalized cost reduction. Those who make one risk losing it if their vehicle is totaled in an accident or stolen and never recovered.

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CarMan@Edmunds · May 2007

Here you go, sphinxridd. Mazda Credit's current buy rate lease money factor and residual value for a 24 month lease of a 2007 Mazda31 Touring with 15,000 miles per year are .00221 and 68%, respectively for consumers who qualify for its top credit tier. I'm not sure what the factors are for its lower credit tiers.

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wilkich84 · May 2007

Hold on. The no down payment advice is the first time I have ever heard that. I thought that it would be a good idea to lower your payment. We're hitting a 2 year cash crunch ( 2 preschools in Northern CA) and I've been thinking of just putting the tax return into a lease down payment to keep the payment around $200. I guess I could keep the cost down by having a higher residual or should I just swallow the higher payment. This is all good to know.

FYI I'm looking at the 3s Touring Hatch with auto with sun/CD package.

wilkich84 · May 2007

More info. A 24 month low mileage (10-12k) lease best fits our needs.

sml6 · May 2007

I just walked into a Mazda dealership, and came home with a 2007 Mazada3 in a couple of hours. Could you *please* tell me if I got a good or a bad deal? I don't know if I was impulsive to sign and take it home today.
I leased the S Grand Touring, with spoiler, in Automatic transmission.
MSRP $21,955
Selling price $20,551.32
Gross cap cost $21,399
Zero $ down. 36 months, 15K. monthly payment= $335 incl tax.
inception and first month's payment= $1477.68

tucci314 · May 2007

I want to lease a 2007 Mazda3 S Sport with the airbag package and the autodim mirror with compass for 36 months. It's MSRP is $19,180. I plan on getting a low mileage package (1200 miles a year). I'm shooting for monthly payments of $200 to $210. How big of a down payment do you think Mazda will want?

newcar3178 · June 2007

hey Car_man, would you happen to know current (june) money factors and residuals for the following:

1) mazda-3 S-touring (4-door), 3-year lease with 15k miles
2) nissan altima 2.5S, 3-year lease, 15k miles?

thanks very much!
sr

Mazda3 Lease Questions

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