Leases are similar to loans, but if you’re a business, there can be tax benefits. Or if it’s an electric vehicle, there might be better benefits depending on where you live. But mostly, leases cost more than buying with cash, and you never own the car unless you pay it off, which is usually more expensive than a loan. There’s a lot to think about, and many people just go for the monthly payments without considering other factors.
The money factor is 6%. The dealership wouldn’t prepare a worksheet without me coming in to see the car. Take that as you will.
That’s really high! I guess it’s not a problem if you have a lot of money!!!
Agreed. That was without checking my credit, so I hope it would be lower with good credit.
If you have a credit score of 740 or higher, that’s a bit high, but remember that the money factor on a lease is always higher than a loan. If they didn’t check your credit, I expect it would go down with good credit. Definitely ask about it, most people don’t even do that.
There’s a lease estimator on Mazda’s website. Start there. When I leased one, I used that estimator because the dealership’s offer was much higher than expected. Then we discussed the details like the money factor and trade-in to agree on the terms.
With a lease, you’re paying for the car’s depreciation. It’s different from buying the vehicle. It works well for some people, but not for everyone for various reasons. Your deal sounds decent on the surface, but we need more information.
There’s no way the residual on a 36-month lease is 29.5% unless it’s a very cheap car. What’s the money factor? By the way, the residual is set by Mazda Finance and can’t be changed. It should be between 57-63% for a 36-month lease.
It’s not 29.5%. It’s $29,500.
I think he means the residual value is $29.5k, but I could be wrong.
Paying $670 a month for 3 years and not owning the car at the end seems like a bad deal to me.
$670 times 36 months is $24,120. At $670 per month, you won’t own the car after 36 months. You’ll likely want a new car after that. Leasing is why people do it. In the long run, buying the car with a short-term loan is more cost-effective than leasing. Leasing is just easier.
That’s a great starting point!
Check out broker deals. Usually, Autoninjas has some good Mazda offers.
I leased a CX-70 Premium Plus PHEV in September. No money down, but I had to pay the first month, bank fee, dealer fee, and tax, which was about $1,700 in New Jersey. I’m paying $550 a month for 24 months with 10k miles per year. I came from an Acura MDX, so I had some extra money. The PHEV has great gas mileage, and I love this car.
I just leased a 2024 Select Sport a month ago. My out-the-door cost was $31k. I have a 10k miles per year lease with a residual value of about $17.3k.
$441 for the Turbo S Premium trim with a 33k miles for 10k miles per year lease.
I paid around $3,700 down including taxes, fees, and the first month. I’m located in New Jersey, but the dealer was in New York. I used a broker.
God, I wish I could spend money like you do lol.
My local dealer is such a ripoff. Thank goodness I don’t have the $7k they were asking for money down lol.
I went there a couple of months ago because Mazda sent an email about $3k down and $600 monthly, or else. So I thought I’d try it.
The dealer agreed to $3k down but added fees and taxes, making it $7k with monthly payments in the $700s.
I left immediately haha.