anybody know how much the average lease payment is on a $33,00 car?

Originally posted by ibfubar2000
anybody know how much the average lease payment is on a $33,00 car? Depends on the residual and money factor you get.

However figure this... for a 36k G35 Coupe, I can get it for ~500 a month with only inceptions out of pocket.

So you can do the math on that... generally it's $20 for every thousand that's why I'm figuring on around $400 a month on the RX-8. Granted though, my car comes in at $31,100, plus a $500 college grad rebate.

Originally posted by Hercules
Depends on the residual and money factor you get.

However figure this... for a 36k G35 Coupe, I can get it for ~500 a month with only inceptions out of pocket.

So you can do the math on that... generally it's $20 for every thousand that's why I'm figuring on around $400 a month on the RX-8. Granted though, my car comes in at $31,100, plus a $500 college grad rebate.

great thank you very much!! that does help give me a ball park figure. thanks i appreciate it!!!

Originally posted by Hercules
However figure this... for a 36k G35 Coupe, I can get it for ~500 a month with only inceptions out of pocket.

So you can do the math on that... generally it's $20 for every thousand that's why I'm figuring on around $400 a month on the RX-8. Granted though, my car comes in at $31,100, plus a $500 college grad rebate. I'm not following your math. The two examples you gave work out to around $13/month per $1000, not $20. What am I missing?

Originally posted by eccles
I'm not following your math. The two examples you gave work out to around $13/month per $1000, not $20. What am I missing? On leases, it's a *general* rule that for every $1000 you give as a down payment (or lesser the price the car) it reduces your payment by $20 a month. Granted, there are mathematical anomalies that I can't account for that gives car companies a profit.

However it's a fair rule of thumb to go by the $20 a month reduction, regardless of how you divide it out. You can ask at other dealers (BMW, Audi, Lexus, Infiniti, Nissan) and they will all give you that roundabout.

I'm leasing my CL, loaded for a total price of around $33-$34K with payments $500 a month. It will probably be in that league depending on how much you put down. Btw, I put nothing down.

Originally posted by MRocks
I'm leasing my CL, loaded for a total price of around $33-$34K with payments $500 a month. It will probably be in that league depending on how much you put down. Btw, I put nothing down. Did you pay for the inceptions or were they covered as part of your lease?

Originally posted by Hercules
Did you pay for the inceptions or were they covered as part of your lease?

Honestly, I don't know. All I had to pay I believe was the first month payment and I think some other fee, for a total of 1K. Honda/Acura have this thing (well in my area at least) that if you have leased or owned a previous car from them then you don't need to pay security deposits and crap like that.

Originally posted by MRocks


Honestly, I don't know. All I had to pay I believe was the first month payment and I think some other fee, for a total of 1K. Honda/Acura have this thing (well in my area at least) that if you have leased or owned a previous car from them then you don't need to pay security deposits and crap like that. Yea at around 1k, that's covering inceptions too.

I'm probably going to put $2000 down on the RX-8 just so I have more money in my pocket on a month-to-month basis.

herc, college grad rebate?? standard mazda rebate or what?
thanks

Originally posted by ibfubar2000
anybody know how much the average lease payment is on a $33,00 car?

You are leasing the car??? This is a must own :D.

Originally posted by norats
herc, college grad rebate?? standard mazda rebate or what?
thanks
It's a standard Mazda rebate... I have to check to see if it applies to the RX-8 on June 3rd, because that's when the program comes up for renewal.

I gave them a call today and they told me to call back on the 3rd to double check.

Originally posted by Renesis08


You are leasing the car??? This is a must own :D.

i have to leqase so the monthly payments will be less. besides i never keep a car more than 3 years. so i will just lease a new rx8 again in 2006

Originally posted by Renesis08
You are leasing the car??? This is a must own :D. I'm probably going to lease, too. The way I see it, I can keep the money we got from the sale of my 10AE as a buffer against possible job loss in the current economic climate. Heaven forbid, if I did find myself out of work for a while, the extra liquidity would make things that much easier. If not, then we can use the funds as part of the buyout at the end of the lease, if so desired.

Speaking of which, being the first year of a new car, the chances are that the residual may be off by a fair margin. If the car holds it's value better than expected, we have a guaranteed buyout that may be under the then-current market value. Conversely, if used car prices are well below the residual at the end of the lease, we can walk away from it and pick one up on the open market. I'm past the point where I become emotionally attached to my cars. :)

Leasing is the best way to go. Mazda is using strong residuals and that drives a lower payment. Most people who finance take, 60,72 or 84 month terms. Then when they want to replace the car early (and most do) they're way "upside down" (negative equity) 36 months is always the best compromise for the term.

The $20.00 dollars per thousand rule is only on 60 month contracts, lease or finance, it's only to calculate the difference in payment with more or less down.

I'm now going to attempt to show you how to calculate a lease.

Take the price minus the residual, divide that by the term for the monthly depreciation. The interest is calculated this way: price PLUS residual, divide by 2 (this gives you the average amount financed) multiply that by the interest rate and divide by 12. You now have the monthly interest. Add the monthly depreciation amount, and the interest together for the total payment. Then multiply by the tax % for where you live to get that monthly amount. Add it together for your total amount.

Any down payment should come off the price (you still have to pay tax on the down) so you will save interest on that.

It's $33.00 for 36 months, 25.00 for 48, and 20 for 60 months for the quick factor as I mentioned above.

Remember, the residual is ALWAYS calculated using the MSRP, not the selling price. (this is to your advantage because it results in a higher number, thus a lower payment) Of course we are all paying
MSRP or more for the RX 8, but I mention it in case you wanted to figure out another lease.

Sorry for the long post, I hope it makes sense. Take your numbers and try it out for yourself. If anyone has questions, just e-mail me directly.

I've never leased before so my questions may be extremely silly :-)

- what is money factor? is something similar to APR that you pay if you finance a vehicle?

- how does your credit history affect the lease payment?

- does the dealer rip you off at the end of the lease term with unforeseen fees?

Thanks.

There is no such thing as a siily question.

The money factor is just the rate but into a decimal type of form that you multiply times the price to get your interest rate.(leasing only)
It is always divided by 24 to get the rate.
For example 0.246 x 24 = 5.9%

Your credit rating needs to be as good if not better to lease. You should still be able to build up your rating by leasing.

As a rule dealers don't normally add much at the end. There may be a documentation fee, the car has to have a safety inspection if you're buying it (ownership change)

If you don't buy it, you are responsible for anything beyond normal wear and tear. Also a mileage charge if you exceed what was on the contract. These items are charged by the lease finance source (typically the manufacturer)

Hrmm... why do they multiply/divide by 24? What if you have a 36 month lease, as I'm planning to have? Actually... if the payments are better, I'll likely go with a 39 month lease.

I don't know why you multply by 24. I guess a math wiz would know the answer.The factor was done originally by the lease company to make it easier to quickly quote payments. It also was used so the rate wouldn't have to be discussed. Most people don't understand leasing, so if you asked the rate and it wasn't attractive, the dealer could just say there isn't a rate, it's a"factor"

39 months could be good, usually they use the 36 month residual, but it's a bit cheaper because of the 3 more months in the term.

I'm curious, being from Canada, do you have full disclosure where you are? (selling price, actual % rate, and residual on the contract) Are you going through Mazda or a bank?

Originally posted by rotorian
I don't know why you multply by 24. I guess a math wiz would know the answer.The factor was done originally by the lease company to make it easier to quickly quote payments. It also was used so the rate wouldn't have to be discussed. Most people don't understand leasing, so if you asked the rate and it wasn't attractive, the dealer could just say there isn't a rate, it's a"factor"

39 months could be good, usually they use the 36 month residual, but it's a bit cheaper because of the 3 more months in the term.

I'm curious, being from Canada, do you have full disclosure where you are? (selling price, actual % rate, and residual on the contract) Are you going through Mazda or a bank? Likely I'll go thru Mazda because I will negotiate the rate.

However I *will* go to banks and get other rates for comparison's sake. Then when I sit down with the finance manager I know what I'm talking about.

As per the full disclosure -- yes. I am supposed to get all the information as per selling price, MSRP, residual, and money factor. I already recieved all this information for the G35 Coupe and tossed it a while back.. I figured by the time I went to get the car the rates would be different.

The lease rate provided by the manufacturer is not normally negotiable. Ask the finance Manager to see the rate sheet provided by Mazda if you're in doubt.

It would be worth checking with the banks, be careful though they some times have high acquisition fees etc

Do you think this topic would be worth posting as a seperate forum?
If so how do we do that?


A question for you.
What does junior member, member, and senior member mean under people's names?

Originally posted by rotorian
The lease rate provided by the manufacturer is not normally negotiable. Ask the finance Manager to see the rate sheet provided by Mazda if you're in doubt.

It would be worth checking with the banks, be careful though they some times have high acquisition fees etc

Do you think this topic would be worth posting as a seperate forum?
If so how do we do that?


A question for you.
What does junior member, member, and senior member mean under people's names? It's in relation to the amount of posts they have.

Since I am uber-poster, I get special names :)

In all the ads I've seen, they say $16.67/$1000 financed. I assume the *8* would be the same.

Hercules: about the grad rebate. I graduated from med school in may 2002, would I still qualify for the grad rebate? I thought it was good for 2 years...am I wrong?

Originally posted by Goldenhue22
In all the ads I've seen, they say $16.67/$1000 financed. I assume the *8* would be the same.

Hercules: about the grad rebate. I graduated from med school in may 2002, would I still qualify for the grad rebate? I thought it was good for 2 years...am I wrong? The deal is this...

Either 6 months AFTER graduation, or 2 years TO graduation.

I'm in the latter, since I don't *officially* finish my degree till December. But I have only got 6 credits left so it's not a big deal.

Oh that bites the big one. Oh well

yea, I heard that if you are financing with a plan to afford a car with a 48 month or longer, you cannot afford the car. According to carbuyingtips.com

hopefully I will put as much as I can down approx. $18000 for a $34000 (tax,license,fees included). so about $16000 financed over 36 months will be $444 a month. With interest- of 8% (+$35).

we come to $479 a month.

insurance paid off. registration paid. rent - haha no rent :).

hopefully I will have extra to put in some sweet aftermarket things.

did I do the financing to buy correctly?


Suggest reading this great site -
CARBUYINGTIPS (http://www.CARBUYINGTIPS.COM)

I hate to burst everyone's bubble - but there is no telling what the payments to lease this car will be until it comes out and the leasing companies decide what the residual. You can compare it to an Acura TL or a 350Z or a BMW all you want, but it won't matter. There is no magic equation to figure out a lease payment...until the first RX-8 arrives and the lease company decides how much value it will hold. We can all HOPE that the residual will be high since it will be such a rare car the first year, but that is all it is...HOPE.

Agree with RX8Lover. For luxury vehicles (Lexus, BMW, MB, Acura, Infiniti) residuals are usually good and so most people will lease these (nobody ever finances an MB S500 or LS430 - they pay cash or lease).

But for 'lower end' manufacturers residuals can be all over the place and this can effect whether leasing makes sense or not. For example last year I looked at getting a $35k Honda Pilot (brand new on market) against a $41k Acura MDX (same vehicle but 'luxurified'). The lease on the Pilot was HIGHER than the $6k more expensive MDX I ended up getting (I am paying $535 per month inc. taxes) because the residual on the Pilot was lower (unknown resale values at that time), and Honda wouldn't offer a good lease rate (I believe it was 9%) on a brand new vehicle with a waiting list (sound familiar?).

I expect Mazda to offer high rates for leasing and finance on this new car - probably over 7% in both cases. I am sure that I can easily finance from elsewhere at 4.5%, but getting a good lease rate elsewhere may be harder. The residual is what will kill you though - it will probably be low as it is a new car with no resale history. This is just like the Infiniti G35 when it came out - residuals were raised 3 times in the first year as banks realized it held it's value better than the I30 and QX4 etc that the initial rates were based on. Just imagine if the RX-8 rates are based on resale values of Tributes and Proteges.

Personally I hope to lease my $33k RX-8, but only if payments are <$450 per month with minimum down for 39 months/50k miles (never lease above warranty mileage on the vehicle). Otherwise I will finance. Note there is no reason to believe the lease will be $450 or even under $600 per month at this time - it is just a hope. Next year I am almost certain a lease similar to what I want will be under $400, but for the first three preorder batches this year I am not so sure.

Here is an example of how you would do the lease calculations for an RX-8:

Known numbers which YOU decide:
Price of vehicle and options selected = $33,100 = Cap. Cost = TV
Length of lease = 39 months = LL
Number of miles per year = 15,000 (used to calculate residuals)

Guessed numbers which banks will decide when car arives - will change over time
Money Factor guess = 0.00292 = 7% APR = MF
Residual Value guess (based on 39 month and 50k miles) = 48% = $15,888 = RV

CALCULATION
Base Rent per month = (TV - RV) / LL = $441.33
Cost of Money = (TV + RV) * MF = $143.04

TOTAL MONTHLY PAYMENT = $584 excluding taxes based on made up numbers

As you can see the Base Rent (i.e. based on residual) has a vastly bigger effect on the lease cost per month than the Cost of Money (i.e. based on money factor) and the residual is something that you cannot 'shop around for' as it is set by the banks. This is why some perstige vehicles can have reasonable monthly lease payments for their very high MSRP (i.e. going from a $30k non-prestige car to a $60k prestige car will not usually double your lease payment as the prestige brand residuals are so much better).


A simplified example based on more 'normal' lease requirements:
TV = $31,100 (6MT+GT only)
LL= 36 months at 12k miles per year
MF = 0.0025 (6%) (random guess)
RV = 58% (based on 36 month and 36k miles) = $18,038 (random guess)

Base Rent = (TV - RV) / LL = (31100 - 18038) / 36 = 13062/36 = $362.83 per month
Cost of Money = (TV + RV) * MF = (31100 + 18038) * 0.00292 = $122.85 per month
TOTAL MONTHLY PAYMENT = $362.83 + $ 122.85 = $486 (+ Tax of course)


Hope these help. BTW when I tried to lease a G35 last year my dealership got a special deal for me from Chase Manhattan where Chase would pay my taxes on the car ($2360) as my credit rating was over 700 (about 778 I think) but I had to pay a slightly higher money factor. Most dealerships have several sources of finance and lease terms so push them to try other options for you. The residual values for the RX-8 I used in the above examples are 5% below the same months/mileage residual value given for an Infiniti G35 - I might have been a little pessimistic for the RX-8 as I try to prepare for the worst.

Originally posted by Hercules
The deal is this...

Either 6 months AFTER graduation, or 2 years TO graduation.

I'm in the latter, since I don't *officially* finish my degree till December. But I have only got 6 credits left so it's not a big deal. Hercules, you have it backwards. You either have to be within 6 months of graduation OR have graduated in the last two years. My wife used the latter option when we got our Protege5 because she graduated in May 2000 and we got our car in Dec. 2001.

-Stephen

That only applies to purchases at 0% interest for 60 months. Only the manufacturer will ever offer a true 0% rate, and the RX-8 definitely will not have one to start with, because it costs the manufacturer money and it won't need a sales boost when it gets here. Right now the best rates out there are hovering at around 4%, so if you can get that rate and finance for 60 mos, multiply the amount you're financing by .018417 and you'll get your monthly payment. Again, that's all for a purchase, has nothing to do with a lease.

Originally posted by StephenF
Hercules, you have it backwards. You either have to be within 6 months of graduation OR have graduated in the last two years. My wife used the latter option when we got our Protege5 because she graduated in May 2000 and we got our car in Dec. 2001.

-Stephen We're both right :)


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Mazda Canada has announced lease info for the RX 8. Rate is 9.1%
36 month residual is 57%

48 month residual is 50%

Remember residual is calculated on the MSRP BEFORE freight or PDI

Banks may offer better rates but you'd have to compare the residuals, and check if there is an aquisition fee (Mazda doesn't have one)

Originally posted by Hercules
We're both right :)



uh. not to burst anybodies bubble but it says 2002 and 2003 mazda's the rx8 is a 2004. does it still apply to 2004?

Originally posted by ibfubar2000


uh. not to burst anybodies bubble but it says 2002 and 2003 mazda's the rx8 is a 2004. does it still apply to 2004? I will know in a few days, and let you all know.

Hey Gang,
Was just playing around and came across this web site.

www.leasecompare.com

Has RX8 set up to estimate lease pmts from various leasing companies. Since we still have time to play with and kill, this can give you some idea of leasing pmts on your RX8. Mazda probably won't have anything firm until the end of the month on their leasing programs.

Originally posted by budaman
Hey Gang,
Was just playing around and came across this web site.

www.leasecompare.com

Has RX8 set up to estimate lease pmts from various leasing companies. Since we still have time to play with and kill, this can give you some idea of leasing pmts on your RX8. Mazda probably won't have anything firm until the end of the month on their leasing programs.

Stop playing around and get back to work dammit!;)

Originally posted by budaman
Hey Gang,
Was just playing around and came across this web site.

www.leasecompare.com

Has RX8 set up to estimate lease pmts from various leasing companies. Since we still have time to play with and kill, this can give you some idea of leasing pmts on your RX8. Mazda probably won't have anything firm until the end of the month on their leasing programs. The way I did it, it came out to $424 a month with $1500 out of pocket, $31,100 price, and 12k miles a year.

That's about right on what I wanted.

I kind of disagree with the lease thing. Seems like all you do is pay double for not that much of a break. I've been looking at 60 month financing of around 30-32K at about 4% or so and don't see that my payments will be that much more than what we're talking about for the lease. (530-560 range) Financing rates with good credit are so low right that I think buying is much more competitive against leasing than it used to be.

We got especially hosed one time during a move from Colorado to Maryland. Maryland wanted to repeat charge us taxes on the entire amount of the original purchase price instead of the price of the lease. We finally did an early termination and swore to never lease again. (this combined getting hosed by MD with the tax bit, but also the total loss of any value of a trade in we made, etc.) Guess this wouldn't happen if you didn't move much.

Have to admit it's probably cheaper for those of us who trade in every 3 years. Otherwise I think it's just another way to screw the consumer.

Leasing isn't for everybody... there are pluses and minuses to both buying and leasing.

Personally for *me*, leasing is more beneficial... but if you can't think of a reason it is for *you*, then it's not a good idea :)