Hi There,

This is my first and maybe last post.

I have had a deposit on the RX8 since lat Oct. Just received confirmation yesterday that a GS base model, 4 year lease, low km's, no options, nothing down, will run about $780.00/month.

This is ridiculous and a great bait and switch for a car with a price tag of about $36k.

I am so disappointed that the lease rate is 9.2%. It's not that I can't afford it, but on principle I am really P@##@# off!

 

Did you check out the royal bank buy-back? It's essentially a lease and the rate is 7%!

 

Holy @#%@! I guess I won't be getting an RX-8 next year if the rate doesn't change. My coworker is leasing a Lexus RX300 for $760 per month, including tax and no down. His car has an over $50k price tag.

 

Those numbers are wrong, as in incorrect. Based on 36K price, nothing down, 40% residual value after 4 years (which is on the very low side), the payment should be absolutely no more than $740.

Check out Canadian Driver's Lease Calculator - from their Tools page , select Lease Calculator. You can play with the numbers there.

What residual value was used for that calculation? With a more reasonable 50% residual, the payment would be $708/mo.

As Wing said, the Royal Bank buy-back is a pretty good alternative. I just plugged your numbers in on their web calculator, and a 4 year loan on a GS for $36K with a residual value of $15,050 gives a payment of $591/mo. I don't know if that includes GST and PST, but it is still a huge savings...

Regards,
Gordon

 

There is an error in your lease quote. Unless the details changed from May to June.
I calculate approx $605.00 plus tax per month.
With Ontario sale tax it would be $696.00
The residual should be about $19,133.00.
Do you have any more details on the quote?

 

Thanks for all the replies.

My quote came from a dealer in Mississauga.

He did speak about the Royal buy back option and quoted $720 for 5 years.

I too think the calcs are wrong and more importantly, I hope they are.

If anyone gets a definite quote from the Royal on this or has another quote from a dwaler, let me know.

Thanks

 

I can assure you that the Mazda lease calculation on my previous post is accurate. I am a training consultant in the car business, my specialty is leasing. The Royal Buy back will not normally be less for the same term because you are financing the taxes in the loan.

I must add that sometimes it is embarrasing to admit what I do for a living with so many bad experiences being talked about throughout this forum.

I guess it's because the retail car business is so screwed up that I can stay employed!

 

If you go to the promotions page of Mazda.ca you'll notice that the lease rate is 9.1% !!!! Unreal. The finance rate is 6.66%. Wow what a spread. Actually their whole leasing looks completely out of whack. For example, the Miata, they finance it at 1.9% yet lease at 6.15% for 36 mth but then MazdaSpeed leases at 7.25% /36 mth and finance at 6.5% for same terms. I can't understand their logic. It appears that they want to avoid leasing at all cost (except for the MazdaSpeed). That seems to suggest that they expect very few leases to be bought out at the end of lease and fear that they'll be stuck with a large stock of vehicules. Not exactly inspiring confidence.

It does almost feel like a bait and switch, the car may only $37k but with the rates they're offering you could get a car in the high 40's (low 50's) and pay less overall because of competitive financing offerings. Which takes the game to a whole new level. If I'm going to lease, I will be looking elsewhere since for the same payment I can get a lot more car then the RX-8. If I'm going to buy, I won't be using Mazda finance since I can get lower rates then what they are offering.

 

Here are the confirmed numbers on the Royal buy back as an FYI

42544 is the total finance amount for the GS (36k x 1.15)
Residual at 5 years is 12700
Monthly payment is 678

Therefore, total obligation is 53380 if you actually bought it at the end.

Through financing at 6.6 % at Mazda, the payment is higher obviously as it is over 5 years with no buy back but total oblibagtion is only a couple of hundred less.

Maybe we already know this but thought I'd put it down

 

For what ever it's worth here are the residuals my dealer gave me:

24 months - 68% for 20,000 km/yr, 66% for 25,000 km/yr.
36 months - 59% for 20,000 km/yr, 57% for 25,000 km/yr.
48 months - 52% for 20,000 km/yr, 50% for 25,000 km/yr.

 

Just got an approved finance rate from Bank of Mtl for 5.8% for 4 years. I'm still looking but that's the best purchase finance rate I've been able to find thus far...