Eddie13

I'm looking into leasing an '06 RX-8 now with all the rebates that are available i.e. $2500 total. The dealer has a Silver '06 MSRP $28,095 AT (need AT city driving) with appearance package. The salesman says the invoice is $26, 129 - $2500 (rebates) = $23,629. For 36 month lease $12K miles, he says he can do $1500 down $399/month +tax. He's says that leasing isn't the best option since the residual values are low for the RX8's.

Can anyone with an experienced or keen eye provide some feedback on this deal? Can it be improved upon? I think I'd rather a 2 year lease.

dupa12345

4800 loss a year .. someone please tell me how are leases comprable to purchases at all .. i guess maybe to bad purchases because maybe some do experience 5k a yr depreciation but damn id rather drive a chevy aveo then loose 5k a year

rodrigo67

This sounds alittle like my lease.

Back in 04 I got an 04 8, 6sp, appearence pk, touring pk, and spoiler for 24,500. MSRP was just under 32K minus alot of rebates, 1500 down but with payments of only 279 per month for 30 months/30K. Buyout after 30 months is 192xx.

399 sounds high for a 24K car. It might be better just to buy it at that price...

I did a quick calc on the mazda site for your price 23629 with 1500 down at 7% and come out with a payment of 436 per month. For 36 more bucks I say buy it and don't worry about a buyout price or lease restrictions...

rodrigo67

Leases compare because I don't have to worry about depreciation prices. My buyout is 19K, but the car is not worth 19K, so I will be giving it back to mazda and they will have to deal with a 19K car thats only worth 15K or less. If I had bought this car I would be taking a blood bath when I traded it in.

In the end I paid under 8K for 2 and half years of use on a 32K car, which isn't bad, and Mazda gets to worry about resale value...

I feel sorry for the guy who paid 32K for the same car, got 500+ monthly payments and the car is just worth 15K. Now thats a serious loss (17K in 2.5 years).

dupa12345

something is definatelly wrong with their buying/selling skills if they get a car for 32 and sell it for 17 .. i guess some ppl have a lot more disposable income

rodrigo67

unfortunately some have. People who have had bad milage, lots of mechanical issues and didn't want to deal with it anymore, guys who went to Z's, evo's, sti's, or even one guy who went to a big suv. I remember one guy who had a loaded 8 for 34K and got rid of it a year and a half later for a trade of 22K.

These cars will continue to lose value because the perception on the street and from dealers are that these cars have major engine issues and are unreliable.

I was at one of my dealers last week and the sales manager asked what I drove, and I told him a mazda rx8. He said he had one as a trade recently. He said it drove nice, handled awesome, and was very comfortable. He also said that it was on the lot forever and he couldn't sell it, and had to let it go to a wholesaler. He then said he most likely won't ever take one in as a trade again. That is the perception out there and the price will only reflect what people are willing to pay.

Thank god I leased...

CarAndDriver

I wouldn't even bother with an AT 8. I'd drive something else. But go for it, if that's what you're into. You'll find that most 8 fanatics on here drive 6 speed manuals.

For a city car, I really like the new GTI 5DR.

Eddie13

I've bought 3 cars in the past and leased 1 and I have to say that leasing is DEFINITELY the way to go especially if you only plan on keeping the car for 2-3 years. After 3 years, car warranties usually expire and that's when cars start to give problems. So then you're stuck with a car that's 4+ years old w/o a warranty paying a monthly payment and for repairs?! Thanks, but no thanks. ....Not to mention that leases are great tax deductions, and you don't have to deal with the hassle of selling your car. Moreover if you pay your car off, after interest you've probably paid $3K-$5K more than the value of the car due to interest and taxes, remember with a lease you only pay a portion of the taxes.

skopiec

This is a good point - additionally, if you really do want the car, most leasing companies will negotiate the residual (in my experience). Of the 2 cars that I've purchased at the end of the lease, I've gotten at least 3K off the residual. The leasing companies really don't want the car's back either....

rglbegl

UHHH!!!! HELLO!!!!
$0 Down and my payments are less than $400/month.

Residual values on mazdas are horrible right now.
You can lease a $38000 Toyota for $299/month + tax ( I work for Toyota)
Wierd the salesman would fend you off the lease, that is where he makes the most $$$

The good part about the lease is that you can RUIN the car and then return it.( as long as it appears to be okay.)
A lease does give you good options though. You can return it. Sell it on your own. OR buy it out.

PM me with any specific questions, this is what I do for a living.

Eddie13

Well I picked up the car on Saturday....I leased an 06 AT Silver w/ appearance package for 36 months and I got them to throw in the rear spoiler and tints. the dealer bought out the remainder of my current lease which really helped as well...just as an FYI for those who aren't up to snuff with leasing, you can actually sell a leased car, and sometimes even turn a profit.

I drove the MT 8 and it was nice, but realized that I would be kicking myself 3 months down the road when i was stuck in traffic, and in Miami, there is traffic just about all day every day! Have had 4 MT cars in the past...will buy one again if it's A) my second car or B) I live in Pasco County FL, population 5000.

The AT's paddle shifters on the sterring wheel are great, ala formula 1 cars, and are very responsive. Nascar is actually thinking of switching their cars to paddle shifting as well and losing the clutch all together.

All in all, so far Im happy with the car although it sure is thirsty for the 93 octane!

jimbo99

Eddie 13,

So I have a question on the lease. Did you negotiate the price first or did they just tell you that the Mazda lease is $$ per month and throw in the other "freebies"?

I tried to get a local dealer to give me a starting point on their remaining 2006's and all they emailed back is if I wanted to get in on an RX8 for little money I should lease. What kind of answer is that to "What kind of deals are you making to clear your 2006's with 2007's on the lot?"

I figure I'd negotiate the best price and then after deciding that I didn't want the payments to buy, have them swicth to a lease deal.

Wankel_lover

I leased a nissan here in Texas awhile back and got hosed EVERY YEAR on taxes. Maybe someone here could clairfy this for me but in Texas for whatever reason you pay taxes on the value of the car every year. That just killed me with leasing. Anyone here try swapalease?

Eddie13

You always negotiate the price first. You can tell them up front you're leaning towards leasing. Always give as little money down as possible. They came to me with an offer of $1600 down and $415 per for 36 mnths. I told them, heeeellllllllll no! I told them I would give $1500 down max, and I wanted to be under $390 a month with taxes.

If they want to move the car, they'll play with residual, the price etc.. to get you to that payment if it's possible. They came very very close and I told them I would do the deal if they'd throw in the spoiler and the tints, about $400 value.

Keep in mind that each market is different, and that just b/c someone got one deal, you can get the exact same deal. Perhaps you can do better, or maybe a little worse.

nycgps

iTrader: (1)

its either this is your first *brand new* car, or you simply never had your own car before.

For a lease, say Car A 's selling price is 30 K + tax and other crap, you're on a 36 month lease @ 300 a month + and all other deposit crap that you have to put and insurance cost might cost more than buying (cuz some companies want you to put less deductiable in case you total the car)

In the end of the lease you still pay maybe up to 1/2 price of the car (insurance does NOT included) but you still does NOT own it.

Have you ever wonder why car companies want people to Lease instead of buying ? theres a reason for that, and its to make more money.

Lease is good for people who change their cars every 2-3 yrs or so. but if you want to keep the car, Buying is the only way to go.

and all cars lose most of their value on their 1st year of ownership. I hope you understand that. You lose maybe 5 grand just for signing the sales contract.

Eddie13

Of course! Anyone with any sense will tell you that you should never ever lease a car for more than 39 months! Once you go beyond that, you end up paying too much and are better off buying.

If you buy, you better put a good amount of money down or else you could end up upside down on the car. This is especially true with a car like the RX8 which is currently suffering poor resale values.

rodrigo67

Nope, had lots of cars, not the first or even in the top ten new cars I've owned.

Lets go over some numbers. The car MSRP'ed at 32K. I put 1500 down plus 279 per month for 30 months which comes to 9870 including interest. Not even close to half the price.

The car depreciated to 15-17K, but Mazda wants 19,200 to buy out. This would be really dumb financially to take this deal, so I have the option to walk. Driving a 32K car for 2.5 years for 9K is not a big deal. It was bought as a toy. Also, I only have 16K on the car and the lease is for 30K, leaving me way under and at 15 cents per mile, I'll be getting 1800 back for unused mileage, bringing me under 8K for the deal.

You can look at it as wasting 8K, but then most cars are a waste of money cause you never get what you put into it. If I had bought it for 32K, made bigger payments, it would still be only worth 15-17K.

The reason I leased was because I wasn't sure if I was keeping it, not sure of the rotary, and not too sure of Mazda.

So, is it better to drive around in a nice car for 3 years and pay alittle or buy the thing, pay alot, and lose even more when you trade in. And yes, I have a new car every 2 to 3 years...

HolyCross05

Rodrigo what will your next car be?

Eddie13

I agree with you 100%. I bought my first 4 cars and now I just leased my second (RX8). I think the advantages of leasing far outweigh purchasing unless you own the vehicle 3+ years. Many people still have the old fashion mentality of leasing. Meaning when leasing first was introduced, it was regarded as only for the wealthy or higher end vehicles.

Nowadays, with low down payments and monthly payments it's much more economical to lease....much better than having to drop $10K on a new car (depreciating asset) just to have reasonable payments. I'd rather keep $9K in my pocket and put down $1K to drive the same car. Don't forget, you can sell or trade in a leased vehicle! My friend leased a corvette for 3 years and sold it just before it was up for a profit!

rodrigo67

I've been thinking about this alot lately.

Here's what I'm looking for:

A handling car.
At least 220 hp
4 seats ( 4 doors prefered but not required)
available in manual
rear wheel drive.

There is a very short list. The solstice/sky, 350, s200 are out because of seating. mustangs and chargers are out due to handling. I hate the way the evo's/sti's look. lexus IS is only auto. Not alot left.

BMW 3 series or G35, but pricey for a toy.

Which all comes down to....nothing. There is nothing out there that fits what I'm looking for, so if I settle (which is unlikely) I could look at some front wheel cars:

Mazdaspeed 3, RSX -S (discontinued), Cobalt SS. No honda civic in my future.

Or some awd cars:

Legacy Gt or mazdaspeed 6. I hate the way the WRX looks.

again it looks like nothing but some nice cars coming in the next 2-3 years. Gm's got a new generation of RWD cars coming out. The commodore is suppose to have 50/50 weight and over 300hp, and Nissan is dropping the 3.5 liter into almost everything thier making. Now if they could make a new 240 I would be interested. Should be interesting, but for now, there is nothing that excites me...

I doubt I would ever get another RX...but if mazda decides to drop thier 2.3 turbo into an MX8, I would most likely get one of those...

Razz1

At the end of the lease you can continue payments on a month by month basis.

Then you can buy yhe car when you want or turn it in when you want.