LanceaRoo

Here in Cary, NC...Got an RX-8 (silver) that stickered at $31,154 (Grand Touring Pkg, Spoiler, Rotary Accent, Navigation). Did not pay a single dime out of pocket and am leasing for $400/month for 48 months.

In my mind, I got a pretty good deal!

RX8Z

What is your buyout price? Did you have to pay for 1st month payment? Tax, MV, doc?

Sue Esponte

That means that over 4 years you're going to pay for 2/3 ($20K) of a $30K car and walk away with nothing.

IMHO, that's a very low residual...very good deal for the finance company. After 4 years the car should be worth more than $10K...which means that you're paying for more of the car than you're actually getting value for through the lease. To me, this defeats the value of the lease.

Of course, this is entirely untrue if the RX8 doesn't hold its value and is a brick in the used car market.

-Eric

eccles

Conversely, a zero-down loan for 48 months at 8% would cost a total of $36.5k over the total period, at the end of which he would own the car. Even if the vehicle holds 50% of its value over four years, he would have paid $36.5k and be left with an asset worth $15.5k, meaning the net cost over the four years is...the same $20k that he's paying to lease it!

In other words, it's a wash. But by leasing, he has a guaranteed buyout price four years down the track. If the car holds its value better than anticipated, he can buy it for the residual and get a bargain. If it doesn't do as well as expected, he can simply walk away, leaving the leasing company to sell it for less than they had hoped.

Leasing makes a good deal of sense in some circumstances - the key is understanding the pros and cons of leasing vs buying, and doing your homework before making a decision.

BTW LanceaRoo, congratulations!

LanceaRoo

To clarify, I am paying for taxes in the car payment (3% in NC, without tax the car payment would be around 385/month). Residual value on my lease is listed around $14,950 after 4 years. Still think I did pretty good...

Thanks for the comment Eccles!

I pick it up tomorrow morning and can't wait...Silver with red/black interior! Yeah!


-Lancearoo

Megatron_98

Sounds good to me, great to hear from another person from NC, I'm in Charlotte too, I have looked at a 3 dealers around here. still holding out for an 05 so I can save up some $$ or save on an 04 right before the 5's come out :D . How has the service been at the dealer? I'm willing to drive to get a good deal and service.

LanceaRoo

God I really screwed up this post...car actually stickered at $32,894 and I got it down to $29,600 (about $750 under invoice).

Megatron-Greeting from the Piedmont area! Service has been excellent here (Capital Lincoln/Mazda of Cary). I think it could be worth the trip...

-LanceaRoo

Sue Esponte

Agreed...but a buyer with halfway decent credit can easily find a new car loan today for ~3.9% and many manufacturers are offering even lower financing incentives today.

8% would have made sense in the Clinton days....but today it would be outrageous.

-Eric