Rebates, Incentives and Leasing
 

I am in the middle of pricing negotiations with my dealer for a 2005 RX-8 Sport Manual. This is my first time to negotiate on a car with incentives and rebates, so appreciate any guidance here.

The dealer has said that they like to process the rebate and have Mazda send it to the customer, since they have had trouble in the past. I'd like to avoid the trouble where the dealer would "steal" the rebate, or potentially have it not paid by some error. Which is why I would prefer for them to give me the money up front as a downpayment on my lease.

Here are the rebates/incentives that I am going to use. Which of the following can I "force" the dealer to use as a downpayment on the lease?

1. MAC $2000 lease incentive
2. $500 off from Zoom Zoom live
3. $500 Gerber rebate certificate

Appreciate any experience and feedback.

TIA,

rxChris.

leasing's for suckers

If that is the case
 

If leasing is for suckers, then I'm a sucker. However, I like to change my cars every 2-3 years, as cars are my only vice. Here in California, we don't get a credit on sales tax. I paid $3000 on my current 2003 BMW 325i in sales tax, that I won't see a cent back from when I sell it. So if I went and sold my car now, assuming $7000 in depreciation, then I would be $10000 in the hole. If I had leased, it would have been around $350 per month. So I would have been better off leasing.

The RX-8 is going to be my fun car. In 2 years when I want something else, I will be glad I leased rather than bought. And - Mazda bears the depreciation risk, whilst I retain the option of buying it. It is also much cheaper to transfer a lease than sell a car after a year.

To each their own. You may even say I'm a sucker getting the RX-8 - its going to my personal second car (or first car - haven't decided). I only put 10K miles on the BMW each year. As someone said - I'm on earth for a good time, not a long time.

Thanks,

rxChris.

There's nothing cheaper about leasing a car. If you live paycheck to paycheck, then yes, the illusion is that leasing is cheaper.

I'm sure Mazda is in the business of bearing the depreciation risk (aka losing money) in a leased vehicle :confused:...

If your on earth for a good time and not a long time, then why not lease an M3 or S4 or SLK350 ;)

To get back to the original question, the MAC rebate should be easy to apply immediately. I'm not sure about the other two. I'd try another dealer to see what they say.

As for the sidetrack, leasing is not always bad. I have posted several examples in the past that show a lease-buy can be just as good financially as a finance, especially when there are rebates on the lease which are not available on a purchase. I my case, I could have put down $12,000 and financed for five years at $400/month, or leased for four years at $400/month, and buy for $14,000. Total cost for a $30,000 purchase was within $1000 (leasing was slightly more, but the car will be mine in four years instead of five).

Unlike the purchase, I have very little money tied up in my car for the first four years.

When MAC will lease you the car for 2% or 3% money, it is not. It is the same or cheaper to lease then buy then to just buy - and if decide not to keep the car you turn it in and walk away, while all the "suckers" that own or are paying on their cars are trying to find a buyer - and the 8 does not hold value well.

By your logic, financing is for suckers as well - just save until you can pay cash.

Nothing wrong with leasing if you know what you are doing and you can get a super lease deal (like I have).

Dennis

In most places they will tax the rebates, so there is no TAX reason to let the dealer have them VS getting the money back.

For the dealer to get your money you have to sign a form for each rebate assigning it to the dealer - if you don't sign that form then the dealer can't get your money.

The $2k MAC lease rebate should be no problem and they should take that right off the top. I am sure some dealers have been burned by the Gerber rebate with folks not having the original Gerber card - as it clearly states on the rebate certificate. I didn't have the Zoom Zoom live rebate, so I am not sure how "solid" that is, but I can see where the dealer might be worried about getting the money back. If you are legit in getting these and have all the stuff you need, then I would insist they take them - and maybe even call MazdaUSA to explain the situation and confirm you should be getting these - and even try to have them confirm this to the dealer.

You should negotiate the price for the car the same as you do if you were financing or paying cash - so make them deal the price of the car down to invoice or below then take off the rebates. Use an online lease calculator to check all the dealer numbers to make sure they don't add anything back onto the deal when you are not looking.

Dennis