mindsink

Ok, so I went on Saturday looking to lease a 6MT w/sport pkg + nav.

First off, the salesman was only willing to give me the $2500 incentive...and tip-toed around the $1000 incentive. I did not see a $750 incentive in his "master list" which he gladly showed me.

So...MSRP = $30,300, INV = $27,846.

He offered me a Cap Cost of $25,495...which is $2500 off the INV. Residual is $19,695.

Here's the lease offer: $3500 down, which consists of $2000 cap reduction, and $1500 for 1st & last month's payment + fees. Montly base is $260.64 + $17.17 tax + $25.50 property tax = $303.31 / month.

I haven't told him about my trade-in yet.

What do you guys think? Is this good?

RotorGeek

Yeap that looks good.

jgoldstein2000

3 year lease or 2?

mindsink

Oh sorry, forgot to tell you guys that this is a 2 year lease.

RotorGeek

Thats what i got, and the numbers are the same. Mazda is finally giving better deals

mindsink

I'm hoping to get at least $3500 for my trade-in. Then I can use that for my downpayment.

zoom_gator

mindsink --

If the cap cost is $25,495, does that include the cap cost reduction of $2000 you mention in the $3500 down-payment? Also, your "fees" amount to approximately $900 ($1500 - $303 - $303). What are those fees (i.e, acquisition fees, additional cap cost reductions, etc.)?

My recommendation: if the invoice is $27,846, and you're getting a $2500 incentive from Mazda, you're at $25,346. Then you're putting "down" another $2,000, so your cap cost should now be $23,346. Also, are there any cap cost reductions in your fees (mentioned above)?

One other question: what is the money factor (interest rate) on the lease?

I posted a thread earlier (here) with additional information on leasing. Send me a PM with your e-mail address and I'll send you an Excel spreadsheet for calculating lease payments. (I don't compute the property tax since I live in Florida, and I would assume that it varies by state. I'd assume it's easy to add ... ???).

ZG

Mazdax605

I just got a quote from my local dealer on a base 6 speed in Nordic green.It was $309 a month on a 2 year lease.That included the sales tax 5% here in Mass,plus excise tax of $30 a month(the excise may just be a Mass thing).This is with a MF of .00305(=7.4%),and a residual of $17680(65% of MSRP for 6 speed models on 2 year lease).This was with the $4250 lease incentive,and no money down aside from first ($309),security($325 they round up to the $25),plate fee($80 something i think),and the aquisition price of $475.All that equals around $1200 at signing.

The money factor is quite high on these leases,but mazda is making up for it with the incentives.My guess is they are trying to make their money as a bank would rather than like a car company right now.Plus I think they want to unload the 04's pretty bad.

mindsink

The $25,495 doesn't include the $2000 additional I'll be putting down for cap reduction. So, $23,495 is the final cap amount. Do they use the reduced cap cost to compute the interest, or the original cap cost?

I don't know what the $900 in "fees" are. I guess I should find out, huh?

I don't know what the money factor is, but I figured out that about $158 is the raw value and $102 is the interest (residual - base / 24 = raw value. $260.64 - raw value = interest. Interest / balloon amount [cap + residual] = money value? So that's about 0.00227?

zoom_gator

The formula for leasing uses the MSRP and *final* cap cost (after all negotiations, down-payments, cap-cost reductions, etc., etc.), amongst other things. The money factor is the interest rate divided by 2400. You mentioned 0.00227 -- that means the interest rate is 0.00227 X 2400 = 5.448%, which is very reasonable. From what I understand (I do not work in the banking industry), the money factor is based on your credit rating.

Good luck!

ZG

mindsink

Did you mean the final cap cost and residual (not MSRP)? cap cost + residual = balloon amount to calculate interest on?

jgoldstein2000

Use an online lease calculator... interest on a lease is completelty different than a normal loan...

http://www.leaseguide.com/calc.htm