ibfubar2000

anybody know how much the average lease payment is on a $33,00 car?

Hercules

Depends on the residual and money factor you get.

However figure this... for a 36k G35 Coupe, I can get it for ~500 a month with only inceptions out of pocket.

So you can do the math on that... generally it's $20 for every thousand that's why I'm figuring on around $400 a month on the RX-8. Granted though, my car comes in at $31,100, plus a $500 college grad rebate.

ibfubar2000

great thank you very much!! that does help give me a ball park figure. thanks i appreciate it!!!

eccles

I'm not following your math. The two examples you gave work out to around $13/month per $1000, not $20. What am I missing?

Hercules

On leases, it's a *general* rule that for every $1000 you give as a down payment (or lesser the price the car) it reduces your payment by $20 a month. Granted, there are mathematical anomalies that I can't account for that gives car companies a profit.

However it's a fair rule of thumb to go by the $20 a month reduction, regardless of how you divide it out. You can ask at other dealers (BMW, Audi, Lexus, Infiniti, Nissan) and they will all give you that roundabout.

MRocks

I'm leasing my CL, loaded for a total price of around $33-$34K with payments $500 a month. It will probably be in that league depending on how much you put down. Btw, I put nothing down.

Hercules

Did you pay for the inceptions or were they covered as part of your lease?

MRocks

Honestly, I don't know. All I had to pay I believe was the first month payment and I think some other fee, for a total of 1K. Honda/Acura have this thing (well in my area at least) that if you have leased or owned a previous car from them then you don't need to pay security deposits and crap like that.

Hercules

Yea at around 1k, that's covering inceptions too.

I'm probably going to put $2000 down on the RX-8 just so I have more money in my pocket on a month-to-month basis.

norats

herc, college grad rebate?? standard mazda rebate or what?
thanks

Renesis08

You are leasing the car??? This is a must own :D.

Hercules

It's a standard Mazda rebate... I have to check to see if it applies to the RX-8 on June 3rd, because that's when the program comes up for renewal.

I gave them a call today and they told me to call back on the 3rd to double check.

ibfubar2000

i have to leqase so the monthly payments will be less. besides i never keep a car more than 3 years. so i will just lease a new rx8 again in 2006

eccles

I'm probably going to lease, too. The way I see it, I can keep the money we got from the sale of my 10AE as a buffer against possible job loss in the current economic climate. Heaven forbid, if I did find myself out of work for a while, the extra liquidity would make things that much easier. If not, then we can use the funds as part of the buyout at the end of the lease, if so desired.

Speaking of which, being the first year of a new car, the chances are that the residual may be off by a fair margin. If the car holds it's value better than expected, we have a guaranteed buyout that may be under the then-current market value. Conversely, if used car prices are well below the residual at the end of the lease, we can walk away from it and pick one up on the open market. I'm past the point where I become emotionally attached to my cars.

rotorian

Leasing is the best way to go. Mazda is using strong residuals and that drives a lower payment. Most people who finance take, 60,72 or 84 month terms. Then when they want to replace the car early (and most do) they're way "upside down" (negative equity) 36 months is always the best compromise for the term.

The $20.00 dollars per thousand rule is only on 60 month contracts, lease or finance, it's only to calculate the difference in payment with more or less down.

I'm now going to attempt to show you how to calculate a lease.

Take the price minus the residual, divide that by the term for the monthly depreciation. The interest is calculated this way: price PLUS residual, divide by 2 (this gives you the average amount financed) multiply that by the interest rate and divide by 12. You now have the monthly interest. Add the monthly depreciation amount, and the interest together for the total payment. Then multiply by the tax % for where you live to get that monthly amount. Add it together for your total amount.

Any down payment should come off the price (you still have to pay tax on the down) so you will save interest on that.

It's $33.00 for 36 months, 25.00 for 48, and 20 for 60 months for the quick factor as I mentioned above.

Remember, the residual is ALWAYS calculated using the MSRP, not the selling price. (this is to your advantage because it results in a higher number, thus a lower payment) Of course we are all paying
MSRP or more for the RX 8, but I mention it in case you wanted to figure out another lease.

Sorry for the long post, I hope it makes sense. Take your numbers and try it out for yourself. If anyone has questions, just e-mail me directly.

Maximus

I've never leased before so my questions may be extremely silly :-)

- what is money factor? is something similar to APR that you pay if you finance a vehicle?

- how does your credit history affect the lease payment?

- does the dealer rip you off at the end of the lease term with unforeseen fees?

Thanks.

rotorian

There is no such thing as a siily question.

The money factor is just the rate but into a decimal type of form that you multiply times the price to get your interest rate.(leasing only)
It is always divided by 24 to get the rate.
For example 0.246 x 24 = 5.9%

Your credit rating needs to be as good if not better to lease. You should still be able to build up your rating by leasing.

As a rule dealers don't normally add much at the end. There may be a documentation fee, the car has to have a safety inspection if you're buying it (ownership change)

If you don't buy it, you are responsible for anything beyond normal wear and tear. Also a mileage charge if you exceed what was on the contract. These items are charged by the lease finance source (typically the manufacturer)

Hercules

Hrmm... why do they multiply/divide by 24? What if you have a 36 month lease, as I'm planning to have? Actually... if the payments are better, I'll likely go with a 39 month lease.

rotorian

I don't know why you multply by 24. I guess a math wiz would know the answer.The factor was done originally by the lease company to make it easier to quickly quote payments. It also was used so the rate wouldn't have to be discussed. Most people don't understand leasing, so if you asked the rate and it wasn't attractive, the dealer could just say there isn't a rate, it's a"factor"

39 months could be good, usually they use the 36 month residual, but it's a bit cheaper because of the 3 more months in the term.

I'm curious, being from Canada, do you have full disclosure where you are? (selling price, actual % rate, and residual on the contract) Are you going through Mazda or a bank?

Hercules

Likely I'll go thru Mazda because I will negotiate the rate.

However I *will* go to banks and get other rates for comparison's sake. Then when I sit down with the finance manager I know what I'm talking about.

As per the full disclosure -- yes. I am supposed to get all the information as per selling price, MSRP, residual, and money factor. I already recieved all this information for the G35 Coupe and tossed it a while back.. I figured by the time I went to get the car the rates would be different.

rotorian

The lease rate provided by the manufacturer is not normally negotiable. Ask the finance Manager to see the rate sheet provided by Mazda if you're in doubt.

It would be worth checking with the banks, be careful though they some times have high acquisition fees etc

Do you think this topic would be worth posting as a seperate forum?
If so how do we do that?


A question for you.
What does junior member, member, and senior member mean under people's names?

Hercules

It's in relation to the amount of posts they have.

Since I am uber-poster, I get special names

Goldenhue22

In all the ads I've seen, they say $16.67/$1000 financed. I assume the *8* would be the same.

Hercules: about the grad rebate. I graduated from med school in may 2002, would I still qualify for the grad rebate? I thought it was good for 2 years...am I wrong?

Hercules

The deal is this...

Either 6 months AFTER graduation, or 2 years TO graduation.

I'm in the latter, since I don't *officially* finish my degree till December. But I have only got 6 credits left so it's not a big deal.

Goldenhue22

Oh that bites the big one. Oh well