REVscene - Vancouver Automotive Forum

mikemhg · 05-12-2018, 10:22 AM

Hoping someone with better lease knowledge can answer a quick question for me here.

Our Mazda 3 lease is up next month, so we're looking to move over to a CX5. We were at the dealership last night to take advantage of a manufacture event. I'm looking to see if what I negotiated is legitimate or if we're getting fleeced.

For a 2018 CX5 AWD GS (With sunroof) with our loyalty discount, and $0 down, we were quoted @ $240 bi-weekly, added free weather mats, etc. Lease is for 36 months, 20KM per year.

Is this a fair ballpark, or should I push any further?

Funnel · 05-12-2018, 10:48 AM

I just run a quick quote from Mazda.ca, the payment is around $261 bi-weekly. So there is approx $1500 discount given.

I am not sure what's the loyalty discount is, from the dealer or manufacturer? so I didn't put into calculation.

It also depends on the condition of your lease return (Mazda 3), if it's in good condition the dealer might have some equity from your previous lease used toward the new lease.

mikemhg · 05-12-2018, 11:00 AM

They indicated an additional 1% interest rate discount for loyalty, we received $400 back towards servicing/oil changes.

You might be right on the Mazda 3, in terms of the equity. It was a 2015 kept in great condition, with 44K KM. So maybe that's where some of the discounting is coming from.

tiger_handheld · 05-13-2018, 11:02 AM

Is there any equity built into that?

240 bi weekly sounds cheap? 18k car.
i think the GS's are going for around 30k?

mikemhg · 05-13-2018, 12:11 PM

Maybe? I haven't gotten the raw figures, but it sounds as though the price is pretty fair, Funnel is offering me some good advise as well via PM, this forum is always useful.

Funnel · 05-13-2018, 12:23 PM

Quote:

Originally Posted by tiger_handheld

Is there any equity built into that?

240 bi weekly sounds cheap? 18k car.
i think the GS's are going for around 30k?

it's a lease, so there will be another $18k at the end of 3 years lease.

tiger_handheld · 05-13-2018, 05:23 PM

Quote:

Originally Posted by Funnel

it's a lease, so there will be another $18k at the end of 3 years lease.

Makes sense.

I'm looking at leasing a car as well - will PM you now that you revealed you are SMRT

yray · 05-14-2018, 09:09 AM

Whats the residual??

tiger_handheld · 05-14-2018, 08:02 PM

Quote:

Originally Posted by yray

Whats the residual??

Quote:

Originally Posted by Funnel

it's a lease, so there will be another $18k at the end of 3 years lease.

..

Hehe · 05-14-2018, 11:34 PM

Don't ever... let me repeat... EVER focus on the payment numbers. There are many ways to work around it and it's not relevant when it comes to whether you got a good deal. In your case, they put it into a bi-weekly payment making you feel it's cheap.

I've had my experiences leasing and there is only one thing that matters:

Total obligation, which is derived by 4 components:
Final price (before tax) - the lower the better
Term - this is subjective, but it doesn't make sense to do a 60mth lease, usually go for 36
Interest rate - the lower, the better
Residual value - the higher, the better

Get those 4 items and then you can easily calculate the payment or more precisely, your actual obligation to have the car for x-amount of time. In your case, I calculated 26(payments per year)*3=18720.

Not sure all of the options and rate, but a quick check on 2018 CX5 GS AWD shows 31500MSRP, which means a residual of just over 40%; horribly low for 3yrs.

yray · 05-15-2018, 10:23 AM

Quote:

Originally Posted by tiger_handheld

..

percentage

it could be 18k out of 45k 50k 18k

also website is calculations are always off

white rocket · 05-15-2018, 01:46 PM

I'm in the leasing business (sub-prime) and this is easily the best info given. Focusing on the payment basically allows the salesman/business office to run wild with the other factors(credit dependent). People get sucked into long terms by only focusing on the payment and fail to realize the total obligation they signed up for. I will add that you should make sure that the residual value at lease end is not guaranteed, meaning that any shortfall from the sale of said unit would be the customers responsibility. That's not the norm as most manufacturers only focus on over mileage and physical damage or excessive wear/tear so that should be your only obligation at lease end. But always good to clarify.

Quote:

Originally Posted by Hehe

Don't ever... let me repeat... EVER focus on the payment numbers. There are many ways to work around it and it's not relevant when it comes to whether you got a good deal. In your case, they put it into a bi-weekly payment making you feel it's cheap.

I've had my experiences leasing and there is only one thing that matters:

Total obligation, which is derived by 4 components:
Final price (before tax) - the lower the better
Term - this is subjective, but it doesn't make sense to do a 60mth lease, usually go for 36
Interest rate - the lower, the better
Residual value - the higher, the better

Get those 4 items and then you can easily calculate the payment or more precisely, your actual obligation to have the car for x-amount of time. In your case, I calculated 26(payments per year)*3=18720.

Not sure all of the options and rate, but a quick check on 2018 CX5 GS AWD shows 31500MSRP, which means a residual of just over 40%; horribly low for 3yrs.