0.0% Lease Rate for 2 Years

[Konowl]

I did a bit of the math, but my brain started hurting.

Leasing a Mazda 3 GT, using the online website, with $5000 down for 2 years gives you a monthly rate of $174 with a buyback of 15,700. 0% lease rate sounds great, and I could easily buy the car after two years.

Decisions, decisions. Discuss.

[gordholio]

Same as 0%.

[Konowl]

Same as 0%.

Reeeeally. I'll go and fix my post, thanks for that simplification, I was oblivious!!!!!!!

[blexann]

I did a bit of the math, but my brain started hurting.

Leasing a Mazda 3 GT, using the online website, with $5000 down for 2 years gives you a monthly rate of $174 with a buyback of 15,700. 0% lease rate sounds great, and I could easily buy the car after two years.

Decisions, decisions. Discuss.


I'm always leery of those 0% offers - can they hide the interest in the price of the car ?

[Konowl]

I'm always leery of those 0% offers - can they hide the interest in the price of the car ?

Isn't it best to negotiate the price of the car first though?

Not overly educated on Leases, however. Kinda why I posted this topic.

[blexann]

Isn't it best to negotiate the price of the car first though?

Not overly educated on Leases, however. Kinda why I posted this topic.

I would do some research on leasing before going to the dealer.

..the first question your going to be asked by the slime bucket salesmen is are you leasing or financing ?(they do not want you to pay cash since they lose out on that kind of deal).

they then base 'their' negotiating tactics based on your response

[Konowl]

Oh for sure... I really hate dealing with car salesmen...

[bluetroll]

if you are leasing... ask about security deposits... they will usually lower the lease rate....

reallly do your math when deciding to either lease or purchase... if you're going to put a large sum of money down on finance, then compare it to putting that same amount of money into investments (a fairly safe return on investment is about 3%) for the length of the lease....

if you add up all the figures, you'll realize that sometimes leasing is only a few hundred more at the end, but you get the security of being able to competely walk away from the car even after a huge accident as long as u repair it to decent shape, they hafta take it back.

on the otherhand, if you financed, you would be losing a lot of money in depreciation because of the previous accident....

I just purchased my first car, so I've done my research.

[ShadowVlican]

yea i just saw that 0% leasing yesterday too

i'm tempted to buy my first car now...

[charliebrown]

lets see if this can be a basic summary of leasing

lets say car A costs $30,000 + tax (ignore freght, pdi, a/c tax for the moment)

36 month lease, the car has a residual (estimated value) of 50% = $15000

so, if it's truly a 0% lease, your payments should be:

30000-15000 = 15000 / 36mths = $416.67 (assuming zero downpayment)

you can see if they're charging you interest by multiplying your payments by the number of months adding the residual and comparing that to the cash price upfront

remember, when u lease, u pay tax on the 416.67 only (if you buy out, you also pay tax on the $15000 at the end of 3 yrs) If you buy, you pay tax on $30000 up front

[Konowl]

if you are leasing... ask about security deposits... they will usually lower the lease rate....

reallly do your math when deciding to either lease or purchase... if you're going to put a large sum of money down on finance, then compare it to putting that same amount of money into investments (a fairly safe return on investment is about 3%) for the length of the lease....

if you add up all the figures, you'll realize that sometimes leasing is only a few hundred more at the end, but you get the security of being able to competely walk away from the car even after a huge accident as long as u repair it to decent shape, they hafta take it back.

on the otherhand, if you financed, you would be losing a lot of money in depreciation because of the previous accident....

I just purchased my first car, so I've done my research.


So what did you do in the end?

Leasing at 0% interest for 2 years and then buying the car outright doesn't seem like a bad idea to me....

[lexus]

If you really consider own the car/van at the end of lease (buy back). Then it is better for you to find out the total cost. Not only the lease portion but the buy back + taxes (finance cost as well).

For example, in your case when you buy back the Mazda 3 GT. Do you have enough cash or need financing? Used car financing rate is very high (~7% or above). Even if you have secure LOC, you may still looking for Prime.
But for Mazda 3, I think they have 0% financing for 2 years or 1.8 or bit more for 4 years. So, if you are type of person who will buy back at the end. Financing thru Mazda over 4 years term maybe better.

Be caution on the leasing rate%. As we enter the 2nd half of the year, most of the car/van have a lower residual value. It means over the same 24 months or 48 months, the used portion is higher. And the manufacture will need to lower the rate to keep the same monthly lease payment. Otherwise, it will look very weird to consumer. So lower leasing rate, sometimes does not means lower monthly payment.

One of a good example is 2006 Honda CR-V.
1 month ago, lease rate was 2.9% over 48 month.
Now, lease rate is 1.9% over 48 month but the monthly payment is the same.

[xenyz]

Did anyone see the Ontario promo on Mazda's web site for the Mazda3 Sport GS?

$2,495 down payment
$199 per month for 24 months 0% APR
"No Security Deposit, Includes Freight & P.D.E."

The fine print says the total lease obligation is $7,271 including down payment. This would be $8288.94 after 14% tax.

What do you think? $11.50 a day for leasing a Mazda3 Sport GS.

link to pdf file:
http://www.mazda.ca/eng/Promotions/pdf/ONT_JUN06_Mazda3_Mazda3Sport.pdf

[McLaren]

Did anyone see the Ontario promo on Mazda's web site for the Mazda3 Sport GS?

$2,495 down payment
$199 per month for 24 months 0% APR
"No Security Deposit, Includes Freight & P.D.E."

The fine print says the total lease obligation is $7,271 including down payment. This would be $8288.94 after 14% tax.

What do you think? $11.50 a day for leasing a Mazda3 Sport GS.

link to pdf file:
http://www.mazda.ca/eng/Promotions/pdf/ONT_JUN06_Mazda3_Mazda3Sport.pdf

That looks like a winner of a deal.

[tharsan]

Did anyone see the Ontario promo on Mazda's web site for the Mazda3 Sport GS?

$2,495 down payment
$199 per month for 24 months 0% APR
"No Security Deposit, Includes Freight & P.D.E."

The fine print says the total lease obligation is $7,271 including down payment. This would be $8288.94 after 14% tax.

What do you think? $11.50 a day for leasing a Mazda3 Sport GS.

link to pdf file:
http://www.mazda.ca/eng/Promotions/pdf/ONT_JUN06_Mazda3_Mazda3Sport.pdf

You can probably talk the dealer down a bit on that too.

[srtor]

Did anyone see the Ontario promo on Mazda's web site for the Mazda3 Sport GS?

$2,495 down payment
$199 per month for 24 months 0% APR
"No Security Deposit, Includes Freight & P.D.E."

The fine print says the total lease obligation is $7,271 including down payment. This would be $8288.94 after 14% tax.

What do you think? $11.50 a day for leasing a Mazda3 Sport GS.

link to pdf file:
http://www.mazda.ca/eng/Promotions/pdf/ONT_JUN06_Mazda3_Mazda3Sport.pdf

Looks OK, but you can bargain with the dealer to cut down more.
Now you forgot to add the insurance, which will run about the same as monthly lease (or less/high depending, just assuming same). then it comes 23.00 dollars per day. I think if you rent (become a 'vip member' for frequent renting) you will save more. If you don't drive everyday you save more and save yourself a lot of headache. (car maintenance etc, etc, )
What do you think? ;)

[NorthYorker]

Looks OK, but you can bargain with the dealer to cut down more.
Now you forgot to add the insurance, which will run about the same as monthly lease (or less/high depending, just assuming same). then it comes 23.00 dollars per day. I think if you rent (become a 'vip member' for frequent renting) you will save more.If you need car every day, $23 per day (Monday to Friday) is cheap. In fact, it is extremely cheap for Mazda3.

[xenyz]

I'm going for the deal. Apparently it's over at the end of the month.

I got a decent insurance quote from PC Financial Insurance as well. $90 a month for full coverage and a $500 deductible. So in the end it's under $15 a day for this car (for me).

I'm not sure if they'll give me a better price. It's still a good deal as is in my eyes so it doesn't matter.

[BBQPorkBun]

I'm always leery of those 0% offers - can they hide the interest in the price of the car ?

0% always has a portion thats built into the car. They will usually have a cash price which will give you a bit of a discount. For example I went to Mitsubishi looking at 5 yrs 0%, then i asked for a cash price and he offered me 1500 off. so to me, 1500 is the interest.