leasing a car(not a dodge)

[mazdarotary]

Hey guys,



As you can see by my screen name I like rotary powered Mazdas as well as my Cummins. I have wanted the new Mazda RX-8 since it was only a concept car back in 2001 when I saw it at the NY auto show. Now the thing is I don't really need another car especially a $20+K one but I really really want it bad. I have figured through my friend that works at a dealership that sells mazdas as well as other nameplates(he is a BMW parts manager) that through the incentives on leasing the RX-8,and the fact that the cars have not been selling as well as they hoped here in New england that this may be a good time to look into getting one. I went to a different dealer last week because they had one in the color I want,but it was one step up in package than I really need. They quoted me a price of $28500 on a car that has a msrp of $30750,an invoice of $28193,and an edmunds TMV of $29486. Now this is in the middle of invoice and TMV. It seems like a good price,but I bet I could have got them lower. The thing is I didn't buy it that day,and now they salesperson is calling me with all sorts of incentives to lease it. He says Mazda is offering $2500 cash back on a lease only. Now I have never leased a vehicle before,mainly because I drove so many mile before. But now I have a company car(91 dodge shadow) so keeping the miles low will be easier now. Plus I have the cummins for the long trips camping. Have any of you guys leased before?Is it a good idea?What should I look out for if I do it?Man this has turned into another long post soory guys.





Chris

 

[E7mack96]

leasing has its' place. I lease everything (personal vehicles). low payments are a +. Downside is that you will have to either refi at end of lease for another 3-5 years, or let it go back.



If you are the type that likes a new car every 3-5 years anyway, then leasing is ok.



If you will buy it out at end of lease, then don't even worry about the miles thing, as it won't matter. If this is you, then get lease with the lowest allowable miles, i. e. 10K per year.



Be careful of the factor they say you'll pay. I have a dealer program for leases, and cam input the #'s and see the true lending rate. A lease is set up to confuse the average buyer, so that the dealer can make money on the financing.



Your residual value and the factor are the important #'s (in addition to sales price)

 

[mazdarotary]

Thanks alot. Now I can get the resudual from them right,but the money factor depends on my credit rating correct?I was wondering can I set the mileage,and term on the lease or do they?How can I get my credit rating/money factor?The idea of a lease was out of the question before with my job but now with the company car I can get away with it I think. I won't be racking up the carzy mileage on it but I am sure I will want to drive it alot in the summer. Dodge is for the winter(even being 2wd).



Chris

 

[E7mack96]

they should tell you the factor it should be expressed in the format of = ( . 00285)



as far as score, dealers will try to tell you that you are in a lower score, to make more back end money.



No joke, but I have make salemen, and sales managers weep. I am a bulldog in financial matters. Hence my love for Mack trucks.



You can pick your mileage terms, usually 10K-15K per year. Go lower miles to lower payment.



Also, if it is new, you can go all the way to a 66-72 month lease.



At that point, however, you should just do a 60 month loan.

 

[Jeff Clark]

Only lease if you can make absolutely sure you won't go over the mileage, you won't wreck it, and you won't want to add performance goodies. My wife had a mustang that was leased. She got hit twice (neither one her fault) and we took a bath when the lease was up. My parents leased a Suburban once and went over the mileage, They had to turn it in early and still pay $5000 in mileage penalties. My friend has a 2001 F250 that he leased. It's been sitting in his driveway for the last 6 months with another year to go on the lease and he's already 7000 miles over his 4 year mileage total, He can't afford the penalty so he's driving a beat up Nissan PU and the Ford just sits.