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I'm pretty sure that I'm going to buy the car at the end of the lease because I'm going to be putting alot of kms on it. I'm going with leasing because the monthly payments are lower and by the time the lease period is over I will be in a position to buy the car outright. I'm not sure why the lease periods are so long, maybe to keep the payments low?
I think I would like to go with the Mazda but I'm not sure I can justify the extra money per month to get all the extra options, $420 vs $480.
1996 MM
Zetec, ATX
192000 kms...not dead, but I'm not fixing it
White people love Wayne Brady because he makes Bryant Gumbel look like Malcolm X.
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Originally posted by Bullet:
I'm pretty sure that I'm going to buy the car at the end of the lease because I'm going to be putting alot of kms on it. I'm going with leasing because the monthly payments are lower and by the time the lease period is over I will be in a position to buy the car outright. I'm not sure why the lease periods are so long, maybe to keep the payments low?
I think I would like to go with the Mazda but I'm not sure I can justify the extra money per month to get all the extra options, $420 vs $480.
Bad idea. You will be paying a residual value for a car with high mileage on it. You have to ask yourself if you could turn the car around for what you paid to buy it at the end of the lease. If not, you will be getting hosed.
For example, Honda had a nice lease rate on the Civic SiR in 2003. It was roughly $298/month for four years, $3K down. If you bought at the end of the lease, you had spent nearly $35K in total on a car that listed for $26K. Even if one would sell it, they wouldn't get all of that extra money back.
Trust me, go on the Mazda website, and use their calculators. Total up how much the car will cost you in total, buying vs leasing. When calculating the lease, include the down payment, the monthly payment, and the residual. You will see that it is NOT in your best interest to buy the car at the end of the lease.
I know a nurse who drives a ton for work. She buys a little four-banger, negotiates extra kms at the beginning of the lease (she drives over 50K kms a year) and then hands it back to the dealer and gets a new one.
98 Silver Frost SVT
97 BMW 540I Sport, six speed
"Blue is for sky, black is for soil, and white is for simplicity, purity and hope for the future"
"A coveted car should never stunt your life, but should make it more rich and interesting."
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Originally posted by baco99:
i'd choose the Mazda, but the Hyundai is a compelling option. i really like the new styling and for the price, you get a LOT of car.
I'm with baco99 on this one. I'd actually call it a toss up between the two. The Hyundai Sonata with the V6 is a pretty sweet deal.
Mark
2000 Black CSVT
3.0L Hybrid - 206fwhp & 195fwtq
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Ok this is the rundown with no downpayment according to the Mazda website...
Finance
48 month finance at 2.90% is $687.55 per month which equals $33002.40 in total (including extended warranty) after 4 years for the base model with the Sport package (total on site is $31124).
Lease
48 month lease at 3.40% is $430.34 per month with $11,736.00 left in order to buy at the end of the lease. That comes out to $32392.32 in total for the car.
So it seems to me that there is not alot of difference when it comes to the price. Just a matter of whether you want to pay now or pay later. And since I would like to keep the monthly payments low, paying later sounds better to me since I will be in a better position later.
1996 MM
Zetec, ATX
192000 kms...not dead, but I'm not fixing it
White people love Wayne Brady because he makes Bryant Gumbel look like Malcolm X.
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I'd definitely go with the Mazda, hands down.
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Make sure you get the right kind of lease.
Been a while since I've read up on them, but there are 2 ways for buying the car at the end.
The first one is where they estimate what the car will be worth when the lease is up... if the car is worth less than they estimated, you lose; if it's worth more, you win
The other is, I think, like what you posted off the mazda site... they go by what you owe and give you the option to buy.
And there is closed end (where you have to buy the car at the end), and open end (where you decide if you want it or not)... I would go with open-end in case you totally hate the car.
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Originally posted by Bullet:
Lease
48 month lease at 3.40% is $430.34 per month with $11,736.00 left in order to buy at the end of the lease. That comes out to $32392.32 in total for the car.
There is a slight flaw with that. The $11.7k buyout does not include taxes which are about 15% IIRC.
I would not lease long term, especially w/ high KM rates that you plan to do. What if the particular car you are leasing is a lemon. Well, not quite a lemon enough to use the lemon law if you have it in CA, but it is plagued with problems, or you just don't like it after 3-4 years. You either pay the penalty for the extra KM's and turn it in, or buy it, and sell it for significantly lower than the residual because of the extra KM's.
Those who drive a lot should not lease (except for business writeoffs in the US at least). A friend of mine was caught up in that and ended up carrying over the penalties into the 3rd car he leased. His montly payment is double what the special lease rate should be. He fianlly financed a car and is almost paid off, but he still had $7k USD rolled into that car cost on a basic $16k Accord.
If you cannot afford the 48mo finance, how about the 72 month one? $55 more/mo, but you'll get equity at some point (4-5 years probably) and if you do keep it you'll pay it off sooner with a lower overall sum of payments. If you cannot afford the 72 mo payment, then look for a cheaper car for now.
How many KM's per year do you think you'll be using? It is almost always cheaper to pay for them up front on a lease.
I am leasing two vehciles right now and buying/financing a third. One lease I paid for 6k extra miles/yr up front at 12c/mi after taxes. If I had not paid up front, they would charge 20c/mi when I turn it in. The other lease has standard mileage allowance, 12k/yr. Since I paid for the whole lease up front (special promotion $2279 USD out of pocket for 2 yr/24k miles), I'll just turn it in when I reach the mileage limit, be it at 18 months or 20 months projected.
Last edited by APT; 01/17/06 05:23 PM.
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If you're looking at the 6i with the 2.3L, I would definitely take a long look at a Mazda 3s with the same engine and transmission. Unless rear seat/trunk space are very important to you, you'd be getting a lot of the same hardware (engine, transmission, interior amenities, etc.) and essentially the same FRONT seat space as the Six, but less overall size, weight, and cost.
"Think of it, if you like, as a librarian with a G-string under the tweed." Clarkson on the Mondeo.
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Originally posted by Jeb Hoge:
If you're looking at the 6i with the 2.3L, I would definitely take a long look at a Mazda 3s with the same engine and transmission. Unless rear seat/trunk space are very important to you, you'd be getting a lot of the same hardware (engine, transmission, interior amenities, etc.) and essentially the same FRONT seat space as the Six, but less overall size, weight, and cost.
Good call.
99 Black SVT -3L Hybrid w/.5mm overbore, Spec clutch/flywheel, MSDS, BAT intake, K&N open, 17'Konig Tantrums, DMD, Opt. TB & Y, Powerslots, Bassani w/ magnaflow res.
96 SE MTX- "The War Wagon"
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What APT said is right on. NEVER willingly lease a car knowing that you will be going way past the mileage limits. It's ALWAYS cheaper to boost up the mileage as part of the lease agreement, in many cases you'll only pay 10 cents per mile (sometimes a bit more, sometimes a bit less - depends on the manufacturer, the vehicle being leased, etc.) ahead of time instead of 15-20 cents per mile penalty rates after the fact. As much as you may think you can predict the future, you never can, and as much as you might think you'll be able to buy the car outright in four years, you never really know what situation you'll find yourself in four years from now. At the very least, build the miles into the lease agreement, that way the residual value of the car at lease termination is such that you have the option to hand the car in with no penalties or buy it for somewhere around what it's actually worth. You don't want to shanghai yourself with only bad options when your lease period is up, I've seen too many people do this. A great example is a buddy of mine just handed in his G35 sedan that he leased. He leased a new Infinity FX35, which had a lease deal for around 400/month, but because he was way over the mileage on his G35 lease and he terminated the lease six months early, he's paying 600/month on the Infinity. So, effectively, he's paying an extra 200/month for a car (the G35) he no longer gets to drive, for the next 48 months. When you think about, that really sucks big time.   I lease my Alty SE-R because I know I want to drive a new vehicle every three years and because I write it off against a side business to boot. I only drive about 10k miles per year because I use public transportation to get back and forth to my job for the most part. I leased with 12k/year giving myself roughly a 20% buffer, which is another thing I recommend, give yourself buffer room in the mileage. If you come in under your mileage dealerships love that, and will oftentimes give you another sweet lease deal on your next car because they have wiggle room because they're going to make a good chunk of $$$ on your lease trade-in on the used lot. I've even seen dealers waive a large part of lease downpayments in these situations when someone is handing in a really well cared for leased car that is under the mileage by 20%.
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