2016.5 Mazda CX-5 Grand Touring - first time lease, open to tips for next time!

Year, Make, Model, and Trim: 2016.5 Mazda CX-5 Grand Touring - Soul Red + Tech

Longtime lurker and first time leaser. We just did this deal. After driving many vehicles and narrowing down, our target was a $0 down lease on CX-5 at $330. That would be a selling price around 31k. Wife was exhausted and we are in a squeeze because our Outback needs a new engine/rebuild which we decided not to fix.

I uploaded the docs, because even though it is a done deal and we are happy, perhaps I can learn a bit for next time. It seems no matter how we try to nail down the “selling price” the dealer wants to play games with the figures, which probably works in their favor. We do know the residual and MF are right, and the $1275 lease cash is a current deal. Salesman offered $31500 selling price for the car. Dealer offered $1500 for our Outback which seems inflated for a broken car. We wanted to pay $31000 for the car, and the salesman came back with $2k trade offer for Outback.

The best I can tell, they inflated the sales price from sticker $32225 MSRP to $33505 (how do they do that?), then offered us a magical $2k on the outback. Also didn’t catch the dealer doc fee which I see is high $495. The paperwork claims we have to pay $1010. Wife asked many many times and they said nothing owed when we pick it up. Best I can figure is we got an OK deal, based on our desired sales price, incentives and the calculator we would have been looking at ~$330/mo plus $1100 or so drive off cost. So the best I can figure is we got an OK deal at $344/mo and trading in the Outback in actuality covers the drive off costs. Compared to selling a blowed up car on Craigslist,and my wife’s desire to get a deal done and not shop around a lot, we are OK with it.

MSRP: $32,225
Selling Price: $33,505??
Rebates: $1275 lease cash
Trade-in: $2000??

Months: 36
Annual Mileage: 12,000

MF: .0001
Residual: 59%

Security Deposit: $0
Total Due At Signing: $0
Monthly Payment (incl. tax): $344

Zip Code: 01778
Sales Tax Rate: 6.25%

Can’t believe you’re a long time lurker if this is the deal you got. The MSRP is $322xx but the gross cap is $341xx? Not only do you have to pay $11xx driveoff, but you had at least $2000 equality on your Subaru too. This is a terrible deal

Man thats why you do not let anyone influence you. Next time only tip i can tell you is stick to your guns and never rush. Otherwise enjoy the car.

Looks like they managed to sell the car at MSRP which is not conducive to a good deal. Next time ask for 5-10% off MSRP. 5% off MSRP easily equals 40 a month less in payment.

We don’t have to pay the $1k drive off the dealer is paying it…which is what I think trading the Subaru went to. I can’t imagine the auction value of the Outback that needs $5k to fix being worth anything more than $1k. What I am seeing is 1% of MSRP is $322 which is the payment before tax, is that not a good target or do I have that wrong? We are happy with drive-off fee ($1k) for the Outback, seems about what we could get on Craigslist.

Thanks for the feedback. I am wondering what do you do when they play these games with inflated trade-in and high selling price? Do you make them re-do the paperwork with actual trade in value and pricing? My first thought is don’t trade in, but sometimes that is a convenient option.

They sold it at MSRP but in turn gave us an inflated value for the Outback, plus paying drive off costs so total $3k. That’s what I am talking about, seems like they would rather do this then sell the car for 31.5k and honestly give us $500 for the Subaru which is more like what it is worth as it sits.No way the thing is worth $3k.

Do you walk out if they give you odd paperwork like this, I mean from a montly payment perspective it seems alright. I benchmark using TrueCar price, current incentives etc. and the lease calculator here we would have paid something like $330/mo with $1k drive off. Appreciate the feedback everyone.

Just enjoy your car, it’s hard if you are in a bind and your wife is exhausted. For the cars I drive, wife doesn’t really know until she notices that “something changed” in the garage :slight_smile:

For next time, you could’ve done

  1. don’t mix your trade-in with the lease negotiations. While that may help, it makes the numbers hard to pin down. The dealers will be better at all this math than you so the more numbers, you are at a disadvantage

  2. have more time, make the test drive separate from the lease negotiation (know what car you want first and then other “acceptable” alternatives) … then negotiate over email or without your wife.

Just think that the extra money you spent was so that you don’t have to take the car to carmax or deal with people coming to your house to buy your old car

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Agree with what Chris said…(20)

You can rent a local car for as little as $9/day through many major agencies. Enterprise often goes as low as $7 with in town and mileage limits. Next time someone is in a mechanical bind they should look at a weekly or cheap daily in town rental and buy time for proper negotiation. One of my subordinate managers did the same thing in the same situation and got equally hosed on a brand new Nissan Rogue.

The cheapest we can rent a car here was close to $30/day here at the local Enterprise. For 7 or 9 a day we might just rent a new car every month and forget the lease! Wife was actually driving the Outback though, she was used to it and could manage running on 3 cylinders. I think the desire to get it done and not leave to pit one dealer against the other is a factor here. At the end of the day she was willing to pay a little more for that.

I think when the car is for me I will definitely be taking my time, and avoid trade in to muddy the figures.

What I was looking for feedback on additionally is everyone seems to be focusing on the total cap cost of the lease, which is very high. The thing is, if we use TrueCar price ($31113) with no money down you get $338/mo with $1343 drive off accounting for the dealer’s high $495 doc fee. The dealer offered to sell the car for $31500, they offered $1500 initially for the Outback. She wanted the car for 31k so they came back $2k for the Outback. The salesman presented the typical printer lease info sheet to my wife with those terms and the payment was $344, and she said OK. Then when the paperwork came back it had all this weird math which is basically $344/mo with $4285 down where Mazda pays $1275 of it and the dealer pays $3010. If they think they got a great deal picking up a blown Outback XT and they can get $3k good luck to them! Everyone is focusing on the inflated cap cost…but ignoring the fact that the dealer is soaking up $3k in cash. I wonder how often that is done, very few people post the actual paperwork here, so maybe it is common but we just don’t know.

I spent about 30 seconds looking and you have several rental car options at $10/day in Wayland MA.

OK you win the Intarwebs give yourself a gold star, you are totally smarter than me and probably great looking as well. We weren’t using a rental car. But if I need one in the future, where do you look for deals? I have seen weekend specials and whatnot for cheap prices, which isn’t so great if you need a car on a Tuesday. Perhaps there is a better place to look. Thanks!