I’d like to get your opinions on the below lease deal I was offered today. Which is honestly laughable to me. I’ve leased a few cars in my time, mostly putting down next to nothing and walking out with a decent deal. Granted I spend 6 hours in the dealership each time negotiating. I’m currently leasing a 2019 Mazda 3 select for $240/mo and a 2017 CX5 Touring for $252/mo. 12k on each. The only money put towards each lease is from old trade-ins, got $1,500/ea per vehicle on each of the listed, most recent leases.
Today I went to trade in my cx5 as the lease is up in February. Really liked a 2020 GTR listed at $31,269. Stupid me, the actual price is $34,869 because the dealer said that price was for all cash buyers.
Okay, so $34,869 is the price and the RV is $21,329. I get hit with a monthly price of $550/mo. Informed the sales manager the pricing is outrageous, more than twice what I’m paying for close to the same vehicle. Why so high? The difference between the offered price and residual is $13,500 or $375/mo. Why $550 I ask? Well, taxes and fees says the dealer. I tell him we’re way too far apart, what can we work out realistically? He says they give all their prices as best and final upfront and that’s that, we walk out.
What are your thoughts on this deal? How/why is it so ridiculous and what could I have done differently?
I’m putting $0 down and just moved from PA to MD. The dealer also mentioned it was in my best interest to instead of turn in my lease, have them buy the car outright since it was coming from PA. Does this make sense?
Any thoughts or advice is appreciated.
If you go in and ask the dealer how much they want you to pay, don’t be surprised when you get a number that makes them happy.
Your question regarding the residual and the selling price tells me that you don’t know how a lease works. That’s fine, we all start somewhere. Take a giant step back and spend some time learning before reapproaching any dealer so that you can start out from solid position.
We have a great leasing101 section here to start your journey on. I’d recommend starting there so that you have a solid foundation from which to start working your deal from.
Does the math make sense based on the info I provided? Looking for advice here, $550/mo lease on a 34k valued car doesn’t “feel” right! Considering my current leases for cars valued slightly less than that are more than half the price. After doing some research, most are in the $300-400 range with $0 down for the same car.
There are a couple questions rolled into this post.
Does the math add up based on this offer?
Is this a good deal based on the current lease programs?
Why is there such a difference between this and your previous leases?
The leasehackr calculator will help you with figuring out the first question. The faq will walk you through inputting the info.
If you want to know if this is a good deal, you need to first work out what a good deal is. That means starting by gathering the current lease program info and researching comparable deals to determine an appropriate target pre-incentive discount.
I’ll add this is my first time turning in a lease, I’ve only purchased in the past. Looking for options on things I could have done to improve the situation and get a better deal. Is the COVID leasing market a different game or did I just hit a one off dealer who didn’t need to part with his vehicles for less than maximum value. The dealer was quick to quit, standing firm that was his absolute best deal.
I’m sure this post will be taken harshly, but it really is a legitimate question that is the crux of the issue here. If you can take the no sugar coating, you really can learn to come at this from a position of strength rather than weakness.
Thanks for bringing this to my attention. The lease calculator shows a lease payment of $463/mo based off the info I put in. I obviously knew the dealers quote was high, however I didn’t think I’d be at $463 for a cx5.
If you post your calculator link, we can look over to make sure it’s correctly reflecting the offer. A few dollars discrepancy isn’t abnormal, but it shouldn’t be off that much.
I want to understand what I’m missing here, so yes! I’ll take the new guy beating, but at some point I’d appreciate it if we could move forward from the “do you actually?” Comments.
We are all encouraging you to read the resources in leasing 101 as a starting point. They’ve been created for this situation exactly. If every new member came to the forum and needed an individual explanation of why a deal is the way it is, it wouldn’t be sustainable. Our recommendation is to start there.
There are multiple variables to go into the lease equation and understanding these will provide your answer
MSRP
Sale Price
Residual are only some of those variables
What about money factor
Tax
Rebates
Dealer fee
Reg
With the added incentive it comes to $454 (pre tax).
First time using this so I may have missed a number, however this should be pretty dame close unless I’m missing something huge.
You’ve got a couple things working against you here. MD sucks from a tax standpoint on leases. You get to pay 6% sales tax on the purchase price rather than on the monthly like you’re used to. Also, they’re charging you $850 for gap insurance on this. Mazda recently switched from Chase bank to Toyota financial for their leases. Part of that change was getting Toyota’s policy of not including gap insurance on a lease, unlike basically everyone else. Those two alone are adding a good amount over your previous leases.
