Hi I’m planning to close on a deal today for a new CX-5 and wanted to ask the pros here if the following negotiated deals makes sense and if you would buy or finance in my circumstance assuming you are okay with holding the car long-term.
Lease deal:
Purchase option:
Any advise would be GREATLY appreciated as i know this is pretty last minute.
Thank you!!
In my opinion these are purchase candidates. I believe they are offering 2.9% financing if you got 36 months. There is also customer cash and better residual values on certain trims. Don’t assume the cheapest trim is the lowest payment.
You need a larger discount regardless. 5-7% shouldn’t be hard.
Thanks! This is helpful. We are considering purchasing the vehicle once the lease is over, but for now, we are trying to keep the monthly payment under $450 with minimal cash out of pocket (no more than $4k) since we’re planning a wedding but need a second reliable vehicle due to my fiance’s new job schedule/commute so purchasing didn’t seem to really fit within that criteria at the moment.
Take your best shot at filling out the calculator and we’ll help you from there.
It works but you need to update the mf and residual based on the current programs. Sign up for rate finder or go ask edmunds (hint search 2023 cx-5 money factor). What trim level is this?
That increases your TCO by a lot.
That deal is terrible if you ask me. There are some more experts here. That car is not good to lease. Thats for sure. I think you shoudl consider something like the Costco car buying service and see what yo ucan get form their program. Or a similar program. Also at this stage why try to lease it if you are talking about buying it? Once its a used car the interest rate is higher anyway to finance a car you have already driven.
That plus the acq fee make it a much higher TCO than financing on day one
Plus it’s Texas so you’re paying tax on the entire thing. I’d rather see an 84 month loan than a lease-to-buy here.
Also remember that Mazda is TFS so you need to add/buy GAP from your insurance carrier if leased.
Double taxation under lease-to-buy would be painful
Good catch on the Texas part. Unless they are offering tax credits just buy it. Start reaching out to other dealers to get a much larger discount.
We’re trying to focus on paying down student loans in the next 2-3 years so that’s why we’re going with leasing over purchasing right now. I just confirmed that per Texas Admin Code, you only get taxed for any additional value you haven’t already paid for. Also, as for other fees the quote I showed is as is and I’m getting the vehicle with only the 433 out of pocket so not following how TCO is being said to be higher.?
What makes you think that paying $50 less a month for a car you don’t own is a good deal?
Finance it and sell it after 36 months.
Acquisition fee, disposition fee, rent charge (which may be higher than the finance rate, you haven’t shared what it is yet that I see in this thread).
Also have you checked the Marketplace? I thought I saw bigger discounts on CX-5s from some of the brokers.
Can you post this here?
Hi all, thank you for everyone’s feedback and input. We did indeed end up closing on the lease, but I just wanted to be sure to circle back with the final numbers and an updated calculator since this is my first leasing and I wanted to learn from the experience (even if I didn’t ace the test). Below is an updated lease calculator with the final numbers:
As for the the Texas Admin Code I was referencing, please refer to section (b) and (c) in the following link: Texas Administrative Code
Also confirmed the money factor and residual value equal are the same as what is on Edmunds for this trim level (.00160 MF and 62% residual, no lease incentives)
Lastly, I just wanted to confirm I was able to get the vehicle with only paying 1st month’s payment and nothing more. All other fees and add-on products were rolled into the term of the lease.
Thanks!
Jesus
Sure thing. See section (b) and (c) below:
https://texreg.sos.state.tx.us/public/readtac$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p_tloc=&p_ploc=&pg=1&p_tac=&ti=34&pt=1&ch=3&rl=70
Base CX-5 S Trim: .00160 MF and 62% residual, no lease incentives
Good news is now you understand leasing and will be prepared for the next one. Remember half the battle is finding a model with the right mix of inputs that lays the groundwork for a great deal.
