Current Mazda Lease is up in January. Looking to get into the new 2024’s. Called dealer to get a quote on 2 new CX-5’s. My wife and I lease together so it’s a 2 car deal for them with low mileage trades. Numbers are for my car - I have more equity than the wife. Have an appointment with the dealer at 1000AM tomorrow morning PST. Don’t have to buy tomorrow looking for some advice. I would like to get it done sooner than later however.
Southern California - San Diego Market
2024 Mazda CX-5 Turbo Premium AWD
MSRP 40,185 No discount listed. I am a costco member and they are a costco dealer so I could go that route but I haven’t submitted through costco yet.
36/10k
GFV - 23,709
Equity - Dealer quoting 3000 sight unseen. Going to push for 4500-5000 based on KBB suggestions and searching local market
DAS - 1400
MF unknown, will find out tomorrow
Payment $451 all in
Ideal Deal doesn’t revolve around payment really. They are commuter cars to us. In a dream world I would be asking about a 2024 M3 lease but the wife doesn’t understand the car guy mindset…even if we can afford it.
Price: 500-1000 over invoice. Not sure what fair market is currently. Haven’t shopped in 3 years.
Trade Equity: 4-5000 (KBB trade value) Willing to move a little if incentivized elsewhere
MF: Fair market. Both of us are +800 scores
DAS: As little as possible but we have the funds as needed
I’m used to paying $500 over invoice. I was merely trying to gauge what is common in the current market. $500 over used to be an easy ask especially on a 2 car deal. Dealer is still getting holdback and I remain flexible on the trade. There isn’t a lot of profit in these from invoice to MSRP. I know the market is softening but I don’t know if others have had success on these small margin vehicles getting close to invoice.
Around 2k off is pretty much what I’m looking for. I don’t have the invoice but that’s about what the margin is from window sticker to invoice from what I was able to find online.
This, as well as the rest of the lease inputs, are what you need to work out before talking to a dealer. What does the market currently support? What is buy rate mf? What are the applicable incentives?
Take the time to establish a well researched target deal and you will have a solid foundation to work from. Right now youre judt flailing in the dark.
Do the research, get all the inputs for the lh calc, and establish whete youre actually trying to get to.
I came here hoping to fill in some of those gaps. I guess I misunderstood what to expect before I originally posted. “Flailing in the dark” seems a bit harsh. I was hoping to get some information from the experienced professionals. The fact that I even sought out advise here I would hope shows I’m trying to make an educated decision. My apologies.
Im trying to direct you how to get the answers you need.
Goes back to my first question… What is your target deal based on pre-incentive discount from shared deals and broker offerings and the lease programs as they apply to you?
The first step there is to establish a target pre-incentive discount. What have you found when looking at broker offerings and shared deals here?
Next step is establishing the lease programs as they apply to you. What is buy rate mf? What is the residual value for your lease term? What incentives do you qualify for?
Now, plug those all into the calculator. What is the output based on those inputs?
To effectively negotiate, you have to know where youre trying to get to. Without that established, you are flailing in the dark. That isnt an insult, it just is what it is. So work out what a strong target deal is and youll have the ammo to get where you want to be.
I looked through the posts and it seems like the best deal I was able to see here was 2k off MSRP, on a lower model. They actually posted in here so that’s a good place to start I guess.
I guess I can post to edmunds to see if someone can get the residual and MF. I’m stuck otherwise without asking the dealer.
I guess I’ll change my statement/questions.
I don’t know what the going discounts are. Was hoping a broker would chime in. I’m looking for 5% but I don’t know if that’s strong enough.
I’m going to ask the dealer for the buy rate MF and see if that stacks up to whatever edmunds posted. I’m not afraid to walk out, I’m just trying to get this done before the holiday season.
Having current, accurate information for residual value, money factor, and incentives is important in understanding your deal. As such, going directly to a source that has access to that data from the captive banks is your best option.
Rate Findr has that information, as they have direct access to it from the captive banks. It’s a tool on the Leasehackr Calculator, available to Super Supporters.
I think @mllcb42 is suggeting that you go in w/ making an offer, rather than asking the dealership to provide you w/ info.
This dealership has stuffed some $1700 in totally unnecessary options into your deal. So they’re eating into your equity by doing that on top of not offering you a discount. Have you gotten other actual quotes for your trade in? Who knows much they are undervaluing that?
I don’t think it’s a good idea to trust a dealership that is padding their bottom line in this way to provide you w/ accurate info.
That’s why you need to ask on Edmunds for the MF and RV (or become a Super Supporter here) to have a strong sense of what the numbers are, so you don’t need to “walk out” (since you won’t be walking in to begin w/, unless they agree to something approaching your numbers).
As for as discounts, my impression is that CX-5s go for much less on the NE than they do in SoCal. So you’ll need to take that into account. And I personally think discount off of MSRP is easier to discuss than absolute amount over invoice.
Also, are there any 2023s left? I assume a dealer would be more willing to deal on one of those.
While i think making an offer is a significantly better strategy, even if you dont, you need a baseline to compare to.
If you ask the dealer what the mf is, how do you know it is buy rate? Ive seen lots of dealers claim the number theyre telling you is buy rate, even if it isnt. You have to know what it should be. Same with incentives, etc.
Ultimately, it doesnt matter if theyre giving you buy rate or not. If you have a target deal that sets what the price should be, they either get there or they don’t. It doesnt matter how they get to your number. It either is or isn’t. Again, you can only know the answer to that question if you have a target deal established.
So that’s almost $22K to drive a CX5 for a low number of miles.
Same for the second car?
That’s a terrible TCO either way.
3 years ago in the golden era of leasing that may have made sense. Today it doesn’t.
If one of my friends told they and their spouse was going to spend $88k to drive two basic cars over two lease cycles (and keep repeating that mistake), I’d ask if they’d had a lobotomy
