Hi one of the brokers on the forum gave me a quote on cx-90 phev premium plus , I’m in CA and the quote they provided me is
Besides what’s on the calculator I would be paying $600 for broker fee and $1500 to ship it into CA
How do I get the total amount I would have to pay to buy out the vehicle right away? Intent is to capture the 7500 lease credit and reduce the purchase price
Trying to compare and see the math on how much exactly I would be saving compared to buying it outright instead of lease to buy
Does this make sense or work the local market to get a better discount?
If you go out of state you will pay high dealer fees such as the $1199 in your calculator. CA caps doc fee at $85, so you’ll save a lot of money there. If your plan is to buyout immediately your goal should be to get the biggest discount on MSRP (and sacrifice some MF markups). You could walk in to the local mazda dealership right now and get this deal if you take into account the shipping and broker fee.
btw any pointers on what the calculation should be to do the comparison I asked about ? “Trying to compare and see the math on how much exactly I would be saving compared to buying it outright instead of lease to buy”
Buying outright would be : $56,925 (58,325 at 2.4% discount)+ 10.25 %taxes + ~$500-700 fees = $63,500 ish
vs Leasing to Buy : $5501 (due at signing) + $40,828 (residual) + $350 (disposition fee) + (337x 23) remaining monthly payments depreciation portion only = $54,430 ( in case of buying out of state + my shipping charge + broker fee)
Is this the right math ?
Any dealer games with wordings that i need to be careful about ? never done this before so not sure what i should be on the look out for
I guess add in the cost if applicable of financing the buyout or the purchase only deal to compare TCO.
Setup a target deal, as discussed on plenty of threads here. A quick search and your bound to find the working parts of the lease deal, and what pitfalls to avoid.
I walked out of a Mazda dealer today after reviewing the lease agreement with them and asking for clarification on the buyout. Specifically, the early termination clause stating buyout is remaining standard payment minus rent charge using common yield method for determining amount. The general manager and MFS stood firm that lease buyout amount will be payment amount x remaining payments + residual and buyout fee. I asked why the contract had this specific language if it was as simple as that and all they could say was that was the way a lease works. The delta was $10k and I just couldn’t sign the paperwork and roll the dice. If someone has a buyout from MFS showing unrealized rent charges returned after an immediate buyout, I’d love to see it.
Thanks for sharing. This is the exact paragraph that I focused on and they simply said the last two lines explained how the base standard payment is calculated. You’re still on the hook for Payment x remaining payments. Clearly I’ve never leased and have little depth in this area beyond reading LH forum. Can you explain your lease buyout with MFS and if there are any additional steps needed?
I’ve researched this car to death and after walking out today am at the brink with just wanting this process to be over. But dammit I want a deal!
MFS funds your lease deal, you make an online profile, and click lease end options and get your payoff letter immediately. Pay it off with your funds and mail a check to the address given, or get a loan and MFS will fax or email the payoff letter to your lender.
Copy all and thank you for sharing your experience. My question is this, the contract states that they use “constant yield method” which is defined here by Fed Reserve
Blockquote The Constant Yield (Actuarial) method is similar to the Simple Interest method except that to pay off the loan early, you may have to pay the full remaining principal and interest (which is precomputed.) The lender should then refund the unearned interest to you. (In some cases, the lender may deduct the unearned interest from the amount you owe to reduce the amount you must pay.)
I’m getting hung up with the lender “should” rather than it saying “shall”. So nothing in law saying they return this unearned interest? State by state I’m sure but I don’t wanna be digging through state law on vehicle leasing nor considering a hiring a lawyer if things go south.
Again, I feel I’m overthinking here but this is a sizable chunk of money. Nothing else in the contract was clear that you’d be reimbursed for unearned interest. As we all know, when it comes to a contract one should never assume.
my reasoning is you are returning the loaned money earlier back to the bank - so why would you pay interest on money that you are returning sooner- interest / rent charge should be incurred only when you use the bank/MFS’s money for a set period
but this is all theoretically speaking, need to get a contract and see whats on there for myself
I had the same idea as you - I’m borrowing money and giving it back early. The dealer reminded me that leases are a contract to rent the vehicle for a specified timeframe and pay a specified amount irrespective of when you pay it off. Again, I’m not as informed as I should be to know if this is generally. @aigochamaloh has shared his personal experience purchasing the CX-90 and paying off immediately with no unearned rent charge. I’m planning to go back to the dealer to see if we can make this deal work. Thanks to all for the help!
