Is this a fleecing? Mazda3 2.5s 2.5k down, 221 monthly 12k miles

Ask the Hackrs
1

Hello first time buyer, trying to figure out whats good in the world of leasing…
Reading up I know that Mazda is not really too generous with their leases, not “hackr” material or what not…but what they hey lets give this a whirl!

MSRP: 23,295
Dealership Offer: 19,747
Down payment: 2,500
CAP reduction: 2,285
DAS: 2,500
Doc Fee: 600
Residual: 13,581
Money Factor : 0.000669
Term: 36 Months
Miles 12k

Quoted Lease 221 all included ( car comes with wheel locks and window tinting included).

I should qualify for Tier 1 credit with a score above 750, but the dealer does not know that part yet…

The calculator is quoting 172 per month with everything rolled in… I am not sure where the rest of the money comes in to get 221. Is it even reasonable to expect to be that close to the calculator with such a high markdown? Is this where leasing a Mazda comes to bite me in the ass lol.

Thank you to anyone who spends their time on this.

2

A down of 2500 is not 2500 DAS unless you are putting out 5k on that car

3

Share the calculator link? Somethings seem off

4

I don’t believe your listed MF is correct. Too many digits there.

What did edmunds give you for rv/mf/incentives?

5

Thanks for the reply, I threw in the extra digit from the math that I did. The dealership is quoting the money factor at .00066

6

Ah, makes sense. Here is the print out, ignore the 215 per month as that was quoted at 10k miles.
I typed out too much without enough understanding…

offer
offer4032×1118 844 KB

7

Is that buy rate?

8

I posted a photo from the dealer with everything but the original MSRP, that was provided later as 23020.

9

I am not too sure what that difference is? Online I am reading the buy rate as “the rate from the finance company” I was only provided with the .00066 figure. Both reps from different dealerships and the calculator have matched that number.

10

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. The forums at Edmunds are where we go to get that information, as they have direct access to it from the captive banks. You’ll want to post of the model specific thread for the vehicle you’re interested in and request the most current numbers for your zip code. It is often easiest to find that thread by searching Google for “Edmunds lease” followed by the model of vehicle you’re interested in.

It’s up to you to independently verify the figures going into your lease. It’s not uncommon for multiple dealers to mark up the mf the same amount if all in an area are, and the calculator would match as that’s the number being used to calculate the payments.

11

I will take a look on Edmunds. I posted an image earlier in the thread from the dealership in particular. In general though I feel as if I have all that information that you outlined. Unless I am mistaken 1.5% APR on a lease seems like a pretty good deal?

12

It doesn’t really work that way. There’s a MF set by the bank. The dealer may then add profit by marking it up. They can do that if the MF starts high or starts low. It’s up to you to understand where you’re starting at. It’s not uncommon for a dealer to show a large dealer discount, but then make the money back up with a marked up mf.

We always recommend the following method before you ever contact a dealership. If you do all of the work up front, you’ll have a stress free dealer experience and set yourself for success.

  1. Read Leasing 101 (EDITORIAL | LEASEHACKR) to understand how to calculate a lease payment and the variables. Monthly payment is an output, not an input!!
  2. Pick a specific vehicle that you want to target
  3. Gather the current MF, RV and incentives from Edmunds forums for your zip code
  4. Research the LH marketplace and other deals that have been made recently on your vehicle - what was their pre-incentive discount? How did their lease terms differ?
  5. Plug your numbers into the LH calculator, and use a pre-incentive discount similar to what you have seen
  6. Create a target deal, this is what you’re trying to negotiate to. You can try different terms, selling price discount, etc. and see how your monthly payment is affected. It is also possible that different trims of your vehicle may have different MF and RV (i.e. this is very common with GM), so make sure that you look into that. Come up with a set of inputs that give you the output that you want - your desired monthly payment.

With a target price determined, you now have a deal to pursue and compare dealer offers against. More importantly, you have a solid foundation to work from.

13

You have too many missing variables to make an accurate calculator. You have 2500 DAS not down payment so your original calculator is not correct. My best guess calculator is below but maybe take up Matt’s advice and read the leasing 101 and so forth. If you don’t qualify for any incentives, then you are not getting fleeced because it is almost at north of 11% discount.

14

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