Single pay lease, via trade in
33 months
$16,499 out the door after incentives
10k miles
$10k incentives
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Enjoy the car!
Only took a very quick look at the contract, but something is not adding up, confirming:
- Did you owe anything on the XC90 trade in, or am I seeing 16.5k of positive equity toward the deal?
- If they did role trade equity in the deal, I’m having a hard time understanding how the contracted one-pay amount is still $26,500. Did they cut you a check back? Additionally, it’s rarely wise to role positive equity into your new deal, always better to take the cash.
- 2.5% discount is really weak. Next time, take the time to understand what discounts are feasible via signed deals, broker listings, etc.
Yes, for me it made sense to roll in the equity, as I valued not having payments, but know what’s not for everyone.
I got 21,5 for the xc90 which was more than Carvana etc. was offering (closer to 18k) and better than the best I could find through extensive searching at driveway for 21,2. I’m getting a 5k check back for the balance on the trade.
The $16,499 was from the trade in and the $10k was from the Mazda incentives.
I know I could’ve done a bit better on the discount from looking at the advertised offer on this site but also saw that one included almost $1000 in dealer fees. Between the healthy trade in , no dealer add ons or fees, etc. I ended up in a similar spot as that deal (once converted to 33 months and adding the single pay discount factor).
Thanks for looking!
Making sure I understand because you referenced both rolling in the equity AND getting a check back. So $21,500 was trade value, and $16,499 was payoff? Did you roll 5k positive equity into the deal OR did they write you a check back that you kept out of the deal?
Re: The desire not to have payments. I understand the sentiment, however, you should know that when putting big sums of cash down on a lease (or via trade in), you do not get that money back in the event you total your car. And really, you are not doing anything to lower your overall obligation and are otherwise just “showing” yourself a lower payment. That money is much better utilized parked in a HYSA, invested, etc.
With a one-pay lease, at least you get a MF reduction, but you would have to check the mazda / tfs one-pay language in your contract to understand whether you get any prorated refund in the event of a total loss.
Clarifying that my aim is to not rip your deal. Hope you enjoy the car in good health, but since its your first post, trying to educate as much as I can so you can use any learnings next time around.
Trade in 21,5. 16,499 applied to the new car. 5k back via check. No pay off, I owned it in full.
I understand and appreciate it. I checked around and played with the calculator/pre negotiated deals it seemed I probably could’ve gotten 500 or so better total over the 33 months but that wasn’t taking into account doing well on the trade in, so those two netted out pretty well to me.
And yes the single pay lease has language about the wreck in the case of a full insurance payout and refunding the balance (or “equity”). I know that having the cash is typically better but my circumstances made it preferable for me, and like you said got the improved money factor.
If you see a deal online that could’ve been substantially better inclusive of dealer fees and such let me know!
So the bottom line was $500/m effective for 33m/10k, correct? Did you check with any CA brokers as well?
Does this matter now, as it looks like you signed and took delivery?
Either way, enjoy the new ride!
Kinda… if he really got 3k above what he would otherwise, one could argue it was $410/mo effective.
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Thanks. Correct 500/month effective depending on what you treat the default value of the trade in as like the poster above notes.
No it doesn’t matter for the deal, just for my learning 
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Hmm something doesn’t add up, will take a look later, but 16k of equity + 10k of rebates, there’s no way this should’ve netted out to a 16k+ one pay, even with a weak discount, unless the 33 month program is that much worse than the 24.
I could also be misunderstanding something.
Edit: Misunderstood. One pay covered by trade equity.
Sure, but that’s really hypothetical until you shop your trade around to everyone to be certain. In my experience, most dealers are not giving you that much above what everyone else will pay unless they are making it up somehow on the backend, that unit has some significance in a monthly, quarterly or yearly program such a stairstep, etc. or there is non-customer facing money on their side that you don’t see from the manufacturer.
Another reason to keep it separate so you really know what you are paying.
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The 16.5k trade in is the only money put in to the deal. No cash from me. The one pay is 100% funded by the trade in. And there is still 5k left over.
In other words, the trade in equity IS the one pay. And there’s still 5k left over. It is not the one pay and the trade in equity.
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ahh that makes much more sense