Finance or Lease

[Int3grity]

Have you leased or financed your cx-7?

My vehicle was leased, the company pays for my ride.(fuoops)

[spike blue]

financed!! I would of leased !!
you lucky!!

[Int3grity]

36 months :-) Not sure if I will be purchasing the car at the end yet I want to but then again my mind changes every 5 minutes LOL. Love the car want more hp out of though they I will be totally happy freaking ford edge beat me im now im not happy LOL

[spike blue]

wow i wont be happy either!!

[koala]

24 month lease worked out the best for me. Lower payments than even 60 month financing would have been, and I can (safely, ie: not get audited) write off about 50% of the cost of driving a leased vehicle.

[KatDiesel]

Leased....

A)First year model so didn't want to commit to purchase just yet.
B)Came from Subaru WRX.....so wasn't 100% sure I would like it as daily driver. If I don't like it hand them the keys in 35 months.
C)Saves me on sales tax. (we have to pay upfront, can't finance it)
D)Under warranty the whole time i have it.



Good news is I like it. I am paying less than what I was for WRX and my insurance went down $100 on the 6 month premium. Just doesn't get the same milage due to auto and 1000lbs heavier.

[Int3grity]

See I can't stand inspection and when the warranty runs out you are out of luck. I owned a 2002 Nissan Altima this car turned out to be a total lemon. I had a minor electrical fire among other things. I was thrilled when I finally was able to get rid of the truck, a local dealership took in the vehicle as a trade in I ended up leasing a 04 Ford Explorer v8 Xlt Sport.

At around 45006 the transmission gave out, I thought at the time that I was out of luck. I contacted another dealer which was willing to help out. They placed down the odometer reading as 44987 so that I would be able to purchase the extended warranty and have the repairs covered.

I had inquired at the Mazda dealership when I picked up this vehicle about purchasing an extended warranty. I was told that any extended warranty becomes effective immediately overriding the original OEM warranty, We steered away from this option as it did not seem feasible to make this purchase decision. This is in my opinion is a waste of money the warranty should go into effect when the original warranty runs out as this is common with other manufacturers.

*Corrected msg by request*(hand)

[Killer]

Own the Acura outright...but it was finanaced. Our Mazda is leased. Its just the wifes back and forth to work car.

[1111tuncam]

Leased as well,

Seems to be the trend nowadays. what with all the electronics that can crap out after warranty runs out.

[AWmustang]

See I can't stand inspection and when warranty runs out I owned a 2002 altima biggest piece of shit car was a total lemon was jumping for joy and had a minor electrical fire was happy anothe dealer took the car from me then I had ford explorer v8 xlt sport gas guzzler 10mpg 12mpg no more then that despite the epa ratings the truck never made it past that. when i hit 45006 boom trans messed up i was only 6 miles over the dealer wouldnt help me I had to pay another dealer close to 2k they put down as od reading of 44987 so that the extended warranty would cover the repairs. I was blessed with that but this is why i lean away from vehicle purchases.

Now whats up with mazda extended warranty if you purchase extended warranty it takes effect immediatly instead of when the original runs out so you waste your money

Please please please use more periods. And re-read your post before you click submit.

[Int3grity]

Please please please use more periods. And re-read your post before you click submit.


What are you my auto spell check? If you get the point who the hell cares this is a forum not english class

[Killer]

Punctuation rules!

[spike blue]

What are you my auto spell check? If you get the point who the hell cares this is a forum not english class

lol i know they are so picky when it comes to grammar!!! This is a forum and there is not a grammar rules here so f"*** off!!

[HeavyH20]

I leased, myself. 27 months for under $200 a month including all taxes. Hard to pass up the deal. I put down $5000 to cover the plates ($300), lease fee ($595), and first payment. That left about $3900 for cap cost reduction. I will probably purchase the vehicle at the termination of the lease for the residual if it proves to be a good car. So, add that amount over 27 months, and the real CX-7 lease cost is $337 per month. Happy with that deal.

[Int3grity]

Well what if in 3yrs time Mazda has a newer style, and or better epa,horsepower and features. I am sure by that time you might be like some of us and fall in love again with a new car.

[AWmustang]

What are you my auto spell check? If you get the point who the hell cares this is a forum not english class

I will be the last one to claim to be a spell checker. I'm terrible at spelling. And I'm not much better at grammar.

And I agree who cares as long as you get the point. But I couldn't get your point. After reading the fixed post I realized I was way off.

so if you want to write a post without periods or commas and just have it string together in one long sentance at least make sure that it reads well so everyone else understands what you are trying to say

[vbbuilt01]

Have you leased or financed your cx-7?

My vehicle was leased, the company pays for my ride.(fuoops)

Financed here. I put a ton of milage on my cars, so leasing doesn't make sense. I've had my CX-7 since June 06 and already have over 20K miles on it and it's not even a year old. (shrug)

Vince.

[AWmustang]

Leased. I get bored with vehicles too fast to buy.

[lisevolution]

See this is my dilemna with cars period... I own my MSP and I need another more functional vehicle and right now it's between the CX7 and the RDX. I'm weighing both options at this point and the thing that sucks to me with leasing is you spend all that money and you have nothing to show for it unless you decide to buy at the end... but at the same time, I am such a car hopper in the sense that I want something new every year! I'm so torn on this... I hate spending money and having nothing to show for it, any idea what the total cost is of buying the car after the lease is out?

[Int3grity]

See this is my dilemna with cars period... I own my MSP and I need another more functional vehicle and right now it's between the CX7 and the RDX. I'm weighing both options at this point and the thing that sucks to me with leasing is you spend all that money and you have nothing to show for it unless you decide to buy at the end... but at the same time, I am such a car hopper in the sense that I want something new every year! I'm so torn on this... I hate spending money and having nothing to show for it, any idea what the total cost is of buying the car after the lease is out?
The buyout for me is $17k but the thing that most people forget is this figure is based at the time of purchase. The vehicle value goes down over the year not mention take wear and tear etc. At the end go back to the dealer and they will work with you 90% of the time they knock off another 2-3k. My neighbor had a nissan murano they knocked 4700 off the original buyout.

[lisevolution]

definitely something to think about on that...

[AWmustang]

See this is my dilemna with cars period... I own my MSP and I need another more functional vehicle and right now it's between the CX7 and the RDX. I'm weighing both options at this point and the thing that sucks to me with leasing is you spend all that money and you have nothing to show for it unless you decide to buy at the end... but at the same time, I am such a car hopper in the sense that I want something new every year! I'm so torn on this... I hate spending money and having nothing to show for it, any idea what the total cost is of buying the car after the lease is out?

What do you mean nothing to show for it? You will have a cx-7 to show for it. Then when you are done with the car you can just walk away from it. Get into the new car.... and so on. You are just paying for the portion of the car you use.

If you are a car hopper then leasing is the only way to go. Financing and then selling in 2 or 3 years just doesn't make any sense unless you can get a 0% or maybe 1.9% loan.

[lisevolution]

I'm mean it like this: figure $420/month 36 months= $15,120. After I spend that much $ I don't have a car to show for it since I either have to pay the rest or give it back. Believe me I understand the merrits of leasing a car, and it is definitely something I'm going to consider doing since it would give me a higher level of financial flexibility vs. financing since the payments are nearly half, I was just raised by parents who are old-school in thought and always bought cars outright. It's a hard habit to shake!

[AWmustang]

I'm mean it like this: figure $420/month 36 months= $15,120. After I spend that much $ I don't have a car to show for it since I either have to pay the rest or give it back. Believe me I understand the merrits of leasing a car, and it is definitely something I'm going to consider doing since it would give me a higher level of financial flexibility vs. financing since the payments are nearly half, I was just raised by parents who are old-school in thought and always bought cars outright. It's a hard habit to shake!

My parents also always bought cars outright too. My point was that for the 36 months previous you had something to show for it and theoretically you'll walk into another lease and continue to have something to show for your money. Don't be so fixated on the last day of the lease.

And if you like to get new cars all the time leasing makes even more sense. Let's take a look at some numbers. I leased so I have those numbers. And loan rates at the time were around 7%. And I can get the payments and payoff amounts using a calculator at bankrate.com (http://www.bankrate.com/brm/popcalc2.asp?unroundedPayment=653.4395518315314&loanAmount=33000.00&nrOfYears=6&nrOfMonths=72&interestRate=7.00&startMonth=4&startDay=16&startYear=2007&monthlyPayment=+++++%3D%3D%3D%3E&showAmort=Show%2FRecalculate+Amortization+Table&monthlyAdditional=0&yearlyAdditional=0&yearlyAdditionalMonth=4&oneAdditional=0&oneAdditionalMonth=4&oneAdditionalYear=2007&paidOffDate=May+16%2C+2012)

So I got a $33,000 car for 27 months with no money down for $441 per month. Total payments are $11907 and my cx-7 will have a residual value of ~$23,040 (this means nothing unless I want to buy it, but will be used below).

If I had financed at 7% for 72 months with no down payment, my payments would have been $563 per month.
Now lets say I decide in 27 months to trade in my cx-7. I will have paid out $15201 over that time and I'll still owe $22210. Now for arguments sake lets say the lease above is right and the cx-7 will be worth $23,040. (This is extremely unlikely. More likely the trade in offer will be a couple thousand less.) So I'll get $830 back making my net payments for the cx-7 $14371.

So I guess I'd say at the end of the lease I have $2464 to show for it. And that number climbs higher as the trade-in offer goes lower.

[HeavyH20]

Whether you finance the purchase or lease, you will likely have nothing to show for the cost. Most purchases are upside down and represent negative equity. So, not only do you not have anything to show, you still owe. Leasing, however, takes some of that risk by setting a fixed value (residual) of the vehicle after a preset usage parameter (ie. 27 months, 12K per year). In essence, you are only financing the depreciation of the vehicle versus financing the entire purchase price.

For those who hate payments, you can also pay the entire lease amount up front. I checked this option, and for some strange reason, it was more than the monthly payment. Odd.

For my personal example, I leased a CX-7 AWD GT with Bose/moonroof and Homelink for $194 per month for 27 months at 12K per year. I drive about 9K. I put some money down to reduce capital cost (actual purchase price) as well as reduce the money factor conversion rate (lease term for interest). So, total payments out of pocket are $5238.81 plus a $4400 cap cost reduction and $595 lease transfer fee for a total of $10,235. I can also choose to purchase the car for the $19,900 residual at the lease end if I feel so inclined.

[spike blue]

Financed here. I put a ton of milage on my cars, so leasing doesn't make sense. I've had my CX-7 since June 06 and already have over 20K miles on it and it's not even a year old. (shrug)

Vince.


lol mine has 28k miles since augost 6

[lisevolution]

Those numbers are definitely holding merit in my eyes. I'm going to sit with the dealer on Saturday to figure out how we're going to do it. If the lease makes sense then that's the way I'm gonna go. My biggest issue is my c-d level credit... the best 0 down finance rate I was able to get independently was 10%, I haven't had Mazda run the credit for me yet to see if they can do better so it'll be a question of which way works out the best for me. If the lease #'s and buyout cost = less than what I would pay for financing the car at 10% then I'm gonna go that route. I'm not concerned about the mileage because I'm gonna have a second car no matter what whether it be a station car, or my MSP and the CX7 as the daily/station car. We'll see what happens and I'm going with whatever works out the best for me in both the short and long-term

[AWmustang]

Can't wait to hear how it turns out for you.

[lisevolution]

yeah i'm anxious at this point, just gotta get the GF's opinion involved also...

[lisevolution]

So I finally did it! Ended up leasing one today Copper Red Mica GT AWD W/Tech aftermarket BT, Sirius, Roof Rack, down was just first month and tags. I think total will be just under $600 for the down. Monthly is $480 for 36/12K. Not bad if you ask me considering the add-ons I did.

[Vision67]

Did you know that most people who lease a car never lease another?

Leasing makes sense for only a very select group:

1. They lease for a term no longer than the factory warranty.
2. They have an assured income stream that is predictable and not at risk.
3. They may have leased for business so they can deduct the expense.
4. Their wealth is invested and is returning a rate much greater than the leased money factor.

Most people do not fit the group. Most people are just trying to attain a new car with the minimum payment. The problem is that you build no equity and you carry a very big risk of having a lease payment due without the income needed to make that payment.

If I were in your situation, I'd buy a used car and pay it off as soon as possible.

I know you won't listen to me, but this is just my 2 cents.
(rlaugh)

[koala]

99% of the population can fall into any of the above categories you listed, if they educate themselves on how cash flow is supposed to work.

[AWmustang]

What is the difference between having a lease payment due with no income and having a loan payment due with no income?

And don't tell me that you could just sell the "owned car" but are stuck with the leased car. Leases are just as easy to get out of as loans. I've gone through getting out of a lease early before.

[KatDiesel]

Did you know that most people who lease a car never lease another?


Out of the last 5 vehicles for me have purchased, leased, purchased, purchased, leased. Both of my wifes vehicles since we have been married ( 3 1/2 years) have been leases. Naturally I've never leased past the factory warranty period.

[DeadGeneration]

I like reading these threads. I read alot about buying used, buying new, leasing, long payment plans, etc. but since the majority of this thread is against my economic view I won't start any siht lol

[lisevolution]

I looked at the lease vs. buy situation as this. I'm pretty confident in my income stream being where it is today or better over the course of the next 3 yrs. I was looking at 5-6 yr loans and who knows at that point where I'll be or if I'll even want to keep the CX7. 3yrs was a safe enough investment for me and I can see where I'm at with the car and financially at that point. If I love it like I think I will, then I"ll buy it when the lease is up, if not than I cut bait and go for something different.

[DeadGeneration]

http://a332.g.akamai.net/f/332/936/12h/www.edmunds.com/media/advice/buying/total.cost/costofownership1.500.jpg

[lisevolution]

That graph is all relative to the interest rates available at the time on both sides of the fence. Also the 5yr cost shouldn't really apply to a lease since most are 3yrs or less and that doesn't factor in the negotiation of the buy out price with the dealer who is going to want you to buy the car from them so they don't have another used on sitting on the lot...

[DeadGeneration]

I am pretty sure the dealer is going to rape either you or the next owner of the vehicle. Original prices of the car minus payments (minus interest) you have made towards leasing it = what you pay to buy it. That's the formula I would apply as a dealer especially since I know the car is worth less in 3 years then what you have been paying towards it minus my profits. Dealer wins both times any way.

[AWmustang]

that graph doesn't take into consideration the people who don't want the same car for 5 (or 6) years.

If you are the type to always want the newest, hottest car, then leasing makes more sense than buying, because the money factor is normally quite a bit less than the APR.

[DeadGeneration]

Some how I didn't grow up with that sickness

[DeadGeneration]

That is like renting 22 different cars over the course of a single persons life

[Mazda3]

Something in the air in this forum today. Is it a full moon?

Lets try to express our opinions with out talking down to people.

There's many factors that decide what's right for each persons situation. There is no definte right or wrong here.

[HeavyH20]

One factor on a used car is warranty. If you pick up a two year old car, which seems like the best value, you get some factory warranty and the option to buy an extended warranty. Then, your potential repair cost exposure is limited. But, let's assume costs only with the factory warranty to keep it simple. Extended warranty costs would be equal for each scenario, but still, the used car would net two years less coverage.

In my case, it made more sense to get the CX-7 and have a lease payment for 27 months than keep my current vehicle (1998 Expedition) which I owned outright for years and put away money to purchase a car cash in two years. If you factor in $1400 per year for repairs (it was out of warranty) and the cost of gas, the CX-7 is basically "free" for the 27 months ($194 per month). So, $5000 in payments, a $4000 cap cost reduction, and a $19,000 residual for a "purchase" cost of $28,000. You also will have to add $1400 in tax for the residual purchase, the $300 for license fees for a real total of $29,700. I will buy the car at the end for the residual cost. If it is not worth that much, I will turn it in, then buy it for whatever it is worth even further reducing the vehicle cost.

If I bought the car, it would have been $26,000, plus tax ($1700) plus license ($300) for a $28,300 cost. Finance that over 60 months with same $4000 down, even at 7% over 5 years, and you are looking at about $476 per month for a total out out of pocket cost of $28000 in payments plus the down of $4000 for a total cost of $32,000. So, $2300 more than the lease.


How about a used one two years old for $21,000? Add tax of $1400 along with title fees, etc, and the down payment of $4000 to finance that over 60 months (along with the requisite 2 to 3 percent hike over new, since it is used) and we have a $ 390 payment over 5 years for a total cost of $23,400 plus the original $4000 for a total cost of $27,400. So, a savings of $2300 over the lease for two years less warranty and assuming you have NO out of warranty repairs during that time.

I did my homework, and these are the numbers I considered for my decision. Everyone's values are different, but for the marginal cost of new over used, I chose new.

[tdotcx-7]

Nicely said HeavyH20!

There really is no cut and dry answer is to what's better, buying or leasing. It all depends on the individual situation.

For my wife & I, we decided to lease our new CX-7 as it worked out better for us than financing or an outright purchase.

[AWmustang]

Some how I didn't grow up with that sickness


Well everyone prioritizes what they want to spend their money on. Some people want to have a big tv and a booming home theater system. Some need the biggest, newest house (so big they can't afford furniture for it). Some are just happy to put food on the table. Some have a hobby of pouring money into their cars, modifying them.

Deciding how to responsibly spend your money is not a sickness.

[DeadGeneration]

True. I will probably be going the big house no furniture route as soon as I can afford it. Moving out of FL and into a low tax semi-rural developing area FTW. Focus on land rather then home though since I will be taking offers from businesses looking to knock it down.

[lisevolution]

The bottom line in any scenario is that a car is the worst possible investment you can make since it all it does is lose value over time. I ran the numbers and for me it just made sense to lease at this point over buying. I'm all for buying a car, and I was about 30 minutes away from buying an 04 FX35 before the dealer got all shady and started adding cost to it. I'll most likely buy the CX7 at the end of the lease but I wanted to give it a 3yr test drive per se rather than decide I hate it after a year and take a huge hit on the sell off numbers.

[Vision67]

This is an interesting thread. Ultimately, only you can decide your priorities in life. Just make sure you make the decision with eyes wide open.

My observation is that the only one who cares what you drive is you. (thumb)

For some people, a new car is very important. For others, it's not. (confused)

As for me, I'd prefer to spend my money on travel and experiences. Also, I'm a very good mechanic so a $2K, 10 year old car suits me fine.

You can decide for yourself.

Ain't America Great? (cabpatch)

[HeavyH20]

Spend it where you wish. If you make $200,000 per year, then the CX-7 is a bargain. If you make $20,000, then the CX-7 is pure luxury. It's all where you spend it.

[Mazda3]

(drunk) (friday)