New higher interest rates in Canada

Hi all,

I just found out by accident that the interest rates for leasing the CX-5 have gone up 1% in Canada, from 3% to 4% on a 3-year lease, and 4% to 5% on a 4-year lease.

Mazda.ca announced on May 1st the previous interest rates that were valid "until May 31st". I know we're in a free market, but I just feel this is another case of Canadians getting ripped off 25% to 100% on everything they buy. The dealer says the rates went up around May 15th...

I ordered my CX-5 in April, and I'm still waiting for it. While I've been waiting, Mazda has made my car $37 more expensive every month, before I even start paying. The dealership first told me I would get it in July, so I guess Mazda Canada has enough time to raise the interest rates another 2% while I'm waiting... I know they can do whatever they want, but I can't help but feel cheated! I could probably go get a basic Audi A4 Quattro with the price difference!

Right now I'm not happy at all (if you couldn't tell) and I'm thinking about :
- buying it instead, although I would rather not buy this 1.0 version of a new vehicle
- breaking my contract and getting any other brand, lots of them are offering interest rates that reflect the market and economy (0%, 1%, 2%)

Good luck to everyone still waiting in rip-off Canada!

I know it sucks. They would not give me the 1% rate discount for being previous Mazda owner because I was buying a 2013 not a 2012...wtf is the difference really. In the end it's only like 400 bucks. I will just make a few extra payments so I can pay it off early and avoid the interest.

If I were you I would ask the dealer to hold the rate for you or you will walk. I spent a few hours with the "manager" at the dealership...I told him if he didn't want to sell me the one on the lot that I could wait, he then took a 1000 bucks off and we made the deal! Basically I'm saying make the dealer eat the cost, there is room, for making you wait.

Good luck!

Thanks for the hint. Just to give you an idea, I had to work over an hour to get my price down to MSRP when I ordered. Of course the contract states "Only the sale price is guaranteed, not the rate or residual value."

I guess the company wants us to buy them instead of leasing, but as a customer putting my trust in waiting a long time for a new product, I feel this is a bit insulting.

Zipnick said:

Good luck to everyone still waiting in rip-off Canada!

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Finally!! Good work Canada. A wake up call and it's good news.

Zipnick, an increase in interest rates has nothing to do with ripping people off. To be honest, the interest rates in the US and Canada are not fair. They barely represent true market conditions and rip the financial institutions off.

Canada is typically better than this. Your banking sector used to be strong and a very good investment. Interest rates offered at the rates they were only encouraged investors out of your country, the Canadian dollar to go down.

This is good news for one main reason: It signals a bounce back of an economy that *SHOULD NOT* have gone into recession in the first place. (The main reason for a recession in the first place was the fact that the US was weakening and Canada has such a massive reliance on the US for exports).

Interest rate increases might also be a way to ensure inflation doesn't kick.

Great one Canada! This is a welcome sign that Canada is returning to decent economic growth.

This blows. I was able to get the 1% rate discount on a 3-year lease.
When we went in to lease the car back in march, we were told they had 2 GTs on the lot and if we wanted a different color, or didn't lease it the same day, we'd have to wait until june/july to get one.
I told my wife he was trying to pressure us into signing the paperwork but now I can see he actually wasn't lying.

Anyway, I feel terrible for you. They should lock in the rates as well.

EDIT: Oh, and we got them to lower the excess kilometres charge to 0.08$ from 0.16$.

Higher interest rates are not uncommon for brand new model vehicles here and, assuming they are still constrained on availability, raising the interest rate isn't that much of a surprise. I'd guess that supply and demand and will to make a profit has more to do here than hypothetical changes in economy.

You can still get a Mazda 3, except the Skyactiv and 2.5L model, for 0% on a 48 months lease for example.

The zero interest rates really worry me from this far south. While Australia is economically prosperous (high growth, low unemployment, no recession) - we have high interest rates to complain about.

But zero interest rates are a sign of bad times.

Going between Japan and Australia is like night and day. We're booming, they're busting.
Interest rates are non existent there:

Great article to read if you complain about interest rates increasing:
http://www.telegraph.co.uk/finance/...-can-Britains-consumers-learn-from-Japan.html

Subsidized rates by automakers in Canada is a separate discussion from common Econ 101 on global interest rates. I would not expect much assistance from Mazda on this high demand model for now.

CX-SV said:

Subsidized rates by automakers in Canada is a separate discussion from common Econ 101 on global interest rates. I would not expect much assistance from Mazda on this high demand model for now.

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Mazda needs to sell this model at a profit to help pay for Skyactiv R&D (and keep afloat). Low interest rates on top of what is already well below global prices would be like double dipping.
Someone has to pay for it at the end of the day.

We're happily paying prices that are 40% more, with interest rates that a significantly more.
Car sales here are not going down anytime soon.

CX5GT said:

I know it sucks. They would not give me the 1% rate discount for being previous Mazda owner because I was buying a 2013 not a 2012...wtf is the difference really. In the end it's only like 400 bucks. I will just make a few extra payments so I can pay it off early and avoid the interest.

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Your dealer sucks then because there was never an issue at mine getting the 1% discount rate.