Slightly OT - Mazda Financing

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crypie

Member
I am curious if anyone can share their experience with the Mazda financing for their CX-5. I see on their site they are offering 0.9% for up to 60 months. However, nowhere can I find any specific details on the offer.

Some specific questions I'm wondering:
- Is there a penalty for paying off early?
- Are there additional fees as part of this (loan origination, etc)?
- Have people had good experience with whatever bank backs this loan or is it better going through your own credit union/bank/etc?

I apologize for the slightly off-topic nature of this post but hope some of the members here may be able to share their experiences.

Thanks!
 
No penalty, no loan orig fees. It was some weird bank (I forget which now and am away from home so can't see the details) but you can set up automatic payments (which I did) and forget it.

Only had the car since May, so small datum point, but no issues so far.
 
When I bought my CX-5 in Oct. of last year, I took advantage of Mazda's .9% for 36 month offer through Chase Bank, which is the same bank I use for my personal finances. It was quite painless and straightforward. When it showed up on my online Chase account page a week later, I set up an auto-pay and was off to the races.
 
The only time I finance a vehicle is when my investment is paying me more than the loan percentage. Ed
 
erhayes said:
The only time I finance a vehicle is when my investment is paying me more than the loan percentage. Ed
Click to expand...
What investment are you referring to? .9% is the next best thing to free money. If you can't make more than that with your 401b, (even in this economy!) you're doing something wrong.
 
My total interst paid is like $400 over the life of the loan and not having credit can cost you more than that. If I wanted to I could pay cash for my car too.
 
I am getting 5.125% on my tax free munis so the 0.9% looks very good to me. That is the way I bought my CX7 which was offered at 0.9% in 2007.
 
Since I put a lot of value into being able to walk in and have a face to face talk if a problem arises, I financed w my local CU. 1.99 for 60 which was better than the 2.99 that Mazda offered. I used the Mazda finance which ended up being a bank in upstate NY on the last car. No problem but it took forever to get the title once the note was paid.
 
paris1 said:
When I bought my CX-5 in Oct. of last year, I took advantage of Mazda's .9% for 36 month offer through Chase Bank, which is the same bank I use for my personal finances. It was quite painless and straightforward. When it showed up on my online Chase account page a week later, I set up an auto-pay and was off to the races.
Click to expand...
Same here. It was easy. I never sent in a check. Auto pays every month.
Only paying $200 for the life of the 3yr loan for ~$13,700 loan. Pretty much free $$ even if I took from my savings & paid cash, I can't take it out of my car to use in an emergency. This was the APR is a wash vs the interest I'd earn in my ING account, but I have assess to cash.
 
I financed mine in March, it was 0.9 through chase bank as well. Not sure whom RedBaron got in MD, but it might vary state to state based on laws, etc. With Chase in MA there was also no early payment fees nor origination fees. Auto-pay easy to setup on chase web site.
 
Is 0% interest common in the US? I bought a 2013 after the 2014 became available, when they were offering 0% financing for anything from 12-72 months.
 
They use 0% interest as a selling tool when they want to unload cars. But break it down and see what you are really getting. Typically this requires you to finance for 36 months in order to get the 0%.

Lets say you finance 30k, for 36 mos, at 0.9%. You pay a total of $419 dollars in total interest.

car 30,000
tax 1875 (assuming sales tax 6.25% here in MA)
int 419
-----------------
32294

Now lets say they just offered a rebate instead, of $500 which is typical, then you still finance at 0.9%

car 29500
tax 1843
int 411
----------------
31754

Total ancillary difference is $8 in interest, plus $32 in sales tax due to the rebate lowering the vehicle price. This spare $40 spread across 36 months is negligible, but the rebate isn't. With the reduced vehicle price you will save the real $500. In summary, if the dealer is offering finance deals or rebates, take the rebate, assuming you can still get the 0.9% or if you are paying cash. Sometimes they won't let you ger 0.9 if you take the rebate and then the interest goes way up. In the latter case, the 0% is the better buy.
 
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Well yeah, any rebate needs to be worth more than the total interested added to the cost of borrowing. If you're buying a 30k car and they offer you a $500 rebate to take a higher interest rate, they're almost definitely offering you a chance to give them more of your money.

I wouldn't buy a car from somebody who offered me the 'choice' between paying $30000 @ 0.9 for 3 years or $30000 @ 0.9 for 3 years with a $500 refund. If you get so much as a hint that a salesman is trying to obfuscate the best financial choice (ie, do you wanna pay $29500 or $30000?) you should find a different dealer.
 
costermonger said:
. If you get so much as a hint that a salesman is trying to obfuscate the best financial choice (ie, do you wanna pay $29500 or $30000?) you should find a different dealer.
Click to expand...

Obfuscate is a strong word. But I have NEVER met a salesperson at a car dealership who is going to voluntarily give you FULL disclosure about what rebates there are, especially the ones directed at the dealer themselves. Dealers may get kickback incentives for people financing, etc. They will (sometimes) tell you if you ask, but they aren't going to volunteer the information.
 
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