Question for folks. If a dealer offers Dealer Discounts (not the EV-$7500 discount) of $750, or $1500, etc., is that the same as basically negotiating on the MSRP? i.e. if a dealer has the car for $58,825 but then is offering a $2,000 dealer discount, is that the same as negotiating the price of the car down to $2k under MSRP?
CX-90 PHEV: Looking for lease numbers / deals
- Thread starter sangs
- Start date
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- Canada
Only if the $58.8k price is the actual MSRP. Some dealers will advertise sale pricing higher or lower depending on how the car is optioned, freight and PDI costs, and whether certain dealer "add-ons" are included. Just check to make sure the other Mazda incentives (loyalty, military, student) are not included in that dealer discount, and its the same as if you had negotiated the price down. The discount is more like negotiating the price of the car down $2k from that dealer's sale price, not the MSRP that is listed on mazda.ca or mazdausa.com.
I'm getting quoted 0.00314. Is that good/bad?
Ninja_Matt
Authorized Vendor
Define stupid high, its pretty in line with what you are seeing in other brands right now. Gone are the days of near 0 interest on leases. Some Stellantis leases have as high as .0058 Money factors, most manufacturers are sitting around that .002-.003 area, although we are starting to see them drop.
It is also important to remember, money factors are non negotiable (buy rate at least) and are set by the bank, no dealership has control over the buy rate money factor on a lease program.
The exception, is that dealers can mark up money factors by varying amounts (depends on lender) and they can of course control if and how much they mark up rates, but the starting point rate is set by the lender.
a CX90 Premium PHEV is at .00289 while the CX90 Turbo S Premium is at .00081 and a CX5 Premium Plus is .00084. that's what I mean by stupid high. On a $60k vehicle it basically cancels out the $7500 tax credit
Ninja_Matt
Authorized Vendor
Yeah I don't disagree it's definitely higher than their other models, PHEV Prem+ is .00314 which is definitely high, my point was more around the fact that compared to all manufacturer lease programs in the market right now, its not uncommon to find money factors in this range - 4 years ago when I was still at Mazda, a .00289 money factor would blow my mind and I would consider it a standard rate lease as most leases had rates of .00001-.00010 for a very long time. Today, it just isn't surprising.
It's also a good time to remember that not all manufacturers/banks even pass on these tax rebates (looking at your Ford) to consumers as they are not required to, since these large rebates combined with 24 month high residual terms is the golden ratio in new car leases today, if they had a fully subvented lease rate they would be leasing for literally next to nothing. But the market dictates they are worth at least $300+ per month, so they could raise MSRP higher to counteract but that would turn off retail buyers and be bad optics, they could drop residuals very low but then customers could just sell their leases elsewhere or buy them out so the bank won't get the benefit of owning them cheap at the end to catch profit so my guess is they offset this by not subventing money factor so they can capture profits up front.
I want to also specify that this is simply Mazda not subventing lease money factors, they are not "raising" them. Mazda underwrites their leases thru Toyota Financial, banks all have standard rates that are in line with market APRs you see (~7%-8%+) and then manufacturers "subvent" them by buying them down from the bank to offer lower rates. Its the same way those 0% offers work, the bank isn't actually lending at 0%, but the manufacturer buys down the rate to offer it as a special offer. This is also why you see offers such as 0% APR - OR - $XXX Customer Cash. Can't use both since the manufacturer is using that money to buy the rate down to 0%.
