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Discussion Starter #1
It's almost crunch time to settle on payments at the dealer. I'm on the fence if I should go with Purchase financing (5-year) or lease (4-year).

Is it worth pre-paying extra KM's on top of the lease - does anyone know the cost of buying KM's up front VS paying for them at the end? Another big question: Can someone predict the value of this car 5 years from now with 200K (125K miles) on it?? :shock:

A part of me thinks it is worth paying the extra milage on top of the lease rather than messing around with trying to sell or trade it in down the road - Any comments?
 

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how long do you plan to keep the car? Do you want to do ANY kindof mod to it? How much do you drive/month?
 

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Discussion Starter #3
I plan on keeping it 4-5 years (end of lease or once paid off)
I'm on the fence regarding Mods as of yet. This car will see at least 40K km/yr. So do I try to sell or trade in a High milage 5 year old MS3 or just pre-purchase the KM's on the lease (looking at an extra 50K km's) and be done with it after 4 years?
 

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wow... I didn't even know they offered leases that would allow you to do 25,000 miles on a car a year.

100,000 miles on a car in 4 years - wow :) Guess you do a lot of driving!

have you looked at the numbers? I am one that tend to think it is not cheaper to lease a car unless its under the appropriate circumstances. I realize it'll be hard to sell a car with that many miles and only a 5 year old car. But I also can't think that a 5 year lease is going to leave you ahead in the game at all.

-matt
 

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All that I have ever heard is that leases really are too good to be true. I would reccomend purchasing the car straight out. Just my opinion ofcourse 8)
 

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If I were to lease a car I would lease something more flashy...Maybe a BMW 335i coupe...I know thats a little extreme. However leasing cars is always a good idea if you only want to keep if for a couple of years. Your going to drive this car for 5 years and put 125,000 miles on it. In this case I would buy it.
 

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you are going to pay an expensive fee for all those extra miles

buy it and then sell it or trade it in when done with it
 

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[quote author=bani link=topic=68052.msg1173918#msg1173918 date=1170044505]
leasing only really works for corporations.

for individuals, buying is far superior. why sink all that money into a car and end up having to return it at the end of the lease? if you buy it, you can use its value as trade-in on another newer vehicle.
[/quote]

there ARE certain situations where leasing does make sense. They are few and far between...but there are situations where they do in fact make a lot more sense than buying a car. In this situation however - I cannot think that once the numbers are run, even paying yourself generously for your time selling the vehicle in 5 years, that it would be even close.
 

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lease = its still thier car...after 4 years you have purchased the car for them by makeing the payments...you are required to maintain it a certain way and you have to pay for the services they tell you to do at thier dealer.

purchase= after 4-5 years its yours...can trade it in to get a new car or sell it out right and atleast you get something for your 5 years time.
 

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Discussion Starter #11
Good points..

Just what do you think a 5 year old MS3 with 200,000km (125K miles) is worth? :shock: $3000-$4000 CAN tops??? Any guesses?

At least with a lease (4-year) covering the extra milage up front, I'm still saving $100 per month on payments and Mazda Canada takes the car back and gives me a new one. I'm also afraid of the required maintence I'll run into in that fifth year - no what I mean? It would take me until well into the fifth year of payments before I reached the point that the car is worth more then what I still owe..

I'm just approximating here but... I'd be paying $42,000 over five years to purchase this car, and a little less than $30,000 to lease over 4 years. So that's a difference of around 12K and I still wouldn't have much of an asset after 5 years anyways

Just bouncing ideas..
 

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Ever since I came accross an old lease contract that went into repo, I have been completely against them. If you were buying the car with financing and for some unforseen reason you were unable to continue paying, you would owe the remainder of your loan. The car would be repo'd, sold at auction and the remainder of the sale price (minus recon. fees, seller fees, etc.) would be put to your loan and the remainder owed to by you.
Now, with a lease, if you default, you owe the remaining lease payments PLUS the current market value of the vehicle. They still repo and auction the vehicle and apply the finds the same way but in the end, you owe a lot more on a car you no longer have. It sounds twisted but that is what it is.
 

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When you're putting that many km's on a car, leasing just isn't a viable option. You'll end up getting bent over on the km charge.

Buy it out. A 5 yr old MS3 with 200k km's on it will still be worth well over $10k I'm sure so long as you've taken good care of it.
 

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[quote author=Wild Weasel link=topic=68052.msg1174272#msg1174272 date=1170081642]
When you're putting that many km's on a car, leasing just isn't a viable option. You'll end up getting bent over on the km charge.

Buy it out. A 5 yr old MS3 with 200k km's on it will still be worth well over $10k I'm sure so long as you've taken good care of it.
[/quote]

+1

Although I don't know about well over $10k, I would put it right about at the $10k mark, maybe a little lower due to the mileage. I can't imagine how much that least would cost with all that mileage. Buy it, drive it like you want to for 4 or 5 years, then trade-in.
 

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[quote author=kokemon23 link=topic=68052.msg1174287#msg1174287 date=1170082117]
[quote author=Wild Weasel link=topic=68052.msg1174272#msg1174272 date=1170081642]
When you're putting that many km's on a car, leasing just isn't a viable option. You'll end up getting bent over on the km charge.

Buy it out. A 5 yr old MS3 with 200k km's on it will still be worth well over $10k I'm sure so long as you've taken good care of it.
[/quote]

+1

Although I don't know about well over $10k, I would put it right about at the $10k mark, maybe a little lower due to the mileage. I can't imagine how much that least would cost with all that mileage. Buy it, drive it like you want to for 4 or 5 years, then trade-in.
[/quote]


totally depends....the mazda 3 itself is a very strong car, and it holds its value pretty well.

There are no comparisons for how 5 year old mazda 3's do...but a 2004 mazda 3, with 125,000 miles blue books at ~10k for private party, good condition. Up that to 160,000 miles, and it only drops a few hundred. This is in MY area, and in miles not KM. And thats a car that was $22,000 Retail USD. tough to say what exactly the MS3 is going to be worth in 5 years, especially with that many miles...but I still maintain that there is no way your lease will be that cheap.
 

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The only time a lease is worth it is if you like trading cars in after a few years and want to keep it that way. Never lease a car if you even THINK you'll be hanging on to it after the term is up. Also, the higher the value of the car after the term, the lower the payments will be. Basically when you lease a car you are financing the anticipated depreciation of the car during the term and a "rental" payment on top of that. Generally Hondas and Toyotas have amazing leases because the cars hold their value so well. It's not at all unheard of to save over $200 a month leasing a Tundra for instance.

With that in mind, unless the payments were significantly different (which they aren't on a MS3 for some reason), I would never lease a car for more than 2-3 years. The nutjobs at my dealership tried to sell me a "lease" for my car that was for 5 years and would have costed me $450/mo. :crazy:
 

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i dont know...at the end of the day with the lease your paying off a car for them that they will just turn around and sell...if you buy it its yours and you sell it/trade it in...i could never justify leasing a car unless i was planning on changeing cars faster than every 2 years.
 

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[quote author=Coulda link=topic=68052.msg1174519#msg1174519 date=1170090004]
i dont know...at the end of the day with the lease your paying off a car for them that they will just turn around and sell...if you buy it its yours and you sell it/trade it in...i could never justify leasing a car unless i was planning on changeing cars faster than every 2 years.
[/quote]

Nah, on most cars leases don't even come close to paying them off. The residual value is usually half or more of the car's new price. If you replace your car every 2-3 years, this could actually end up saving you money, since you'd pay less every month and you wouldn't have to worry about whether or not you owe more on your car than it's worth.
 

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I think 27-36 month lease is good, if longer than that, you should buy. For a little bit more on monthly payment, you will own it in 60 months. And then if you want to get rid of it, you can still sell it to get part of your money back.
 
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