Mazda Financing Options: How to Secure the Best Deal on Your New Car

Securing the best financing deal on your new Mazda is a crucial step in making your driving dreams come true. Once you have decided on the perfect Mazda model, the next step is securing the best financing deal for your new car. At DePaula Mazda, we understand the importance of finding the right financing option to make your dream car a reality. 

Mazda Financing Options 

After finding the perfect Mazda vehicle for your needs, it is tempting to just sign the paperwork and drive away. However, before you take that step, make sure that you have considered the best way to pay for your new car or SUV by evaluating the financing options available and choosing the one that best fits your situation and budget. 

Mazda Financial Services 

As a certified Mazda dealer, DePaula Mazda works with Mazda Financial Services, a nationwide retail finance brand, to offer both auto financing and leasing to customers who choose new or certified preowned Mazda vehicles at our dealership. The products offered by Mazda Financial Service vary based on the vehicle you want and current incentives and typically include options for drivers who are interested in both purchasing and leasing their new Mazdas. 

Leasing with Mazda Financial Services 

Leasing a car is kind of like renting an apartment. In other words, when you sign a vehicle lease, you pay for the right to use it, but you don’t own it. Vehicle leases specify a specific time period and a certain number of miles for the allowed usage. Because you will not own the vehicle, monthly lease payments are generally much lower than loan finance payments. 

When you lease a Mazda vehicle, Mazda Financial Services handles the terms and payments on that lease. Lease terms vary from 24 to 60 months, and mileage limits are either 15,000 (standard lease) or 12,000 (low-milage lease) per year. The amount due upon lease signing varies, and there are often incentives and low-cost lease signing programs available throughout the year. Mazda Financial Services also offers alternative leasing programs, including low-milage leases and a multiple security deposit program. 

Dealer Financing Through Mazda Financial Services 

In partnership with Mazda Financial Services, DePaula Mazda also offers financing for qualified buyers. Dealer financing works similarly to direct financing, where drivers acquire loans through banks or credit unions, in that the dealership and Mazda Financial Services will provide a loan directly to you. One of the advantages of dealer financing is the special deals and incentives that we can offer, including low interest rates, rebates, and loyalty offers if you previously owned a Mazda. 

Mazda Financial Services also offers some additional financing options for college graduates as well as other population-specific incentives, such as military appreciation bonuses and model-specific bonuses and incentives. 

Bank or Credit Union Financing 

Another common option for individuals buying a new vehicle is to get direct financing from a bank or credit union on their own. In this scenario, drivers would secure a loan up to a certain amount that is close to the cost of the car or SUV they intend to buy and then use that financing to pay the dealership for the vehicle.  

When you rely on direct financing, you generally go through all the steps of the loan application process before coming to the dealership. This can be a benefit because you know exactly how much you can afford to pay and can negotiate the terms of your loan in advance and know exactly what you will pay for the vehicle each month. 

Steps to Secure the Best Deal 

Regardless of the means you choose to finance your new Mazda, it’s important to take steps to get the best deal possible. This means making sure you are a highly qualified candidate for a loan or a lease as well as being aware of the effect of different loan or lease features on both the monthly payment and overall cost of your new vehicle. 

Check Your Credit Score 

Your credit score is a three-digit number between 300 and 850 that provides lenders with a snapshot of your financial health and ability to meet the terms of any financial agreement. The higher your credit score, the more favorable the terms of your loan or lease. Therefore, you need to know what your credit score is and take steps to improve it if possible in order to get the best financing terms. 

Research Rates and Terms 

Interest rates and loan (or lease) terms are another important aspect of your vehicle financing package. For loans, make sure you understand the effect that longer loan terms have on both monthly payments (lower) and total costs (higher) for the vehicle. It may also be possible to capitalize on seasonal promotions through Mazda Financial Services, particularly if you are buying last year’s model. 

Determine Your Budget 

It’s important to know what you can afford each month for a vehicle payment before you fall in love with one of the top-level trims. For many budget-conscious drivers, applying for direct loans is a great way to do this because you can work out the loan terms (and know your monthly payment) before you ever set foot in a dealership. Your loan amount from your financial institution also sets a cost ceiling for you that will help you resist the temptation to upgrade if you cannot afford it. 

Consider Down Payment 

A substantial down payment is another way to help secure better loan terms, as a higher down payment means that you are not borrowing as much money, which can help reduce either your loan term or your monthly payment. If possible, save for a downpayment of 20% or more for a new vehicle and 10% or more for a certified preowned vehicle. This helps show lenders that you are responsible financially and will also greatly reduce the overall cost of your vehicle. 

Read the Fine Print 

Make sure you understand all the terms of your loan or lease and be sure to ask questions about any extras, such as service plans or requirements. In some cases, you can reduce the cost of your vehicle by foregoing certain add-ons. On the flip side, you can also pay more if you ignore terms such as using a certified Mazda dealer for all services on a leased vehicle. Also, look at other added fees such as origination fees and prepayment penalties. 

Finance Your Next Vehicle with DePaula Mazda 

If you are ready to take the next step and buy or lease a new Mazda vehicle, we invite you to come down to DePaula Mazda in Albany, NY, to learn more about our inventory and the offers we have right now. We have a fully operational Mazda financial center within our dealership that can help you understand and negotiate the terms of your loan or lease as well as answer any questions you have. Don’t wait, stop in today.