Is leasing bad???

[Proudy202]

So I haven't bought a new car for 17years...cash purchase of my first car with an inheritance from my grandad...wrecked it 6 months later and lost thousands!!! I swore I'd never buy new again after that and to this day I've never owned anything less than 10years old...I daily drove a 30year old Honda (1989, SiR I imported from Japan into the UK for anyone interested) for 3 years.

So I'm a little confused on how to purchase the Bronco....I don't want to drop all my savings on it cash, I'd much rather keep that invested earning me more money than the interest will be with finance, BUT what's wrong with leasing? I've seen a few people say not to do it and want to know why? I'm not 100% sold on the colours without seeing them in person (would've loved a dark green!!!) And with all these rumours of it getting bigger engines or seeing improvements over the next couple of years I was thinking of leasing my first one then in 2-3years either buying it or upgrading to a newer one if there are different colours or engines. I'm not sure I want to take the risk buying it and in 2 years time they throw the 3.5 Eco in there and come out with some deep green colour and I want it!!!

TLDR is there a reason not to Lease even if I think I might want to swap it for a newer model in a few years?

Cheers
Ash

Sponsored

 

[BroncoJay]

I’ve leased and for me it was a mistake. I won’t do it again.
it can be positive experience for some, but I didn’t care for it. I’m walking away from my current lease to buy the Bronco but it just felt like I am losing the equity I had built up on my trade in to get my current lease

Plus I think Toyota has over saturated the market with leased Tacoma’s bringing their overall value down..
Every used car lot in town has used leased Tacomas sitting on their lots..

years ago a used Tacoma was a unicorn of sorts..

 

[rkj__]

I would not lease any vehicle I think I might take off road. I'd be worried about damaging a vehicle I don't own. Is that a real problem? I have not read the fine print on lease deals, so I don't really know, but it's how I feel.

 

[Raptor911]

Buying or leasing at the end of the day is personal preference and will depend on your financial situation. I prefer to buy as I tend to mod my vehicles SO if I were to lease and replaced my bumpers then I would have to return it to stock. I would imagine lots of Bronco owners will do a lot of mods.

I can't give you a really good reason either way, but I will address your comment about what happens IF the bronco gets a dark green color or a bigger engine in the future. Waiting for something that may or may not happen in the future and not enjoying the now is just silly. What happens if you wait and it never happens?

Do you know how many prospective Raptor owners that have been waiting for a V8 to come back?

 

[BroncoJay]

If u want a new vehicle every 3 years it might be a program for u, just remember there can be pretty strict yearly mileage restrictions and if u go
Over it could get spendy..

 

[rkj__]

So I haven't bought a new car for 17years...cash purchase of my first car with an inheritance from my grandad...wrecked it 6 months later and lost thousands!!!

Why did you lose thousands? My insurance will payout the purchase price of my vehicle if I wreck it within the first 3 years. Talk to your provider.

 

[Granger Ford]

So I haven't bought a new car for 17years...cash purchase of my first car with an inheritance from my grandad...wrecked it 6 months later and lost thousands!!! I swore I'd never buy new again after that and to this day I've never owned anything less than 10years old...I daily drove a 30year old Honda (1989, SiR I imported from Japan into the UK for anyone interested) for 3 years.

So I'm a little confused on how to purchase the Bronco....I don't want to drop all my savings on it cash, I'd much rather keep that invested earning me more money than the interest will be with finance, BUT what's wrong with leasing? I've seen a few people say not to do it and want to know why? I'm not 100% sold on the colours without seeing them in person (would've loved a dark green!!!) And with all these rumours of it getting bigger engines or seeing improvements over the next couple of years I was thinking of leasing my first one then in 2-3years either buying it or upgrading to a newer one if there are different colours or engines. I'm not sure I want to take the risk buying it and in 2 years time they throw the 3.5 Eco in there and come out with some deep green colour and I want it!!!

TLDR is there a reason not to Lease even if I think I might want to swap it for a newer model in a few years?

Cheers
Ash

It really depends on how you intend to use the Bronco, what your long term goals are for it, etc.

If you want to:

• Use little cash up front
• Not going to modify it
• Driving 15k or less per year

The lease makes sense...

Plus:

• If it retains value and you have done as above, you can buy it or sell it to recoup the "value' left in the vehicle..
• If the market tanks on the Bronco (not likely) then you do not have the downside of the value and can just walk away..

That being said, if you drive 20k + per year, doing off road type things that will damage, body, glass, interior...At that point do NOT lease the vehicle ir will cost too much in the end..

 

[BuckinT29]

Nope- a lease is not bad at all but It also depends on your situation.

Will it be your DD, how many miles do you plan on driving, are you trading it in after the lease.

IMO - The bronco is a car to buy and enjoy, resell value and it’s capabilities will go far.

If this were a luxury car then I would lease.

 

[bobbleheadguru]

I have leased and bought many cars.

Leasing gives you a lower payment and you will likely have the car under full warranty for the most of time you have it. Also, you have that payment locked in, and you can walk away at the end, without worrying about what to do with. Those are huge advantages.

Bronco should have high residual values and it looks like Ford will allow you to bake in accessories into the lease, which means you only pay for a fraction of their value. Also with a string of leases back to back, you will get the latest in safety and tech which is not a trivial thing the way both of these are evolving.

Buying lets you build equity in the car over time... but putting equity into something that is depreciating, is not as good as it sounds. The spread of trade in values v selling it on your own for fair/good/excellent/mint vehicles is so large, that you really don't know how much your vehicle will be worth at the end.

My rule of thumb is that a $550 buy payment should be able to get you a $350 lease payment (assuming low downpayment). If you get a spread that is $200+ between them, it is worth it to lease, all other things being equal.

You just have to be very careful about not going over in miles and you should expect that you will have a ~$500 bill at the end for wear and tear/new tires. Also, don't expect to be able to easily dispose of the car during the lease.

I lease with 13.5K or 15 Miles/year. If the Bronco is a "toy" extra car, the case for a lease may be even stronger.

 

[Frank N]

It's a personal financial choice.

I will say that if you lease, they will not release the V8 and dark green. If you buy, they will.

 

[irv0735]

Leasing becomes even more interesting/appealing with the announcement that you can also lease the accessories... So you can effectively build a true trail ready rig and enjoy it for 3 years and then decide if you want to keep it (buy it) or do something different.
Leasing is not something to exclude from your options as many would have you believe. We are all in unique situations and leasing is the better choice for some people.

 

[DrewBronc21]

If you like having new car every few years and always be under warranty, leasing is good. Budgeted just like any other expense. 30 years of leasing will probably be a bit more expensive than owning a few cars for 10 years each, taking repairs and maintenance and final equity into consideration

I’m thinking of a short lease on a 2.3 Manual and if it doesn’t suit me, buy a lightly used 2.7 after someone else has already taken the depreciation hit.

 

[jimmycarter]

Leasing could give you higher insurance premiums too, as ford still technically owns your car and wants you to have sufficient coverage in an accident.

 

[rkj__]

So you can effectively build a true trail ready rig and enjoy it for 3 years and then decide if you want to keep it (buy it) or do something different.

What are the financial implications of returning your lease with the bash plates heavily bashed, wheels rock rashed, and the sides of the vehicle heavily pinstriped?

 

[Proudy202]

Thanks guys, my main use is as my daily driver, I've put 16k on my current car in 20months so I don't do much driving so the mileage isn't a major issue.

As for off roading the most I see it doing is getting to camp sites, bike parks, the beach and something like fire roads(right name? We just call them dirt roads in the UK)....I won't be climbing over rocks or anything like that...

Im planning Sasquatch and a few ford accessories and don't really plan on modifying it, even if I bought I wouldn't modify for risk of voiding the warranty!

Sponsored