Can you prepay or “pay off” your lease?

[Jfman]

If you lease a Bronco, can you later pay off your lease to avoid paying interest on it?

I may lease my ordered Bronco for tax purposes and I was hoping I could pay off the lease early with the money I have saved up.

Thank you all.

Sponsored

 

[Lifeliberty]

with Honda you can pay ahead, but it won't save you anything, you owe whatever is remaining on the lease. At the end of the lease you can buy the vehical for whatever the value it is that remains.

I think you can at anytime request a payoff amt.

That's what I did for my last accord. Leased 3 years then I got a loan and bought it. It was cheaper to just buy that accord than if I was thing to buy a used 3 year old one. I have no regrets about it. The lease was affordable for 3 years, then when it came time to buy the cost was lowered because I already paid for a lot of it, making the loan payments affordable.

I don't know how ford structures their leases though, my only experience was with Honda, which was great to work with

 

[frdfan]

You can prepay a lease with Ford Credit, but there are no interest (money factor) savings by prepaying.

 

[ramblinwreck]

I’m pretty sure you never want to prepay a lease. I think if you wreck it you won’t get your money back.

 

[GI_Jo_Nathan]

I didn't think you were able to lease the Bronco yet?

 

[LAB0035]

If you lease a Bronco, can you later pay off your lease to avoid paying interest on it?

I may lease my ordered Bronco for tax purposes and I was hoping I could pay off the lease early with the money I have saved up.

Thank you all.

LOL Ford Motor Co Doesn't offer the Bronco for lease. Dream on
I have seen a couple of 3rd party lease deals for 12 months @ $2500.00 a month limited to 10000 miles

 

[PSUTE]

I didn't think you were able to lease the Bronco yet?

LOL Ford Motor Co Doesn't offer the Bronco for lease. Dream on
I have seen a couple of 3rd party lease deals for 12 months @ $2500.00 a month limited to 10000 miles

My lease is FoMoCo Credit. 39 months, 15000 miles/year. First model year jitters on my part. Will buy at the end for 62% of original MSRP if I decide to.

As far as the OP is concerned, you should be able to turn your lease into a purchase at any time during the lease...

 

[Shawn of the Dead]

No profit on paying off a lease early. Say you pay the total of the lease early. You will still owe the balance of the vehicle or have to give it back. I don't know if you save on the per lease payment tax or not.

 

[Sawtooth Bronco]

Leases of Broncos are rare but they will do it if you have excellent credit, and usually if you are a repeat customer. I just leased a new 2023 Badlands 2d last week, from Ford Mo Co Credit…there is no advantage to pre-paying a lease once the terms are set. However, if you pre-pay the term at signing, that amount will be less; I did this and saved about $2000. Ask for the Advance Payment Plan (APP) option. Otherwise, you’ll be given a standard lease term. As an aside, my insurance policy covers the vehicle in the event of loss and will reimburse me to get a replacement one so I will not lose the money; not all policies will have this so I suggest you review that if you choose to do the pre-pay lease.

 

[Jfman]

LOL Ford Motor Co Doesn't offer the Bronco for lease. Dream on
I have seen a couple of 3rd party lease deals for 12 months @ $2500.00 a month limited to 10000 miles

LOL Ford Motor Co Doesn't offer the Bronco for lease. Dream on
I have seen a couple of 3rd party lease deals for 12 months @ $2500.00 a month limited to 10000 miles

Maybe only in Canada?

 

[Jfman]

No profit on paying off a lease early. Say you pay the total of the lease early. You will still owe the balance of the vehicle or have to give it back. I don't know if you save on the per lease payment tax or not.

Hello,

buying the car at the end of the lease is irrelevant for my at this moment. My question is about prepaying the amount of the lease only to save the 7% interest that is charged on the total lease amount.

 

[Jfman]

As far as the OP is concerned, you should be able to turn your lease into a purchase at any time during the lease...

Not talking about buying the vehicle from the lease. Talking about making a lump payment so that my lease is paid up.

 

[Lifeliberty]

Hello,

buying the car at the end of the lease is irrelevant for my at this moment. My question is about prepaying the amount of the lease only to save the 7% interest that is charged on the total lease amount.

That's not how leases work. Your payment schedule is decided when you set up the lease. Interest doesn't accumulate as you go along like a loan

In the lease you have there, total cost of your lease will be the 976 + 331x2 for 48 months. Whatever that adds up to now, you need to pay the whole thing.

You can pay it early, but it won't make a difference to the amt you owe

You can always ask the dealer, but I'm pretty sure they will want the full amt

 

[Koz44]

As others have noted, once you set the lease terms you owe the amount due. Paying that amount in 36 payments or 1 doesn’t change the amount. Let’s say you do a 36 month lease and decide in month 2 you want to pay it off - they don’t discount the amount for you. You’d pay the full amount and then have 34 months with no monthly payments.

 

[Silver-Bolt]

The total lease amount is a fixed figured. No benefit in paying it early.

Sponsored