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Maybe I am missing something significant so help me and others like me out here if that's true.
For those people that are unable to or are hesitant to throw down a large down payment, leasing seems like a good option. Leasing allows for you to put less down and have significantly lower monthly payments then straight financing would with the same amount down.
Example using my numbers but plug your own into it to help you out;
My Build is $54,170. A lease at 48 months allows me to only put down $5,353 driving 13,500 miles a year and gives me a monthly payment of $575.
Financing with that same amount down, $5353, a 48 month term at 3% interest gives me $1,067 month payment. A 60 month term gives me $866 a month payment. 72 Month term is $732 a month payment.
In order to get anywhere near my lease payment of $575, financing, I will need to put down $20,000. At 3% interest and a 60 month term and I am sitting at $603 a month payment. Extend my term to 72 months and I am now at $510 dollars a month.
So if I am unable to make a large down payment or I am wanting to keep more of my cash in savings for now, it seems like leasing is simply a better option.
By the end of my 4 year lease term I believe I will owe approx $21,217 dollars. Original MSRP $54170 minus my down payment $5353= $48817. Minus what I pay during the term of lease $27600........ $48817-$27600=$21,217. (I know that interest isn't accounted for and for the act of simplicity I am keeping it that way.)
Now, am I correct in stating that regardless if you lease and then end up buying out your Bronco or finance your Bronco from the get go you will still be paying the same price of the Initial MSRP, minus differences in interest and some nominal fees of course?
In my view A lease is really letting you change up when you pay the large down payment. I.E. doing it now vs doing it later, in this example 48 months down the road I can pay my remaining balance of $21,217 or even finance the car for another couple years to pay off the remaining balance. Thus allowing you time to save for that buy off amount if needed.
I see a couple of other perks to financing, I.E. not paying sales tax on total vehicle price on initial purchase, but will save those for later as this was alot to throw out there. I hope that all makes sense and I look forward to the thoughtful reply's.
Thanks for bearing with me on a long post. Damn excited for getting me and the fam a Bronco and want to do it wisely.
For those people that are unable to or are hesitant to throw down a large down payment, leasing seems like a good option. Leasing allows for you to put less down and have significantly lower monthly payments then straight financing would with the same amount down.
Example using my numbers but plug your own into it to help you out;
My Build is $54,170. A lease at 48 months allows me to only put down $5,353 driving 13,500 miles a year and gives me a monthly payment of $575.
Financing with that same amount down, $5353, a 48 month term at 3% interest gives me $1,067 month payment. A 60 month term gives me $866 a month payment. 72 Month term is $732 a month payment.
In order to get anywhere near my lease payment of $575, financing, I will need to put down $20,000. At 3% interest and a 60 month term and I am sitting at $603 a month payment. Extend my term to 72 months and I am now at $510 dollars a month.
So if I am unable to make a large down payment or I am wanting to keep more of my cash in savings for now, it seems like leasing is simply a better option.
By the end of my 4 year lease term I believe I will owe approx $21,217 dollars. Original MSRP $54170 minus my down payment $5353= $48817. Minus what I pay during the term of lease $27600........ $48817-$27600=$21,217. (I know that interest isn't accounted for and for the act of simplicity I am keeping it that way.)
Now, am I correct in stating that regardless if you lease and then end up buying out your Bronco or finance your Bronco from the get go you will still be paying the same price of the Initial MSRP, minus differences in interest and some nominal fees of course?
In my view A lease is really letting you change up when you pay the large down payment. I.E. doing it now vs doing it later, in this example 48 months down the road I can pay my remaining balance of $21,217 or even finance the car for another couple years to pay off the remaining balance. Thus allowing you time to save for that buy off amount if needed.
I see a couple of other perks to financing, I.E. not paying sales tax on total vehicle price on initial purchase, but will save those for later as this was alot to throw out there. I hope that all makes sense and I look forward to the thoughtful reply's.
Thanks for bearing with me on a long post. Damn excited for getting me and the fam a Bronco and want to do it wisely.
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