Current lease environment?

[adam1991]

A month ago when I bought, I asked the guy about leasing. He said these Broncos aren't leasing well at all (NOTE: we were dealing on a brand new '23 OBX), and discouraged me from going that direction. That was a quick conversation, because I'm not a lease person--I've always purchased, and was more than happy just to buy it.

But it's still rattling around in my mind. Was I taken for a ride on this? Was he, or could he have been, accurate in this?

Clearly it's a moot point now, but still.

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[TXBronco1313]

I leased my Heritage Edition in February with the intention to either trade in the lease in 2 years for a F150 Raptor or buy it outright or finance the remaining at the end of the lease term. Your dealer wasn’t wrong because mine said the same thing and the fact is, it is true, Broncos don’t lease well but in terms of monthly payments leasing remains the cheaper option. For me, I saved about $275 a month going the leasing route

 

[SunilD]

What do you guys mean by "the Bronco does not lease well"?

Does it have to do with using it off road? Or maybe that it's costly at the end of the lease term (if you want to keep it)? Or maybe it's better for the dealer to sell than lease so they can be more flexible on price?

I've never leased a vehicle, asking for a friend haha!

 

[adam1991]

in terms of monthly payments leasing remains the cheaper option

yeah, it's a strategy depending on your goals. No question. Lower monthly payment with a balloon payment at the end isn't a goal of mine, though. In fact, I'd never put anything down on a lease--and that jacks that monthly payment right back up.

No, I was just curious if this guy was yanking my chain or not. It looks like not. Good to know. Thanks.

 

[adam1991]

What do you guys mean by "the Bronco does not lease well"?

Does it have to do with using it off road? Or maybe that it's costly at the end of the lease term (if you want to keep it)? Or maybe it's better for the dealer to sell than lease so they can be more flexible on price?

I've never leased a vehicle, asking for a friend haha!

Sometimes the mfr will have incentives that apply to leases but not purchases, for example. That might drive the leasing decision--"it leases well". That's one example. Leases have been used by manufacturers to let them keep high sticker prices while providing incentives that drive the capital cost down to more reasonable levels. Leases are an easy tool in which to do that, way easier than cash on the hood incentives. It's easier to hide things inside a lease.

EVs currently fall under the category of easy leasing, due to federal fingers in the pie trying to drive that purchasing decision. They throw federal dollars at it, but make those dollars easily available only for leasing--and harder to get for those who purchase.

 

[Bigmoose]

Most likely because the lease factor is terrible, aka high interest rate.

 

[Coralhead]

IMO, Leasing is so people can drive a certain vehicle they can't afford to drive.

 

[RCR]

I leased a ‘23 4dr Badsquatch in June and the difference between leasing a ‘23 vs a ‘24 was significant. The ‘24 was almost $300/mo more. I assumed Ford was willing to deal a bit on the remaining ‘23’s but felt the demand for the ‘24’s didn’t warrant any incentive at the time. Purchase structure was similar for the ‘23, but I just preferred the option of handing back the keys if I wasn’t happy with it after 36 months. I always have the option of buying it.

 

[adam1991]

IMO, Leasing is so people can drive a certain vehicle they can't afford to drive.

Overall, yes--it's a tool to make a good-looking monthly payment while at the same time preserving the high selling price that's profitable to the dealer and the salesman, and to keep the high sticker price that the manufacturer wants.

And it's all because of people who buy on monthly payment instead of total cost of acquisition. Those monthly payment people have talked themselves into the car being a subscription item instead of a hard good.

That all being said, smart people can use leasing as a solid financial tool if it's appropriate for their situation and goals.

 

[jgadharf]

My experience is that leasing is getting better. I just took delivery of a '24 OBX. Since I ordered in July, the lease quote came down more than $200/month b/c of new rebates and better residuals and lease rates. I have A Plan and live in MI for what it's worth.

 

[Brian_B]

I remember a time when leasing Jeeps was a decent deal - the first 36 months were relatively tame as long as you didn't exceed the mileage, and at the end of the lease the buyout was sometimes for less than the book value of the Jeep, so you could buy it out make out ok - either fliping it or keeping it. That was a few years ago though, and car prices are dramatically different today than they were pre-covid. I don't know that we'll see that in today's market.

That said, I wouldn't want to lease a Bronco (or a Jeep) - I do too much stuff to mine. Even if it were financially attractive, I feel like I'd have to treat it like a china doll for 3 years before you could really get out and have fun with it.

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