How many are you are considering leasing versus buying the Bronco?

[Nova]

leasing all the way!!! A lot of people might disagree but that's okay... i will be enjoying all the new features of a new Bronco or something else in 3 to 4 years. You can call it renting for all I care. Its the biggest depreciating asset if you even call it an asset... hmmm might be just in time for that 8 cyl Bronco oh ya

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[T Copp]

Buy. Debated leasing until the Raptor version comes out, but I'm just going to finance and most likely trade in on a used Raptor a few years down the line.

 

[BernR6]

I may lease for the fact this is the 1st year for the new Bronco and it'll be under warranty the whole time. I will not be doing any major off-roading either to void it. Also, I'm planning to go with a 2 door to keep costs down while I change careers. I'm intrigued by the Bronco truck which would be out by the time my lease is up.

 

[Bronco4lyfe85]

You have to run the numbers on lease vs. Buy. Just saying one over the other is better or worse is not correct. Manufacturers often offer incentives on leases that make them very attractive. Depending on interest rates and depreciation on certain models or economic conditions changing can all affect your decision. The last vehicle I leased as a 17 Explorer. We put the tax and registration fee down and the payment was $360 a month with wear care and 15k miles per year. The residual was $26k. When the lease was up, wholesale value was $28k. Retail was $32k (roughly). My salesman (he and I ended up knowing each other fairly well) checked and let me know they could not get one at auction same miles and model for the residual. He wanted to sell me a new vehicle, but agreed it was a great deal to buy it outright. It had been a good vehicle, so we bought it. It also gave us the option of passing if we didn’t like it or it had problems. After lease fees, we saved about $3k vs. buying. We financed it as a used vehicle @3.75%, I paid it off in about a year (a good bonus helped). Bottom line, you have to run the numbers and decide the value you place on certain things. Ford may not offer leases on certain models like the Black Diamond (every try and lease a Mustang GT? Ford has had bad luck with returning condition and lease failures) and may offer excellent offers on the Big Bend or OBX. I will look at my options and make the best decision based on what’s going on at the time my order comes in.

So you’re saying you paid 39K for a 42K Explorer and you leased a 42K car for $360 a month and 15K miles a year with no money down?

 

[bobbleheadguru]

Ok. Now try the Jeep Wranger. I think you will be pleasantly surprised.

 

[bobbleheadguru]

So you’re saying you paid 39K for a 42K Explorer and you leased a 42K car for $360 a month and 15K miles a year with no money down?

My wife has gotten two Lincoln MKCs in a row (3 years each) with a similar MSRP and similar monthly lease payments (not including tax). You have to catch the right deal and be flexible with the exact vehicle.

 

[Mattwings]

So you’re saying you paid 39K for a 42K Explorer and you leased a 42K car for $360 a month and 15K miles a year with no money down?

Nope, My math was wrong, I looked back and I put $5k down. The other money I had included was The lease fee. That was the net difference between leasing and buying. It was A plan, the Sticker was something like $42k, A plan was $38k, Incentives were about $3k. The net difference was $3k less to lease vs. buy, based on the residual being below the current market and the cost of wear care ($400) and the lease fees which Ford sets the rate the dealer charges which was about $700. Net cost difference is the same, I did not note a difference in the payment amount, just the net of buy vs. lease. It can go the other way too. The buy out may be well above market, in that case, you can just walk away.

 

[Boxer4]

So you’re saying you paid 39K for a 42K Explorer and you leased a 42K car for $360 a month and 15K miles a year with no money down?

Ran these numbers through a lease calculator : 42K MSRP- 38K purchase price- no money down- 26K residual - 1% interest = $360 payments @ 36 months
Purchase under same terms $1071.91 payments @ 36 months
Cost to own:
Lease & Purchase $38,960
Purchase $38,588.76
The 1% interest and a purchase price of 38K is one way to get to the $360 lease payment.
Also assumes a cash buy out and everything is negotiable.

 

[Mattwings]

I work with a lot of data around vehicles and financing and pay off . I can’t tell you how many people are thousands of dollars upside down in loans (more than half of the transactions my customers handle owe more than the vehicle is worth). I am not advocating leasing is better than a loan (clearly cash is lower cost than either) but many people would be better off understanding the numbers that make up their contract be it a lease or purchase than subscribe to a blanket approach of buying on contract is always the best way to buy a vehicle.

 

[Boxer4]

Lease Primer:
Its clear that if you borrow money from a bank, you pay interest on the loan.
For a lease, you are "borrowing" a car from a bank and owe them money.

Setting aside taxes, you owe the bank two things:
The car's depreciation over the lease term
The finance fee.

As an example and to keep it simple, no trade ,no money down, no nominal lease fees and a nominal interest rate:
36 month lease @ $ 360 month payments
42K MSRP
38K negotiated purchase price to finance*
1% interest**
26k Residual ( value at the end of 36 months )

Car's Depreciation:
38k-26k / 36 months = $333.33

Finance fee:
Your driving out the door with a 38K car that the bank is putting up the money-you owe them. You owe interest on the depreciation over time + on the 26k residual that is just sitting there.
Here's the formula:
38k+26K x .0004167** = $26.67
Added together = $360 payment

Formula explained:
**The formula uses the Money Factor instead of an interest rate.
Money Factor = interest rate / 2400
So .0004167= 1/2400

*Negotiated purchase price to finance explained:
The correct term is Net Captialized Cost and you get there from the MSRP by any combination of negotiations, money down or trade.

Note-This is a simply explaination.

Buying vs Leasing
Using same terms:
Buying $1071.91 @ 36 months Total cost $38,559
Lease & buyout cash @36 months Total cost $38,960

 

[Jr87mustang]

Just noticed they put the lease values in the B&P for the Bronco Sport. YEESH! I hope someone messed up, they are terrible. I would like to lease to make sure first model year stuff is good, and that I like the vehicle overall.

 

[bf4445]

I used to always buy... the last couple, I've leased, either 2 years or 3 years. I save enough money to pay off the lease portion, then decide if I want to buy at the end. I know...................buying is always cheaper.................but since I'm in CA, if I decide to buy, I pay 9% tax up front, on the whole purchase. If I lease, I pay only the tax on the principle portion of each payment. My goal is to get to the end of the lease, and feel that I have a choice to keep a vehicle or not. If buying, I've got to think whether to keep the vehicle at the end of the same 3 years, while knowing that I've already paid the full amount of tax on a vehicle that I no longer want. BTW, unlike many other states, you DO NOT get credit for the value of your trade in in CA. You just keep paying tax on the whole thing, over and over again!

I can see on a high interest vehicle like this one saving the sales tax and getting a high price in two years is very attractive. For the long term purchasing is cheaper. My 2007 F250 all options at current market value has cost me $102 per month not counting service maintenance insurance. With my current age leasing looks more attractive even at the much higher cost but am still reluctant because of mileage limitations. I'm going to order one maybe a badlands with the mid package IF it can be had with rain sensing wipers and leasing may be the way i should go. Thanks for posting your two cents on leaseing

 

[acetdeucy]

I can see on a high interest vehicle like this one saving the sales tax and getting a high price in two years is very attractive. For the long term purchasing is cheaper. My 2007 F250 all options at current market value has cost me $102 per month not counting service maintenance insurance. With my current age leasing looks more attractive even at the much higher cost but am still reluctant because of mileage limitations. I'm going to order one maybe a badlands with the mid package IF it can be had with rain sensing wipers and leasing may be the way i should go. Thanks for posting your two cents on leaseing

Yeah, well I'm old too... so even more advantage is that maybe I won't be around to have to make a choice to turn it in or to keep it!

 

[bf4445]

Yeah, well I'm old too... so even more advantage is that maybe I won't be around to have to make a choice to turn it in or to keep it!

chuckle....yeah but who cares? So why are we wasting time on this subject we should just get the new toy and play with it. I for one have no desire to leave anything for my remaining kid my daughter.
Which model are you contemplating getting?

 

[acetdeucy]

chuckle....yeah but who cares? So why are we wasting time on this subject we should just get the new toy and play with it. I for one have no desire to leave anything for my remaining kid my daughter.
Which model are you contemplating getting?

well, originally I reserved a Badlands, but I don’t really care about the disconnect. Then, when I added in the extras that I wanted, a Wildtrak already has most of them... and cheaper! So, i’m going Wildtrak... I guess... I think... maybe... well, we’ll see!!!

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