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Is leasing bad???

Markubis

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I leased once and thought it was great until it came time to return the vehicle.
At that point I ended up doing the purchase option and kept the car. Which kept me making payments for longer than I would have liked.
The other option is ending the lease and now having to come up with a down payment on another vehicle. Which I typically do by trading in my old car. When leasing you dont have that option.

I now buy certified used vehicles.....which gives an extended warranty and I'm not paying the new car price.
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Mattwings

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I think it really comes down to if it leases well or not which from my understanding ford leases typically are terrible. Itā€™s something to think about as I been leasing for past 6 years. Leasing has worked well for me with no money down and lower monthly fees, all under warranty. Letā€™s see what happens with the bronco? Iā€™m afraid first year or two the prices will be terrible due to demand.
I have had 7 leases and purchased 10 new Fords. I have never had any issue with the lease or the leasing process. My guess, if the dealer acts unethically or adds charges or omits explanation of options, people think the lease is "bad". Otherwise, the leasing company is just a financing tool, with customer service being the major difference from one company to the next. I have heard that Ford (and others) have continually tightened expectations on the condition of the vehicle on return. Thus my move to wear care to pay up front to not worry about it on return (transfer of risk).
 

BuckinT29

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I guess weā€™ll all find out when build config and purchasing options come up.

I canā€™t imagine ford or dealers just giving these away with attractive lease offers at launch

But

Maybe they will surprise us with money factors that are competitive.
 

cybersal

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Besides the financial aspect, It also depends on how long you plan to drive the vehicle. I'm planning to keep my Bronco until either it's undrivable or I can't drive anymore. There will be maintenance and repairs, but not having car payments is a great feeling. My Escape is 18 years old and I haven't had car payments since 2005. If you plan on getting a new ride every three years, leasing may make more sense.
 

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I have only leased one vehicle and that was a pretty expensive Porsche 911. Running the numbers, if I leased and paid off the remainder in full at lease end, the cost over a car loan was not terrible. We leased because we were not sure if we would still want that car after three years since we had never had any car like that. Ended up keeping the car and paying off the remaining value at lease end as planned. My dad had a friend who only leased and liked a new car every few years. Worked for him. For sure I will not lease the Bronco.
 

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The other option is ending the lease and now having to come up with a down payment on another vehicle. Which I typically do by trading in my old car. When leasing you dont have that option.
One good reason to buy at the end of the model year. Always great incentives that can be applied as a down payment. Then if you are leasing your turn in date will also be end of MY so you can utilize those incentives towards your next purchase.
 

Boxer4

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Ford offers ā€œwear careā€ that covers some damage outside of ā€œnormal wear and tearā€. I have leased my last 3 F150s and with wear care the dealer literally didnā€™t even look at the vehicles when I brought them back. I have run the numbers a bunch of times and the premium for leasing is about $1k over two years here in MI on the F150 including the wear care (assuming normal maintenance items like tires and brakes). For that $1k I have had brand new models every two years and been able to try out different options and features (hated the sunroof on my 16, so I didnā€™t buy the truck). Now I want the Bronco, so I can walk away from my current F150, even though I planned to buy it and the residual is in the range of the value of the truck currently. Ford has been great about extending my lease as I wait for the Bronco as well. All of that depends on the price, residual value, wear care cost and interest rate on the lease (my last three leases I qualified for .25%, which is a big factor in the relatively low cost). They incent the F150 like crazy here in metro Detroit, so I will be curious to run the numbers and see which way I go with the Bronco that will likely have little to no incentives. Just look at the Ranger right now. Locally they are actually more expensive then the comparable F150 once you go through all the options and incentives. All because the Ranger is selling 100% of what they can build.
Did you ever try to have a dealer do a buyout? My best one was a 2013 CRV AWD lease with 4000 over miles buyout at $1425 cash to me. Helped others do into $500-2000s Timing , condition and shortages are everything. Always seems to be a used market for 4wd -AWD in fall /winter. I am sure Mattwings knows this but for others the interest rate on leases is called the money factor. Multiple that by 2400 gives you the interest rate Ex. Money Factor of .002 = 4.8% interest rate.
 

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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?

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Leasing "can" be good. My wife drives a new car every three years and we negotiate a good monthly payment. She is in a Energi Fusion with All leather, heated seats, etc.... and 15k per year mileage.
She only has like a 10mil round trip commute. Her current MPG is around 65-70.
For around $250 a month she has a car that would cost the same as BUYING a base Fusion.
Then after 3 years she turns it back in.

I am considering a lease on Year 1 or 2 Bronco to let the kinks get worked out before I buy.
I don't plan on rock crawling or and hard off-roading. Basically Mall Crawler so I can go top off with my teenage kids and give them an experience.

Cautions on Leasing a Bronco would be that I am sure a sh!t sure that if they think you off-roaded it AT ALL that you will be paying extra on that Lease Return as they point out all these little things they will want to charge you for.

A second Caution would be if you lease into any of their Accessories.
What is typical "Wear and Tear" / "Normal Usage" on a WINCH?
How many times can you reel out that cable and how frayed can it look before they decide they need to replace it at your expense when the vehicle is returned.

SO.... My opinion?
Lease as Mall Crawler? Go for it. Great way to see if you like the lifestyle a Top Off Vehicle Offers.
Lease as an Off Roader? Nope. *unless you plan to buy it at the end*
 

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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?
High. Ford Dealer tried to get my wife to pay for her tire wear on her Lease. She said the tires are rated to 50k, and I pulled down less than 35k miles that my lease allows. Yea, I won't be paying for those tires. Put a warranty claim in on them if you feel they wore out too fast.

Now imagine you Fup a Winch Cable, Have branch swipes down the side, or dent a DiffCover, or dig off the clear coat on your bumper scuffing a tree. Gonna be expensive.,
 
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NewtoOffroading

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Leasing is generally only beneficial if you want a new car every three years (usually a luxury one) or you have shit credit/no credit and can't get a loan or only a bad loan.
 

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maxmxa

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One thing I haven't seen mentioned is that typically if you lease they want you to lease a higher end model (i.e. Outter Banks or Wildtrack with the Bronco) as those are the models that will have all the bells and whistles that will make it easier for the dealer to sell once the lease is up. In fact, 9 times out of 10 the lease payment will be cheaper on a higher end model than it will be on a stripped down base model because of the significant difference in estimated end of lease market value.

As others have noted, the lease v. buy really depends on your circumstances and how you plan to use the vehicle. Remember that with a lease you're going to have to put at least a couple grand down up-front, be it cash or trade-in. The mileage limitation can be a real problem for some. If you commute an hour each way to work every day a lease probably wouldn't be a good option. If you want to take it out on trails, you definitely do not want to lease as they will ding you for every dent, ding and scratch that falls outside the "normal wear and tear" parameters (light scratches less than 1" long, shallow dings smaller than a dime, etc. would be "normal wear and tear for example).

Another thing to think about if it applies is that if you're self-employed and use the vehicle as your work vehicle all or a portion of your lease payment is tax deductible as a business expense (here in the U.S.), whereas if you buy you can only write-off the depreciation.

Another plus to leasing is that (like in the Bronco's case) if it's a new or redesigned model it takes away some of the risk of being the guinea pig for that new design should it end up having a lot of issues as it will be covered under the factory warranty the whole time you have it. Also, if it does end up being a problematic vehicle you aren't stuck with it and won't be responsible for the significant drop in resale value that will go along with it. Just turn it in and walk away at the end of the lease and the financier eats that loss.

Leasing can also be a good way to get into a more expensive vehicle for the long haul that you otherwise wouldn't be able to afford buying it from the get-go as you can spread the payments out over a longer period of time. Yes you will pay interest over a longer period, but these days the interest rate on a lease is usually very low or even zero % if you have good credit and/or wait for a factory promo. I went this route with my current truck where I leased it for the first 3 years then paid cash to buy it out at the end of the lease and ended up saving about $4k over if I would have purchased it outright from the beginning.
I especially agree with lease option on a first year model (being all new design) and not knowing what recalls or issues it might have within first 3 years. Also, if they offer a different engine, a hybrid model, an option you can't add yourself or even your favorite color a couple years from now, you can turn it in at the end of 2 or 3 years and get the newer model. You're not stuck with it like when you buy it and have to deal with selling it. You are basically renting it.

I've leased Ford and other brands before (during their lease specials) and liked the fact that a year later I didn't really like the vehicle as much and I knew I'm not stuck with it. It's just like you are renting it with an option to buy it at the end. You may end up paying extra $4K to $7K more than buying price when you decide to keep it at the end, but remember you would also be paying the taxes on monthly basis.
Depending on what state you live, the sales tax is paid on monthly basis, not all up front like when you buy. This is another reason why the payments are less compared to buying.

I'm interested in leasing one too, but if you go with the higher trim levels ($45K and above) you'd be looking at some hefty lease payments of anywhere between $600 to $800 per month unless you put a large deposit (over $5K) upfront. I doubt Ford will offer any lease specials on a new popular first year model. Even when they offer lease specials, they are on base or mid level trims, not the higher trim levels.
 

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Leasing is generally only beneficial if you want a new car every three years (usually a luxury one) ...
While it is true that Leasing will not allow you to build equity in your vehicle...
Consider that if you can save $200/month, you can put that money into your bank account and you are able to build equity in "yourself"... $7200 over three years.

If you buy (assuming a +$200 difference), I would say that you need to keep that vehicle for 1-2 years after your last payment and even then, you have to hope the the repair bills are reasonable for an older car. You also have to bake in all of the 50K mile maintenance expenses (new tires, etc.).

For me, buying a new car is not worth it in most cases. Better to buy a 1-2 year old car or lease a new car.
 

Mattwings

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Did you ever try to have a dealer do a buyout? My best one was a 2013 CRV AWD lease with 4000 over miles buyout at $1425 cash to me. Helped others do into $500-2000s Timing , condition and shortages are everything. Always seems to be a used market for 4wd -AWD in fall /winter. I am sure Mattwings knows this but for others the interest rate on leases is called the money factor. Multiple that by 2400 gives you the interest rate Ex. Money Factor of .002 = 4.8% interest rate.
I did not know about the money rate, my lease was listed as .25% rate and it looks like that was correct (Cap Cost-Residual X Interest Rate/lease term). I did break down the least cost and residual vs. cash vs. financing when I made the decision, but this is a great example of where someone could really get a bad deal if they didn't understand the nuances between the options and what you are being charged. I looked up money rate and I will keep that in mind if and when I lease again. Great info, thanks! I am sure there is an additional lease fee, but Ford uses these "in house" deals to move money around as a financial tool from my understanding.
 

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if i do want to lease, do i say so at the time i place the order in december? or do we just agree on the price, and then next summer at delivery, i tell the dealership i want to lease?
 

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For me, leasing alleviates a lot of the anxiety knowing there will be new models coming like the Raptor Bronco and I don't want to be held down to the same one long term. If I lease a 2021 and in 3 years the new and improved model is out I'll upgrade.

IF I'm in love with the 2021 still and nothing significant changes, then I have the opportunity at that point to buy out the lease if it's worth more than the residual.
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