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Is leasing bad???

jackwise

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There sure is a lot ink in this thread for something has a very clear answer from a finance standpoint: Leasing a car is one of the worst financial decisions you can ever make. Don't do it.
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bobbleheadguru

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There sure is a lot ink in this thread for something has a very clear answer from a finance standpoint: Leasing a car is one of the worst financial decisions you can ever make. Don't do it.
Completely disagree. While your parents may have told you that... If you don't look at the numbers, you cannot make this statement.

For example:
If you take care of the vehicle and keep the miles low, you will build your bank account by $7,200 over three years v. a "buy" payment that is $200/month more. What if you put that $7,200 into a bigger downpayment on mortgage instead of a renting (and maybe avoiding the PMI payment)? Then that money would be in something that is appreciating instead of depreciating.

You will also have the latest and greatest safety/tech if you keep rolling over leases and you will not have to worry about expensive maintenance that comes after 45K miles. For example, I leased a Volt and I saved so much gas money (when gas was almost $4/gallon) with this new tech, that it offset the payment by about $150/month. It all depends on the payment difference per month, the value of the tech and your goals. You have to do the math.

In most cases, the best vehicle decision would be to get a used car that is 1-2 years old. Are you waiting until 2023 to get a Bronco? No... then a Lease may be better than a Buy.
 

Garemlin

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One way to look at leasing vs buying....

Unless you put a substantial down payment there is no way to avoid negative equity in pretty much every vehicle out there. Unless of course it's a rare, limited edition model. So you either put that lump sum down at the beginning, or roll it over at the end. Either way you pay. So if you plan to keep it until the wheels roll off then buy away. If you know you will get bored, or there is the possibility you don't like your purchase then lease. You have nothing to lose. Yes you have thrown away those monthly payments as, for lack of a better term, rent. But if you keep endlessly rolling over negative equity you are throwing away money as well as getting yourself buried even deeper.
 

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One way to look at leasing vs buying....

Unless you put a substantial down payment there is no way to avoid negative equity
Our Energi Fusion was 0 Down. We walked 3 times to get 0 Down and 15k mi/year.
They eventually called us back
 

Mattwings

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I am pretty sure most Brono purchase are not a good or rational buying decision, I am just trying to make the best decision on how I pay for a fun and completely uneccesary extravagence!
 
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Comadivine11

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The only way I'll lease is going into it knowing that I'm going to buy it out after the 36 mos term. That way miles and/or damage won't count against you and I'm thinking they're going to undervalue the resale on these because they literally don't know what the value is going to be in three years. If they undervalue them and you buy out the lease at the end of the term, your Bronco would be worth more than the amount you've already made in payments. With a lease, the buyout price is decided at the time of the lease. So let's say you buy a new Bronco at $55,000 and at the end of 36 months they say it will be worth $30,000 but after 3 years, it's actually still worth $36,000 you would essentially be able to get $6,000 back by selling it yourself. Or you can just keep it and have a bit of equity in your Bronco, which would help you secure a good rate on a loan for the remainder due, if a loan is needed.

On the flipside, if the value tanks on the Broncos (unlikely) and it's only worth $20,000 after 3 years, you can turn it back in and Ford gets to deal with the $10,000 negative equity (assuming there's no major damage and you stayed within your mileage allowance).

The other reason I might lease is because I don't plan on doing any aftermarket mods that will void the warranty until the warranty expires, which would be at the same time as the lease will end. A lease can be a way of keeping the payment in the region you're comfortable with ($300 vs $600-700). But do not do a lease if you don't plan on buying out at the end and you know that you won't be able to stay within your mileage allowance or avoid damaging the car off-roading, etc. That is when a lease will come back to bite you. Hard.
 

RobC2

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Nobody seems to factor in the overall finance charges much. The money factor (or interest rate) is usually much higher with a lease. Couple that with the fact that you are not paying down any principal and the total finance charges for the life of the lease can be extremely high. If you buy it at the end of the lease (now at used car interest rates) then that is even worse. I am not saying leases are bad. I have two of them going right now, but I put down refundable security deposits to buy down the money factor, they have tremendous residuals, I used incentives and negotiated very good purchase prices, and I have no intentions whatsoever of keeping them at lease end.

This is basically the opposite of what the Bronco is going to be. Prices are going to be pretty high. No incentives. I don't think Ford does MSDs. Not sure on money factor, but I am willing to bet it will be bad. The only thing it might have going for it in a lease is the residual, but that alone is not enough to make a good lease. Check out the LeaseHackr site, lots of good info there. I am sure they are discussing the Bronco. Those guys live and breathe this stuff.
 

Karl_in_Chicago

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Nobody seems to factor in the overall finance charges much. The money factor (or interest rate) is usually much higher with a lease. Couple that with the fact that you are not paying down any principal and the total finance charges for the life of the lease can be extremely high. If you buy it at the end of the lease (now at used car interest rates) then that is even worse. I am not saying leases are bad. I have two of them going right now, but I put down refundable security deposits to buy down the money factor, they have tremendous residuals, I used incentives and negotiated very good purchase prices, and I have no intentions whatsoever of keeping them at lease end.

This is basically the opposite of what the Bronco is going to be. Prices are going to be pretty high. No incentives. I don't think Ford does MSDs. Not sure on money factor, but I am willing to bet it will be bad. The only thing it might have going for it in a lease is the residual, but that alone is not enough to make a good lease. Check out the LeaseHackr site, lots of good info there. I am sure they are discussing the Bronco. Those guys live and breathe this stuff.
Double whammy here against leasing. Chicago has a service tax, which applies to leases. So not only do you pay the high sales tax but you also pay a tax for the privilege of leasing. Leasing is OK for that person that wants to constantly roll new vehicles (which isn't me) but between the typically high interest rates (money factor) when compared to loan financing, the many restrictions (miles, modifications, etc.) and in my case the extra tax it's just a bad deal. That's not to say it isn't a good deal for some people, though.
 

Nova

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I always lease!!! Love it! Why you ask?
I get into a new vehicle every 3 - 4 years, I like the newest tech and improvements available. Either way its a vehicle so there is no investment? You are going to lose money.... Its personal preference for sure...
 

Dr.Z

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Well given that I've gone from a Big Bend to a Black Diamond and now I'm really set on a Badlands I don't think that's an issue anymore :ROFLMAO:
What’s your build now ?
 

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Proudy202

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What’s your build now ?
2 DR Badlands, 2.7 Auto with High package, I don't think I need the 35s from Sasquatch, but want the front and rear lockers, I'm pretty sure the Badlands would be the perfect setup for my use. Then the high for the heated seats and remote start to get me through the New England winter's and that 12" screen!

Apart from that it'll be accessory central once I see what's available, roof rack, that tail gate fold down table are for sure though!

What you looking at?
 

Dr.Z

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2 DR Badlands, 2.7 Auto with High package, I don't think I need the 35s from Sasquatch, but want the front and rear lockers, I'm pretty sure the Badlands would be the perfect setup for my use. Then the high for the heated seats and remote start to get me through the New England winter's and that 12" screen!

Apart from that it'll be accessory central once I see what's available, roof rack, that tail gate fold down table are for sure though!

What you looking at?
Still jumping around honestly... once build comes out I’ll have a better idea... I want some creature comforts but I want it to be badass off the bat, more under warranty and less big stuff to mid. Stay under 50
 

Dr.Z

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2 DR Badlands, 2.7 Auto with High package, I don't think I need the 35s from Sasquatch, but want the front and rear lockers, I'm pretty sure the Badlands would be the perfect setup for my use. Then the high for the heated seats and remote start to get me through the New England winter's and that 12" screen!

Apart from that it'll be accessory central once I see what's available, roof rack, that tail gate fold down table are for sure though!

What you looking at?
What’s your ceiling ?
 
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What’s your ceiling ?
I'm thinking 50k but we'll see once the Build and Price comes out, I think I'll be close to if not over that with the Badlands, High and 2.7 so might stretch a little further.
 

Nu2Fordz

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Something else to consider if you are a first year buyer. If there is an issue, you turn it in at the end of your lease. Wouldn't be the first time a new model has a few kinks to be worked out.
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