Is leasing bad???

[bobbleheadguru]

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.

Money factor is a element that bakes into payment. I don't need know it, if I know the payment difference between lease and buy. If it is $200+ for 13.5K or 15K miles per year, leasing may be worth it. Thanks for the tip on LeaseHackr. I will check it out.

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[Dr.Z]

So those of you planning to lease, you dont plan on modifying your Bronco?

 

[DrewBronc21]

So those of you planning to lease, you dont plan on modifying your Bronco?

many people mod leased vehicles and return to stock before turning it in.

 

[wvmtneer]

Does anyone know what are the benefits(if any) of x-plan on a lease?

 

[BHShaman]

So those of you planning to lease, you dont plan on modifying your Bronco?

Remember that this forum probably represents .001% of all potential buyers.

Yes, MANY people will be buying/Leasing Broncos and never modify them.

 

[Cheshire]

So I haven't bought a new car for 17years...cash purchase of my first car with an inheritance from my grandad...wrecked it 6 months later and lost thousands!!! I swore I'd never buy new again after that and to this day I've never owned anything less than 10years old...I daily drove a 30year old Honda (1989, SiR I imported from Japan into the UK for anyone interested) for 3 years.

So I'm a little confused on how to purchase the Bronco....I don't want to drop all my savings on it cash, I'd much rather keep that invested earning me more money than the interest will be with finance, BUT what's wrong with leasing? I've seen a few people say not to do it and want to know why? I'm not 100% sold on the colours without seeing them in person (would've loved a dark green!!!) And with all these rumours of it getting bigger engines or seeing improvements over the next couple of years I was thinking of leasing my first one then in 2-3years either buying it or upgrading to a newer one if there are different colours or engines. I'm not sure I want to take the risk buying it and in 2 years time they throw the 3.5 Eco in there and come out with some deep green colour and I want it!!!

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?

Cheers
Ash

Leasing for individuals is a bad deal, period. Borrowing money to buy a quickly depreciating asset is also a bad deal. I'd advise young people to save and buy with cash. I haven't had debt in over 20 years. I also don't insure my cars, except for minimum required liability. If you do this, before too long you'll be able to buy a new car with the savings.

Interest and insurance are bad for consumers, but make billions for financial institutions.

 

[mtap]

Not a fan of leasing....at the end of your term you bring vehicle back and you lose out on the $$ you've been paying monthly.

 

[Mattwings]

I agree paying cash is probably the best way to live life. I probably should save more and finance less. Not insuring yourself for liability loss, that’s a gamble I am not willing to take. A lot of this, including leasing is transfer of risk. It’s not inherently bad if you know what your paying and what your getting. If I lease a vehicle and it’s not what I want, has issues or depreciation is more than expected, I transfer that risk to the finance company and pay a premium. If I mistakenly run a red light or don’t see a car coming when I pull onto the road and cause serious injuries and significant property damage, the insurance company defends me and pays up to limits I choose. I pay a premium to transfer this risk. Just make the decision an informed one.

 

[Bronco4lyfe85]

I would never lease a vehicle I intend to abuse like a 4X4. They’ll be chomping at the bit to charge you in the end.

 

[Bronco4lyfe85]

Not a fan of leasing....at the end of your term you bring vehicle back and you lose out on the $$ you've been paying monthly.

Yup, it’s just a glorified rental.

 

[Pancho Kornwallace]

Leasing makes sense in many cases.
If you take care of the vehicle reasonably well, it is worth it.

I am leasing a AWD Escape for $230/month for 2 years and all the maintenance on that vehicle is covered. That is a ridiculously low price.

 

[PWillette]

Some leases are very attractive and a good fit for people who do not put on a lot of miles and upgrade to new every couple of years however there is all kinds of small print to read. For instance tires...there are stipulations that tires must have a certain amount of tread at the end of the lease. If the tires do not meet the specified criteria you are responsible to provide new tires which will be a pricey affair if you lease a squatched model.

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