Leasing Options

[Deleted member 16780]

Does anyone know if Ford plans on offering leasing options?
My concern is that it's A) a new model, 2) there will be plenty of "patches" in the coming years to work out bugs and to respond to user/consumer input. And D), not to get political, but who knows what the future holds for the combustion engine with a new regime. Japan has already announced they're going full EV by 2030.

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[AMK610]

Does anyone know if Ford plans on offering leasing options?
My concern is that it's A) a new model, 2) there will be plenty of "patches" in the coming years to work out bugs and to respond to user/consumer input. And D), not to get political, but who knows what the future holds for the combustion engine with a new regime. Japan has already announced they're going full EV by 2030.

Lol, I love how you count. “A, 2, D”

 

[Headsong]

It's just a more expensive way to finance. Of course they will.

 

[Deleted member 16780]

Lol, I love how you count. “A, 2, D”

Its "Home Alone" time of year... remember ole Buzz lol

 

[Deleted member 16780]

It's just a more expensive way to finance. Of course they will.

Lease vs. Loan. It's an age-old debate, I know. I'm driving a 2004 S60 and 2013 XC90. Both solid. Both paid. The XC90 has been flawless, but by 2013, it's final iteration, any kinks it had the Swedes worked-out. My S60 has the occasional issue, but repair costs always stay cheaper than a few car payments. Not sure if I want to hang on to something for the long (7 years on a new Bronco??, no thanks) that may (and will) have issues.. it worries me a little bit.

 

[Headsong]

Lease vs. Loan. It's an age-old debate, I know. I'm driving a 2004 S60 and 2013 XC90. Both solid. Both paid. The XC90 has been flawless, but by 2013, it's final iteration, any kinks it had the Swedes worked-out. My S60 has the occasional issue, but repair costs always stay cheaper than a few car payments. Not sure if I want to hang on to something for the long (7 years on a new Bronco??, no thanks) that may (and will) have issues.. it worries me a little bit.

That usually has nothing to do with repair cost. You're still treated as the owner even when you're Leasing.

 

[Deleted member 16780]

That usually has nothing to do with repair cost. You're still treated as the owner even when you're Leasing.

My poorly worded point is that my annual repair costs on my ‘04 are still cheaper than financing a new car. Why I’m still driving it. That, and I find most cars out there uninteresting.

with a lease, you can turn in the problematic car. If you finance it, you’re stuck repairing and paying your depreciating “investment”

+$700 a month for a first model year to eventually own? For me, it’s a very poor choice.

 

[Judge Rufus]

If you finance it, you’re stuck repairing and paying your depreciating “investment”

No, you sell it. And you're able to capture any equity you may have in it.

IMHO, leasing only works if you like to have new cars every few years, and you want to simplify your switching transaction costs. If you keep your vehicle for longer periods, financing is better economically. But if you need to get rid of your vehicle earlier, the switching transaction costs may be a bit more when you switch if you own the car.

 

[Headsong]

And leasing is not like renting. You can't just hand them the keys and walk away. You're responsible for the residual value that is built into the lease. So if your value isn't there you're responsible to make that up.

 

[lowmpg]

If you're that concerned, you might want to wait.

 

[Deleted member 16780]

You're responsible for the residual value that is built into the lease.

All due respect, but this ain't my first rodeo.
The situation you described is if you purchase your lease. You're responsible for mileage overage and damage on the turn-ins, unless of course you poorly negotiated your lease.
But mostly if you return it directly to the dealer or to Ford as a walk-away.
If you turn it in on a new vehicle transaction, you'd be very surprised what you can get away with.

I've also purchased many second-hand vehicles over my lifetime. I'm not a Ferrari collector, and with the exception of that cohort, I know most educated buyers are never looking for the introductory model year.
Never.
This Bronco is not going to be an easy sell in 6-7 years. Not with improved and updated generations on the road. For me, purchasing it is a hedging of bets. Of course, the prudent option is to wait, but with production forecasts already projected to be past 2022, and my risk aversion slightly down-tuned, I am still thinking the lease option is the safer course of action.

 

[Gloff]

Oh man, leasing has to be the least understood finance item in all of car buying. Leasing can be a very powerful tool for a business in some states. It can also be great tool for consumers. Every state has different leasing rules, and the individual has to do the homework on if it makes sense. In my 10 years in the car business, leasing is a great option for many people, and is not the money sink that some folks think it is. I encourage anyone interested do some actual research in their state, and assess their personal financial situation.

It's just a more expensive way to finance. Of course they will.

This isn't always true. Even accounting for financing the residual, there was a period of time that a 2019 Edge was cheaper to buy doing a lease first than financing. Every model and deal is different. I leased my Ranger partly because the residual was 72%. Every state is different too, California is very lease friendly with a lot of benefits and very little downside, again, depending on model.

No, you sell it. And you're able to capture any equity you may have in it.

IMHO, leasing only works if you like to have new cars every few years, and you want to simplify your switching transaction costs. If you keep your vehicle for longer periods, financing is better economically. But if you need to get rid of your vehicle earlier, the switching transaction costs may be a bit more when you switch if you own the car.

Depends on how long, for many high volume models, the break-even point of buying one car vs leasing multiple is nearly 10 years. There's a lot of factors that should make up a lease/buy situation.

And leasing is not like renting. You can't just hand them the keys and walk away. You're responsible for the residual value that is built into the lease. So if your value isn't there you're responsible to make that up.

Every state is different and it depends on what type of lease, open vs. closed end lease. Most consumer leases are closed end, and you are not responsible for the residual.

 

[Grooticus]

If you think Broncos won’t have a high resale and will be difficult to sell you shouldn’t buy one. Your idea that new year models will be more affordable is overly optimistic in my opinion. Ford has much more interest than they expected, that generally means the price is going up to match demand. 2022/2023 models, which aren’t likely to be on lots this time next year, will be priced over MSRP until everyone who wants one has one. Perhaps you might get a discount or promotional rate summer of 2023. I’d bet the sticker will be significantly higher than it is now. $54,000ish for a fully loaded 4 dr Wildtrak is going to be into he 60’s easily. The economy should be back on track, people will have money to spend, added to inflation lends to big increases in prices.

 

[Deleted member 16780]

If you think Broncos won’t have a high resale and will be difficult to sell you shouldn’t buy one. Your idea that new year models will be more affordable is overly optimistic in my opinion. Ford has much more interest than they expected, that generally means the price is going up to match demand. 2022/2023 models, which aren’t likely to be on lots this time next year, will be priced over MSRP until everyone who wants one has one. Perhaps you might get a discount or promotional rate summer of 2023. I’d bet the sticker will be significantly higher than it is now. $54,000ish for a fully loaded 4 dr Wildtrak is going to be into he 60’s easily. The economy should be back on track, people will have money to spend, added to inflation lends to big increases in prices.

On a side, why did you choose the Bend? I'm on the fence between that and the Diamond.

 

[Dick_Castlesmurff]

All due respect, but this ain't my first rodeo.
The situation you described is if you purchase your lease. You're responsible for mileage overage and damage on the turn-ins, unless of course you poorly negotiated your lease.
But mostly if you return it directly to the dealer or to Ford as a walk-away.
If you turn it in on a new vehicle transaction, you'd be very surprised what you can get away with.

I've also purchased many second-hand vehicles over my lifetime. I'm not a Ferrari collector, and with the exception of that cohort, I know most educated buyers are never looking for the introductory model year.
Never.
This Bronco is not going to be an easy sell in 6-7 years. Not with improved and updated generations on the road. For me, purchasing it is a hedging of bets. Of course, the prudent option is to wait, but with production forecasts already projected to be past 2022, and my risk aversion slightly down-tuned, I am still thinking the lease option is the safer course of action.

ICE Broncos will be relevant and valuable for a long long time. They might even spike in value when people can't get new ICE vehicles anymore.

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