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Was curious 🧐 if anyone did a LEASE ?

Jeeper5002000

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I get it, leasing is definitely not for everyone and doesn't make financial sense for everyone. But I'm currently on my 1st ever LEASE (21 Tacoma) and I was once one of those people that ALWAYS said how stupid and blah blah blah leasing was. But was curious if the Bronco would get me close to a $450 monthly lease payment with 4k down on a $39k loan? I understand that there are many variables involved. My BB is scheduled for Mar 09 ETA if that makes any difference. Appreciate the advice and Happy New Year. FULL DISCLOSURE is I'm happy to pay $600 a month for the Bronco, but was thinking leasing it 1st in case there are still a bunch of issues with the 2nd years also.
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same2you

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I get it, leasing is definitely not for everyone and doesn't make financial sense for everyone. But I'm currently on my 1st ever LEASE (21 Tacoma) and I was once one of those people that ALWAYS said how stupid and blah blah blah leasing was. But was curious if the Bronco would get me close to a $450 monthly lease payment with 4k down on a $39k loan? I understand that there are many variables involved. My BB is scheduled for Mar 09 ETA if that makes any difference. Appreciate the advice and Happy New Year. FULL DISCLOSURE is I'm happy to pay $600 a month for the Bronco, but was thinking leasing it 1st in case there are still a bunch of issues with the 2nd years also.
I always lease... mainly because of the situation that I am in for work, and I like being in new car. The flaw in your logic is that a lease really does lock you into the term, and you will be paying heavy penalties to get out of it if you want to do so early. Let's say that you end up not wanting it anymore (tired of it, life changing event, moving, reliability issues, something shiny caught your eye, etc)... if you were financing it, then you likely have a bit of equity in the vehicle or will only end up a little behind when you get rid of it; when you lease, you are never really in a positive financial situation until you're at the end of the lease. Occasionally you can find a dealer that might make you whole by buying out your lease for you, but that is typically in the last 6 to 8 months of the agreement. For example... when I finally had enough of my Range Rover being in the shop, I ended up taking a $10k bath to get rid of it 2.5 years early so that I could get into something that wasn't being towed 3 to 4 times/year (unfortunately Canada does not have the lemon law that the USA does). The other part to consider is that Ford is going to want their vehicle back in a certain condition, and you are on the hook if it does not meet the bar (dings, stained interior, scratches, excess miles, chipped windshield, modifications, etc); if you were not leasing, then those things typically don't affect resale value too much.

After saying all of that, right now we are in a situation that is unprecedented because of low inventory and high demand in the used car market, and many people in a lease can actually make money by buying out their lease and reselling the car on the used market (or as a trade on a new vehicle), but I can't see that situation ever coming around again.
 

MikeyFrog

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I always lease... mainly because of the situation that I am in for work, and I like being in new car. The flaw in your logic is that a lease really does lock you into the term, and you will be paying heavy penalties to get out of it if you want to do so early. Let's say that you end up not wanting it anymore (tired of it, life changing event, moving, reliability issues, something shiny caught your eye, etc)... if you were financing it, then you likely have a bit of equity in the vehicle or will only end up a little behind when you get rid of it; when you lease, you are never really in a positive financial situation until you're at the end of the lease. Occasionally you can find a dealer that might make you whole by buying out your lease for you, but that is typically in the last 6 to 8 months of the agreement. For example... when I finally had enough of my Range Rover being in the shop, I ended up taking a $10k bath to get rid of it 2.5 years early so that I could get into something that wasn't being towed 3 to 4 times/year (unfortunately Canada does not have the lemon law that the USA does). The other part to consider is that Ford is going to want their vehicle back in a certain condition, and you are on the hook if it does not meet the bar (dings, stained interior, scratches, excess miles, chipped windshield, modifications, etc); if you were not leasing, then those things typically don't affect resale value too much.

After saying all of that, right now we are in a situation that is unprecedented because of low inventory and high demand in the used car market, and many people in a lease can actually make money by buying out their lease and reselling the car on the used market (or as a trade on a new vehicle), but I can't see that situation ever coming around again.
Spot on here, if you're about 2.5 years into a 3 year lease, you're usually going to be able to get near or meet your buyout to purchase the vehicle in a trade-in.

As far as leasing the bronco, pretty sure I heard or read that the initial terms on ford's website were way off and the lease is not nearly as favorable as they were once thought to be.
 

JohnnyBronco

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Your dealer is best info on leasing and based on miles selected $400 with 10% down on a $39k msrp should be achievable
 

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Dubsesd

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I leased mine because it’s a first year vehicle, I ordered without ever driving one and it was cheaper on the wallet. I thought if I absolutely hated it I’m not tied to it and can turn it in at lease end. (Not the case I love it). It may not have been a good financial decision to lease if you plan on buying it out. Mine was $56k I put $10k down my payment is $480. If I were to purchase it I think it would have been $760 for 60 months. (I think I don’t really remember)
 

Scape Goat

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I never lease. However, everyone mentioning the fact it is a first year vehicle, and wise to lease make a valid point.

Leasing will never make financial sense, but can make sense based on you lifestyle.
 

e90steve

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I leased mine because it’s a first year vehicle, I ordered without ever driving one and it was cheaper on the wallet. I thought if I absolutely hated it I’m not tied to it and can turn it in at lease end. (Not the case I love it). It may not have been a good financial decision to lease if you plan on buying it out. Mine was $56k I put $10k down my payment is $480. If I were to purchase it I think it would have been $760 for 60 months. (I think I don’t really remember)
Your 10k is gone like Kezer Soze if you total the car. The main argument for leasing is to put as little down as possible. All you are doing is buying down the lease fronting the money upfront. I’m all for leasing but 10k down on a lease to lower the payment is just dumb.
 

Dubsesd

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Your 10k is gone like Kezer Soze if you total the car. The main argument for leasing is to put as little down as possible. All you are doing is buying down the lease fronting the money upfront. I’m all for leasing but 10k down on a lease to lower the payment is just dumb.
Thx for your input, I was aware of all the circumstances and fine with my decision.
 

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Jr87mustang

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I usually lease my F-150s. I went in to lease the Bronco and Ford just had a standard factor of 8.2 which is insane. Quickest way to figure out if your getting screwed is to add up all your payments, money down, and your residual value and compare that to what your our the door price is. No way I would lease until Ford puts out a competitive lease rate.
 

BroncoAZ

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I have a 2021 Tacoma lease, $42000 MSRP, $4000 and dealer fees down, $275 per month thanks to an insane residual value. The residual value on my 2 door Badlands was 55%, making it a terrible lease. The 4 door Badlands is a little higher at 61%, but still nowhere near the Tacoma. I did $10K down and the rest at 1.9% for 60 months.
 

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Leasing gets a bad rap, but its mostly due to ignorance of the math behind it.

leasing is just owning with a predetermined buyer and price. Thats it.

Everyone thinks its expensive "and you walk away with nothing". but If you purchase a car, and sell it in 36 months, you will theoretically end up with the exact same amount out of pocket (assuming interest rates are similar and Lease End Value winds up being accurate to actual used value)

Obviously cars experience accelerated depreciation in the first 3 years, so buying a brand new car every 3 years is an expensive lifestyle. Leasing just happens to embody that lifestyle.

Leasing gets a bit punitive if you put a lot of miles. and you may have headaches if you modify the car.
 

kput

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I work at a Ford dealer, have been in sales for nearly a decade now, so I know a bit about what I'm talking about here.

I leased my Bronco through Ford Credit. Residual percentage was 76%~ based on my region. (Ford's incentives are all based on where you are titling your vehicle, I'm in the Kansas City region). I won't get into too much detail, but I can tell you my payment is at least $200/mo cheaper than it'd be on a purchase with 0 down.

4-Door base has the best possible residual. Other 4-door models are decent, however the higher the trim level the lower the residual (more expensive cars depreciate more quickly). 2 door residuals are garbage. Don't do it.

Ford only offers standard rates on Broncos. For tier 0-1 credit this is around 6%. Not great, by any means, but Ford Credit has the best residuals and payoff structures.


You can lease with other banks, if your dealer uses them (US Bank, Ally, etc). However, beware. Bank leases do not have fair rules in regards to payoffs. If I would have leased through US Bank instead of Ford, my payoff would have been 3~ thousand dollars higher based off how they calculate taxes. They also change the payoff based on market conditions, unless you are buying it yourself and financing with them. Ford offers a straightforward payoff structure, and as long as you aren't inside of 120 days til your term date, it's based off residual + remaining payments.

Don't put money down on a lease. As previously mentioned, you lose all of it in the event of a total loss.

You are not likely to find good leases from any manufacturers anywhere right now. Some vehicles might offer 60%+ residuals on some vehicles still, but it's rare. 0 rebates, buying at MSRP = bad leases. A lease will likely be cheaper than a purchase on most cars, but the days of $200 lease payments are well in the past for at least another year.

Someone mentioned that you're often able to get out of a lease 2.5ish years in. I often find this is not the case (this last couple years and crazy market conditions not included). Leases aren't designed for you to have equity or break even on. Unless there's some sort of early bird program, you're better off waiting til lease end (again, crazy market conditions currently aside). The Bronco will likely be a different story, which is part of the reason why. With extremely higher resale values now and in the future, I should have equity in my lease the entire duration and can get out whenever I'd like.

Some also mentioned high fees and penalties associated with terminating a lease early. Often times this isn't the case, you wouldn't pay any additional fees to end your lease early. You'd just have to pay off the remaining payments (you signed a contract saying you'd pay all of them), or if you trade or sell the vehicle to a dealer you'd have to pay any negative difference to the dealership. The only fee Ford Credit would assess would be their $400ish disposition fee if you turn the vehicle back in and don't purchase another new Ford. (this is Ford credit only. Other banks have different rules)


Anyway, sorry for the long post. Figured I'd clarify a little info for people genuinely considering leasing. Don't forget, you don't pay sales tax on the full vehicle price on a lease, and if you're putting in a company name you can write off 100% of the lease payment, as opposed to whatever percentage rules they have with purchases. 🤷
 

balucipher

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I made 9k flipping my 4xe lease

I'll probably buy both my Broncos
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