Buy/Lease, or wait ?

[Mack674]

Hey guys -

been pacing around the idea of buying a 16 Explorer XLT for a while now - though I've been seeing they are having alot of issues with paint chipping, throttle body defects etc.

I've also always financed by cars but I'm starting to wonder if leasing for a few years and buying it at the end would be a better option.

My current 2012 Chrysler 300 was pre-owned (11000km) and has had more than its share of repairs (control arm on 3/4 wheels, alternator to name the most expensive). Initially my plan was to buy a 2012-2013 used vehicle, pay it off outright or very quickly and bank the monthly payment savings.

Except had I done that with my current vehicle and just bought it last month, I'd already be out several thousand dollars (almost a year of savings) from these kinds of surprises.

I'm considering leasing for a) lower monthly payment and b) if/when I decide to buy at the end, I know who drove it and what if anything has happened to the vehicle along the way.

Am I going to get totally robbed $ wise if I do this? I'd like to buy one and hang on to it for a while. Im going from the Chrysler to an SUV because I have a family now and I just need more room. Plus, I can't stand driving in Canadian winters without AWD. The Explorer seems to fit everything I want, plus I think they great.

However, the 2017 Escapes just came out and I understand the 17 Explorers aren't far behind?

Should I pursue to lease/buy option, finance one out of the gate or maybe even wait until the 17' models are available ?

Also, when is the Ford Employee Pricing thing happening , thats almost every summer it seems like? All the other dealers around here (JeepChrysler, Toyota, Kia etc) all have incentives and 0% on right now while ford has nothing yet.

Sorry for writing a short novel, but I'm trying to do the opposite of my last 3 vehicle purchases and make a smart decision here.

Thanks! Cheers

Jeremy

 

[613GT500]

Think of it like this.
You're buying a depreciating asset and unless it's a collectible, you'll never come out ahead and will be in the hole per se.
Lease and return you're out of money and without anything to show for.
Buy out right and now you have an asset that costs you money in terms of fuel, insurance, maintainence and repair; for how ever long you keep it.

With that being said, crunch your numbers and go the route that you can afford.

 

[Halwg]

It depends...

 

[chazglenn3]

My wife drives too much for a lease to be an option for us. I would say that if you drive sparingly, then looking into a lease is worthwhile. I bought our Platinum in January, and she has already put over 10K miles on it. They have been pleasant, trouble-free miles as a bonus!

 

[Mack674]

I can afford a finance but i always felt the prices for new cars along with depreciation, interest etc is just robbery and hard to justify as a smart expense.

On the other hand had I bought my current vehicle used it would have cost me almost just as much anyway so..

Im likely going to finance but should I wait until the 2017 model is available? Ive read about a few problems with the 16.

 

[chazglenn3]

As far as I know, the major difference between the '16 and '17 is the Sync system. We have been perfectly happy with Sync 2 and My Ford Touch. Others are dying to have Sync 3.

 

[Tuscany]

If you buy a 16' now, you are buying a year old vehicle with an entire years worth of depreciation attached.
Buying a 16' makes no sense IMO.
Pay the extra $500 for the 17' and pocket an extra $3,000 when you trade it.

I personally like control of my car deals, and I enjoy the pride of ownership, so I do not lease.
Leasing only works if your mileage consumption matches your lease agreement. Go over on mileage, or don't use the entire mileage you've paid for, you lose.

 

[peterk9]

I can afford a finance but i always felt the prices for new cars along with depreciation, interest etc is just robbery and hard to justify as a smart expense.

On the other hand had I bought my current vehicle used it would have cost me almost just as much anyway so..

Im likely going to finance but should I wait until the 2017 model is available? Ive read about a few problems with the 16.

This matter has been discussed here several times and only you can decide what is best for you since everyone has their own financial situation, likes and dislikes.
I've leased my last 5 vehicles and will lease my next one as well when my lease is up next April. There are pros and cons to whatever you decide. Personally, I like the idea of not having to pay the full cost of the vehicle and the full taxes. I like to change vehicles every 3 to 4 years and have one that is under warranty. If the vehicle turns out to be problematic, I'm not stuck with it beyond the lease term. Mileage has never been an issue as I've never come close to the allowable total. Leasing then buying it out at the end will cost more than buying it initially.
You may be interested in the following thread as well; http://www.explorerforum.com/forums/showthread.php?t=439978&highlight=lease

Peter

 

[Mack674]

Oh right, thanks Tuscany I hadnt even thought of it that way. Id thougt they would give the 16s away cheaper when the 17s rolled out but not by nearly enough to cover that year - thats a good point.

I dont drive a whole lot and staying under 20k per year or even 16k is pretty likely.

Shouldnt there be an incentive for summer anytime like the employee pricing event? Almost all the other dealers around here are selling at 0% financing etc right now except Ford.

Is it possible to get this from a dealership out of season? I understand its overall the best deal you're realistically going to get besides taking someone hostage or something lol

Would hate to buy one and then miss a discount by 3 weeks.

 

[Tuscany]

Oh right, thanks Tuscany I hadnt even thought of it that way. Id thougt they would give the 16s away cheaper when the 17s rolled out but not by nearly enough to cover that year - thats a good point.

I dont drive a whole lot and staying under 20k per year or even 16k is pretty likely.

Shouldnt there be an incentive for summer anytime like the employee pricing event? Almost all the other dealers around here are selling at 0% financing etc right now except Ford.

Is it possible to get this from a dealership out of season? I understand its overall the best deal you're realistically going to get besides taking someone hostage or something lol

Would hate to buy one and then miss a discount by 3 weeks.

Mack, incentives are regional, and are dictated by dealer stock. When there is excessive stock to move in a certain area, Ford will help out the regional dealers with larger rebates. For example, my order will be drop shipped to our place in SW Florida, and the rebate down there was $500 more than is was here at home. That may change again when the vehicle hits the ground down there.

Rebates may or may not initially exist for the 17'. I would guess that the 17' will debut with a $500 rebate, and within a month, go up to $1,000.
I don't have any experience on how Ford Markets in Canada. Peter would be the guy with the Canadian market knowledge and experience.

 

[Mack674]

Oh okay - Ive just noticed theyve done the employee pricing thing up here for the last few years almost every summer, maybe im wrong.

How tough would it be to negotiate it down close to that ? Shaving down 2-3k off the sticker price is worth the effort to me if it can be done. Ive been calling around to dealers in the area but they aren't too aggressive in wanting any business so, thats a bad sign lol

 

[peterk9]

Oh okay - Ive just noticed theyve done the employee pricing thing up here for the last few years almost every summer, maybe im wrong.

How tough would it be to negotiate it down close to that ? Shaving down 2-3k off the sticker price is worth the effort to me if it can be done. Ive been calling around to dealers in the area but they aren't too aggressive in wanting any business so, thats a bad sign lol

You're correct in that Employee Pricing usually rolls around in the Summer. You will also find that when that is in place that interest rates tend to go up and other incentives may disappear.
I had my salesman give me a price on a 2016 Platinum to get an idea of what I may be looking at next year price wise. If I recall, it came in at around $61,800 and I could get it for $58,500. That would be without any incentives and without knowing if my MKT would be worth more than the residual. There is also the $1000 Costco rebate for existing Costco members.

Peter

 

[Mack674]

Ahh sneaky - interest raises will offset the cost so theres really not much of a deal to be had anyway...

Is there any difference in interior between the base model and XLT besides the seats? I cant find a straight answer and theres none around here to look at.

Just wondering if the dash, steering wheel etc is the same or not.

I like the XLT trim but i dunno if I 4k for some chrome bumpers and heated seats like it..

 

[peterk9]

Ahh sneaky - interest raises will offset the cost so theres really not much of a deal to be had anyway...

Is there any difference in interior between the base model and XLT besides the seats? I cant find a straight answer and theres none around here to look at.

Just wondering if the dash, steering wheel etc is the same or not.

I like the XLT trim but i dunno if I 4k for some chrome bumpers and heated seats like it..

I don't there is any difference in the steering wheel except for perhaps fewer control buttons. There are 3 types of instrument clusters with #3 being on the Platinum and I think #1 being on the Base. There would also be a difference in the display depending on whether you have navigation or not.
Perhaps picking up a brochure from a local dealership would help or you can order/download one online from the Ford.ca website. The clusters are also shown in the Owner's Manual which can also be downloaded.
https://owner.ford.com/tools/account/how-tos/owner-manuals.html

Peter

 

[613GT500]

Oh okay - Ive just noticed theyve done the employee pricing thing up here for the last few years almost every summer, maybe im wrong.

How tough would it be to negotiate it down close to that ? Shaving down 2-3k off the sticker price is worth the effort to me if it can be done. Ive been calling around to dealers in the area but they aren't too aggressive in wanting any business so, thats a bad sign lol

I received about $7K off my Explorer Sport last year (employee pricing+Costco discount and dealership discount).

How much of that is really a "discount" as we all know MSRP is marked up huge, but it worked out to what I was willing to pay for my first Ford product.

 

[Fentress24]

I would wait for a good deal and just finance it. If you can get 0% for 7 years or employee pricing its the best way to do it.

Buy vs. Lease is very dependent on your situation. I always lean towards buy because I hold on to my cars for 5+ years, but if you change cars every couple years leasing is probably the better option.

 

[Mack674]

Yeah 0% for 7 years would be killer - i plan to drive this next vehicle for at least that long.

 

[Fentress24]

Yeah 0% for 7 years would be killer - i plan to drive this next vehicle for at least that long.

Sorry I meant 0 for 72 months. 6 years. I know Ford runs that special a couple times a year. I bought mine back in February and used a credit union and my rate is 1.9%. My dad bought his f-150 king ranch when they were running the special financing and he got 0% for 72 months. I wish I wasn't so impatient and could have waited for that.

 

[GrafX]

Hey guys -

been pacing around the idea of buying a 16 Explorer XLT for a while now - though I've been seeing they are having alot of issues with paint chipping, throttle body defects etc.

I've also always financed by cars but I'm starting to wonder if leasing for a few years and buying it at the end would be a better option.

My current 2012 Chrysler 300 was pre-owned (11000km) and has had more than its share of repairs (control arm on 3/4 wheels, alternator to name the most expensive). Initially my plan was to buy a 2012-2013 used vehicle, pay it off outright or very quickly and bank the monthly payment savings.

Except had I done that with my current vehicle and just bought it last month, I'd already be out several thousand dollars (almost a year of savings) from these kinds of surprises.

I'm considering leasing for a) lower monthly payment and b) if/when I decide to buy at the end, I know who drove it and what if anything has happened to the vehicle along the way.

Am I going to get totally robbed $ wise if I do this? I'd like to buy one and hang on to it for a while. Im going from the Chrysler to an SUV because I have a family now and I just need more room. Plus, I can't stand driving in Canadian winters without AWD. The Explorer seems to fit everything I want, plus I think they great.

However, the 2017 Escapes just came out and I understand the 17 Explorers aren't far behind?

Should I pursue to lease/buy option, finance one out of the gate or maybe even wait until the 17' models are available ?

Also, when is the Ford Employee Pricing thing happening , thats almost every summer it seems like? All the other dealers around here (JeepChrysler, Toyota, Kia etc) all have incentives and 0% on right now while ford has nothing yet.

Sorry for writing a short novel, but I'm trying to do the opposite of my last 3 vehicle purchases and make a smart decision here.

Thanks! Cheers

Jeremy

All I have to say if you're looking for a 2016, you better move quick because after last weekend, most of the ones I was eyeing were sold.

A friend explained it to me. He said, it's May and the school year is ending and a lot of families are buying because of the incentives so the choices are dwindling. I saw it happen over the last weekend and had to drive outside my county to score the exact vehicle I wanted today. Just sharing my experience.

 

[Mack674]

Sorry I meant 0 for 72 months. 6 years. I know Ford runs that special a couple times a year. I bought mine back in February and used a credit union and my rate is 1.9%. My dad bought his f-150 king ranch when they were running the special financing and he got 0% for 72 months. I wish I wasn't so impatient and could have waited for that.

I'm waiting on something similar as well. I'll look into some credit unions as well, havn't gone that route before. I've only ever shopped around a couple of banks and they'd rather set themselves on fire than lend anything at prime, let alone below it.

I'm likely going to wait for a 2017 at this point - the price different is negligible and someone else made a very good point about depreciation of a whole year already but paying full price.