Lease Question

[socalsportgirl]

10K miles a year? That's 800 miles a month...200 miles a week. Unless its a second vehicle, what can you do with 200 miles a week? Wow...

It's actually 10,500, but I never use that many. I just replaced a 2010 Lexus RX and had 27,000 miles on it after 36 months, and that's the closest I've ever come. (The car before I turned in with 7k miles on it after 24 months!!). I currently drive 5 miles each way to work, so that's 50 miles per week. Even driving it around all weekend, I still don't get to 200 miles per week.

 

[77rednecktruck]

You must of had a lot of equity in the Jeep... Why not cash out?

Didn't want the hassle of a private sale and the jeep's selling price was around 27K in the market and Ford gave me 30K for it ( I am sure they screwed me somewhere else in the transaction but... ). I paid 37k for it 2 years ago and owed 21K on it. I am saving 270 a month over the Jeep per month with the Sport. That extra money can go to paying for a lot more toys And 270 a month over 3 years is almost 10K. That is a new dirtbike or quad and some gear for me

 

[peterk9]

10K miles a year? That's 800 miles a month...200 miles a week. Unless its a second vehicle, what can you do with 200 miles a week? Wow...

That's nothing. I've had mine 2 years now and have piled on 13000 km or 8078 miles. That averages out to 336 miles a month. When the lease is up in another 2 years, I expect to have around 16,000 miles on it given the current driving habit. FYI, I'm retired, don't travel (obviously) and live in a small town where I will quite often walk to stores etc if the weather is nice. If it wasn't for the fact that I coach a minor hockey team and have to travel into the city once a week or so, there would be even less mileage on it. That is one reason I'm contemplating possibly buying it out at lease end. Of course that depends on what is available at the time or what kind of deal I can get when that time comes.

Peter

 

[twinturbo]

Didn't want the hassle of a private sale and the jeep's selling price was around 27K in the market and Ford gave me 30K for it ( I am sure they screwed me somewhere else in the transaction but... ). I paid 37k for it 2 years ago and owed 21K on it. I am saving 270 a month over the Jeep per month with the Sport. That extra money can go to paying for a lot more toys And 270 a month over 3 years is almost 10K. That is a new dirtbike or quad and some gear for me

I had about 11k in equity on my car before the sport. Sold it private.... big pain in the ass but i pocketed an extra 4k over the dealers trade. Put the money in the I need wedding money account.

 

[77rednecktruck]

I had about 11k in equity on my car before the sport. Sold it private.... big pain in the ass but i pocketed an extra 4k over the dealers trade. Put the money in the I need wedding money account.

Yea, I did the "I need wedding money" thing almost 14 years ago. Good luck!!!

I couldn't sell the jeep for what the dealer gave me for it. It is on the lot for $800 more than the trade in value.

 

[Tuftyconch]

Lease 2014 Limited

New member to the forum. I hope to be an owner by this weekend. I tried to do a search for a related thread and did not locate one. If I am posting out of line, please forgive this newbie.

I was considering a lease for the first time. I must admit that leasing is a new concept to me. Also, I do not have many details, but I am requesting that from the dealer. I was hoping that a seasoned vet could point me down right path.

A southern California dealer quoted a lease payment of $620 month (which includes taxes of 8%) for 36 months with 15,000 miles for an Explorer Limited that has a MSRP of $44,000. Finally, that is with no money down. Does this have the sounds of a fair deal?


Thanks!

 

[blwnsmoke]

Considering I'm paying $658 a month to own it at 2.95% interest, I'd say no but that is just me. 1 difference is there is no sales tax in my state to be fair.

 

[NEWPORTNJ]

If that is a ltd 302a pkg with 0 out of pocket and 15k miles yes that is a great deal. To pay $ 658 per month on a purchase again depending what pkg you had to come with some nice money out of pocket. So the lease sound good to me..! IF ITS A LTD WITH ALL BELLS AND WHISTLE.. YOU HAVE LTD MISSING ALL BELL AND WHISTLES..!

 

[peterk9]

New member to the forum. I hope to be an owner by this weekend. I tried to do a search for a related thread and did not locate one. If I am posting out of line, please forgive this newbie.

I was considering a lease for the first time. I must admit that leasing is a new concept to me. Also, I do not have many details, but I am requesting that from the dealer. I was hoping that a seasoned vet could point me down right path.

A southern California dealer quoted a lease payment of $620 month (which includes taxes of 8%) for 36 months with 15,000 miles for an Explorer Limited that has a MSRP of $44,000. Finally, that is with no money down. Does this have the sounds of a fair deal?


Thanks!

Welcome to the Forum Tuftyconch.:wavey:
There are a few threads on leasing that you might want to check out.
I will move your post to one of them;

http://www.explorerforum.com/forums/showthread.php?t=381950&highlight=leasing

I'm on my 5th leased vehicle and will likely do it again when my 48 month lease is up in March 2015. I sometimes look at it as a 4 year test drive that gives me the option to buy it or turn it back at lease end. As well, with a lease you don't pay taxes on the entire value of the vehicle. Just on your monthly payment.

Peter

 

[Tuftyconch]

Peterk9 - glad to be here and thanks for helping me.

Newportnj - it is the 301a package with the sunroof addon. Appreciate the feed back.

 

[blwnsmoke]

If that is a ltd 302a pkg with 0 out of pocket and 15k miles yes that is a great deal. To pay $ 658 per month on a purchase again depending what pkg you had to come with some nice money out of pocket. So the lease sound good to me..! IF ITS A LTD WITH ALL BELLS AND WHISTLE.. YOU HAVE LTD MISSING ALL BELL AND WHISTLES..!

Now that I think about it, I financed a little over $40k on a mid $43k vehicle. Mine was a loaded 302a 4wd with every option but DVD, bucket seats and center console. I believe msrp was around $48k.

Still, with the OP at a $44k msrp, that means $40-41k invoice which is about the exact price I loaned out for. I still would not pay $50 less a month for a lease.

Edited: I have credit unions around me right now offering 6 year loans at 1.99% interest. A $41,000 loan (easily achievable on a $44k MSRP at 1.99% for 6 years is $604.59 per month. Why lease when you can loan for the same payment (excluding taxes) with no money down? If you were saving $150 a month, then I could see it.

 

[Tuftyconch]

Good point! California loves their taxes and that increases the price a bit.

 

[peterk9]

Now that I think about it, I financed a little over $40k on a mid $43k vehicle. Mine was a loaded 302a 4wd with every option but DVD, bucket seats and center console. I believe msrp was around $48k.

Still, with the OP at a $44k msrp, that means $40-41k invoice which is about the exact price I loaned out for. I still would not pay $50 less a month for a lease.

Edited: I have credit unions around me right now offering 6 year loans at 1.99% interest. A $41,000 loan (easily achievable on a $44k MSRP at 1.99% for 6 years is $604.59 per month. Why lease when you can loan for the same payment (excluding taxes) with no money down? If you were saving $150 a month, then I could see it.

Another thing I like about a lease is that I saved $3340 in taxes. I also like to get a new vehicle every 3 - 4 years. The current interest rate on purchase is 4.99% at Ford Canada. The bank isn't much cheaper. My lease is 3.49%. If I don't happen to like the vehicle or it has proven troublesome, I can just turn it in and walk away.
I understand that there are people who will never lease, I thought I was one of them at one time. Now I don't think I'd ever do anything except lease.
To each his own.

Discussions on lease vs buy are like opinions on tires, oil changes etc.

Peter

 

[blwnsmoke]

Peter, I've actually leased a few times and believe it is good for certain circumstances. However a lease payment should never be close to a loan payment. You should be able to sell your 3 year old vehicle and be ahead of the game with a really low interest rate. Where as when you lease, you walk away.

I currently owe $24k on my Ex after 2 years and 3 months. I think I could sell my Ex for more then 24k so I'd be ahead of the game as I continue to pay it off. If I had a 3yr lease at approximately the same payment, I'd be walking away with nothing.

Not trying to knock the whole leasing thing. The only point I was trying to make is that a low $600 payment on a $40-41k car I feel is way too high when you can loan for just a little more.

I was incorrect on the bank term.. I just checked my local credit union and they are running 1.99% for 66 months. A damn good rate!! Credit Unions at least in the states are generally the cheapest you can get unless Ford is running a 0% offer.

 

[socalsportgirl]

New member to the forum. I hope to be an owner by this weekend. I tried to do a search for a related thread and did not locate one. If I am posting out of line, please forgive this newbie.

I was considering a lease for the first time. I must admit that leasing is a new concept to me. Also, I do not have many details, but I am requesting that from the dealer. I was hoping that a seasoned vet could point me down right path.

A southern California dealer quoted a lease payment of $620 month (which includes taxes of 8%) for 36 months with 15,000 miles for an Explorer Limited that has a MSRP of $44,000. Finally, that is with no money down. Does this have the sounds of a fair deal?


Thanks!

Tufty, you may want to get a quote from the Internet guys at South Bay Ford. They gave me the best deal by a mile on my 2013 Explorer Sport. Sticker was around $52k and I pay nothing down and $580/mo including tax.

 

[NEWPORTNJ]

Im with peterk9, i have been leasing since 1998 because i like a new car every 3 years and thanks to leasing i have been able to walk away from two terrible cars from ford 1 windstar, 2 freestyle wow those were two horrible vehicles..!

 

[blwnsmoke]

Tufty, you may want to get a quote from the Internet guys at South Bay Ford. They gave me the best deal by a mile on my 2013 Explorer Sport. Sticker was around $52k and I pay nothing down and $580/mo including tax.

Now that is a good deal.... what is the mileage allowance? 3 year?

 

[lraia]

I pay $650.00 a month on a 2013 Sport w/401A, sunroof, adaptive cruise, tow package, roof rack crossbars and 2nd row buckets ($50,005 msrp), with 13,500 miles a year for 24 months. Sign and drive, x plan + WearCare (up to $2,500 repairs at lease end) + tire care warranty.

 

[steve04KU]

My 36 month lease is $424 a month.

$6,000 on a trade to help out on the sticker price.

 

[Tuftyconch]

Thanks all for the input. We pulled the trigger on a 2014 last night. After haggling for a bit I was able to finance the explorer for 6 years at a cheaper payment with 6 year Ford premium warranty cheaper than a 36 month lease.