Edgieguy Posted December 3, 2007 Report Share Posted December 3, 2007 (edited) HELP Would like some opinions on this offer from my local dealer. We priced a 2008 FWD limited in White Sand, with 18" wheels, BAMR, Cargo mngt, and Sirius radio. (NO NAV or Power liftgate) MSRP is $33570.00 XPLan is $31813.49. Were getting $1750 in rebates. Were getting offered a lease of 12.5K per year for three years for aprox $415/month. With a decent trade in on my 2005 Escape XLT with 33K miles I can reduce that amount to close to $290. In any case, Im wondering if it makes sense to enter into a three year lease with the intention of buying out the lease in three years. The cost at that point would be $16785.00 Right now FORD is only offering me 5.9% financing currently and my local credit union is coming in at 4.9% so the lease to buy seems worth it to me, AM I MISSING SOMETHING HERE???? Edited December 3, 2007 by Edgieguy Quote Link to comment Share on other sites More sharing options...
Hardhawk Posted December 3, 2007 Report Share Posted December 3, 2007 HELP Would like some opinions on this offer from my local dealer. We priced a 2008 FWD limited in White Sand, with 18" wheels, BAMR, Cargo mngt, and Sirius radio. (NO NAV or Power liftgate) MSRP is $33570.00 XPLan is $31813.49. Were getting $1750 in rebates. Were getting offered a lease of 12.5K per year for three years for aprox $415/month. With a decent trade in on my 2005 Escape XLT with 33K miles I can reduce that amount to close to $290. In any case, Im wondering if it makes sense to enter into a three year lease with the intention of buying out the lease in three years. The cost at that point would be $16785.00 Right now FORD is only offering me 5.9% financing currently and my local credit union is coming in at 4.9% so the lease to buy seems worth it to me, AM I MISSING SOMETHING HERE???? You will pay $595 for the acquisition fee up front and then there is usually a $250 purchase fee at the end if you buy the Edge. Weigh that against the interest rate savings for the first 3 years if your lease interest rate is less than the 4.9%. My lease interest rate was 2%. We don't plan on buying at the end of the lease. If your long range plan is to buy it any way, I would probably go ahead and buy it now. I asume that you get the same rebates for a purchase as a lease? It all boils down to doing the math. Rarely is a lease then purchase cheaper than a sale up front, but there are exceptions. Good luck. Quote Link to comment Share on other sites More sharing options...
akirby Posted December 3, 2007 Report Share Posted December 3, 2007 I think there is a bigger rebate for leasing right now but that is offset some by the additional fees. The other gamble is that you can get 4.9% today, but you don't know what you could get 3 years from now if you have to finance the buyout. Personally - unless you need the lower lease payment right now I'd bite the bullet and purchase it with the 4.9% financing. Even if it costs a little more you'll have a lot more flexibility in case something happens or you decide to do something different down the road. Quote Link to comment Share on other sites More sharing options...
Edgieguy Posted December 3, 2007 Author Report Share Posted December 3, 2007 I think there is a bigger rebate for leasing right now but that is offset some by the additional fees. The other gamble is that you can get 4.9% today, but you don't know what you could get 3 years from now if you have to finance the buyout. Personally - unless you need the lower lease payment right now I'd bite the bullet and purchase it with the 4.9% financing. Even if it costs a little more you'll have a lot more flexibility in case something happens or you decide to do something different down the road. You know, Ive considered this both ways and heres how it weighs out to me: Leasing: Pro 1.2% interest during lease. (So im getting a super low finance charge in my eyes) In three years I can easily set aside money toward buy out price. If we change our mind about the truck in three years I can give it back. CONS Not sure of buy out fee's (ill have to ask) Not sure if My insurance will be more expensive since im in NJ (highest insurance in nation) and its a LEASE buy out is 50% of MSRP not XPlan $16785.00 vs $ $15906.75 Buying: PRO Its mine. Well its the banks then its mine. insurance may be cheaper? not sure Con Higher monthly payment Higher interest rates for at least the first three years of ownership If I hate it after three years I have to find someone to give me at least 50% of its value If im not missing anything in all the fine print, it seems like there might be a slight benefit to leasing to buy. I hope im not confusing myself here.... Quote Link to comment Share on other sites More sharing options...
Grey Posted December 3, 2007 Report Share Posted December 3, 2007 At the end of 3 years on a lease, you can easily determine if the vehicle is worth more than the buy out price (even with the $250 fee). If it is not and you don't want a three year old vehicle, turn it in. If you have maintained the vheicle, it still looks good and it is worth more than the buy out price, buy it. Keep it if you want, or sell it/trade it in on another vehicle. If you think through your options at that time, you can maximize your cost savings at that time. As you said, the low interest rate is a great deal for the next three years, regardless of whether you turn it in or buy it out. Quote Link to comment Share on other sites More sharing options...
Edgieguy Posted December 4, 2007 Author Report Share Posted December 4, 2007 At the end of 3 years on a lease, you can easily determine if the vehicle is worth more than the buy out price (even with the $250 fee). If it is not and you don't want a three year old vehicle, turn it in. If you have maintained the vheicle, it still looks good and it is worth more than the buy out price, buy it. Keep it if you want, or sell it/trade it in on another vehicle. If you think through your options at that time, you can maximize your cost savings at that time. As you said, the low interest rate is a great deal for the next three years, regardless of whether you turn it in or buy it out. The more I figure this, the more it makes sense. Dealer even told me he made a mistake and that during the lease period the interest rate will be 1.5% not 1.9%. Im going to lease and probably buy the Edge after. Now we just need to get a good trade in on the 05 Escape. Thanks to all for the help thinking Quote Link to comment Share on other sites More sharing options...
snowy_edge Posted December 5, 2007 Report Share Posted December 5, 2007 Can you tell me how you are getting $ 1750 in rebates ? Here is my lease deal 2008 Edge Fwd LIMITED Here are the details of lease term :- 2008 limited with :- Panoramic Vista Roof Power Liftgate Sirius Satellite Radio Rear Cargo Management System All weather mats TOTAL MSRP $33,225.00 ...... Edmunds Invoice is $31,100 on this ( does not include ad fee ). X-plan price $31,500 Take $1000 off beacuse of ford lease offer prog. Ford Credit charges a $595 acquisition fee on every vehicle that it leases. * $0 down. With X-plan there is no document fee. I am in South Carolina & have to pay only $300 sales tax. Tag & title $ 39 *36 months ..................15K miles / year *50% Residual Value. *2% lease rate aka money factor M...Payment $460.76 I doubt I can do better than this. Quote Link to comment Share on other sites More sharing options...
07 MKX Posted December 5, 2007 Report Share Posted December 5, 2007 Different incentive's for different areas Quote Link to comment Share on other sites More sharing options...
akirby Posted December 5, 2007 Report Share Posted December 5, 2007 With X-plan there is no document fee. Make that used to be no document fee. Now they can charge up to $75. Quote Link to comment Share on other sites More sharing options...
snowy_edge Posted December 5, 2007 Report Share Posted December 5, 2007 Make that used to be no document fee. Now they can charge up to $75. WOW ! I told my dealer no doc fee with X-plan & erased doc fee in 1 sec. LOL Quote Link to comment Share on other sites More sharing options...
Edgieguy Posted December 5, 2007 Author Report Share Posted December 5, 2007 Can you tell me how you are getting $ 1750 in rebates ? $1000 from FORD at the Dealership plus I got a Coupon in the mail worth $750 toward any new ford (Excluding the GT40, GT500, and Escape Hybrids) Quote Link to comment Share on other sites More sharing options...
snowy_edge Posted December 6, 2007 Report Share Posted December 6, 2007 Can you tell me how you are getting $ 1750 in rebates ? $1000 from FORD at the Dealership plus I got a Coupon in the mail worth $750 toward any new ford (Excluding the GT40, GT500, and Escape Hybrids) Coupon in the mail worth $750 ? WOW ! My mailbox is not so generous...lol Quote Link to comment Share on other sites More sharing options...
akirby Posted December 6, 2007 Report Share Posted December 6, 2007 WOW ! I told my dealer no doc fee with X-plan & erased doc fee in 1 sec. LOL Well they still can't charge the full doc fee plus the dealers may not even be aware of the change. I'm still trying to figure out why they made that change - $75 hardly seems worth the trouble. Quote Link to comment Share on other sites More sharing options...
ARBO Posted December 9, 2007 Report Share Posted December 9, 2007 We leased our 07 SEL AWD, first time ever leased. I don't usually keep cars long anyway and got a great lease deal. Anyway, my thoughts are this, on leasing an Edge. Ford thinks my Edge will be worth 22K at lease end, I'm thinking not, and will possibly make an offer to keep it. We love the car. My thought about the buy off of 22K being off is, the market is getting filled up with rental returns already. By 2009 when my lease ends, I'm expecting the car won't be worth what they thought at lease time. We'll see. Quote Link to comment Share on other sites More sharing options...
akirby Posted December 9, 2007 Report Share Posted December 9, 2007 We leased our 07 SEL AWD, first time ever leased. I don't usually keep cars long anyway and got a great lease deal. Anyway, my thoughts are this, on leasing an Edge. Ford thinks my Edge will be worth 22K at lease end, I'm thinking not, and will possibly make an offer to keep it. We love the car. My thought about the buy off of 22K being off is, the market is getting filled up with rental returns already. By 2009 when my lease ends, I'm expecting the car won't be worth what they thought at lease time. We'll see. You can't negotiate the buyout of your leased vehicle. You either pay the price in the lease or walk away - no choice. Many LS owners tried to do this when their vehicles were worth far less than the residual and Ford said no - they can't afford to individually negotiate each lease buyout. Quote Link to comment Share on other sites More sharing options...
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