PCM Posted October 10, 2009 Report Share Posted October 10, 2009 Ford released a 27mo lease program on Edge. $3500 rebate and a lease factor of .5! I am picking one up today $1500 down, 15k miles, $463 including tax on a 32k SEL. Buying on Xplan. Quote Link to comment Share on other sites More sharing options...
Sparky Posted October 10, 2009 Report Share Posted October 10, 2009 Ford released a 27mo lease program on Edge. $3500 rebate and a lease factor of .5! I am picking one up today $1500 down, 15k miles, $463 including tax on a 32k SEL. Buying on Xplan. Leasing is waste of money...after the term you have nothing and you have to spent more to keep going or get something new again. Bad idea. Quote Link to comment Share on other sites More sharing options...
tpm419419 Posted October 10, 2009 Report Share Posted October 10, 2009 I always lease my vehicles. Have been doing it since the early '90's. Before that I had purchased several NEW cars over the years and had always sold or traded them in for a loss. For me, someone always wanting the latest models. Leasing works for me Quote Link to comment Share on other sites More sharing options...
Grey Posted October 10, 2009 Report Share Posted October 10, 2009 (edited) Leasing is waste of money...after the term you have nothing and you have to spent more to keep going or get something new again. Bad idea. Leasing can be great if you know what you are doing. Often there are special rates and added incentives but you have to know what to ask for. We leased our MKX and then bought it at the end of the lease. Had there been any issues or concerns, we could have turned it in and walked away. As it turned out, the car is perfect, and worth more than the buy-out price. I will find out more about leasing next week from FMCC execs. If there are interesting developments, I'll report back. Edited October 11, 2009 by Grey Quote Link to comment Share on other sites More sharing options...
flyerjmr33 Posted October 10, 2009 Report Share Posted October 10, 2009 I think leasing is an outstanding way for me to get a 1-2 year old vehicle with low mileage. I just buy what is available as used that was on a lease! :happy feet: I just bought a 2008 Limited for a great price! It had 16,500 miles on it and all the stuff I wanted! Quote Link to comment Share on other sites More sharing options...
anglwngss Posted October 10, 2009 Report Share Posted October 10, 2009 Leasing worked great in the past when I was unable to afford monthly payments on purchasing the vehicle I wanted. After the lease was over, I financed the rest and bought the vehicle. Quote Link to comment Share on other sites More sharing options...
PCM Posted October 11, 2009 Author Report Share Posted October 11, 2009 Leasing is waste of money...after the term you have nothing and you have to spent more to keep going or get something new again. Bad idea. Really, because the purchase payment would have been 50-80/mo higher and most likely would not be able to get out of it in 2yrs. Thanks for the input, but I was a manager for Ford for years and I am a firm believer in the short term lease. Using your theory of nothing to show for it..... The 27mo residual is 50%, and I don't think you would have anything to show for it if you were buying after 24-36mo. I like something new every 2-3 yrs and this is the best way to protect myself. Quote Link to comment Share on other sites More sharing options...
akirby Posted October 12, 2009 Report Share Posted October 12, 2009 It's not the fact that it's a lease - a lease is just another way of financing. Whether you lease or buy and sell after 2-3 years you're still paying depreciation and it's the depreciation during the first 2-3 years that's the killer. If you want a new car every 2-3 years and you don't mind paying for it then leasing is for you. But it will always be cheaper in the long run to buy a vehicle and keep it for 5-6 years or longer. Quote Link to comment Share on other sites More sharing options...
PCM Posted October 12, 2009 Author Report Share Posted October 12, 2009 It's not the fact that it's a lease - a lease is just another way of financing. Whether you lease or buy and sell after 2-3 years you're still paying depreciation and it's the depreciation during the first 2-3 years that's the killer. If you want a new car every 2-3 years and you don't mind paying for it then leasing is for you. But it will always be cheaper in the long run to buy a vehicle and keep it for 5-6 years or longer. True in what you say, but 80% of the people out there trade before paying off. I really don't see the benefit of paying a vehicle for 5-6yrs with payments totalling $34-36K to have a vehicle worth $10k, no warranty, and now way behind in technology. Most people do not desire a lease because they have been burned in one prior. Many dealers love to slam someone in a 48-60mo lease because it meets their desired payments, and I think that is what most are referring to as a waste of money (and I agree). But when I can drive something for less than it would cost monthly to own, not worry about being negative in 2 yrs, and have plenty of options in 2yrs, then I would say that leasing works for me. I have seen too many people angry at being negative making almost 36 payments at 0%, because the current model has very hefty rebates, or a change in body has depreciated the model further. Quote Link to comment Share on other sites More sharing options...
akirby Posted October 12, 2009 Report Share Posted October 12, 2009 True in what you say, but 80% of the people out there trade before paying off. I really don't see the benefit of paying a vehicle for 5-6yrs with payments totalling $34-36K to have a vehicle worth $10k, no warranty, and now way behind in technology. Most people do not desire a lease because they have been burned in one prior. Many dealers love to slam someone in a 48-60mo lease because it meets their desired payments, and I think that is what most are referring to as a waste of money (and I agree). But when I can drive something for less than it would cost monthly to own, not worry about being negative in 2 yrs, and have plenty of options in 2yrs, then I would say that leasing works for me. I have seen too many people angry at being negative making almost 36 payments at 0%, because the current model has very hefty rebates, or a change in body has depreciated the model further. Leasing works for many people. It does have the advantage of a fixed depreciation estimate that's not subject to market changes. All things being equal (which never happens) there should be no difference between leasing for 36 months or buying and then trading in after 36 months. Any extra cost for the purchase option should be reflected in the vehicle equity. In the past mfrs would subsidize leases more than purchases because they knew they'd be back for another vehicle in 2-3 years, but that backfired when used car values dropped like a rock last year. If you're not going to pay off the vehicle and keep it for a year or two at least, then leasing might be the better option. Although you have more options when purchasing as far as getting rid of the vehicle early. The key is to treat a lease as another form of financing and do the comparison based on your situation and don't look at just the monthly payments. Quote Link to comment Share on other sites More sharing options...
PCM Posted October 13, 2009 Author Report Share Posted October 13, 2009 Leasing works for many people. It does have the advantage of a fixed depreciation estimate that's not subject to market changes. All things being equal (which never happens) there should be no difference between leasing for 36 months or buying and then trading in after 36 months. Any extra cost for the purchase option should be reflected in the vehicle equity. In the past mfrs would subsidize leases more than purchases because they knew they'd be back for another vehicle in 2-3 years, but that backfired when used car values dropped like a rock last year. If you're not going to pay off the vehicle and keep it for a year or two at least, then leasing might be the better option. Although you have more options when purchasing as far as getting rid of the vehicle early. The key is to treat a lease as another form of financing and do the comparison based on your situation and don't look at just the monthly payments. Agreed, and don't lease for any term longer than 36mo. Quote Link to comment Share on other sites More sharing options...
tpm419419 Posted October 13, 2009 Report Share Posted October 13, 2009 Agreed, and don't lease for any term longer than 36mo. I lease for 36-39 months only. Mainly because of fords 36,000 bumper to bumper warranty. Wish they would increase it like the other companies have. Quote Link to comment Share on other sites More sharing options...
akirby Posted October 13, 2009 Report Share Posted October 13, 2009 I lease for 36-39 months only. Mainly because of fords 36,000 bumper to bumper warranty. Wish they would increase it like the other companies have. Who has a longer B2B warranty outside of premium mfrs? Remember the powertrain is 5/60K. Quote Link to comment Share on other sites More sharing options...
Grey Posted October 13, 2009 Report Share Posted October 13, 2009 I will find out more about leasing next week from FMCC execs. If there are interesting developments, I'll report back. Ford Motor Credit Manager said there are now special lease deals for 39 months on Focus SE, Fusion SE. Escape XLT, Edge and Flex. If you are shopping one of these vehicles, and they have quoted you a vehicle price, ask your dealership to figure out what a 39 month lease would run based on the price quoted. It might be far less than you would expect. The down payment they will ask for is negotiable - ie, if they would give you $1,000 off MSRP on a purchase, ask for the same $1,000 off the down payment on the lease. :shades: Quote Link to comment Share on other sites More sharing options...
PCM Posted October 14, 2009 Author Report Share Posted October 14, 2009 Ford Motor Credit Manager said there are now special lease deals for 39 months on Focus SE, Fusion SE. Escape XLT, Edge and Flex. If you are shopping one of these vehicles, and they have quoted you a vehicle price, ask your dealership to figure out what a 39 month lease would run based on the price quoted. It might be far less than you would expect. The down payment they will ask for is negotiable - ie, if they would give you $1,000 off MSRP on a purchase, ask for the same $1,000 off the down payment on the lease. :shades: They have been running 39mo lease programs on these vehicles for months now (I priced all summer), and the new program is the 27mo. Suprised that your Ford Exec's did not mention this to you. :shades: Compare the two programs if anyone is considering. The new 27mo program beat the previous 39mo quote by $30/mo that I had received in August. I would think that everyone knows that down payments negotiable I lease for 36-39 months only. Mainly because of fords 36,000 bumper to bumper warranty. Wish they would increase it like the other companies have. Even if they did, FMCC is not a big fan of anything longer than 39mo's. Quote Link to comment Share on other sites More sharing options...
tpm419419 Posted October 14, 2009 Report Share Posted October 14, 2009 I have 12 more months to go. I hope these nice lease incentives will be around next year at this time Quote Link to comment Share on other sites More sharing options...
PCM Posted October 14, 2009 Author Report Share Posted October 14, 2009 I have 12 more months to go. I hope these nice lease incentives will be around next year at this time You should get a quote now. Besides this program, there is also RCL Lease Cash of an additional $1250 for returning lease customers. If I was a Lease to Lease customer, I would have had $4750 in Rebate on my current lease. That is a very large Rebate amount for a current/new model. Keep in mind rebates are regional and vary, but this was my case in FL. Dealers are being very agressive on the discout side, plus all of the incentives make it very attractive. Quote Link to comment Share on other sites More sharing options...
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