igxqrrl

Pretty much the only relevant thing here is:

The right answer isn't among the three options listed. I'll give it anyway, even though it will sound preachy. The right answer is get off the hedonic treadmill. Sell all your cars, buy a used Civic, rent a truck when you really need one, get $10,000 in an emergency account, get your own place, and when you can buy a nicer car for cash while still saving for retirement, then do that. A friend who goes through cars and motorcycles every year once told me that if he had money, he'd buy a new Mercedes. I told him that the reason he'll never have money is because he buys a new car whenever he has any. He'll never retire, but at least he gets a crappy car every year. http://www.nbc.com/saturday-night-li...f/n12020?snl=1

Your best friend at the dealership is playing you. Others have pointed out the crappy lease deal you're being offered. There are so many rebates and monthly payment and downpayment and equity numbers being thrown around; nobody could make a wise decision based on that. If you have your heart set on the truck, do yourself a favor and sell the Mustang private party first.

Among the options you listed, since I'm sure my suggestion above rings hollow, keep your current car and buy the cheapest beater truck you can. And unless you're actually a millionaire, don't spend thousands of dollars modding it.

icecoldak

Sell the mustang on craigslist, you will get ton more for it than the dealership and get you a New 17 off the lot at a nice discount--you with all those "TOYS" need a truck for sure!!

ilkhan

I went from a '16 Mustang GT to a '17 F-150. With the 3.5EB the F-150 has *****, but its a VERY different driving experience. I've slowed down, and its not a bad thing. I miss the 'stang, but also like the truck.

FWIW I had financed the 'stang and leased the truck, so very similar situation. I love the Lariat, but consider an XLT for the lower payments.

joemomma22

I understand this. Ringing hollow is a good way to put it :P

Look i know i'm young but i'm doing alright. no college debt and kicking *** so far bustin my *** every day. I plan on making a six figure income within the next 3 years relatively easily, not that that matters too much to y'all. I've always been decent at handling my money. Not for nothing but i have my 10k emergency fund. my own place is next on the list, i already have a car and a monthly payment so increasing that monthly payment is hardly going to hinder me. That said i do value the opinion and definitely respect the mindset.

I dont know what kind of lease deals you guys expect to see its a crazy expensive truck (relative to other things). He shows me all the numbers while hes building it into the program. I have access to ford locator including the invoice numbers with old back and everything.

I've never sold a car with a note on it. A little hesitant about doin that tbh. Not sure if i'd be able to find a buyer either. Then again they say there's an *** for every seat right.

I dont know what kind of lease deals you guys expect to see its a crazy expensive truck (relative to other things). He shows me all the numbers while hes building it into the program. I have access to ford locator including the invoice numbers with old back and everything.


Getting a slightly used lariat is also an option here. Really not looking at the XLT at all at this point.

Could go for a 17 3.5 10 speed though i'd prefer the v8. why january? just because there will be more incentive as the 18s roll out? i do understand what you're saying here. im fine with my payments being anything up to 600/mo. but i just dont want to go XLT.

I think it makes a lot of sense in this application. i take money home with me. i get into a way more expensive truck, and i get a new one in 3 years.. whats not to like? at the end of the day why would it matter if i own the vehicle or not at the end of it? I dont see myself keeping a vehicle for that long anyway. isnt it better to take a loss of a $3000 downpayment on a new lease than being totally upside down on a purchase at the end of it or if i try to get out of it early?

joemomma22

i'm glad you understand haha. did you end up with a check for 9k when you traded for a lease?

J15

Look, you obviously feel proud and financially secure. That doesn’t change the numbers here. The fact that you’re talking about this deal in terms of monthly payments says you aren’t ready to be making decisions like this. You should be looking at total costs. You’re raising your monthly expenses to convert equity into sunk costs, with a five figure reduction in net worth. That’s a major red flag. If your job security turns to fairy dust and you’re hit with unexpected expenses, your emergency fund is wiped out, you owe $600/month on a truck you can’t sell, and you have no income. Alternatively, you can keep your dick in your pants, pay off the mustang, and wait a few years to pay cash for the truck you really want.

joemomma22

Ah. Now i see where you're coming from. And insults aside, i can respect that. I definitely am not looking at it that way at all because #1 im an optimist which ill admit is not a good reason but its true and #2 i just flat out dont see existential crisis happening to me in the next few years. i suppose no one sees it coming ahead of time though. Anyway i'm not looking at it in a way where ill ever need to sell the truck to escape a payment, i'm looking at it as 3 years from now getting a new truck.

Bare with me for a moment though, if i look at it from a total cost stand point and not a monthly payment stand point, how am i any less screwed leasing than purchasing when each of the respective terms end. At the end of a purchase i'd be left with a 0 equity less equipped (xlt as opposed to lariat) truck and another huge bill to get something new with more than likely an equal or higher payment than the lease.

Thats a fair way to view it, is it not?

SilverSurfer15

well, its not exactly that simple. See with a lease, you pay a down payment, you make your monthly payments. In your case, its about 24k dollars total.

So the question really is, if you bough a lariat for say 54k thousand dollars, kept it for 36 months, then traded it in on another new vehicle.... would you be ahead or behind the lease figures.

yes, the payment is higher but you don't money down and you receive more resale value. Assuming you are paying about 54k for this lease truck, you pay into 24k, that leaves a balance of 30k dollars. You could think of that as your trade value. Right now, NADA shows a 2015 lariat with 30k miles as being worth about 38-41k trade in. I'd take that with a grain of salt, and using a 2015 at this moment isnt the greatest comparison.

But lets say you even got 35-36k trade in for it at 36 months, thats 5-6k more at resale value vs the lease. So the real question is which one is cheaper over the 36 months.

The lease, assuming 3k down and 580 a month = $23,880

The financing, 0 down, 825 a month = $29,700

you paid 54k for the truck (hypothetically, this is just an example)

lease: 23,880 payments + 30,120 trade value = $54,000, leaving you with a balance of zero dollars.

finance: $54,000 - $29,700 payments = $24,300 owed on loan, $35,000 trade = $10,700 positive

you get $10,700 dollars back, but you overpaid during those 36 months by $5,820 ($29,700 - $23,880)

$10,700 - $5,820 = net savings of $4,880 on financing vs leasing.

Unless I missed something?

*Numbers are subject to change*

LariatInTheMud

I voted for trade in and finance XLT, but get lariat or platinum instead. Find a leftover lariat or platinum 2017 with 5.0 or 3.5. My local dealer is selling 2017 5.0 platinum for $49k, with positive equity you would be sitting pretty considering the truck on trade in would be a minimum of $44k if you had to dump it for financial reasons the next day. 0% financing would be the end game for me. I like to trade often and leasing would never work for me so I cannot recommend that.

joemomma22

Yes. You're missing the part where the truck is stickered at 64000 not 54000 and payment is 580 as mentioned. a 54k would (assumingly) lower my payment by 200. my payment would be 380

380x36 = 13680. not sure about the rest.


I guess a part you missed is that i can afford no more than $600/mo ( at the moment lol).

I COMPLETELY understand this. and i really like the way you've broken it down. much obliged.