General Leasing Questions?
04-16-2018, 10:17 PM
#1
Senior Member
Thread Starter
General Leasing Questions?
I know where this thread has the potential to go south so ground rules first.
1. No lease versus buy discussions. I have specific reasons for considering a short term lease and it will probably be the only lease in my lifetime.
2. Please stick to the topic using actual experiences.
I am looking for the feasibility of the following closed end lease with $0 capital cost reduction, minimal or no acquisition and disposition fees, 24 month (preferred) or 36 month term and 15000 miles per year. I considered 12000 miles per year, but the numbers are unfavorable for my wife's driving patterns. My vehicles are always in above average condition so it does not make sense to pay a disposition fee when every car/truck that I have traded did not require any reconditioning. My credit score is well above 800.
The difference between the average "good" condition 3 year old vehicle value from NADA and KBB using 36,000 and 45,000 miles equates to about $0.035/mile. It appears that most lease mileage charges are $0.15 to $0.20/mile for lease returns.
Questions:
1. How hard is it to negotiate a $0 cap reduction lease with minimal fees using captive "manufacturer" leasing? I already know of a few third party companies that negotiate these deals independently for a small fee.
2. If my wife is the primary driver, does it matter if the lease is in my name?
3. Can I just sell the vehicle at lease end to CarMax and avoid all the lease turn-in headaches? This assumes it is advantageous between buying outright or selling to CarMax.
4. When you change the mileage terms from 12,000 to 15,000 miles do they apply a mileage fee or a lower residual value?
1. No lease versus buy discussions. I have specific reasons for considering a short term lease and it will probably be the only lease in my lifetime.
2. Please stick to the topic using actual experiences.
I am looking for the feasibility of the following closed end lease with $0 capital cost reduction, minimal or no acquisition and disposition fees, 24 month (preferred) or 36 month term and 15000 miles per year. I considered 12000 miles per year, but the numbers are unfavorable for my wife's driving patterns. My vehicles are always in above average condition so it does not make sense to pay a disposition fee when every car/truck that I have traded did not require any reconditioning. My credit score is well above 800.
The difference between the average "good" condition 3 year old vehicle value from NADA and KBB using 36,000 and 45,000 miles equates to about $0.035/mile. It appears that most lease mileage charges are $0.15 to $0.20/mile for lease returns.
Questions:
1. How hard is it to negotiate a $0 cap reduction lease with minimal fees using captive "manufacturer" leasing? I already know of a few third party companies that negotiate these deals independently for a small fee.
2. If my wife is the primary driver, does it matter if the lease is in my name?
3. Can I just sell the vehicle at lease end to CarMax and avoid all the lease turn-in headaches? This assumes it is advantageous between buying outright or selling to CarMax.
4. When you change the mileage terms from 12,000 to 15,000 miles do they apply a mileage fee or a lower residual value?
04-18-2018, 12:48 AM
#2
I know where this thread has the potential to go south so ground rules first.
1. No lease versus buy discussions. I have specific reasons for considering a short term lease and it will probably be the only lease in my lifetime.
2. Please stick to the topic using actual experiences.
I am looking for the feasibility of the following closed end lease with $0 capital cost reduction, minimal or no acquisition and disposition fees, 24 month (preferred) or 36 month term and 15000 miles per year. I considered 12000 miles per year, but the numbers are unfavorable for my wife's driving patterns. My vehicles are always in above average condition so it does not make sense to pay a disposition fee when every car/truck that I have traded did not require any reconditioning. My credit score is well above 800.
The difference between the average "good" condition 3 year old vehicle value from NADA and KBB using 36,000 and 45,000 miles equates to about $0.035/mile. It appears that most lease mileage charges are $0.15 to $0.20/mile for lease returns.
Questions:
1. How hard is it to negotiate a $0 cap reduction lease with minimal fees using captive "manufacturer" leasing? I already know of a few third party companies that negotiate these deals independently for a small fee.
2. If my wife is the primary driver, does it matter if the lease is in my name?
3. Can I just sell the vehicle at lease end to CarMax and avoid all the lease turn-in headaches? This assumes it is advantageous between buying outright or selling to CarMax.
4. When you change the mileage terms from 12,000 to 15,000 miles do they apply a mileage fee or a lower residual value?
1. No lease versus buy discussions. I have specific reasons for considering a short term lease and it will probably be the only lease in my lifetime.
2. Please stick to the topic using actual experiences.
I am looking for the feasibility of the following closed end lease with $0 capital cost reduction, minimal or no acquisition and disposition fees, 24 month (preferred) or 36 month term and 15000 miles per year. I considered 12000 miles per year, but the numbers are unfavorable for my wife's driving patterns. My vehicles are always in above average condition so it does not make sense to pay a disposition fee when every car/truck that I have traded did not require any reconditioning. My credit score is well above 800.
The difference between the average "good" condition 3 year old vehicle value from NADA and KBB using 36,000 and 45,000 miles equates to about $0.035/mile. It appears that most lease mileage charges are $0.15 to $0.20/mile for lease returns.
Questions:
1. How hard is it to negotiate a $0 cap reduction lease with minimal fees using captive "manufacturer" leasing? I already know of a few third party companies that negotiate these deals independently for a small fee.
2. If my wife is the primary driver, does it matter if the lease is in my name?
3. Can I just sell the vehicle at lease end to CarMax and avoid all the lease turn-in headaches? This assumes it is advantageous between buying outright or selling to CarMax.
4. When you change the mileage terms from 12,000 to 15,000 miles do they apply a mileage fee or a lower residual value?
1. Yes, you can structure your lease any way you want, including “Sign & Drive” which would be nothing out of pocket at drive-off. I tend to do 0 down,+TTL on drive-off on my leases to keep the monthly’s just a bit lower.
2. Either can drive, any amount of miles. I have 3 leases in my name. My wife and kids drives them all. Insurance will need to be in Lease signers name.
3. You can certainly sell it to CarMax, but keep in mind the leasing company will set residuals that are very favorable for the leasee. So typically the value of the vehicle at the end of the lease will actually be less than the buy out. It does happen where there is equity, but not very often, especially with Half Tons. Also, I have heard/read that Carmax has a very difficult time, particularly with Ford financial, buyout on Leases.
4. Yes the residual value is based on the mileage. It is set in stone by the leasing company, and changes from month-to-month. Is also based on your region/location, model, and specs. Typically 4x4's will actually lease cheaper than 4x2. Crew Cabs and Eco engines will also usually lease better. XLT's usually is the best leasing trim, however this month "April", the number are better on XL/STX's in most regions (rarely happens). Also don’t count out the lower mileage leases. My current lease is 10.5 K miles, but I know I will drive 12K, knew that going in. The Ford over mileage fee is $.25 per mile, that is non-negotiable. So if I end up driving the 12K miles a year, on my 24 month lease, I will owe $750. If I had signed a 12K lease when I initially signed up, I would’ve paid $540 over the course of the 24 month lease. Basically saving $210. BUT,If I don’t end up driving those extra miles, crash the truck, or Ford offers an "early bird" turn in, I just saved $540, or more than one full lease payment. Plus, the last couple for leases when we called Ford Financial, at the end of the lease, Ford refunded $250 in overage mileage fee's. So it was no brainer to go with 10.5k.
I would start out by doing some research on the leasehackr forum, and searching F-150 recent deals. Then head over to the Edmunds F150 lease forum, and request the Money Factor and Residual value rates for your Region/zone. Finally, go to the Ford website and build out a truck you might be interested in. On the final page you will enter in your ZIP Code, then click on the Lease Tab, and you will see the incentives available to you in your region. With that information you can at least get a good start, and using a lease calculator, what you can expect to pay. Leasing can be tricky and addicting, but you really need to know what your doing to get the best deal. One very generic, but useful thing you should shoot for is try and be under the "1% Rule". Your payment, (after ALL taxes and Fee's included) be under 1% of MSRP. ($50k msrp truck=under $500 Payment, etc). I tend to negotiate hard, sometime months on my leases, and shoot for .07% or under. Not a bad idea to consider a "Lease Broker" for your first couple of leases, they are readily available on the Leasehackr site, and only cost $150-200, but can save you thousands.
Last edited by XBeatzX; 04-18-2018 at 01:16 AM.
The following users liked this post:
GMC to Ford (04-18-2018)