Chuck Van

Why after talking to a car salesman do I feel like I need a shower....zeez and WHY are they pushing leasing over buying ??

Ok the one attached is with a Lariat at 1000.00 under invoice...buy clean deal
The other is a 2 and 3 yr lease with different deposits..so If I lease and pay aprox 500.00 a month plus my deposit im paying about 14k for 2 years, turn it in and I have ZERO
As opposed to buying at least I have a 2 yr old truck worth 40k ???

gregsf150stx

Leasing is a complex monster if you don't understand it. A dealer can trick you in a number of ways in a lease over plain-straight-out-numbers on a buy.

Leasing is just like renting the vehicle, and of course, at the end of the lease term, you have nothing, unless you buy it at the end of the lease term.

Quite honestly, you have not provided enough about the LEASE portion to determine if it is a good deal or not.
Is there an acquisition fee? What is the money factor? what is the residual value? Is there a disposition fee? Is there a dealer fee? Did the dealer figure in all the LEASE rebates?

P.S. NEVER sink a big deposit/down payment in a lease, because you're never going to own it (unless you buy it at lease end...and even then the residual value might be more than what you could have bought it used or at current market value).

Ricktwuhk

I think I said this all in your other post. You need to understand leasing cold - reading the links I provided gives you more insight.

Why are they pushing 2 or 3 year leases? Easy. They get a return customer in 2 or 3 years, or less if they buy you out.

Chuck Van

Ok I called him back:
NO Acqui. fee
375.00 turn in fee
money factor on 2 yr lease is .25% or .0001 / on 3yr is 1.25% or .00052
Residual is 65% on 2yr and 60% on 3yr
These are both 15k a yr leases
I still don't see how leasing can be better than buying this truck outright...pls enlighten me

KILOFINAL

Those residual numbers seem high to me. I'm assuming it's a closed end lease?

Chuck Van

Not sure what that means ? He said Ford sets those numbers ??

gregsf150stx

I think you probably should NOT lease at this point if you don't understand all the variables.

gregsf150stx

if residual values seem higher, you will pay LESS of a monthly payment, but you would have to made a higher down payment, and the residual value would be higher.
if the residual value is lower, you will pay MORE of a monthly payment, with a variable, and the residual value would be lower.

At least that was the way it was explained to me on my lease.

that money factor seems kind of low. Especially, since there is no acquisition fee. there has to be some trade-off. No acq. fee most always inflates the money factor (the dealer is going to get to back one way or another). A dealer typically CAN ADD anywhere from 1-2 points to the moneyfactor to add to their pockets.

gregsf150stx

If a money factor is expressed as a decimal (which is used most of the time to confuse people), multiply it times 2400.

For example. .00052 would equate to the ~ 1.25% in your example.

fordxlt

If you choose the 60month payments, after 24 payments of 1032.80 - you'd have paid 24878.20
You may have a truck worth 40000 at that time, but your remaining loan balance is $37398. For $2602 in equity you spent $10878.20 more than your leasing #'s (your $14000 number)
Why buy?