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Does leasing make more sense??

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WuNgUn

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Actually he was talking about trading in on a lease, not trading in a lease.
I think that's what he meant when he said equity. The trade in value.
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HoosierDaddy

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The 75% is way off.... With a $20k car trade in, no money down, on a 3 year lease, it's like $178 bi-weekly, as opposed to $465 a month purchase over 60 months.
That is so much better!
Thanks for correcting me!
 
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That is so much better!
Thanks for correcting me!
Yeah, I was surprised at that as well!
Of course, it also means you paid down your trade-in loan or you bought it outright. When taken together, it's probably a wash. But that low monthly looks good.
 

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The 75% is way off.... With a $20k car trade in, no money down, on a 3 year lease, it's like $178 bi-weekly, as opposed to $465 a month purchase over 60 months.
Wait, what $178 bi-weekly? $178 bi-weekly over 36 months is $13,884 + your $20K trade in. In your scenario you are paying $20K up front plus the lease payment which comes out to about $941 a month to lease for 3 years with nothing to show for it at the end of 3 years.
 

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Wait, what $178 bi-weekly? $178 bi-weekly over 36 months is $13,884 + your $20K trade in. In your scenario you are paying $20K up front plus the lease payment which comes out to about $941 a month to lease for 3 years with nothing to show for it at the end of 3 years.
Lol. Well, that's one way to look at it...
Not paying $20k up front if it's already paid for. More like paying $900 a month to paid down the trade-in so I can have a cheap monthly AND have nothing to show for it... Lol
Or buy-out afterwords to keep a low monthly (but get wrecked with interest the whole way!)
 

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leasing costs you more for the convenience of the option of turning it in. You are paying the presumed depreciation (which is always highest in the first few years) plus interest, fees, and they juice you a bit on the residual which means you are paying more than just the depreciation. If you are the kind of person who is okay with spending more just to have something under warranty and driving something newer all the time, sure. It makes sense. If not, then no, not so much.
I tried leasing then realized I didn’t want to drive it much to not go over the miles. My commute to work is so short I turned in a very low mileage vehicle that was worth way more than the residual that the dealer was very happy to get back since they could sell it higher than expected. All while I had to pay their fees to return it to them. Never again.
 

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I think it makes no sense for a vehicle like this...the Bronco screams to be modified, so you’re stuck in a lease where your hands are tied as far as making any real mods. You lose a lot of the fun of ownership. Then, do you really want to be leasing an off road vehicle that will take some damage?
 
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I think it makes no sense for a vehicle like this...the Bronco screams to be modified, so you’re stuck in a lease where your hands are tied as far as making any real mods. You lose a lot of the fun of ownership. Then, do you really want to be leasing an off road vehicle that will take some damage?
Valid points....
Im going with a clapped-out Badlands/Squatch so I don't have to mod it!
But knowing me, it won't be long before I'm throwing money at it!
 

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Lol. Well, that's one way to look at it...
Not paying $20k up front if it's already paid for. More like paying $900 a month to paid down the trade-in so I can have a cheap monthly AND have nothing to show for it... Lol
Or buy-out afterwords to keep a low monthly (but get wrecked with interest the whole way!)
Low monthly payment is only because you are handing over a $20k asset.

If you went 60 months at 3.9% with a 20K trade on a 45K Bronco you’d owe around $10K at 3 years on a vehicle that would be worth 30K+ still. Sell it, pay off the loan and have 20K to your next vehicle.
 

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leasing costs you more for the convenience of the option of turning it in. You are paying the presumed depreciation (which is always highest in the first few years) plus interest, fees, and they juice you a bit on the residual which means you are paying more than just the depreciation. If you are the kind of person who is okay with spending more just to have something under warranty and driving something newer all the time, sure. It makes sense. If not, then no, not so much.
I have run the numbers and it isn’t much of a difference. If you pay cash up front, and drive your vehicle 150k (say 10 years) vs. 4 leases, the difference is fairly large, even adding in $5k for repairs as a swag. If you are financing for 5 years and you add in the tax and interest (about 6%tax, lease is only taxed on lease value) and add $5k in repairs in the same example, the difference is much less. You do have the remaining equity in your 10 year old vehicle, which in the case of the Bronco, will probably be fairly high, but for most vehicles, like my 2011 Edge, it’s probably $4k? If it needs one larger repair, it’s just salvage now. It’s even a little more compelling to buy now because of low interest rates. That will probably drive my decision towards purchase, but if you know the numbers you are getting into, it’s not always advantageous to buy.
 
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Low monthly payment is only because you are handing over a $20k asset.

If you went 60 months at 3.9% with a 20K trade on a 45K Bronco you’d owe around $10K at 3 years on a vehicle that would be worth 30K+ still. Sell it, pay off the loan and have 20K to your next vehicle.
Except in Canada, a $45k Bronco is $65k with tax 🤑
 
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I have run the numbers and it isn’t much of a difference. If you pay cash up front, and drive your vehicle 150k (say 10 years) vs. 4 leases, the difference is fairly large, even adding in $5k for repairs as a swag. If you are financing for 5 years and you add in the tax and interest (about 6%tax, lease is only taxed on lease value) and add $5k in repairs in the same example, the difference is much less. You do have the remaining equity in your 10 year old vehicle, which in the case of the Bronco, will probably be fairly high, but for most vehicles, like my 2011 Edge, it’s probably $4k? If it needs one larger repair, it’s just salvage now. It’s even a little more compelling to buy now because of low interest rates. That will probably drive my decision towards purchase, but if you know the numbers you are getting into, it’s not always advantageous to buy.
Insightful... Thanks.
But in Ontario, my Badlands build is $67K and 13% tax. I'll be financing for 7 years likely! And interest is looking like 5.9% (so pretty much $13,000 in interest)
Im gonna probably eat the difference on a 6 year term and hope to get 2.9 or 3.9%
Yeah.... Ouch!
 

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Also depends on the trim, base or BB lease better than others because Ford put the residual value very high for them. For me it make sense to lease a base if you know you are going to change to other trim in few years. But If you think the trim you selected holds the value very well and you lose less money compare to lease if you sell it in 2/4 years, then you should buy it. I ordered a base Sasquatch, and can decide wether to lease or buy when it is delivered.
 

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Leasing is another form of financing and primarily is for people that trade in for new cars every couple of years, and don't really care about having equity in what they own. It's also a way to have a lower payment on a vehicle they can't really afford to purchase.
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