Shed some light on Leasing a Truck

[2014olympicgold]

So I’ve always wanted a truck because of a couple of small reasons, but the biggest one is I’m 6’7” and I would love to fit in a vehicle well. The rear-view mirror in cars actually is a blind spot for me at a 4-way (or 3way) stop for the car on my right. It’s very annoying hitting my head and feeling cramped in my car right now. I do go camping, kayaking, and my parents have a boat that I would love to stop borrowing their car for the hitch to tow it when I want it. Back-story:

My uncle had passed away last yr and my cousin (his daughter) sold me his 2010 Malibu w/ roughly 30k on it (40k now) for really cheap and my current car at the time was old (2001 Intrepid). Took the opportunity and had a reliable car for the first time ever. It’s nice, just never felt comfortable in it. I have always looked at it like a temp car. Something in between my old car and the car I wanted. Then this Ford F-150 lease deal comes up.

Now, the deal is a 4x4, F-150 supercrew (4 full doors) on a 2-yr lease for $349/month plus tax w/ $2275 down. With a car trade in (my Malibu) I can bring it down to like $99/month. The issue is, the deal is too good to be true, and I found the only catch is that you don’t own a car now. It’s great for Ford, you bring in a 2015 truck in 2017 with 20k on it and they get to sell it for a profit still. With some math and research you spend ~$10-$12k on the car, and to buy it at the end of the lease is like $23k. So Ford will either get you to buy the truck for $23K if you liked it, or sell a 2yr old truck with 20k on it for $30k prolly. So the deal seems like a great win-win for Ford and the customer if that’s what you’re looking for.

My question is, is leasing worth it? I know getting a brand new car is not smart (drops in value the most in the first 2 yrs), but this seems like this deal kinda negates the negatives? Is it better to just finance a 2014/2013 F-150? What’s the deal-yo?


Thanks

[gainerama]

I own a 2012 Ford F150 FX4 Supercrew and yes it is awesome. If you're not 100% sure about this truck then leasing is the way to go since there's no obligation on your part past the 2 yr lease. If you plan on using this vehicle for work or taking it out camping all the time and giving it a workout, then leasing is better for you. There's no better feeling than getting the most out of your truck while knowing that in 2 years you can end up with a brand new truck all over again. Depending on what type of bells and whistles come with the truck, leasing might be more affordable than purchasing outright unless you plan on babying this truck to make sure it lasts forever. The actual cost for my truck after everything including tax was tallied up was probably about $61k mrsp. I paid in full during their employee pricing sales (late Aug) when the dealership had to move all their inventory for the newer models coming in the following week so the total cost dropped to $46k. If you're going to buy, you have to wait till that sale otherwise leasing is probably the better way to go.

[sammynos]

Let me see if I can help here...I currently work as a Motoring Advisor (sales) at MINI of Baltimore County. While the car brands are incredibly different, the basics of leasing are pretty much the same regardless of programs and incentives.

Leasing is a great option for people who either drive very little or a ton or tend to be the type who can't stand driving the same thing for more than 2 to 3 years. So, wait...why would you want to lease something you drive a ton in? Essentially at the end of two years when you have a ton of miles and the market says the truck isn't worth much, you can walk away from it without having to worry about value vs. amount owed.

The dealership is a business, so obviously the goal is always to make money as frequently as possible. There is a little more to it than Ford buying it to sell for the same amount as the residual value that you would. If they are like MINI, which I can't say that I know if they are, there is a totally different amount that the dealership would need to pay to keep the truck. MINI also has programs where they have to buy back a certain percentage regardless of financial sense.

A bonus to leasing the truck is that at the end of the two years you have options as opposed to burdens when you buy. When you finance, you have an amount that owe that follows you around until it is paid off. That could affect your ability to trade or sell it. At the end of the lease you can buy it out, walk away from it completely, or get something brand new. Typically, they will place heavy incentives on you staying in the brand and getting something new. What if you want to buy it? Check the market for the truck. Do your research. It could turn out that the value of your truck is a few thousand higher than your residual value...winner, winner you just found a way to make some money! It could also turn out that the value of the truck is lower than your residual value...again, winner, winner because you aren't tied to the thing and you can walk away without making a poor business choice.

I hope this helped...seriously though, ask me any other questions you have!

[2014olympicgold]

Because of camping, I’m sure I’ll scratch it up somewhat which at the end of the lease I have to pay to fix (so they can sell it like it’s brand new). But with putting on 10k in like 12months on my current car, I should be fine with the basic 20,000km limit on the lease. Maybe bump it up to 25k. The overage on the km is like $0.16/km, which seems like a lot. Not really a worry tho to me, I’ll keep it under 30k over 2 yrs for sure. ($800 extra)

After reading some RedDeals forum on this new 2-yr lease thing, people have said it’s a bait and switch tactic, and they won’t have any in stock if you go. Which for Ford is great, “oh we don’t have that in stock, but for $4k more you can get this right now”. So one person said it took 5-6weeks to get, another said 3months lol. Area dependant I guess.

From the RedDeals forum, someone has said they have given free upgrades on the model said in the deal because they have it in stock. The big one that was common was the engine. I guess they rather lose the $700 or something on the engine upgrade to guarantee the sale.

The next thing is, my parents are leasing a 2013 (or 2014, I think they got it at the end of 2013) Escape (newest styling). If I go to the same dealership, and say I’m their son, will they treat me better than if I go to another Ford dealership? Or are they all tired together?

[gainerama]

Every dealership is separately owned and I believe they have their own discretion on wheeling and dealing. It all comes down to leverage and how bad they want to move their inventory to close that deal.

[2014olympicgold]

Every dealership is separately owned and I believe they have their own discretion on wheeling and dealing. It all comes down to leverage and how bad they want to move their inventory to close that deal.

Do you have any tips for when leasing? Anything I should be on the look for with the salesman?

[SeaDawg]

I always lease because I walk to work and only need a vehicle for errands and road trips to visit family out of town, etc.

I barely put 10,000 kms on my vehicles each year.

I'm currently leasing an Infiniti SUV, but I did lease a truck many years ago.

Generally speaking, leasing is nice if you want to keep your payments down and you don't put a lot of miles on your vehicle. If you exceed the mileage limits, it can get expensive to pay the penalty. I ended up buying the first vehicle I ever leased (18 years ago) because I exceeded the mileage.

The other issue is if your lifestyle changes, and you suddenly don't want a truck, getting out of the lease is tricky. I did break the lease on the truck I leased years ago because my wife got pregnant and we decided we needed a backseat for the baby.

Also, another possible issue with leasing, especially a truck that you might abuse a bit, is that if there is any body damage to the vehicle when you return it, you might have to pay some fees for the repairs. This also applies to tires (wear and tear). I had to actually pay for a brand new set of tires on a leased vehicle I returned, which was ridiculous because the vehicle only had around 60,0000 kms on it. The tires were obviously very soft and the tread got worn away too soon, but I was still on the hook to return the vehicle with tires that were in good condition.

Another nice advantage of leasing is that you get a new vehicle every 3-4 years. I like that and don't have to be bothered with trying to sell my current vehicle. Less headaches, imo, though I suppose financially you may be slightly behind compared to buying a new vehicle and selling it in 3-4 years, but I don't think the cost difference is all that much for the convenience of not having to worry about selling a vehicle and I like having smaller car payments on a monthly basis, which gives me more flexibility with my finances.

[sammynos]

Do you have any tips for when leasing? Anything I should be on the look for with the salesman?

Just be totally up front with the guy/gal.

Worst thing you can do is throw things in last minute because it will just cause mass confusion.

Of course you can always try to find the new person and see how much you can get away with...

[gainerama]

Do you have any tips for when leasing? Anything I should be on the look for with the salesman?

Sorry I can't help you as I ended up purchasing my truck instead of leasing. I'm one of the few people who only purchase new vehicles and baby them forever. The other guys here can answer the lease questions better.

[SeaDawg]

Every dealership is separately owned and I believe they have their own discretion on wheeling and dealing. It all comes down to leverage and how bad they want to move their inventory to close that deal.

This is true. If you come across a desperate dealership, you can really get a good deal. When negotiating the lease on my Infiniti, I got the dealer to upgrade me to the top package (navigation system, BOSE sound system, sun roof, etc.) for the same price as the entry-level package, AND I got him to include top-end winter tires with a second set of alloy rims at no extra cost.

Now that deal was extraordinary. I'm not usually able to negotiate so many add-ins, but in this case the dealership was extra desperate to make the sale.

[SeaDawg]

Do you have any tips for when leasing? Anything I should be on the look for with the salesman?

Even when leasing, I recommend getting a lease price from multiple dealerships, even from the same company. One Ford dealership may be more likely to offer a better lease price than another.

I once drove a car I was test-driving from one dealership to another dealership and told the salesperson I was there to see if he'd get me a better price. Told him I had a vehicle in the parking lot I was test driving.

He gave me the same vehicle (color and everything) for $75 less per month.

[sammynos]

Even when leasing, I recommend getting a lease price from multiple dealerships, even from the same company. One Ford dealership may be more likely to offer a better lease price than another.

I once drove a car I was test-driving from one dealership to another dealership and told the salesperson I was there to see if he'd get me a better price. Told him I had a vehicle in the parking lot I was test driving.

He gave me the same vehicle (color and everything) for $75 less per month.

pretending that I didn't read that...

[2014olympicgold]

This is true. If you come across a desperate dealership, you can really get a good deal. When negotiating the lease on my Infiniti, I got the dealer to upgrade me to the top package (navigation system, BOSE sound system, sun roof, etc.) for the same price as the entry-level package, AND I got him to include top-end winter tires with a second set of alloy rims at no extra cost.

Now that deal was extraordinary. I'm not usually able to negotiate so many add-ins, but in this case the dealership was extra desperate to make the sale.

What did you say? Just like, “what can you give me? oh that’s not enough”? I’m terrible in person with that stuff. My brothers a cop and he said if I get pulled over just say you know *His name* and they’ll let me off free. I’m too awkward and asked a cop once, “Do you know A brotha named *his name*? ya, me and him are tight” and made the two finger tight symbol. Needless to say I got that ticket still.

Ya most dealership tires are crap. On the Malibu I have I had them blow out on the sidewall with about 35k on it. I wasn’t even thinking about tires before you said you had to replace them lol.

To the guys with trucks, how Km (or miles) can you get on a tank? I don’t go by the advertised mileage because that’s ridiculously pumped up.

[Godin]

Let me see if I can help here...I currently work as a Motoring Advisor (sales) at MINI of Baltimore County. While the car brands are incredibly different, the basics of leasing are pretty much the same regardless of programs and incentives.

Leasing is a great option for people who either drive very little or a ton or tend to be the type who can't stand driving the same thing for more than 2 to 3 years. So, wait...why would you want to lease something you drive a ton in? Essentially at the end of two years when you have a ton of miles and the market says the truck isn't worth much, you can walk away from it without having to worry about value vs. amount owed.

The dealership is a business, so obviously the goal is always to make money as frequently as possible. There is a little more to it than Ford buying it to sell for the same amount as the residual value that you would. If they are like MINI, which I can't say that I know if they are, there is a totally different amount that the dealership would need to pay to keep the truck. MINI also has programs where they have to buy back a certain percentage regardless of financial sense.

A bonus to leasing the truck is that at the end of the two years you have options as opposed to burdens when you buy. When you finance, you have an amount that owe that follows you around until it is paid off. That could affect your ability to trade or sell it. At the end of the lease you can buy it out, walk away from it completely, or get something brand new. Typically, they will place heavy incentives on you staying in the brand and getting something new. What if you want to buy it? Check the market for the truck. Do your research. It could turn out that the value of your truck is a few thousand higher than your residual value...winner, winner you just found a way to make some money! It could also turn out that the value of the truck is lower than your residual value...again, winner, winner because you aren't tied to the thing and you can walk away without making a poor business choice.

I hope this helped...seriously though, ask me any other questions you have!

Great advice!

[SeaDawg]

Just be totally up front with the guy/gal.

Worst thing you can do is throw things in last minute because it will just cause mass confusion.

Of course you can always try to find the new person and see how much you can get away with...

lol...there were other factors at play here too, that I won't bother getting in to. All I will say is that the first dealership (the manager at the dealership anyway) was a bit of an ass so I decided to see what another dealership could offer instead.

If the manager had not been such a douche, I wouldn't have even bothered going somewhere else.