Anyone Considering Leasing a Maverick?

[Turtle]

At the end of your lease, you will get an inspection done by the leaseholder who will give you a quote for how much it would cost you to return the car if anything. Once you have this, take the car to CarMax and ask them how much you would owe (or receive) if they were to buy out the lease.

CarMax (or you if you wanted to keep the car) only have to pay the leaseholder the residual amount that was agreed upon years earlier when you bought the car but cars often hold their value more than the leaseholder estimates because no one can perfectly predict the future. If you have minor damage to the car, CarMax will use its own in-house folks to repair so they charge you about half what the leaseholder would for the same damage. Similarly, for over mileage, it'll cost you a lot less when letting CarMax buy out the lease than you would have to pay the leaseholder.

Regardless, you now have two options. Return the car to the leaseholder (and possibly pay for the privilege due to damage or over mileage) or let CarMax buy it out. CarMax takes care of all the paperwork so it's just as easy to go that route, but now you have a choice.

The biggest value of leasing to me is that it gives you a three-way option at the end of the lease and depending upon the effective interest rate for the lease may not even cost you much to gain this "option".

New leases generally stipulate no third party buyout. This means that you have to di yourself. Once all the money has changed hands, Yaoundé can then sell it to Carmax. Don’t forget the taxes - that can cost a bunch.

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[lmaccherone]

GM Financial Ends End-Of-Lease Purchases With Non-GM Dealers (gmauthority.com)
I read that some car companies will not allow other car companies dealers buy out leases when trading in a vehicle of another brand. Only the lessee or a dealership of the same brand can. I asked my Ford dealer when I ordered the Maverick if they would be interested in buying out my lease on the Honda when the Mav arrives and they said they could only do that if I was trading in a Ford or Lincoln model. I wonder if this applies with CarMax and other such third party buyers? I know years ago when I leased a '11 Cadillac CTS they gladly bought out the lease on my 2008 Ridgeline with no problem. I guess with used car prices so high car companies want to keep their used car inventory of their models for themselves.

UPDATE: Things may have changed since I did this 9 months ago. A bit of Googling tells me that leasing companies have made this harder. You can still do it but you are more likely to have to pay title/tax and do more work yourself for leases being signed by most folks today.

ORIGINAL POST:
It does not apply to CarMax. They will happily buy out any lease assuming it's a financial gain for you and CarMax and the leasing company has no choice but to do it because CarMax gets limited power of attorney from you and you have a contract with the leasing company that requires them to sell it to you at the residual value agreed to when the lease was signed.

 

[lmaccherone]

New leases generally stipulate no third-party buyout. This means that you have to di yourself. Once all the money has changed hands, Yaoundé can then sell it to Carmax. Don’t forget the taxes - that can cost a bunch.

UPDATE: Things may have changed since I did this 9 months ago. A bit of Googling tells me that leasing companies have made this harder. You can still do it but you are more likely to have to pay title/tax and do more work yourself for leases being signed by most folks today.

ORIGINAL POST:
CarMax gets around this by having you give them limited power of attorney. They are essentially buying it in your name. That said, taxes may come into play depending upon your state and locality. Your local CarMax knows all this and includes that in the quote they give you so you can make an informed decision.

 

[Hdang1980]

Is the APR negotiable on a lease?

 

[TheGriffin1313]

Personally I always thought that leasing was throwing away your money. But after leasing my 2019 Tacoma Terd (TRD off road) and forcing them to make my payments less then 290 per month and as they did. I hated that truck with a passion within 6 months.
Looks ,styling and comfort for sure are sweet on the Taco but the drive train (tranny) was garbage and the infotainment system sucked, back up sensors sucked (only would beep after you made contact), and the worst thing with the Taco was that with your bare thumb could actually bend the quarter panel or anywhere. It is a very dainty made truck and if you looked at it sideways something would break or bend on it.
I just took it back a year before the lease expired and got 4K back on top of it. Based on other responses I will wait till the date I pick it up, I may go with a lease not knowing how this Ford treats me vs the others I have had good experience with.
So its a crapshoot make sure your payoff balance is good vs too high as it may not be worth the price when the lease expires. If the dealer has confidence in the truck will hold its value after the lease terms are way more negotiating and accommodating.
As the taco has blind diehard fanatics that will buy that truck regardless, so leasing that truck is no brainer do to its high resale value. But not getting stuck with a lemon is the other attribute to leasing vs buying. You just take it back and say thanks but no thanks
Now the Maverick can change the entire marketplace or go on to pasture as other Ford duds but I have my hopes up high for Ford and the Maverick.

 

[Darnon]

Is the APR negotiable on a lease?

With leases it's money factor rather than Interest and slightly different. It's pretty much going to be set for that given lender/dealership unless you go to a different region where it might be incentivized differently. Sometimes you can reduce it by placing a security deposit. Otherwise the only number you really need to care about in a lease is the monthly payment assuming no changes in mileage allowance or payment at signing (you should avoid making a down payment on a lease aside from maybe tax/title/reg fees).

 

[TheGriffin1313]

GM Financial Ends End-Of-Lease Purchases With Non-GM Dealers (gmauthority.com)
I read that some car companies will not allow other car companies dealers buy out leases when trading in a vehicle of another brand. Only the lessee or a dealership of the same brand can. I asked my Ford dealer when I ordered the Maverick if they would be interested in buying out my lease on the Honda when the Mav arrives and they said they could only do that if I was trading in a Ford or Lincoln model. I wonder if this applies with CarMax and other such third party buyers? I know years ago when I leased a '11 Cadillac CTS they gladly bought out the lease on my 2008 Ridgeline with no problem. I guess with used car prices so high car companies want to keep their used car inventory of their models for themselves.

this is true with the Toyota as I took it back to the used car lot of the same dealer I purchased it for.
The used car lot will not dig you for things as the new car lot would based on the stipulations on your contract. As the dings in the tailgate and mismatched tiers were all deductions the new lot would charge for but the used lot did not care or ding me for. But that was toyota and or other dealers may or may not do the same.

 

[Hdang1980]

With leases it's money factor rather than Interest and slightly different. It's pretty much going to be set for that given lender/dealership unless you go to a different region where it might be incentivized differently. Sometimes you can reduce it by placing a security deposit. Otherwise the only number you really need to care about in a lease is the monthly payment assuming no changes in mileage allowance or payment at signing (you should avoid making a down payment on a lease aside from maybe tax/title/reg fees).

That's what I kind of figured. I was wanting to see if I could game the system by getting a low money factor lease and then financing it for 0% at the end of aa 24 month lease. Just to give me options in case the truck is a lemon or subsequent model years offer more features (AWD Hybrid, Plug in, etc...)

 

[Darnon]

That's what I kind of figured. I was wanting to see if I could game the system by getting a low money factor lease and then financing it for 0% at the end of aa 24 month lease. Just to give me options in case the truck is a lemon or subsequent model years offer more features (AWD Hybrid, Plug in, etc...)

I'd be surprised if you managed to finance for 0% if you buy it. The manufacturer is paying the cost of interest to get to 0%. And at the end of a lease it's now a used car, subject to higher used car interest rates. That's part of why lease to buy is usually a bad deal in the long run.

 

[OC-D]

even a much broader brush in guessing age, more importantly nothing to do with the fact that transition to EV is inevitable and much faster than you think.

Neutral spectator, I actually got my last lease about 3 years ago thinking it was happening fast. But as of now, the problem is that it's happened but not in the budget I want. Mainstream companies are barely adapting, companies like Toyota are barely reading the room and creating a new brand to address it (Bz), Honda really doesn't have much of a strategy, and early EV companies like Nissan have had stuff cooking for ages now.

So nope, it'll still be awhile to trickle down and that's anticipating no crazy supply issues like day a global pandemic.

 

[Hdang1980]

I'd be surprised if you managed to finance for 0% if you buy it. The manufacturer is paying the cost of interest to get to 0%. And at the end of a lease it's now a used car, subject to higher used car interest rates. That's part of why lease to buy is usually a bad deal in the long run.

aahhhh i see. Thanks for the insight. I was planning on financing (36m 0%) but wanted to kick the tires on other options. Seems like my choice has been made.

 

[mrrk47]

The buyout at the end of a lease is predetermined in the contract so if you have less miles on it than you paid for you essentially overpaid and don't get any refund when you turn it in. Unless some third party like CarMax, Carvana, Vroom, Shift, etc. value it higher than your buyout price because of the low mileage then you let them buy it. However with the car shortage new-ish vehicles are commanding a premium and the manufacturers/lease companies didn't like losing vehicles that would return to their dealers and others getting to profit for it. So almost all disallow third party buyouts or charge them market price. Instead you now would need to buy out yourself, pay the taxes, secure financing, wait for the title to process, and then finally you can sell it to those third parties. Unless you replace it with a vehicle from the company you sold it to you lose the taxes if you live in a state that credits trade-ins which makes it less profitable.

But, if you have more miles on than you paid for and choose to buy out the lease it might be a WIN!

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