Finance or Lease?

[NorthShoreMaverick]

I know this may be a personal preference, but I’m curious to see what members have decided when it came to purchasing their Maverick. Did you take advantage of the special financing programs like 0% for 36 months or 0.9% for 48 months to own the vehicle? Or did you lease the vehicle for 36 or 48 months or longer? Of course there are pluses and minuses to both routes being a new vehicle and a strange financial climate in a covid atmosphere with limited inventory I am trying to decide what may be the best move? Thanks!

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[pxpaulx]

I know this may be a personal preference, but I’m curious to see what members have decided when it came to purchasing their Maverick. Did you take advantage of the special financing programs like 0% for 36 months or 0.9% for 48 months to own the vehicle? Or did you lease the vehicle for 36 or 48 months or longer? Of course there are pluses and minuses to both routes being a new vehicle and a strange financial climate in a covid atmosphere with limited inventory I am trying to decide what may be the best move? Thanks!

I've never quite understood the appeal of a lease, despite turning over our vehicles every 2-3 years (or faster). I don't like the idea of being locked in to a contract on a big ticket item like a vehicle.

We owned our 2019 Ranger, so had the funds to buy the Maverick outright, but I opted to finance about 75% at the 0.9/48 rate - invested the difference, as that money will do much better in an index fund if Ford wants to give away basically free (or free at 0/36) money in a loan.

 

[Retiredguy]

I am not a fan of leasing even though I have leased before. Nevr could estimate the number of miles I would drive in a year. I either drove over the allotted miles or under. I purchased my Maverick but it's a personal decision.

 

[bradFORD]

I have never leased a vehicle and will continue to finance my new maverick

 

[Traegorn]

I've never leased and don't intend to this time either. But I also intend to drive this thing for at least a decade the way I have with my current vehicle.

 

[TacoHolder]

Personal opinion, but I see two scenarios where a lease could make more sense than financing. I don't think either applies to the Maverick, though.

1. Leasing a BEV of PHEV for 2-4 years with the intent to not buy it out at the end of term. You will be able to claim the federal tax credit and all of the rebates from your state government and local power company. The net cost to you would be very small or you might even come out in the positive if the monthly payments are low enough.

2. Taking advantage of an absurdly low promotional lease rate. In most (all?) cases, the buyout amount at the end of term is in the lease contract. If the math works out so that you end up paying less for the lease + buyout than the fair market price for the car, it makes sense to lease first then buy it out at the end.

 

[Rob Cactus Gray]

Leases rarely work out in your favor. I will always buy.

 

[snowcatxx87]

Leases rarely work out in your favor. I will always buy.

There is so much mis-information about leases and you get wild comments like this.

Leases, ALWAYS work out in your favour.

Lease isn't anything fancy. People don't understand the word. It is basically co-ownership with Ford.

1) At the end of the term, if the car is worth less than the residual (buyout), you give it back and the loss is theirs. (called being upside down)

2) The car is worth more than the residual, you buy it back, and sell it, and "make" money. Pro-tip: Never trade it back in, chances are you will lose the equity and the dealer will keep this. Always remember market value is not wholesale.

3) You can always get out early, laws protect the consumer.

4) Going over KM probably doesn't matter - there isn't an overage fee if you buy it at the end. Chances are, the vehicle is still worth more than residual, and if you KNOW you are a high mileage person, you will go with finance/cash instead. (30,000KM+ year) Overage fees keep the car at the guessed mileage, because that is what the residual is based on. It's not going to be worth it's guessed $15,000 at the end of a lease if it has 300,000KM on it, is it?

P.S - Your rates are amazing in the states compare to us. 3.48/4.48% are the minimums for Canada. Lame.

 

[Rob Cactus Gray]

There is so much mis-information about leases and you get wild comments like this.

Leases, ALWAYS work out in your favour.

Lease isn't anything fancy. People don't understand the word. It is basically co-ownership with Ford.

1) At the end of the term, if the car is worth less than the residual (buyout), you give it back and the loss is theirs. (called being upside down)

2) The car is worth more than the residual, you buy it back, and sell it, and "make" money. Pro-tip: Never trade it back in, chances are you will lose the equity and the dealer will keep this. Always remember market value is not wholesale.

3) You can always get out early, laws protect the consumer.

4) Going over KM probably doesn't matter - there isn't an overage fee if you buy it at the end. Chances are, the vehicle is still worth more than residual, and if you KNOW you are a high mileage person, you will go with finance/cash instead. (30,000KM+ year) Overage fees keep the car at the guessed mileage, because that is what the residual is based on. It's not going to be worth it's guessed $15,000 at the end of a lease if it has 300,000KM on it, is it?

P.S - Your rates are amazing in the states compare to us. 3.48/4.48% are the minimums for Canada. Lame.

Spoken like a car salesman.

 

[snowcatxx87]

Spoken like a car salesman.

Is this the second time you accused me of being a salesman? Haha. Sorry you have a simple mind and won't open it up to learn things.

ps. I don't sell cars

 

[Jakb]

I'll be financing. Not using a 0% for 3 years is just leaving money on the table.

When I put in my order in september I bought $30k of VTI and plan on holding that over the three years. I'm already up $1,600(+5%). It's a risk in the stock market but unless we all blow up it's a good investment to finance

 

[flyjum]

The 0.9% at 48 months is the best deal in my opinion. Leasing is not an option because of how many fees are added on.

If you are financing $25,000 at .9% you will end up paying $530 a month and the total loan will cost $25,462. The total interest paid was only $462 dollars paid over 4 years.
If you do the 0 percent for 36 you wont pay any interest buy your payment goes up to $694 a month. Even the 1.9% at 60 months is perfectly reasonable it will cost you $1,226 over the span of 5 years(437 a month)

Inflation is far higher than the 0.9% rate they are lending to you at. This means you are getting an effective negative interest rate. I have the option of pay cash for the vehicle but I would rather keep the money available for other investments opportunities and finance at the extremely low rates.

 

[Old Ranchero]

I leased a new 2006 Ranger once. They had a special deal with $0 down due at signing and a 2 year (might have been 27 months) contract with lower monthly cost than if I purchased it. The residual to keep it was sky high so I had no intention of purchasing at end of lease. I had only a short work commute at that time and knew my annual mileage would never come close to what was allowed. All the pieces just fit perfectly on that 1- and I drove a brand new truck while saving up cash to buy a new Pontiac Vibe discounted through Costco no haggle on-line. Drove the crap out of that with just minimal normal maintenance for almost 6 years and got a premium trade in price when buying my 2013 Jeep because it looked like new and Carmax gave me a great offer on it that I sprung on the Jeep dealer after negotiating a great OTD price. Winning!

 

[Old Ranchero]

The 0.9% at 48 months is the best deal in my opinion. Leasing is not an option because of how many fees are added on.

If you are financing $25,000 at .9% you will end up paying $530 a month and the total loan will cost $25,462. The total interest paid was only $462 dollars paid over 4 years.
If you do the 0 percent for 36 you wont pay any interest buy your payment goes up to $694 a month. Even the 1.9% at 60 months is perfectly reasonable it will cost you $1,226 over the span of 5 years(437 a month)

Inflation is far higher than the 0.9% rate they are lending to you at. This means you are getting an effective negative interest rate. I have the option of pay cash for the vehicle but I would rather keep the money available for other investments opportunities and finance at the extremely low rates.

IMO paying cash in full is the best option. No matter how low your interest rate is- you still have to make a monthly payment! We are Seniors on fixed budget by choice and live well using philosophy of keeping our fixed monthly expenses as low as possible while letting our retirement investment vehicles keep growing and only dipping in when needed or to splurge for something.... like a new Maverick!

 

[CoryDallas8123]

I'll be financing. Not using a 0% for 3 years is just leaving money on the table.

When I put in my order in september I bought $30k of VTI and plan on holding that over the three years. I'm already up $1,600(+5%). It's a risk in the stock market but unless we all blow up it's a good investment to finance

VTI is a great buy. The expense ratio is amazing too.

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