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Leasing Questions

FBomb

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Hey all. I'm looking to lease a 2019 EB Premium Convertible 200A with PP, active exhaust, and magneride.

I know next to nothing about leases, but I want to give it a shot and see just how much we end up using the Mustang, and what the next redesign looks like/offers before buying it.

Are leases negotiable? Would it be a good idea to bring my build to various dealers and see who can offer the best price?

Also, is X-plan applicable to leases? When would I bring it up in the negotiation of the lease?

Any other general tips with leasing? Thanks for the assistance!
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Timeless

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First tip is to not even talk about leasing.

Get your lowest price first (Should be right at or below dealer invoice which is better than X-plan).

Only after agreeing on price do you then mention to crunch the numbers on the lease. Pricing will vary depending on months of lease and miles driven per year.

Typically 39 month leases are the sweetest spot.
 

stevegt

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Leasing is never a wise financial move unless you are writing it off as a business expense. Dealers make a lot of money off a lease and you are basically just renting a car.
 

Bigred911s

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Depends on how long you intend to keep the car. Depreciation is huge on Mustangs first three years. The residual value will impact your monthly lease payment. Generally the monthly lease payment is less likely less than if you finance.
 

control4userguy

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Two tools used in the leasing game are Money Factor (cost of borrowing money) and the Residual Value (typically expressed as a % or 0.00 multiplier).

I have made money leasing particular types of vehicles with low-low MFs and a high RVs. Sell-out before end on lease or when market dictates and I typically walk away with $2/3k profit on a loaded MDX. Been doing this for 10 years now and always with zero-down.
 

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CHUCKinFLL

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Leasing is never a wise financial move unless you are writing it off as a business expense. Dealers make a lot of money off a lease and you are basically just renting a car.
Actually, that's not always true - for actual profit on the sale of the car, the selling price determines the profit, it doesn't matter if it's lease, finance or a cash deal. BUT in overall profit they normally make less money. On a finance deal they can mark up the interest rate, sell you an extended warranty and gap insurance - all with large profits. Most leases they aren't allowed to mark up the lease rate, obviously there is no need for an extended warranty and gap insurance is included on most leases. The one thing they could sell you to make some $$ would be excess wear & tear coverage, but there is less profit there than an extended warranty that they could sell you if you financed/paid cash.

As far as not being a wise financial move, that all depends. If you're someone that trades cars regularly and never would pay off that 60, 72 or even 84 month loan, this allows you to trade every 3 years and not have to worry about having negative equity in your trade. If you decide you love the car and want to keep it, you know up front what you'll be paying for it in 3 years.

I'd rather have a 3 year "rental" at a lower monthly payment and be able to walk away in 3 years than "buy" the car and 3 years into the loan go to trade it in and find out you owe more than it's worth.
 
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FBomb

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Actually, that's not always true - for actual profit on the sale of the car, the selling price determines the profit, it doesn't matter if it's lease, finance or a cash deal. BUT in overall profit they normally make less money. On a finance deal they can mark up the interest rate, sell you an extended warranty and gap insurance - all with large profits. Most leases they aren't allowed to mark up the lease rate, obviously there is no need for an extended warranty and gap insurance is included on most leases. The one thing they could sell you to make some $$ would be excess wear & tear coverage, but there is less profit there than an extended warranty that they could sell you if you financed/paid cash.

As far as not being a wise financial move, that all depends. If you're someone that trades cars regularly and never would pay off that 60, 72 or even 84 month loan, this allows you to trade every 3 years and not have to worry about having negative equity in your trade. If you decide you love the car and want to keep it, you know up front what you'll be paying for it in 3 years.

I'd rather have a 3 year "rental" at a lower monthly payment and be able to walk away in 3 years than "buy" the car and 3 years into the loan go to trade it in and find out you owe more than it's worth.
This was my thought. It's affordable for us right now, but in three years we're not sure how much we will have used it (I have a take home work car and the wife has a fuel efficient crossover) and our financial situation might change. Instead of taking a low payment loan and that biting us down the road, I'd like the option to walk away if it isnt feasible.

Thanks for all the input so far!
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