Trade w/ positive equity for a GT lease.

I found a two dealerships that are willing to lease GT's (18)- didn't know this was uncommon when I first started looking.

Has anybody traded in a car they still owed on but had positive equity for a lease? In my example, car is worth 26k according to KBB/Ed and I owe ~17.5. I talked to one of the internet reps and they said I could either get a check cut or "use it for payments."

I'm not in a rush so I'm willing to spend the time to shop them against each other, just wondering if anyone has done this shed any light; I don't want to overlook anything whenever I pull the trigger.

EDIT: How often do dealerships get new inventory in? I found a black, auto w/ 3.55 and 401 at both, but were gone after presidents day.

I work at a Ford dealership and we are instructed to pretty much deter clients from the Mustang GT Lease because it is so terrible.
The Lease Factor is typically 3-5 points higher than any normal lease that is considered "attractive."

It would be a waste of your equity that you have in your current vehicle because the payment will likely be higher than a purchase for say 60 or 72 months.

I have not checked the lease factor for the 2018 but I doubt the story has changed.

Sloan91 said:

I work at a Ford dealership and we are instructed to pretty much deter clients from the Mustang GT Lease because it is so terrible.
The Lease Factor is typically 3-5 points higher than any normal lease that is considered "attractive."

It would be a waste of your equity that you have in your current vehicle because the payment will likely be higher than a purchase for say 60 or 72 months.

I have not checked the lease factor for the 2018 but I doubt the story has changed.

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Thanks for the reply- its nice to hear from someone that works there/knows about this.

The terms are not bad- 36 months, $490/month.

intheairtonight said:

Thanks for the reply- its nice to hear from someone that works there/knows about this.

The terms are not bad- 36 months, $490/month.

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What’s the MSRP?
I’ve done well with GT leases (on my second), but getting a fair price is always a fight.

compare that payment, and the residual. with the going loan rate and see where you stand with payoff (effective residual) at the same end time.
I have leased before, even paying up front the whole lease. and this basically finances just the residual during the lease period. a higher rate than a loan would have been, but no risk on the vehicle after the lease. in that case, my 2008 super duty had quality issues and i turned it in and bought a 2011 with Ford's new engine.. so that worked for me.

bottom line. compare your end position when the lease is done to your payoff if you got a loan and were willing to sell at that time..

good luck... .just dont fall into the "what payment do you want" trick
my answer is " the payment that is the result of our best negotiated price....."

Ramb

intheairtonight said:

Thanks for the reply- its nice to hear from someone that works there/knows about this.

The terms are not bad- 36 months, $490/month.

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I'm paying $430 a month for 60 months and I get to own the car





I traded in my car that was worth $11k. Kinda what yours is worth :shrug:

Rock&Roll said:

I'm paying $430 a month for 60 months and I get to own the car





I traded in my car that was worth $11k. Kinda what yours is worth :shrug:

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I’m paying $400/month on a 36 month lease and only put down less than half that, msrp was $43k GT Premium. I like getting a brand new car every three years.

Generally, it's a terrible idea to put down money (over what is required) on a lease, which is effectively what you are asking about.

What happens if you total the car in 6 months? You aren't getting that money back.

Leasing a Mustang GT and you can't mod it. That's a no deal for me.

There is no way in hell I'd EVER put a dollar down in a lease.

Spork3245 said:

I’m paying $400/month on a 36 month lease and only put down less than half that, msrp was $43k GT Premium. I like getting a brand new car every three years.

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The MSRP is $48k

These were just the initial talks with an internet sales guy- how much negotiating did you have to do to get down to $400/month?

Spork3245 said:

I’m paying $400/month on a 36 month lease and only put down less than half that, msrp was $43k GT Premium. I like getting a brand new car every three years.

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So you put $5k down and in 36 months your lease is up and you get nothing but, you get to do it all over again :shrug:


not sure your winning there :doh:

intheairtonight said:

The MSRP is $48k

These were just the initial talks with an internet sales guy- how much negotiating did you have to do to get down to $400/month?

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I basically had to walk out and they chased me out the door :lol:

During negotiations, the lease payments started over $600/month iirc, I never budged on what I was willing to pay each month nor on how much I was putting down (“well... do you have any wiggle room?” to which I replied “... that is my wiggle room”). It literally was over a 60 min back and forth.

Spork3245 said:

I basically had to walk out and they chased me out the door :lol:

During negotiations, the lease payments started over $600/month iirc, I never budged on what I was willing to pay each month nor on how much I was putting down (“well... do you have any wiggle room?” to which I replied “... that is my wiggle room”). It literally was over a 60 min back and forth.

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How much did you put down? I've done that with all my purchases and have no trouble seeing through their games/walking out.

Rock&Roll said:

So you put $5k down and in 36 months your lease is up and you get nothing but, you get to do it all over again :shrug:


not sure your winning there :doh:

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Sure I am, I get a new car every 3 years, the $5k down was optional as $1k = $20/month on a lease; I’d be paying the same regardless.