Advice on monthly payments for 2016 EB Premium

[Rohammers]

Hi all,

I ordered a 2016 Mustang Ecoboost Premium with PP in Race Red with the black over the top racing stripes on 17th July.

This is my first car I'm getting in my name and I just need some advice on how I should go about getting my monthly payments as low as possible.

I'm leasing the car for 24 months/10500 miles and $3.5k down. (I plan to maybe buy it after that) I have X-Plan through my work, so I generated a pin and the dealer said they'd accept it when I come in to pick the car up and figure out the price/payments.

I also recently graduated from college and saw the $500 incentive so I can use that, and also the $500 customer cash back for purchasing or leasing a new Mustang.

The MSRP for the car is $33960 with all my options but the invoice is $31969.01 (both include the $900 destination charge) so I basically save $2k just with X plan and another $1k with the ford incentives.

So say if the car is $31k when I pick it up, what will the residual of the car be in 2 years time? so I can go in with a rough idea what I should be paying monthly when I pick up the car, they wouldn't give me a monthly payment price when I put the $500 down for them to place the order, because they don't have a residual on the 16 models even though they're the same price as the 15's and basically nothing has changed from the 15 to 16 which I though was sort of shady, apart from that they were very nice.

I also live in NJ if that factors into the monthly payment prices.

If anything seems off please let me know, I hate getting ripped off.

Apologies for the lengthly post, I wanted to be as clear as possible of my situation.

Thanks lads!

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[bigb996]

i personally am not big on leasing cars. The problem with the ecoboost is its new. There has not been enough time of it being on the road to see what kind of resale it will have. I dont see it holding like a GT does. I believe it will hold like a fiesta ST does(which isnt great). So leasing i dont think would be very beneficial unless you are going to turn it right in at the end of the time. If you bought it i would say your payment with a lower rate would be anywhere from 350-450 a month. Its hard to say without actual numbers because everyone and every situation is different.

 

[SYK]

If you can afford increased payment, don't down too much for a lease. Say u put 3k down, you total the car the next day, you don't get that 3k back. It's gone. If u put 0 down and total it next day, you only lose your first month payment. (If you have gap insurance of course).

That is the general advice you will find on the web, through people who leased before. Put at little down as you can. Invest your saved up down payment on something and let the return on investment beat the increased interest from not having 3k down (which isn't that much anyway).

12k, 36month residual from my memory on ecoboost was about 54~58%. I think the dealer I talked to mentioned that premium holds value better. so for 2 years? I am not quite sure.

 

[cognizantphotos]

If you can afford increased payment, don't down too much for a lease. Say u put 3k down, you total the car the next day, you don't get that 3k back. It's gone. If u put 0 down and total it next day, you only lose your first month payment. (If you have gap insurance of course).

That is the general advice you will find on the web, through people who leased before. Put at little down as you can. Invest your saved up down payment on something and let the return on investment beat the increased interest from not having 3k down (which isn't that much anyway).

12k, 36month residual from my memory on ecoboost was about 54~58%. I think the dealer I talked to mentioned that premium holds value better. so for 2 years? I am not quite sure.

This guy knows his stuff, i will piggy back and say never ever put a down payment on a lease. If i was to lease i would do MSD's, whatever you put down as a MSD you get all that money back at the end of the lease.

 

[justindo]

http://www.leaseguide.com/lease07/

http://www.leaseguide.com/lease08/

Do not put any money down on a lease. If your credit is so poor that they will not allow you to do that, you shouldn't be leasing a car.

If I were to lease your said car, I'd be prepared to pay no more than $300 a month including all taxes and fees with zero down.

 

[2015silvergt]

Wow, im shocked with all of the good advice about not putting money down, i will uust add this, these cars dont lease well.

Why do you want to lease it?
Is it just because you assume the payments will be cheaper? Also, leasing you need to carry more insurance than financing generally. I have 1k deductibles, more leases require 500 or less and to have comprehensive as well.

Also, if you lease and decide you want to get rid of it in a year, you still make all of the depreciation lease payments. If you finance the car, you just payoff what you owe.

Btw, im in nj also.

 

[Glenn G]

Wow, im shocked with all of the good advice about not putting money down, i will uust add this, these cars dont lease well.

Why do you want to lease it?
Is it just because you assume the payments will be cheaper? Also, leasing you need to carry more insurance than financing generally. I have 1k deductibles, more leases require 500 or less and to have comprehensive as well.

Also, if you lease and decide you want to get rid of it in a year, you still make all of the depreciation lease payments. If you finance the car, you just payoff what you owe.

Btw, im in nj also.

Get gap insurance too, it is cheap as hell and well worth it if you don't put any money down, mine was $269 or 4 dollars a month! I don't like leasing because I mod all my cars but if you can get 300 a month you will be doing well. The formula I have seen for depreciation is 2% a month for the first year. 1.5% for the second and 1% a month for the third. which typically puts you at a residual of 46% after 3 years. leasing companies will try to inflate the Depreciation value if you indicate you might want to buy the car after because you pay more and still have to pay the actual residual value afterwards rather than the calculated value you paid for.

My finance was 1.9% over 6 years with no penalty for early repayment and 0 money down (790 credit score) with my gap insurance it makes no sense to pay it off until I am no longer upside down on my loan, then I'll probably just lump sum it.

 

[SMJBA]

I read sometime ago that leasing is to pay more for a car you can't afford to purchase. I kind of agree with that.

The residual value is a set percenatage of the full MSRP not the selling price. You still have a vested benefit to bargain as this will reduce your amount to pay. 24 months is also the most expensive lease term. You should consider 36 months as it will be cheaper and you will still drive the car under warranty.

Advices above for insurance are very pertinent and very valid.

 

[AmaziN]

Here's my $0.02...

Don't put money down on a lease, if anything maybe $500 but any more than that and you'll most likely end up losing it. Ford's in general don't have really good depreciation values.

With any lease deal here's what I like to do to kind of gauge how much money is being made on the deal, you'll get money factor, residual amounts and other numbers thrown at you but to me what's key is to take your monthly payments x lease term and subtract from final purchase price. If there's a difference of about 1k from residual amount then its not so bad of a deal for them to make about a grand off of the whole lease term. If there's a difference of about 2-3k then I would most likely walk away because if you had bought the car in the first place with low interest rates today you'll most likely not pay that much in interest over the term of the loan.

To put things into perspective I leased my 2013 Fusion fully loaded Titanium in Feb 2013 for $347/month with no money down. At the time I didn't know about x plans and what not so if i recall final purchase price was about 1-2k below MSRP, around $32,500 so 347x36 = 12492, Residual is 21k. Total payments + residual = 33492. Total amount ford makes during lease term is about $992. Not bad considering that my monthly payments factor in taxes too.

Seeing that your final purchase price is close to mine your payment should somewhat be similar with no money down but this is probably false because rates have changed from 2013 to now and its possible that Mustangs don't lease as well as fusions.

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