Purchase, Finance or Lease your new Mustang?

[MustangCollector]

this poses a slight dilemna for me for a few reasons. First i would prefer to lease the car for 24 months to see if there are any major quality faults in this new platform rather than commiting to a full purchase.

Dealers noted only Ecoboost models can be leased and not a GT.

Now back when the 5th Gen Camaro first came out it was the same scenario and I bought the car outright, it was the biggest $42,000 waste i have ever spent as the car was the biggest POS i ever owned. I can go on for pages why the Camaro was so bad but reality it was GMs Bailout car during the recession and had alot of design flaws in it and it was rushed to market.

I am just afraid jumping with both feet in on the Mustang right off the top after my horrible experience with GM prior on a new Muscle Car. I lost a ton of money when I sold the Camaro and dont want to make the same mistake twice.


What are you guys planning to do and how will you finance your purchase?

Ideally i would want to keep the new GT for 2 years or until the Shelby GT350 is released and then trade it in. If the 2015 Mustang is that much better as they say it is I think i would like to buy one and keep for many years and enjoy it.

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[Patrick S]

Leases tend to be expensive, and oppressively limiting on actually using the car. i can not see any situation in which i would ever lease a car.

GM has been riddled with problems with the bailout and it is showing in the quality of their cars. the 14 vette is getting recalled left and right and no one wants to buy the 15s. Yes, you hear the Chevy guys spouting off about how much better their cars are, but put fact sheets together and you have a very different story.

Its your cash, and its a bummer that GM has left this taste in your mouth. There are a bunch of us here who are buying this car and, as you say, Jumping in with both feet. here is why i am not afraid of doing this:

look how long everyone is waiting for their vehicles. Ford does not want to ship a car that they are going to have to completely recall the way Chevy is now. they are going about this all right.

just my 2 cents.

 

[POOPonYOU]

I was told by my sales guy that I could lease the GT. Don't know what to think. I deal with this guy a lot so I doubt he would lie to me since I get him a lot of business.

 

[BrainFreeze]

My plan is to finance the car 4-5 years with a big down payment.

Instead of "jumping in with two feet" again, why not finance some of it or wait to see how the quality is with the 2015s? I don't see there being any huge quality issues like there has been with GM. Also, the coyote engine has been fine tuned for years now...

 

[volsfan0911]

leasing only makes sense in certain limited scenarios (business use, tax deductions, etc.) Navy Fed has 60 month loans at 2.29% APR so it makes financing very easy. $10K down, payments wouldn't be bad and there's no early payoff penalty. It's still pretty cheap money and definitely closes the gap between purchasing and leasing.

 

[minicobra]

Not sure yet, I really would consider trading the GT in for a GT350 depening on specs and price next year. So, it might make more sense to due a short term lease.
With financing all the sales tax gets rolled into the loan, on leasing you just pay it monthly. If I trade the car in a year with a purchase I would be paying $3500 in sales tax, but with a lease, maybe around $600.
I hope I'm figuring that out right LOL, I might need to re-asses.

in the last 12 years, I've never kept a car for more then 3 years, the shortest was 9 months. So, maybe leasing is the better option for me. Idk??

 

[Wildcat]

I was told by my sales guy that I could lease the GT. Don't know what to think. I deal with this guy a lot so I doubt he would lie to me since I get him a lot of business.

Hmm, that's interesting. I thought Ford never allowed leases on GT models.

And I agree with others here about leases. If you're one of those people that wants a new car every couple years, it's probably not a bad route, especially for luxury cars where you can part ways with them before they manifest expensive problems.

Leases are also good for business and tax purposes.

But obviously you are limited in how much you can drive the car. And you have to read the fine print and dig into the numbers to make sure you're getting a good deal. Even the dealers themselves sometimes screw up the numbers on leases.

With financing as cheap as it is, it really is the best route, especially if you don't plan any kind of tax deduction or business use for the car.

 

[MustangCollector]

I tend to lease all new cars under my biz for a write off. The only cars i own are my collector cars since they are highly valuable where as new cars are not.

4 of my friends have C7 vettes, 2 of them had blown engines and both are fighting for a warranty repair over the past 2 months. My 3rd friend leased his, his engine harness went on fire and his engine blew. He was able to lemon law the car easily. In NY if the car is leased and if the car becomes a total POS they tend tend to favor leased cars for some reason.

Im fairly confident in Ford over anything GM is doing but you never know these days. GM does some sleezy stuff such as the first 100k camaros they built in 2009 all had rebuild diffs and tranny all from Pontiac G8s along with other junk from left over pontiacs.

All in all im dying to drive the new 2015 and if the car puts a huge smile on my face il figure out what to do that day i go for my test drive.

 

[volsfan0911]

Not sure yet, I really would consider trading the GT in for a GT350 depening on specs and price next year. So, it might make more sense to due a short term lease.
With financing all the sales tax gets rolled into the loan, on leasing you just pay it monthly. If I trade the car in a year with a purchase I would be paying $3500 in sales tax, but with a lease, maybe around $600.
I hope I'm figuring that out right LOL, I might need to re-asses.

in the last 12 years, I've never kept a car for more then 3 years, the shortest was 9 months. So, maybe leasing is the better option for me. Idk??

For tax purposes, you'd have to check with the dealer and take what state you're in under consideration. Some states only tax the portion of the car you lease. Other states, like the crappy one I currently live in (Maryland) tax the whole purchase price of the car regardless of lease vs. finance. Another reason leasing doesn't make any sense for me in my current scenario.

Keeping a car for only 3 years and low mileage could make a lease advantageous in your case. Hit the interwebs and read some lease vs. buy decision matrices. Years ago, when I had horrible credit and was young & didn't know any better, I allowed a stealership to take horrible advantage of me on a bad lease. Learned my lesson, improved my credit drastically over the years and now I take great joy in terrorizing dealers and making them find me the best deal Actually, I do research, determine a fair price (car dealers do have to make a reasonable profit) and roll from there. Walking out the front door can make for a great negotiating tactic

 

[Tim Hilliard]

I just got approved for a 72month loan at 2.49%. I'm pretty sure that's like free money, I can drink that much of a finance charge in a single weekend, let alone a month. Seems like a much better deal than leasing, unless you have money to hide in a business.https://www.dcu.org/account-services/calculators/auto-how-much-loan-payments.html?LOANAMOUNT=38%2C000.00&DOWNPAYMENT=10%2C000.00&TERM=6&TERM_UNITS=Years&INTERESTRATE=2.490+&SHOWAMORTIZATIONSCHEDULE=on&COMPUTE=COMPUTE&CALCULATORID=PC09&TEMPLATE_ID=www.dcu.org_2&PostBack=true#results

 

[Swagthony]

I just got approved for a 72month loan at 2.49%. I'm pretty sure that's like free money, I can drink that much of a finance charge in a single weekend, let alone a month. Seems like a much better deal than leasing, unless you have money to hide in a business.https://www.dcu.org/account-services/calculators/auto-how-much-loan-payments.html?LOANAMOUNT=38%2C000.00&DOWNPAYMENT=10%2C000.00&TERM=6&TERM_UNITS=Years&INTERESTRATE=2.490+&SHOWAMORTIZATIONSCHEDULE=on&COMPUTE=COMPUTE&CALCULATORID=PC09&TEMPLATE_ID=www.dcu.org_2&PostBack=true#results

Who is it through?

 

[Tim Hilliard]

DCU They are Boston Based, rates are very low, down to 1.49% depending on term/score.
I'm thinking time to refinance Wife's Jeep, now that more score has gone way up. It would save about $100/month from dealership financing. I just did it online, I think I may be able to get a little better than online quote, I only included myself on the app. https://www.dcu.org/loans/auto-loans.html#rates

 

[DeColores]

I never really look at leasing, could it make "cents" driving about 20,000 miles a year?

Thank you,

DeColores

 

[GNS]

Do what I'm doing - wait until the 2017 / 2018 model, possibly longer. Improvements are sure to come down the line. Also, shit is expensive in Canada and I would not purchase any Ford car without incentives/factory allowances and employee pricing. I HAVE to know that I can keep the car for at least 6 years or more as a daily driver here (especially in snow with good winter tires), otherwise the sting of depreciation hurts too much.

 

[rickstang]

It depends if you want to get a new car every 3 years or will keep a car you buy for a longer time. I like a new car with no maintenance costs so I lease and get the fun and excitement of a new car on a regular basis. Also, my thinking is that cars are a lousy investment, the depreciation is deadly over the first three years, so I'd rather keep my money invested and making money than buying a depreciating asset. Another factor is monthly payments, you can usually get more car for less money with a lease. Everybody's situation is different so you have to consider your own income, investments, willingness to have perpetual car payments, etc. And as someone noted, leases are more complicated than standard financing so do your homework if you go that route.

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