family-man

Im looking at purchasing a 2014 Ford F150 XLT Supercrew, 4x4, 5.0L, 302A pkg, 3.55 E-Lock Rear axle, HID headlamps, power rear sliding window w/ defroster. The current offer is employee pricing, 0.49% lease for 2 years and for financing its 2.49% 60 mths, or 3.49% 72 mths. I would like to obviously take the lower percentage rate but ONLY if it makes sense, and avoid paying the interest on 3.49%

MSRP with all options is $48,200. Ive been calling some of the bigger dealers which sell in the masses and have a lot of full page ads in the Toronto Sun newspaper and the best deal I got is $32,000 + 13% H.S.T. ONLY with NO OTHER FEES! They say that they are selling this truck $1400 UNDER dealer cost to make way for '15's. I believe it due to the fact I called 5 or 6 dealers that didn't advertise in the SUN and all were $34,000-$35,500. Used 2012-2013 f150 XLT's with 10,000-30,000km, dealers are asking $30,000!!!

I have never dealt with leases before and I DO plan to keep the vehicle for 6-8 years at minimum. Before I sign any type of paperwork I would like some opinion from CFOT. I made an appointment to go in Monday evening and I would like to be informed so they don't screw me.

-With the finance rates being high compared to the lease rates, would it be smart to lease for 2 years at .49% then buyout?
-If I do plan to buy out, is there any fees to expect?
-Am I leasing my residual at the MSRP or the sale price? I don't really understand this residual crap.
-anything else I should be informed of ???

Only thing dealer mentioned is that if I needed to finance the buyout, if it were todays rate, it would be 4.99% (Used car lot finance rate)

slickpete83

i would wait for the new redesigned 2015 F150 , i heard its 700lbs lighter

Mad*Max

the problem with the two year lease option is that you will get screwed after the two years when you have to re-finance it, unless you have the cash to pay off the lease residual - if it were me, since 2.49% is a good rate I would just go with that (as long as the monthly payments work for you)

infernobuster

After leasing a vehicle in the past, i wouldnt ever do it again.

Id rather have a payment with something ill own after a few years.

If your looking at a F150, I have a great hook up for the trucks if interested and your in the GTA area. Drop me a line and ill send you the info ..

camirocz

At 2.49 per cent stretch out the financing for as long as they will offer it.

family-man

I do plan to keep the vehicle for AT minimum 8 years. I will not be driving more than the 20,000 km's they allow. I just wanted to take advantage of the 0.49% lease rate for the first 2 years, only if it makes sense and there are no "gimmicks" or surprises afterwards. I can afford the lease rates per month, which is $426/mth, compared to $685/mth @ 2.49% for 60 mths or $595/mth @ 3.49% for 72 mths.

e-sarge

You might want to ask if the low rate also applies to the 'carrying charges' portion of the lease (on leases, you pay the interest on both your monthly 'usage' portion as well as the financing carrying cost of the portion that the leasing company holds). If they're both at the low rate, then maybe it could make sense for you.

It is still a gamble that you can get a good interest rate on your buy-out (unless you can save up enough cash between now and then to pay down the buyout, in which case you will certainly come out ahead).

Mad*Max

after the two years how do you plan to finance it, through the bank?

gaspeddle

In my opinion leases are great for people that get a new vehicle every 2-4 years and usually always have a vehicle payment. Effectively you're only paying for the portion of the vehicle's value that you're consuming. The key is determining the vehicle's value in 2-4 years, which is why they put various restrictions on it to help quantify how much of the value you're using up. Car manufacturers love it because the vast majority of people (especially in the US) buy only based on the monthly payment, and with leasing you can get more vehicle for the same payment amount.

If you plan on keeping it for 8 years, you might as well buy it. If you lease it for two years and then take a loan out for 4 years, you should just finance it over 6 years as 3.49% is a fabulous rate for 6 year money.

Keep in mind two things:
First, there is no actual cheap financing - the factory pays the financing company the equivalent of what the lost interest was so that it appears that the interest YOU are paying is low. That's why it's usually $X off or low rate financing... but usually not both, with various combinations.

Second, if you need to borrow money in the future, the lease shows up as personal debt however there is no asset because the lease company owns the vehicle. When you buy the vehicle, you'll have the debt and the asset as well as the title is in your name.

Basically, find the combination that works best for you and how you plan on consuming the value of the vehicle over your expected time horizon.

Jim

Black 03 Z06

Just took delivery of a 2014 F150 Lariat this week. Leased it for two years using Ford's money at .49% and will pay the rest out in cash at the end of 24 months. I agree with some others that I would not have leased another vehicle unless the plan was to purchase it. Too many people were screwed by the fine print and I resented the treatment you got returning the vehicle.

I looked at all options of buying over 36, 48, 60 and 72 months at various rates and for me the lease was the best deal. I wanted a 2014 not the aluminum 2015, I would want to see how that is going to work out, definitely not an early adopter with that one.

Good luck, we had a 2010 and it was a great truck. Didn't even bother looking at GM.

KOZ

If you pay the lease out in cash as above you'll do better. But if at the end of the lease you have to borrow to pay it out the bank will give you a loan for a used car for under 6-8%

Unless you have a line of credit to use, and even those will still be higher than Ford's offering.

66L72

Do yourself a favour and get a Ram.

I have a new 2014. Great truck.

JMHO.

formula1nut

I leased for 15 years and gasspeddle has it right. Leases are great if you are looking to flip cars frequently, or pay cash at the end of the lease term. (Also really good if you can write off car expenses on your taxes.) If you know you are going to keep the vehicle and know you will have to finance the buyback the lease does not make a lot of sense. That is particulaely the case now as the only way interest rates can go is up. At the end of the lease term interest rates may well be higher. In that case you might be screwed paying higher rates on a big chunk of money.

Not much has been said here about the buyback. It is the critical lease number! It drives the lease payment AND what you will have to finance at the end. High buyback=low lease but larger monthly fees when you finance the buyback amount.

In the 90's and early 2000s GM had outrageously high buybacks. That meant low monthly lease payments. It also meant nobody in their right mind would buy the car at the end of rhe lease......you could buy the car way less on the street! Great way to get return lease customers and market share if you are GM but high risk as they lose $$$ on every car coming off lease. That is why GM got out of leasing for a while and also substantially caused their financial problems.

If you do decide to lease try to negotiate the buyback down. If it is a Ford lease all dealers should be about the same but you might be surprised. On one of my leases I got it reduced by over $5000. Only leased car I ever bought.

At the end of the day if you keep the vehicle it is a case of pay me now or pay me later!

RedZ4me

First of all, no one sells 'under dealer cost', the cost you know, now the real dead cost...........they don't make those fancy dealerships by losing money

2nd, - the trouble with leases is the ownership is NOT in your name and believe me with real world experience - they have alot of say when something happens like an accident, fender bender or what happened to me in the past - hail damage.

3rd - buyback value percentages as limited by the manufacturer (the leasing company) and usually maxed out - this means the number is usually at it's highest - highest buyback keeps the payments as best as possible.

4th - mileage allowance - be aware in case you drive alot - unless you guarantee the buyback, it could hurt you at the end.

For what you described, pay more monthly and finance it

akira88

Sounds like you are talking to either Yonge/Steeles or East Court Ford Lincoln. Both dealerships are owned by the same person, so the deals are essentially the same. Because they are Canada's largest F150 volume dealer, they get some sort of incentive from Ford. I have no idea how it works, but I went to several other dealers in the West end, and nobody could come close to their price.

I picked up my 2014 XLT from East Court a couple months ago. The buying experience is a bit better there vs Yonge/Steeles IMO.

Everyone else has mentioned the main points. The lease rate is great, but if you plan to keep the truck for an extended period of time, you are probably better off to take advantage of the financing.

Lastly - You might also want to consider tacking on the ATR tires. I think it's a $500 option, but those Perelli Scorpions are decent.

The 2015 is a great truck...but there will be no discount like what they are offering on the '14's for a long, long time.