Leasing...

[silvrsvt]

back over the past couple months there has been many articles on how the Big 3 where stopping leasing or cutting back on it. Whats the current status? My sister is looking at turning in her Explorer this Summer for a Flex or an Escape Hybrid and of course her and her husband have been here all the "bad" stories about leasing.

[Pioneer]

Ford still leases.

[theoldwizard]

Yes, Ford is still leasing.

 

You need excellent credit and the ridiculous high residuals are gone, which has a big impact on the monthly payment or down payment.

 

Best deals are on the few remaining 2008 vehicles.

[Bleed Blue]

My wife and I have leased 4 new Fords so far. In fact We turn in our Fusion next month. Leases aren't for everyone but they work out very well for us. She drives a fully loaded (every option except AWD) V6 2007 Fusion for less then $400.00 per month with no money down. She drives about 10k per year so I was able to even lower the payment by adjusting the mileage cap down from the usual 12 or 15k. Our last two leases have been 24 mo plans. For us, that's $9600.00 well spent. I realize 9600.00 would go a long way toward "owning" a car but that's not what we want to do. I think this time we are going to wait a few months until the 2010 Fusion comes out and take a look at it or even wait to check out the new Taurus coming out. She works (RN) so it's really her deal. She stays in a new(ish) car that I never have to worry about, has all the safety features and it makes her happy. After 27+ years of marriage that's the bottom line...........KEEP HER HAPPY! LOL

[Michael Reynolds]

Yes, Ford is still leasing.

 

You need excellent credit and the ridiculous high residuals are gone, which has a big impact on the monthly payment or down payment.

 

Best deals are on the few remaining 2008 vehicles.

 

Hmmm, I recently helped a friend snatch up a Focus. Her credit wasn't all that stellar and she still obtained a lease through FMC at a reasonable rate. Even GMAC is coming off their absurdly high credit requirements...

[wescoent]

Leasing, in effect, is just paying for depreciation.

 

If you want a new car, and want a new car on a regular basis, there's no other way to go.

[Ralph Greene]

I usually pay cash for my vehicles. but when this recession is over, that year the stock market will probably go up 30-50%. So instead of paying cash for a car that year (which would probably lose at least 25% of it's value), I would keep that money invested, and lease a car. I always lease if I'm buying in a recession, because I have much better uses for my assets. But when markets are high, I just pay for them.

 

For most people, leasing is a very expensive way to drive an automobile. It only makes sense to lease for folks who have a better use for their money, or for that odd situation where the business is paying (still expensive).

 

But for people who don't have much money, and who lease because they get to drive something nicer than what payments would allow them to drive, they are just kidding themselves....assuming those same folks have any interest in growing their net worth. Making payments while you drive the car, and then driving it until it dies (or 8-10 years)....costs less than 1/2 of what driving new all the time costs.

 

My experience from listening to folks explain why they lease is because they don't have any money, and can't afford to repair an older car. And they don't understand how much new cars cost them over a lifetime. I calculate, on average, if folks who always buy new, whould double the length of time they own a vehicle, could retire with an extra million or so. And I know what transmissions, etc cost for older cars, but still cheap compared to always buying a new car. But then, to drive an older car, you have to be able to afford to repair it. Have you ever noticed that wealthy people don't buy new cars very often? (I mean wealthy, not hi income broke people)

Edited December 31, 2008 by Ralph Greene

[BORG]

Leasing never ended at Ford, although the lease deals are not as robust as they once were. They are making greater efforts to push purchases or 36 month leases.

[FordBuyer]

Hmmm, I recently helped a friend snatch up a Focus. Her credit wasn't all that stellar and she still obtained a lease through FMC at a reasonable rate. Even GMAC is coming off their absurdly high credit requirements...

 

Here in Metro Detroit, I have noticed that the lease rates are only slightly higher than before. Still good deals abound. December is the best month to buy a new vehicle and previous year model is better yet. Unless I had to have a new vehicle, I would for example wait until next December to buy a 2009 model. I would be looking at new 2008 models if I were buying now. My present 2002 Taurus I did just that. The 2003 models were already out and I went for the new 2002 Taurus. I did the same with my '97 and '99 Tauruses bought new. I have my eye on the new Fusion, and I will wait for a December and buy the previous year's model new. A Fusion SEL I4 with the new engine and six speed trans is looking like the way to go. Exceptional fuel mileage almost as good as the Focus if gas prices go back up which they will at some time, and a great handling vehicle with gobs of features.

[FordBuyer]

I usually pay cash for my vehicles. but when this recession is over, that year the stock market will probably go up 30-50%. So instead of paying cash for a car that year (which would probably lose at least 25% of it's value), I would keep that money invested, and lease a car. I always lease if I'm buying in a recession, because I have much better uses for my assets. But when markets are high, I just pay for them.

 

For most people, leasing is a very expensive way to drive an automobile. It only makes sense to lease for folks who have a better use for their money, or for that odd situation where the business is paying (still expensive).

 

But for people who don't have much money, and who lease because they get to drive something nicer than what payments would allow them to drive, they are just kidding themselves....assuming those same folks have any interest in growing their net worth. Making payments while you drive the car, and then driving it until it dies (or 8-10 years)....costs less than 1/2 of what driving new all the time costs.

 

My experience from listening to folks explain why they lease is because they don't have any money, and can't afford to repair an older car. And they don't understand how much new cars cost them over a lifetime. I calculate, on average, if folks who always buy new, whould double the length of time they own a vehicle, could retire with an extra million or so. And I know what transmissions, etc cost for older cars, but still cheap compared to always buying a new car. But then, to drive an older car, you have to be able to afford to repair it. Have you ever noticed that wealthy people don't buy new cars very often? (I mean wealthy, not hi income broke people)

 

 

I leased my last three vehicles and it fit my needs at the time. My first two leases were 24 months and my last 36 months. My last vehicle leased, the 2002, was the best of the three vehicles with no recalls and runs like top, so I decided to buy it outright at end of lease and paid cash for it. With leases, I really got tired of the car payments, and have not had a car payment in three years now and it's great!.

 

I'm semi-retired now, and good idea about when to pay cash or not. I don't want to spend the cash I have now on hand which represents about one year of living if I went completely broke. And I'm sure not going to sell stock in this market unless I fear the company is tanking completely. Not a good time to sell investments. Like you, if the stock market goes back up to 13,000 or so and stays there for awhile, I would be willing to pay cash for new vehicle. If I had to buy a vehicle right now, I would probaby buy two year old used vehicle and take out auto loan with 20% down. I can afford to wait and hopefully buy new when and if economy recovers.