Has anyone seen lease rates for a Mustang?

[bubbajones]

I'm hoping to lease a Mustang for tax/business reasons. Does anyone have any data on current lease options for a 2011 GT? Third party options?

 

Thanks.

[akirby]

I'm hoping to lease a Mustang for tax/business reasons. Does anyone have any data on current lease options for a 2011 GT? Third party options?

 

Thanks.

 

Ford does not currently lease mustangs. You'd have to go through a 3rd party.

[Deanh]

Kirbs is correct...but from what I have seen the programs across the board arent that great...I just ran a 38k Taurus limited for 36 months,.,, even went to 10500 miles a year...with a 2k cap reduction payments were...................well, lets just say close to $700, and that was based at 500 over invoice...those are CRAZY numbers, in my experience the ONLY reasons people lease are they are enamoured with a $399 a month pipe dream, ah hell, lets go $499 for the car of their dreams ( ala OUT OF THEIR BUDGET ) or, tax purposes....sad thing is of late, Fords lease rates and rebates most definitely are NOT assisting their sales numbers.....$700 a month and all of a sudden nameplates of certain German status symbols start getting mentioned.....come ON Ford......get with the program.....GET COMPETITIVE, cars are getting SO damn expensive that peoples ONLY option is leasing even on mainstream models...ie Fusion....THANK GOD Ford is finally adressing the B car segment with a vehicle MOST can fiscally afford.......great conversation the other day with a customer...getting pretty damn hard to find a vehicle with ANY merit for sub 20k.....CRAZY!

[NickF1011]

THANK GOD Ford is finally adressing the B car segment with a vehicle MOST can fiscally afford

 

Hmm. Considering the best-selling class of vehicles (even excluding leases most likely) are those in the $20-30K midsize range, I'd say most buyers are well beyond affording B cars.

[bubbajones]

Kirbs is correct...but from what I have seen the programs across the board arent that great...I just ran a 38k Taurus limited for 36 months,.,, even went to 10500 miles a year...with a 2k cap reduction payments were...................well, lets just say close to $700, and that was based at 500 over invoice...those are CRAZY numbers, in my experience the ONLY reasons people lease are they are enamoured with a $399 a month pipe dream, ah hell, lets go $499 for the car of their dreams ( ala OUT OF THEIR BUDGET ) or, tax purposes....sad thing is of late, Fords lease rates and rebates most definitely are NOT assisting their sales numbers.....$700 a month and all of a sudden nameplates of certain German status symbols start getting mentioned.....come ON Ford......get with the program.....GET COMPETITIVE, cars are getting SO damn expensive that peoples ONLY option is leasing even on mainstream models...ie Fusion....THANK GOD Ford is finally adressing the B car segment with a vehicle MOST can fiscally afford.......great conversation the other day with a customer...getting pretty damn hard to find a vehicle with ANY merit for sub 20k.....CRAZY!

 

I'm considering this only for tax purposes, but at those rates I'll get an Audi. I have a local leasing company running some numbers. We'll see. Thanks.

[Deanh]

Hmm. Considering the best-selling class of vehicles (even excluding leases most likely) are those in the $20-30K midsize range, I'd say most buyers are well beyond affording B cars.

and from what i have seen nick....its stretching THEIR budgets to the max as well.....I really do fear a backlash to ever esculating prices...hell, take that 61k Superduty outback....seriously...take it...lol

[Deanh]

I'm considering this only for tax purposes, but at those rates I'll get an Audi. I have a local leasing company running some numbers. We'll see. Thanks.

my point exactly...anything over 500 doesnt seem to cut the mustard

[Deanh]

Hmm. Considering the best-selling class of vehicles (even excluding leases most likely) are those in the $20-30K midsize range, I'd say most buyers are well beyond affording B cars.

depends on payments nick....would YOU lease a Fusion if the Payments were $550?.........

[NickF1011]

depends on payments nick....would YOU lease a Fusion if the Payments were $550?.........

 

I wouldn't lease anything.

[Deanh]

I wouldn't lease anything.

smart man, but irrespective the reaction to 5-600 a month payments ( which is reality given the lack of downpayments ) is not one condusive to sales numbers....I fear the public grasped 0 % as a long term reality....the days of $300 a month are GONE.....especially on any cars worth a crap.... the new $300 a month has become $400.....progress? or just a reflection of ever esculating costs.....the answer to the next question should be enlightening...Bubba, you probably had a pre-determined Idea of what the payment on the Mustang would be....please share, and please, dont be embarrased as i have a vague feeling your numbers will be indicative of most prospective customers.....

[mustang07]

I wouldn't lease anything.

 

 

I've been leasing since 1995 and it's been a great way to go - until 2009. I may have to look at buying a 2011 Mustang later this year instead of leasing if they don't offer any good programs.

[NickF1011]

smart man, but irrespective the reaction to 5-600 a month payments ( which is reality given the lack of downpayments ) is not one condusive to sales numbers....I fear the public grasped 0 % as a long term reality....the days of $300 a month are GONE.....especially on any cars worth a crap.... the new $300 a month has become $400.....progress? or just a reflection of ever esculating costs.....the answer to the next question should be enlightening...Bubba, you probably had a pre-determined Idea of what the payment on the Mustang would be....please share, and please, dont be embarrased as i have a vague feeling your numbers will be indicative of most prospective customers.....

 

You hit the nail on the head when you mentioned the lack of down payments. It used to be a given that to get a cheap monthly payment a substantial down payment would be required. People just don't keep cash on hand anymore like they used to. Shame really.

 

I've been leasing since 1995 and it's been a great way to go - until 2009. I may have to look at buying a 2011 Mustang later this year instead of leasing if they don't offer any good programs.

 

Well, looking forward and at my current vehicles, I don't think leasing would be very smart. I tend to hang on to them too long and drive them way too much for a lease to make any sense. (And if you look at my previously-owned vehicles list, most of those were hand-me-downs or bought used, so they don't really apply.)

Edited April 27, 2010 by NickF1011

[Deanh]

You hit the nail on the head when you mentioned the lack of down payments. It used to be a given that to get a cheap monthly payment a substantial down payment would be required. People just don't keep cash on hand anymore like they used to. Shame really.

 

 

 

Well, looking forward and at my current vehicles, I don't think leasing would be very smart. I tend to hang on to them too long and drive them way too much for a lease to make any sense. (And if you look at my previously-owned vehicles list, most of those were hand-me-downs or bought used, so they don't really apply.)

this is what I mean by backlash...people have had their cake and eaten it to the point of having pre-emptive expectations...invoice opricing WITH a rebate AND 0 %, or 40k Flex's for $499 a month with minimum drives, etc etc.....unfortunately this has set a counterintuitive precedent, and the change to realty has NOT been gradual....

[Deanh]

You hit the nail on the head when you mentioned the lack of down payments. It used to be a given that to get a cheap monthly payment a substantial down payment would be required. People just don't keep cash on hand anymore like they used to. Shame really.

 

 

 

Well, looking forward and at my current vehicles, I don't think leasing would be very smart. I tend to hang on to them too long and drive them way too much for a lease to make any sense. (And if you look at my previously-owned vehicles list, most of those were hand-me-downs or bought used, so they don't really apply.)

dont forget the source of a LOT of said downpayments came from the equity in the Home.......theres another issue....

[NickF1011]

dont forget the source of a LOT of said downpayments came from the equity in the Home.......theres another issue....

 

Only to a point, since nobody was putting any significant money down on their homes either.

[Deanh]

Only to a point, since nobody was putting any significant money down on their homes either.

sorry, I meant to say their downpayment was COMING from home equity...robbing Peter to save Paul...but as we all know thas currently a thing of the past for most ( those that sucked all their equity out...eeeeek ) as a LOYT used it all up and short sold or foreclosed....

Edited April 27, 2010 by Deanh

[NickF1011]

sorry, I meant to say their downpayment was COMING from home equity...robbing Peter to save Paul...but as we all know thas currently a thing of the past for most ( those that sucked all their equity out...eeeeek ) as a LOYT used it all up and short sold or foreclosed....

 

I think the whole theory of people using home equity to buy cars was largely exaggerated. What I meant was that so few people were putting signficant down payments on their homes that they didn't have any equity to draw from for a car even if they wanted to.

[bubbajones]

smart man, but irrespective the reaction to 5-600 a month payments ( which is reality given the lack of downpayments ) is not one condusive to sales numbers....I fear the public grasped 0 % as a long term reality....the days of $300 a month are GONE.....especially on any cars worth a crap.... the new $300 a month has become $400.....progress? or just a reflection of ever esculating costs.....the answer to the next question should be enlightening...Bubba, you probably had a pre-determined Idea of what the payment on the Mustang would be....please share, and please, dont be embarrased as i have a vague feeling your numbers will be indicative of most prospective customers.....

 

 

LOL. I seriously doubt there's anything indicative about my expectations with respect to most prospective customers.

 

Payments in my financial model range from $600/month to $1000/month depending on whether I lease at 5% or purchase at 0% over 3 years. I think I've ruled out the 48 month purchase and lease options. I'm assuming 0 down, just for the simplicity of comparison, but I have a $6k trade in, according to Edmunds.

 

So far, I'm modeling different scenarios of total after tax cost of purchase versus lease, assuming I exercise the purchase option at the end of a 3 year lease. Either 0% interest on a 3 year loan, or 5% interest on a 3 year lease. The alternative is a 3 year lease on a much more expensive Audi at 2%.

 

I'm also tracking total cash payments in the event I stop using it for business. I'd like to know the break even point in the event I drive it for business for a year or two, and then lose my tax deduction.

 

I tried to explain this to the finance guy at the local dealership and his eyes glazed over.

 

I have real numbers for everything except the Mustang lease APR. If that proves to be 10%, I'll just get the Audi.

Edited April 27, 2010 by bubbajones

[Deanh]

LOL. I seriously doubt there's anything indicative about my expectations with respect to most prospective customers.

 

Payments in my financial model range from $600/month to $1000/month depending on whether I lease at 5% or purchase at 0% over 3 years. I think I've ruled out the 48 month purchase and lease options. I'm assuming 0 down, just for the simplicity of comparison, but I have a $6k trade in, according to Edmunds.

 

So far, I'm modeling different scenarios of total after tax cost of purchase versus lease, assuming I exercise the purchase option at the end of a 3 year lease. Either 0% interest on a 3 year loan, or 5% interest on a 3 year lease. The alternative is a 3 year lease on a much more expensive Audi at 2%.

 

I'm also tracking total cash payments in the event I stop using it for business. I'd like to know the break even point in the event I drive it for business for a year or two, and then lose my tax deduction.

 

I tried to explain this to the finance guy at the local dealership and his eyes glazed over.

 

I have real numbers for everything except the Mustang lease APR. If that proves to be 10%, I'll just get the Audi.

color me impressed...a realist...oh, PS...LEASE the Audi if thats the one you go with...they drop quicker than a priests draws in a boys only pre school.....as for the guy at the dealership...are you surprized he glazed...hell i would...i'm NOT a financial advisor....all i can say, is Fords lease on the Mustang is most definitely NOT competitive....and the Mustangs not the ONLY one

[Deanh]

LOL. I seriously doubt there's anything indicative about my expectations with respect to most prospective customers.

 

Payments in my financial model range from $600/month to $1000/month depending on whether I lease at 5% or purchase at 0% over 3 years. I think I've ruled out the 48 month purchase and lease options. I'm assuming 0 down, just for the simplicity of comparison, but I have a $6k trade in, according to Edmunds.

 

So far, I'm modeling different scenarios of total after tax cost of purchase versus lease, assuming I exercise the purchase option at the end of a 3 year lease. Either 0% interest on a 3 year loan, or 5% interest on a 3 year lease. The alternative is a 3 year lease on a much more expensive Audi at 2%.

 

I'm also tracking total cash payments in the event I stop using it for business. I'd like to know the break even point in the event I drive it for business for a year or two, and then lose my tax deduction.

 

I tried to explain this to the finance guy at the local dealership and his eyes glazed over.

 

I have real numbers for everything except the Mustang lease APR. If that proves to be 10%, I'll just get the Audi.

Audi has 0% for three years?....i know Ford hasnt released diddly on the 2011's as of last week,hmmm, must check....yes they do, 500 with 0% for three years...course its all vaporware on a car that hasnt hit the ground yet.....

Edited April 27, 2010 by Deanh

[bubbajones]

Audi has 0% for three years?....i know Ford hasnt released diddly on the 2011's as of last week,hmmm, must check....yes they do, 500 with 0% for three years...course its all vaporware on a car that hasnt hit the ground yet.....

 

The Audi would be a 3 year lease at 2.3% APR (0.00098) and 51% residual. With that kind of deal, there isn't much downside even if I don't drive it from business. Well, aside from the $50k price tag for an S4.

[Deanh]

The Audi would be a 3 year lease at 2.3% APR (0.00098) and 51% residual. With that kind of deal, there isn't much downside even if I don't drive it from business. Well, aside from the $50k price tag for an S4.

nice car...if you dont mind me asking whtas the approx monthly?,,,,and this underlines my point EXACTLY....if you have no competitive programs the shopping choices EXPAND....REGARDLESS of how good the product is ( 5.0 Mustang may be a CRACKER ) if your payments are within a hairs breath of a so called "exotic" sure makes a customers choice difficult to buy American.....fact that its even in the same sentance as an S4, and in a "Better than an M3" blog sure says a lot though....BUT, no competitve "appealing" programs narrows the customer base....are you LISTENING Ford :shades:

[FLLMTR]

Ford really priced the Mustang GT Convertible very high. If a potential buyer could lay down $5K, they are looking at an $800/month payment for a $38,000 convertible GT (+taxes, title, tag).

 

On the other hand, if they open up the Sunday paper they will see lease ads for $45,000 BMW 328iC for $3000 down and ~$450/month + tax. It probably explains why I have yet to see a convertible 2010 Mustang GT driving down Fort Lauderdale beach but BMW's seem to be everywhere.