FordBuyer Posted February 27, 2013 Share Posted February 27, 2013 One feature I don't like though in all the new auto sale ads are the best lease rate always include employee discount for most part. Ford always does this. I have noticed lately though that GM gives employee and non employee prices and in some cases say in ad that nonemployee can get same price as employee discount. Ford in its ads needs to be more sensitive to non Ford employees and retirees. Over the years, SE MI has become less auto centered with more and more employees non automotive. $30-$50+/month more in lease can lose sales as nonemployee seeing ad expects same deal and not expecting to pay over $1000 more over 2 year lease deal. Another Detroit News story says that middle class in most regions of U.S. can't afford the average price of a new vehicle ($30,000) if you go by average income and monthly payment not being over 10% of income. Many buying new vehicles today are overextending themselves big time. The most average income auto buyer can afford comfortably is $17,000 (new Fiesta) if buying outright. So I guess this problem explains leasing becoming so popular. Low monthly payment for very expensive vehicle that you never really own. Click here: Leasing drives Metro Detroit auto sales | The Detroit News | detroitnews.com Quote Link to comment Share on other sites More sharing options...
akirby Posted February 27, 2013 Share Posted February 27, 2013 I'm pretty sure those are not Ford ads - they're either individual dealer ads or local dealer association ads. And Ford doesn't control which prices dealers advertise. Quote Link to comment Share on other sites More sharing options...
BORG Posted February 27, 2013 Share Posted February 27, 2013 Leasing is fabulous, I've never had to a fix a car with an expired warranty Quote Link to comment Share on other sites More sharing options...
FordBuyer Posted February 27, 2013 Author Share Posted February 27, 2013 Interesting article on new vehicle affodability by region. No wonder why lease deals are so popular and without them like in 2009 the auto industry starves to death: Click here: New Cars Increasingly Out of Reach for Many Americans - Yahoo! Finance Quote Link to comment Share on other sites More sharing options...
lfeg Posted February 27, 2013 Share Posted February 27, 2013 That is one reason that my last "newer" car was used. With the annual miles that I pile on, a lease (with the additional miles up front) gets prohibitively expensive. More than outright financing. But being a cash buyer does get you a few advantages both new and used. And todays cars can easily make 200K miles with routine maintenance. I know too many people who lease and have to park the leased car for 3 to 6 months near the end of the lease to minimize the overmileage hit. Quote Link to comment Share on other sites More sharing options...
Pioneer Posted February 27, 2013 Share Posted February 27, 2013 Leasing is fabulous, I've never had to a fix a car with an expired warranty And I haven't had a payment since 2009. I win. 2 Quote Link to comment Share on other sites More sharing options...
Deanh Posted February 27, 2013 Share Posted February 27, 2013 And I haven't had a payment since 2009. I win. not into leasing myself, find a car I actually like and keep it, usually till it dies, although the Fiesta SES will be traded in on an ST....but people lease 80% of the time from what I have seen, it enables them to get a lot more vehicle for their budget, my only issue is if one continues leasing, the payments are continuous at the 2 or 3 year re-up..... Quote Link to comment Share on other sites More sharing options...
silvrsvt Posted February 27, 2013 Share Posted February 27, 2013 I glanced through the article quickly, but what is the criteria they are using for a down payment? The numbers seem screwy to me...like they are putting down next to nothing for a DP or not even factoring in a trade in value on the new purchase. Just as an example, I'm looking at a under $400 a month/15k a year lease payment on a SHO after Z plan and a 3K incentive, with only putting down about $4.7K for everything. I could buy it outright if I wanted to wipe out my savings, so I figured I'd lease it for a couple years, still be able to save $$$ and then have a nice DP for Fusion ST in 3 years and still have lots left in savings. I nearly fell over when I saw the Trade in value of my 7 year old Mustang GT if I went that route...its still around 9K in the worse case rating according to KKB.com. Thats ALOT better then what I got with my old Mustang GT...I think I was lucky to get 7K for it when I sold it in 2002 or so at 4 years old. Even my fiancee's Escape is holding its value pretty well even though it has 85K miles on it after 4 years or so. Quote Link to comment Share on other sites More sharing options...
jpd80 Posted February 27, 2013 Share Posted February 27, 2013 (edited) And I haven't had a payment since 2009. I win. One thing though, if your vehicle is two or three years old an gets written off in a crash, you get another lase vehicle but the cash customer gets a used car figure payout. Investing your cash and leasing can sometimes be better especially with low interest and incentives. Edited February 27, 2013 by jpd80 Quote Link to comment Share on other sites More sharing options...
NickF1011 Posted February 27, 2013 Share Posted February 27, 2013 I glanced through the article quickly, but what is the criteria they are using for a down payment? The numbers seem screwy to me...like they are putting down next to nothing for a DP or not even factoring in a trade in value on the new purchase. Just as an example, I'm looking at a under $400 a month/15k a year lease payment on a SHO after Z plan and a 3K incentive, with only putting down about $4.7K for everything. I could buy it outright if I wanted to wipe out my savings, so I figured I'd lease it for a couple years, still be able to save $$$ and then have a nice DP for Fusion ST in 3 years and still have lots left in savings. I nearly fell over when I saw the Trade in value of my 7 year old Mustang GT if I went that route...its still around 9K in the worse case rating according to KKB.com. Thats ALOT better then what I got with my old Mustang GT...I think I was lucky to get 7K for it when I sold it in 2002 or so at 4 years old. Even my fiancee's Escape is holding its value pretty well even though it has 85K miles on it after 4 years or so. Add in the fact that no leases out there would cover my (or yours it looks like) mileage requirements, or if they did, it would cost me an extra small fortune to do it. Quote Link to comment Share on other sites More sharing options...
silvrsvt Posted February 27, 2013 Share Posted February 27, 2013 Add in the fact that no leases out there would cover my (or yours it looks like) mileage requirements, or if they did, it would cost me an extra small fortune to do it. Actually I only work 15 miles from work now...LOL I did the math and just driving to work is about 7K miles. The lease rate for my SHO (according to the Ford website) is about $385 a month for a 36 month lease at 15K miles a year...the difference between a 13K and 15K lease was less then 20 bucks a month. I figured the SHO would be my work car and the primary car for the weekends to give my finacee's Escape a break that has too many miles on it now, unless we need to go to Home Depot or Lowes Quote Link to comment Share on other sites More sharing options...
aneekr Posted February 28, 2013 Share Posted February 28, 2013 I glanced through the article quickly, but what is the criteria they are using for a down payment? 20%, the bare minimum generally recommeded by personal finance experts. Quote Link to comment Share on other sites More sharing options...
Hoser768 Posted February 28, 2013 Share Posted February 28, 2013 And I haven't had a payment since 2009. I win. Me either. I got the clear title to the Five Hundred in the mail the same day I got notice that my plant was closing and I was losing my job. Felt pretty good not having that payment to worry about. 1 Quote Link to comment Share on other sites More sharing options...
BORG Posted February 28, 2013 Share Posted February 28, 2013 (edited) I treat a car like I do any other piece of tech I own, something that should be replaced promptly by the next best thing. So leasing helps to keep that sustainable. Edited February 28, 2013 by BORG Quote Link to comment Share on other sites More sharing options...
aneekr Posted February 28, 2013 Share Posted February 28, 2013 I treat a car like I do any other piece of tech I own, something that should be replaced promptly by the next best thing. So leasing helps to keep that sustainable. That approach can be unnecessarily expensive and wasteful for most consumers. Quote Link to comment Share on other sites More sharing options...
sullynd Posted February 28, 2013 Share Posted February 28, 2013 "Next best thing" you went from an MkX 4, to an MkX 4s. You are gonna be pissed when the MkX 5 shows up (Ftr your new X is sharp) 1 Quote Link to comment Share on other sites More sharing options...
akirby Posted February 28, 2013 Share Posted February 28, 2013 To lease or not really isn't the question. The question is how long do you want to keep the vehicle? If you only want or plan to keep it 2 or 3 years then leasing is the easiest way to do that. You can lease and still keep the vehicle longer in which case it's just another form of financing. Quote Link to comment Share on other sites More sharing options...
NickF1011 Posted February 28, 2013 Share Posted February 28, 2013 Actually I only work 15 miles from work now...LOL I did the math and just driving to work is about 7K miles. The lease rate for my SHO (according to the Ford website) is about $385 a month for a 36 month lease at 15K miles a year...the difference between a 13K and 15K lease was less then 20 bucks a month. I figured the SHO would be my work car and the primary car for the weekends to give my finacee's Escape a break that has too many miles on it now, unless we need to go to Home Depot or Lowes Gotcha. I'm putting 20,000+ on mine a year. Leasing wouldn't be feasible for me. Quote Link to comment Share on other sites More sharing options...
BORG Posted February 28, 2013 Share Posted February 28, 2013 "Next best thing" you went from an MkX 4, to an MkX 4s. You are gonna be pissed when the MkX 5 shows up (Ftr your new X is sharp) Ha, well the auto industry tends to be a bit more predictable so I hope I've timed it right for the next all-new car....which is actually a downside to leasing...you don't have control over the termination date. Quote Link to comment Share on other sites More sharing options...
BrewfanGRB Posted March 3, 2013 Share Posted March 3, 2013 (edited) Add in the fact that no leases out there would cover my (or yours it looks like) mileage requirements, or if they did, it would cost me an extra small fortune to do it. Same for me. Monday is my car's 4 year anniversary. It will have 101,400 put on it in those 4 years. Leasing does not, would not and will not ever work for me. I can keep it another 2 years, it'll be ~ 151k. I can get a smallish downpayment for it or sell it for similar to my sister for my niece to drive and just get another new car. NBD, really. Edited March 3, 2013 by BrewfanGRB Quote Link to comment Share on other sites More sharing options...
silvrsvt Posted March 3, 2013 Share Posted March 3, 2013 20%, the bare minimum generally recommeded by personal finance experts. I went an re-read the article...I didn't see anything about how long the financing term was...I don't think its ridiculous to have a 60 month car payment these days since cars should last 5 years with no major issues cropping up on them for the vast majority of people. If you extend out your payments for a year over a 48 month loan, it makes a difference of about $100 bucks or so. Quote Link to comment Share on other sites More sharing options...
jpd80 Posted March 3, 2013 Share Posted March 3, 2013 (edited) Volts will be back with $180/month terms and now that GM set the precedent last year, it's now the only way GM will be able to shift significant volumes of Volt. Edited March 3, 2013 by jpd80 Quote Link to comment Share on other sites More sharing options...
silvrsvt Posted March 4, 2013 Share Posted March 4, 2013 IMO I think the new norm is going to be people keeping cars longer then they have been, unless they are leasing...cars can easily going 150K without any major issues cropping up on them, and even with the way I was driving (20-25K miles a year) it allows you to pay the car off and then save for another 2-3 years for a down payment in addition to trading in the car. Even with my Mustang with nearly 120K miles on it and a couple accidents on it (one major, two minor rear endings not my fault) I should still be able to get about (worse case on KBB.com and other sites) $9K for the car, which even on a 40K car, is 22.5% of the down payment. The sticker on the car was about $29K 7 years ago, and to have 31% of value left in the car after that long and that many miles on it is pretty good. I'm at the point now that I'd rather just keep the Mustang and lease my next car for 3 years since I have no clue as to what gas prices are going to do and overall the payments per month are about $100 bucks cheaper and doesn't wipe out my savings I've been building for the past 2 1/2 years or so. I can replace the DP moneys in a few months from savings that I'd be putting in anyways, make the car payment and still contribute to my savings account at the same rate I've been doing without a car payments. In three years I'll have even more $$$ socked away and be easily able to put down a decent amount of cash at the end of the lease for a new car to finance it. Quote Link to comment Share on other sites More sharing options...
papilgee4evaeva Posted March 4, 2013 Share Posted March 4, 2013 Same for me. Monday is my car's 4 year anniversary. It will have 101,400 put on it in those 4 years. Leasing does not, would not and will not ever work for me. I can keep it another 2 years, it'll be ~ 151k. I can get a smallish downpayment for it or sell it for similar to my sister for my niece to drive and just get another new car. NBD, really. Dang, man. You either do a ton of road trips or you commute to Chicago. Quote Link to comment Share on other sites More sharing options...
BrewfanGRB Posted March 4, 2013 Share Posted March 4, 2013 Dang, man. You either do a ton of road trips or you commute to Chicago. 38 miles one way to work. And about 20 Brewers games a year (which is about 300 miles round trip). 28 trips to MKE total in 2011. Lots and lots of driving. Quote Link to comment Share on other sites More sharing options...
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