Leasing a car.......... - Page 4 - Ford Mustang Forum
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LEasing got a real bad name in the 80's. Where everything was a open end lease. You had to buy it at the end no matter what. If you gave it back you owed what it did not get at auction. Today 90% off the leases are closed end. Also the old days Sales price was not disclosed on the lease. Now it is. leasing is just another option to buy a car. It is not always cheaper. A lot of times it is the same payment for a 36 month lease as a 60 month buy. Leasig is not for everyone. A good salesperson will tell you the positives and negatives and let you make your decision. A Camry I would def lease.

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Leasing is a great option in alot of ways. The biggest thing about leasing is it gives a hedge against future values. You are typically coming to the end of the lease before any major services are due. Cars that hold their value well typically do not lease as well. Because they are typically cars that do not have rebate are special rates. Also supply. Because there are so many Toyota Camry's out there they hold their value worse then people think. So you take advantage of the lease that Toyota offers. The residual will be more at the end of the lease the the car is worth. If it isn't trade it or buy it out. Also GAP insurance is built in protection on the lease.I love leasing on most of the cars I have owned through the years. Always worked great for me. Never a problem getting out of a lease early if needed. I nevr would lease a Mustang though. They hold their value to well.
In June of 2011 the 3 year residual was 54% on a V-6 auto and 52% on a V-6 Manual. Definitely better than the 40% you get on a Ford Edge but not great compared to say a Cadillac CTS. My buyout is 12k something - I'd have to look. Based on what 3-4 year old V-6 Mustangs go for in my area during the summer time I could potentially make a grand or two if I purchase it at the end of the lease and sell private party. Don't know if it will be worth the hassle though.


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With cars that hold their value. They will have equity at the end of the lease. The manufactuers know this and set the residual lower hoping that the clients turn them in off lease. Happens a lot because nost people think that there is never equity in a lease.
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If Ford would have used a true reesidual on your Mustang. The lease payment would have been $30 to $60 dollars less a month. But when you put the math to a 60 month loan vs a 36 month lease on a Mustang and get rid of the Mustang after 56 months. You typically will have more equity in the Mustang. Hell I traded a 2007 Mustang GT with 82k on it for $13.5K. They hold their value extremely well
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If Ford would have used a true reesidual on your Mustang. The lease payment would have been $30 to $60 dollars less a month. But when you put the math to a 60 month loan vs a 36 month lease on a Mustang and get rid of the Mustang after 56 months. You typically will have more equity in the Mustang. Hell I traded a 2007 Mustang GT with 82k on it for $13.5K. They hold their value extremely well
Yup. I agree. Dealers sometimes would like you to believe they don't hold value well, but try and find a 2005 GT for under 10K. It's pretty darn hard and that car is 8 years old.

Fact is, Mustangs do hold their value well. Especially Verts and GT's. Coupe V6's IMO will be the cheapest of the lot and for good reason. It's the most common car. But, All Mustangs are popular. People love them. There will always be a market for them.

I "skyped" my wife the other night (Sounds so dirty doesn't it? haha) and we both agreed the best thing to do is just pay the Escape off and keep it. She said if it had not been for the rental Camry she would have never have known she loved the car so much. She says she misses having a car. I don't blame her.

So at any rate, I am still all about debating the Lease Vs. Purchase in this thread. Let's keep the convo going. I don't have time to look at the links above, I will later.

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With cars that hold their value. They will have value at the end of the lease. The manufactuers know this and set the residual lower hoping that the clients turn them in off lease. Happens a lot because most people think that there is never equity in a lease.
Fixed it for you.

Most people are right - there is no equity in a lease. There is value left (residual) in the vehicle but the lessee has no equity (ownership of the value) at the end of the lease. The actual value of the vehicle at the end of the lease may be higher (or lower) than the residual in the contract but there is no equity - the lessee has no ownership. The lessee merely has the option to buy the vehicle for the agreed residual value or walk away and find another vehicle.

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