Understood! I’ll definitely talk to my dealer before anything is finalized. They did tell me that they would work around my budget.. maybe that was just them trying to make a quick sale on me. Thanks for letting me know, I appreciate the guidance!
I have leased cars for the last 15 years. I love it, but I do it for a reason. Very specific reasons. Those reasons do not work for the Bronco for ME. As others mentioned before there are some tricks with leasing. So do your homework. It’s a great option for some, but in other cases you can be royally f****d!
The lease is based on the vehicles residual value at the end of your terms: 24, 36, 39, 48.
Miles used effect the residual value, as does options sometimes. Soo study this carefully.
Next, “money factor” is the similar to your APR or interest rate. It’s far more dangerous because it changes monthly (usually) and many dealers will not tell you up front what it is. It is locked once you sign a contract. It’s important! But understanding the number they give you, if you extract it, is also critical.
Down payment, look at the contract before you put any money down, this includes taxes and tags! If the number is good, then offer to lower it with a down payment if you want. I actually never put anything down, but first payment. Remember they will show you in the contract the residual value, money factor paid, taxes, tags, sales price. The monthly payment is just #ofmonths/totalobligate (paid down value+money factor paid+taxes+tags).
The Bronco is in an interesting state. First the 2021 is releasing late in the year. In most manufactures the current calendar years sales consist of the calendar year and the next. Usually this is mid to late summer. This means the 2021 and 2022 should be in dealers late summer 2021. This doesn’t help a lease, because it adds age to the model.
Returning, there is a catch. You have to be sure that when you finish a lease you have met the criteria for the lease as far as mileage AND maintenance. These close out costs can be a real gotcha in that final payment. My last car had a $1,800 maintenance, scratch, and mileage overage. But there is a good trick here. If the value of the car is still high, higher than residual value, you can sell it back to the dealer (usually) and they can give you value of the car. Example: $30kcar leased, residual $15k, returning/selling back value is $17k. That means they can apply $2k to your overage in mileage or maintenance or to your next purchase. But it is a gamble! I’ve won more than lost, but one of my loses was $8k.o_O
Keeping, if you decide to keep the car after a lease you have a few options. Pay off the residual value. That could be 50-60% of the original cost. $35k sale/start of lease, pay down $15k, means a $20k pay off at the end to own. Second you can finance the remaining. This gets tough, usually you have an option if 12-24 months to finance the remaining value of $20k (back to my previous example), which means your payment is now jumping really high. Plus the interest rate is special. My last one was 3.49%, but I have 756 credit score... my payment more than doubled for those last two years.
Minimal Risk, there is one other advantage, one I enjoy. I usually can lease a higher value car, like in this case being able to go to a BL over the BD because the lease payment is only $50 more or something. Then in 36 months I’m paid off. If the value tanks, the cars crap and falling apart, or I want the newest features... it’s just “return” option and start anew.
Once last note, GET GAP INSURANCE!!! Nothing like being responsible for paying off a car you don’t own or can’t drive anymore.
