Lease extensions and buyout value.

[Yinzcity]

Question for those of you that have or had lease extensions with Ford. The lease on my 2019 is up in November and I'm considering getting a lease extension as I hope to have an order or reservation for a 6G ranger in before then. The buyout amount in my lease contract is much less than the truck is worth thanks to the current vehicle market. Does anyone know how the buyout amount gets recalculated in the event of a lease extension? Would like to not loose the equity I have with the current buyout number.

Buying the truck outright is also an option I know, but Michigan does not give full sales tax credit for trade in, so if I buy, then trade on a 6G ranger in a year, I'm eating the sales tax.

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[WhyNot21]

Just buy it out. Why let the finance/lease company make any more money?

 

[tremorman]

Buy it out absolutely. When upgrading in the future you can then just sell private and make up for not having a trade in sales tax credit in MI. Private sale may be kind of annoying but you'll get much more there than from a dealer in a trade.

 

[SgtT11B]

Question for those of you that have or had lease extensions with Ford. The lease on my 2019 is up in November and I'm considering getting a lease extension as I hope to have an order or reservation for a 6G ranger in before then. The buyout amount in my lease contract is much less than the truck is worth thanks to the current vehicle market. Does anyone know how the buyout amount gets recalculated in the event of a lease extension? Would like to not loose the equity I have with the current buyout number.

Buying the truck outright is also an option I know, but Michigan does not give full sales tax credit for trade in, so if I buy, then trade on a 6G ranger in a year, I'm eating the sales tax.

I am in the same shoes with my 2020 Ford Escape Titanium. My buyout is $23K but the FE is worth at least $33K. I am buying it out and maybe sell it myself. The issues is Ford doesn't allow 3rd party buyouts. In other words you can't sell it to a CARMAX or Carvana and such. Ford will extend a lease as long as you have a vehicle on order. I ordered a 2022 Ford Bronco Sport Badlands and they had to extend the lease out 6 mos. due to the cars production being pushed back.

Dave

 

[Yinzcity]

Buy it out absolutely. When upgrading in the future you can then just sell private and make up for not having a trade in sales tax credit in MI. Private sale may be kind of annoying but you'll get much more there than from a dealer in a trade.

That's a fair point, I hadn't considered the bump in private party value.

Ford will extend a lease as long as you have a vehicle on order. I ordered a 2022 Ford Bronco Sport Badlands and they had to extend the lease out 6 mos. due to the cars production being pushed back.

Dave

If I had any confidence the 6G ranger was actually going to be available summer of next year, I'd just ask for an extension and wait. But with the Bronco/Maverick/F150 waits for builds being what they are now even for first day reservations, I can't see that being a safe bet.

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