The Lease Numbers on My New Tremor

[TimmyB]

I lease almost all of my new vehicles and have done so since the mid-80's. The reasons are many, but they make sense for me in the way I do my vehicles and my budget. The point of this thread is NOT to be "leasing vs buying", it is to give an apples to apples case of what my Tremor actually cost.

First of all, the truck:

• Tremor Package
• Tow Package
• Spray-in Bedliner
• Bed Extender
• Securicode Panel
• MSRP $47655

Now, the lease details:

• 36 Months
• 36K Miles
• $0 down (first payment and misc fees due at signing)
• A/Z Plan
• $460/month (+7% FL use-tax)

The only way to compare how much "savings" one is getting in a lease is to price out the lease at MSRP, see what the payment would be, then see how much money you would have to put down (or, how much of a discount they gave you) in order to reach the actual payment number.

If you were to go to the Build-and-Price and actually spec out this truck, you would see that the current least price (at MSRP, with ZERO down) is $620 per month, plus use-tax. This means, my payment is actually $160 per month less than that, or a total of 36 x $160 = $5760. The reasons for what I feel is an incredible buy are two-fold: first, the A/Z plan really helps a lot; second, and more importantly, sometimes the manufacturers give insane residual percentages. This appears to be the case as the current incentives this month only had a $400 bonus cash, but they bumped the residual up to 65%, meaning I'm only paying for 35% of the truck. (It's actually LESS than that, but I don't want to get bogged down in the fine points of leasing, here.)

So, in the end, I'm going to pay only about $16,560 in the next three years to Ford for them letting me drive their nearly $50,000 vehicle. I'll have to put gas and oil in it (hopefully not in the same place!), and maybe swap out a set of tires. I tie up no money of my own and in three years, I'll give it back to them and probably get a 6G Ranger!

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[JaysOnTheEDGE]

Do you know if Ford has high mileage lease options? on a FAVR at work and I do about 16-20K miles a year.

 

[D Fresh]

I lease almost all of my new vehicles and have done so since the mid-80's. The reasons are many, but they make sense for me in the way I do my vehicles and my budget. The point of this thread is NOT to be "leasing vs buying", it is to give an apples to apples case of what my Tremor actually cost.

First of all, the truck:

• Tremor Package
• Tow Package
• Spray-in Bedliner
• Bed Extender
• Securicode Panel
• MSRP $47655

Now, the lease details:

• 36 Months
• 36K Miles
• $0 down (first payment and misc fees due at signing)
• A/Z Plan
• $460/month (+7% FL use-tax)

The only way to compare how much "savings" one is getting in a lease is to price out the lease at MSRP, see what the payment would be, then see how much money you would have to put down (or, how much of a discount they gave you) in order to reach the actual payment number.

If you were to go to the Build-and-Price and actually spec out this truck, you would see that the current least price (at MSRP, with ZERO down) is $620 per month, plus use-tax. This means, my payment is actually $160 per month less than that, or a total of 36 x $160 = $5760. The reasons for what I feel is an incredible buy are two-fold: first, the A/Z plan really helps a lot; second, and more importantly, sometimes the manufacturers give insane residual percentages. This appears to be the case as the current incentives this month only had a $400 bonus cash, but they bumped the residual up to 65%, meaning I'm only paying for 35% of the truck. (It's actually LESS than that, but I don't want to get bogged down in the fine points of leasing, here.)

I feel your understanding of how to compare prices is a little lacking.

For a true comparison you must include purchasing @ residual at the end if the lease. As it's the only way to make an apples to apples comparison.

Otherwise you're comparing a long term rental, which works for some, to a purchase and it's apples to oranges.

 

[TimmyB]

Do you know if Ford has high mileage lease options? on a FAVR at work and I do about 16-20K miles a year.

Absolutely, they do. My Explorer was at 15K per year because we were still using it to drive back and forth to FL each year. Now, our motorhome pulls the Explorer (soon to be Tremor) behind it, so we don't need as many miles.

What you will find is the payment usually goes up by about $25 per month (in a 36 month lease) for each 3000 annual miles. So, if you did 18K per year, your monthly cost would go up by about $50.

 

[TimmyB]

I feel your understanding of how to compare prices is a little lacking.

For a true comparison you must include purchasing @ residual at the end if the lease. As it's the only way to make an apples to apples comparison.

Otherwise you're comparing a long term rental, which works for some, to a purchase and it's apples to oranges.

And, you're entitled to feel that way. I could have gone on and on explaining to those who don't understand leasing, or my use of it, but I chose not to. I have almost no intention to purchase this vehicle outright at the end of the lease. I like new cars too much and I love the fact that I NEVER have a repair to make that comes out of my pocket. I already know that in June 2024, we'll be doing this again.

 

[E Monty]

Do you know if Ford has high mileage lease options? on a FAVR at work and I do about 16-20K miles a year.

I have a similar reimbursement deal and checked out leasing, dealer said no way on a lease. I purchased at 0% instead back in November.

 

[D Fresh]

And, you're entitled to feel that way. I could have gone on and on explaining to those who don't understand leasing, or my use of it, but I chose not to. I have almost no intention to purchase this vehicle outright at the end of the lease. I like new cars too much and I love the fact that I NEVER have a repair to make that comes out of my pocket. I already know that in June 2024, we'll be doing this again.

And you don't need to.

Leasing is a viable option that works for many people.

However,just saying I'm saving "this much per month by leasing" is overly simplistic.

 

[TimmyB]

And you don't need to.

Leasing is a viable option that works for many people.

However,just saying I'm saving "this much per month by leasing" is overly simplistic.

What I'm showing is what the net savings was from MSRP. That is the only way that we can come up with a legitimate number because if you simply work from the number that is listed, we'd all say "Dang, they're not giving a very good discount". Because Ford bumped the residual up by at least three percentage points, that was worth about $2K right there. You are correct about purchasing at the end of the lease; it would definitely not be in my best interests. But, as I've said, I haven't done that with lease in over 20 years and when I did that it was because of a location change which caused me to put on about 30,000 miles over what I signed for. It was either purchase the car or give them a million dollars for mileage penalty!

 

[TimmyB]

I have a similar reimbursement deal and checked out leasing, dealer said no way on a lease. I purchased at 0% instead back in November.

Eric, what is this "reimbursement deal" that you guys are referring to?

 

[JaysOnTheEDGE]

Eric, what is this "reimbursement deal" that you guys are referring to?

I'm a service tech and have to use my personal vehicle for work that I get reimbursed for.

What Is the Fixed and Variable Rate Allowance (FAVR)?
The fixed and variable rate allowance (FAVR), or fixed and variable rate reimbursement, is a way of reimbursing employees who use their own or leased vehicles for work-related activities. For tax purposes, FAVR payments must be made at least quarterly, according to Internal Revenue Service (IRS) guidelines, which also imposes certain restrictions on how and how much an employee's vehicle must be used to qualify for the FAVR allowance

 

[TimmyB]

I'm a service tech and have to use my personal vehicle for work that I get reimbursed for.

What Is the Fixed and Variable Rate Allowance (FAVR)?
The fixed and variable rate allowance (FAVR), or fixed and variable rate reimbursement, is a way of reimbursing employees who use their own or leased vehicles for work-related activities. For tax purposes, FAVR payments must be made at least quarterly, according to Internal Revenue Service (IRS) guidelines, which also imposes certain restrictions on how and how much an employee's vehicle must be used to qualify for the FAVR allowance

I wonder why the salesperson would have told him no way to leasing, other than his own "I want to sell this car as quickly as possible" and he was scared by the leasing thing.(?) I was going to mention to you, if you go to the Ford Build-and-Price, when you get done and go to the price per month, it will take you to a screen where you can show finance or lease. In the lease part, you can specify miles all the way up to 19,500 per year.

 

[E Monty]

Eric, what is this "reimbursement deal" that you guys are referring to?

My Owner offers the sales/project management staff a monthly amount to provide their transportation or they offer a GMC Sierra at no cost but with restrictions.

 

[D Fresh]

What I'm showing is what the net savings was from MSRP. That is the only way that we can come up with a legitimate number because if you simply work from the number that is listed, we'd all say "Dang, they're not giving a very good discount". Because Ford bumped the residual up by at least three percentage points, that was worth about $2K right there. You are correct about purchasing at the end of the lease; it would definitely not be in my best interests. But, as I've said, I haven't done that with lease in over 20 years and when I did that it was because of a location change which caused me to put on about 30,000 miles over what I signed for. It was either purchase the car or give them a million dollars for mileage penalty!

Like I said. It works for some. But it is NOT a tool to save money. Anybody telling themselves that is fooling themselves.

For example, assuming your payment has been roughly the same for the 20 years you've spoke of you've spent about $110,000 to have access to one vehicle at a time without owning a single asset. Whereas I've spent roughly $190,000 to have access to at least two vehicles at a time, 2 vehicle household, and have about $70k worth of vehicles to show for it. They are apples and oranges by design.

Again, not knocking it. If it works for you, it does. But if it only works for you because you think you're saving money, I'd rethink that.

 

[TimmyB]

My Owner offers the sales/project management staff a monthly amount to provide their transportation or they offer a GMC Sierra at no cost but with restrictions.

I'm trying to figure out why the salesperson told you no way. Were you doing something obscene, like 30K miles per year or something?

 

[E Monty]

I wonder why the salesperson would have told him no way to leasing, other than his own "I want to sell this car as quickly as possible" and he was scared by the leasing thing.(?) I was going to mention to you, if you go to the Ford Build-and-Price, when you get done and go to the price per month, it will take you to a screen where you can show finance or lease. In the lease part, you can specify miles all the way up to 19,500 per year.

My miles average 30k only for business plus personal miles, adds up.

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