Anyone leasing a Ford F150?

[blackcamaro]

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Oh, I should add that most manufacturer-backed leases are close-ended leases, where the residual value is fixed, but there are third-party leasing companies that offer open-ended leases, so you don't know what you will owe when you return the car. Typically offered on leases on used vehicles. You might not owe much if you've kept the mileage low and the car in good condition, but if not, you must make a "balloon payment" at the end to bring the value of your payments up to the fair market value

This is close to correct but a couple of things to clear up. A open end lease still has a residual value that will be on your lease contract. Like you mention at the end of the term if the vehicle is worth less then the residual the customer is reponsible for that amount, however if the lease is in a personal name the most the lease company can charge is the total of 3 monthly payments. If it's in a company name the total difference can be charged to the customer. Where I work we try to structure the leases with a low residual so the customer has some equity at the end that can be applied to their next vehicle so it can work both ways.

With close end leases you mentioned replacement tires in a previous post. Very true the manufacturers will charge for damages to the vehicle and tire replacement is common, I usually recommend people buy a set of snow tires from the beginning from both a safety stand point and it can usually save enough mileage on the summer set that replacement isn't nessecary at the end. Generally an inspection company will call the customer about a month ahead of the lease being do. Have this done and if there is damages it gives you an opportunity to have them fixed yourself to save a bit of money.

Extra mileage can be bought at the time of signing the lease for those mentioning mileage limitations.

If buying new leasing usually makes the most sense. Manufacturers generally offer a high residual value so the depreciation isn't as much as buying, tax savings as mentioned, have a vehicle under warranty and the flexibility of buying the vehicle out at the end if it's worth the residual or moving on to something else. Everyone situation is different obviously though.

 

[dieselxx]

I'm in the market for a new truck, except I don't want to own one for much longer than 2-3 years. Anyone think I can get a F150 Supercrew 5.5 box, for around $200 BI weekly? I was thinking of going to Yonge / Steeles Ford, they seem to be a high volume dealer. Anyone out there got a cheap F150 on a lease that can advise on what options and deals they made?

Also I've never leased before, always financed and owned out right, what are some of the horror's of leasing?

Try erinwood ford. I bought my ST and RS from them. Much cheaper than any other dealerships I encountered. High volume dealer as well that push alot of performance cars. Much closer to you as well.

 

[Lightcycle]

If buying new leasing usually makes the most sense. Manufacturers generally offer a high residual value so the depreciation isn't as much as buying

That high residual is also nice when you're optioning out your vehicle.

You rarely ever recoup your costs on options when you re-sell a vehicle you own. A car with all the options will sell for nearly the same price as a bare bones car of the same year, trim and mileage.

When you lease, you can residualize all the options, like navigation, sport-suspension, heated mirrors/steering wheel - provided they are factory-ordered, not aftermarket bolted on. At the end of the lease, you've only paid a portion of the cost of the options during the lease period.

It's a small thing, but if you like having a new, fully-loaded vehicle, leasing gives you a bit of a price advantage vs buying outright and reselling.

 

[Brian P]

I went to a Ford dealership and priced out a truck. It was going to be 260 bi weekly (out the door) for the truck I wanted which was pretty utilitarian no frills. I might have to rethink my whole perspective on this. Might be better for me to keep my truck even though it is a gas gussler and a bit cramped.

Economics are seldom in favor of selling a used but late model vehicle that you already own, and then buying/leasing a new one. It's almost always better to just keep on driving what you've got, even if it isn't quite as fuel-efficient or whatnot. You've already paid for one depreciation hit, trading in and buying/leasing new means you'll be paying for one more.

I put too much mileage on daily-driver vehicles to even consider leasing them ... I buy new or late model used, and then drive it until it's no longer viable to keep it on the road. Resale value almost doesn't matter ... whether it's 5% or 10% of original purchase price really makes no difference.

Vehicles that are foreseeably hard to sell might be better to lease. Short-range electric vehicles come to mind - the next generation will make them obsolete. Niche-market vehicles may be in this situation. Pickup trucks are most certainly not!

 

[beverage]

Both of my current vehicles are Certified Pre-Owned (CPO). One was a 3 year old lease return, the other a 2 year lease return. A vehicle that meets the manufacturers CPO requirements would typically be in almost new condition and will get an extended factory warranty (Mazda is 7 years / 140,000 km powertrain on CPO vehicles for instance), and it means someone else took the hit for the worst of the depreciation. I tend to keep my vehicles long-term, so ownership will be more cost-effective than leasing for me.

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