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Ford Mustang, Car Leasing, Coupe, Convertible
Jun 04, 2006 (4:54 pm)
I recently turned 18 and ruled buying a car out of the question at this age due to my lack of credit, and I refuse to let someone cosign for me.
I therefore looked in leasing, I love the 2005 Ford Mustang GT Coupe. However, leasing will only permit for the 2006 or 7. I like the 2006 equally as much. The car dealer gave me alot of gibberish. Really I just have some simple questions regarding leasing. If I were to lease the particular vehicle, which the sticker current is 26, 705 (assuming that was the final price agreed on)... for a 36 month lease, would it be something ridiculous? According the the online payment calculator for ford, which I don't like too much ... for a 36 month it would end up being 382 a month and I'd need to put down basically 4800 to start.
I'm thinking more realistically, what do you think it would eqivalate to? Not to mention, I have no built up credit because of age and lack of long term contracts prior, I don't have bad credit, just no built up credit. When it comes to leasing, will they turn me down because of my age and fresh credit?
#49 of 208 Re: complete ignorance [ekmajm]
Jun 12, 2006 (1:42 am)
Hi ekmajm. Since you haven't had any success with leasing in the past, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment. Once you have read them, let me know if you have any other specific questions about leasing in general or specifically about leasing a Mustang.
Smart Shopper / Prices Paid Forums
#50 of 208 Re: not so ignorant anymore [ekmajm]
Jun 12, 2006 (1:47 am)
Hello ekmajm. In the past consumers in Texas have often gone with balloon notes instead of leases on vehicles because of the tax laws. I have seen a lot more talk about leasing in Texas recently which leads me to believe that the sales tax laws for leasing may have changed there, but I am not positive that is the case.
Other than the fact that it is not really a wise financial decision to get a new vehicle when you are upside down on your current one, I don't think that leasing a new vehicle when you are upside down on your current one puts you at any disadvantage. Just keep your new vehicle and trade-in transactions separate until the last minute. Negotiate the lowest possible selling price and lease payment on your new car and then have the dealer tell you how much your payment would change if you added your negative equity into the equation.
Smart Shopper / Prices Paid Forums
Jun 12, 2006 (1:50 am)
Hey Louis. Ford's current lease program for the Mustang GT is pretty bad. It is a fairly expensive vehicle to lease. I can give you an idea of how much it should cost to lease the exact car that you are interested in right now if you provide me with an approximate selling price for it. It is important to remember that the selling prices of leased vehicles can be negotiated, just as if you were paying cash for or financing them. Let me know and I'll tell you the monthly lease payment.
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#52 of 208 Mustang 2007 lease
Jan 31, 2007 (6:16 pm)
I am planning to lease Mustang 2007 GT Premium. TOTAL MSRP quoted by the local dealer here in Cleveland is $29,225 with 24 month lease and 10,500 miles per year. BTW, its auto, I requested the quote for manual too, I guess the quote was close to this one.
Let me know what would be monthly payment for the car....
#53 of 208 Why do you want to lease?
Feb 02, 2007 (8:43 am)
When Carman said the lease program is bad on the GT, he means that the lease payment will be almost the same as a finance payment.
While the residual will be 69% for 24 months, 10,500 miles, there is no rebate and the lease interest rate is 7.75%!!!! You are going to easily be over $500 a month probably close to $600 after taxes and MV fees.
#54 of 208 Re: Mustang 2007 lease [josh89]
Feb 05, 2007 (4:44 am)
Hi Josh. You never mentioned the selling price of the car that you are interested in leasing. This is an important number for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing the price of the car that you want to lease you don't know how good a price you are getting it for. The second reason is that one needs the selling price of a vehicle that they want to lease is that it is necessary to calculate its lease payment. I would be more than happy to work up a sample lease payment on the car that you are interested in for you if you let me know what its selling price is.
For now I can tell you that the Mustang GT's lease program is not very attractive.
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#55 of 208 Lease on a '07 V6 Pony Package
Feb 13, 2007 (3:32 pm)
Due to a money crunch and probable blown head gasket/cracked head on a '98 Outback w/140k I am going to sign for a lease on a '07 'stang on thursday (2/15). There is a lot of emotion in this decision as I have wanted a Mustang since I was 14, and am 41 now.
The work sheet for purchasing the car is easy to follow and understand, but i am never comfortable following the numbers on a lease work sheet. Here is the information right off the lease worksheet. MSRP-24,850 LEV (residual - 54%) 13,419. Term 36mo, rate 6%. Cash down $2,000 (to help get monthly where i need it to be) rebate $1,000 Trade $3,500, total Working Cash $5,500. Selling Price $23,319.45, Capped adds (told was acquisition fee) $595, Cash Cap reduction $1,449.19, Total Cap reduction $5,949.19, Adjusted Cap Cost $18,722.63, Base monthly rental $227.32, total monthly payment $241.31, sales tax $1261.01 Upfrt Annual fees 39.50, Upfrt initial fees 20.00 security deposit $250.00, Amount due at start $5,500. Mileage is 12k.
If i buy the car at the end of the lease, my total outlay will be about $27,500 with property taxes included in the payments. My plan is to keep the car for a long time. Due to amount of cash needed up front for an affordable finance payment at this point in time a lease is looking to be my only option. I can get 5.56% from my credit union but would have to pay for 6 years and come up with $2,000 more for a downpayment than i will with a lease. The total monthly payments would be about $15 more a month, and the total over 6 years is close to the same, but i would have to pay the tax seperate. The sales rep is one of my clients and i trust him. I don't know if I trust the sales manager as he is the one that runs the numbers, and I don't know him. I don't know if he is taking advantage of all the hidden treasures in a lease for them to play with. Am I getting hosed on this lease???
Thanks for your help. I am supposed to sign the papers and pick up the car in 2 days.
#56 of 208 Just what are you asking?
Feb 20, 2007 (9:03 am)
Also, there is about 50 different ways leases are calculated...one for each state. What state do you live in? What is your zip code?
First, one of the things that people do not realize with leaseing is that cap cost reduction gives you no benefit. When you finance a car, every dollar you use as a down payment saves you money in the long run because you pay less interest.
In a lease, the interest is considered the "rental fee" The amount of interest you pay is calculated BEFORE down payments are subtracted. The downpayment comes off of the total Your cap cost reduction of $6,000 is basically just paying your monthly payments ahead of time. BUT IT DOES NOT lower the amounth of interest you pay.
Most people lease with little or no Cap Cost reduction. Obviously this would put the payment up, but you would have a substantial sum of money in the bank to draw from to meet those higher payments.
Most people DO NOT buy their leased vehicle at the end of the lease unless they have no choice due to huge overmilage charges that they can't afford.
Your lease end value is probably much higher than the street value of the car at turnin. Accordingly, do not assume that you are going to buy the car at the end of the lease, this just may not make sense.
The selling price of the car is negotiable. Use Edmunds TMV to make sure you are getting a good deal.
If you finance, at the end of the 6 years, you'll have a car that you own. If you lease, at the end of 36 months, you have nothing. Most importantly, you do not have $3,500 in trade equity.
PS You are kind of screwing yourself for your next purchase when the lease is over. Assuming you do not win the lottery, you are not going to have a $3,500 trade for your next vehicle. This trade is probably saving you $100 a month. Which means in 3 years you are not going to get the same car for the same payment.
#57 of 208 Mustang GT Deluxe Coupe Lease
Mar 27, 2007 (8:05 am)
Could you tell me the current residual and money factors for the Mustang GT Deluxe Coupe w/automatic? 12k, 36mo.
I know they usually are poor on this type of car.