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Realistic Lease?

jblack773
Established Member

Realistic Lease?

Hello, 

 

How realistic are these numbers for leasing a 2021 Ford Mustang GT Premium. The current price for the vehicle is $46,000, but I'm hoping to negotiate it to $43,500. I have a 680 Fico Auto Score 8. The vehicle will be leased throught Ford Motor Credit. I just ran some numbers through Edmunds Lease Calculator. The payments are around where I would like to be (or lower of course). Any suggestions?

 

2021 Ford Mustang GT Premium 2dr Coupe (5.0L 8cyl 6M)

Great Deal — 13% off of MSRP

Pricing Details

MSRP:  $50,100

Selling Price Before Incentives (Estimated Savings 13.17%):  $43,500

Cash Incentives:  $500 (Rebate)

Selling Price After Incentives:  $43,000

Residual value:  62%

Annual Miles:  10000

Trade-in and Down Payment

Value of Your Trade-in:  $15,500 (2016 Volkswagen Passet R-Line; 43,000 miles)

Amount Owed on Your Trade-in:  $13,000

Applied Trade-in:  $2,500

Cap Cost Reduction:  $2,500 (down payment)

Financing

Acquisition Fee:  $645

Lease Term (months):  39

Estimated Money Factor (Equivalent to 5.40% APR):  0.00225

Credit Tier:  Good

Security Deposit:  0

Taxes & Fees (Includes acquisition & dealer fee in amount shown):  $1,146

Estimated Monthly Payment

Total of Lease Payments:  $16,713

Monthly Lease Payment (Before Taxes and Fees):  $333

Taxes and Fees:  +$32

Monthly Lease Payment (After Taxes and Fees):  $365

 

 

Thank you. 

12 REPLIES 12
4sallypat
Valued Contributor

Re: Realistic Lease?

You should post this question a lease site like Leashackr and use their calculator to find out if the deal is good.

 

First, cardinal rule: never put down money (cap cost reduction) or your trade on a lease.

You will reduce monthly, but you will never see that money again if you total it or have it stolen.

 

Second, your trade in should be done separately from the lease or finance deal.

 

Third, put down only the drive off costs (license, registration, acquisition fee, first month lease & tax).

 

Fourth, do your homework and find out if you qualify for any incentives / rebates / credit / manufacturer support from FMC.

 

Finally, find out what your credit score will yield in money factor (MF) - that interest rate will vary and your dealer can probably do a SP on your credit to determine that.

Your MF may be Tier 2 or 3 (higher rate) so be careful what the dealer assigns to you.

 

OTOH If you are financing, then make sure you deal on your trade totally separate from your deal as dealers are known to "blend" the 4 square tool.

 

 

 

 

Message 2 of 13
Creditplz
Valued Contributor

Re: Realistic Lease?

I'd go on Leasehackr, that's usually where I go to hunt down deals... got a 530i & M8 Comp in the last few weeks and used a broker friend I have that advertised on LH too... 

 

they'll let you know if it's a good deal on your end..

 

also many people are getting better deals selling to Carmax, RODO, Carvana, Vroom.. etc.. don't waste the money on trading it in

Message 3 of 13
jblack773
Established Member

Re: Realistic Lease?

Thank you. This was very helpful information. Can you explain "blending the 4 square tool"? I'm still learning how to navigate and deal with car dealerships. 

Message 4 of 13
jblack773
Established Member

Re: Realistic Lease?

@Creditplz 

 

I going to give Leasehackr a try. Great point about selling the vehicle instead of trading. I forgot that nowadays, if you sell your only car, you can still get around pretty easily with uber/lyft. 

Message 5 of 13
4sallypat
Valued Contributor

Re: Realistic Lease?


@jblack773 wrote:

Thank you. This was very helpful information. Can you explain "blending the 4 square tool"? I'm still learning how to navigate and deal with car dealerships. 


Welcome!

The dealer loves it when  you step onto their lot because they now "own" you and controls the deal.

Blending 4 square is what they will do is have you focus on the monthly. All the while, the dealer is manipulating your trade value, sale price, keeping incentives for themselves, adding term (months), and bumping interest rate or MF.

 

What you want to do is your homework BEFORE you even step foot onto a dealership.

Always negotiate online/text/email first - never go into the dealership until you are satisfied with your numbers.

LeaseHackr is one the best forums that will tell you if you are getting a good deal.

 

If your current car is not a lease, you can sell for a lot more at Carvana, Vroom, Carmax - than a dealer will ever offer.

 

 

Message 6 of 13
4sallypat
Valued Contributor

Re: Realistic Lease?

On a lease, if you must apply trade money towards a lease to lower monthly, do it by paying down the MF (interest rate).

It's called MSD (multiple security deposit) which is kept by the leasing company and is 100% refundable at the end of the lease (or if it gets stolen or totalled).

 

If you max out your MSD, you can get a much lower monthly rate because it reduces your MF rate.

 

Just make sure the dealer does not trick you and use your money to reduce your cap cost (cap cost reduction) where you will never see that money back.

Message 7 of 13
jblack773
Established Member

Re: Realistic Lease?

@4sallypat 

 

Ok I see. Dealerships are notorious for manipulating the price so that they come out of the deal on top. These practices should be illegal (if not already). This is very insightful information and I see how it can work in theory. However, I tried calling or e-mailing dealerships in the past, but they refuse to discuss pricing if I'm not there. 

Message 8 of 13
4sallypat
Valued Contributor

Re: Realistic Lease?

Yes dealers are independent franchise businesses that don't really care what the manufacturer wants so it's not illegal.

 

They pretty much run their business to make a profit - albeit sometimes a huge profit at your expense.


So unless you do a ton of homework, make lots of inquiries, and spend a lot of time on getting your vehicle, consider using an auto broker in this crazy market.

 

A good auto broker will find the car, negotiate with the dealership's fleet department and you pay a small fee for their services.  Well worth it in this upside down automotive market!

 

I have an auto broker which I use & trust because I have known him for over 15 years when we first sold me a BMW as a client sales rep.  He now is on his own and selling lots of cars to his clients who don't want or have the time to do homework...

 

 

 

Message 9 of 13
jblack773
Established Member

Re: Realistic Lease?

@4sallypat 

 

I've been exploring the leasehckr website and looks like there are a few brokers on there. Do you know where I can find a list of creditable brokers. Should they be local to me? I think it's a great idea. I would rather pay a small fee to a broker, than a large down payment just to get the car and deal I want. 

 

Thank you!

Message 10 of 13
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