Any concerns before leasing?

[Checkairspeed]

Leasing is misunderstood by many people. A lease simply means you are buying part of the vehicle for a specified time, with the option to purchase the rest of the vehicle in the future at a predetermined price. I myself lease every vehicle first, and then usually purchase it after the lease matures. If the vehicle turns out to have a lot of problems and/or is a lemon, you can turn it in when the lease matures and you will not have any negative equity. If it has been solid, then you know you've got a good one and can buy it out.

Oftentimes there are not the same rebates on a lease vs. a purchase, and you have to watch out for other fees that get thrown in. Check out leasehackr.com to learn about how leasing works and what to watch out for. As another poster mentioned, you should never put cash down or trade in a vehicle with a significant amount of equity. If the leased vehicle becomes totaled as soon as you leave the parking lot, that money is gone. Good luck!

You are correct, leases are misunderstood by many. Leases are not simple and unless you really understand what you are signing, buyer beware. Open/closed ended, capitalized cost, residual value, depreciation, rent charge, use tax, GAP coverage, early termination, etc... If you cannot explain these terms when they apply to your lease, you don’t understand your risk or what you are signing.
I also think putting any money down on a lease is throwing money away unless you are certain you will buy the vehicle in the end. Paying the depreciation up front doesn’t make good financial sense. If the OP puts 5k down, is he reducing the residual cost by 5k? Don’t know.
In the end it is obviously a personal choice, but a potentially expensive one.

 

[airgas1998]

You are correct, leases are misunderstood by many. Leases are not simple and unless you really understand what you are signing, buyer beware. Open/closed ended, capitalized cost, residual value, depreciation, rent charge, use tax, GAP coverage, early termination, etc... If you cannot explain these terms when they apply to your lease, you don’t understand your risk or what you are signing.
I also think putting any money down on a lease is throwing money away unless you are certain you will buy the vehicle in the end. Paying the depreciation up front doesn’t make good financial sense. If the OP puts 5k down, is he reducing the residual cost by 5k? Don’t know.
In the end it is obviously a personal choice, but a potentially expensive one.

this^^^^^spot on...

 

[W13NY]

I leased mine for $347 a month. Going to buy it out at the end of the lease - my payment should be about $390ish - but I don't plan on paying it all off - I just would rather sell it myself since I put a lot of work/money into it and I wont use that many miles in the 3-5 years I have it so it will be worth a good amount (I hope).

The buyout is about 28k

The sticker price was a little over 50k - so if I am doing the math correctly I think thats about 18% off?

That was for 36 months / 10k miles a year - $1K down and taxes, title etc.

 

[Checkairspeed]

I leased mine for $347 a month. Going to buy it out at the end of the lease - my payment should be about $390ish - but I don't plan on paying it all off - I just would rather sell it myself since I put a lot of work/money into it and I wont use that many miles in the 3-5 years I have it so it will be worth a good amount (I hope).

The buyout is about 28k

The sticker price was a little over 50k - so if I am doing the math correctly I think thats about 18% off?

That was for 36 months / 10k miles a year - $1K down and taxes, title etc.

It’s hard to determine, zip code, lease details, taxes, dealer/broker fees, wear and tear, routine maintenance, etc all play into what your total actual cost was/will be at end. Also hard to really know what the payment will be due to interest rates, etc. unless already locked in. Leasehackr.com has calculators (courtesy of kevinjones1997), but never personally used them. Just curious though, if you’re putting work/money into it, why sell?

 

[Mr. Hindsight]

I know leasing isn’t for everyone but it works well for me. Here is a good video regarding the pros and cons.

 

[Checkairspeed]

I know leasing isn’t for everyone but it works well for me. Here is a good video regarding the pros and cons.

He does make some good points. I am not against leasing. It can make sense for some if done properly. I believe consumers have become more educated and aware and therefore have significantly changed the car buying/leasing market. He also makes generalizations. Every situation is unique. Can leasing work? For some it does, if they are educated. The bottom line is: do your homework. Know what you are getting into. Putting money into a “depreciating asset” is what it is. The goal is to minimize the amount you put in.

 

[Mr. Hindsight]

He does make some good points. I am not against leasing. It can make sense for some if done properly. I believe consumers have become more educated and aware and therefore have significantly changed the car buying/leasing market. He also makes generalizations. Every situation is unique. Can leasing work? For some it does, if they are educated. The bottom line is: do your homework. Know what you are getting into. Putting money into a “depreciating asset” is what it is. The goal is to minimize the amount you put in.

True. I agree.

 

[firecadet613]

Forgot to add. I actually owned a ‘17 F150 with those problems experienced first hand. That’s part of the reason I’m in the Ram now.

Same here! And my Ram was built 5/31/18, custom order. Pretty much trouble free, very happy with it.

 

[nlicalsi91]

I went back tonight to do a little more negotiation after waiting 24 hours. Im only putting down $3,500 now and am paying $289.00 per month 36 months 15,000 miles per year. Buy Back is $31,000. I put down a $100 deposit that I had written and signed by the manager that the "Deposit is refundable". Im due to finalize everything Tuesday under the conditions that they run a hose over the entire truck while I sit inside with a flashlight to check for leaks. In regards to the AC, I have black leather and a black soft top in the Jeep so worse comes to worse the AC in the ram feels like it does in my wrangler on a hot summer day, I'll just clamp the hose under the hood that everyone else does on hot days.

I had my 2018 F-150 bought back under NY State Lemon Law last year for leaks and that was a pain, but the process was smooth.
The 5.0 engine also had a rattle that couldn't be diagnosed. Heres a vid

Those things have an entire multitude of problems since the 2018 refresh. I won't touch another Ford again for quite some time

 

[Mr. Hindsight]

Good luck with everything. Could u not even put that $3,500 down?

 

[Checkairspeed]

I went back tonight to do a little more negotiation after waiting 24 hours. Im only putting down $3,500 now and am paying $289.00 per month 36 months 15,000 miles per year. Buy Back is $31,000. I put down a $100 deposit that I had written and signed by the manager that the "Deposit is refundable". Im due to finalize everything Tuesday under the conditions that they run a hose over the entire truck while I sit inside with a flashlight to check for leaks. In regards to the AC, I have black leather and a black soft top in the Jeep so worse comes to worse the AC in the ram feels like it does in my wrangler on a hot summer day, I'll just clamp the hose under the hood that everyone else does on hot days.

I had my 2018 F-150 bought back under NY State Lemon Law last year for leaks and that was a pain, but the process was smooth.
The 5.0 engine also had a rattle that couldn't be diagnosed. Heres a vid

Those things have an entire multitude of problems since the 2018 refresh. I won't touch another Ford again for quite some time

I’m done!

 

[Checkairspeed]

I went back tonight to do a little more negotiation after waiting 24 hours. Im only putting down $3,500 now and am paying $289.00 per month 36 months 15,000 miles per year. Buy Back is $31,000. I put down a $100 deposit that I had written and signed by the manager that the "Deposit is refundable". Im due to finalize everything Tuesday under the conditions that they run a hose over the entire truck while I sit inside with a flashlight to check for leaks. In regards to the AC, I have black leather and a black soft top in the Jeep so worse comes to worse the AC in the ram feels like it does in my wrangler on a hot summer day, I'll just clamp the hose under the hood that everyone else does on hot days.

I had my 2018 F-150 bought back under NY State Lemon Law last year for leaks and that was a pain, but the process was smooth.
The 5.0 engine also had a rattle that couldn't be diagnosed. Heres a vid

Those things have an entire multitude of problems since the 2018 refresh. I won't touch another Ford again for quite some time

Forgot to reply. You are getting screwed! 28 vs 31 buyback. You are in a world of constant dealer turn over. Stop the madness!

 

[iamtheav8r]

I went back tonight to do a little more negotiation after waiting 24 hours. Im only putting down $3,500 now and am paying $289.00 per month 36 months 15,000 miles per year. Buy Back is $31,000. I put down a $100 deposit that I had written and signed by the manager that the "Deposit is refundable". Im due to finalize everything Tuesday under the conditions that they run a hose over the entire truck while I sit inside with a flashlight to check for leaks. In regards to the AC, I have black leather and a black soft top in the Jeep so worse comes to worse the AC in the ram feels like it does in my wrangler on a hot summer day, I'll just clamp the hose under the hood that everyone else does on hot days.

I had my 2018 F-150 bought back under NY State Lemon Law last year for leaks and that was a pain, but the process was smooth.
The 5.0 engine also had a rattle that couldn't be diagnosed. Heres a vid

Those things have an entire multitude of problems since the 2018 refresh. I won't touch another Ford again for quite some time

If you're not planning to buy it at the end (which you should never do) a higher residual is always better. You've got about $800 in tax so you're only really putting down $2700. I'd put down tax and the first payment, but that's me. Sounds like a good deal especially with the 15K/yr.

I doubt you're going to see any leaks even if it is leaking. It doesn't always show up as anything more than a stain on the headliner. I'd remove the rear, high mounted tail light lens, make sure the seal is not compromised and seal it back up.

Good luck!

 

[Checkairspeed]

I went back tonight to do a little more negotiation after waiting 24 hours. Im only putting down $3,500 now and am paying $289.00 per month 36 months 15,000 miles per year. Buy Back is $31,000. I put down a $100 deposit that I had written and signed by the manager that the "Deposit is refundable". Im due to finalize everything Tuesday under the conditions that they run a hose over the entire truck while I sit inside with a flashlight to check for leaks. In regards to the AC, I have black leather and a black soft top in the Jeep so worse comes to worse the AC in the ram feels like it does in my wrangler on a hot summer day, I'll just clamp the hose under the hood that everyone else does on hot days.

I had my 2018 F-150 bought back under NY State Lemon Law last year for leaks and that was a pain, but the process was smooth.
The 5.0 engine also had a rattle that couldn't be diagnosed. Heres a vid

Those things have an entire multitude of problems since the 2018 refresh. I won't touch another Ford again for quite some time

Aside from my other comments, I really do hope the truck works for you.

 

[nlicalsi91]

If you're not planning to buy it at the end (which you should never do) a higher residual is always better. You've got about $800 in tax so you're only really putting down $2700. I'd put down tax and the first payment, but that's me. Sounds like a good deal especially with the 15K/yr.

I doubt you're going to see any leaks even if it is leaking. It doesn't always show up as anything more than a stain on the headliner. I'd remove the rear, high mounted tail light lens, make sure the seal is not compromised and seal it back up.

Good luck!

Thank you, I'll give it a shot with the leaks. When I got the F150 that night I smelled a little bit of mildew in the rear seat area when taking out the fabric floor mats to leave in the all weather for the winter, I pulled the top seat down and stuck my hand under the carpets and felt water and it smelled horrible. I got a pan filled with water and started pouring all over the truck and found water seeping through the rear vent so I hope that I can even see just a few droplets.

Attached is a pic of the leaking vent from the Ford

 

[iamtheav8r]

Thank you, I'll give it a shot with the leaks. When I got the F150 that night I smelled a little bit of mildew in the rear seat area when taking out the fabric floor mats to leave in the all weather for the winter, I pulled the top seat down and stuck my hand under the carpets and felt water and it smelled horrible. I got a pan filled with water and started pouring all over the truck and found water seeping through the rear vent so I hope that I can even see just a few droplets.

Attached is a pic of the leaking vent from the Ford

On the ram they leak at the high mounted light, sunroof drain tube grommets in the rear cab wall, rear window frame cracks and leaks (this can't be seen easily with trim in place) and some have leaked around the windshield. Hard to believe water leaks are still a thing today.

 

[Reverse]

I have only leased a few times, but as far as the initial deal there was no difference with buying a vehicle. You don't tell a dealer if you want to lease or buy (and if you have a trade or not) initially. First you arrive at a price on the vehicle,. The residual should be fixed, so now you have the difference between new and lease-end. That will allow you to determine if you are getting a good lease deal or not.

Negotiating on a monthly payment (and upfron payment) is madness IMO - how can you tell if you're getting a good deal?

 

[iamtheav8r]

I have only leased a few times, but as far as the initial deal there was no difference with buying a vehicle. You don't tell a dealer if you want to lease or buy (and if you have a trade or not) initially. First you arrive at a price on the vehicle,. The residual should be fixed, so now you have the difference between new and lease-end. That will allow you to determine if you are getting a good lease deal or not.

Negotiating on a monthly payment (and upfron payment) is madness IMO - how can you tell if you're getting a good deal?

Just because this works for you don't presume it works for everyone else. Some of us have a monthly vehicle budget and as long as the vehicle fits in the budget we don't care much beyond that. Others have a hot button that's difference price...some are all about trade value. A good salesperson will quickly determine which buyer type you are and work you into a corner.

 

[nlicalsi91]

On the ram they leak at the high mounted light, sunroof drain tube grommets in the rear cab wall, rear window frame cracks and leaks (this can't be seen easily with trim in place) and some have leaked around the windshield. Hard to believe water leaks are still a thing today.

is the high mounted light the 3rd brake light in the back above the rear sliding window?

 

[iamtheav8r]

is the high mounted light the 3rd brake light in the back above the rear sliding window?

yep