Need Advice Regarding Buy Used vs. Lease New

[raijinmach]

Trying to decide between these two options.

I'll be driving it for at least 5 years. My thinking is that buying with cash means I'll end up with basically zero value after 5 years given how fast they depreciate. At least with the 2024 lease, I don't have to worry about re-selling and I will have the reassurance that it is new. Thoughts?

The 2024 comes with the pano roof. Ford currently has a $10k off promo and the dealership has another $3500 off. MSRP is quoted to be $71k.

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[stoopid]

I did a 39 month lease on my '24 MME with 11 or 12,000 miles annually (I'm on pace for 7-8,000 miles). $311 USD monthly payment is hard to beat. $4200 USD down [applied equity from my trade-in]. I don't know what the interest rate is, I was more focused on the low monhtly payment. I'll decide at month 38 what to do with the lease (buy out or move on). Figure maybe these details might help.

If you can, don't put anything down on the lease and just pay a bit more each month. In hindsight, I'd probably be better off with the $4200 in my pocket and an extra $40 /month on the payment.

 

[ARK]

I voted lease because I don't think there is enough a discount for the used vehicle's price, but you don't list the lease terms in terms of the down payment, the monthly payment, and what your buyout price will be at the end of the lease if you wanted to keep it, all important considerations.

 

[raijinmach]

I voted lease because I don't think there is enough a discount for the used vehicle's price, but you don't list the lease terms in terms of the down payment, the monthly payment, and what your buyout price will be at the end of the lease if you wanted to keep it, all important considerations.

Down: $2k
Monthly $148/week for 5 years term
Buyout would be whatever is remaining on $68k

 

[stoopid]

... Buyout would be whatever is remaining on $68k

I thought it was $49k ?

 

[dalola]

A 5 year lease with money down is a bad idea. You generally don't want to lease out of warranty (are they including extended warranty?), and it's also not a good idea to put money down on a lease. If something happens to the car early in the lease, you lose that money. And the residual is always preset & not negotiable.

If this is your only lease option, you're better off to purchase outright. But you don't really offer enough information to get detailed advice.

 

[ARK]

Down: $2k
Monthly $148/week for 5 years term
Buyout would be whatever is remaining on $68k

Oh, I see I misunderstood your numbers the first time around. If you are OK preowned, that seems like a financially much better deal for a lightly used Mach-E.

The pre-owned is not going to be worth zero in five years. $49K CAD for the new vehicle is what you are paying for the lease if you walk away from it after five years, but if you do the same with the pre-owned (meaning you sell it after five years), your lifetime cost is going to be a lot less than $42K CAD because you will get what, $20K CAD for it? More? Less? That preowned has already taken a lot of the depreciation hit for being an EV.

 

[watchdoc]

Chose the lease terms that are most favorable. Lowest money factor. Least amount down. A 5 year lease is too long.

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