Good lease deal, or keep looking?

[McSquashy]

I'm in talks to lease a 2025 GT w/ Pano roof and no other packages. Dealer is willing to pay off the current loan on my 2023 Premium, which is more than current book value.

All these are monthly payments options on a 39 month / 10.5k miles per year lease. Includes taxes and $5500 in incentives

Residual is 28,520.65
Money factor is 2.45

$2k down $669
$4k down $614
5k down $587
6.5k down $545

What do y'all think? Is this a decent deal?

Edit: Thanks mods for moving this to the right category.?

Sponsored

 

[GreaseMonkey]

Why do it now? Wait till year end. The lease deal is not close to good vs Dec 2024. Dec this year won’t be as good as last, but I bet it’d be better than now. Your 23 won’t deteriorate in 6 months.

 

[McSquashy]

Why do it now? Wait till year end. The lease deal is not close to good vs Dec 2024. Dec this year won’t be as good as last, but I bet it’d be better than now. Your 23 won’t deteriorate in 6 months.

Those are valid points and I appreciate the feedback. I don't need to do this now, or in December, even. It's just something I wanted to do and it felt like this is a good opportunity. Will I find a better deal if I wait? Maybe. My thought was that the current lease incentives are decent and my 2023 is only going to continue to depreciate, Also new MME prices are going up very soon, due to the tariffs. A better deal may always be around the corner, but who knows what the future holds. Why not take advantage of a good deal now?

 

[E90alex]

I think current money factor should be about 1.75 for 39 mo, so dealer might be marking that up. That’s assuming you have top tier credit, otherwise it could be higher based on your credit.

Also the prevailing advice is to never put money down on a lease.

 

[McSquashy]

I think current money factor should be about 1.75 for 39 mo, so dealer might be marking that up. That’s assuming you have top tier credit, otherwise it could be higher based on your credit.

Also the prevailing advice is to never put money down on a lease.

Interesting, thanks for the input.

I haven't leased a vehicle before and I've never heard that bit of advice about putting money down.

As for the money factor, the dealership hasn't even run my credit yet. As someone with top tier credit, I should expect a lower rate?

 

[Madtroniks]

Interesting, thanks for the input.

I haven't leased a vehicle before and I've never heard that bit of advice about putting money down.

As for the money factor, the dealership hasn't even run my credit yet. As someone with top tier credit, I should expect a lower rate?

It's best to put down as little as possible on a lease because in a situation where the car is totaled, the payout is sent to the bank. This means any equity you have could be forfeited to the bank.

The Pros and Cons of Making a Down Payment on a Car Lease


When it comes to leasing a car, one of the most common questions is whether or not to make a down payment. This decision can significantly impact your leasing experience, so let’s explore the pros and cons to help you make an informed choice.

Pros of Making a Down Payment on a Car Lease

• Lower Monthly Payments: One of the primary benefits of making a car lease down payment is that it can reduce your monthly payments. By paying a portion of the lease upfront, you decrease the amount financed, leading to lower monthly costs.
• Reduced Interest Charges: Although leases typically have lower interest rates compared to loans, making a down payment can further reduce the interest charges over the lease term. This is particularly beneficial if you have a higher money factor (the lease equivalent of an interest rate).
• Increased Approval Chances: If you have less-than-perfect credit, making a down payment can improve your chances of getting approved for a lease. It shows the leasing company that you are committed and financially stable.
• Equity in Case of Total Loss: In the unfortunate event that your leased car is totaled, having made a down payment can prevent you from being upside down on the lease. This means you owe less than the car’s value, which can be a financial relief.

Cons of Making a Down Payment on a Car Lease

• Upfront Cost: The most obvious downside is the initial out-of-pocket expense. Leasing is often attractive because it requires less money upfront compared to buying. A significant down payment can negate this advantage.
• Risk of Loss: If your leased car is stolen or totaled early in the lease term, you might not recover the down payment. Unlike loans, where the down payment reduces the loan balance, in a lease, it primarily lowers the monthly payments.
• Opportunity Cost: The money used for a down payment could be invested elsewhere. When you lease cars with no down payment, you can keep your cash liquid for other investments or emergencies.
• Minimal Impact on Total Cost: Making a down payment on a lease doesn’t significantly reduce the overall cost of the lease. It merely shifts when you pay the money. Whether you pay upfront or monthly, the total amount paid over the lease term remains similar.

 

[McSquashy]

It's best to put down as little as possible on a lease because in a situation where the car is totaled, the payout is sent to the bank. This means any equity you have could be forfeited to the bank.

The Pros and Cons of Making a Down Payment on a Car Lease


When it comes to leasing a car, one of the most common questions is whether or not to make a down payment. This decision can significantly impact your leasing experience, so let’s explore the pros and cons to help you make an informed choice.

Pros of Making a Down Payment on a Car Lease

• Lower Monthly Payments: One of the primary benefits of making a car lease down payment is that it can reduce your monthly payments. By paying a portion of the lease upfront, you decrease the amount financed, leading to lower monthly costs.
• Reduced Interest Charges: Although leases typically have lower interest rates compared to loans, making a down payment can further reduce the interest charges over the lease term. This is particularly beneficial if you have a higher money factor (the lease equivalent of an interest rate).
• Increased Approval Chances: If you have less-than-perfect credit, making a down payment can improve your chances of getting approved for a lease. It shows the leasing company that you are committed and financially stable.
• Equity in Case of Total Loss: In the unfortunate event that your leased car is totaled, having made a down payment can prevent you from being upside down on the lease. This means you owe less than the car’s value, which can be a financial relief.

Cons of Making a Down Payment on a Car Lease

• Upfront Cost: The most obvious downside is the initial out-of-pocket expense. Leasing is often attractive because it requires less money upfront compared to buying. A significant down payment can negate this advantage.
• Risk of Loss: If your leased car is stolen or totaled early in the lease term, you might not recover the down payment. Unlike loans, where the down payment reduces the loan balance, in a lease, it primarily lowers the monthly payments.
• Opportunity Cost: The money used for a down payment could be invested elsewhere. When you lease cars with no down payment, you can keep your cash liquid for other investments or emergencies.
• Minimal Impact on Total Cost: Making a down payment on a lease doesn’t significantly reduce the overall cost of the lease. It merely shifts when you pay the money. Whether you pay upfront or monthly, the total amount paid over the lease term remains similar.

Thank you for the great info!

 

[Scooby24]

Why do it now? Wait till year end. The lease deal is not close to good vs Dec 2024. Dec this year won’t be as good as last, but I bet it’d be better than now. Your 23 won’t deteriorate in 6 months.

I disagree because pricing is likely to be updated by then due to tariffs, and 24s were incentivized to move due to '25 model year changes.

 

[GreaseMonkey]

I disagree because pricing is likely to be updated by then due to tariffs, and 24s were incentivized to move due to '25 model year changes.

The entire world is betting that tariffs will not stick. Otherwise, your 401(k) would be in the toilet.

 

[Scooby24]

The entire world is betting that tariffs will not stick. Otherwise, your 401(k) would be in the toilet.

The tariffs are already in effect and supply chains and costs are already being impacted. They could be removed tomorrow (they won't be) and the impacts will still be felt. The markets are reactive and respond to fears of what's to come to a small degree, which we saw already, but have yet to respond to the concrete results that will be seen in the lagging numbers. We saw it happen in 2022 post COVID.

 

[McSquashy]

Not that I want this to turn into a tariffs discuss, but I tend to agree that we're going to see inflated pricing regardless of whether or not the tariffs are rescinded.

 

[E90alex]

FWIW, my exact 2025 GT order is like $2200 more if I order it today than it was when I ordered it back in February.

But to answer your other question, yes according to Edmunds the “buy rate” from Ford Credit for a 39 mo lease is about 1.75 for top tier credit. The dealer can mark that up for additional profit but you can try to negotiate that.

 

[watchdoc]

Why do it now? Wait till year end. The lease deal is not close to good vs Dec 2024. Dec this year won’t be as good as last, but I bet it’d be better than now. Your 23 won’t deteriorate in 6 months.

Why now? Tariff price increases and elimination of EV lease tax credits before the end of the year. Also, we got a $6500 lease incentive plus employee pricing and no doc fees on our 25 Premium ER RWD and a .24 money factor on a two year lease with 12k miles per year.

 

[dalola]

I'm in talks to lease a 2025 GT w/ Pano roof and no other packages. Dealer is willing to pay off the current loan on my 2023 Premium, which is more than current book value.

All these are monthly payments options on a 39 month / 10.5k miles per year lease. Includes taxes and $5500 in incentives

Residual is 28,520.65
Money factor is 2.45

$2k down $669
$4k down $614
5k down $587
6.5k down $545

What do y'all think? Is this a decent deal?

In the current market, seems average at best. I would NOT do this deal for several reasons...
NEVER put money down on a lease
NEVER take a lease term outside of warranty period (unless extended warranty is included)
Cap cost reduction is not enough
Money factor is too high
Mileage is low, but maybe it fits your annual requirement

If you have money to burn, go for it. But it is NOT a good deal.

 

[McSquashy]

In the current market, seems average at best. I would NOT do this deal for several reasons...
NEVER put money down on a lease
NEVER take a lease term outside of warranty period (unless extended warranty is included)
Cap cost reduction is not enough
Money factor is too high
Mileage is low, but maybe it fits your annual requirement

If you have money to burn, go for it. But it is NOT a good deal.

Thank you! This is the type of feedback I'm looking for.

As for the mileage concern, I only average about 9k miles a year.

Sponsored