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Lease pricing, how much do you pay?

34K views 64 replies 31 participants last post by  WithpainWay 
#1 ·
Hello everyone,

My lease on my current car is up in about a month, and new car shopping is on the way. I hate the dealership, and I hate negotiating prices at dealers..but I love new cars!

I try to find as much information as possible on pricing, etc. before walking into a dealership with regards to lease prices. Usually I have friends or family that has a car similar to what I want.. but the MKC I know nobody with one.

I am either looking at a Jeep (Grand Cherokee) or this MKC. The Jeep lease pricing is a little high for the Jeep I want (leather, heated seats, etc.) so I want to compare the MKC pricing to it.

With the internet and being anonymous, do you care to share your lease details? Price, downpayment, lease term, mileage, vehicle, etc.?


Thanks!
 
#2 ·
Hey Troy,
These are old numbers but they still apply to some degree. 2015 MKC Reserve, list $45715, downpayment, $6,000, 39 month lease with 1,000 mi./mo. at $414/month. The lease rate was 1.9%. I believe my residual to be $24,000. I was considered a Ford family member which "discount" was supposedly applied toward the residual - something I have no way of verifying.
I hope this helps. You'll find a bit of reluctance from the forum members to share this information. I have had mine since mid-July of 2014 (very early adopter!) and still look forward to driving it daily! Good luck!
 
#4 ·
Thanks Bruce and MSM, I understand the reluctance of posting financial information but figured I'd have a bit more luck since it's mostly anonymous. I do love the car and would love to drive one, but as always ultimately it comes down to price. Enjoy the rest of your day!
 
#6 ·
I have been leasing cars for over 30 years. A rule of thumb that I have gone by is NEVER put any money down on a lease. You are just prepaying or buying down the payments. It is not like financing a car, since there is no equity in a lease (typically). I did zero money down, using the Ford x-plan and my least payment is about $460 for 36 months. Essentially the same thing I was paying previously on my Ford Escape, but the MKc has a much higher residual value.
As for the Jeep vs. the MKc. I am sure there are just as many people that feel the Jeep is a POS too. Do your own research, and make up your own mind. Keep in mind, the Jeep Cherokee (not the Grand Cherokee) is built on the same platform as the Dodge Dart.
 
#7 ·
I do do research. All cars have the potential to be a POS. Its how the company handles saddling you with that POS that makes the difference at least to me. Some people LOVE their Jeeps, some think they are a POS.
You take your chances with any car regardless of reviews or what others say about it.

Its the company that makes the difference and if they take responsibility for their mistakes/defects/problems. In my case Lincoln has not. If you read others on here, they also have not, I'm clearly not an isolated incident and I can have an opinion based on my experience. Your experience may be totally different.

Buyer beware, that's all. Ultimately its up to you. And if you choose it hopefully you will find it to be of the quality you expect and trouble free! Good luck with your choice.
 
#8 ·
First post

I leased an MKC Reserve Luxe color sands/expresso interior with Climate Package and 4WD with a sticker price of 44485.

I think I got an incredible deal, I put down the tax plus first payment and a couple of hundred bucks for 2000 total. My payment is 379 a month. I think these deals are everywhere to be had. I don't think I would have leased this car and a higher priced and would have leased a BMW X3. But the lease was so much better on the MKC.

By the way I love my MKC. It might not do anything spectacular (ok the seats are awesome) but just ions nicer user experience then my 2013 BMW X1.
 
#9 ·
I leased an MKC Reserve Luxe color sands/expresso interior with Climate Package and 4WD with a sticker price of 44485.

I think I got an incredible deal, I put down the tax plus first payment and a couple of hundred bucks for 2000 total. My payment is 379 a month. I think these deals are everywhere to be had. I don't think I would have leased this car and a higher priced and would have leased a BMW X3. But the lease was so much better on the MKC.

By the way I love my MKC. It might not do anything spectacular (ok the seats are awesome) but just ions nicer user experience then my 2013 BMW X1.
Hey Adameyeball,
You did indeed get a great deal on your lease! My problem was I bought only the 3rd MKC delivered in my area - a true "first adopter" - and I wanted that particular package and didn't want to wait. I'm still happy 20 months later. At the time I was still working as a Realtor and the MKC fit me perfectly! I retired in June last year and it works even better for me now!
 
#13 ·
Well, the Grand Jeep Cherokee SRT8 is the high performance offering on that line...The older versions were Bullet proof, since Chrysler merged with Fiat, things took a turn for the worst....Why do you think Benz walked away from Chrysler? because at the time they were merged most of the mechanical complaints were dragging the Benz down the mud.
The Sprinter was the worst POS ever introduced....Dodge tried to "convince" me to lease 4 of them for my business....I declined....then started finding all sorts of problems with ones associates had leased....rusting out fist year, doors coming apart, and the issues with their new diesel power plant were causing all sorts of starting problems,stranding material delivery and manpower from going to work at huge losses....thanks, but no thanks LOL!
 
#14 ·
I never heard of that model jeep...how was it high performance? It looks like a v8 engine from the name.

We used to use GM trucks and vans for our businesses but after some big troubles and GM giving us too much **** over it we started buying fords. Ok so far, not perfect. But ions better than GM and this was well before all the other GM problems came out.
 
#15 ·
Google; Grand Jeep Cherokee SRT8.....it IS a V8...it's a high performance version of the GJC, engine, suspension,massive brembo brakes, huge exhaust (3.3/4" ) and the nicest interior one can get....ours was full leather,front/back,yeah awesome Jeep if they continued with the appropriate upgrades (SRT rated) within the entire driveline (they did not to save money.
Dropping the trans and replacing the converter + parts & labour costs was close to $2,800....X 3 times...the diff's clutches were binding from too much heat and that was a $2,000 repair...the new clutches they replaced them with were still the stock GJC clutch plates, yep...you guess it, they started to bind up again in 1600 km...
It took a letter from my lawyer to the dealership owners for them to "honour" the respective warranty...after the repairs that Jeep was never right,listed it and sold it at a slight loss, but started to sleep better at night...The new SRT8 GJC is a force to reckon with....but fully loaded now you're approaching 90K....plus taxes, FYI, cars, cross overs and generally everything automobile in general are WAY pricier in Canada than they are in the USA, plus our devalued weak $ does NOT help matters.
 
#16 ·
#17 ·
#20 ·
I've never leased a vehicle and own/pay cash all my current cars. We don't lease for business either due to mileage/beating on them. When I used to finance I obviously would shop for lowest rate, not sure how everything works with leasing.

Think you got some good answers from the other posters on what they got. Think it varies depending upon your area/availability/options/demand but that should give you a good idea. Check out true car too, think they do leasing prices as well and it goes by your area.
 
#19 ·
Sorry Troy14....I would have offered you lease guidelines, but I also bought my 2016 Lincoln MKC outright, so I would not be that helpful, hope you get sufficient input form members here,wish I could help.
 
#23 ·
I have leased my last 5 vehicles. I like having a 'new' vehicle all the time, not having to worry about repairs (usually! - the MKC seems to be the exception) and I only keep a car for 3-4 years as I seem to get bored with them and like to get one with all the new features. In the long run leasing is probably more expensive but I just allow for the monthly payment in my budget.
 
#24 ·
INCREDIBLE lease rates in Southern California

Dealers are leasing the MKC w/ select, BLIS & nav for $289/mo + tax w/ $3495 down. Not too bad.

I had almost 9k negative equity in my Lexus ES300h (go figure, I thought Lexus had the highest resale values.. not any more), and they were still able to do the lease with only $3000 down, they applied the $2000 factory rebate and my payment is $628 including tax (8%).

They sold the car to me at invoice to get that payment, and I went for the 10.5k miles per year, tier 2 cred. I thought it was very reasonable given the situation with my Lexus. Now I am in a good lease that I only have to stay in for 3 years and I can return the car with no negative equity after that. :)
 
#25 ·
Leased on Monday. 2016 300a Reserve 2.3 AWD, everything but the tech package. MSRP of $45,655. Qualified for $4,000 in rebates ($2500 Lincoln Spring event, $750 private cash and $750 first responder as I'm a volunteer FF), put $3,000 down. 36mo/12k per year on a tier 0 lease, came out to $399/mo out the door (base + 7% sales tax, local property tax of ~$100 a month rolled in). Added wearcare to cover up to $10k in wear items at lease end for $465, considering my Fiancee is driving it and it's black exterior on white sands interior.

Lincoln really hit the nail on the head with this MKC. Forgetting about the sticker price, you cannot lease a more powerful, better equipped small SUV/Crossover for under $400 a month with all taxes included. It's amazing to me the amount of features and technology packed into this vehicle and the overall quality of the interior design and materials.
 
#29 · (Edited)
Every financial article I ever read on car purchasing shows purchasing is the better financial decision as you have equity at end of your 36-48/mo buy, 60mo only if rates VERY low. I'm seeing these numbers and at end of term you have nothing. For an extra 1-200/ mo at the end of term you have an asset you can apply to next purchase. Once you buy the 1st vehicle, you always have the downpayment in the future.
Seems the only 1 that benefits in leasing is the salesperson that gets his commission every 3 yrs.
 
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#30 ·
Lease/purchase debate is endless. There is no right answer for everyone. However if I put that extra $$ every month into my bank account I also have an asset that I can easily apply to my next purchase vs. either getting screwed over on dealer on value of trade-in or trying to sell my car and dealing with those hassles.

Let's use my lease.... $46,000K MSRP, for simplicity sake let's just say that negotiation of sales price offsets my 7% taxes, plates, etc. With no money down, as I did with my lease - and I mean absolutely no money down, even the first month lease payment (60 month) was included in my lease deal, payment would be $837/mo (60 months @ 3.5%). I'm paying on 36 month lease $407/mo (includes FL tax). That's a savings of $430/mo. At the end of 36 months I'll have saved $15,400 ($430 x 36) in payments that I can apply towards my next vehicle.

At the end of 36 months I would have owed $19,360 still on my 5 year loan. No idea what a dealer might offer on trade-in in three years, but let's be generous and say it's 60% of MSRP, that's $27,600, or about $8,000 equity. Conversely by leasing, as I mentioned above, I would have saved $15,000 by having a lower payment. So using my actual lease as an example I'm $7,000 better than purchase.
 
#31 ·
To expand on my earlier post above, another way to look at loan vs. lease. Let's say you keep your car for 6 years.

Loan:
$50,000 Total of payments (5 year loan @ 3.5%)
+$1,500 Cost of maintenance (minimally a set of tires, some additional oil changes, wipers and perhaps a repair)
-$14,000 Value of vehicle at 6 years (again, no idea what it would be worth, but I'll use 30% as a reasonable estimate, see "note" below)
-----------
$37,500 Net cost of ownership after 6 years
=====

Lease - Two 36 month leases, using my lease on 2017 Reserve with $46,000 MSRP as example
$14,500 (Cost of first 36 months @ $407/mo)
$16,000 (Cost of second 36 months with 10% increase due to inflation - generous)
---------
$30,500 Net cost of leasing for 6 years (maintenance and repairs are all included)
=====

So.... for 6 years your purchase/loan would cost $7,000 more than my cost to lease. Additionally, I get a vehicle that has the latest features and styling (e.g., I'll be able to get into the newly restyled MKC). I also have option if I don't like the MKC or there's something new to easily jump into it after 3 years. Just think where hybrids might be by then.

Every loan vs lease option needs to be analyzed on it's own costs. I've bought and leased cars based on expected cost of ownership.

Note: According to this article, it mentions that Kelly Blue Book estimates a 5 year old car will depreciate by 65%, so I've used 30% for 6 year old car in my example above.
 
#33 ·
To expand on my earlier post above, another way to look at loan vs. lease. Let's say you keep your car for 6 years.

Loan:
$50,000 Total of payments (5 year loan @ 3.5%)
Lincoln is giving 0.0% for 5 years.

Not a fan of leasing myself but when the money is free I will always take the loan.
 
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#32 · (Edited)
I see your numbers but also see flaws in them.
1. 5 yr loan esp at 3.5 %, Try 36 months at 1.9-2.9% tops. That's easily another grand over your term.
2. Should have been able to negotiate 7-10% off MSRP
3. Those same $1500 cost of maintenance exist as I know of no leases that buy you tires , brakes not needed unless you drag them, etc.
4. That 5% you chopped off trade in was another $2500.

So using ballpark numbers and knowing 6yrs is definitely a long time and at this point its often is more about condition than mileage I see your $7000 number and have removed
~1000(finances for poor loan) + 1500 (maintenance-they all need it) + ~$2300 (for my 10% v your 5% negotation skills) = ~$ 4800+. So using your numbers I see you are still ~$2200 ahead.
Now the tables turn. My mileage is unlimited and hold true whether I drive 5000 or 50000 miles/yr. Obviously if its very low mileage, car is worth A LOT MORE at resale time which will further erode your savings. I can do whatever I want to the vehicle, say upgrade premium sound to superior sound, tune the motor, etc. You are stuck for 3 yrs with a potential lemon or vehicle that has a quirk you hate. I can unload trouble in a yr (take my lumps of course) or keep it forever if I love it and it is useful for my life. I am not easily impressed by the latest and greatest. I have a Range Rover Sport HSE for that BTW. Many states, I believe, consider a loan a liability on your credit rating, whereas a loan/purchase is an asset.

Now to really upset your numbers, do what I did. Haven't owned American (Isuzu Ascender is actually an Envoy gussied up) since my 99 SVT Cobra. Loved the powertrain but build quality was a Nasser POS. I voted for T so I put my money where my mouth was and revisited Americana car world. Was quite shocked at MKC quality, looks, and esp as a racer the way it drove thru the twisties on par with my X5's ! Was ready to buy a 2017 Reserve ~47000 (my deal would have been ~42000) when I saw a loaded 2015 MKC (identical car) on lot with 17500 on odometer. Why pay $42000 when I can walk out door for $29200+ tax ( btw much less due to trade in associated with the deal-> forgot to throw that into my pricing so take another grand off your deal) with a 3 yr note at 2.34% =$496.30/month. So except for the Ecoboost badge on mine v a 2017, 99.99% of the public thinks your car and mine are identical yet even with your numbers, I'm at or ahead of you, can do what I want to vehicle and as a bonus, will have an asset at trade in time which if I keep it for 5-7yrs may be only $5000, but if I drive it for 3yrs and put 50K on it, will be far closer to 10K in my pocket. while you are at ZERO.

I have always said it and stand by it, you lease if you have tax laws in your state (property tax that make ownership prohibitive-sketchy on this stuff), or its a business expense. Otherwise you lease it if you can't afford the extra upfront costs to achieve ownership that first time, which, in turn, allows you to climb the ladder with vehicles by always having a trade in to use as your downpayment. Even if you finance 50K everytime you get a new vehicle, every time you have a 10-20K trade in, you can buy that much more vehicle and have no negative effects on your ownership costs, or if you have reached that self-determined pinnacle, your ownership costs go down by 10-20K each vehicle.

I took 20yrs to climb that ladder, first with lesser known vehicles, then with some very savvy purchases during the recession. I see many young individuals foolishly thinking they are in same lap of luxury yet I own it, while they lease it. Go talk to any accountant and have them do the math. I did not get technical, I am not an accountant. My sis is a multi-million dollar financier however (has said no to Trump) and gave me my education VERY early in life. To this day, she won't buy unless its cash! God forbid you mention lease, and she just laughs having seen the extra millions the bank industry rakes in on leases v loans (reason they LOVE 60-72 month terms btw, yet leases still trump all that time))

Good debate. nothing personal. I just love to hold my titles and sell my unusual purchases on my own for lots of extra $$$.
 
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#35 ·
I see your numbers but also see flaws in them.
1. 5 yr loan esp at 3.5 %, Try 36 months at 1.9-2.9% tops. That's easily another grand over your term.
2. Should have been able to negotiate 7-10% off MSRP
3. Those same $1500 cost of maintenance exist as I know of no leases that buy you tires , brakes not needed unless you drag them, etc.
4. That 5% you chopped off trade in was another $2500.

Good debate. nothing personal. I just love to hold my titles and sell my unusual purchases on my own for lots of extra $$$.
Addressing your counterpoints :)
  1. If you reduce loan to 36 month at 1.9% then that's $3,000 savings.
  2. Go back to my original message and I noted that I was basically offsetting any negotiated savings with taxes paid (varies on state). It also averages what people may do. You may be able to negotiate 10%, others may only get 3%. I figure a rough average of 7-7.5% for most states tax rate is reasonable proxy.
  3. I've never paid to put new tires on any vehicle I've leased. Typically tires shouldn't need to be replaced within a 3 yr/ 36,000 mile lease. If I do then I can count on needing tires again within the 6 years that you'll own the vehicle.
  4. The "chop" was for 1 year additional ownership. Refer to the link I had provided, the 60% was based on 5 years.

So, the only "savings" is the $3k in the loans. The gap was $7k, so leasing still less expensive. I'll ignore the concept of opportunity cost, but it's pretty high here and would offset a significant portion of those savings by paying the loan off faster.

Was ready to buy a 2017 Reserve ~47000 (my deal would have been ~42000) when I saw a loaded 2015 MKC (identical car) on lot with 17500 on odometer. Why pay $42000 when I can walk out door for $29200+ tax
My points were in regards to buy vs. lease, not scouring lots looking for a deal on a used car (a whole new set of assumptions to try and wrap around that discussion). But thank you for your figures. I'd guess that the MSRP on the 2015 was $45,000, that means you paid 65% of original MSRP. The sucker who traded it probably got around 55-57% (somewhere around $25-26K) for it. That seems to justify my 4th bullet point above, that after 6 years a used MKC would be worth 30% of MSRP (6-7% drop per year).

Honestly if lease was slightly more expensive I'd opt for that most likely for reasons I noted earlier. Just in my case leasing came out to be less which just made my decision even easier. No one right or wrong choice.
 
#34 ·
I have both purchased and leased vehicles and have no strong feelings one way or the other. Depending on your own circumstances, you can easily create a financial model that justifies either one.

If I had excess cash I would purchase outright but generally that money is tied up in investments that earn as much as current interest rates. Therefore I end up purchasing with a loan or leasing. My wife uses her vehicle for business about 70% of the time so leasing simplifies and evens out the expenses. If we like the vehicle, we can buy it out for the prearranged price and after a while can sell it privately and get good value out of it.

I have generally purchased my vehicle with the idea of maintaining some equity which I can use to step up. As well, any after-market modifications would not be an issue, as they would be with a lease. However, when I acquired the MKC and needing to keep three vehicles in the family, I still kept my previous (four year old) vehicle and sold a thirteen year old one so I didn't have significant equity available to put into a new one. Being retired and on a reasonably good pension, leasing a new vehicle every four years makes more sense for me at this point.

I did consider some comparatively priced vehicles of other makes but their lease and finance rates made them significantly more expensive over a four year time frame.

There is a saying in business that applies for some of us: "own what appreciates and lease what depreciates".
 
#38 ·
All good stuff. I like the title in my hand and asset, a lease is a pure liability in the accounting world. Good discussion. I abviously was there to take advantage of that sucker trade in! That was a besides that I do not want to interfere with the original discussion. I do things to my cars, therefore I need to own them.

I ALSO HAVE PRIDE IN OWNERSHIP, and am not contributing to the financial negativity so prevalent in our country. Leasing is very similar to CC debt IMHO.
 
#44 ·
They makes tons of money on all the lolly pos that go for VIN etching, Simoniz, scotchguard.........JUST SAY NO...same with extended warranties>>>just say NO! Wouldn't sell them if they didn't make money on them!
 
#45 ·
Got my 2017 at Invoice ( they dealer gave me a copy of the invoice), plus Lincoln gave me 3250 in incentives for a returning customer, RCL cash, Private Invite Cash and they waived the last three months of my over mileage lease. All in all I got a BL loaded with every possible option for $590 a month @ 15K mileage per year. (I paid the tax in cash). NOW IS A GREAT TIME TO BUY.
 
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