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Ford Mustang Lease Questions

CarMan@EdmundsCarMan@Edmunds Posts: 38,518
Hi everyone. Please use the following discussion to post any questions that you have about leasing a Ford Mustang. Thanks.

Car_man
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  • I recently ordered a Mustang GT coupe pretty much loaded. The sticker is an even $30,000, but I got the x-plan at $27,700. It arrives the 2nd week of October.

    Can you tell me if they are using decent ratios for a lease right now...I may want a 24 month lease with an option to buy at the end if it looks good.

    Thanks in advance for any tips.

    Bob
  • Hi Bob. Since the redesigned Mustang has been so well received by the public, Ford has not needed to provide much in the way of lease support on it. As a result, it's current lease program is nothing special. If you were to lease a 2006 Mustang Coupe GT through Ford Credit right now for 24 months with 15,000 miles per year, its base lease rate and residual value should be 7.75% and 63%, respectively. At least you are getting this car for a great price through Ford's X-Plan.

    Car_man
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  • Thanks...I will probably just buy it with the information you provided. I was just considering a lease because I seem to go thru cars I buy every 2 years or so and thought a lease might take the hassle out of getting rid of the old one.

    Thanks again.

    Bob
  • jsb5jsb5 Posts: 3
    I am interested in getting a 2006 V6 Premium Coupe toward the end of the year. What are the interest rates and residual factors available for a 24 or 36 month lease with 12k or 15k?

    Also, someone has offered me the use of their x-plan. How can I take advantage of this?

    Finally, I am looking to get the car in January. When is the latest I can place my order?

    Thanks for your input.

    Jeff
  • Jeff,

    I'm 4 weeks into the wait for my 06 GT and the expected delivery is in 4 more weeks...so plan on 8 total. It took a full 2+ weeks to get a build date from Ford.

    As for lease rates, 7.75% doesn't sound too good when loans can be found for around 5% right now.

    Good luck.

    Bob
  • You're welcome Bob. I think that you are making a wise choice. Ford's lease program on the Mustang is just not very attractive right now.

    Car_man
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  • Hi Jeff. I can give you an idea of what the lease program is like on this car right now, but Ford's current program is only scheduled to run through October 3rd. It will be different when you take delivery of your car. If you were to lease a 2006 Ford Mustang V6 Premium Coupe through Ford Credit right now for 24 months with 15,000 miles per year, its base lease rate and residual value should be 7.75% and 56%, respectively. The numbers for an otherwise identical 36 month lease should be 7.75% and 46%. If you were to lease with only 12,000 miles per year, its residual values would be 2% higher. If you are able to purchase this car through Ford's X-Plan your lease payment will be based upon an attractive set price.

    Car_man
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  • I just recently got a quote for a lease. my father is buying me a car for graduating college, and his brother works for ford so we get them on A-plan. but the point of all this is we looked at a v6 convertable we can get for 26,300 and the GT hardtop for 26600, ($300) difference right.. the lease quotes we got for both a 26 and 24 month lease 15,000 miles.. the were over 100 dollars difference. why is the GT's lease so much more. over 100 dollars on the 36 month and about 120 on the 24 month. the gt 24 month was about 460. i mean for 300 dollars more i can lease 5 series BMW. is this an error or do you think im getting screwed? the reason i am asking is my father wants a convertible because we are going to share this car and if i want to pay this diffence to get a gt convertible i could but i can't imagine the price difference between the gt and the convetible if the v6 convertible and the GT are that same price, would the lease payment be like $600. for the some reason the dealer would not give me a lease quote for all 3 of these cars just the v6 and the GT hardtop.. please help!!!!!!!!!!!!!!!!
  • Hello huddy32. The reason why there is such a big difference between these cars' lease payments is that Ford is providing a lot more lease support on Mustang V6 models than it is providing on GTs right now. I guess that there is a more ample supply of the base Mustangs or that the demand for them is not up to the level of demand for the GTs. Ford Credit's 24 month lease rate is only 1.0% for the base Mustang Convertible versus 7.75% for the Mustang GT Coupe. Similarly, the 36 month rates are 1.25% versus 8.0%. The residual values for the base Convertible are 1% higher than the GT Coupe's residual values as well. The exact difference this makes in lease payments will depend upon the MSRP and selling price of the cars that you are interested in, but it's safe to say that the GTs are a lot more expensive to lease than base Mustangs are right now.

    Car_man
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  • Carman
    I was reading your jan.22 response to Huddy32 about the better deal Ford has on V6 convertibles. Is it advisable for me to lease a V6 convertible on the 1.25% 36 month then purchasing later, or should I just buy it at 60 months and 7.9% interest thru Ford Credit. What does 1.25% mean, does it mean 1.25 percent interest on the entire principal annually during the 36 months. Is it worth the extra $50 I will shell out a month in increase insurance?
  • I leased a 2006 V6 Premium convertible with the pony package. List price of 28,260, agreed lease price of 26,100. Total money down of $3,600 got me the 1.25%/36 month with a residual of $14995. Monthly payment of $279 plus CA. tax of 7.75% = payment of $300.22 / month.
    The capitalization of $24,500 , means that I will only pay
    $700 in interest over 3 years, amazing. I traded in a 2005 Focus which I bought for $12K a year ago and got $10,000 for it. Total loss on the Focus is $3500 in payments and $1,200 in sales tax over a 14 month period.
    I only owed $6400 on the Focus
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi durability05. When leasing, unfortunately you are not just paying interest on the selling price of your vehicle. Its MSRP is taken into account as well. This is because the bank that you are leasing through has to lay out all of the cash to purchase your vehicle from the dealer. Furthermore, consumers who lease have to pay an acquisition fee that you wouldn't have to pay if you were financing. I believe that Ford Credit's current acquisition fee is $595. Still, given the substantial difference between the two interest rates that you mentioned, you still might come out ahead by leasing. This assumes though... and this is a very big assumption... that your car's lease-end purchase price is reasonable. If its residual values are unrealistically high, this is a good thing because it keeps your lease payment down, but you wouldn't want to buy your vehicle at the end of your lease. Of course, there is the insurance aspect as well. Companies that lease vehicles require consumers to have a certain level of coverage that might be more than you normally would spend. If I was personally in this situation, I think that I would take advantage of the special lease program, drive the car for a couple of years and then decide if I want to keep it. If its lease-end purchase price is unreasonable high and Ford Credit won't negotiate it with you, you can just turn your car in and take solace that you came out ahead by not paying as much depreciation as you should have. As an added bonus, if your car is in an accident during your lease you don't take the hit on resale value like you would have had you owned it.

    Car_man
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  • pony_piratepony_pirate Posts: 317
    I just don't see leasing as a way to get ahead under any circumstances. First, I find it hard to believe that depreciation is more than the cost of leasing, say ~$4000 dollars a year to lease a Mustang GT.

    Second, at the end of the lease period you have nothing, you own nothing, all the money you've spent hasn't gone toward the purchase of the car.

    The only reason to lease, as I see it, is if you're a business and plan to take it as a tax deduction, in which case deducting the cost of the lease is greater than deducting depreciation.
  • cc72cc72 Posts: 8
    I'm returning my Mustang in 2 months. The other day, my tire blew out, so I need 1 new tire -- 225/55-16. I'd rather not spend upwards of the $150 I've been quoted. Any suggestions?

    Also, would it be a problem to drive with the spare until I return it on May 26th? I purchased a warranty upfront that should cover me for up to $2500 in damage -- WearCare. The spare isn't as large as the other three, but it isn't a donut either. The manual says not to drive more than 2000 miles total on the spare.
  • Carman
    More good news, my residual after 36 months is 53% of the MSRP. Its $14900 only (actually neither too high nor too low) the 1.25% is what kept my payments low. I use no cash out, just my trade, and they originally offered me $2,000 over payoff, and ended up with $3500 over payoff and $100 over invoice as agreed price. Ford Red Carpet is very lax on insurance and included gap insurance. They also paid my first payment. I do intend to buy the car later, by then I will have to face 7 to 8 percent interest rates??
  • redc0ugarredc0ugar Posts: 55
    After the Detroit Auto-Show, newspapers started showing the v6 ponies leasing 24 months @ $139 a month...ZERO DOWN.
  • pony_piratepony_pirate Posts: 317
    That may be a pitifully stripped-down version. Widely distributed TV ads show a figure of around $250-260/mo.
  • The real figure I think is $259 /36 months $999 down plus etc = $1900 total to start for an Automatic premium coupe.
    However the lease offer ended here on Feb.28 Then this week all 2005 mustangs coupe or convertible V6 are now $5,000 below MSRP. I could have bought a premium V6 convertible with no ABS and TCS for less than $22,000 plust tax & lic. However no pony package are available for 2005. After buying the pony package, I think this is the only way to go for a V6, the car looks like a GT , except for the grill. anything less than that is plain vanilla.
  • pony_piratepony_pirate Posts: 317
    The car may look like a GT, but isn't.
  • Correct, it is only a V6. For some of us , we just need an above average sporty convertible that is enjoyable to drive with style. We don't need the 5 second 0 to 60 or 150 mph top speed. What puzzles me, is why does the GT only have the 17 inch wheels with the 235/55/17 Pirellis. Isn't that a little bit under tired? I think this setup on my V6 convertible with the pony pkg. should have been standard on all V6 mustangs. Also correction some 2005 V6 deluxe are now $6,000 below MSRP.
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