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2013 and earlier Ford Mustang Lease Questions

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  • gzgtpgzgtp Posts: 83
    Its FWD that you want if you are worried about driving in snow.
  • sasukesasuke Posts: 77
    I was comparing the GT Deluxe to the V6 premium and it seems for the money, wouldn't the GT be a better buy? Considering the GT Deluxe comes with Traction and in the V6 you need the premium. What do you guys think?
  • gtgtcobragtgtcobra Posts: 259
    Definitely get the new 2006 GT.
  • gzgtpgzgtp Posts: 83
    Drive both, you will see that the V6 is merely a shell of the GT. Lay out the extra cash, you won't be sorry. :shades:
  • sasukesasuke Posts: 77
    thx...it's probably worth it, and i'm sure in 3 weeks or so the price will drop somewhat considering they want to get rid of the 06s for the 07s
  • sasukesasuke Posts: 77
    o yea...another question..How is the Shaker 500 Watt system?
  • pony_piratepony_pirate Posts: 317
    Most will like it, as it's much better than your average car stereo, but as an "audiophile," I am luke-warm about it: the speakers rattle at certain upper bass frequencies. The midrange is dull, thin, shrill when pushed. The overall sound lacks warmth and detail. The speakers, er, are cheap. Often, I leave the stereo off, so I can listen to the engine, which is much more musical and satisfying. :shades:
  • sasukesasuke Posts: 77
    So maybe it's not worth getting the shaker and putting custom speakers?
  • pony_piratepony_pirate Posts: 317
    The Shaker 500 comes standard with the GT Premium. I don't know about other models, tho.
  • durability05durability05 Posts: 142
    Okay, here is all the numbers for you. I leased an 06, V6 Premium w/pony pkg convertible, automatic trans. Got it 02-2-06. With the lease factor crunched in real numbers, it was equivalent to 1.5% interest, a V8 GT lease would have equaled 7.5% in real numbers. That is the program Ford Credit had back then. The MSRP was $28,400, I got it down to $26,000 , or $100 over invoice. My lease payment is only $279/ 36 months , residual is approx. 55% or $14,000.
    I did have a total down payment of $3500, or $1500 more than required. Bottom line, get a deal similar to mine, but at or below invoice at least, it is already May, and the 07's are out this September. The V-6 is actually quite peppy from a standing start, at higher revs, it is sluggish. A GT is the way to go, but will end up costing you $4k more in intial price, and probably $2k more in interest etc. Also I am not impressed with my Shaker 500, I plan to replace it with a Pioneer AVIC stereo with GPS
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi ajpbf7. In all of the areas that I have seen its lease program in (Ford's leases often vary by region), Ford Credit's current base lease rate for the 2006 Mustang Coupe GT is still 8.0%. Its 24 month lease rate isn't much better at 7.75%. This car's 24 and 36 month, 12,000 mile per year residual values are currently 66% and 56%, respectively. Its 10,500 mile per year residual values (for some reason Ford Credit has resids for 10.5K instead of 10K like most other banks) would be 1% higher.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    I'd be happy to give you an idea of how much the car you are considering will cost to lease, ogmaster. However, in order for me to do so I need you to provide me with its full MSRP and to tell me how many miles per year you need to be able to drive it. Let me know and I'll use Ford Credit's actual current lease program to estimate this car's lease payment for you.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hey ajpbf7. In most areas that I have seen this car's lease program for (Ford Credit's lease program often varies by region), if you were to lease a 2006 Mustang GT Coupe through Ford Credit for 24 months with 12,000 miles per year, its base lease rate and residual value should be 7.75% and 66%. The numbers for an otherwise identical 36 month lease should be 8.00% and 56%. If you lease with only 10,500 miles per year your car's residual values will be 1% higher.

    Car_man
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  • pony_piratepony_pirate Posts: 317
    Why lease at 7.5-8% when you can buy at 5-6% (unless the interest is a business deduction)?
  • ekmajmekmajm Posts: 2
    Thank you for your service! We can definately use it! My husband is in love with a 2006 V8 Mustang and we are considering leasing it to see if that would help it fit into our budget more easily. We have leased twice before, and have made mistakes both times. Please help us know what questions to ask and how to be prepared when we step into the dealership so we may make a more informed decision. Thank you!!!
  • ekmajmekmajm Posts: 2
    I've been educating myself online and now feel much better about leasing terminology, pros & cons. However, two questions remain: 1. How much of a disadvantage would I find myself if I threw an upside down vehicle into a lease? 2. Is it truly unwise to lease a car in Texas?
  • mindlessmindless Posts: 1
    I recently turned 18 and ruled buying a car out of the question at this age due to my lack of credit, and I refuse to let someone cosign for me.

    I therefore looked in leasing, I love the 2005 Ford Mustang GT Coupe. However, leasing will only permit for the 2006 or 7. I like the 2006 equally as much. The car dealer gave me alot of gibberish. Really I just have some simple questions regarding leasing. If I were to lease the particular vehicle, which the sticker current is 26, 705 (assuming that was the final price agreed on)... for a 36 month lease, would it be something ridiculous? According the the online payment calculator for ford, which I don't like too much ... for a 36 month it would end up being 382 a month and I'd need to put down basically 4800 to start.

    I'm thinking more realistically, what do you think it would eqivalate to? Not to mention, I have no built up credit because of age and lack of long term contracts prior, I don't have bad credit, just no built up credit. When it comes to leasing, will they turn me down because of my age and fresh credit?

    Thanks,
    Louis!
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi ekmajm. Since you haven't had any success with leasing in the past, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment. Once you have read them, let me know if you have any other specific questions about leasing in general or specifically about leasing a Mustang.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hello ekmajm. In the past consumers in Texas have often gone with balloon notes instead of leases on vehicles because of the tax laws. I have seen a lot more talk about leasing in Texas recently which leads me to believe that the sales tax laws for leasing may have changed there, but I am not positive that is the case.

    Other than the fact that it is not really a wise financial decision to get a new vehicle when you are upside down on your current one, I don't think that leasing a new vehicle when you are upside down on your current one puts you at any disadvantage. Just keep your new vehicle and trade-in transactions separate until the last minute. Negotiate the lowest possible selling price and lease payment on your new car and then have the dealer tell you how much your payment would change if you added your negative equity into the equation.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hey Louis. Ford's current lease program for the Mustang GT is pretty bad. It is a fairly expensive vehicle to lease. I can give you an idea of how much it should cost to lease the exact car that you are interested in right now if you provide me with an approximate selling price for it. It is important to remember that the selling prices of leased vehicles can be negotiated, just as if you were paying cash for or financing them. Let me know and I'll tell you the monthly lease payment.

    Car_man
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  • I am planning to lease Mustang 2007 GT Premium. TOTAL MSRP quoted by the local dealer here in Cleveland is $29,225 with 24 month lease and 10,500 miles per year. BTW, its auto, I requested the quote for manual too, I guess the quote was close to this one.

    Let me know what would be monthly payment for the car....

    Thanks,
    Josh.
  • mschmalmschmal Posts: 1,757
    Josh,

    When Carman said the lease program is bad on the GT, he means that the lease payment will be almost the same as a finance payment.

    While the residual will be 69% for 24 months, 10,500 miles, there is no rebate and the lease interest rate is 7.75%!!!! You are going to easily be over $500 a month probably close to $600 after taxes and MV fees.

    Mark.
  • Hi Josh. You never mentioned the selling price of the car that you are interested in leasing. This is an important number for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing the price of the car that you want to lease you don't know how good a price you are getting it for. The second reason is that one needs the selling price of a vehicle that they want to lease is that it is necessary to calculate its lease payment. I would be more than happy to work up a sample lease payment on the car that you are interested in for you if you let me know what its selling price is.

    For now I can tell you that the Mustang GT's lease program is not very attractive.

    Car_man
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  • Due to a money crunch and probable blown head gasket/cracked head on a '98 Outback w/140k I am going to sign for a lease on a '07 'stang on thursday (2/15). There is a lot of emotion in this decision as I have wanted a Mustang since I was 14, and am 41 now.

    The work sheet for purchasing the car is easy to follow and understand, but i am never comfortable following the numbers on a lease work sheet. Here is the information right off the lease worksheet. MSRP-24,850 LEV (residual - 54%) 13,419. Term 36mo, rate 6%. Cash down $2,000 (to help get monthly where i need it to be) rebate $1,000 Trade $3,500, total Working Cash $5,500. Selling Price $23,319.45, Capped adds (told was acquisition fee) $595, Cash Cap reduction $1,449.19, Total Cap reduction $5,949.19, Adjusted Cap Cost $18,722.63, Base monthly rental $227.32, total monthly payment $241.31, sales tax $1261.01 Upfrt Annual fees 39.50, Upfrt initial fees 20.00 security deposit $250.00, Amount due at start $5,500. Mileage is 12k.

    If i buy the car at the end of the lease, my total outlay will be about $27,500 with property taxes included in the payments. My plan is to keep the car for a long time. Due to amount of cash needed up front for an affordable finance payment at this point in time a lease is looking to be my only option. I can get 5.56% from my credit union but would have to pay for 6 years and come up with $2,000 more for a downpayment than i will with a lease. The total monthly payments would be about $15 more a month, and the total over 6 years is close to the same, but i would have to pay the tax seperate. The sales rep is one of my clients and i trust him. I don't know if I trust the sales manager as he is the one that runs the numbers, and I don't know him. I don't know if he is taking advantage of all the hidden treasures in a lease for them to play with. Am I getting hosed on this lease???

    Thanks for your help. I am supposed to sign the papers and pick up the car in 2 days.
  • mschmalmschmal Posts: 1,757
    Also, there is about 50 different ways leases are calculated...one for each state. What state do you live in? What is your zip code?

    First, one of the things that people do not realize with leaseing is that cap cost reduction gives you no benefit. When you finance a car, every dollar you use as a down payment saves you money in the long run because you pay less interest.

    In a lease, the interest is considered the "rental fee" The amount of interest you pay is calculated BEFORE down payments are subtracted. The downpayment comes off of the total Your cap cost reduction of $6,000 is basically just paying your monthly payments ahead of time. BUT IT DOES NOT lower the amounth of interest you pay.

    Most people lease with little or no Cap Cost reduction. Obviously this would put the payment up, but you would have a substantial sum of money in the bank to draw from to meet those higher payments.

    Most people DO NOT buy their leased vehicle at the end of the lease unless they have no choice due to huge overmilage charges that they can't afford.

    Your lease end value is probably much higher than the street value of the car at turnin. Accordingly, do not assume that you are going to buy the car at the end of the lease, this just may not make sense.

    The selling price of the car is negotiable. Use Edmunds TMV to make sure you are getting a good deal.

    If you finance, at the end of the 6 years, you'll have a car that you own. If you lease, at the end of 36 months, you have nothing. Most importantly, you do not have $3,500 in trade equity.

    Mark.

    PS You are kind of screwing yourself for your next purchase when the lease is over. Assuming you do not win the lottery, you are not going to have a $3,500 trade for your next vehicle. This trade is probably saving you $100 a month. Which means in 3 years you are not going to get the same car for the same payment.
  • seanwestseanwest Posts: 6
    Car Man,
    Could you tell me the current residual and money factors for the Mustang GT Deluxe Coupe w/automatic? 12k, 36mo.
    I know they usually are poor on this type of car.
    Thanks,
    Sean
  • mschmalmschmal Posts: 1,757
    North east region:

    First the Good news. A GT has a residule of 58%!!! for 36 mo/12kmiles/yr.

    PLUS there is $995 rebate or "free auto trans".

    Now that bad news. Money factor is 7%!

    for comparison, the MF on a 39mo Fusion AWD is 1.25%!

    Accordinly, the Mustang GT is not a very good lease.

    Mark
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hello Sean. You;re right, Ford's lease program for the Mustang is not very attractive right now. Here's the information that you're looking for. Ford Credit's current base lease rate and residual value for a 36 month lease of a 2007 Ford Mustang GT Coupe with an automatic transmission with 12,000 miles per year are 6.5% and 57%, respectively. As you can see, Ford Credit publishes lease rates instead of money factors for the vehicles that it leases. You can convert its published lease rates into approximate money factor equivalents by dividing them by 2400.

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  • gtucker4gtucker4 Posts: 8
    Hey CarMan,

    I'm looking at leasing/ballooning a Mustang V6 right now. I'm in Little Rock, AR, but I've got an address in South Carolina I would use to register the car, because they get an extra $995 in customer cash. I'm going to switch the tags over after registration is complete, so for now, I'll use 29118 as the zip to do the deal. I'm only looking to keep the vehicle for 24 months, until the 2010 model comes out. I'm currently balloon financing both mine and my wife's 2006 Honda Accords, due to the tax laws regarding leasing here in AR. I've already negociated the price of the new cars down to the point where the negative equity added would still make the total sale price of the new cars less than the payoffs of both Hondas, so I'm thinking I should be able to get a manageable payment, but I know that depends on rates and money factors. Another site lists the V6 coupe as having a 63% ALG residual for 24 months, and 52% for 36 months. Total price for the one I'm trading for my use will be $22,025 with all rebates factored in, as well as what I'm upside down in the Honda for. The payoff for 30 Apr 07 on the Honda is $22,090 and I have exactly 23 payments on it totalling $8446 until the balloon is due, which I have no intentions on paying. I'm wondering what my payments would be like on a 24 month balloon or lease, and I'm also curious about the 36 month term as well. The dealership kept asking me who I was financed through for my Hondas, guess they were trying to get an idea about my credit rating. AHFC all the way, and I didn't think the 5.14% is that bad, considering I didn't even have a job at the time, because I had just come back from overseas a few months prior to that. Thanks in advance for any help you can give me.
  • gforce11gforce11 Posts: 225
    Carman,
    I am contemplating a lease end of the month for a 07 GT. I was wondering if the MF and Residual have/will changed from April's 6.5%, 57%. Any ideas?

    Thanks.
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