2013 and earlier Ford Mustang Lease Questions

CarMan@Edmunds

Hi everyone. Please use the following discussion to post any questions that you have about leasing a Ford Mustang. Thanks.

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skiutahbob

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

CarMan@Edmunds

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.

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skiutahbob

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

jsb5

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

skiutahbob

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

CarMan@Edmunds

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.

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CarMan@Edmunds

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.

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huddy32

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!!!!!!!!!!!!!!!!

CarMan@Edmunds

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.

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durability05

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?

durability05

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@Edmunds

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.

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pony_pirate

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.

cc72

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.

durability05

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??

redc0ugar

After the Detroit Auto-Show, newspapers started showing the v6 ponies leasing 24 months @ $139 a month...ZERO DOWN.

pony_pirate

That may be a pitifully stripped-down version. Widely distributed TV ads show a figure of around $250-260/mo.

durability05

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_pirate

The car may look like a GT, but isn't.

durability05

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.

pony_pirate

18 inchers are now an option. To my knowledge, they don't improve performance one whit, only make the car look moree aggressive. Instead, imo, it would be better to have stickier, not larger, tires than the Pirelli's, which I plan to put on, after the factory Pirelli's have worn out.

There's no comparison betweem the V8 and V6. Different brakes and suspension, different ride, different car. With the V6, all you get is the shell, not the substance. My advice, save up your money for a GT ... or buy a Honda.

lmm

the pony pkg for the V6 add 4wheel ABS, TCS and a stronger suspension package, 17in wheels.
Making it barely perceptible in respect to handling from a GT except, except of course for HP.
Get a new tune for the v6 and you will be breaking your tires in any gear just as easily as the GT.
All the naysayers on V6, hey GT'ers why didnt you wait for the GT500 if you really want performance.

pony_pirate

Thought of it, talked to dealers. Decided to sit out the first year, see how the pieces fall, prices settle down, the car actually works (or doesn't). Still the Pony package, imo, clutters up the front grill with useless chrome and misses the heart of the beast, the 4.6 l 24-valve aluminum small-block high-torque V8, which makes the car practically jump out of its skin. And, yup, the V6 lacks that glorious rumble. :shades:

ajpbf7

Carman, Could I please get the residual and INT Rate on an 06 Mustang GT for 24 &36 months. I would get 10 or 12K Per year. Hopefully Ford has come off that 8% INT. Rate. Thanks!

durability05

The Pony Pkg V6 has most of the goodies of the GT, except the Engine. My Pony Pkg V6 convertible cost the same as a deluxe GT, and I already have a Honda??

blackbeauty2

So happy that I found this site discussion. I am looking to lease a 2006 GT convertable for two years. Any advice? I am thinking 2 years because I don't want to be locked in long term if I end up not loving it. After two years I can get another one or buy something in my price range. I will have had two years of fun. That's my story; here's my question. Why is it so hard to find this car in a standard transmission. (IMO IT SHOULD NOT EVEN COME IN AN AUTOMATIC :mad: ). And who has experience driving it in bad weather, snow, rain, etc. Many thanks. Looking to hear from you.

ogmaster

I'm checking around here and there and I think I've narrowed my choice of cars down to a Mustan 06 and Mazda3 06. My question is that I can get on the xplan deal from Ford, which makes a V6 Mustang at around 18k. I wondered how that translated into a 24/36 mo lease deal? I'd appreciate any help.

lmm

it's a RWD car. It goes fine in snow and rain.

ajpbf7

24 &36 month lease with 10K or12K per yr. on Mustang GT. Residual and money factor please.

sasuke

Hey guys..I've been doing my car research for a while and I finally narrowed it down to the mustang.

For the price, the Premium V6 convertible seems to be the best bet. Unfortunately the Ford dealership near me seems to be jerking me around and won't give me a money factor or Residual. For a 36 month lease on the premium with interior upgrade, interior accent, leather and convertible soft boot, it comes out to 28,120 online. Are there any numbers I can work with to see if i'm getting a good deal or not?

I'm doing a 36 month lease with 12k

gzgtp

Its FWD that you want if you are worried about driving in snow.

sasuke

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?

gtgtcobra

Definitely get the new 2006 GT.

gzgtp

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:

sasuke

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

sasuke

o yea...another question..How is the Shaker 500 Watt system?

pony_pirate

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:

sasuke

So maybe it's not worth getting the shaker and putting custom speakers?

pony_pirate

The Shaker 500 comes standard with the GT Premium. I don't know about other models, tho.

durability05

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@Edmunds

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.

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CarMan@Edmunds

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.

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CarMan@Edmunds

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.

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pony_pirate

Why lease at 7.5-8% when you can buy at 5-6% (unless the interest is a business deduction)?

ekmajm

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!!!

ekmajm

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?

mindless

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@Edmunds

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.

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CarMan@Edmunds

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.

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CarMan@Edmunds

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.

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