Common Misconceptions on leasing an F-150

Five Common Misconceptions About Leasing a Ford F-150

1. Leasing is a bad deal - Not true. Unless you pay cash for your car or keep it for several years after it's been paid off, you won't save any money by buying. If you trade-in your vehicle before it's paid off, you most likely won't make enough on the deal to break even. If you spend some time up front looking for a lease deal, you can actually come out ahead by leasing.
   
   For example, let's say you lease a Ford F-150 Lariat for an estimated monthly payment of $371 per month with $5,267 due at signing. Your total at the end of a three-year lease is $18,623. Now, let's say you purchase a Ford F150 Lariat for $42,510. You put 10% down ($4251) and your estimated monthly payment is $654 on a five-year loan. At the end of three years, you decide to trade-in your pick-up for a new model. You'll still have $14,715 remaining on your loan.
   
   Let's say the new vehicle costs you $52,900 and you get $17,000 (40% retail) for your trade-in. That brings the final purchase price down to $35,900 plus the remaining $14,715 on your previous loan, bringing the total back up to $50,615. As you can see it's much more financially beneficial to lease rather than purchase a new vehicle every three years.
2. It's impossible to negotiate a good lease - Not true. Almost every part of a lease is negotiable, but do your homework first to understand the lingo.
   Capitalized cost. This is the vehicle price. You should negotiate this number just as hard as you would if you were purchasing the vehicle.
   Money factor. The lower this number the better. Multiply it by 2,400 to get an estimated interest rate.
   Residual value. This is the value of your vehicle at the end of the lease. Make sure this number is realistic so you don't run into any problems at the end of your lease.
3. Only businesses get a tax break - Not true. Individuals can get tax breaks too. In most states, you only pay sales tax on the monthly payments, not on the full price of the vehicle.
4. You'll have to pay hefty fees at the end of the lease. Not true - You can negotiate a higher mileage limit on your lease. And if you do go over the 10,000 - 15,000 yearly lease allotment, the extra 20 - 25 cents per mile penalty is comparable to the lower trade-in value on a purchased vehicle.
5. You're stuck in your lease and can't get out early. Not true - There are several websites such as LeaseTrader.com and SwapLease.com that match people who want out of a lease to people who want a short-term lease.