I have a 2019 Ford Mustang Ecoboost with Performance Package. Its buyout price according to Ford is $27880.34.
My monthly payments are $600 and I figure with a purchased car I’d pay less monthly and if need be I can sell it (not expecting a profit at all).
Should I buy out the lease and try to trade the car in for a used Mustang? Thanks in advance.
There is way too much to unpack here. What’s the blue book value of your current Mustang?
$27525 is Fair Purchase Price according to KBB
So given the current environment, you can expect a good bit less than that from a dealer. Add in the tax liability of purchasing the car out and you’re likely lighting a couple thousand on fire to do this.
They will pay you below wholesale for your car and sell you a used one for retail price. It won’t be an experience you want to remember.
To mirror what others are saying, you’re likely going to lose a minimum of $5k trying to trade it which will net out to an effective $150/mo if you do a 3 year loan. And I say 3 because you shouldn’t do a 5 or 6 year on an already used Mustang (going off your other thread). All in all doesn’t seem like the greatest proposition.
What are you hoping to get your payment down to and over what term?
I’m hoping to get it to around $300, I guess for 3 years if anything beyond that isn’t good for a used car.
I can appreciate that you seem receptive to advice (a lot aren’t) so I’m happy to help, but I don’t think that’s going to be realistic. Let’s say you barely lost anything on trading this and got the other one for $20k, even if you went to 60 months that’s going to be roughly around $350/mo with current interest rates. And for most of that time you’d have a car out of warranty which could give you some pricey repairs.
Are you willing to put anything down?
And how many months left on your current lease?
If you aren’t rolling in any negative equity, a $300/mo payment is equivalent to a $10800 (after tax, but before interest) vehicle. Does a used Mustang go for that?
14 months left.
I guess at this point I should just list my car on SwapALease or Leasetrader
Yeah, most likely. If you keep it through the end of the term you’re going to pay $4,200 more than your intended $300/mo. You’d probably lose about that or more trading it in. On SAL you might get someone to take it with a smaller incentive if you have enough miles still available.
But that still doesn’t solve the problem of getting another Mustang. Doesn’t seem like it’s going to be in the range of what you want to pay.
What’s the year, model and mileage of this $300 Mustang? Is it based on a 72 month loan?
Never mind, make the loan $300-$400.
If you can manage through the next 14-months of your payments, you could buy out the car at the end. If you can get a good rate for a 72-month finance, you should then be able to get it for a $300/mo payment or thereabouts. Otherwise, like others have said, you’ll lose money dumping your 2019 and then you’ll end up with an older out of warranty Mustang for not even much less than what you dumped your 2019 for.
So in summary, wait and then buy out your car if you want.
Would it be better money wise if I just traded it in for a non-Performance Package (aka cheaper) used Mustang at the end of my lease?
You won’t be able to answer that question until the end of your lease to compare prices
As others mention, only you are the arbiter of this truth.
That said, here’s my perspective anyway: you trade in your car for a lowball value then you buy a cheaper ‘Stang nearer to retail. So you get a much less expensive vehicle but didn’t actually save that full value differential. And for all that, you give away the car you’ve owned since new, a car who’s accident free history, well-maintained record, you could verify. And instead get a car you don’t know as much about. Maybe you find out a year or two later that it was in a moderate accident and was fixed back up (happens all the time, even with an inspection).
So I’d suggest your best solution at this point is to stick with the car you got unless you really dislike it (and given that you still want another mustang, I’m assuming is not the case). The other option is to return it at lease end and lease something much cheaper to get you under $300/mo. But would you like that as much as your off-lease 3-yr old Mustang?
Admittedly this might get him to his desired payment, but man, at the end he will have made payments on that car for 10 years total. That’s insane on any car loan.
psychosity, realistically speaking here your options are to either suck it up and realize the car you want costs more than you’d ideally want to spend, or downsize heavily to maybe a smaller commuter car to get the payment you desire. They’re not the greatest options but it’s the harsh truth. You’ll need to make the call, none of us can do it for you.
How did you end up at $600/mo on a mustang lease? Sounds like you got taken advantaged of, or rolled in allot of negative equity
What time of the year typically offers the best offers for used Mustangs with Ford?
What do you guys think of buying used Mustangs from a dealer other than Ford (Toyota, CarMax, local non-major dealership, etc.)?
What are the current offers from Ford regarding used vehicles? I know they have a special offer if you lose your job you can return your vehicle. But what else? Any 0% financing?