Topic: Ford Lease End No Trade Rule!

[Hammy]

Hi gang, my wife's F-150 lease is coming to an end mid-March.  It is an F-150 V6 FX4 Sport Ecoboost Lariat with a sunroof with only 50,000 kms, so pretty high spec with a buyout of only $39,000.  We like the truck but would consider getting into an SUV hybrid since we do not use any truck capabilities other than plowing through Newfoundland winters. There looks to be some solid equity in the truck so we went to a non-Ford dealership looking at SUVs but they said in the last 90 days of the lease Ford will not allow you to trade in your leased vehicle at any other dealership, they basically have a monopoly on lease returns. Seems like our only option might be to trade on an Explorer if we can get some equity out of it but of course the Ford dealer just wants us to return the truck so they can sell it for $55,000 and get us to buy a new vehicle, which will not happen. When we asked about our options they didn't mention anything about trading the truck it was just return and buy new. 

All that being said, has anyone had a Ford near lease end and traded their vehicle with equity into a new Ford vehicle, or is it just either buy out or return? There is no way we can just give the truck back with a $39,000 buy out.

Thanks everyone!

[Gurgie]

How hard would it be to sell it privately? Sell it & buy out the lease, perhaps? I know ArticSteve has leased with Ford, so hopefully, he chimes in for you. If not, consider sending him a PM.

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[JohnnyMac]

Just get an open loan from a bank and buy it out early and then you can trade it in where ever and when ever you want.

[rrocket]

Just get an open loan from a bank and buy it out early and then you can trade it in where ever and when ever you want.

Yea, a bridging loan.

 I'd want to establish my trade in value before doing this just to be sure no negative equity.

[ArticSteve]

How hard would it be to sell it privately? Sell it & buy out the lease, perhaps? I know ArticSteve has leased with Ford, so hopefully, he chimes in for you. If not, consider sending him a PM.

Sent from my SM-S901W using Tapatalk

Of the D3, Ford offers some pretty sweet lease deals, but there is a dark side to it all.  I don't have my lease agreement available this week, but I thought it was the 120 day rule.  Whether it's 120 or 90 days, it's pretty sneaky because Lessees tend not to read the fine print on the leases. 

My lease, "Red Carpet", some dumb name like that, allows for early buy out prior to 120 days of lease end or at lease end, but not in between.  Within that 120 days, I as the Lessee can not assign the vehicle to a third party for them to pay out the lease if I was looking to lease or buy another brand other than Ford.

So if you find yourself in this position you can go ahead and buyout the lease at lease end, pay the sales tax, and then shop the vehicle around to any vehicle retailer you want.

The problem with selling privately is that you would lose the 15% sales tax credit stored in the vehicle. 

[Hammy]

How hard would it be to sell it privately? Sell it & buy out the lease, perhaps? I know ArticSteve has leased with Ford, so hopefully, he chimes in for you. If not, consider sending him a PM.

Sent from my SM-S901W using Tapatalk

Of the D3, Ford offers some pretty sweet lease deals, but there is a dark side to it all.  I don't have my lease agreement available this week, but I thought it was the 120 day rule.  Whether it's 120 or 90 days, it's pretty sneaky because Lessees tend not to read the fine print on the leases. 

My lease, "Red Carpet", some dumb name like that, allows for early buy out prior to 120 days of lease end or at lease end, but not in between.  Within that 120 days, I as the Lessee can not assign the vehicle to a third party for them to pay out the lease if I was looking to lease or buy another brand other than Ford.

So if you find yourself in this position you can go ahead and buyout the lease at lease end, pay the sales tax, and then shop the vehicle around to any vehicle retailer you want.

The problem with selling privately is that you would lose the 15% sales tax credit stored in the vehicle.

Thanks Steve, yes this seems to be the position we are in, I wasn't looking forward to the private sale option for that very reason. Oh well I guess we will just buy it out at lease end and then shop around for a good trade. 

[Hammy]

Just get an open loan from a bank and buy it out early and then you can trade it in where ever and when ever you want.

Yea, a bridging loan.

 I'd want to establish my trade in value before doing this just to be sure no negative equity.

Yes we will definitely do that, thanks for the tip.

[ArticSteve]

Thanks Steve, yes this seems to be the position we are in, I wasn't looking forward to the private sale option for that very reason. Oh well I guess we will just buy it out at lease end and then shop around for a good trade. 

I would start shopping right now if you're looking for a hybrid type vehicle. Take the truck with you so whomever can appraise it and explain the situation.  You actually might be waiting awhile so getting stuck with the truck might be a blessing unless you already have multiple vehicles to use.  Say you want to finance it, roughly $45K x times 7.5%  divided by 12.  Less than $300 a month to carry.   

[Hammy]

Thanks Steve, yes this seems to be the position we are in, I wasn't looking forward to the private sale option for that very reason. Oh well I guess we will just buy it out at lease end and then shop around for a good trade. 

I would start shopping right now if you're looking for a hybrid type vehicle. Take the truck with you so whomever can appraise it and explain the situation.  You actually might be waiting awhile so getting stuck with the truck might be a blessing unless you already have multiple vehicles to use.  Say you want to finance it, roughly $45K x times 7.5%  divided by 12.  Less than $300 a month to carry.

Hi Steve, how do you come up with the $300 a month?  Thanks again for the advice.

[ktm525]

7.5% interest rate on $45k loan. Just under $300/month to carry interest only payments. No principal payment.

[ArticSteve]

Sorry Hammy, I did not see your post.  Answered by KTM.

My Royal Bank Heloc is currently 7.2%.   There is a lease buy out fee.  Thinking $300 minimum.

Good news is that all that HST stored in that F150, if you do buy it out, can be applied to the HST on the next lease.

I just noticed in my Acura lease contract that Honda Credit want $600 to facilitate a lease buyout after the 40 months.  The gouging is getting obnoxious.

[Hammy]

Sorry Hammy, I did not see your post.  Answered by KTM.

My Royal Bank Heloc is currently 7.2%.   There is a lease buy out fee.  Thinking $300 minimum.

Good news is that all that HST stored in that F150, if you do buy it out, can be applied to the HST on the next lease.

I just noticed in my Acura lease contract that Honda Credit want $600 to facilitate a lease buyout after the 40 months.  The gouging is getting obnoxious.

Thanks, I'll have to look into the interest only loan option. In the meanwhile Ford are offering us $46,000 in trade which basically not surprisingly covers the total buyout including tax but gives us $6,900 in tax savings towards a lease basically covering all the tax on any 3 year lease. It's nice to have almost $7,000 in usable equity at the end of a 3 year lease!

[ArticSteve]

Ya, it's nice for a change.  Takes the sting away.

[Blueprint]

How hard would it be to sell it privately? Sell it & buy out the lease, perhaps? I know ArticSteve has leased with Ford, so hopefully, he chimes in for you. If not, consider sending him a PM.

Sent from my SM-S901W using Tapatalk

Of the D3, Ford offers some pretty sweet lease deals, but there is a dark side to it all.  I don't have my lease agreement available this week, but I thought it was the 120 day rule.  Whether it's 120 or 90 days, it's pretty sneaky because Lessees tend not to read the fine print on the leases. 

My lease, "Red Carpet", some dumb name like that, allows for early buy out prior to 120 days of lease end or at lease end, but not in between.  Within that 120 days, I as the Lessee can not assign the vehicle to a third party for them to pay out the lease if I was looking to lease or buy another brand other than Ford.

So if you find yourself in this position you can go ahead and buyout the lease at lease end, pay the sales tax, and then shop the vehicle around to any vehicle retailer you want.

The problem with selling privately is that you would lose the 15% sales tax credit stored in the vehicle.

No you don't. I always get my taxes back - well, the 9.975% provincial tax anyway on private sales, by rolling it on the new car contract (ie sale between privates through the new car contract - the buyer "buys from the dealership" and not the seller. It's a legal tax loophole and I've never had a dealer say no to that.

[ArticSteve]

That's nothing new in Ontario.  It's called a convenience trade.  However, some private buyers do not want to participate and some dealers don't either. 

[Hammy]

That's nothing new in Ontario.  It's called a convenience trade.  However, some private buyers do not want to participate and some dealers don't either.

Same here, usually the dealer you are buying from will facilitate if you have a third party buyer for the vehicle you are selling.

[valuator]

That's nothing new in Ontario.  It's called a convenience trade.  However, some private buyers do not want to participate and some dealers don't either.

Same here, usually the dealer you are buying from will facilitate if you have a third party buyer for the vehicle you are selling.

It’s done here all the time. My current sales even offered it without me asking.