Buy vs Lease: Ford F-150

We continue our series of Buy vs. Lease comparisons with the Ford F-150.

The decision to buy or lease depends on a number of factors, including how long the vehicle will be driven. We’ll look at three different scenarios at three years, six years and nine years to see how the situation changes with time.

Vehicle: Ford F-150

The F-150 is one of our top-selling trucks. Cartelligent clients love its extreme durability, towing capability, and strong resale value.

For our sample F-150, we’ve chosen a 2017 Ford F-150 4×4 Supercrew with leather bucket seats, a twin panel moonroof, voice navigation and the trailer tow package. MSRP for the vehicle as configured is $58,080.

Lease incentives and rates are accurate as of the time of writing, but may vary month to month. We’ve made the following assumptions:

Purchase: $2,500 down, 60 month loan at 3.9% interest. Vehicle is in very good condition at time of trade-in. 12,000 miles driven per year.

Lease: $2,500 down, 36 month lease. No excess mileage charges or wear and tear. 12,000 miles driven per year.

Scenario One: Three Years

This scenario assumes that the vehicle above is only driven for three years. In the purchase case, this involves trading it in at the end of three years and paying off the balance due. In the leasing case, the vehicle is returned at the end of the three-year period. In both cases; the maintenance and repairs cost about $500.00 each year.

In this case, leasing the car for three years saves around $8,700 compared to buying the car and selling it three years later. Leasing makes monthly cash flow easier, saving around $290/month in payments and saves the trouble of selling the vehicle and paying off the balance at the end of three years.

Scenario Two: Six Years

In this scenario, the buyer either buys a new car and sells it six years later or leases a new car for three years and then leases a second car for the next three years. The purchased vehicle will have payments for the first five years and then will be paid off in the final year. It will only be under warranty for the first four years. We’ve assumed that the first three years, maintenance and repairs will cost about $1,000/year. We’ve estimated that payments for the second lease will be 5% higher than the first with the same down payment and that the disposition fee will be waived when the first vehicle is turned in because the client is leasing another Ford.

The break-even point in this analysis occurs during Year 4, leasing two cars costs about $10,200 more than buying and holding one car for a six year period. Leasing offers the benefit of consistently driving a newer car—in this scenario the vehicle driven is never more than three years old as well as offering lower payments during the six-year period.

Scenario Three: Nine Years

In this final scenario, the buyer either buys a new car and sells it nine years later or leases three new cars in succession for three years each. As in the six-year scenario, the purchased vehicle will have payments for the first five years and then will be paid off for the remaining four years. It will be under warranty for the first three years and we’ve assumed that maintenance and repairs will be the same as above for the first six years and rise to $1,500/year for the final three years of ownership. All three leased vehicles will be under warranty during the nine years. Payments for the second and third leases will each be 5% higher than the previous with the same down payment. The disposition fee will be waived when the first two vehicles are turned in and another Ford is leased.

Buying a single vehicle saves about $30,400 as compared to three leases over the course of a nine-year period. For those who are willing to drive the same vehicle for nine years, this represents a significant savings over leasing.

Ford F-150: Lease or Buy?

The F-150 becomes more cost effective to buy than to lease after about three years for clients who don’t mind driving an older car. For those who would rather drive a consistently newer vehicle or prefer the consistent low payments, leasing remains a cost-effective choice. Ultimately the choice is up to the individual and involves a thorough analysis of their personal circumstances. (For more on the decision to lease, see The Beginner’s Guide to Leasing.)

Whether you’re considering a new Ford F-150 or any other vehicle, Cartelligent can help you get a great deal on exactly what you want. Call our team of car-buying experts at 888-427-4270 or get started today.