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Ford Expedition Lease Questions

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  • Car Man - long time reader, first time poster - I could use some specific help now, beyond all of the general help I've had in the past

    I've been back in forth on the '08 Tahoe and the '08 Expedition. The Expedition proposal that I am closest to right now is as such:

    The dealer's MSRP quote on the '08 Limited built out the way I want matches the Edmunds built out MSRP of $47,910. The dealer tells me that he is selling at invoice to me, which he quotes as $44,200. Even if I add in the $300 for the chrome grill they are putting into the Limited (you can't order it as an option from the factory and we don't like the body color grill) he is still a little north of the Edmunds invoice quote. So be it for now:

    Can you offer an opinion on the whole package:
    MSRP $47,910 (or $48,210 if you want to add the grill here)
    Invoice quote of $44,200
    12m miles/$634 a month/and a $2,500 check for whatever else (inceptions, cap cost, I don't think I care how they use it do I)

    The uncomfortable part is that he is telling me that the program can change by the time the truck gets delivered - say mid to late October. How does anyone sign on for that? I think I know my payments but then they change when I actually get it? He says the current program is a $500 rebate, 3.25%, and a 48% residual.

    I'll take anyone's advice - thumbs up or down? Many thanks.

    For what it's worth this is being done in Central/Northern New Jersey.
  • Hello Car Man
    To answer your questions in addition to every number the dealer gave me that is figured in the prices below. So here we go, thanks again

    2008 Ford Expedition 4x4 EL (600A order code)
    everything below is in the purchase price of $46,673.08 from the dealer's
    "VEHICLE ORDER CONFIRMATION" SHEET
    Skid Plate
    Daytime running lights
    Power moonroof
    rubber floor mats
    rearview camera
    trailer tow
    navigation
    chrome rack with cross bars
    power lift gate
    rear seat entertainment
    8 U.S. Gal gas charge $24.08
    FDAF assessment $578
    Dest and Deliver $900
    all for $46,173.08 plus $500 his commission = 46,673.08
    and an additional 25 gallons of gas (full tank on delivery is in this price)

    now he gave me a copy of the "Deal Worksheet" with the following numbers from his
    Lease Work sheet from Ford's dealer website

    FIRST COLUMN
    Lease Source - RCL
    Price -$46,740.00 ($66.92 more then his quote price)
    trade in amt - $0.00
    trade in payoff - $0.00
    cash down - $0.00 (no check mark in the box next to this number)
    Rebates -$500.00 (no check mark in the box next to this number)
    Lease Rate - 1
    Term -24
    payment per yr - 12
    next payment due
    MSRP - $50,420.00
    other - $0.00

    SECOND COLUMN
    Insurance -none
    credti life -none 0.00 (a check mark in check box)
    credit A/H -none 0.00 (a check mark in check box)
    ext. srv -none 395.00 (Red Carpet Lease wear care) (check mark in check box)
    ext. srv plan code- blank
    garage location
    Mileage Allowed -15,000 (.20 mile over 30,000 at the end of 24 months)
    mileage purchase - 0
    mileage cost -$0.15

    THIRD COLUMN
    residual % 56 - $28,235.20
    sales tax% 8.375 - $1,844.58 (check mark in check box)
    property tax - 0.00 (no check mark in box)
    luxyrt tax - 0.00 (no check mark in box)
    office fees - $57.50 (no check box available)
    title/reg - $45.00 (check mark in check box)
    license/lien - 0.00
    soft adds - 0.00
    ACQ Fee - $595.00 (what is this) (check mark in check box)
    security deposit - $0.00

    TWO BOXES DOWN AT THE BOTTOM SAID
    amount due at signing ------- monthly payment
    $1,40.09 ------- $903.09

    I would also get any additional rebates at the time the car
    was delivered if anything better was in affect at the time of delivery.
    which he was told by his rep that these cars are "FREE WHEELING", built in 4 weeks and up to 2 weeks to deliver. Not unless if ordering the power running boards the built time could be doubled.

    Also if he was to order this car he would need a $500 deposit
    that would be applied to the $1,403.09 so all I need at pick up is $903.09

    he also told me if I order this in silver and were to change my mind he would give the $500 deposit back, if I ordered any other color I would lose the deposit. so happens I like the silver car anyway.

    So is this a deal worth going for?
    Is this dealership giving me more info that usual?
    Is Ford strict when they evaluate the car at the end of the lease? The dealer said Ford wants you back so they are somewhat lenient. He wasn't pushing the Red lease care package. But Ieft it in for now.
    (I am planning on buying car seat covers with 4 car seats in the car)
    I noticed he used the Residual valvue against the MSRP price is the correct?
    Which number did he get the tax of $1,844.58 from?
    ACQ Fee do you know what that is for?
    Also I found strange is that he told me in writing .20 cents per mile over 30K at the end of 24 months and another dealer told me
    .25 cents a mile over $30,000 at the end of the 24 months. Who is correct?

    This is every piece of info that I have from the dealer, he gave me all print outs off the computer from Ford's dealership website.

    Hope I gave you all the info you need to determine if the $903 is good or not?
    Is this dealer on the level with everything he supplied?

    what would the payment be if I was to put 1,000 or 2,000 down?

    Thanks again
    Anthony
    bx, ny
  • CarMan,

    Aside from the residual differences between 2WD and 4WD models, does FMC have any other adjustments to the residual percentage based on vehicle features? My main question is if there are any residual deductions on XLT models with the front split-bench seat and/or no 3rd row seat? Also, what's residual bump for mileage lower than 10k vs 12k/yr? Is there an 8k option?

    Thanks!
  • Hi Car man, I'm looking to lease an Expedition in the Northeast. I have in mind an 4x4 XLT with a MSRP of $39,875.00. Hypothetically speaking if I can get the price to 34,500 including discounts, incentives and negotiations and lease for 39 months(& 39000miles) what can I expect the figures to be ? I'm coming up with a monthly payment of $463 (without doc fees and tags, etc) using a residual of 47%, money factor of .00104, 7% sales tax and a down payment of $1000. How far off am I with my figures ?

    Thank you
  • Hey Carman, I'm back. My lease of my '06 EB Explorer is up in Nov. and I am ready to move on. I am looking to go a little bigger as I am 6'2 and the explorer is not as big as I would like it to be. Soooo, that being said. I am looking at 2008 Expedition Limited 4x4 with 2 options only. Navigation and rear bucket seating. The total MSRP is $44.670 with a Dealer invoice of $41,106. I am looking to lease this with 10k miles a year allowance. Now my question is this. On my explorer, I only have 14k when my allowance was 21k. Can I use any of that towards the deal? Thank you for your time carman. This forum is great!
  • dylcondylcon Posts: 8
    Hi car man, I could use a little help here. I'm looking at leasing a 2008 Limited 4x2 and narowed it to 2:

    I'm looking at 36 months, with 10K miles per year...zero down.

    -MSRP $46,265. with final (x plan) selling price at $40,681.

    -2nd choice vehicle....same terms... MSRP $43,775 with selling price of $38,416.

    Would I save much by going out to 39 months?

    Thanks.
  • antnecantnec Posts: 3
    Car man

    when will you be able to answer post #83

    thanks
    anthony
  • Hi Anthony. The truck that you described probably has a spread of around $4,700 to $4,800 between its full MSRP and its dealer invoice price. In addition to this spread, Ford is currently providing $1,000 bonus cash and $500 lease cash ($1,500 total) on it. This gives you a total of over $6,000 to play with in your negotiations. If I was in the market for this truck, I personally would want a larger discount than the $3,600 that you were quoted. I would shoot for a discount of at least $5,000.

    The lease rate that you were quoted for this truck looks about right to me. Vehicles' residual values are always calculated as a percentage of their full MSRPs. The acquisition fee is OK as well. Ford Credit charges a $595 acquisition fee on every vehicle that it leases.

    I have never personally leased a vehicle through Ford Credit, but I have never seen anyone complain about them being unusually strict when evaluating vehicles for excess wear and teat at lease-end. I have found that most manufacturers' captive finance companies are very reasonable when evaluating the lease-end condition of vehicles. If I was leasing this truck, I personally would pass on any additional excess wear and tear coverage.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • does anyone know what the going lease rate for an 08 el limited loaded would be for 3 years 36000 miles with 4000 thousand up front .....
  • Hey rob052067. The options that a vehicle is equipped with have not impact upon Ford Credit's residual values. The only things that have affect the residual value are trim level and whether the truck that you want is 2WD or 4WD.

    I believe that 10,500 miles per year is Ford Credit's lowest mileage option.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Hi macsnjets. Let's work up a lease payment on this truck and see what we come up with. According to my calculations, if you were to lease a 2008 Ford Expedition XLT 4WD that has an MSRP of $39,875 and a selling price of $34,500 through Ford Credit right now for 39 months with 12,000 miles per year, your zero down, pre-tax monthly payment would be around $465. As you can see, this is pretty close to the payment that you came up with yourself.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • I'm glad that you enjoy this forum so much, gonecruzan. Unfortunately, chances are that you will not be able to take advantage of the fact that you are way under your Explorer's mileage limit. In order to do so, it much be worth significantly more on the open market than your purchase option for it. This is usually not the case, especially with domestic vehicles. If it was, you could trade it in or purchase it and sell it privately.

    In order to determine whether you should purchase your vehicle at the end of your lease, you need to compare its purchase price to its value on the open market at this time. Even though it states your truck's purchase option price on your lease contract, you should place a call to the bank that you are leasing it through just to make sure that you have the correct figure. When you do so, it never hurts to try to haggle with them. Some banks will negotiate the lease-end purchase prices of vehicles. If your initial contact at your bank is not willing to lower your vehicle's purchase price, you may have better luck if you work your way up the ladder to a manager. There is a good chance that they will not lower your vehicle's price, more often than not they will not, but you don't have anything to lose by asking.

    As I said earlier, once you know exactly how much money it is going to cost you to buy your leased vehicle you need to compare it to its current value on the open market. You can find out approximately what your vehicle is worth by looking up its Edmunds.com True Market Value in the Used Vehicle Pricing section of this site. You also may want to stop by the following discussion: "Real-World Trade-In Values".

    If you believe that your Explorer is worth significantly more than it would cost you to purchase it, then you might want to consider trying to profit from its low mileage. If not, then just walk away at the end of your lease.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Hi dylcon. Let's see just how much going with a 39 month lease instead of 36 months will lower this truck's monthly payment. According to my calculations, if you were to lease a 2008 Ford Expedition Limited 2WD that has an MSRP of $46,265 and a selling price of $40,681 through Ford Credit right now for 36 months with 10,500 miles per year, your zero down, pre-tax monthly payment would be around $561. The payment for an otherwise identical 39 month lease would be around $553. So it looks like you're looking at a savings of only $8 per month.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • hoss5hoss5 Posts: 1
    I'm interested in an Expedition EL. I am considering lease vs. purchase. I've looked at a 2007 Expedition EL demonstrator. It has 10,500 miles. The invoice is $43,500 or thereabouts. The purchase price is $41,500 or thereabouts. We have a 2004 Excursion (clean) with 87,000 miles. The dealer only wants to allow me $10,500 on a trade-in. I understand the 66 months, 0% financing on a purchase, however, don't fully understand the intricacies of a Red Carpet Lease as to the residual and the like. Please advise.
  • wvgasguywvgasguy Posts: 1,405
    If you're already trading an 04 then you probably won't get the full advantage of a 0% financing on the 07. Those deals really only save you the full amount when you indeed keep the vehicle for the life of the loan. Typically if you trade every 2 or 3 years take the rebates,

    I found the leases complicated but had 2 dealers explain it because it seemed too good to be true. Was better off with an 08 rather than an 07. The fact that this is an 07 with miles may hurt you in trying to lease it.

    The advantage I had with the lease is that you still get the rebates but the lease financing was only 0.5% on my loan. With a 2 year residual of 52%, that means I'm basically financing half of the vehicle close to 0% anyway. Comparing the lease to a loan from my Credit union, I actually can lease and then buy a lot cheaper than just buying.

    0% is a good thing but don't try to fool yourself if you know you're going to trade in a few years. In two years your 07 will be 3 years old and worth about 45% of MSRP.

    If you don't believe that how about the $10.5 they are offering you now?

    Also with 87K miles on an 04, I'm guessing you drive a lot and that could be pretty expensive on a lease. I have the max at 19,500 miles per year and anything over that is 20 cents a mile (unless I buy it)
  • Hi, I am in the process of trading in my 2006 Eddie Bauer Explorer that is coming off lease and looking to take advantage of the program they have in place to keep you in one for 2008. My question is the vehicle I am looking at has an MSRP of $33,940. my question is can you further negotiate the price because I am already getting $2,500 + $1,000 as listed on ford's website. I believe I also get an additonal $1,000 loyalty cash back if i get back into another explorer. That means I am already getting $4500 off the MSRP. I know I am supposed to negotiate from the Invoice - holdback up...but are they going to give me a song and dance that i am already getting so much off? But so, far, the rebates are only from the manufacturer, not the dealer so is there room to move?

    The monthly lease payment is looking to be $430 for me. I am doing 39mths at 18k per year with first month + tag fees for a total of $520 out the door. I am in Phila, PA. I would really like to see if I can get more off from their end because so far, the dealer hasn't discoutned anythign or is tht considered when the manufacturer builds in those rebates. If i can negotiate, what is reasonable? Thanks
  • wvgasguywvgasguy Posts: 1,405
    Rebates are not dealer discounts. You should be able to get both. I actually got my Expedition lease with XPlan pricing and rebates. Very satisfied.
  • The guy told me that ford, when they build lease lease deals, they build them at invoice price and thats it...as if there is no room to negotiate beyond the factory.
  • wvgasguywvgasguy Posts: 1,405
    If you got it at invoice I;m not sure I'd haggle the dealer too much for anymore anyway. However, as I said I got mine at x-plan less $1500 rebates as my capital costs
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