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Ford Explorer Lease Questions

CarMan@EdmundsCarMan@Edmunds Posts: 38,515
Hi everyone. Please use the following discussion to post any questions that you have about leasing a Ford Explorer. Thanks.

Car_man
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  • al330ial330i Posts: 8
    Can you please provide the money factor and residuals for a 2006 Ford Explorer XLT and Eddie Bauer models. I would lease for 36 months. Please provide residuals for 15k, 12k, and 10.5k miles using a Ford Red Carpet Lease. Thank you.
  • Hi al330i. Ford's lease program for the 2006 Explorer seems to vary depending upon what area of the country one is in. In most of the U.S., Ford Credit's base lease rate and residual value for a 36 month, 15,000 miles per year lease of a 2006 Explorer XLT 4WD are 4.0% and 49%, respectively. The numbers for an otherwise identical lease of a 2006 Explorer Eddie Bauer 4WD are 4.0% and 51%, respectively. Ford Credit's residual values for leases with 12,000 miles per year are 2% higher than its 15,000 miles per year residuals and its residuals for leases with 10,500 miles per year are 3% higher. When negotiating your lease on this truck, remember that Ford is currently providing $1,500 lease cash plus an additional $500 Ford Credit Bonus ($2,000 total) on the '06 Explorer right now. This money will help you to negotiate an attractive capitalized cost.

    Car_man
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  • Hey Car_Man, I have a question for you.
    I am looking at leasing a 2006 EB Explorer. I was wondering what the difference in residual is between the V6 and the V8. Any help in this area would be sufficient.
  • Here's what we've got to share so far:
    MSRP 40865
    Due at signing 1424.55
    Monthly 24mo 12k/yr $510
    includes CT sales & prop taxes
    pwr 3rd row
    roof
    dvd
    nav
    luxury
    reverse sensing
    safety canopy Can anyone comment? Thx, Rich
  • You're very welcome, al330i.

    Car_man
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  • Hi gonecruzan. All 2006 Ford Explorer Eddie Bauer models have the same residual values, regardless of engine type. The only difference in residuals is 2WD versus 4WD. For 36, 39, and 48 month leases the 4WD version's residual values are 1% higher than the 2WD version's

    Car_man
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  • Hello Rich. You never mentioned the selling price of the truck that you are interested in leasing. This is an important number for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing the price of the truck that you want to lease you don't know how good a price you are getting it for. The second reason is that one needs the selling price of a vehicle that they want to lease is that it is necessary to calculate its lease payment. I would be more than happy to give you my opinion of this deal if you let me know what this Explorer's selling price is.

    Car_man
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  • explorerx4explorerx4 Central CTPosts: 9,730
    hi rich,
    am also from ct and have looked into leasing from ford(actually did one time).
    i'll just give you my experience, which may be different from yours. property tax is a big deal. when i was quoted payments, the property tax was .0025 (a quarter of a percent) of the msrp per month.
    40k times .0025 = 100. 100 times 12 = $1200 per year. this is way more money than i would pay on a 40k vehicles in my town, and you have to pay that each year of the lease.
    the property tax basis is also calculated from the base msrp, in other words excluding any option packages. property tax usually decreases as the vehicle ages.
    the dealer would not negotiate this.
    when i leased from saab, they just billed me the amount on the property tax bill, and i was able to claim it.
    it might have just been the dealer i was negotiating with.
    also the state sales/use tax is calculated including the property tax portion.
    hope this helps.
  • Car_man,

    Please post the November MF and Residual percent from Ford Credit for the 2006 Explorer 4x4 (Eddie Bauer) for 3yr/15k miles. Also, what does FMC charge for additional miles?

    Thanks for being such a great resource!
  • Hey Car Man,

    The vehicle I am looking at is a 2006 EB Explorer V8. The MSRP is $35,970. The dealer is trying to tell me that because it is a lease he has to base it on the MSRP price. He came up with $5100 down @ $299/month based on 10k a yr. Does this seem like a good price to you?
  • It sounds like a horrible deal to me. Yesterday, I was given a quote for a 2006 EB Explorer 4X4 V8 with an MSRP of $38,135. Purchase price is $32800. $477/month for 3yr/15k miles. Due at delivery: 1st month payment, license, tax, security deposit. Located in Minnesota.
  • On a 2006 Exp. Limited V8 with Cashmere tri-coat paint, power moonroof, 3rd row manual seat, safety canopy air curtain system, ultimate convenience group, reverse sensing system, chrome step bars, chrome luggage rack cross rails, to lease for 36 months at 12k per year and putting $3,088 total down, dealer came back with $404.79 per month and thats with all taxes and fees built into payments. Is this a good deal? (initially told him i was buying and got him down from $39500 to $36000.
  • Does anyone know about this lease deal. It is on www.fordvehicles.com and is a national promotion. I have never leased and want to understand the total amount of cash that has to be put down. It appears to be around $2000. I just don't know about the taxes(Arizona) and if more than that $2000 is what they want down. Any help would be much appreciated.
  • Ok, I think I have made my deal. I have been quoted what seems to be a great deal. 2006 EB Explorer V8. Options include: 18" chrome wheels, Audiophile 6cd changer w/subwoofer, Trailer Tow Package, Power Moonroof, Reverse sensing system(for the wife), Roof Rails, 3rd row manual folding seat, and rear seat DVD Entertainment System. MSRP is $38,830. The deal he is giving me is $2500 down $329 a month for 24 months and a 10.5k allowance. Any feedback would be great.
  • explorerx4explorerx4 Central CTPosts: 9,730
    when leasing, try to put down as little cash as possible.
    look at it this way, 329 24 months is ith 2500 down, is pret much the same as 440 a month with zero down. i konw some fees are included with the 2500 down. i am just trying to make a point.
  • Hello all. My mother is looking at a 2006 EB 4X4 6 cyl. I believe the MSRP is around 32,600. Standard package plus power moonroof. Proposed deal is as follows. Getting employee $2,500 reduction plus I believe $500 for lease loyalty, and $1500 for some other current promotion. Dealer is eating $1,600 in payments and mileage overage on the current trade in (older explorer). (I believe 3 months rent) Rate quoted is 4.29%. $1,000 down for $418 a month with 40,000 miles over 36 month term. Any feedback would be appreciated. Thanks in advance.
  • Looking for feedback on this deal....2006 EB Explorer- Has EVERYTHING except navigation. Quoted $330/month (24 months)$2500 down.....looking for help with the buyout figure- dlr came up with $26,000...does this sound close? What are the residuals for 24 month leases? Sticker price $41,600.Any help would be appreciated. Thanks!
  • Hey Springs3,
    That sounds like a very good deal. I am about to get a 2006 EB Explorer 2500 down 329/month with a buyout figure of 23,700. The MSRP is 38,830.
  • I just sealed a deal a day ago....leased a Limited (13,500 miles/yr) with pretty much every option but nav/dvd...msrp was $38500...I traded in a '01 volvo cross country with 63,844 miles in good shape and got $14,000 for it....now, I apply for the z-plan as well....not having a good background on leasing, I was quoted $439/mo....I initially said that I didn't want to use my trade-in to finance but then suggested that if I used my trade in to pre-pay for the 3 years in full would that suffice. They said yes and somehow in retrospect I don't think it was a good deal for me....If I got screwed so be it...at least I can learn from the mistake and move on....if the deal was o.k for me then of course I can live with it...can someone please let me know? I live in the Detroit Metro Area.
  • kac3kac3 Posts: 1
    New to leasing so I have a question. Is the lease based off the MRSP or can I expect the dealer to base the lease on the actual sales price listed. I am looking at a 2006 EB 4.0L SOHC V6. MRSP is 34,825.00 and they are listing it under the Keep it simple plan for 29,549.00. Before the add went into the paper the dealer quoted me $249.00 a month for 24/10500 miles with 4500 down or 312/mo 36mo/36,000 miles same down. Should I ask him to re quote based on the sales price?
  • You're welcome, tiger93. Ford's lease program for this truck varies depending upon which one of its regions you are in. In most of the country, if you were to lease a 2006 Ford Explorer Eddie Bauer 4WD through Ford Credit for 36 months with 15,000 miles per year, its base lease rate and residual value should be 3.5% and 45%, respectively. Ford Credit charges an excess mileage charge of $0.15 for miles over lessees' limit at lease-end. If you think that you will go over the 15,000 mile limit that you mentioned, you can always lease with 18,000 miles per year. Ford Credit reduces its 15,000 miles per year residual values by 2% for leases with 18,000 miles per year.

    Car_man
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  • Hey gonecruzan. Either there is some sort of misunderstanding here, or the dealer that you are working with is lying to you. The selling prices of leased vehicles are negotiable, just as if you were paying cash for them. In fact, you should be able to lease this truck with a capitalized cost that is equivalent to the prices that are available through Ford's new "Keep It Simple Plan."

    Another problem that I see with this deal is the large down payment that you are considering making. I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your Explorer would be exactly the same, regardless of whether you had put $5,000 down, or had made absolutely no down payment at all.

    Car_man
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  • Hi tacoman1. Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

    You are right, with the advertised lease that you are referring to, it appears as though $2,000 would be due at lease signing. I am not sure how sales tax is calculated in your state, but in most areas consumers are able to roll sales tax into their vehicle's lease payment if they want to. If this is the case in your area as well, this truck's lease payment would be a little higher once sales tax is factored in, but the amount due at lease signing would remain the same.

    Car_man
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  • Hi kac3. The selling prices of leased vehicles absolutely can be negotiated. Ford's new incentive program actually makes this an easy time to lease a Ford product. Through its "Keep It Simple Plan," Ford is listing an attractive, non-negotiable, selling price on the windows of all of its vehicles. Make sure that the Keep it Simple Plan price is used as the capitalized cost for the Explorer that you are interested in leasing. You absolutely should ask the dealer that you are working with to quote you a new lease payment based upon this truck's new price. Also, try not to put so much money down when leasing. I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your Explorer would be exactly the same, regardless of whether you had put $4,500 down, or had made absolutely no down payment at all.

    Car_man
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  • Car Man -

    Perhaps you an clear this up for me.

    I'm under the impression that the leasing program is for a 2006 EB 6 cyl is
    $1600 down, $299/month x 24 mths with 1,000 miles/month.(24k miles).
    The only add'l expense is +/- $200 for MV and doc fees plus sales tax (6%)
    to be rolled in my monthly payment. 1st payment is also due.
    No bank fee, no security fee, no acquisition fee, no nothin'!

    Since this advertised price is stipulated, I see no reason to negotiate. The only unknown items are added options or upgrades to the base EB model which would be negotiated. In my case, I have a number of dealers looking for a Dark Cherry Metallic, EB, 6 cyl with NO added options for the above price. Some of the dealers attempted to add a $595 acquisition fee but quickly took it off the table when I stated it was a deal breaker.

    Since I have no interest in keeping the car at lease end, I have no interest in the residual.

    Tell me where I'm going wrong?

    Is this a decent deal?

    MSRP - $32800; KISS - 27500; credit score - 760

    TIA
    docgary
  • gonecruzen

    Did you get the car for the above cost?
    If you did, its the best deal i've ever seen!
    Was the 2500 all cap cost? Did you pay sec dep,
    acquisiton or bank fee?

    Forthe life of me, i cant find a deal better than:
    EB 6 cyl, no or little options (moon roof or radio upgrade)
    12k miles/month 24 months
    1600 cap cost, 200 aqc fee,
    and $325-345 monthly (inc tax)
  • Hello, what is the '06 EB Explorer lease interest percentage rate (money factor) and residual value for the current 24 month lease offer; with 12K and 15K miles a year?

    Thanks.
  • Docgary,

    That is what I paid, $2500 out of pocket and not a penny more. That included my first months lease payment also. So the totals are as follows: MSRP of $38,830. $2500 Out of pocket, not a penny more. $329.66/month for 24 months. However, My commute to work is only about a mile or so, so I went with the 10.5k/yr.
  • Did that include sales tax? When does the special 24 month Lease offer for the 2006 EB Explorer end?

    Thanks.
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