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Ford Explorer Lease Questions

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  • exp3exp3 Posts: 2
    I was quoted a lease payment of $550 including tax on a 24 month lease for a 2011 explorer XLT. MSRP 35,785. sales price of 33,424 which includes 1500 rebate. Seems high to me based upon various lease calculation sites on the internet. Residual was quoted at 65% for 12,000 miles per year, with a lease rate of .75%. Salesman stated the lease included fees for acqusition of 595, DMV fees of 475, doc fee 45, state tax fee of 35. I agreed to pay only 500 up front. Does anyone think this is a good deal.
  • something is off...monthly lease payment based on cap cost of 33,424 should be appx $441 plus tax. Make sure they are using the adjusted cap cost and NOT the MSRP to calculate your depreciation fee and finance fee.

    also, what was the $1500 rebate for? Was that a national Ford rebate?
  • exp3exp3 Posts: 2
    You were right, the dealer is using the MSRP for the depreciation figure. This does not seem right. There is a 1500 rebate for leasing the vehicle if you have leased a car within 90 days of the transaction from ford or anyone else.. This is in place of the 1000 rebate if you purchase. Thanks for your input.
  • kyfdxkyfdx Posts: 28,057
    All residuals are based on a percentage of MSRP..

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • In ANY lease the highest MSRP (before package savings, etc.) is used to calculate the residual. I don't know what you mean by "depreciation fee" but the RESIDUAL is the percentage multiplied by MSRP.
  • The lease rates and residuals vary by region. The best way to find out what the rates and residuals are is to simply ask your local Ford dealers.

    I've leased 7 Fords since 2002. They are by far the best bang for your buck. It's easy to get $600 under invoice plus rebates on most models. Returning Red Carpet Lease customers get $1500 RCL Renewal rebate. It's hard to walk away from that deal.
  • Depreciation fee is part of the lease payment equation. The residual is a factor used to compute it. The depreciation fee portion of your payment simply pays the leasing company for the loss in value of its car, spread over the lease term (number of months), based on the miles you intend to drive and the time you intend to keep the car.

    Thus, Depreciation Fee = ( Net Cap Cost – Residual ) ÷ Term

    Often times, dealers will use MSRP in this equation vs. Net Cap Cost. That is not right.

    Your residual in dollars, however, is computed by taking the residual percentage that is being offered and multiplying by MSRP. THis is the ONLY time MSRP is used.
  • sddreamssddreams Posts: 15
    edited January 2011
    thanks for your reply. Do these numbers change every month? If I am taking delivery of my card in Feb, should I call my dealer at the start of Feb to get the current numbers, or could he give that to me now?

    Also, not sure of you saw my previous post #272..since you are very experienced with buying fords, what do you think of the deal I negotiated?

    Thanks
  • I get what you are saying, now. You are correct.

    Net Cap - Residual divided by term is the Depreciation portion of your lease payment.

    Conversely, the Rent Charge is Residual plus Net Cap multiplied by money factor.

    I have leased so many times I can do this in my sleep. I was confused on how you were phrasing your previous post.

    In regards to the rates changing, I believe these current rates end on April 4th.
  • I've never heard of Rapid Spec 402A package. If it's 302A and the dual panel moon roof you are looking at an Invoice price of around $42,700 including national advertising fee and fuel. MSRP would be $45,690.

    The $1000 rebate is only good for retail purchase. A sale price of $42,500 would be a pretty good deal at about $200 under invoice.
  • Okay I am new to all of the leasing stuff--but plan to lease in June. The last post stated the currnet rates end on April 4. After this do you think they will get any better? I want about a 460 payment total and would like an XLT to lease. Is this even possible?
  • Hello Sam. Ford Credit's current buy rate lease money factor and residual value for a 36 month lease of a 2011 Explorer Limited 4WD with 15,000 miles per year are 2.5% and 51%, respectively.

    The numbers for an otherwise identical 48 month lease are 5.0% and 44%, respectively.

    The residual values for leases with only 12,000 miles per year are 2% higher.

    I believe that the $500 cash incentive for ordering your Explorer is compatible with the lease program, but the $1,000 cash incentive is not.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • emd2emd2 Posts: 1
    I have owned 3 ford explorers. Currently I have a 2006 Eddie Bauer Explorer, fully loaded with 40k miles on it. I have 4 payments left. Unfortunately I have been out of work and need to see if I can get any money out of the car. I am trying to find out if I can sell this car which blue books at 17k trade in and use no more then 5k of it to lease a new one. I need as much cash as I can get out of the car. I need low payments preferably no more then $350 a month on a fully loaded explorer. I am clueless on leasing and not sure if i am dreaming. I live in San Diego. If anyone has any ideas how I can go about doing this I would appreciate any input and advice. I don't even know where to start and what information I should be armed with going into a dealer. How negotiable are lease prices and how do I go about getting the lowest payment. I would keep the car for the term of the lease and would not buy it at the end of the lease term.
  • Thank you for getting back to me and it is great timing. I just spoke to my dealer and he went over the lease figures with me indicating that the tier 1 apr was 2.75% and not 2.5%. Can you verify if this is in fact true or could it be true if purchasing in NJ? How do I keep them honest on this and prove to them that it is 2.5%?

    I would greatly appreciate if you could get back to me in the next day or so as my pre-order is supposed to come in this weekend.

    Thank you so much for your assistance.
  • Just Checking if lease rates are correct and good value. Quoted $472 month with no money down (except first months payment and taxes) for 36 months. Seems there is a $1000 Conquest cash. Is this comparable to existing leases.It seems the car is almost impossible to get from any dealer and they are reluctant to spec the way i want it.
  • I was looking at a XLT with 202A package, navigation and power liftgate. nothing more. I was open to colors but prefered dark gray or dark red.

    Area is NYC Metro Area (Queens/Long Island). Sorry for omitting that!
  • With an MSRP of 35,500 and I give them 1500. I live in upstate NY. I'm thinking a 10,500 24 month lease. I know the negotiated price will be lower than MSRP The 1500. can be applied any way they like, but I don't want to put in any more. I would much appreciate a ballpark monthly cost number in mind when I speak to a dealer. I currently have a GMC Acadia coming off lease i 2 months. Thanks for any help.
  • urbanplanurbanplan Posts: 4
    edited February 2011
    Actually got a little more information. $430 a month on MSRP of 38,360. No money down and taxes up front. . Im thinking this is a pretty good deal.
  • Question: do leases have an X Plan like purchasing?
    Also: what is an expected lease price for a 302a pkg w/ $42300 price tag (excluding taxes and fees) / (12000 miles, 36 months), including initial payment? I live in CT if that matters.
  • Hi,

    I live in NYC and I'd like to lease the 2011 Explorer Limited edition. I'd like to put down no more than $1500. What do you think is a good lease rate? Assume that the car has a MSRP of about 44k. I've been quoted $570/mn with 1300 down and I think that is very high.

    Thanks in advance Car man!
  • You're welcome sddreams. I've seen a 2.5% lease rate for the 2011 Explorer, not 2.75%. That's not a big difference, but you still should see if you can get the dealer to use the 2.5% rate to calculate your payment.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Hi jju7777. If you qualify for Ford's X-Plan, you should still be able to lease.

    I would be happy to work up a payment on the truck that you're considering for you. However in order for me to do so I need you to provide me with its full MSRP and selling price (I need both). Let me know and I'll crunch some numbers.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Hi shaib52. Let's assume that you were given a $2,000 dealer discount on this truck.

    According to my calculations, if you were to lease a 2011 Explorer Limited AWD that has an MSRP of $44,000 and a selling price of $42,000 through Ford Credit right now for 36 months with 12,000 miles per year, your zero down, pre-tax monthly payment would be around $587.

    That's a lot of money for an Explorer, but it is what it is. That's probably what you will have to pay if you want to lease one right now.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Car man,

    Ok, sure. MSRP is $44200 / sale price was $42700 (excluding taxes, fees). Taxes and fees are $1400.

    Options on car:
    2 panel moon roof
    2nd row buckets

    Thank you for your help. Really appreciated.
    jju
  • jju7777jju7777 Posts: 4
    edited February 2011
    Car Man,
    With taxes and fees included at $44200, what's a reasonable lease price for 36 mo, 12K/ yr with $1500 down? Car dealer is in southern CT.
    Are Explorers overpriced in your opinion?
    Thanks for your insight.
    Jju7777
  • My 2011 explorer finally came in and I picked it up yesterday! Great car, but getting the deal done was not so pleasant. The main issue was that when I pre-ordered the vehicle, Ford was offering a $500 pre-order discount, but because I was leasing, the dealer could no longer offer it.

    Also, I NEVER knew that the dealer can mark-up the APR for a lease. Even though I had perfect credit (750+), they marked up the 2.5% APR to 4%! After a lot of haggling and insisting that I should get the best rate FMC is offering, they said they are permitted ot mark it up and that was that!

    Has anyone else had this experience?

    Finally, I got a 52% residual (15K, 36 month, Limited 4wd, NJ) vs 51% which is what I believe CarMan indicated was the rate.

    Thank you
  • Sddreams,
    Congrats on the new Explorer. Mine is a few weeks away still. Your info is helpful. I'm in CT and awaiting a similar vehicle. Got the 2nd row buckets and dbl moon roof. All in including taxes and fees the car is $44200. How much should the 3 yr lease be with 12K miles and $1500 down? The dealership is saying I need $3000 up front to get lease to $595. Is that too much?
  • Thanks jju7777...car is great!

    I would refer you to the site, leaseguide.com, to better understand the math behind how a lease amount is calculated. This is a free site and will help you understand very clearly how to plug in your figures and determine what your number should be.

    I only had to put down my first month's payment, although I did put down more. There is a $595 acq fee and probably a $399 doc fee and perhaps a $299 vin etching fee. All of these fees plus title/tags/registration, i paid upfront, but you shouldn't have too...it may be dependent on your credit..not sure.

    good luck
  • djhalptertdjhalptert Posts: 115
    $595 with $3K down!!! Are you joking? I leased an XLT, loaded, MSRP was $41K and I had only $2000 trade equity on my old lease and got a payment of $390.81. That $595 can't be right. Even if I wouldn't have had $2000 trade-in my payment would've only been about $475 MAX and they are telling you to put down $3000 to get to $595????
This discussion has been closed.