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Ford Explorer Lease Questions

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  • 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.
  • carfact,

    Yes that included sales tax. Imagine walking into the dealership with 2500 dollars in your pocket and nothing else. Leaving with a Brand new explorer. that 2500 included EVERYTHING! Including tax, title doc fees, first months payment, you name it.
  • Do you have the interest rate (money factor) and residual % used? Also, what was the breakdown of the final purchase price excluding tax? I'm in IL so tax is on the purchase price amount.
  • Well, you got an incredible deal!!!

    I just brought my Explorer home-

    24 MONTH LEASE - 1000 MILES/MONTH
    2006 EB 6 cyl. base model - MSRP $33250
    neg price $28600
    residual - $20615 (62%) 24k miles
    (factor=.00125)

    total out-of-pocket-OTD $1600
    total monthly payment-inc tax $345/mth

    $1600 includes cap cost, all MV fees, Doc fees

    No bank, no security deposit, no acquisition/deposition fee

    My deal is OK however yours is the best I've ever seen!

    Carman -any comments on my deal?
  • FORGOT...the $1600 included the 1st monthly payment of $345
  • vic74vic74 Posts: 3
    Hi all. This was my first lease. You guys know alot more about leases than I do, so I would appreciate your feedback. How did I do for my first time? I KNOW I did not get the best deal, but I do not feel like I was ripped off either (at least I HOPE I got a fair deal). What do you think about this?

    Mountainer Premier Loaded V8 (has everything except the DVD player and navigation)...24 months...$319/month...about a $600 bank fee....$400 sec deposit...plus DMV, etc.

    My total payment is $400/month (because I rolled some of the fees into the payment)...paid them $2300 down...I have the option to buy at lease end for $23k...10,500 miles per year (which I won't go over--I usually drive 6-8k miles per year).

    What should I do better next time?
  • jay34jay34 Posts: 1
    I just leased a Ford Explorer XLT 2006 fully loaded. No money down just $1000 for taxes out of pocket expense..$397 month...

    Any feedback??
  • If you dont mind me asking i am in the market for the same truck and i an hesatant for running any more credit inquires from the dealers. I know my credit score is a whopping 584. No real bad things just a lot of inquires. How did you do it, what was your score like if you don't mind me asking. did you do it through ford credit? :)
  • Is excise Tax included in the monthly payment??
    Are you supposed to pay excise when you don't really own the car your essentially "borrowing" it from them?
    Here's what I was quoted:

    2006 Ford Explorer EB, Full Loaded MSRP 39,325
    Navigation, Luxury pack, Moonroof, Power Pedals, Reverse Sensor, you name it,, just doesn't have the Rear DVD.
    $2700 down which includes First Monthly Payment, Acq. Fee, Down Payment, Doc Fee of a little over $130, Plates & Registration.
    $327/per month 24 Months @ 12,000 miles per year.

    However, there is sales tax & Excise tax (they say) which would bring my payment to about $369 per month.

    Any Thoughts? :sick:
  • Well, first I will say I am not sure of the money factor. my residual price was 62%. My purchase price included tax. Airborne, I will tell you this. Ford Motor Credit uses a ratio system. For evey 6 individuals Ford Motor Credit approves, they will accept 1 individual with horrendous credit. However, they will accept everyone with a co-signer. My credit isn't the greatest however I was approved on the spot. Right now, with Ford's losses, you should have no trouble leasing a Ford vehicle. Let me know how things go.
  • Carman
    I am looking to lease a Explorer. Preferrably an EB, possibly with Nav. I have poor credit, but good cash. I'm looking for a 3 year lease with a payment in the 400's. I would also like to buy some additional miles, at lease 15K a year. Am I in the ballpark ? Thanks.

    BKStew
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