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Ford Explorer Lease Questions

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  • 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
  • My wife and I are elderly, and apparently too gullible. We have been paying $530 a month for a 2003 Explorer we purchased, not leased, for 2 years, and have 5 to go. Boy, are we STUPID!!! We have had unexpected health problems and costs, and need to get out from under this payment, which is totaly upside down.
    What are our options???
  • kyfdxkyfdx Posts: 31,079
    Since your problem is not exactly Explorer specific, you might get more responses by posting here:

    Owe more than it's worth... I'm upside down and I can't get up!

    regards,
    kyfdx
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  • Hi docgary. Ford Credit does charge an acquisition fee of $595 on every vehicle that it leases. As you suspected though, I believe that its current advertised lease on the 2006 Explorer assumes that this charge is rolled into the capitalized cost. This lease offer sounds like a very good deal to me, especially since the selling price is based upon the new "Keep It Simple" plan price.

    Car_man
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  • Hello carfact. I believe that Ford's lease program for this truck varies depending upon what part of the country one is in. I will provide you with information on what I believe is the more common program. If you were to lease a 2006 Ford Explorer Eddie Bauer 4WD through Ford Credit right now for 24 months with 15,000 miles per year, its base lease rate and residual value should be 2.75% and 60%, respectively. The lease rate for an otherwise identical lease with only 12,000 miles per year would be the same, but the residual value would be 2% higher.

    Car_man
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  • Hey docgary. It looks to me as though you got your Explorer for slightly over invoice, which is in line with the "Keep It Simple" plan price structure. If so, you got a good deal. Enjoy your new truck!

    Car_man
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  • Hi vic74. The best way for me to tell if you got a good deal on your new truck is for me to take a look at its full MSRP and selling price, in relation to your lease payment. If you let me know what these numbers are, I will tell you what I think. Please post them over in the following discussion though : "Mercury Mountaineer: Lease Questions".

    Since you aren't all that familiar with how leasing works, you definitely should check out the following informative articles that are available here at Edmunds.com: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

    Car_man
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  • Congratulations on your new truck, jay34. You never mentioned the selling price or MSRP of the car that you are interested in leasing. These are important numbers 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 this car's selling price in relation to its MSRP you don't know how much of a discount you are getting on it. The second reason is that one needs the selling price and MSRP, including the destination charge, of a vehicle to calculate its lease payment. I would be more than happy to give you my opinion on this deal if you let me know what these numbers are. I also need to know how long this lease is and how many miles per year you are allowed to drive.

    Car_man
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  • Hi shenaniganz. I suspect that you have to pay both sales tax and excise tax on your leased truck, but tax laws vary from state to state. If you let me know what state you are in, I may be able to provide you with some helpful links about how tax is calculated in your area. Dealers usually don't lie to consumers about tax though. They get in a lot of trouble for doing so.

    The pre-tax lease payment that you were quoted for this truck looks reasonable to me, but I cannot give you a full assessment of your deal without knowing what this truck's selling price is. If its selling price is based upon Ford's "Keep It Simple" plan price structure, which is should be, then you are in good shape.

    Car_man
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  • Hi BKStew. If your credit was in good shape, you should easily be able to lease the truck that you are interested in for less than $400 a month. It is difficult for me to tell how bad your credit is or how much impact it will have upon your truck's lease payment though. The fact that you have a lot of cash won't really help you with leasing, because it is never a good idea to make large down payments on leased vehicles. 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 the Explorer that you are interested in would be exactly the same, regardless of whether you had put several thousand dollars down, or had made absolutely no down payment at all.

    Car_man
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  • I am looking at a lease of an Explorer Limited with all options including navigation. It is a 3 year lease and 20,000 miles per year. The MSRP is 38350. I was quoted a purchase price of 32535.55 pls tax and title. I then asked for a lease price with 0 down and was quoted $635. What is your opinion on this deal? I am in the Dallas market.
  • nwulfnwulf Posts: 3
    I just visited my local Ford dealership and the new car manager told me there was no negotiations on buy out of residules on my 04 Explorer. He sez the residual is protected by an insurance policy that will pay part of the sale loss (less than the stated residual) only if the vehicle goes to the auction. 04 Explorer with 28K for a little over $17K +tax. Also no extensions on leases???
    News to me how about you? We negotiated about$24K at lease and my 1pay lease + buyout would be about $28K. Dealer sez the retail price 1s about $19K. HELP ME WITH DETAILS BECAUSE MY LEASE ENDS 12-30-05. I feel stuck. Do I need to see another dealer to negotiate. Dealer also sez they would have to pay the $17 K (residual) the same as I would to get the vehicle.
  • nwulfnwulf Posts: 3
    We are at the end of our lease and are considering buying out. Negotiated price at start of lease was $24k,2 YEAR 15k lease was $11K and now the non negotiable buy out is $17K. THAT'S $28K for a $24K negotiation. My dealer new car manager sez "No extensions and NO negotiating". Surprise to me. I've leased for many years and was considering purchase on this one and ending my era (error) of lease.Dealer also sez Ford Credit purchases an insurance policy that protects them partially from sale loses at the auction therefore they don't have to negotiate.Dealer also sez they would have to pay the $17K buy out price to get this vehicle. Sooooo I feel HAD to some degree!!!!! Can you advise me and others??????Thanks in advance.
  • jcat707jcat707 Posts: 168
    Are the December lease figures similar? I was at the Ford dealership today and they said that the residual was 50% for 36 months/12k per year, 48% for 36 months/15k and the rate was 3.25%. The truck is an XLT 2WD if that makes any difference.
  • nwulfnwulf Posts: 3
    If I still have the story correct, 24 month lease, 15K miles per year=42% of your best negotiated price (would include deductions for rebates, customer loyality-if there is any or any coupons you might have) AND you would probably be subjected to the "SMART BUY PRICE". The buy out (residual) is based on 58% of the sticker (MSRP). All this from a Minnesotan who just quit leasing for now. New cars are fun but the prices are out of control. I've leased for 10 years but am out for now.....
  • Hi nwulf. You definitely should not involve your dealer in your decision about what to do with your truck at lease-end if at all possible. This matter is completely between you and the bank that you are leasing your Explorer through, which is most likely Ford Credit. Dealers certainly don't want you to buy your leased vehicle or to extend your lease. They don't make any money off of you doing either of these things, but they do make money if you purchase or lease another vehicle from them. Place a call directly to Ford Credit and see if they will be willing to negotiate your truck's lease-end purchase price. There is a chance that they will. Even if they won't I suspect that they will at least let you extend your current deal for another couple of months.

    Car_man
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  • Hi jcat707. Yes, I believe that Ford's lease rate and residual value for the 2006 Explorer are exactly the same in December as they were in November.

    Car_man
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  • Does anyone know the January residual and money factor for a 2006 eddie bauer?
  • Hi cwakefield. I've seen Ford's January lease program for the 2006 Ford Explorer Eddie Bauer and I would be happy to give you an idea of what it is like. I am going to have to make some assumptions though because you never told me if you want 2WD or 4WD, how long you want to lease for, or how many miles per year you need to be able to drive. For now, I will assume that you want to lease a 4WD for 36 months with 15,000 miles per year. Using these assumptions, this truck's base lease rate and residual value should be 3.75% and 49%, respectively. When negotiating the selling price of this truck, make sure to take the $3,000 total in cash incentives that is available on leases of it in most areas right now into account.

    Car_man
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  • jcat707jcat707 Posts: 168
    I was just curious, is there a difference in lease rates and residual values between 2WD and 4WD models? I don't want the actual values, I was just wondering in general.
  • Thanks for the info. I am interested in an EB 2WD for 39 months 15,000 miles. I was aware of the $2000 rebate that shows up in consumer reports but I did not know about an additional $1000. We are located in Georgia. Where does this $1000 come from? What are the residual and money factor for January for the above and for a 36 month 15,000. I'm not in a rush... would it be better to wait and buy this car in February or March when there may be better deals? I always heard the best time to buy a car is in March when many companies have their year end.

    Thanks for your info!!!!
    cwakefield
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