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Ford Explorer Lease Questions

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Comments

  • Hi rfog. I personally would never purchase pre-paid maintenance on a leased vehicle, unless it provided some sort of boost in my vehicle's residual value like some luxury manufacturers offer. All you really will have to do in terms of maintenance for your Explorer is change the oil every couple thousand miles and rotate the tires. That's it. Performing any additional maintenance on a leased vehicle is a waste of money. You probably should skip the contract.

    Car_man
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  • Hi explrltd. I see that you are getting a $2,000 discount on this truck on top of the cash incentives that are currently available on it. This is probably very close to dealer invoice, which is a very good deal. This truck's lease program varies by region, so I can't really tell you what I think of the exact payment that you were quoted on it without knowing what state you are in. Let me know and I'll tell you what I think.

    Car_man
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  • Hi pulleydog. You certainly don't appear to be "Leasing Challenged" at all. You were smart enough to get all of the important information about the vehicle that you are considering leasing. This is very important. This truck's lease program varies by region, but the lease rate that you posted looks about right to me. Furthermore, the selling price that you were quoted looks excellent. You were able to negotiate a $2,000 dealer discount on this truck, which is probably right around dealer invoice, and made sure to have the $2,500 lease cash that is currently available on it taken into account. $500 a month is a lot of money to lease Ford Explorer, but this looks to be an excellent deal given the program that is available on this model at this time.

    Car_man
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  • Hi Carman,

    Thanks for your reply and thoughts about the lease. This is actually going to be a special order vehicle that won't be arriving from the factory until sometime in January. We're hoping that the incentives will be better next month. Currently $2500 rebate here in MA. We're going from a Mercury to a Ford and unfortunately, we will likely NOT be eligible for an owner loyalty rebate because of the change in the vehicle Make.
    But thanks for your assistance! :)
  • I have been looking at lease options. I have a 07 EB V6 2x4 MSRP of 31,360 with a selling price of 30,500. Using 12k miles/yr with about $850 down I have been quoted a monthly payment of $514 for a 3 yr lease and $552 for a 2 yr lease. I am in Greenville, SC - any thoughts?

    This is my first experience with lease negotiations and I have not committed to anything yet. Thanks for any comments!
  • Hello,
    I am trying to use the Lease Calculator to figure out how to get to a monthly payment that fits me. I get the a-z plan, want to put zero down, and understand there is 4500.00 is rebates.

    Where can I find the '07 XLT 4X4 Explorer lease interest percentage rate (money factor) and residual value for the current 24 month lease offer area 48346; with 12K and 15K miles a year? (I figured the money factor to be .0011 but do not know where to find the residual values).

    Thanks, Working Backwards
  • fetchfetch Posts: 1
    Hello all. This is my first question. I am currently leasing a 2004 Ford Explorer Limited AWD V8. I started the lease in October of 2004. The lease is 48 months with 10,500 each year. My monthly lease payment is $512. I am planning on keeping the vehicle for four more years so I am thinking about buying out my lease and re financing with a very low rate through a credit union. Do you think this is a good idea? Will I have to pay sales tax on the financing for the purchase even though I already paid sales tax when I leased it? Thanks for the help.
  • You're welcome, pulleydog. Let me know if you have any questions when your truck arrives.

    Car_man
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  • Hi gadawg2. The truck that you described probably has a spread of around $1,700 to $1,800 between its full MSRP and its dealer invoice price. You were quoted a discount of $860 on it. I personally would want a larger discount than this. If I was in the market for an Explorer I would shoot for around $500 over invoice minus the $2,500 lease cash that is currently available on it in your area. Shop around and see if you can beat this deal.

    Car_man
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  • I can give you an idea of what this truck's current lease program is like, scottduffie. Its current program varies by region. For consumers who are outside of the New York and Detroit areas, Ford Credit's current base lease rate and residual value for a 24 month lease of a 2007 Ford Explorer XLT 4WD with 15,000 miles per year are 5.0% and 45%, respectively. This truck's 12,000 mile per year residual value would be 2% higher. As you can see, Ford Credit publishes lease rates instead of money factors for the vehicles that it leases. You can convert its published lease rates into approximate money factor equivalents by dividing them by 2400. So a lease rate of 5.0% would be equivalent to an interest rate of around .00208.

    Car_man
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  • Welcome fetch. If I was in your situation, I personally would wait until I was at the scheduled end of my lease to decide if I wanted to keep this truck. One main advantage to doing so is if it starts giving you mechanical trouble, you can just walk away from it at the end of your deal. Furthermore, if you are in an accident in your truck you can just walk away from it at lease-end and let Ford Credit take the diminished value hit that vehicles that have had collision repairs experience. Unless you are paying an outrageously high interest rate on your lease, which is highly unlikely given the level of lease support that Ford usually provides on Explorers, you probably won't save much by buying your leased vehicle and financing it through your credit union. I am not absolutely positive, but I believe that you probably would have to pay sales tax on your truck if you were to purchase it at this point.

    Car_man
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  • I am looking into leasing a 2007 Ford Explorer XLT 4X4 with Ironman Package and optional 3rd row for 39 months, 12K miles/yr. Can you let me know the rent charge and residual for this vehicle?

    The MSRP on the car is $30,660 and I am working off a price $500 over invoice $29,288. Then, taking off the $3500 lease cash, negotiated cost would be $25,788.
  • I have two offers on the table for a 36 month lease with 15k miles per year. Both deals my trade is my down payment equalling $5000. Current rebate is $3500 on the Explorers.
    Both deals offer zero out of pocket at start.
    The Limited:
    MSRP 36155
    Xplan pricing 34323.9
    total selling price 25823.9
    End Value 16769.75
    monthly payment 371.76

    The Eddie Bauer:
    MSRP 35515
    xplan 33566.94
    total selling price 25066.94
    End Value 16836.9
    monthly payment 346.01

    I like the limited because it has the black seats but the EB seems to be a better deal. What is the better offer? Please advise.
  • Greetings vballny23. Ford's current lease program for the 2007 Explorer varies by region. Looking at your user id, I suspect that you are in New York. I will provide you with the lease program for that area. Let me know if this is not where you live. Ford Credit's current base lease rate and residual value for a 39 month lease of a 2007 Ford Explorer XLT 4WD with 12,000 miles per year are 2.75% and 45%, respectively. $500 over dealer invoice minus any available lease cash is a good price for this truck.

    Car_man
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  • Hi creekchubs. I see that you are trading in your current vehicle and leasing a new one. There's nothing wrong with trading in your current car or truck when you lease a new one, but it would be in your best interest to have the dealer that you are working with cut you a check for any equity that you have in your vehicle rather than using the proceeds from it as a down payment for your lease. I always advise consumers against making large down payments on leases. Those who do run the risk of losing their down payment if their vehicle is totaled in an accident or stolen and never recovered.

    The fact that you are able to get your truck through Ford's X-Plan ensures that you will get it for a good price.

    Car_man
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  • I have a 3 year lease on a 2004 Explorer Limited that expires in April. The purchase price option is thousands more than its fair market value, so I do not want to buy it at that price. I am told that I cannot buy it for anything less than the purchase option. Is this true? I also thought about extending the lease for a year or two (at a reduced monthly payment given that the vehicle is 3 years old) but have been told that Ford does not do this. Is this true? Any insight would be much appreciated. Thanks very much.
  • 4jeeps4jeeps Posts: 6
    I am considering an Explorer XLT 4x4 and was wondering if anyone was aware of the current money factors and residual values. I would be looking for 12K miles/year if it makes a difference.

    Thank you for any assistance.
  • jennianjennian Posts: 4
    does anyone have the money factor, residual and
    incentive info?
    thanks
  • kalikkalik Posts: 1
    I need help in determining why such a price difference and how to calculate it. I currently lease a 2004 XLT - $336 for39mos 2,000 down 5,750 in rebates . Selling price 32,362 (Cap cost 27,403.22) 47% total residual (45+2) money factor 3.25% 12k miles a year .

    I was looking into leasing the EB for the same selling price and have been working on quotes. For the same priced vehicle (Less options,looks a little nicer), and the same lease term 39mos 12k miles 2.25% financing , 5000 in rebates, with 2,500 down I am quoted around 375 a month . I am being told its all due to residual value difference. Is this true, is the residual value of the EB the same at all dealers for this vehicle lease? Is 375 reasonable , I cant see paying more for the same priced vehicle .

    Thanks
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi 4jeeps. Ford Credit's current base lease rate and residual value for a 36 month lease of a 2007 Ford Explorer XLT 4WD with 12,000 miles per year are 4.0% and 43%, respectively in most areas. This truck's lease program is slightly better in certain regions. If you tell me what state you are in I can tell you if you are in an area that has an enhanced lease program for this model. As you can see, Ford publishes lease rates instead of money factors for the vehicles that it leases. You can convert its lease rates into approximate money factor equivalents by dividing them by 2400. When negotiating your capitalized cost for this truck, make sure to take the lease cash that is currently available on it into account.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi jennian. The Ford Explorer's lease program varies by trim level, region, term, and mileage allowance. I would be happy to give you an idea of what the lease program for the truck that you are interested in is like right now, but in order for me to do so I need you to tell me exactly what Explorer you want, i.e. an XLT 2WD, an Eddie Bauer 4WD, etc..., what state you are in, how long you want to lease it for, and how many miles per year you need to be able to drive it. Let me know and I'll tell you what the latest lease program is like.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi kalik. I don't remember what the lease program was like for the Explorer back in 2004, but it is very possible that its residual values are worse today than they were back then. I would be happy to give you my opinion of the deal that you were quoted, but it would be a big help if you provided me with this truck's full MSRP and selling price first. These numbers will show me how much of a discount you are being given.

    Car_man
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  • luckycaitluckycait Posts: 2
    Hi Carman
    I'm wondering if anyone could help me out!
    We are getting a deal and I'm wondering if it's very good?
    Explorer XLT
    Leather package
    Convience Package
    3rd seat
    Climate package
    Running Boards
    6 disk changer
    MSRP $31,120
    We have the Ford X Plan so that make s the price $29,957
    We have an '04 Toyota Solara SE Sport that blue books at $12300 but he only wants to give us $11K and we owe $20K
    so there is another $9K tacked on
    there is $4K in rebates
    36 mos
    12K/year
    Acq. Fee $595 Dock Fee $45
    Tax is 7.25%
    and he has us at 2.25%

    He has our payment at $662.53 AND $2000 down.
    I plugged this into a lease calculator but I came up with alot less. Can you tell me if I'm getting taken?
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi luckycait. You are currently $9,000 upside down on your Solara. Ouch :sick:. Unless you really need to get an SUV for some reason, like your family is expanding it would really ne in your best interest to wait until you are less upside down on your car to get something new. If you really have to get a new vehicle now, the Explorer is a good one to go with because you will be able to get a pretty big discount on it that will absorb most of your negative equity. The fact that you will be able to lease this truck through the X-Plan is great. It means that you will be able to get an excellent deal on it without having to haggle.

    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 2007 Ford Explorer XLT 4WD that has an MSRP of $31,120 and a capitalized cost of $32,957 ($29,957 selling price - $4,000 lease cash - $2,000 cap cost reduction + $9,000 negative equity) through Ford Credit right now for 36 months with 12,000 miles per year, your $2,000 down, pre-tax monthly payment would be around $571. As you can see, there seems to be something wrong with the monthly payment that you were quoted. There's no way that sales tax adds $100 per month to your payment. If I was in your situation I would comparison shop with another dealer or two.

    Car_man
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  • memonstermemonster Posts: 1
    We have the 2004 explorer xlt the purchase options at end of lease term is $16628.05---is this price negotiable? unfortunately my husband thinks he understands car buying but he doesn't. I love my explorer and would really like to keep it and we just put new tires on it thinking we were going to keep it. any tips would be greatly appreciated! oh our miles are low (37100) and there are some minor wear and tear to it.

    options (i am sure there are more, but these are the ones that i can think of off hand)
    third row seat
    moon roof
    cd player
    cruise control
    power drivers seat
    airbags
    4wd

    thanks,
    aimee
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi aimee. Some banks will occasionally negotiate the end of term purchase prices of leased vehicles and others will not. I am not personally all that familiar with Ford Credit's policy on this matter, but give it a shot. You certainly don't have anything to lose by asking for a lower price. I have found that if your initial contact at the bank is unwilling to negotiate that one can often get a manager who is above them to do so. If you do try to negotiate your Explorer's purchase price, stop back and let us know how it went.

    Car_man
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  • Hello,
    I was looking for a new 07 Expl. Looking to lease for first time. Currently have 03 xlt w/46k miles but would like upgrade to EB with V8, trailer tow etc... Not sure about the whole lease thing. Any ideas what a good starting deal would be or where to start at???? I live in upstate New York but i have found that it is hard to find a vehicle up here with options that i would like to get
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hello explorer3741. Since you have never leased before, 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.

    In short, the best way to get a good deal on a lease is to negotiate as low a selling price as possible on the new vehicle that you want and then have the dealer that gives you that price calculate your monthly payment using its base lease rate. If you give me an idea of what the MSRP of the truck that you are interested in is and what sort of selling price you expect to be able to negotiate I would be happy to work up a sample lease payment for you.

    Car_man
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  • hcophcop Posts: 6
    Can someone tell me what the x-plan is?
  • mgc1mgc1 Posts: 1
    am looking to lease a ford explorer(07...EB) have never leased...got a quote from a dealer here in the portland,or. area. It seems awful high....any thoughts???

    MSRP $37,675.00
    Sale Price $35,999.00
    Less Lease Rebates -$3000.00
    (used to cover 1st payment, & DMV....ZERO out of pocket cash)

    36 months @ 10,500 miles per year = 607.22 per month
    Lease end value = $17,707.25

    36 months @ 12,000 miles per year = 617.08 per month
    Lease end value = $17,330.50

    36 months @ 15,000 miles per year = 636.81 per month
    Lease end value = $16,577.00

    *All leases figured at 5.75% APR On Approved Credit.
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