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Ford Explorer Lease Questions

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hello cwakefield. Different states have different tax rules, so taxes are a difficult thing to generalize about. Having said this, I'll do an anyhow :) . Generally speaking, customer cash incentives (including lease cash) are taxable, but dealer cash incentives are not because they are considered a manufacturer price adjustment.

    I believe that Ford Credit charges a security deposit on most vehicles. The only way that I could see them waiving yours is if you are currently leasing a vehicle through Ford Credit. You would be much better off paying a security deposit than wasting your money on "Wear Care" protection.

    Doc fees vary from dealer to dealer. Some dealers do not charge any, while others have ones that are several hundred dollars. Dealers are definitely not required by law to charge this fee. What your salesperson might have meant is that if a dealer charges one person this fee, everyone has to pay it. If you don't want to pay it and the dealer won't waive it, just have them lower the price of your truck by the same amount. You can either have this fee added into your truck's capitalized cost or pay it at signing, just make sure that you don't somehow do both.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi Michelle. Ford Credit actually does not use lease money factors. Instead it publishes lease rates for the vehicles that it leases. You can convert its published lease rates into approximate money factor equivalents by dividing them by 2400. The Explorer's lease program varies quite a bit depending upon which one of Ford's many regions one is in. In order for me to give you an accurate idea of what this truck's current lease program is, I need you to tell me what state you are in.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    I'm sorry to hear about the problem that you are having with this lease, allnew3. You were smart to take a close look at your new contract before signing it. This dealer isn't absorbing the cost of their mistake if they are trying to lower your mileage allowance for your lease. I definitely would not let them do this. If they promised you 12,000 miles per year at this price, that's what you should get. Let them figure out how to do it, but make sure your lease payment, the length of your lease, and your mileage allowance stay the same.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    You're welcome, wregan. If you were to lease a 2006 Ford Explorer Limited V8 4WD through Ford Credit in the New York area right now for 36 months with 10,500 miles per year, its base lease rate and residual value should be 2,5% and 48%, respectively. When negotiating the capitalized cost of the Explorer that you want to lease, don't forget about the $2,500 lease cash and down payment match offer (up to $1,000) that Ford is currently providing on it in your area. These incentives will help you to negotiate an attractive capitalized cost.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi Stephen. Thanks for posting what part of the country you are in. This is very important with leases of Ford models because Ford's lease program often varies quite a bit from area to area. Let's calculate a lease payment on the truck that you are considering and see what we come up with. According to my calculations, if you were to lease a 2006 Ford Explorer Eddie Bauer 2WD with an MSRP of $32,775 and a capitalized cost of $28,180 through Ford Credit in the Atlanta area right now for 24 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $460. The payment for an otherwise identical 36 month lease should be around $441.

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  • Carman,
    I've read a lot of posts and it seems they all vary. So here's my deal. Please let me know if it sounds right.
    State NJ. 06 Explorer ED V8, Moonroof, 3rd row.
    12K miles / 24 months lease
    MSRP - $36,025 Includes Dest charge. ($645)
    X-Plan $32,900
    Incentives $2500 + $1000 match
    Residual .58
    Total Out of Pocket $3,000
    Payment $334. Buy at end for $21,000. Is residual based on MSRP or negotiated price? And is payment decent? Or am I being tricked.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Welcome exploring06. The fact that you qualify for Ford's X-Plan almost assures that you will get a good deal on this truck. In answer to your question about how residual values are calculated, they are always based upon a percentage of vehicle's full MSRPs, including the destination charge. The payment that you were quoted looks about right to me. I'd be happy to double check it for you. Is the X-Plan price that you posted before or after the cash incentives have been taken into account?

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  • richiecrichiec Posts: 1
    Hi
    I was wondering if anyone knows about the automobile theft
    protection program(ATP) that the dealer is trying to get me to purchase with my lease for $8.00 a month on a ford explorer 2006.
    It involves etching the glass with a VIN number and insurance up to $15,000 to get me back in a lease should my car be stolen and not recovered.
    Anyone know if its worth it or just a gimmick?
    Thanks
  • goodsgoods Posts: 3
    I saw a ad on TV yesterday for either $269 or $279 a month lease. I live in NJ. I have been looking all over for the details of the lease because I just caught the last few seconds of the commercial. Most of the dealerships around here keep those incentive deals secret and try to hit you with a $600 lease for an explorer with a few options.

    Any help on finding where those lease deals are located online or if anyone has the current specs on that deal would be greatly appreciated.

    Thanks
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi richiec. Don't bother with the VIN etching. $8 a month is way too much money to pay for it. As long as you didn't put any money down and have gap insurance, you wouldn't have to pay anything if your vehicle is stolen anyhow.

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  • sueatoptsueatopt Posts: 22
    just got quote for 2006 Explorer EB with the Quad Seats.(NY) - the lease will run 377.84 per month with $2670.00 out of pocket. That includes all- 1st payment, tax, bank fee.(not plates) Lease is 39 month/10,500 miles per year. Trucks MSRP is $36,180/invoice is $32,788. Rebates and incentives are figured in. based on I think he said 2.5% finance (or there-abouts)Do you know what price this is based on? And is it a good deal? (It's supposedly a great deal. :confuse: .) just checking to see if it sound like it! thanks. Oh and I realize that I work for Volvo dealer. That is made by Ford- can I get X-plan and would price be better? :)
  • philh58philh58 Posts: 2
    As I near the end of my 36 month 45k mile lease, want to know how bad I got ripped off and where I screwed up

    2004 Explorer - Detroit area
    msrp 38,675
    x-plan 34,634
    Dealer charges
    22 strip
    595 acq fee
    150 x plan surcharge
    -2000 rcl incentive 33,424
    residual .46 - 17,790

    Now over to the Michigan motor vehicle lease agreement
    capitalize cost reduction 1367
    first month payment 527
    title fee 15
    registration fee 8
    gap cost reduction tax 82
    which amazingly equals the rebate of 2000

    Gross capitalized cost of 35,701 {agreed vehicle value of 34,806}
    capitalized cost reduction 1367
    adjusted capitalized cost 34,333
    residual value 17,790
    rent charge 1358
    base monthly payments 17,901
    wear care 300
    total monthly payment 527

    I don't want to get ripped off next time, not sure if I'm going to lease again or buy.

    Thank you for your help and review
    Phil
  • sueatoptsueatopt Posts: 22
    It was a deal that was put out there - that was done as a friend -of a friend - with the GM deal, type thing and I did feel like it was a good price ;) , considering the other models I looked into. One word of advice to all ~ as I do this as Internet Manager for a living - shop the Internet till ya drop. I don't think anyone should just walk into a dealership anymore - with so much info on Internet. Salespeople have free rein to quote whatever they want :mad: - they can give you full list price :mad: and if you have no info on hand - go down the block and shop it. Don't let emotion get the best of you. Wait and shop the $...but make sure nobody low balls you in from Internet ;) Be smart - it's your $.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi sueatopt. Rather than trying to back into this truck's selling price, you would be much better off just asking the dealer that you are working with for it. As a consumer, you are entitled to know this information. I personally would never do business with a dealership that refused to tell me how much they were charging me for the car or truck that I wanted. Unless you are an getting an incredible deal, you will probably be better off going through the X-Plan.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi Phil. If you got Ford's X-Plan price for your Explorer, you most likely got a very good deal on it. As I am sure you are aware, X-Plan provides consumers with an attractive, set price for the vehicle that they are interested in. I personally would have passed on the Wear Care, but it does have value and many consumers enjoy having it.

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  • shambshamb Posts: 1
    Hello all,

    What a wonderful site this is! I hope you guys can help me.

    I got a quote today for and Explorer and 4Runner, here are the details. Which should I go with. I live in Long Island NY.

    EXPLORER:
    Eddie Bauer (no third row and no navigation) 10500 miles per year. 39 months lease $389 per month with $3200 down.

    4RUNNER
    Basic SR5. No options. 12000 miles per year. 36months lease with $3000 down.

    Both down payment INCLUDES Tax, title, Destination charge., Security etc.

    Is this good. Can I get a better deal anywhere else?

    My credit score is 800 plus. Thanks!!!!
  • kirk94kirk94 Posts: 1
    Ok heres the deal, I am about 10K upside down on a 08 Acura TL. Long story short my company requires us to have a 3 year or newer vehicle for the car program they have for outside salesmen and I traded a 3 year old Titan and got into a car... 1) Hate a car 2) drive onto construction sites sometimes etc, not practical for my job big mistake.. I bought this car in hopes it would hold its value over 3 years and after running the numbers I am eventually going to be in a similar situation in 3 years as I was with the Titan by rolling over negitive equity on trade in.

    I am looking at 2008 Explorers Eddie Bauer lease with X plan and $4250 in rebates. with this much negitive equity Im told I cant look at xlt b/c they wont do the loan off the msrp. So I am looking at leasing for 39 months to get out of being upside down. My payments are going to stay the same but I want to make sure I am not getting jerked around on the lease, it is figured at 18K miles a year. Here goes.
    2008 4x4 Eddie Bauer V6. I live in Louisville Ky.

    The way I see it:

    MSRP - $35450

    X plan Price = $33,489 agreed selling price with dealer
    Lease cash - $4250
    = $29,239
    Negative Eq. + 10,000
    = $39,239
    $Down 1000

    Payments should be close to around $700 before tax.

    For some reason the dealer is figuring this and I dont know what some of the terms mean, it is off his quote worksheet.

    Selling price - $44,000
    Cap Fee Window - $1,243
    MFD Rebate - $4,250
    Cash Cap Reduction - $969
    Adj Cap Cost $40,024
    MSRP $35,450
    Residual % 39
    Residual value $13,825.50
    APR 2.75%
    Term 39
    Tax window $2125
    Base monthly Payment = $733
    Total monthly Payment = $807.72
    Due at signing - $2,160

    I dont know what to make of all this. Am I getting a good deal considering the mess I am in? The payment on the lease is to the dollar amount I am paying on the Acura on a 60 month note. In theory I want to be able to throw the keys on the table in three years and be done with upside down on every car I have ever owned. But I can't decide what to do.

    Regards
  • philh58philh58 Posts: 2
    Are these fee's all normal?
    Acq fee
    X-Plan surcharge
    Capitalize cost reduction
    Rent charge

    and a gross capitalized cost that exceeds agreed value?

    Thank you for the response

    Phil
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    I'm glad that you enjoy this site so much, shamb. You're credit certainly is in good shape. That's always a good thing, though Ford Credit is usually fairly lenient in who it approves for its top credit tier. In order for me to give you a detailed assessment of these deals, I need you to provide me with their full MSRPs and selling prices. These numbers will show me how much of a discount you are being given and will enable me to use their actual lease programs to estimate what their monthly payments should be. Let me know and I'll tell you what I think. For now I can tell you that it really isn't a good idea to make such a large down payment when leasing. If your truck is totaled in an accident or stolen and never recovered, your $3,000 down payment would essentially disappear. Consumers can and should lease any vehicle that they are interested in without making any sort of capitalized cost reduction.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi Phil. Ford Credit charges a $595 acquisition fee on every vehicle that it leases. Individual dealers do not have any authority to waive this charge, but you can roll it into your vehicle's capitalized cost if you don't want to pay it at lease signing. Next we have the capitalized cost reduction. This is essentially the down payment that you are making to reduce the amount financed for your lease. Consumers can and should lease vehicles without making any sort of capitalized cost reduction. It is actually in your best interest not to make one because if your leased vehicle is totaled in an accident or stolen and never recovered, your down payment essentially disappears.

    All consumers who lease vehicles have to pay a rent charge. Lease payments are composed of two main parts, the depreciation portion and the interest portion. Just like with a conventional loan, you have to pay interest on leases.

    Last we have the X-Plan surcharge. I am not familiar with what this charge is. How much is it? I know that some manufacturers charge consumers who purchase new vehicles through their employee programs a tiny fee. For example, DaimlerChrysler charge consumers who purchase vehicles through its Employee Purchase Program a $75 fee. Perhaps this is what this charge is. I have never purchased a vehicle through Ford's X-Plan so I don't know for certain.

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