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Ford F-Series Pickup Lease Questions

CarMan@EdmundsCarMan@Edmunds Posts: 38,518
Hi everyone. Please use the following discussion to post any questions that you have about leasing a Ford F-Series Pickup. Thanks.

Car_man
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  • Car_man,

    Is it worth it to lease a 2005 F-150 in general? I have not heard anything great about Ford motor credit and leasing or the trucks residual. I have to make a decision by october 1rst. They just extended the family plan. Any Idea what the residual and money factor would be on a 2005 f-150 Lariat 2WD should run on a 36 month lease? Does an outside lease company make sense?
  • Hi volatile1. Ford Credit's lease program on the F-Series traditionally had not been very impressive. The 2005 F-150 is no exception to this, its current lease program stinks. If I was in the market for this truck, I personally would probably finance it at Ford's Employee Price through Ford Credit at 4.9% for 5 years + a $1,000 bonus. If you were to lease a 2005 F-150 SuperCab Lariat 2WD through Ford Credit right now for 36 months with 15,000 miles per year, its base lease rate and residual value should be 7.25% and 46%, respectively. As you can see, Ford Credit 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. You may be able to lease this truck for less through an independent bank that you would be able to through Ford Credit right now.

    Car_man
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  • Hi,

    I am looking at a lease agreement for a 2005 F150 XLT. While the selling price of $23,964 is very palatable, the residual is based on the base MSRP of $35,000! This is leaving a residual value of $20,650 after a 24 month lease. While I think the selling price is great it just doesn't make sense in the long run to to this! I do have some credit issues and Ford Credit was recommended as a way to get into a car/truck while rebuilding credit. The worst case scenario is getting a Tier 4 credit approval yielding a 14.25 money factor rate ( $483/month with tax). Edmunds has the exact truck selling for (TMV) $29,250 and a MSRP of 34,675. They also gave me the rates of residual was 59% of MSRP for 24 month and 52% of MSRP for 36 months; how does this sound?

    I guess my question is how negotiable is that value that the residual is based on? This vehicle is one I would want to buy out at the end of the lease.

    Thanx!
  • Hi hey765. Vehicles' residual values are always based upon a percentage of their full MSRPs. This is a standard industry practice. It would be difficult for banks to use a percentage of vehicles' selling prices a a standard because everyone pays a different price for their car or truck. They use vehicles' MSRPs because they are consistent. Even if vehicles' selling prices were used as the standard, banks would just adjust and make their residual value percentages higher. To be honest with you, the higher your truck's residual value is, the better off you are. This is because the more your truck is worth at lease end, the less you have to pay for depreciation in your lease payment and the lower it will be. Vehicles' residual values are set by banks, not dealers, and are generally not negotiable.

    14% interest is a lot to pay on such an expensive truck. You may be better off going with a less expensive vehicle, perhaps even a used F-Series until you get your credit built back up and can finance a new truck at a lower interest rate.

    Car_man
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  • Thanks Car_man! Useful information. I have always bought, never leased. Do dealerships typically lease used vehicles? I was under the impression they don't and only smaller used car lots would do that? Part of what I'm trying to do is use Ford Credit as a way to improve my credit and being they are mainstream, they are better to have as a lender rather than what a used car lot would provide for a high credit risk person.

    I agree, 14% is extremely high and if my credit were to be approved at that rate I most likely would not do the lease. It is the worst case scenario in light of recently discharged bankruptcy... :cry:

    Thanks again,
    Hey765
  • Hi,

    I did get a great rate for leasing the F150 ( 8.5%, Ford Tier 1). I am concerned with what happens when I turn it in. I kinda feel vulnerable to nit picking adding up to thousands of dollars at the dealer. Ford has a Wear Care program which they are pricing to me at $26.67/month on a 24 month lease. I was wondering what other people have paid, how they set that and if people have negotiated it down. I seem to remember seeing it on a website by ford or ford credit listing $15 - $20.month to get the $2500 worth of protection. Of course the dealership is saying if you have it, they pretty much wave the car through at the end of the lease, otherwise they nit pick. No pressure to buy that ;) .

    Anybody ever negotiate it or have more information on how they calulate it: flat fee for all cars and trucks or?

    Thanks
  • No problem Hey765. Some banks, including a number of manufacturers' captive finance companies lease used vehicles. The problem with leasing used vehicles is that they often end up costing more, or around the same, to lease as equivalent new models. This is because automakers provide support in the form of low interest rates, cash incentives, and inflated residual values on many new vehicle leases but they rarely do so on used vehicle leases. BMW is one of the few manufacturers that I can think of that has a fairly attractive used vehicle lease program.

    Car_man
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  • I'm glad to hear that you ended up getting a decent interest rate, hey765. Don't worry too much about being nit picked about your truck's condition when you return it at the end of your lease. Most captive finance companies, like Ford Credit, are very reasonable when evaluating the condition of vehicles at the ends of leases. Of course, if your tires are really bald or your truck has some huge dents or scratches you will be charged for them, but the last thing that Ford wants to do is nickel and dime you to death, make you mad, and end up losing your future business.

    Car_man
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  • irgirg Posts: 197
    Was wondering about the details of this lease I saw advertised. A F-150 XLT 4x4 (I think a supercab, not sure) for $199/month for 24 months. Couldn't tell if there was anything down or not. Anyone know of this deal? Seems good to me.

    Also, can car seats be used in a supercab, or do they only work with a quad cab?
  • Hello irg. I have not seen the specific advertised lease that you mentioned in your post, but I can calculate exactly how much it would cost to lease any F-150 that you want, exactly as you want it equipped. Look up the full MSRP of the truck that you are interested in in the New Vehicle Pricing section of this site. Then stop by the following discussion to get an idea of how much you should pay for the truck that you want: /WebX?14.ef17d3a. Once you have an idea of the MSRP and selling price, let me know and I will estimate how much this truck should cost you to lease using Ford's actual lease program.

    Car_man
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  • i've had a couple of trucks leased from ford before.

    one of them i had zero problems with..the last one i hated the dealer because they pulled a switcheroo on me. we negotiated on one vehicle and they found a cheaper one with the same exterior, hid the window sticker and i was none the wiser until i found the sticker more than a week later tucked under the passenger seat.

    i told ford motor credit immediately what happened and the absolved me from returning the car back to that dealer.

    however...i live in texas and my understanding is that we have a different ford lease program here called the red carpet option.

    i've always negotiated the price on the truck first and then work out leasing details after we've settled on the price.

    then in the f&i room i go over every square inch about the lease details. if i see something i don't like...i don't sign or i just walk out.

    i owe the dealer nothing. and if they want my business they'll meet my terms.
  • in the market for full size truck and looking at f150 super crew cab. msrp is 31160 with sale price of 24000 and putting 2000 dollars down. would appreciate any advice or assistance
  • Hi car_man,

    Do you know what is the current money factor and residual value on the F-150 fro 36 months (for both 2005 and 2005 models)? Can the $4000 offered by Ford be used to toward the calculation of the negotiated price? Thank you.
  • Hi buckeyechad. I would be happy to give you an idea of what sort of lease payment you can expect to pay for this truck. Its exact payment will depend upon how long you want to lease it for and how many miles per year you are allowed to drive it though. Let's say that you were to lease a 2006 Ford D-150 Super Crew XLT 4WD with an MSRP of $31,160 and a selling price of $24,000 through Ford Credit right now for 36 months with 15,000 miles per year, its zero down, pre-tax monthly payment should be around $255. With a $2,000 down payment, which I advise against making, the payment for this truck would drop to around $197. 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 this truck would be exactly the same, regardless of whether you had put $2,000 down, or had made absolutely no down payment at all.

    Car_man
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  • Hi corrad. Ford's lease program for this truck varies, depending upon exactly which trim level you are interested in. For now, I will assume that you want a Ford F-150 Regular Cab XLT 4WD. Let me know if you want a different truck than this, which is very likely given the large number of versions that Ford has. If you were to lease a 2006 Ford F-150 Regular Cab XLT 4WD through Ford Credit right now for 36 months with 15,000 miles per year, its base lease rate and residual value should be 5.0% and 48%, respectively. As you can see, Ford publishes lease rates instead of money factors for the vehicles that it leases. You can convert its published lease rate into an approximate equivalent money factor by dividing it by 2400. Ford is no longer providing any sort of lease support on the 2005 F-150. Unfortunately, the $4,000 customer cash that you mentioned is not available on leases of the '06 F-150. Ford is currently providing a total of $1,750 in cash incentives on leases of this truck through Ford Credit.

    Car_man
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  • jvosjvos Posts: 55
    Now that its 2006, what are the money factors available on SuperCab 4WDs? Also, what other incentives are available?
  • I am looking at leasing a F150 Supercrew and through my company, have the ability to receive an "X plan" price... Do you feel I should use this or do you think I can get a better sales price on my own?
  • Hello jvos. Ford's lease rates and residual values vary depending upon how long you lease for and how many miles per year you need to be able to drive. For now I will assume that you are interested in a 36 month lease with 15,000 miles per year. Let me know if you want something different. If you were to lease a 2006 Ford F-150 SuperCab XL 4WD through Ford Credit right now for 36 months with 15,000 miles per year, its base lease rate and residual value should be around 2.5% and 48%, respectively. When negotiating your lease on this truck, keep in mind that Ford is providing a total of $1,750 lease cash on it this month. This will help you to negotiate an attractive capitalized cost for your lease. Also, Ford is waiving the first month's payment on leases of this truck through Ford Credit right now.

    Car_man
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  • Hi dkowitz. I suspect that you will be able to get a better deal by purchasing this truck through Ford's X-Plan than you will be able to negotiate on your own, but it wouldn't hurt to shop around just to make certain. You also may want to stop by the following discussion to see how much other community members have paid for their F-Series pickups lately: "Ford F-Series: Prices Paid & Buying Experience".

    Car_man
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