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Ford Mustang Lease Questions

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  • Hi Edamon,

    I talked to US bank, and they told me that they don't do car leasing.
    How do I find a US bank branch, that does car leasing?

    Thanks
    Vaibhave
  • edamonedamon Posts: 17
    Vaibhave,

    US Bank does lease cars, so the person you spoke to is wrong (I've leased 3 cars with them: BMW 745i and my last two Mustang GT/Brembo pkg cars - 2011 and a 2012 I just took delivery of).

    They don't deal direct with customers, you need to have the dealer setup the lease.

    I'm not sure what car you are looking at right now, but check in here to get the "real" residual and money factors, as 95% of the dealers out there will try and "pad" the money factor with a few extra interest points (money factor is just the leasing term for interest rate. To convert MF to interest rate, take the money factor, generally listed like ".00225" and multiple it by 2400.

    If you are looking at the Mustang GT, US Bank's real numbers are:
    61% residual (on a 36 month lease, 12k miles a year) and
    .00182 money factor or 4.37% interest rate.

    The dealer I bought the car from tried to play games, thinking I didn't know the actual numbers and quoted me 61% residual and .00284 money factor (or 6.82% interest, 2.5% interest points higher... or ~$50 more a month. After calling him on it, the finance manager was quite embarrassed. So you need to go in educated.

    Lastly, whatever vehicle you go with, go to truecar.com for best pricing, on average they are all lower than invoice. Also remember that any rebates ($1500 on the mustang gt for example) is "your money" it's manuf. to customer. So if they aren't selling the car for invoice, don't let them try an use that money to get to invoice. The price is invoice and the $1500 is your money - use it to cap reduce the lease or pocket the money, up to you.

    In my case, the 2012 Mustang GT Premium MSRP was $37,800~. Truecar.com had three dealers that would sell it for $32,777. So that's what i bought it for and used the $1500 as a further cap reduction to lower the payments.

    The configuration was:
    -GT Premium (6-speed manual)
    -401A Rapid Spec interior (nicer leather seats, dark trim and better shifter),
    -Brembo Brake Package (also has better rims and pirelli p-zero tires and
    further suspension tweaks),
    -3.73 gears,
    -Rear Back-up Camera (kind of cool, shows up on the rear view mirror).

    This was the same configuration I had on the 2011 and is a great setup. It's also the same configuration that Motortrend tested against the M3 and beat it across the board, less at the race track, where it came in .09 sec slower (87.76 vs 87.67 for the M3. However, it beat the M3 in the figure 8 (both in time and lateral G's, ran a 1/4 mile of 12.7@111mph to the M3's 12.8@110 and out braked it by 2 feet (108ft 60-0 to the M3's 110ft).

    If you have any questions feel free to PM directly, I'd be glad to help with your lease and provide any info (regardless of what vehicle you go with).

    Car_Man who moderates here and is a great resource can provide the current residual/money factor programs from US Bank on any vehicle you are looking at, but the numbers I quoted on the GT are the current ones and the 'actual' ones. Be very aware at what the dealer tries to quote, as they will all try and get away with padding it, thinking people don't know the difference.

    Best,
    Damon

    p.s. a good calculator to use that will get you in the general ball park of what the lease will be (+/- $20) is: http://www.leaseguide.com/calc.htm -

    ...also US Bank is very friendly as the lease comes near a close -- and will call and negotiate a buy out. On the BMW, they paid the last 6 payments and sold it to me for the end of lease residual price v.s. Ford or BMW, who don't budge at all, since they have dealers and CPO programs to put the vehicle into. So the bottom line is US Bank would rather give you a good deal to buy the car (and resell it if you want or keep it) vs. taking back iron that they'll have to run through the auction.

    On the BMW - worked out very well, saved $5500 in the payments they "ate" and buying it at the residual price - ended up selling the car for $10K more than the buy out, so that + the $5500 in payments I didn't have to make - the net-net was +$15K. I pocketed half and used the rest as a cap reduction (aka down payment) for the FX45 I picked up at the time as a replacement.
  • Hi Car_man,

    You quoted me lease rates of 2.25% and 53% residual for Ford Credit.
    Does these lease rates change with region?
    I am in San Jose, California.

    Can you also tell me the lease rate and residual values of US BANK for
    "2012 Mustang V6 Convertible Premium with 10,500 miles per year".

    Thanks a lot for your help.
    Vaibhave
  • Hi Edamon,
    Thanks for such a detailed reply.
    My dealer didn't have tie ups with US bank.

    So, I finally leased the Ford Mustang v6 premium convertible, from Ford Motor Credit.
    I got it for invoice price minus $1000 rebate, 53% residual and 2.75% lease rate.
    This came to $396 per month, with $2600 down.
    I think I got a good deal.

    The dealer has given me a day to decide on the "Wear Care" package, which offers $2500 for excessive damage at lease end.
    The cost is $750 for me.
    Now my question is
    Is this package really worth and useful,
    and is the $750 a good price?

    Thanks for your help.
    Vaibhave
  • edamonedamon Posts: 17
    Vaibhave,

    What was the MSRP of the car and what was the selling price (before the $2600 cap reduction and $1000 rebate)? the interest rate is good, residual seems a little on the low side, since Ford has been running promo's on their V6's (they don't have a GT program).

    $750 is a lot for the wear and tear and really not needed (especially when they are only covering $2500). It's also not something you can residualize in the lease, so it came out of the down payment. On a lease, unless you show up with a 3 foot scratch or a big dent, you're fine.

    First there is the normal wear and tear and secondly, near lease-end with ford you'll get a package. In it includes a measuring tool - little bigger than a credit card with a ~.50 cent hole in the middle. Any scratches less than the length of the card or door dings smaller than the hole in the car are acceptable.

    So if you can, go get your money back on the wear and tear package the finance guy sold you (the finance dept is where most people get taken on items they don't need - and it's stuff that is pure cash for the dealer. The most I'd have paid for that protection package is $100-$125 (and would have still passed on it).. it's all "soft money" stuff and you'd be amazed how quickly they'll drop the prices.

    On an expedition I purchased a while back (it was a CPO, which came with a 6 year power train warranty), they wanted to sell me the Ford "bumper to bumper" extended warranty for three years or four years, forget at the moment with a $250 deductible per incident. A simple "no" dropped it to $1500. A second "no" dropped it to $850 with a zero deductible - which was a decent deal. However, it shows you how much margin there is in this stuff. $750 for $2500 in coverage - the ratio just doesn't make sense. Even if you had some dings beyond what they allow, the repairs would likely cost less - if even needed. The finance guy is one of the biggest crooks in the dealership and uses fear to sell you stuff you don't need. Generally they'll hand you a paper with 5 options on it (like the wear and tear or free replacement wearable parts (brake pads, etc) for some price and a few others and ask which ones do you want. Always point to a blank part of the page and say "that one", haha. .

    Anyhow, with the purchase #'s, I can give you a better idea on the lease, but in the short term, go get your money back on the wear and tear package - put that $750 for your next 2 payments or pocket it.

    As example, my 2012 GT Premium/Brembo/etc as noted previously with ~$38000 MSRP, leased for $410 w/tax included (8.75% here in Los Angeles) on a 36/mo lease.

    Either way, congrats on the new car and enjoy it!

    Oh.. also, how many miles a year did you go with? Ford Motor Credit offers 10,500/yr, 12,000//yr and 15,000/yr. There is a +/- 3% difference in residual value for example from 10,500 to 15,000 a year.

    best,
    damon
  • Thanks Damon.

    The MSRP of my car is $33000, and the invoice is $31,289.
    Got $1000 rebated over the invoice.
    I got $10,500 miles per year.

    Definitely you got an amazing deal for GT. No-one in San Jose Bay area was offering anything better than I got.

    Also based on your recommendation, I have decided not to go for the $750 wearcare package.

    Thanks
    Vaibhave
  • edamonedamon Posts: 17
    edited August 2011
    Vaibhave,

    Glad you ditched the wear and tear package, waste of money imo.

    As for the car - I did a quick search on Truecar.com -- if you already made the deal, don't worry and enjoy the car. However, there are three dealers in your area that are selling the car for $28,500-$28,600 (guaranteed price). Also checked Cupertino as well, same pricing.

    Also the rebates are $1500, but the RCL lease might only have had a $1000 incentive, not sure on this, but still, would have put the purchase price at $29,000. So you only paid ~$1000 more, not terrible, but something to note for the future.

    All in all, you did alright on the lease. Their claim to not supporting US Bank is a questionable statement, every Ford dealer does - as it's the only way to lease GT's at the moment.

    If I were you, go to t r u e c a r . c o m (not sure if edmunds is blocking the site) and put in your zip code and it'll give you the list of dealers (one was Sunnyvale Ford. Call them and ask what the current program is from Ford on a 10,500 mile lease, my guess is it's 56% (you get +1 point for each mileage level, 15K being the lowest, 10,500 being the best and +3 over 15K. Tell them you know that US Bank is 61% and .00182 (4.37% MF) and want to know exactly what Ford's program is on a 10,500 and 12,000 mile for your own gut check. By quoting US Bank's #'s they will be less likely to give you the wrong information. Also be sure to ask this of the finance dept and not a sales person - you could scribble everything they know about leasing on a piece of rice and still have room left over ;) If the dealer didn't adjust the residual accordingly, you have something to take them to task on.

    If I get a free moment, tomorrow I can check on them for you with the dealers I work with in LA (Galpin Ford - the largest retail dealer in the U.S. and I have a VIP/corporate account with them) but they didn't have the car specs I wanted, hence going to the other dealership. Either will give me the real programs). But I still think 53% still seems low for a 10,500 mile lease, especially since the have a V6 lease program in place with Ford Motor Credit (US Bank is 61%/.00182 MF). However, still call yourself in case I get tied up and don't get a chance for a day or two, as time is of the essence.

    Lastly, one question I forgot to ask -how long did you lease the car for? I had just assumed a 36 month lease.

    Again, hope you are enjoying the car.

    Best,
    damon

    EDIT: I just sent out an email for the RCL program, hopefully hear back tomorrow.
  • This TrueCar $28500 does not include the Automatic Transmission which itself is $1100.
    Also all of the premium convertibles available in CA, had some costly option with it (rear camera, pony package, anti-theft,etc) which was increasing the price. Also none were available in Candy Red/Kona Blue I wanted.
    So actually I ordered my v6 car to be build and got this in 6 weeks.

    This is a 36 month lease.
    Also if you see previous posts, car_man also gave the same numbers for 10,500 mileage - 53% residual and 2.75% rate for Ford Motor Credit.

    Anyway, Thanks for all the details.
    I will definitely remember them for my next lease :)

    -Vaibhave
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi vaibhave. I don't believe that Ford Credit will provide this information directly to consumers and I am not aware of any resource that provides accurate data on manufacturers' current lease programs to the general public.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi Vaibhave. I don't believe that Ford Credit's current lease program for the 2012 Mustang varies by region.

    I have not seen the US Bank lease program for this car recently.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • edamonedamon Posts: 17
    Actually Tarry over at leasecompare dot com - in their forums section posts manufacturer lease programs for each month. Or if looking for a specific vehicle, just post a request. Great company and the manufacturer posts are a nice service that they don't have to provide done they do their own 3rd party leasing. Just shows what a great company they are snd tarry is great.

    The forums link is on the main page.

    -damon
  • Hi Car_man,

    Would you please be able to post the September money factor and residual value for an 2012 Mustang V6 Convertible for 36 Months and 15,000 miles per year?

    Thanks!
  • rxkerxke Posts: 148
    edited October 2011
    Hi

    I am looking to lease a 2012 V6 Premium Mustange coupe. The MSRP with options is $31,110 in NewYork suburbs and Truecar dealers around the area are offering a price of $27,393 with the incentives going to the dealers (automatic, 202A package, comfort package, security package, HID headlights, and reverse sensors.). I would like to lease the car for 36 months, 12000 miles per year with no money down. Can you ever provide me the money factor and the residual for this car so I can try to figure out the monthly lease or could you give me a sense of what this would lease for. You guys have been very helpful in the past everytime I have leased a car. I will either try to get a car in stock (very few V6 premium coupes at dealers) or incomine or order it from the factory. I would like to take delivery mid to end of November or early December 2011.

    Thanks for your help as it is appreciated.
  • fivepointoh168fivepointoh168 Posts: 10
    edited October 2011
    Hi Car_man,

    First I'd just like to say thanks as your posts in these threads have helped me help many of my friends get a good lease deal :)

    This one is actually for myself - can you please show us the residual and money factor for a Mustang GT with 6speed manual? 36 month and 12,000 miles please.

    I am located in southern California.

    Also, do the rebates/incentives apply to lease deals or only to purchase deals? I am still reading through this thread so please pardon if it has been answered already.

    Thank you very much for all your contributions and help here,
    Chris
  • I visited two Ford dealerships today

    The first one told me to go through US Bank, and that's an instant $2,500 rebate. BUT, US Bank's residual will be lower by about 10%; then, to top it off, he said that the lowest interest rate (money factor x 2400) is about 8%....I don't believe he knows what he's talking about, or does he? He was the internet sales manager.

    The second dealership told me that the best credit could get me as low as a 2.5% interest rate for the lease deal. Both dealership had the same residual figures:

    36 month 12,000 miles = 58%
    36 month 10,500 miles = 59%

    24 month 12,000 miles = 61%

    Not sure if I got these figures exactly right, but this is what I can remember.

    Can anybody chime in to confirm which dealership is correct, especially about the money factor? If the interest rate is anywhere near 8% then I would be out of the market for leasing a GT :(

    Thanks in advance
  • Without any negotiation, the dealership quoted me $364 per month including tax for 36 months with 12,000 miles per year for a base Mustang GT 6speed manual. This is with a $850 drive off - first month payment plus DMW registration fees.

    This is with financing through US Bank which qualifies me for an instant $2,500 rebate.

    I will try to get the dealership to do invoice which would knock out another 2,000 off the overall selling price of the car, which would bring the payment down to $300 (each $1000 is approximately $30 per month, I was told) - then add the 3.73 rear axle option and maybe the Brembo package as well and bring the payment back up to around $360.
  • Hi pens89. Ford Credit's current base lease rate and residual value for a 36-month lease of a 2012 Mustang V6 Convertible with 15,000 miles per year are 2.25% and 50%, respectively.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Hey rxke. Ford Credit's October base lease rate and residual value for a 36-month lease of a 2012 Mustang Coupe V6 with 12,000 miles per year are 2.25% and 55%, respectively. I believe that this lease program is scheduled to run through the end of the year.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • You're very welcome Chris. Here's the information that you're looking for.

    Ford Credit's October base lease rate and residual value for a 36-month lease of a 2012 Mustang Coupe GT with 12,000 miles per year are 2.25% and 58%, respectively.

    Unfortunately, Ford's normal cash incentives are not compatible with its special lease program.

    Good luck in your quest for a new Mustang and make sure to let us all know how everything turns out.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • chuckcreigchuckcreig Posts: 1
    edited October 2011
    Hi Car_Man,

    Thanks for your help! Can you provide current money factor and residual value percentage info for a 2012 Mustang v6 premium for 39 month lease (not 36) and 15,000 miles per year? Cap cost with options at approx $29500

    I see you posting Ford Credit's base lease rates around 2.25%. Can you explain how this rate is adjusted by dealers, or rather how we can use this rate to help figure out if we are getting a good rate? For example 2.25% seems an insanely low lease rate as this would imply a money factor of 0.00094. But according to Bankrate, for my area (Los Angeles, CA) a GOOD rate will be closer to 4.5% (0.00188). Which is what I would expect to see at the dealer. Any clarification would be helpful. Thanks!
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