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Ford Edge Lease Questions

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Comments

  • chuck68516chuck68516 Posts: 195
    Most companies will give you an APR of say 7%. These are easy to convert to money factor by simply dividing by 2400. However it seems you can't do this with Ford's "money rate" which is .50 or .75. How do you determine money factor on the Ford Lease? I was quoted $364 per month on a 36 month 10,500 mile/year lease with ZERO due at signing, (not even first payment,) on a 2007 Ford Edge AWD SE at invoice pricing and $1250 rebates. He said the money rate was .50 on the 36 month and .75 on the 39 month. Please help...
  • crispyjcrispyj Posts: 8
    I believe Ford doesn't use money factors to calculate, but instead the actual percentages.

    .5% to .75% interest rate.
  • chuck68516chuck68516 Posts: 195
    How could they offer 0.5% when other car companies leases are 5% or more? Impossible.
  • crispyjcrispyj Posts: 8
    FYI -- from CAR_MAN:

    "You can convert lease rates into approximate money factor equivalents by dividing them by 2400.

    Car_man
    Host
    Prices Paid Forum"

    Which would give this car a money factor ranging from .000208 to .0003125
  • kyfdxkyfdx Posts: 27,643
    I don't know the specifics on the Edge lease, but it all depends on where they want to put the incentives..

    $3000 rebate or 0% financing or .5% equivalent money factor, or even a higher than market rate residual..

    So.. the lease rate could be that low..

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • crispyjcrispyj Posts: 8
    CarMan - do you know the current lease percentage/residual rate for a Ford Edge SEL Plus - 3yr/12k.

    has anyone had experience getting these for below-invoice?
  • .5% 36 mo lev 0-1, .75% 36 mo. lev 2, 50% res at 15k / yr on the SE. Interest is higher on the SEL / SEL+. $750 rebate. It's all good.
  • dealers are more willing to bargain on the ones that do not have the vista roof. Most dealerships will honor all of the "plans" on the SE / SEL. Not much sense for them to honor "xplan", or a price anywhere close to that on an SEL+ w/ vista roof since the market currently brings way more than that and supply is low. They shouldnt have a problem offering one up on one of the plans or at a good discount it if you were to order it, though. On the Edge, an ordered unit would not involve an opportunity lost cost like an in stock one would.
  • ejonseyejonsey Posts: 2
    I am about to lease an Edge and want to know if I am getting a good deal. I couldn't find a SEL Plus with what I wanted so I found a SEL with the premium package. My MSRP is $32,385 with the vista roof. I have $1000 coupon for leasing a previous car and there is a $1250 rebate. The sales person said he would sell me the car for $28,157 with a payment of $370 (including tax), 36 month lease, 15K miles with $2,000 drive off. Is it a good deal.

    My previous car was a Mercedes C class and had the same payment but the car was $3,000 more, so I just want to make sure the payment is good for the Edge.
  • vkeanevkeane Posts: 5
    Hey all, my wife and I are about to lease an Edge and here's the deal they gave us. Is it any good? We researched Edmund's and Lease Kit so we have a vague understanding...the MSRP is 34,230, he knocked it down to 32,810. It's for an SEL/black/leather/premium pkg/17" chrome rims//vista roof/audiophile/parking sensors/seat settings and I think that's it..
    The money factor is .5 and he said the residual was 17,500. it's a 36 month lease. the down payment is 2,300 the taxes (which we were told to pay upfront) are about 1,300 and our payment will be 350.00. they are offering a 500.00 return to us as a deal by the dealer...please help! I hate math!!! :-)
  • crispyjcrispyj Posts: 8
    Don't fear the math. Math is your friend and will save you money. Just TAKE YOUR TIME to make sure everything makes sense ;D

    The offer is decent (in addition to the $500 customer cash, there is also $1250 lease money he's apparently applied). Couple thoughts:

    1 - try not to put ANY money down - as you will see from reading these forums, it's a bad idea because if the car gets jacked up somehow or stolen, you're out that money. In this case, if you don't put any money down, your monthly payment will jump to approx $420/mo (BUT, you can take that money you were going to use as a down payment, put it in a savings account, and pay that extra $70/month that way)

    2 - Again, the offer is decent, but I think you can do a bit better. Looks like he's offering the car at around $1000 OVER invoice (inv. is approx $31,900), so you have room to maneuver. If you bargain him down to invoice, you can get a no-money-down payment of around $390/mo.

    3 - Taxes, schmaxes. Whether you pay them now or later is irrelevant - you're gonna be taxed either way - don't let that confuse the issue.

    4 - And just for you, Mr. Fear-The-Math, here's how he came up with the numbers for your CURRENT offer on the Edge (you can use these formulas to figure everything out yourself in the future - just plug in numbers):

    ---

    Lease payments are figured by adding the monthly rent PLUS interest PLUS tax to get your monthly payment.

    So...

    To calculate the monthly "rent"(on the depreciated value of the car)
    ($28760.00 - $17500.00)/36 months = $312.78 (monthly "rent")
    (Cap Cost* MINUS Lease-end value) DIVIDED BY the term

    To calculate the monthly finance charges
    ($28760.00 + $17500.00) X .0002083 = $9.64 (monthly finance charge)
    (Cap Cost PLUS Lease-end value) MULTIPLIED BY Money Factor**

    To calculate the monthly tax
    ($312.78 + $9.64) X 8.25% = $26.60 (monthly tax)
    (rent PLUS finance charges) MULTIPLIED BY your state's sales tax

    Thus, rent + finance charges + tax = your payment
    $312.78 + $9.64 + $26.60 = $349.01 monthly payment

    Don't let the numbers overwhelm you - knowledge is a kick-[non-permissible content removed] thing. Take your time to digest - it all makes sense and will make things much easier for you. Hope this helps.

    By the by...

    * Cap Cost is the agreed upon price of the car minus any $$ down and incentives. In your case, this means you took the agreed upon price of the car ($32810) and subtracted $2300 DP, $500 customer cash, and $1250 lease cash = Cap Cost of $28760

    ** The Money factor is derived by dividing the lease rate (0.5%) by 2400.
  • vkeanevkeane Posts: 5
    wow, you're awesome. Thanks! We only put a deposit to hold the vehicle and will go back to the negotiations tonight or tomorrow...I hate feeling like they're getting over. You're right— you must know the facts...
  • ejonseyejonsey Posts: 2
    I am looking at buying a Ford Edge SEL plus with vista roof, chrome wheels, nav, etc. The MSRP is $34,930. I have $1000 coupon from a previous lease and there is $1250 in rebates. The payments I am being offered is for a 39 month lease, 15K miles, $390 a month (including 8.25% tax). I think they are selling it to me at about $450 over invoice. Seems like a good deal, but it is so confusing.
  • vkeanevkeane Posts: 5
    OK, another dealer that is a friend(ish) gave me this: an SEL+ AWD with vista roof, 18" chrome rims, reverse sensing, audiophile and I think keyless entry system?. 36 months at 12000 miles a year. 1450 at signing and everything rolled into the payment which is 427.91 (which he's saying is about 7 bucks over invoice...any ideas? it works out about 77 bucks more a month but nothing upfront really. It's a total of 2804.76 when all added up.
  • chuck68516chuck68516 Posts: 195
    Going to go pick my Edge tomorrow. 2007 Edge SEL+, Blazing Copper Metallic, Charcoal leather. Panoramic Roof, 18 inch chrome wheels, reverse sensing system, Sirius, Audiophile CDX6. MSRP $32,690. 36 month lease, ZERO DOWN, 10,500 miles per year, $349 per month with only 1st payment due at signing. Tried to get me to pay some $199 aquisition fee but I wasn't having it. I said "One of us has 23 Edges on the lot, the other does not." His response, "Touché." As long as they don't pull any antics I will be driving it home tomorrow.
  • hardhawkhardhawk Posts: 702
    Please give us a report on whether or not there were any last minute tricks. What was the actual "selling" price of the car on your lease contract?
  • This is our deal on the above car. Is it a good deal?

    MSRP 36480 - Sales Price $34962 color -light sage metallic
    Incentives applied are $1250 and $500.
    Trade in on 2003 Ford Excursion nets a generous $2600 since truck needs tires and a/c servicing.

    Lease term is 39 months/ finance rate is .75/ 15k miles per year.

    Monthly payment will be $385 for 39 months - no $ out of pocket

    Residual is .49 Just noticed a etch fee of $125 and ACQ fee of $595. Is this fair?

    Monthly payment is $385 for 39 months. No out of pocket $.
  • chuck68516chuck68516 Posts: 195
    No tactics whatsoever. The selling price was $28724.84. Then they added the $595 acq. fee. I have tried every time I have leased to get them to waive that but didn't bother this time.
  • hardhawkhardhawk Posts: 702
    Congrats on a great deal.
  • crispyjcrispyj Posts: 8
    Hey Carman (or anyone else) --

    Has anyone experienced getting invoice numbers from local Ford dealers that are demonstratively different (by nearly $500) than those reported on Edmonds, Cars.com, KBB, etc?

    I'm a bit confused. Three different dealers have quoted me "invoice" that has far exceeded what has been reported on this and other sites. And no, my math is not screwy. And no, i did not forget to include options and destination fees and such when pricing. Its just simply "off" and i don't know why...

    Did prices go up? Is there a local surcharge (los angeles) i am not aware of?

    Any ideas?
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