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Ford Edge Lease Questions

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Comments

  • 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?
  • jintsjints Posts: 2
    Ford Edge retail 31600. proposed lease is 447 tax in. no out of pocket. the price i am paying for the car is 30500. I used the info posted here of $500 above invoice. They showed me an invoice because I was challenging the $1600 spread they claimed was the price they buy it at. The invoive proved correct. Is that possible? $1600 plus 750 dealer fee is all they make?
    The lease factors are 51% residual, .9 factor or rate. Does this sound good?
    thanks!
  • jintsjints Posts: 2
    yes...i just posted. 31600 retail, invoice 30000. $1600 spread.
  • chuck68516chuck68516 Posts: 195
    On a 36 month lease, you should be getting .5%, that's what I was quoted by every dealer and that's what I ended up getting. Unlesss you have credit problems I would ask why the rate is so high. 39 month should be .75%. My Edge was $32,690 and figured out to exactly $349.00 per month, 36 months with nothing down except first payment. $447 a month is WAY too high. I never even had a FIRST offer/quote that was that high from ANY of the five dealers I was working with. Go to or call a high volume dealer near you about a similar vehicle. If they have 30 Edges on the lot they are more willing to get down to business than if they have 6.

    Also, never, ever, ever, start at above invoice on ALMOST ANY FORD (excluding some models such as higher end Mustang, Vette, F-350)!!! You can easily get the X-Plan by doing a Google search. X-Plan prices are about $20-$100 below invoice. That is where you need to BEGIN negotiations. Don't ever let them think you would ever even pay invoice. You can go to www.fordpartner.com and use the partner code DAVET to see X-Plan pricing so you can get an idea about where to begin negotiating.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi crispyj. If you were to lease a 2007 Ford Edge SEL AWD through Ford Credit right now for 36 months with 12,000 miles per year, its base lease rate and residual value should be .50% and 53%, respectively. As you mentioned earlier, the lease rate is the actual interest rate that you are being charged, so Ford is charging less than one percent on leases of the Edge to help move them right now. When negotiating your lease on this truck, make sure to take the lease cash that is currently available on it into account. It is currently $750 in most of the country, but a little more than that in select areas. If you tell me what state you are in, I will gladly tell you the exact amount for your area. Make sure to use the lease cash to help you negotiate an attractive capitalized cost for your Edge.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi ejonsey. After the two cash incentives that you mentioned are backed out, you are being given nearly a $2,000 dealer discount on the Edge that you are interested in. The difference between the full MSRP and dealer invoice on the truck that you want isn't much more than that, so this looks like a very attractive price. Just make sure that the dealer you are working with uses Ford Credit's 36 month base lease rate of 0.5% to calculate your monthly payment and you're in business.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi vkeane. If the $1,400 discount that you were quoted for the Edge that you are interested in is before the deduction of the lease cash that is currently available on this model it is a pretty good price. If it includes the $750 lease cash that is available on this model right now (it is actually as much as $1,250 in certain areas) then there is a good chance that you can do better than this by shopping around. The lease rate that you were quoted is right in line with Ford Credit's current base lease rate for this model.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi ejonsey. You definitely should confirm this truck's exact selling price before finalizing your deal. If it is the $450 over invoice before the deduction of any incentives, like you mentioned in your post then this is a very good deal. Also, make sure that the dealer that you are working with uses Ford Credit's 39 month lease rate of 0.75% to calculate your truck's monthly payment.

    Car_man
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    Prices Paid Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi vkeane. Dealer invoice before the deduction of the available lease cash is a very attractive selling price for a Ford Edge. If this is the price that you are being given, go for it. Just make sure that this dealer uses Ford credit's base lease rate of 0.5% to calculate your monthly payment.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi advicepls. The truck that you described has a spread of around $2,500 between its full MSRP and its dealer invoice price. You are being given around a $1,500 discount on it, which is assume is before the $1,250 lease cash. This is a pretty good deal for an Edge SEL Plus right now. Furthermore, the lease rate that you were quoted is right in line with Ford Credit's base lease rate for this truck. You would be better off having the dealer cut you a check for any equity that you have in your trade rather than using the proceeds from it as a down payment for your lease (you risk losing it if your Edge is in an accident or stolen), but other than that this looks like a good deal to me.

    Car_man
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  • buffalo78buffalo78 Posts: 36
    Just picked up my EDGE yesterday. SEL+awd Black with charcoal leather. Vistaroof, rear sensors, audiophile sound, rear cargo management, and all-weather floormats. MSRP 34,485.
    Selling price 32,365
    36 mos, 15k/year
    res 51
    lease rate .5%
    $0 down $0 due at signing
    $487/mos.
    Would of liked a lower payment but they came up on my trade, so I actually walked away with some extra money in my pocket.
    Love the vehicle! I was originally looking at the Mazda CX-9 but availability was frustrating. Really didn't need the third row of seats. Went back and looked at the Edge.... glad I did!!
    Only complaint is that it was nice and clean till the birds in my neighborhood decided to "Hit" me a few times.
  • rwheilerrwheiler Posts: 15
    First of all i would like to thank CARMAN and Carspace as it does a great service. THANK YOU!

    here's my deal:

    2007 EDGE AWD SEL+ Pewter clearcoat w/trailer tow package,all weather mats,vista roof,rear cargo system,18" chrome clad wheels,reverse sensors,sirius sat for 6 months,audiophile 6 cd 9 speaker upgrade
    MSRP 34,835
    LEASE 36 MONTHS/ 12K MILES
    Residual 53% or $18,463
    Interest rate .5% or money factor .0002083
    Selling price 33,000 (their invoice was $32,948, X-plan $32,891--$ 400 or so higher than edmunds invoice price of $32,489 because of FDAF/LMDA ASSESSMENT ? which i believe is advertising related?)

    Cap Cost Breakdown: 33,000
    + $ 595 Acquistion fee
    +$ 1111 Tax
    -$ 1250 Ford Lease cash
    -$ 1090 Cash down
    $32,366 Cap cost

    (32,366- 18463=$13903 divided by 36 months= $386 a month
    (32,366 + 18463 = 50,829 x .0002083 = $10.59
    $386
    +10.59
    ---------
    $396.59 A MONTH

    First month's payent 396 + tire 7.50+ title 365 + 141 doc fee = $910 + 1090 cash down = $2,000 at signing.

    I know they advise to put 0 money down but in my head i want a payment under $400 a month!

    This deal also included dealer taking back my 2004 mountaineer with 1 payment of 338.00 left and also had an add-on of $495 Appearance Package which entails pinstriping and extra door and wheelwell moldings. (which does make it look sharper)

    Overall a pretty good experience, dealer let me take car home overnight to throw wife and kids in it. Went back and forth the next day with G.M. and finally hammered out the deal. I'M satisfied and THE EDGE DRIVES GREAT. I HOPE this info will help others as i know i checked this site quite often. I'll post a review on edmunds after 1, 000 miles . PEACE.
  • chuck68516chuck68516 Posts: 195
    I have been checking out this forum for awhile. I leased my Edge on April 27th and got a GREAT deal. Some of you guys could have/should have done better. The last 2 posts especially make me feel like I totally robbed my dealer blind. Edge SEL Plus, MSRP $32,690. 36 month lease, 10,500 miles per year, nothing down except 1st payment, $349 per month. The 12,000 miles per year would have been around $12 more. Still, I think some of you guys should have held out a little longer and got a better deal. Especially the guys who put cash/trade money down. The last poster's deals would have been pretty good if he wouldn't have put any money/trade down. To each his own, personally though, I wouldn't pay more than $400 per month on any Ford Edge. I love it for what I paid for it, but let's face it guys, you could lease a BMW X3 for about $425-$450 per month.
  • buffalo78buffalo78 Posts: 36
    Yeah, I hear ya. I could've done better, but the sticking point in my deal was the amount they gave me for my trade which allowed me to walk away with a considerable amount of $ in my pocket. Plus the dealer only had 8 on the lot and mine was the only one in the area that had the options I wanted.
    Look at the fine print in some of those BMW lease adds... 4k down and only 10k miles a year. not gonna work for someone who needs 15k and doesn't want to put anything down. Me, I'll take the cash back and pay off my college loans! But like you said to each his own.
  • rwheilerrwheiler Posts: 15
    hi chuck, i don't mind being criticized but your #'s are kind of screwy. first you say $195 acq fee then it's $595. a selling price of 28,724 is $ 1800 under invoice. is 28,724 your revised cap cost?(like 30,474-1250 lease cash - 500 loyalty cash=28,724 because 28,724 is a crazy selling price? but lets say it was and you added the $595 acq fee to make 29,319-residual of 17653(54%)=11,666/36=$324
    $324+ $9.5(.5 interest)=333.50 say tax = 6%(? may be higher)=$20= $353.50 plus where are your motor vehicle fees at? somethings askew?

    BUT HEY I'M HAPPY WITH MY DEAL! PEACE
  • chuck68516chuck68516 Posts: 195
    Nothing's askew. Meant DOCUMENTATION FEE Not ACQUISITION FEE. DOCUMENTATION. Yes, they added the ACQUISITION FEE, say it together with me, ACQ-UIS-ITION FEE of $595. My sales tax is 7% and I have never been required to pay any DMV, registration fee on any of my leases EVER. They simply put a temporary tag on your windshield and you have 30 days to go down and pay the fee at the DMV. I don't even think you can do it the other way.

    If you need someone to explain how not to get @#$%*-ed let me know.

    I'm glad you are happy with your deal, I WASN'T attacking your deal, just saying because of deals like your's, I am EVEN HAPPIER with my deal.
  • chuck68516chuck68516 Posts: 195
    By the way, just to clarify, you also get an extra % point on the residual for the 10,500 miles per year.
  • rwheilerrwheiler Posts: 15
    yeah the extra point was added by me,look closer 54% and your # still doesn't jive. pull out the contract and post you #'s cause your $349 don't jive and it would be a DISSERVICE TO PUT UP FAKE NUMBERS. 7% tax adds another couple of dollars than i show. PEACE
  • chuck68516chuck68516 Posts: 195
    MSRP = $32,690
    Gross Cap Cost = $28724.84
    Residual = $17,325.70 (53%)
    Aqusition Fee = $595
    Depreciation = $11,399.14
    Rent Charge = $342.98
    Total of Base Payments = $11,742.12
    Lease Payments = 36
    Base Payment = #326.17
    Sales Tax = $22.83
    Total Payment = $349.00
    Total of ALL Monthly Payments = $12,564.00

    I asked the dealer if he could beat another dealer's price quote of $349.22 on a similar vehicle. This is the deal that I got. THEY BEAT IT BY $0.22. The numbers are weird because they were trying to beat the $349.22. They have to be to get a payment of EXACTLY $349 and NO CENTS.

    What's the mystery?
  • hardhawkhardhawk Posts: 702
    Car Man:

    Is it possible to get both the $750 lease cash and the $500 marketing support figured in to a lease on a new Edge?
  • kat123kat123 Posts: 1
    Car Man or anyone - I could use some help with a lease proposal on 2007 Edge SEL Plus with Nav and Vista roof. MSRP 34375 after using X-Plan adj, cap cost is 33273. Dealer added in $690 security deposit is this optional - actually he charged it as the Wear Care program? and also added in $595 acquistion fee. .50% rate and residual factor of 50% with 15,000 miles. for 36 mos. Mo. payment is $491.19. No out of pocket and no trade-in just the $1250 cash applied. I think this seems high based on what I have read others have gotten in this forum??
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