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# Ford Edge Lease Questions

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58195You leased approx $6200 over 36 payments

I leases approx $11,800 over 36 payments

Yet your payment is only about $25 less than mine. Even though I "financed" almost twice as much as you did. Hence, your payment should be around half of what mine was as described in my previous post.

19510I expect PP Tax to be about $600 per year.

Also, I had a typo above when I said at $200 a month, that was only $7200 in payments. I obviously only multiplied 24 instead of 35

Thanks

-Larry7

10Section 1, amount due at lease signing = #8950.

Section 2, Payments = $324.52 X 35.

Section 3, other charges = 0.

Section 4, Total of Payments = $20306.20.

Section 5, Amounts due at lease signing

Capital Cost Reduction = $8625.48.

First Monthly Payment = $324.52

Total = $8950.00

Section 6, How amount due at lease signing will be paid

$7700 Down Payment

$1250 Rebate

$8950 Total

Section 7, Payment determined as shown below:

Gross Capitalized Cost = $36,279.15 broken down as follows:

Agreed Purchase Price = $33,991

Sales/Use/Other Taxes = $1112.15

Title Fee = $10

License/Registation Fee = $41.50

Acquisition Fee = $595.00

Documentation Fee = $529.50 (Yeah, I know. I missed it darnit)

Total = $36279.15

Cap Cost Reduction = $8625.48

Rent Charge = $2825.50.

Total of Base Payments = $11682.72

Payments = 36

Base Payment = 324.52

Section 13, Official Fee's and Taxes = $1226.55

That's pretty much all the numbers.

Thanks

-Larry

195However...

Your Rent Charge was $2482.52 more than mine.

Your documentation fee was $529.50

Total of those two alone was $3012.02 more than mine. I litterally could have had your deal for under $200 per month. The fees add up quick. That's the dealer's game. They lure you in to the office then they start hiding the fees and shove the pen at you and say "sign" "sign" "sign." Before you know it you are S.O.L. You just really have to go over the contract with a magnifying glass to make sure they aren't adding in fuzzy math and made up fees.

Also in Nebraska we pay property tax when we go to register the vehicle at the DMV, it isn't included in our lease payment. It is still $500+ dollars a year depending upon the MSRP, but at least we don't pay interest on it.

Lesson, DON'T EVER, EVER, EVER, put money down. That's the whole point of leasing. Sign & drive. Always waive the security deposit. Heck you don't even have to pay your 1st monthly payment if you don't want to. You could have bought that car for about $400 per month on a 72 month bank loan. After 3 years if it was worth the even the presumed residual, you could have sold/traded it and made your $7700 down payment back.

I recommend reading this link about how to calculate a lease so you will know when the rent charge is way too high.

http://www.leaseguide.com/lease08.htm

Rent charge is ( Net Cap Cost + Residual ) × Money Factor then divided by the lease term

8Thanks for the great posts on this site - I've learned a lot from here.

I have to lease my car within the next couple of days and would appreciate any help. A dealer has quoted me a rate of 407.15/mo (Registration, Taxes, everything inclusive) for a Carbon metallic SEL+ (MSRP incl. dest and del = $34,265). It has the Vista roof, 18", reverse sensing and CDX6 and the lease term is 24 months. Other details:

Down payment = $2000

Rebates applied = $1750

Sale price = $32411.19 (I think this is the price he agreed to sell it for)

Residual 64%

Money factor .03125% which gives an APR of .75%.

Please let me know if this is a decent price/ deal. I have access to an X-Plan pin.

Thanks for your urgent help folks. Please let me know if there are other things I should ask the dealer before I sign this Saturday morning.

Thanks again,

195NET CAP COST would be $29,256.19

Depreciation Fee = ( $29256.19(net cap cost) – $21929.60(64%residual) ) ÷ 24 = $305.27

Finance Fee = ( $29256.19 + $21929.60 ) × .0003125(.75) = $16

—

BASE Monthly Lease Payment = $305.27 + $16 = $321.27

Add in Sales Tax of say 8% (my estimate) = $346.97

This should be your monthly payment based upon the info you provided. Obviously I don't know what else they are putting in to get the $407 such as DMV fees etc. In Nebraska that is not included in a lease. We pay that at the DMV. Just be sure that they don't have a bunch of crap rolled into the other fees. The only legitimate fee is the acquisition fee and perhaps your DMV fees and/or property tax depending upon where you live.

195Your money factor was about 0.0017213 or 4.13% APR. The current Ford Credit lease rate is 0.75%.

I figured that if you would have just had your property taxes ($1112.15) and acquisition fee ($595) and would have gotten the .75% lease rate, your monthly payment would have been $236.56

Your property tax ($1112.15) which I wouldn't have had to pay in MY lease adds up a little but there isn't anything you could do about that except move to somewhere that doesn't have it.

195https://www90.forddirect.fordvehicles.com/

Click Edge then go to Ford Direct Search "Let Us Find The Vehicle"

58Unfortunately, the inventory site is very outdated.

19558195So I guess the Creme Brulee one at Mantilia Ford is not there?

10I went in to the dealer today to get some more breakdown.

In round numbers...

The base lease payment is $246, which includes the sales tax.

The interest per month is $57.

The Property Tax is $20 per month, which is a bonified bargain.

That's where the $324.xx payment comes from.

When I went in to day, I was given access to ALL info except the lease rate, being told it's not computed normally and would not be understandable.

Well, there ya go. The culprit has been found.

I traded in a 2005 Explorer. As you know, SUV's, particularly the Explorer, are truly in harms way when it comes to trade in values these days as are most large SUV's. The book trade on it was $18,000. They were only offering me $15,000, which I simply could not take on a 2 year old Explorer with low miles in mint condition.

I fought for NINE hours on this, and finally got my $18,000.

Now I know why. They got their 3 grand back by jacking up the interest, which I have no doubt they get to keep whatever over .75 they charged.

To be honest, other places (Toyota, Honda, etc...) didn't even want to give me $15k for the Explorer. More like $13k.

In other words, it's possible that things simply came out the way they inevitably would have no matter what I did.

I didn't even think of the interest rate. They hide it from you, and I thought that .75 was the standard.

So, I'm a little smarter, probably the same off financially (maybe a little worse), and know one more thing to watch out for next time

At least I'm making them earn the Doc fee. I'm having THEM do all the paperwork to get my refunds of the warranty and gap insurance on the Explorer.

-Larry

10-Larry

4421958Thanks so much for spending time looking at my numbers. I was unable to reach the dealer today but will do so tomorrow. Thanks again for your help!

Sincere regards,

Agam

195587026442442195If it says ANYTHING about RETAIL or "take retail delivery" it is referring to purchasing. Post your zip if you would like someone to check out your local incentives.

195minus REBATES $1250 (my guess)

minus DOWN PMT $1500

Then add in Acquisition fee of $595 (standard on Ford lease)

Your Net Cap Cost is $28,905

Use the formula below to figure the first part of your monthly payment, the depreciation fee.

Depreciation Fee =

( Net Cap Cost($28,905) MINUS Residual(53%, $16,461)=$12443.20

DIVIDE BY LEASE TERM (36) = $345.64

Next the Finance Fee a.k.a RENT CHARGE =

Net Cap Cost ($28,905) + Residual ($16461.80) = $45366.80

Multiply that by the Money Factor. To figure the money factor take the Ford 0.75% APR and divide by 2400 =0.0003125) So the Rent Charge is $45,366.8 X 0.0003125 = $14.18

Add the two figures together $345.64 + $14.18 = YOUR BASE MONTHLY PAYMENT OF $359.82

Add 6% Sales tax, and your total payment should be $381.40 BASED ON THE NUMBERS YOU PROVIDED AND A FEW ASSUMPTIONS ON MY PART:

RESIDUAL 53%

REBATES $1250

0.75% APR (this will depend on your credit score but this is the best you could expect.)

IF YOUR DEALER ADDS IN ANY OTHER FEES SUCH AS DMV, DOCUMENT FEE, ETC. Your payment obviously will be higher.

The good news is that you should be able to negotiate the selling price down to at least invoice so the payment should actually be lower. I would start negotiating at the invoice price listed on the sticker and go from there.

195To me, leasing is the answer. Here's why.

1. No money down. Sign & Drive.

2. The sales tax is paid monthly (depending on your state)

If I would have bought my Edge I would have had to pay

$2,170 in sales tax. I am going to end up paying

$22.83 per month for 36 months = $821.88 total.

A SAVINGS OF $1347.53

3. If I am buying a $28,000 car with a bank loan of 6%

APR for 72 months, after 3 years I would have paid

$12,746.51 and would still owe $15,253.49 on a car

that would have a trade in value of around $15,000

at best. Also, I may have financed in my SALES TAX

which would put me $2,100 plus interest FURTHER IN THE

HOLE!!!!

My lease after 3 years I will have paid out around

$12,500 but don't owe anything and am not in the hole

on the vehicle's value. So in the long run I am ahead

financially at least $1,347 and I don't have to worry

about some dealer not giving me what my car is worth on

trade-in value.

4. LOWER MONTHLY PAYMENTS. My wife and I both like to have

new cars so who wants a $500 car payment let alone TWO

OF THEM! Our two payments combine to $722 a month.

NOT TOO SHABBY!!!

5. The leased vehicle is always under warranty. EVERY

manufacturer has AT LEAST a 3 year, 36,000 mile bumber

to bumber warranty. What do you do if you bought your

car and at 36,001 something goes wrong. YOU PAY FOR

IT!!!!!! PARTS AND LABOR AREN'T CHEAP!!!!!!!!!!

You can't lease any car and expect to get these results. Try to lease a Honda or Toyota. I had a quote on the 2007 Honda CRV MSRP $27,000 on a 36 month lease with nothing down and my payment was going to be $473 something. YOU COULD BUY THE CAR FOR LESS THAN THAT!!!!!! But on the Fords especially, it is the right way to go. GM is usually pretty good too. My wife's 2006 Hummer H3 lease with ZERO DOWN is only $373 per month on a 36 month lease. For a VERY HIGH DEMAND ride that cost MSRP $33,885. That's pretty dang good if you ask me.

You have to really weigh the actual cost of a traditional loan VS. lease. Sometimes it is better to lease on some cars and sometimes not. I will always lease though, even if it limits my selection.

8Thanks again. Will let you know how it went.

195It's $0.20 per mile if you go over. You might want to keep that in mind.