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Ford Edge Lease Questions

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  • My dealer does not have any Edges on his lot. I have checked other local dealers and nothing to be found. I have seen the invoices that the dealer has found so far and we cannot find a match or the other dealer is not willing to give it up. My ideal Edge would be a Creme Bruelle FWD with BAMR, Sirius, and reverse sensing. I have compromised up to the AWD. I am ok with a few other colors but the Creme is my first choice. One of the reasons that I want to use this dealer/salesman is the proximaty to my home/office and it is also the same dealership that I am returning my current lease to. I need for them to overlook a few minor issues with my current car. I dont think I will have any leverage if I do not purchase my next car from them.
  • chuck68516chuck68516 Posts: 195
    Bottom line...

    You 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.
  • chuck68516chuck68516 Posts: 195
    That is a common misconception. You can turn your vehicle in almost anywhere. I have turned my leased vehicles in to dealers in another state in one case. My aunt just turned her Chevy in to a Nissan dealer where she decided to lease a new Altima. Also, I have never had any of my leases even looked at when I turned them in. I would look elsewhere.
  • The rent charge was around $2200. What is included in that typically?

    I 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
  • Ok, here is ALL the data I can get off the official Ford Lease Agreement for Virginia. I suspect yours is similar:

    Section 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
  • chuck68516chuck68516 Posts: 195
    Yeah, the document fee was HUGE. My dealer tried to get me to pay $120 documentation fee but I talked them out of it. Obviously ANY fee adds up to a higher payment but that's not the only place where you got hit. Your Rent Charge was $2825.50 and mine was only $342.98. The #13. Official Fees and Taxes is normally just an estimate of how much you would expect to pay in registration fees etc. over the lease term, but it seems like they probably added that in too. I think the Sales/Use/Other taxes must be your property taxes and sales tax which isn't really that much at all. That seems to be actually lower than I anticipated.

    However...
    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
  • agamnyagamny Posts: 8
    Hi guys,

    Thanks 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,
  • chuck68516chuck68516 Posts: 195
    If $32,411.19 is the "sale price" then you are subtracting the rebate and down payment, then adding in an aquisition fee of $595 your
    NET 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.
  • chuck68516chuck68516 Posts: 195
    Larry- I had a chance to really break down your contract and found out exactly what went wrong in addition to the document fee.

    Your 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.
  • chuck68516chuck68516 Posts: 195
    elliemaej- You can have Ford search for your vehicle at this link.

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

    Click Edge then go to Ford Direct Search "Let Us Find The Vehicle"
  • Chuck, the let us find the vehicle option just sends an email to the local dealer, not Ford directly.
    Unfortunately, the inventory site is very outdated.
  • chuck68516chuck68516 Posts: 195
    Within 50 miles of me there are 5 Creme Brulee Edges. What is your zip? I think that is one of the most common colors. It shouldn't be hard to find one.
  • My zip is 06516 but like I said, the ford inventory site is extremely unreliable. I checked the inventory against what was actually on the lots of 5 dealers and the site was waaaayy overstated.
  • chuck68516chuck68516 Posts: 195
    That's weird because when I bought mine I checked the next day and it was off the Ford Direct website. I guess they are getting lazy.

    So I guess the Creme Brulee one at Mantilia Ford is not there?
  • I think you are right.

    I 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
  • I had this issue too. Several of the trucks on my list were not actually there, but in the "Build" process. Apparantly once a vehicle hits a certain stage, Ford adds it to the dealers inventory on the site, which the dealer really has no control over from what I understand.

    -Larry
  • svofan2svofan2 Posts: 442
    I hope someone can shine the light on this. This is my first leasing experience. I leased an Expedition 2005 and it is due in April 08....I am almost decided on an 08 EDGE but how does the termination works,when I wrote the FORD leasing office they simply indicated to go to the dealer I leased from (well they are out of business) at any rate I am NOT willing leave a vehicle at a dealer whithout being inspected and get a receipt that all is ok. My son finished an Audi lease and they came to his house did an inspection got a receipt and THEN they told him that he had 30 days to turn into any dealer....anyone knows how FORD works this out...thanks
  • chuck68516chuck68516 Posts: 195
    Personally, I have traded all but one of my Ford leases in early and to different dealers, one being out of state. In all cases they gave me a trade-in value just as if I was trading in a car that I owned. Since you are going through Ford Credit they can see what your pay-off is and go from there. Just make sure you get the paper work that says "Payoff Verification Statement" or something similar. I have never had any problems with them even looking at my old leased vehicle. That's why I never get the WearCare, they don't seem to give a darn what condition you return it in as long as you are leasing another vehicle.
  • agamnyagamny Posts: 8
    Hi Chuck,

    Thanks 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
  • chuck68516chuck68516 Posts: 195
    No problem, if you come up with more numbers, I'd be glad to calculate them for you.
  • No, it is not there. I literally live around the corner from that dealer and they only have 1 left on the lot even though the Ford site says they have 4 or 5. It makes the process very frustrating.
  • hardhawkhardhawk Posts: 702
    Perhaps the Creme Brulee one shown is in transit to the dealer? My dealer got 2 new Edge's delivered yesterday, so the 2007's are still in the pipe. Never hurts to give them a call about it.
  • I want a 2007 SEL+.Dealers have them with options for$30355.00 plus $705 destination=$31,060.00. I want a lease for 36 months,12000 miles per yr, and $1500 down.I live in South Florida and there are rebates etc,and our tax rate is 6%.When I use the Ford site-it states all these numbers-"bonus cash$1500,JD retail CC Aug.release-$1500,JD 36360-$1000-adjusted price $27,060.00. What is this about-purchase or lease? Would someone please help me.I don't "get" the computations that you have in those lease articles.Thanks so much.
  • svofan2svofan2 Posts: 442
    ..purchase or lease?....maybe you are talking about the type of lease,let me explain in the NY ,NJ,CT area we have a Ford type of lease (it must have a name) that when you lease you are actually "buying" the vehicles (I have my 05 Expedition registered in my name) at the end of the lease you can return,sell or buy the car. Someone explain that Ford and some other companies are doing this in our area because in accidents and similar situation the Ford leasing company winds up being sued since they have the deeper pockets....and this type of lease eliminates them from such situations....maybe that is the answer...good luck to you
  • svofan2svofan2 Posts: 442
    I have my first lease (Ford 05 Expedition) ending in April 08 and I am getting an 08 EDGE (my plans). I know all the reasoning behind the leasing vs the buying but are we really saving money on leases?.....is this another marketing ploy in place to make us buy more than we can afford?...or is it really a good deal for most of us leasing?....
  • chuck68516chuck68516 Posts: 195
    The rebates depend on the zip code you enter. Since you didn't post one it is hard to say what your incentives actually are. However, RCL is the abbreviation for Red Carpet Lease.
    If 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.
  • chuck68516chuck68516 Posts: 195
    Here's how you figure your monthly payment based on the info you provided. MSRP $31,060
    minus 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.
  • chuck68516chuck68516 Posts: 195
    That is one of the age old questions. What came first the chicken or the egg? And what makes more financial sense, buying or leasing?

    To 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.
  • agamnyagamny Posts: 8
    Thanks Chuck. I will be signing the agreement tomorrow. I think the numbers that I was quoted were for 10,500 mi/yr. Should I negotiate for 12,000 on the same price. Is that even possible.
    Thanks again. Will let you know how it went.
  • chuck68516chuck68516 Posts: 195
    The 10,500 miles adds 1% to the residual value. It should only raise the monthly payment by $10 or so if you were to go with the 12,000. See if they will honor the 10,500 price on the 12,000.

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