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Ford Explorer Lease Questions

CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
in Ford
Hi everyone. Please use the following discussion to post any questions that you have about leasing a Ford Explorer. Thanks.

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Comments

  • al330ial330i Member Posts: 8
    Can you please provide the money factor and residuals for a 2006 Ford Explorer XLT and Eddie Bauer models. I would lease for 36 months. Please provide residuals for 15k, 12k, and 10.5k miles using a Ford Red Carpet Lease. Thank you.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi al330i. Ford's lease program for the 2006 Explorer seems to vary depending upon what area of the country one is in. In most of the U.S., Ford Credit's base lease rate and residual value for a 36 month, 15,000 miles per year lease of a 2006 Explorer XLT 4WD are 4.0% and 49%, respectively. The numbers for an otherwise identical lease of a 2006 Explorer Eddie Bauer 4WD are 4.0% and 51%, respectively. Ford Credit's residual values for leases with 12,000 miles per year are 2% higher than its 15,000 miles per year residuals and its residuals for leases with 10,500 miles per year are 3% higher. When negotiating your lease on this truck, remember that Ford is currently providing $1,500 lease cash plus an additional $500 Ford Credit Bonus ($2,000 total) on the '06 Explorer right now. This money will help you to negotiate an attractive capitalized cost.

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  • al330ial330i Member Posts: 8
    Thank you.
  • gonecruzangonecruzan Member Posts: 13
    Hey Car_Man, I have a question for you.
    I am looking at leasing a 2006 EB Explorer. I was wondering what the difference in residual is between the V6 and the V8. Any help in this area would be sufficient.
  • richleasequestrichleasequest Member Posts: 4
    Here's what we've got to share so far:
    MSRP 40865
    Due at signing 1424.55
    Monthly 24mo 12k/yr $510
    includes CT sales & prop taxes
    pwr 3rd row
    roof
    dvd
    nav
    luxury
    reverse sensing
    safety canopy Can anyone comment? Thx, Rich
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're very welcome, al330i.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi gonecruzan. All 2006 Ford Explorer Eddie Bauer models have the same residual values, regardless of engine type. The only difference in residuals is 2WD versus 4WD. For 36, 39, and 48 month leases the 4WD version's residual values are 1% higher than the 2WD version's

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hello Rich. You never mentioned the selling price of the truck that you are interested in leasing. This is an important number for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing the price of the truck that you want to lease you don't know how good a price you are getting it for. The second reason is that one needs the selling price of a vehicle that they want to lease is that it is necessary to calculate its lease payment. I would be more than happy to give you my opinion of this deal if you let me know what this Explorer's selling price is.

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  • explorerx4explorerx4 Member Posts: 19,304
    hi rich,
    am also from ct and have looked into leasing from ford(actually did one time).
    i'll just give you my experience, which may be different from yours. property tax is a big deal. when i was quoted payments, the property tax was .0025 (a quarter of a percent) of the msrp per month.
    40k times .0025 = 100. 100 times 12 = $1200 per year. this is way more money than i would pay on a 40k vehicles in my town, and you have to pay that each year of the lease.
    the property tax basis is also calculated from the base msrp, in other words excluding any option packages. property tax usually decreases as the vehicle ages.
    the dealer would not negotiate this.
    when i leased from saab, they just billed me the amount on the property tax bill, and i was able to claim it.
    it might have just been the dealer i was negotiating with.
    also the state sales/use tax is calculated including the property tax portion.
    hope this helps.
    2023 Ford Explorer ST, 91 Mustang GT vert
  • tiger93tiger93 Member Posts: 57
    Car_man,

    Please post the November MF and Residual percent from Ford Credit for the 2006 Explorer 4x4 (Eddie Bauer) for 3yr/15k miles. Also, what does FMC charge for additional miles?

    Thanks for being such a great resource!
  • gonecruzangonecruzan Member Posts: 13
    Hey Car Man,

    The vehicle I am looking at is a 2006 EB Explorer V8. The MSRP is $35,970. The dealer is trying to tell me that because it is a lease he has to base it on the MSRP price. He came up with $5100 down @ $299/month based on 10k a yr. Does this seem like a good price to you?
  • tiger93tiger93 Member Posts: 57
    It sounds like a horrible deal to me. Yesterday, I was given a quote for a 2006 EB Explorer 4X4 V8 with an MSRP of $38,135. Purchase price is $32800. $477/month for 3yr/15k miles. Due at delivery: 1st month payment, license, tax, security deposit. Located in Minnesota.
  • brian26brian26 Member Posts: 1
    On a 2006 Exp. Limited V8 with Cashmere tri-coat paint, power moonroof, 3rd row manual seat, safety canopy air curtain system, ultimate convenience group, reverse sensing system, chrome step bars, chrome luggage rack cross rails, to lease for 36 months at 12k per year and putting $3,088 total down, dealer came back with $404.79 per month and thats with all taxes and fees built into payments. Is this a good deal? (initially told him i was buying and got him down from $39500 to $36000.
  • tacoman1tacoman1 Member Posts: 6
    Does anyone know about this lease deal. It is on www.fordvehicles.com and is a national promotion. I have never leased and want to understand the total amount of cash that has to be put down. It appears to be around $2000. I just don't know about the taxes(Arizona) and if more than that $2000 is what they want down. Any help would be much appreciated.
  • gonecruzangonecruzan Member Posts: 13
    Ok, I think I have made my deal. I have been quoted what seems to be a great deal. 2006 EB Explorer V8. Options include: 18" chrome wheels, Audiophile 6cd changer w/subwoofer, Trailer Tow Package, Power Moonroof, Reverse sensing system(for the wife), Roof Rails, 3rd row manual folding seat, and rear seat DVD Entertainment System. MSRP is $38,830. The deal he is giving me is $2500 down $329 a month for 24 months and a 10.5k allowance. Any feedback would be great.
  • explorerx4explorerx4 Member Posts: 19,304
    when leasing, try to put down as little cash as possible.
    look at it this way, 329 24 months is ith 2500 down, is pret much the same as 440 a month with zero down. i konw some fees are included with the 2500 down. i am just trying to make a point.
    2023 Ford Explorer ST, 91 Mustang GT vert
  • paulzimpaulzim Member Posts: 1
    Hello all. My mother is looking at a 2006 EB 4X4 6 cyl. I believe the MSRP is around 32,600. Standard package plus power moonroof. Proposed deal is as follows. Getting employee $2,500 reduction plus I believe $500 for lease loyalty, and $1500 for some other current promotion. Dealer is eating $1,600 in payments and mileage overage on the current trade in (older explorer). (I believe 3 months rent) Rate quoted is 4.29%. $1,000 down for $418 a month with 40,000 miles over 36 month term. Any feedback would be appreciated. Thanks in advance.
  • springs3springs3 Member Posts: 1
    Looking for feedback on this deal....2006 EB Explorer- Has EVERYTHING except navigation. Quoted $330/month (24 months)$2500 down.....looking for help with the buyout figure- dlr came up with $26,000...does this sound close? What are the residuals for 24 month leases? Sticker price $41,600.Any help would be appreciated. Thanks!
  • gonecruzangonecruzan Member Posts: 13
    Hey Springs3,
    That sounds like a very good deal. I am about to get a 2006 EB Explorer 2500 down 329/month with a buyout figure of 23,700. The MSRP is 38,830.
  • norge003norge003 Member Posts: 11
    I just sealed a deal a day ago....leased a Limited (13,500 miles/yr) with pretty much every option but nav/dvd...msrp was $38500...I traded in a '01 volvo cross country with 63,844 miles in good shape and got $14,000 for it....now, I apply for the z-plan as well....not having a good background on leasing, I was quoted $439/mo....I initially said that I didn't want to use my trade-in to finance but then suggested that if I used my trade in to pre-pay for the 3 years in full would that suffice. They said yes and somehow in retrospect I don't think it was a good deal for me....If I got screwed so be it...at least I can learn from the mistake and move on....if the deal was o.k for me then of course I can live with it...can someone please let me know? I live in the Detroit Metro Area.
  • kac3kac3 Member Posts: 1
    New to leasing so I have a question. Is the lease based off the MRSP or can I expect the dealer to base the lease on the actual sales price listed. I am looking at a 2006 EB 4.0L SOHC V6. MRSP is 34,825.00 and they are listing it under the Keep it simple plan for 29,549.00. Before the add went into the paper the dealer quoted me $249.00 a month for 24/10500 miles with 4500 down or 312/mo 36mo/36,000 miles same down. Should I ask him to re quote based on the sales price?
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're welcome, tiger93. Ford's lease program for this truck varies depending upon which one of its regions you are in. In most of the country, if you were to lease a 2006 Ford Explorer Eddie Bauer 4WD through Ford Credit for 36 months with 15,000 miles per year, its base lease rate and residual value should be 3.5% and 45%, respectively. Ford Credit charges an excess mileage charge of $0.15 for miles over lessees' limit at lease-end. If you think that you will go over the 15,000 mile limit that you mentioned, you can always lease with 18,000 miles per year. Ford Credit reduces its 15,000 miles per year residual values by 2% for leases with 18,000 miles per year.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hey gonecruzan. Either there is some sort of misunderstanding here, or the dealer that you are working with is lying to you. The selling prices of leased vehicles are negotiable, just as if you were paying cash for them. In fact, you should be able to lease this truck with a capitalized cost that is equivalent to the prices that are available through Ford's new "Keep It Simple Plan."

    Another problem that I see with this deal is the large down payment that you are considering making. I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your Explorer would be exactly the same, regardless of whether you had put $5,000 down, or had made absolutely no down payment at all.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi tacoman1. Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

    You are right, with the advertised lease that you are referring to, it appears as though $2,000 would be due at lease signing. I am not sure how sales tax is calculated in your state, but in most areas consumers are able to roll sales tax into their vehicle's lease payment if they want to. If this is the case in your area as well, this truck's lease payment would be a little higher once sales tax is factored in, but the amount due at lease signing would remain the same.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi kac3. The selling prices of leased vehicles absolutely can be negotiated. Ford's new incentive program actually makes this an easy time to lease a Ford product. Through its "Keep It Simple Plan," Ford is listing an attractive, non-negotiable, selling price on the windows of all of its vehicles. Make sure that the Keep it Simple Plan price is used as the capitalized cost for the Explorer that you are interested in leasing. You absolutely should ask the dealer that you are working with to quote you a new lease payment based upon this truck's new price. Also, try not to put so much money down when leasing. I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your Explorer would be exactly the same, regardless of whether you had put $4,500 down, or had made absolutely no down payment at all.

    Car_man
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  • docgarydocgary Member Posts: 17
    Car Man -

    Perhaps you an clear this up for me.

    I'm under the impression that the leasing program is for a 2006 EB 6 cyl is
    $1600 down, $299/month x 24 mths with 1,000 miles/month.(24k miles).
    The only add'l expense is +/- $200 for MV and doc fees plus sales tax (6%)
    to be rolled in my monthly payment. 1st payment is also due.
    No bank fee, no security fee, no acquisition fee, no nothin'!

    Since this advertised price is stipulated, I see no reason to negotiate. The only unknown items are added options or upgrades to the base EB model which would be negotiated. In my case, I have a number of dealers looking for a Dark Cherry Metallic, EB, 6 cyl with NO added options for the above price. Some of the dealers attempted to add a $595 acquisition fee but quickly took it off the table when I stated it was a deal breaker.

    Since I have no interest in keeping the car at lease end, I have no interest in the residual.

    Tell me where I'm going wrong?

    Is this a decent deal?

    MSRP - $32800; KISS - 27500; credit score - 760

    TIA
    docgary
  • docgarydocgary Member Posts: 17
    gonecruzen

    Did you get the car for the above cost?
    If you did, its the best deal i've ever seen!
    Was the 2500 all cap cost? Did you pay sec dep,
    acquisiton or bank fee?

    Forthe life of me, i cant find a deal better than:
    EB 6 cyl, no or little options (moon roof or radio upgrade)
    12k miles/month 24 months
    1600 cap cost, 200 aqc fee,
    and $325-345 monthly (inc tax)
  • carfactcarfact Member Posts: 14
    Hello, what is the '06 EB Explorer lease interest percentage rate (money factor) and residual value for the current 24 month lease offer; with 12K and 15K miles a year?

    Thanks.
  • gonecruzangonecruzan Member Posts: 13
    Docgary,

    That is what I paid, $2500 out of pocket and not a penny more. That included my first months lease payment also. So the totals are as follows: MSRP of $38,830. $2500 Out of pocket, not a penny more. $329.66/month for 24 months. However, My commute to work is only about a mile or so, so I went with the 10.5k/yr.
  • carfactcarfact Member Posts: 14
    Did that include sales tax? When does the special 24 month Lease offer for the 2006 EB Explorer end?

    Thanks.
  • gonecruzangonecruzan Member Posts: 13
    carfact,

    Yes that included sales tax. Imagine walking into the dealership with 2500 dollars in your pocket and nothing else. Leaving with a Brand new explorer. that 2500 included EVERYTHING! Including tax, title doc fees, first months payment, you name it.
  • carfactcarfact Member Posts: 14
    Do you have the interest rate (money factor) and residual % used? Also, what was the breakdown of the final purchase price excluding tax? I'm in IL so tax is on the purchase price amount.
  • docgarydocgary Member Posts: 17
    Well, you got an incredible deal!!!

    I just brought my Explorer home-

    24 MONTH LEASE - 1000 MILES/MONTH
    2006 EB 6 cyl. base model - MSRP $33250
    neg price $28600
    residual - $20615 (62%) 24k miles
    (factor=.00125)

    total out-of-pocket-OTD $1600
    total monthly payment-inc tax $345/mth

    $1600 includes cap cost, all MV fees, Doc fees

    No bank, no security deposit, no acquisition/deposition fee

    My deal is OK however yours is the best I've ever seen!

    Carman -any comments on my deal?
  • docgarydocgary Member Posts: 17
    FORGOT...the $1600 included the 1st monthly payment of $345
  • vic74vic74 Member Posts: 3
    Hi all. This was my first lease. You guys know alot more about leases than I do, so I would appreciate your feedback. How did I do for my first time? I KNOW I did not get the best deal, but I do not feel like I was ripped off either (at least I HOPE I got a fair deal). What do you think about this?

    Mountainer Premier Loaded V8 (has everything except the DVD player and navigation)...24 months...$319/month...about a $600 bank fee....$400 sec deposit...plus DMV, etc.

    My total payment is $400/month (because I rolled some of the fees into the payment)...paid them $2300 down...I have the option to buy at lease end for $23k...10,500 miles per year (which I won't go over--I usually drive 6-8k miles per year).

    What should I do better next time?
  • jay34jay34 Member Posts: 1
    I just leased a Ford Explorer XLT 2006 fully loaded. No money down just $1000 for taxes out of pocket expense..$397 month...

    Any feedback??
  • airborne4689airborne4689 Member Posts: 1
    If you dont mind me asking i am in the market for the same truck and i an hesatant for running any more credit inquires from the dealers. I know my credit score is a whopping 584. No real bad things just a lot of inquires. How did you do it, what was your score like if you don't mind me asking. did you do it through ford credit? :)
  • shenaniganzshenaniganz Member Posts: 1
    Is excise Tax included in the monthly payment??
    Are you supposed to pay excise when you don't really own the car your essentially "borrowing" it from them?
    Here's what I was quoted:

    2006 Ford Explorer EB, Full Loaded MSRP 39,325
    Navigation, Luxury pack, Moonroof, Power Pedals, Reverse Sensor, you name it,, just doesn't have the Rear DVD.
    $2700 down which includes First Monthly Payment, Acq. Fee, Down Payment, Doc Fee of a little over $130, Plates & Registration.
    $327/per month 24 Months @ 12,000 miles per year.

    However, there is sales tax & Excise tax (they say) which would bring my payment to about $369 per month.

    Any Thoughts? :sick:
  • gonecruzangonecruzan Member Posts: 13
    Well, first I will say I am not sure of the money factor. my residual price was 62%. My purchase price included tax. Airborne, I will tell you this. Ford Motor Credit uses a ratio system. For evey 6 individuals Ford Motor Credit approves, they will accept 1 individual with horrendous credit. However, they will accept everyone with a co-signer. My credit isn't the greatest however I was approved on the spot. Right now, with Ford's losses, you should have no trouble leasing a Ford vehicle. Let me know how things go.
  • bkstewbkstew Member Posts: 1
    Carman
    I am looking to lease a Explorer. Preferrably an EB, possibly with Nav. I have poor credit, but good cash. I'm looking for a 3 year lease with a payment in the 400's. I would also like to buy some additional miles, at lease 15K a year. Am I in the ballpark ? Thanks.

    BKStew
  • desertratsdesertrats Member Posts: 1
    My wife and I are elderly, and apparently too gullible. We have been paying $530 a month for a 2003 Explorer we purchased, not leased, for 2 years, and have 5 to go. Boy, are we STUPID!!! We have had unexpected health problems and costs, and need to get out from under this payment, which is totaly upside down.
    What are our options???
  • kyfdxkyfdx Moderator Posts: 236,760
    Since your problem is not exactly Explorer specific, you might get more responses by posting here:

    Owe more than it's worth... I'm upside down and I can't get up!

    regards,
    kyfdx
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi docgary. Ford Credit does charge an acquisition fee of $595 on every vehicle that it leases. As you suspected though, I believe that its current advertised lease on the 2006 Explorer assumes that this charge is rolled into the capitalized cost. This lease offer sounds like a very good deal to me, especially since the selling price is based upon the new "Keep It Simple" plan price.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hello carfact. I believe that Ford's lease program for this truck varies depending upon what part of the country one is in. I will provide you with information on what I believe is the more common program. If you were to lease a 2006 Ford Explorer Eddie Bauer 4WD through Ford Credit right now for 24 months with 15,000 miles per year, its base lease rate and residual value should be 2.75% and 60%, respectively. The lease rate for an otherwise identical lease with only 12,000 miles per year would be the same, but the residual value would be 2% higher.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hey docgary. It looks to me as though you got your Explorer for slightly over invoice, which is in line with the "Keep It Simple" plan price structure. If so, you got a good deal. Enjoy your new truck!

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi vic74. The best way for me to tell if you got a good deal on your new truck is for me to take a look at its full MSRP and selling price, in relation to your lease payment. If you let me know what these numbers are, I will tell you what I think. Please post them over in the following discussion though : "Mercury Mountaineer: Lease Questions".

    Since you aren't all that familiar with how leasing works, you definitely should check out the following informative articles that are available here at Edmunds.com: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Congratulations on your new truck, jay34. You never mentioned the selling price or MSRP of the car that you are interested in leasing. These are important numbers for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing this car's selling price in relation to its MSRP you don't know how much of a discount you are getting on it. The second reason is that one needs the selling price and MSRP, including the destination charge, of a vehicle to calculate its lease payment. I would be more than happy to give you my opinion on this deal if you let me know what these numbers are. I also need to know how long this lease is and how many miles per year you are allowed to drive.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi shenaniganz. I suspect that you have to pay both sales tax and excise tax on your leased truck, but tax laws vary from state to state. If you let me know what state you are in, I may be able to provide you with some helpful links about how tax is calculated in your area. Dealers usually don't lie to consumers about tax though. They get in a lot of trouble for doing so.

    The pre-tax lease payment that you were quoted for this truck looks reasonable to me, but I cannot give you a full assessment of your deal without knowing what this truck's selling price is. If its selling price is based upon Ford's "Keep It Simple" plan price structure, which is should be, then you are in good shape.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi BKStew. If your credit was in good shape, you should easily be able to lease the truck that you are interested in for less than $400 a month. It is difficult for me to tell how bad your credit is or how much impact it will have upon your truck's lease payment though. The fact that you have a lot of cash won't really help you with leasing, because it is never a good idea to make large down payments on leased vehicles. I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for the Explorer that you are interested in would be exactly the same, regardless of whether you had put several thousand dollars down, or had made absolutely no down payment at all.

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  • jeevansjeevans Member Posts: 1
    I am looking at a lease of an Explorer Limited with all options including navigation. It is a 3 year lease and 20,000 miles per year. The MSRP is 38350. I was quoted a purchase price of 32535.55 pls tax and title. I then asked for a lease price with 0 down and was quoted $635. What is your opinion on this deal? I am in the Dallas market.
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