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Ford Explorer Lease Questions

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  • nwulfnwulf Member Posts: 3
    I just visited my local Ford dealership and the new car manager told me there was no negotiations on buy out of residules on my 04 Explorer. He sez the residual is protected by an insurance policy that will pay part of the sale loss (less than the stated residual) only if the vehicle goes to the auction. 04 Explorer with 28K for a little over $17K +tax. Also no extensions on leases???
    News to me how about you? We negotiated about$24K at lease and my 1pay lease + buyout would be about $28K. Dealer sez the retail price 1s about $19K. HELP ME WITH DETAILS BECAUSE MY LEASE ENDS 12-30-05. I feel stuck. Do I need to see another dealer to negotiate. Dealer also sez they would have to pay the $17 K (residual) the same as I would to get the vehicle.
  • nwulfnwulf Member Posts: 3
    We are at the end of our lease and are considering buying out. Negotiated price at start of lease was $24k,2 YEAR 15k lease was $11K and now the non negotiable buy out is $17K. THAT'S $28K for a $24K negotiation. My dealer new car manager sez "No extensions and NO negotiating". Surprise to me. I've leased for many years and was considering purchase on this one and ending my era (error) of lease.Dealer also sez Ford Credit purchases an insurance policy that protects them partially from sale loses at the auction therefore they don't have to negotiate.Dealer also sez they would have to pay the $17K buy out price to get this vehicle. Sooooo I feel HAD to some degree!!!!! Can you advise me and others??????Thanks in advance.
  • jcat707jcat707 Member Posts: 169
    Are the December lease figures similar? I was at the Ford dealership today and they said that the residual was 50% for 36 months/12k per year, 48% for 36 months/15k and the rate was 3.25%. The truck is an XLT 2WD if that makes any difference.
  • nwulfnwulf Member Posts: 3
    If I still have the story correct, 24 month lease, 15K miles per year=42% of your best negotiated price (would include deductions for rebates, customer loyality-if there is any or any coupons you might have) AND you would probably be subjected to the "SMART BUY PRICE". The buy out (residual) is based on 58% of the sticker (MSRP). All this from a Minnesotan who just quit leasing for now. New cars are fun but the prices are out of control. I've leased for 10 years but am out for now.....
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi nwulf. You definitely should not involve your dealer in your decision about what to do with your truck at lease-end if at all possible. This matter is completely between you and the bank that you are leasing your Explorer through, which is most likely Ford Credit. Dealers certainly don't want you to buy your leased vehicle or to extend your lease. They don't make any money off of you doing either of these things, but they do make money if you purchase or lease another vehicle from them. Place a call directly to Ford Credit and see if they will be willing to negotiate your truck's lease-end purchase price. There is a chance that they will. Even if they won't I suspect that they will at least let you extend your current deal for another couple of months.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi jcat707. Yes, I believe that Ford's lease rate and residual value for the 2006 Explorer are exactly the same in December as they were in November.

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  • cwakefieldcwakefield Member Posts: 18
    Does anyone know the January residual and money factor for a 2006 eddie bauer?
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi cwakefield. I've seen Ford's January lease program for the 2006 Ford Explorer Eddie Bauer and I would be happy to give you an idea of what it is like. I am going to have to make some assumptions though because you never told me if you want 2WD or 4WD, how long you want to lease for, or how many miles per year you need to be able to drive. For now, I will assume that you want to lease a 4WD for 36 months with 15,000 miles per year. Using these assumptions, this truck's base lease rate and residual value should be 3.75% and 49%, respectively. When negotiating the selling price of this truck, make sure to take the $3,000 total in cash incentives that is available on leases of it in most areas right now into account.

    Car_man
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  • jcat707jcat707 Member Posts: 169
    I was just curious, is there a difference in lease rates and residual values between 2WD and 4WD models? I don't want the actual values, I was just wondering in general.
  • cwakefieldcwakefield Member Posts: 18
    Thanks for the info. I am interested in an EB 2WD for 39 months 15,000 miles. I was aware of the $2000 rebate that shows up in consumer reports but I did not know about an additional $1000. We are located in Georgia. Where does this $1000 come from? What are the residual and money factor for January for the above and for a 36 month 15,000. I'm not in a rush... would it be better to wait and buy this car in February or March when there may be better deals? I always heard the best time to buy a car is in March when many companies have their year end.

    Thanks for your info!!!!
    cwakefield
  • jbratxjbratx Member Posts: 40
    What's a decent credit score to have in order to get a good deal on a 2006 Ford Explorer Limited? What credit reporting companies does Ford use?
  • jtyler1jtyler1 Member Posts: 1
    Any viewpoints on the advantages/disadvantages of either vehicle vs.the other by those who have looked and test driven? Many thanks!
  • cwakefieldcwakefield Member Posts: 18
    Car_man,
    We are interested in leasing this month a EB 2WD for 36 or 39 months - 15,000 miles. Do you know what the rebates are for Febuary? Also interested in what the residuals and the money factors are for
    36-15,000
    39 - 15,000
    and 12/15,000
    Really need to do it this month but could hold out till March if there are better incentives coming that you know of.
    Thanks for your info
    cwakefield
  • imariquinnimariquinn Member Posts: 96
    is this a good deal? I am looking at $306/mo for 12K miles or $316/mo for 15K miles. 24 mo lease, $2200 down includes first payment if financing with FMCC.

    MSRP $28870
    Selling Price $28870
    Down Payment $2200
    Net Trade: $1175
    Term 24 mos
    Rebate $2500
    College Grad 0
    Renewal Cash 0
    Bonus Cash $500
    Est Net Selling Price $22495
    Miles per term 24000
    Payment $306

    Newspaper ad reads $275 for 10500 miles, 24 month lease, plus tax tag title with $2200 down and FMCC makes first payment. When I did the credit application online with FORD, it gave me those numbers above and I put my current car as a trade (showing some equity) since the lease is up this month with VW. So more miles payment jumps to $306? 15K miles look better to me. Just wondering how to get the net trade to count towards the $2200 down and get payment to $275, then ask for 12K or 15K miles.


    This is Charlotte County Ford (FL). How does this look?
  • imariquinnimariquinn Member Posts: 96
    Went to dealer, found one Explorer I could possibly live with. Dealer comes off MSRP to $27385. Quotes me $323 + tax per month (12K miles) or $348 + tax (15K miles) for a 24 month lease, including wearcare. $2200 down (includes first month lease payment).

    How much is "wear care" per month usually? is this mandatory (dealer says yes). Since the MSRP is less, how come we cannot get to that $275 + tax per month advertised with 10,500 miles? is 1500 miles equal to $50 more dollars a month?

    Carman: what are the residuals and money rates for feb on the 12K & 15K Explorer XLT 2WD. Thanks!
  • stevenmorstevenmor Member Posts: 13
    It seems so to me. Here are the details:

    2006 Explorer Eddie Bauer with a sticker ~ $36,000

    With tax my deal is $350 per month for 24 months with 10500 miles per year (which is okay with me). $600 down for bank fee and tags, and they make the first month payment for me. No other cash out of pocket.

    Any opinions?
  • jcat707jcat707 Member Posts: 169
    I think WearCare is just a flat price like $495 or something instead of a monthly fee. At least that's how it was when we leased our Taurus back in 2001. Instead security deposits, our dealership made everyone get WearCare. It was pretty cool because it covered up to $2500 worth of excess wear and tear costs at the end of the lease. I'm not sure if it covered excess mileage though.
  • icechunkicechunk Member Posts: 5
    Is this with tax? Looks good for no money down. Eddie Bauer is Nice!!
    :)
  • imariquinnimariquinn Member Posts: 96
    steve your deal sounds sweet, the eddie bauer is MUCH nicer than the XLT's I looked at.

    I wish I could get the expedition, i am just not moved much by the explorer.... still sitting on the fence.

    i don't want to give them any down. Can you break down your numbers for me? I can at least try to get a better deal. what price did you get them down off msrp and did this include the $3000 rebates, etc.

    thanks!
  • stevenmorstevenmor Member Posts: 13
    I picked it up yesterday and I love it. I don't have my paperwork with me, but I'll explain what I can.

    Ford is offering a $299 per month 2 year lease on the Eddie Bauer (at least in my region, Philly). This is based on a MSRP $33K Exp EB, with no money down (except to bank fee or whatever they call it which was around $600).

    My vehicle stickered at $35K, which brought the payment up to $325, and with tax and crap up to $350.

    It's nice that Ford also picks up the first months payment. So in reality, the lease winds up costing $8050 (23 x $350) / 24 = $335 per month if you average.

    I actually wasn't in the market for an Explorer, but when I saw this deal advertised, I decided to go to the dealer for a test drive and to see if this was for real. I have to say that I was pleasantly suprised by both the vehicle itself and the deal, as well as the dealership.

    If you want me to post the details later, let me know and I can post them when I get home.

    Steve
  • cwakefieldcwakefield Member Posts: 18
    Sounds like a good deal. If you could post the details like MF and Residual.... incentives that would be great. Looking at roughly the same thing.... I think the sticker we are looking at is 38.000 so I'd like to do the calculation before we get to the dealer. Also would like to see what a 36 and 39 would give me.
    What type of miles is allowed in your lease.

    Thanks!!
  • stevenmorstevenmor Member Posts: 13
    The miles are 10500 per year, which is fine with me.
  • imariquinnimariquinn Member Posts: 96
    yes, please post the details so I can relay to my salesperson down here in florida. It won't hurt to ask for that deal even if it is out of the region. Glad to know you are enjoying your new ride. Thanks!
  • stevenmorstevenmor Member Posts: 13
    Some of this contract is confusing, but I'll do my best to post it.

    The MSRP was just above $35080 for the 2006 Explorer EB 4x4 in black.

    Gross Cap Cost = $34369.88
    Cap Cost Reduction -5389.83 (This was from the dealer, not my pocket)
    Adjusted Cap Cost = $28980.05
    Residual Value - 21398.80
    Depreciation = $7581.25
    Rent Charge = $125.15
    Total Base Monthly Payment = $321.10
    Sales Tax/Use = $28.90
    Total Monthly Payment = $350

    My only mandatory out of pocket up front was $650.25 for bank fees, tags, etc. I optioned to take the wear care and pay that up front as well.

    They made my first month payment.

    My lease is for 10500 miles per year, 24 months.

    I hope this helps.
  • tachidatachida Member Posts: 3
    Have a Ford ad in front of me that advertises a 2006 EB4x4 lease for $299/mo,24 mo Red Carpet Lease with 0 due at signing. Security Deposit, 1st months payment and down payment waived. Excludes title, tags and registration. Any comments or info on same out their. It would be appreciated. Seems to good to turn down. Thanks
  • cars4mikecars4mike Member Posts: 18
    ... Or do they just get you to the lot with that one, and then work you over. I've never leased before and was considering a KIA Sorento purchase when I saw the lease ad and your discussion. Went sour on Ford fan after the zillion problems with my wife's Windstar from start to finish. However, this deal looks excellent and worth a look. The Edmunds Explorer review is pretty favorable as well (except they say "lousy fuel economy", which is strange because the KIA gets the same mileage and is termed "mediocre fuel economy"). Any comments/suggestions would be greatly appreciated.
  • stevenmorstevenmor Member Posts: 13
    This is the same deal that I got. The only difference is that the ad price is for one with a $33k sticker, mine was $35. The $299 winds up around $325 with tax. The only money needed up front is the bank fee or whatever it's called.
  • dmjjpydmjjpy Member Posts: 11
    Does anybody know if this deal is availabe in the Seattle WA area?
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hey jcat707. I think that Ford Credit's lease rates for 2WD and 4WD versions of the same truck are usually the same, but their residual values are different.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi cwakefield. In your area right now, Ford is providing $2,000 lease cash plus an additional $500 bonus for going through Ford Credit ($2,500) total on the 2006 Explorer Eddie Bauer right now. This money will help you to negotiate an attractive capitalized cost for your lease. In addition, Ford is waiving the first month's lease payment for '06 Explorers this month.

    If you were to lease a 2006 Ford Explorer Eddie Bauer 2WD through Ford Credit in your area right now for 36 months with 15,000 miles per year, its base lease rate and residual value should be 3.75% and 48%, respectively. The numbers for an otherwise identical 39 month lease should be 4.0% and 47%, respectively.

    I don't think that the lease program on this truck will be much different in March than it is now, but you never know for certain until the official program is released.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi jtyler1. This specific discussion is for community members to ask questions about leasing a new Ford Explorer. You will probably have better luck getting feedback on the advantages and disadvantages of the Explorer versus the Mountaineer by visiting the following discussions: "Ford Explorer/Mercury Mountaineer" and "Ford Explorer/Mercury Mountaineer 2006+".

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hey cwakefield. I don't think that I mentioned this in my earlier reply to your question, but Ford Credit's 12,000 miles per year residual values are 2% higher than its 15,000 miles per year residuals.

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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi imariquinn. It looks to me as though you are paying full MSRP for the Explorer that you are considering leasing. Always remember that the selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. You definitely should be able to negotiate a decent discount on this truck, on top of having the cash incentives that are currently available on it subtracted from its price. There is over a $2,400 spread between the full MSRP and dealer invoice price of a base 2006 Explorer XLT 2WD, so you have a lot of room to work with. If the dealer that you are currently in negotiations with will not lower your truck's price, shop around and find one that will.

    Also, I notice that you are considering in making a down payment and trading in a vehicle on your lease. 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 $3,000 down, or had made absolutely no down payment at all. You can still trade your current vehicle in when leasing your Explorer, just have the dealer that you are working with cut you a check for it instead of using the proceeds as a down payment on your lease.

    Car_man
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  • walkolifewalkolife Member Posts: 7
    Is there any way to reduce the residual? I bought a new explorer, which I want to keep, but had to do a lease deal to keep the payment in check. The msrp was 34k. I talked them down to 29k with a monthly payment of 372. My residual is about 17k. I am unsure how the 29k truck price gets factored into this. thanks!
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    In response to your second post, if you were to lease a 2006 Ford Explorer XLT 2WD through Ford Credit in your area right now for 24 months with 12,000 miles per year, its base lease rate and residual value should be 2.5% and 60%, respectively. The rate for an otherwise identical lease with 15,000 miles per year would be the same, but the residual value would drop to 58%.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi cars4mike. the new Explorer is supposed to be a very nice truck. When negotiating a lease, always remember that consumers are always free to lease any vehicle they want without making any sort of down payment. The only things that most leases require consumers to pay at lease singing are your vehicle's first month's payment, a security deposit equivalent to that payment rounded up to the nearest $25 or $50 increment, the bank's lease acquisition fee, and any sort of required state taxes or fees. Ford is waiving the first month's payment at no charge on all 2006 Explorers this month, so you don't have to worry about that and you can roll Ford Credit's $595 acquisition fee into your truck's capitalized cost so that you don't have to pay it at lease signing if you want.

    Let me know if you have any other questions about leasing this truck and I'll try to help you out.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi walkolife. Once you have finalized your lease, there is no way to alter its terms. Don't worry though because a high residual value is actually a good thing. The higher your vehicle's residual value is, the lower its monthly lease payment will be. At the end of your lease, you can decide if the purchase option price is in line with what you would have to pay for one on the open market. If not, just walk away from it and take comfort in the fact that Ford has paid for some of its depreciation for you. If the price is reasonable, but it. As an added bonus, some banks are actually willing to negotiate the lease-end purchase prices of vehicles. While there certainly is no guarantee that Ford credit will lower your Explorer's price at the end of your lease, ask them. It's worth a shot and if they do you make out like a bandit.

    Car_man
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  • imariquinnimariquinn Member Posts: 96
    Carman, thank for for the numbers, will the base lease rate AND residuals be the same on the EDDIE BAUER 4x2's.

    Say MSRP is $34K, Purchase price is $28K, minus $3000 in rebates. 24 month lease 0 down, $299/mo.

    thanks
  • imariquinnimariquinn Member Posts: 96
    Found this online, could work for those in other areas looking for the deal. I used it to try and work on my dealer. Still waiting (closed on Sundays).

    $299/mo, 24m, 0 down on 2006 Eddie Bauer Explorers
  • walkolifewalkolife Member Posts: 7
    thanks car man! I only learned AFTER the fact that residual is based on MSRP.

    I intended on BUYING this truck, so I got them down on the price (29.1k). Then, when the monthly payments were coming in over $450, I had no choice but to lease it (@ $372). I put nothing down. Do you know how the price of 29,100 (my negotiated figure) comes into play with this lease deal? I feel like I am paying FULL MSRP for this truck and that I did not get the good deal I thought I did. thanks again and hope you have some good news for me. Tell it to me straight, I need to hear the truth!
  • cj_hottie_calicj_hottie_cali Member Posts: 1
    What are the differences between the EB and the Limited Explorer? What is the best deals as far as leasing goes?

    Thanks! :confuse:
  • sonny_k9sonny_k9 Member Posts: 15
    I emailed a few DC area dealers and was told by at least 2 of them that this is a standard lease deal by Ford. This looks really good!!
  • imariquinnimariquinn Member Posts: 96
    i am finding resistance here in florida, dealers claim not in this region. i cannot find another dealer other than elway or courtesy which of course Colorado is not close by, lol. anybody in the SOUTH getting this $299 a month WITH 0 down for 24 months on the 4x4 or is this regaion i.e., only in the areas that NEED 4x4's. i do not want the 4x4, but will take one for this deal, otherwise getting quoted 24 months $400 a month before tax, uh uh.

    edited to say I just saw the $279/mo 24 mos with $995 down offer on the XLT advertised nationally i guess on the WEATHER CHANNEL.
  • baggs32baggs32 Member Posts: 3,229
    Hi Car_Man,
    Would you be able to give me the monthly payments on a 2006 EB Explorer V6 4X4 with a sticker of $38,615 and a negotiated price of $35,215 (I'm losing $3k on a trade)? This is in the Pittsburgh area, and I'm looking to put no money down. 24, 36, or 48 months with 10k or 12k miles per year. We only need 10k but I was told that you can't do 10k around here, is that true? Oh, I'm an X-Plan customer and the negotiated price is based on the X-Plan price.

    Are the lease rates any good on Limited models too?

    Thanks!
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're welcome, imariquinn. If you were to lease a 2006 Ford Explorer Eddie Bauer 2WD through Ford Credit in your area right now for 24 months with 15,000 miles per year, its base lease rate and residual value should be 3.75% and 48%, respectively.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    No problem, walkolife. Yep, the residual values of leased vehicles is always based upon a percentage of their full MSRPs, including any options that can be residualized and the destination charge. The selling prices of leased vehicles are very important as well because they help determine how much interest you pay over the length of your lease. If the dealer that you are working with used the same discounted selling price that you had negotiated to purchase this truck as the capitalized cost for your lease, you did just fine.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi cj_hottie_cali. You should be able to find out the difference between the two trim levels that you are interested in, price- and option-wise, by visiting the following section of this site: Edmunds.com New Vehicle Pricing. The least expensive Explorer to lease will probably be the one with the lowest selling price, but as far as incentives and lease support go the XLT is probably the best deal right now.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Greetings baggs32. According to my calculations, if you were to lease a 2006 Ford Explorer Eddie Bauer V6 4WD with an MSRP of $38,615 and a selling price of $35,215 through Ford Credit right now for 24 months with 12,000 miles per year, its zero down, pre-tax lease payment should be around $508 ($492 with 10,500 miles per year). The payment for an otherwise identical 36 month lease should be $477 ($467 with 10,500 miles per year). And last but now least, the payment for an otherwise identical 48 month lease should be $471 ($464 with 10,500 miles per year). You should be able to do a 10.5K lease through Ford Credit if you want to. The lease rates that I used to calculate these payments should be the same on a Limited 4WD model, but the residual values would be different.

    Car_man
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  • imariquinnimariquinn Member Posts: 96
    are you finding any info on the $299 for 24 months, zero down with 10,500 miles per year lease on the Eddie Bauer 2006 Explorer??

    thanks for your help.
  • baggs32baggs32 Member Posts: 3,229
    Thanks a bunch Car_man! We just had our second child about a week ago and I'm toying with upgrading to something bigger than our Escape. I've driven the new Explorer EB and it really is pretty darn nice. Now I just have to convince the wife. :sick:
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