Ford Fusion Lease Questions

Michaell · April 2014

@gride619 said:
Can you confirm current California residual on a Fusion Energi Titanium is 52% at 36 months and 10.5k/year and 50% at 39 months and 10.5k/year?

The numbers I have for April show the residual for 36mo/10.5K as 51% and for 39mo/10.5K as 49%

dmaz481 · April 2014

Dealer finally sent me a print of of exact numbers, any one have any thoughts or know if there is more room to manover, or what u think about these numbers

MSRP 30,095.00
L.E.V RT/AMT 54% $ 16,251.30
Term 36
APR.25000%
Selling Price $26,724.71
Rebate $750
Trade allow $2,400
Capped Fee $645
Total taxes 1,694
Adjusted Cap Costs: 24,977.31
Lic Reg $48.00
upfront fees 398.00
ammount due at start 2,400
working cash 2400
base monlty rental 246.65
State excise tax base 23,935
state excise tax .1225% $29.32
monlthy use 6.2500% $17.25
Total Payment $293.22

Michaell · April 2014

@dmaz481 said:
Dealer finally sent me a print of of exact numbers, any one have any thoughts or know if there is more room to manover, or what u think about these numbers

MSRP 30,095.00
L.E.V RT/AMT 54% $ 16,251.30
Term 36
APR.25000%
Selling Price $26,724.71
Rebate $750
Trade allow $2,400
Capped Fee $645
Total taxes 1,694
Adjusted Cap Costs: 24,977.31
Lic Reg $48.00
upfront fees 398.00
ammount due at start 2,400
working cash 2400
base monlty rental 246.65
State excise tax base 23,935
state excise tax .1225% $29.32
monlthy use 6.2500% $17.25
Total Payment $293.22

When I plug in your MSRP and Adjusted Cap Cost, I get a pre-tax payment only .03 different than the dealer, so that part checks out.

I cannot comment on the excise tax - that must be something specific to the state you live in.

Overall, it looks like a really good deal .. hard to lease cars with a $30K sticker for under $300/mo with tax.

The only question is ... which color do you prefer?

dmaz481 · April 2014

Tuxedo Black.. If i do 13500 Miles it becomes 284.10 a month. So is the Adjusted cap cost what i am paying for the car and what the monthly payments are based off of?

Michaell · April 2014

@dmaz481 said:
Tuxedo Black.. If i do 13500 Miles it becomes 284.10 a month. So is the Adjusted cap cost what i am paying for the car and what the monthly payments are based off of?

Yes, the adjusted cap cost is one of the numbers used to calculate the pre-tax portion of the payment.

gride619 · April 2014

Michaell I've got one more for you. Please confirm that current lease rate (at least through FMC) is 1.25 APR @ 36 months in California. I have a dealer that insisted it was 2%, but on the second go around of negotations said he could do 1.75%.

Michaell · April 2014

@gride619 said:
Michaell I've got one more for you. Please confirm that current lease rate (at least through FMC) is 1.25 APR @ 36 months in California. I have a dealer that insisted it was 2%, but on the second go around of negotations said he could do 1.75%.

36 month lease rates (FMC):

Fusion - .25%

Fusion Hybrid - 3.75%

Fusion Energi - 1.25%

gride619 · April 2014

@dmaz481 said:
Dealer finally sent me a print of of exact numbers, any one have any thoughts or know if there is more room to manover, or what u think about these numbers

MSRP 30,095.00
L.E.V RT/AMT 54% $ 16,251.30
Term 36
APR.25000%
Selling Price $26,724.71
Rebate $750
Trade allow $2,400
Capped Fee $645
Total taxes 1,694
Adjusted Cap Costs: 24,977.31
Lic Reg $48.00
upfront fees 398.00
ammount due at start 2,400
working cash 2400
base monlty rental 246.65
State excise tax base 23,935
state excise tax .1225% $29.32
monlthy use 6.2500% $17.25
Total Payment $293.22

It's like pulling teeth for me to get them to send the numbers. Closest dealer with what I want in stock is close to a two hour drive for me and I refuse to drive that far to haggle at the dealership.

I'd get an explination on your Capped Fees, Upfront Fees and total taxes. With a state tax of 6.25% I can't really see how you get to $1694 in taxes unless it's some odd combination of tax on cap cost reductions and residual or somtehing. The other fees sound like fluff (and probably regional ad fees).

dmaz481 · April 2014

@gride619 said:
I'd get an explination on your Capped Fees, Upfront Fees and total taxes. With a state tax of 6.25% I can't really see how you get to $1694 in taxes unless it's some odd combination of tax on cap cost reductions and residual or something. The other fees sound like fluff (and probably regional ad fees).

In my state we pay sales tax and excise tax. I am thinking the tax seems high to you because with ford they actually let you make payments on the excise tax rather than pay it in full up front. if i am wrong please let me know. i still havent made a decision yet. Also i think the tax might be based on the total worth of the vehicle not the negotiated cost. Can I negotiate the fees? I am still trying to negotiate with the dealer as i received a similar offer from another dealer and that car had 1,200 worth more of options for the same price. I dont really need those options but i htink the dealer should match it and drop the price by the same amoutn. since it has less stuff. I would rather have more miles to give me peace of mind.

dmaz481 · April 2014

What is a "Capped Fee"?

Michaell · April 2014

@dmaz481 said:
What is a "Capped Fee"?

Some of the fees and taxes must be paid up front, while others are added into the capitalized cost of the car. The "capped fees" are the latter.

dmaz481 · April 2014

So they are offering to take another 10 off per month as long as i do it by the end of April.. so about 281 for 15k miles, 271 for 13,500. on an 30,095 car? This is a good offer right? Why do you think they are making such a great deal?

Michaell · April 2014

@dmaz481 said:
So they are offering to take another 10 off per month as long as i do it by the end of April.. so about 281 for 15k miles, 271 for 13,500. on an 30,095 car? This is a good offer right? Why do you think they are making such a great deal?

I think they are very good offers. They are reducing the payments in the hope they'll make a sale - remember, they have invested a lot of time in you and they don't want to see that effort wasted.

ashleigh919 · April 2014

Hi, I just want to make sure I'm not crazy that the dealer's numbers are not WAY off here, and I've been going round and round for months now, but my lease on my 2012 Fusion is up in 2 weeks. Plus, now that I'm looking at the numbers more closely after I got excited that the incentives went up this week and my numbers dropped after I was also told orders were closing for MY 2014, I placed my order...

X-plan pricing in NY:

2014 Titanium, AWD Tuxedo with ceramic, sunroof, navigation, driver's assist, and heated steering wheel.

MSRP: $36,565

Cost: $34,185 (net of $438 sun and sound discount adjusted for invoice, $825 destination, and stupid $719 NYC-area advertising that there's no way to get out of)

Adjusted cap. cost before cash out of pocket: $32,435

Adjusted cap. cost: $31,272 ($1,000 RCL returning lessee + $750 RCL cash + $1,163 cash down instead of taxes up-front because you don't get them refunded in NY if anything happens -- I'm a tax attorney, so I swapped taxes for cash, rather than upping my payment more.)

Tax rate: 8.375% (but everything is taxed including the down payment, incentives, etc., and the tax is financed, so it ends up being about $31-$35 a month overall)

For a 36-month lease with 12,000 miles, the residual should be 58% (what I was quoted -- $21,207), and the money factor/APR is 0.25%.

That should make my payment around $320 a month, correct?

$31,272-$21,207 = 10,065

10,065/36 = 279.58

Add the tax back in for $31 a month or so, and that really makes it $310, but in case I messed up the financing charges or something, plus adding in the mileage to go to 12,000, I'm being generous and going to $320 a month.

Then why is the dealer telling me it's $347 a month?

This is also the lowest quote I've gotten, and when the incentives were $1,250 a week ago, I had three similar quotes for more, including one from an auto broker. I just want to make sure I'm not nuts and that my payment should be less. I even popped it into a lease calculator to confirm...

Thanks!

dmaz481 · April 2014

@ashleigh919 said:
Hi, I just want to make sure I'm not crazy that the dealer's numbers are not WAY off here, and I've been going round and round for months now, but my lease on my 2012 Fusion is up in 2 weeks. Plus, now that I'm looking at the numbers more closely after I got excited that the incentives went up this week and my numbers dropped after I was also told orders were closing for MY 2014, I placed my order...

X-plan pricing in NY:

2014 Titanium, AWD Tuxedo with ceramic, sunroof, navigation, driver's assist, and heated steering wheel.

MSRP: $36,565

Cost: $34,185 (net of $438 sun and sound discount adjusted for invoice, $825 destination, and stupid $719 NYC-area advertising that there's no way to get out of)

Adjusted cap. cost before cash out of pocket: $32,435

Adjusted cap. cost: $31,272 ($1,000 RCL returning lessee + $750 RCL cash + $1,163 cash down instead of taxes up-front because you don't get them refunded in NY if anything happens -- I'm a tax attorney, so I swapped taxes for cash, rather than upping my payment more.)

Tax rate: 8.375% (but everything is taxed including the down payment, incentives, etc., and the tax is financed, so it ends up being about $31-$35 a month overall)

For a 36-month lease with 12,000 miles, the residual should be 58% (what I was quoted -- $21,207), and the money factor/APR is 0.25%.

That should make my payment around $320 a month, correct?

$31,272-$21,207 = 10,065

10,065/36 = 279.58

Add the tax back in for $31 a month or so, and that really makes it $310, but in case I messed up the financing charges or something, plus adding in the mileage to go to 12,000, I'm being generous and going to $320 a month.

Then why is the dealer telling me it's $347 a month?

This is also the lowest quote I've gotten, and when the incentives were $1,250 a week ago, I had three similar quotes for more, including one from an auto broker. I just want to make sure I'm not nuts and that my payment should be less. I even popped it into a lease calculator to confirm...

Thanks!

What Incentives went up?? I need to know as I might sign soon!

kyfdx · April 2014

I get $285/mo, plus tax for 58% residual on 36mo, 10.5K/yr. Add $10/mo.+tax for 12K/yr.

dmaz481 · April 2014

does it matter where the dealer puts your trade in value? Should it be under cash cap reduction or Trade allowance. I have to quotes from dealers and they each listed it in a different place.

kyfdx · April 2014

@dmaz481 said:
does it matter where the dealer puts your trade in value? Should it be under cash cap reduction or Trade allowance. I have to quotes from dealers and they each listed it in a different place.

It's the same thing... I'd rather keep the trade out of the lease equation. Have them cut you a check for any equity in your trade.. Simplifies the lease calculations, and less places for them to hide extra fees.

dmaz481 · April 2014

I think I would rather have them keep the trade in, so it lowers my monthly payments. I don't want a check as i am afraid i will use it for something else. I would rather have lower monthly payments, then have my lease be 75 more a month.

Michaell · April 2014

@dmaz481 said:
I think I would rather have them keep the trade in, so it lowers my monthly payments. I don't want a check as i am afraid i will use it for something else. I would rather have lower monthly payments, then have my lease be 75 more a month.

While I understand why you want to do that, please remember that if your car is stolen or totaled during the lease, you would be out that money.

dmaz481 · April 2014

I understand that risk. But i think there is more of a risk with me having the money! lol are there any last min tricks the dealers try to pull when u are signing paper work that i should be on the lookout for?

Michaell · April 2014

@dmaz481 said:
I understand that risk. But i think there is more of a risk with me having the money! lol are there any last min tricks the dealers try to pull when u are signing paper work that i should be on the lookout for?

Just double check all the numbers to make sure they match up with what you expect them to be. Take all the time you need.

dmaz481 · April 2014

Im still undecided if i should lease or finance. I have good credit and can get zero percent interest for 60 months. What would save me more per month and get me more since i have to pay a money factor with a lease. How do i figure out exactly how much i am paying in cash for the money factor?

Michaell · April 2014

@dmaz481 said:
Im still undecided if i should lease or finance. I have good credit and can get zero percent interest for 60 months. What would save me more per month and get me more since i have to pay a money factor with a lease. How do i figure out exactly how much i am paying in cash for the money factor?

To calculate the Finance Charge portion of a lease, add the capitalized cost (NOT MSRP) and the residual value together, then multiply by the money factor (take the Ford percentage and divide by 2400). That is your "rent charge" for each month - simply multiply that number by the number of payments to get your total interest paid during the lease.

But, any amount you pay will be greater than the $0 for borrowing the money from Ford.

I did that with GM years ago when they offered 0% financing. Nothing beats free money!

But, with a lease you are only paying for that part of the car you are using (36 months); with a purchase, you are buying the whole car. It all depends on how long you plan to keep it.

ashleigh919 · April 2014

@kyfdx@Edmunds said:
I get $285/mo, plus tax for 58% residual on 36mo, 10.5K/yr. Add $10/mo.+tax for 12K/yr.

Thanks, that's about what I calculated, so even if the tax + the financing fee for the tax came out to about $40 a month, I should be at around $325, not $347, because I am doing 12,000 miles. I'd really like to know where the dealer is getting $347, so I guess I'm going to have to be a pain and call again. The acquisition fee of $625 is paid up-front, the $75 doc fee is paid up-front, and the registration, title, and all of that are as well, so it's none of that.

dmaz481 · April 2014

I feel like waiting until May to see if there are better incentives. Has there ever been a really good incentives on leased ford fusions other than a 750 rebate?

Michaell · April 2014

@dmaz481 said:
I feel like waiting until May to see if there are better incentives. Has there ever been a really good incentives on leased ford fusions other than a 750 rebate?

I can't answer that .. incentives change frequently, though Ford tends to keep their lease numbers intact for 3 months at a time.

The Fusion is a popular model for Ford, so there may not be much in the way of incentives beyond what is already available.

Also, be aware that any deal you have negotiated with your dealer may have an expiration date on it; you may not get the same payment in May as what you were quoted in April. It's a bit of a gamble.

ashleigh919 · April 2014

@dmaz481 said:
I feel like waiting until May to see if there are better incentives. Has there ever been a really good incentives on leased ford fusions other than a 750 rebate?

There have been MUCH better incentives than $750. In March, the incentives, depending on what you are eligible for, were around $2,250, plus a first month's payment. I was mad I was getting the runaround from dealers on pricing and missed out on them. Right now, they are $750 plus $1,000 if you are a returning lessee or $1,000 if you have a competitive lease. There is also the $1,000 Ecoboost challenge, but I'm not sure on the qualifications on that.

When I got my 2012 Fusion in May 2012, the incentives were $2,850 for an SEL AWD (same as the Titanium).

If you're lucky, a dealer will let you buy now and take advantage of better incentives, especially if your car is being built like me. I can take advantage of better incentives any time between now and delivery, and even if the incentives change in the month of delivery, I'm golden. So if I take delivery on July 1, and the incentives change July 15, I can still take advantage of them!

dmaz481 · April 2014

What do u mean buy now and then take advantage of better incentives? Like if I sign lease today and next week there are new incentives I can get them? They put it on contract?

ashleigh919 · April 2014

They can; it depends on the dealer, and your relationship with the dealer. It also depends on when you take delivery of the car. My car is being built for me, so I'm not taking possession of the car right now. But my dealer said custom orders are now closed for 2014; I was literally the last one.

dmaz481 · April 2014

Has anyone ever negotiated a residual at the end of a lease or had the leasing company make a better offer? I have heard a few instances of this happening, wondering about ford.

Michaell · April 2014

@dmaz481 said:
Has anyone ever negotiated a residual at the end of a lease or had the leasing company make a better offer? I have heard a few instances of this happening, wondering about ford.

Generally, the residual value is fixed; finance companies now purchase insurance in case the actual value is less than the contract residual value.

The one time I bought out a lease (VW) I was offered a promotional finance rate.

Kirstie_H · July 2014

Please continue in our 2014 Ford Fusion Lease Questions discussion.

Ford Fusion Lease Questions

Comments

Helpful Tools

Most popular vehicles