2013 Explorer Limited Lease Numbers (2/23/2012)

[Asystole]

The dealer called me to tell me that Ford released the lease figures for the 2013 Explorer today. Here's what he gave me for the car I ordered this past Saturday:

Residual: 62% based on 15,000 miles per year, 24 months
Add 1% for every 1,500 miles LESS you want (10,000 miles per year, 24 months, would be a 65% residual)

Money factor for the same vehicle, 24 months = 0.00246 (5.9%)

I ordered the Limited, V6 3.5L 4WD, and the 302A option pkg, sun roof, and DVD headrests, roof rack cross bars, and all weather mats, though the options don't change the numbers.

I have an X-Plan price of $47K, the MSRP is $50K. I'm putting down between trade (2010 Volvo XC60 T6 AWD) and cash a total of $13,450 (max permissible under the lease) and will have a monthly payment of $402.

Hope this is helpful

 

[NEWPORTNJ]

I have a 2011 fully equiped 302a 36 month lease 10k per yr only $ 4.000 down and i pay 475 per month !!

 

[drober30]

I'm putting down between trade (2010 Volvo XC60 T6 AWD) and cash a total of $13,450 (max permissible under the lease) and will have a monthly payment of $402.

Hope this is helpful

Are you really going to spend $13k to lease a vehicle for 2 years at $402 a month?

 

[vulnox]

That does seem odd. Granted mine is an XLT 4x4, but it had most of what you could get on one putting it over 40k MSRP.

For 24 months at 12,000/yr and 0 down I am at $500/mo. I actually had to add $750 because we traded in our 2010 Fusion towards getting the Ex and I owed a bit more than they gave me.

Over the course of 24 months that comes out to me paying $12,000. If I had your money down, I would be able to pay off the entire lease without any monthly payment.

Again, I understand yours is a Limited and all that, but still, even if you add another $10,000 I am pretty amazed you still are paying more than maybe $200-300 a month with that money down.

Edit: Maybe its the money factor. Mine was something like 1.9%. I don't think I would be able to stomach 5.9% (personally). At the time it was a toss between the Ex or an Edge, the Edge had something like .6% money factor because of a big special they had moving out the 2011's.

 

[Huntpsu1]

Be careful of putting large down payments on leases. If the car gets totaled, you may lose all invested "equity". My wife had an Infiniti lease and the car was caught in a flood. The insurance co deemed it totaled. We originally thought the insurance proceeds were going to net us a few grand back because the car value was greater than the lease payoff. Turns out that there is a clause in the lease that says Infiniti gets all insurance proceeds in event of a total loss. Not sure what Ford's contract states.

Also agree that 5.9% seems high for a 2 year lease. Did you check around to find the true "buy rate"? The dealer can turn a profit on the diff it charges you and the "buy" rate from Ford Motor Credit.

 

[new to ford]

I'm putting down between trade (2010 Volvo XC60 T6 AWD) and cash a total of $13,450

how much are they giving you straigt out for the trade? how much of that $13.45K is cash?

 

[Broheim]

A 2010 Volvo has to be worth more than $13k by itself, no? I got almost $13k when I traded in my 2007 Mazda 3 for the Explorer. Seems like you might be getting ripped off.

 

[peterk9]

Just curious to see if any of you who are leasing have checked to see if Ford (U.S.) has a refundable deposit policy.
Here, in Canada, I put down the maximum of $6250 based on the vehicle cost and that reduced the lease rate by 1.5%, from 4.99% to 3.49% for 48 months. At the end of the lease you get your $6250 back. The salesman wasn't aware of this program until I had him check into it. I did the same with the last two leases on my previous Highlanders.
I have posted this info before but have never had anyone reply as whether or not Ford offers it in the states.

Peter

 

[suzook]

My 2012 xlt 4x4 with all options, sticker at $45k is $395 a month, and $4k total out of pocket. Your deal seems terrible. Go to another dealer.

 

[Asystole]

It's important to compare apples to apples.

If you spec-out the car as I have ordered it, the MSRP is $50,080. The x-plan brings it down to a little over $47K. Comparing a 2012 XLT to a 2013 Limited is not an apples to apples comparison, especially since the residuals and money factors are different, as are the deltas for 24 versus 36 months.

The 2013 Limited residual is the best if not one of the best residuals available in the market for any car, anywhere. At issue is the money factor (APR is the money factor X 2400 ). The 2012's have much better financing at the moment as well as incentives because Ford is trying to clear their inventory for the 13's. For example the 2012 Explorer enjoys 0.9% purchase financing or 0.5% effective APR for leases, plus $1000 incentive, plus other incentives based on location help to make the down payment and monthly payments smaller. I am approved for Tier 1 (the best) financing through Ford.

My Volvo has not yet been appraised, but Blue Book shows it around $30K (has 40K miles on it, but has every possible option). The payoff on it is currently $24K.

I will check with another dealer to see if there is anything to be done with the money factor.

 

[vulnox]

It's important to compare apples to apples.

If you spec-out the car as I have ordered it, the MSRP is $50,080. The x-plan brings it down to a little over $47K. Comparing a 2012 XLT to a 2013 Limited is not an apples to apples comparison, especially since the residuals and money factors are different, as are the deltas for 24 versus 36 months.

The 2013 Limited residual is the best if not one of the best residuals available in the market for any car, anywhere. At issue is the money factor (APR is the money factor X 2400 ). The 2012's have much better financing at the moment as well as incentives because Ford is trying to clear their inventory for the 13's. For example the 2012 Explorer enjoys 0.9% purchase financing or 2.9% effective APR for leases, plus $1000 incentive, plus other incentives based on location help to make the down payment and monthly payments smaller. I am approved for Tier 1 (the best) financing through Ford.

My Volvo has not yet been appraised, but Blue Book shows it around $30K (has 40K miles on it, but has every possible option). The payoff on it is currently $24K.

I will check with another dealer to see if there is anything to be done with the money factor.

It is basically an apples to apples comparison because when the vehicles we describe were purchased, they had very similar numbers behind them. It just doesn't make sense to me that my total lease is costing me $12,000 as I mentioned, but you putting down $13,500 still nets you a $400/mo payment. That means you will effectively pay $23,100 over 24 months for a Lease.

I just don't understand how your lease is almost double the cost of my Lease, for what works out to be a $7000 difference in vehicle costs, without you either taking a terrible money factor (which I believe 5.9% is), or the dealer slipping something else in there.

I know mine isn't a 2013, but if you consider that I got my 2011 when 2011's were just making it to the lots, and were actually very hard to find, and you are getting a 2013 when 2013's are making it to production, the dates may not be equal, but the situation is.

You say it isn't apples to apples, and you can believe that, but take that out of it and just look at it logically and it looks wrong.

Nobody is trying to knock you for it, it is just looking out for your best interest since you have nothing to lose by listening to what is said here. Not like you are trying to sell the car.

 

[drober30]

X plan is about $200 above invoice. Shop your trade at as many Ford dealers as you can and go with the best price.

With that much money down, I woukd look at owning the vehicle and find a low interest rate from a credit union or bank for 72 months.

 

[Asystole]

**UPDATE**

Dealer was giving incorrect info to me. The lease APR is 2.9%.
He did, however, give the correct payment amount, so nothing has changed.

My total out of pocket by lease end is $22,696. Unfortunately, there are no incentives available for the 2013 models. If I waited six months or so to get a 2013, there would undoubtedly be incentives and lower lease rates, but the residual will have decreased as we approach the introduction of the next model year car. Such are the costs of being an early adopter.

If I were to finance the car instead, a 60 month APR of around 3% ( www.Bankrate.com ) with the same down payment leads to an out of pocket by loan-end of $50,160. Of course, I would then own outright a five year old car which would have been out of warranty for two years (warranty is only 3 years on these cars), and has a value of between $15K and $17K (edmunds.com appraisal for a 2007 Explorer Eddie Bauer 4x4 with 6 speed transmission and all options). Not to mention, the car will be five years behind the times in terms of safety and technology features, and doesn't include repair costs incurred in the final two years of the loan after the warranty expires.

I'll stick with the lease. I'm in a new car every two years, I'm always covered by warranty, and I'm not too far behind the times tech-wise by lease end.

For example, I like the lane departure features of the 2013; they've been in Volvos for several years -- my XC60 has it, and I've come to appreciate it. If I leased a 2012 model, the costs would be less, but I would miss out on this newer tech.

Perhaps Corey (I apologize if I've misspelled) can weigh in?

 

[vig1116]

If you can afford it than it doesn't matter what we think, but.... 2 yr leases are absolutely absurd!!! you're going to pay 22,000 for two yrs when i'm paying 17,000 for my 2011 ltd for 3 yrs. does that make sense? now my numbers were this: sticker 45,950 D plan 41,402 3yr lease for 488/mo with 0 down. now if i remember correctly i estimated $15/mo for every thousand dollars added to the price. so if i paid 6,000 more to make it 47000 like you that would bring my payment to 580, bringing my total to 20,880. thats still a thousand less and i would have the car a year more.... 2 yr leases are the biggest scams car companies have IMO.... they get top dollar for lease and still are able to sell a two yr old car for top dollar.. but like i said in the beginning, if you're happy with the numbers nothing else matters.... good luck

 

[drober30]

**UPDATE**

Dealer was giving incorrect info to me. The lease APR is 2.9%.
He did, however, give the correct payment amount, so nothing has changed.

My total out of pocket by lease end is $22,696. Unfortunately, there are no incentives available for the 2013 models. If I waited six months or so to get a 2013, there would undoubtedly be incentives and lower lease rates, but the residual will have decreased as we approach the introduction of the next model year car. Such are the costs of being an early adopter.

If I were to finance the car instead, a 60 month APR of around 3% ( www.Bankrate.com ) with the same down payment leads to an out of pocket by loan-end of $50,160. Of course, I would then own outright a five year old car which would have been out of warranty for two years (warranty is only 3 years on these cars), and has a value of between $15K and $17K (edmunds.com appraisal for a 2007 Explorer Eddie Bauer 4x4 with 6 speed transmission and all options). Not to mention, the car will be five years behind the times in terms of safety and technology features, and doesn't include repair costs incurred in the final two years of the loan after the warranty expires.

I'll stick with the lease. I'm in a new car every two years, I'm always covered by warranty, and I'm not too far behind the times tech-wise by lease end.

For example, I like the lane departure features of the 2013; they've been in Volvos for several years -- my XC60 has it, and I've come to appreciate it. If I leased a 2012 model, the costs would be less, but I would miss out on this newer tech.

Perhaps Corey (I apologize if I've misspelled) can weigh in?

I think the power train is 5/60?

Nonetheless, you could buy a ESP extended warranty and be covered for up to seven years.

Thanks for sharing your info and the 2013 features are going to be great!

 

[Spengracin]

Not a good deal, you should buy if that's te best.

 

[Fritzenheimer]

Foolish

**UPDATE**

Dealer was giving incorrect info to me. The lease APR is 2.9%.
He did, however, give the correct payment amount, so nothing has changed.

My total out of pocket by lease end is $22,696. Unfortunately, there are no incentives available for the 2013 models. If I waited six months or so to get a 2013, there would undoubtedly be incentives and lower lease rates, but the residual will have decreased as we approach the introduction of the next model year car. Such are the costs of being an early adopter.

If I were to finance the car instead, a 60 month APR of around 3% ( www.Bankrate.com ) with the same down payment leads to an out of pocket by loan-end of $50,160. Of course, I would then own outright a five year old car which would have been out of warranty for two years (warranty is only 3 years on these cars), and has a value of between $15K and $17K (edmunds.com appraisal for a 2007 Explorer Eddie Bauer 4x4 with 6 speed transmission and all options). Not to mention, the car will be five years behind the times in terms of safety and technology features, and doesn't include repair costs incurred in the final two years of the loan after the warranty expires.

I'll stick with the lease. I'm in a new car every two years, I'm always covered by warranty, and I'm not too far behind the times tech-wise by lease end.

For example, I like the lane departure features of the 2013; they've been in Volvos for several years -- my XC60 has it, and I've come to appreciate it. If I leased a 2012 model, the costs would be less, but I would miss out on this newer tech.

Perhaps Corey (I apologize if I've misspelled) can weigh in?

Don't mean to be rude, Asystole, but yours has to be the dumbest logic I've ever seen, or perhaps your a one percenter and money doesn't mean any thing to you.

If your heart is set on a two-year lease, then you'd be better off putting zero down and keeping your cash from the Volvo. You'd still have $ left over at the end of the lease that way. But you'd be far better off buying it. If you don't want to keep it more than two years then trade it in.

Why in the world you'd want to throw money away is inexplicable. If you don't need it then give it to a worthwhile charity.

 

[suzook]

It's important to compare apples to apples.

If you spec-out the car as I have ordered it, the MSRP is $50,080. The x-plan brings it down to a little over $47K. Comparing a 2012 XLT to a 2013 Limited is not an apples to apples comparison, especially since the residuals and money factors are different, as are the deltas for 24 versus 36 months.

The 2013 Limited residual is the best if not one of the best residuals available in the market for any car, anywhere. At issue is the money factor (APR is the money factor X 2400 ). The 2012's have much better financing at the moment as well as incentives because Ford is trying to clear their inventory for the 13's. For example the 2012 Explorer enjoys 0.9% purchase financing or 0.5% effective APR for leases, plus $1000 incentive, plus other incentives based on location help to make the down payment and monthly payments smaller. I am approved for Tier 1 (the best) financing through Ford.


I will check with another dealer to see if there is anything to be done with the money factor.

Totally disagree. My xlt is roughly $4k less than your 2013 limited. I was approved tier1 also. Do the math...I have a 2yr lease with 12k miles a year. I put out of pocket $4k, and my payment is $395.....Im sorry, but you ARE getting screwed over on that deal. Shop around, trust me, you could do much better.

 

[suzook]

2 yr leases are the biggest scams car companies have IMO

Depends on the deal. See my post just above this one. I have a low out of pocket, and a low monthly payment, and I get a new vehicle in 2years. Good 2yr leases are hard to come by these days, you need to shop around.

 

[chimoman]

I'd have to agree with the fact that you're paying way too much money. Give the money to a charity. I can give you a bank account # for an off shore account where you can deposit the money. LMAO. Buy it then trade it in after 2 years. Your logic is right out of whack. Just sit and do the math. You should be able to find a better deal than that. They must love you. Do what you must. But make sure you throw some of that money my way before you throw it on the fire. Cheers.