Help with 2013 Explorer Sport lease!!

[jbrewha74]

I currently have an '11 XLT pretty loaded, traded in an '01 Sport i pretty much had to push into the dealer, however, they wrote down they gave me 3k for it. With that, i paid the first month payment and reg fees and walked out at 367 a month for 24 months. Now my lease is up and i am looking to get the new sport, however, dealers seem very reluctant to push this because of limited quantities. I know they are waiting for some moron to come in and say yea ill take it for 600 a month with 5k down. I have negotiated 1 down from 47915 to 42630. I am trying to do this with 0 down just reg. and fees. They are in the high 4s but i feel like i should be able to get this down to the low to mid 4s. Any feedback? Is this unreasonable? And does anyone know the exact residual on this? Cant seem to find exact online.

 

[blichy]

You are looking at a 64% @ 24 months / 55% @ 36 months standard residual, but you can bump that up if you take a lower mileage lease (+2% for 12k/year, +3% for 10.5k/yr). Note that the % is multiplied by the MSRP or MRM (Maximum residualized MSRP), whichever is lower. I think that for the Sport the MRM is only at $46,800). For the lease rate (interest rate), you should be around 0.25% for the NY region.

Based on the upper 4's, you are looking at a 36 month lease. Without tax, it would be about $435 for the 10.5k/yr, or $475 for 15k/yr. For a $45k car, lease payment in the 4's is pretty good. There is a fair bit of support on this car to get there too.

For messing around, the simple lease payment calculation is:
Payment = (Purchase Price - Residual)/Term + (Purchase Price + Pesidual)*Lease Rate/24

 

[jbrewha74]

Thanks a lot, do i use the MRM for MSRP instead of the sticker price which is 47915? And how do i use the interest rate in calculating? Also, do you know what Fords bank fee is? Thanks for your help

 

[blichy]

Thanks a lot, do i use the MRM for MSRP instead of the sticker price which is 47915? And how do i use the interest rate in calculating? Also, do you know what Fords bank fee is? Thanks for your help

You would use the MRM * % residual if MRM is higher than MSRP. Interest Rate = Lease Rate.

Not sure if FMCC has an acquisition fee--for returning customers, a lot of times this is waived. Also look for customer loyalty programs, might be additional cash to get.

To give a little perspective, and make you feel better about a <$500 lease payment, I have seen 60 month leases where the payment was >$6,000--with a decent down payment...

 

[jbrewha74]

Do i need to calculate the lease rate into something to figure out what my payments should be? And do you know if dealers are flexible off of these calculated payments or once you negotiate the sell price, this equation is used and thats it?

 

[peterk9]

My Lease

I leased my 2011 Limited for 48 months, 60k miles. Vehicle was around $50,300 (CDN). With $8k down and approx $2,900 off the price my monthly payment is $507 + tax. Rate was 4.99 but by putting down a refundable security deposit of $6250 I got it down to 3.49%. Residual was set at $19,160 based on the 60k miles. At my current rate I doubt I'll have more than 16k miles on it at lease end. That is one reason that I'm thinking about buying it out at that point. With the refundable deposit, I'll actually only be paying about $12,900 + tax out of pocket.

Peter

 

[jbrewha74]

$507 a month with that kind of money out of pocket seems like absolute insanity. Been to several dealers looking at cars close to or at 50k and they say payments in the 500s, i laugh at them. Regardless of what they give you as far as payment they will make money, thats a given. I would never lease a car for $500 a month plus out of pocket, and for 48 months. To each his own, but i think people need to hold back a little and not get so excited to get the car. It makes it worse for the true hagglers cause the dealers actually believe they should get that kind of money.

 

[jbrewha74]

Actually looked at a 2013 limited with 49k MSRP the other day, guy was down to 495 with 0 down, 36 months, 12k miles. I still walked out because i really dont want the limited.

 

[peterk9]

$507 a month with that kind of money out of pocket seems like absolute insanity. Been to several dealers looking at cars close to or at 50k and they say payments in the 500s, i laugh at them. Regardless of what they give you as far as payment they will make money, thats a given. I would never lease a car for $500 a month plus out of pocket, and for 48 months. To each his own, but i think people need to hold back a little and not get so excited to get the car. It makes it worse for the true hagglers cause the dealers actually believe they should get that kind of money.

My '02 Highlander was $456, my '06 was $570 and my '09 was $507 all + tax and all for 48 months. In part is the taxes and interest rates here that help to drive up the costs. Vehicles here have always been more costly that in the States.

Peter

 

[jbrewha74]

Sorry, i didnt even realize you were in Canada. Anyway, here in the US that would be a little crazy.

 

[blichy]

Do i need to calculate the lease rate into something to figure out what my payments should be? And do you know if dealers are flexible off of these calculated payments or once you negotiate the sell price, this equation is used and thats it?

The payment is really cut and dry. The dealer doesn't have flexibility in the residual, as that is set by the bank or FMCC. The interest rate/lease rate is only flexible in how much they mark it up (i.e. FMCC has a special rate of 0.25% and the dealer offers you 1.25%--with advertised programs this usually doesn't happen though).

To adjust payment, your ways to lower it include:
- lower purchase price
- higher residual at a given purchase price (only done with lower annual mileage)
- lower interest rate/lease rate (as low as the advertised programs, driven by dealer mark-up and your credit)
- longer term contract

If you are negotiating with them, they will need to give you the interest rate and residual (residual will probably be the $$ amount). You may "feel" that the payment should be close to $400, but at the end of the day, you need to pay depreciation for 2-3 years on a $45-50k vehicle, plus the cost of borrowing the money. For depreciation, figure down to around 50-55% for 3 year car, use 0% interest, and see what the numbers look like. When comparing to your old lease, remember that this car is probably $10k+ more, and you had $3k down payment last time. The $3k down payment will equate to about $125/mo on a 24 month lease.

 

[jbrewha74]

Once again thanks for the info, the MSRP on my initial XLT was around and the Sport is around 47. I think the residual is higher on the xlt though. I am going to see how low in the 4s they will actually go.

 

[jbrewha74]

sorry MSRP on XLT was 41

 

[Rodomontade]

On a lease......

NEVER

put any more cash or trade dollars down than you have too.

Ideally $0 down is the only way to go.

Skeptics can look here http://www.leasecompare.com/autolease101_6.php

or on edmonds.com

Money down is money lost forever!

 

[peterk9]

On a lease......

NEVER

put any more cash or trade dollars down than you have too.

Ideally $0 down is the only way to go.

Skeptics can look here http://www.leasecompare.com/autolease101_6.php

or on edmonds.com

Money down is money lost forever!

That is what I belived at one time as well but it is not entirely true at all.
The link refers basically to losing money with early termination.
I did the calculations on the Ford.ca website on a 2013 Ex worth about $53k.
Lease interest was posted at 3.49% and monthly payments include 13% tax.
On a 48 month lease with 0 down, monthly payments including tax = $936
On the same lease with $10k down, monthly payment dropped to $684.
That is a difference of $252 a month. Multiply that by 48 = $12,096
The $10k down + 13% tax = $11,300.
So by putting the 10k down, I save $796 over the lease term.

When I transferred my '09 Highlander lease to a new owner with 2 1/2 years to go on a 48 month lease, the new owner gave me $5,000 back on the $10k I initially put down. I actually reduced the amount he was prepared to pay since he was willing to help me out and covered all the transfer and admin costs in the deal.

Peter

 

[jbrewha74]

I know Canada is different but $936 a month as a lease payment probably gets you into $100k car here. That is crazy

 

[NEWPORTNJ]

I have a 2011 explorer ltd with all bells and whistles 302a pkg, paid the taxes and first month only. I have a $ 525 per month payment for 36 month and 12k miles per year i think that is a great deal.....!

 

[blichy]

I know Canada is different but $936 a month as a lease payment probably gets you into $100k car here. That is crazy

No quite, unless there is a lot of support on it. I work with these numbers very regularly--a 36 month lease on something like a BMW 6-series will run you about $1500/mo--and that is with a bumped up residual and lowered interest rate.

 

[13.]

In my recent shopping I went to one dealer and told them that I had a x plan through my job, $1300 neg equity in my subaru and only wanted to put down the tax an 1st months payment. I wanted a 36 month lease with 10.5k per year. They started with $470 on an 4X4 base XLT I eventually got him down to $410 with $2500 out of pocket but I refused to pay that much a month for a base XLT.

Then I went to an honest dealer. I ended up with a 4X4 XLT with 202A, moon roof, nav, 20's and the platinum paint for $393 a month with $2019 out of pocket.

 

[solomonshv]

Actually looked at a 2013 limited with 49k MSRP the other day, guy was down to 495 with 0 down, 36 months, 12k miles. I still walked out because i really dont want the limited.

Hello. I see that you live in NJ, I live in NY. Can you kindly tell me which dealership gave you such an offer? I am willing to drive out anywhere in the tri state area for a decent lease deal.

I am having a very difficult time trying to get a Ford Explorer.

I went to several dealerships in NYC, and they are just giving prices that I think are nuts. I asked for an Explorer sport with the sunroof and the 402a package, 46k MSRP, on a 36 month lease with 10.5k miles. No expensive colors or other bells or whistles like collision detection. They quoted me something like $625+ a month with 0 down. Then when I said that sounds too high they tried to talk down to me like I'm retarded or something.

Thanks.