Lease Economics Questions for New 2016 Explorer Platinum

[K5OUN]

Bottom line is whether you use a down payment to reduce the monthly cost or no down payment and pay higher monthly costs, the total amount of the lease is predetermined so you'll pay that amount one way or the other in the end.

Peter

Peter is correct, pay me now or later. It all comes out the same as the projected ACV wont change over the same time period x mileage.

 

[JCrew7384]

Seems like a high payment amount, low purchase cost (maybe do to the length of lease), and low miles. Keep in mind that 39 months is a long time and things change, that we would not always think would.

I was also quoted numbers for a 36 month least. You said 39 was long, but isn't 36 pretty standard? I was just looking into the 39 so when it was up I could get into the latest model year.

MSRP (after savings): $53,200

Term: 36mo (-3mo)
Miles: 12k

Monthly Payment: $688 (+$14/mo)
Purchase Price: $30,000 (+$1,000)

Due on Delivery: $2,000 (-$100) (includes first month, fees and insurance 87.50, and upfront taxes 964) (almost $400 decrease here)

 

[JCrew7384]

Is it a good or bad sign if the lease payments generally match what Ford.com suggests is the leasing price of the car?

 

[K5OUN]

I was also quoted numbers for a 36 month least. You said 39 was long, but isn't 36 pretty standard? I was just looking into the 39 so when it was up I could get into the latest model year.

MSRP (after savings): $53,200

Term: 36mo (-3mo)
Miles: 12k

Monthly Payment: $688 (+$14/mo)
Purchase Price: $30,000 (+$1,000)

Due on Delivery: $2,000 (-$100) (includes first month, fees and insurance 87.50, and upfront taxes 964) (almost $400 decrease here)

So if you pay MSRP of 53200, what are you calling purchase price? The depreciation amount of the lease or is that the ACV at lease end? 36 & 39 mo leases normally don't affect ACV on the back end, so besides making three more payments, the end vehicle value wont change.

 

[K5OUN]

To make this simple;

Total sale price - Actual cash value at lease end = total lease value
Total Lease value + lease APR (APR is calculated off total sale price) / 39mo = payment

More down decreases lease value, which lowers payments but changes nothing in the overall lease cost.

Going 39mo over 36mo helps lower your payment and the residual value wont change.

 

[JCrew7384]

So if you pay MSRP of 53200, what are you calling purchase price? The depreciation amount of the lease or is that the ACV at lease end? 36 & 39 mo leases normally don't affect ACV on the back end, so besides making three more payments, the end vehicle value wont change.

Purchase price I was calling residual value...

Oh, so does that make more sense to have a higher payment on a car that has MSRP twice what you guys originally though.

 

[K5OUN]

Purchase price I was calling residual value...

Oh, so does that make more sense to have a higher payment on a car that has MSRP twice what you guys originally though.

Yes, allot

 

[JCrew7384]

Yes, allot

So with that misunderstanding, how do those term seem?

 

[K5OUN]

So with that misunderstanding, how do those term seem?

Average? I am not doing the math, but it sounds correct. Is it a good deal? That's up to you.

 

[BrianT]

I leased a new 2016 Ex Sport.
My payment is just under $900.00 cnd (think its 865.00 cnd)
36 Months 33000K (20000 mile) per year

I'm happy with the deal, at the end of the lease or at 30 months
I will get a new vehicle and keep up the payment.
Brian

 

[JCrew7384]

I leased a new 2016 Ex Sport.
My payment is just under $900.00 cnd (think its 865.00 cnd)
36 Months 33000K (20000 mile) per year

I'm happy with the deal, at the end of the lease or at 30 months
I will get a new vehicle and keep up the payment.
Brian

Did you put any money down or trade? Thats a nice high-mileage lease... My current Jeep was 7 years old on Jan 21, and I'm just at 82,000 mi, so that's 11,700/yr. Pushing close to the 12k limit of the lease I'm looking at but if we're getting close I can curb some of the habits.

 

[peterk9]

Did you put any money down or trade? Thats a nice high-mileage lease... My current Jeep was 7 years old on Jan 21, and I'm just at 82,000 mi, so that's 11,700/yr. Pushing close to the 12k limit of the lease I'm looking at but if we're getting close I can curb some of the habits.

They don't have low mileage lease low enough for me.

Peter

 

[JCrew7384]

Has anyone successfully gotten a dealer to include standard maintenance (oil change, tire rotation, etc) on a lease?

Also, I used the formula at http://www.realcartips.com/leasing/0439-good-lease-deal.shtml to calculate the "value" of my lease deal. I calculated the value per $10000 at $125, which is slightly below their criteria, meaning it is an OK deal. ($688/5.4715)

 

[BrianT]

Did you put any money down or trade? Thats a nice high-mileage lease... My current Jeep was 7 years old on Jan 21, and I'm just at 82,000 mi, so that's 11,700/yr. Pushing close to the 12k limit of the lease I'm looking at but if we're getting close I can curb some of the habits.

No trade, just first payment. This is my 2rd high milage lease from the same dealer
for a Ex Sport.
With all the rebates at the time of leasing, this one is $65.00 per month less than
the 2013 I had.

Brian

 

[JCrew7384]

A dealer said this to me in email, does that sound right? "All ford leases come with GAP insurance at no cost to you"

 

[fwrogg]

A dealer said this to me in email, does that sound right? "All ford leases come with GAP insurance at no cost to you"

Yes and I specifically asked as I was shocked they did not push it.

 

[K5OUN]

A dealer said this to me in email, does that sound right? "All ford leases come with GAP insurance at no cost to you"

Pretty sure all leases in general are now written to include GAP. Its the lender looking out for their investment.

 

[JCrew7384]

Actively negotiating down my lease. I was able to find the EXACT same car (same VIN) at another dealer, so I guess the one I was working with was going to get it from them somehow. The dealer with the car on the lot offered lower monthly and upfront on the same terms than the first dealer. So now I guess I'll see which one can match/beat the other and make a deal that way...

I assume that the first dealer will match the second dealer's offer right? And if he does, would he be willing to beat it? I'm assuming the better offer I received over email was not their best either, and could probably negotiate that down a tad.

 

[peterk9]

Actively negotiating down my lease. I was able to find the EXACT same car (same VIN) at another dealer, so I guess the one I was working with was going to get it from them somehow. The dealer with the car on the lot offered lower monthly and upfront on the same terms than the first dealer. So now I guess I'll see which one can match/beat the other and make a deal that way...

I assume that the first dealer will match the second dealer's offer right? And if he does, would he be willing to beat it? I'm assuming the better offer I received over email was not their best either, and could probably negotiate that down a tad.

The problem here as I see it is that the second dealer has the Explorer. Even if the first dealer comes in with better pricing there is no guaranty that they can get that same Explorer from the second dealer. You may have to order one or wait and see if a similar Explorer can be found elsewhere.

Peter

 

[NCSailing]

January/February Lease Residuals & Money Factor

Hello, I am new to this forum and have a deposit on a 2016 Explorer Platinum.

Looking for the following (and I know February numbers may not be out yet):

24 and 36 month:
Residuals
Money Factor
Special Incentives

Thank you!