Lease Pricing on 2016 Ford Explorer Platinum

[JCrew7384]

I have previously owned two Jeep Grand Cherokees. The first was an old Jeep my parents gave to me. Then I bought myself a 2009 JGC with a trade, and a 0% loan they were offering at the time. However this time I want to lease.

I don't know anything yet about leasing, terms, mileage, etc. How do I know if I'm getting a good lease deal? Is it always about the monthly payment as opposed to the buy out price? Better to go extra miles or less? Or longer term or less?

 

[peterk9]

I have previously owned two Jeep Grand Cherokees. The first was an old Jeep my parents gave to me. Then I bought myself a 2009 JGC with a trade, and a 0% loan they were offering at the time. However this time I want to lease.

I don't know anything yet about leasing, terms, mileage, etc. How do I know if I'm getting a good lease deal? Is it always about the monthly payment as opposed to the buy out price? Better to go extra miles or less? Or longer term or less?

A lot of what you ask about depends on your financial situation. You approach a lease the same way that you would as if looking to buy. The price is usually somewhat negotiable. Your annual mileage traveled should determine the approximate mileage amount that you put on the lease. Your residual will reflect that. A longer term may or may not result in lower monthly payments as also affects the residual. You can get an idea of how different things affect the payments by going to the Ford website and building an Explorer. In the summary you can select 'Calculate Payments' or something like that and it will bring up a page for calculating Purchase or Lease. The only thing I have a problem with on the U.S. Ford website is that unlike the Canadian site is that it doesn't show the interest rate. That rate can be adjusted by using Multiple Refundable Security deposits. I for one am more concerned about monthly payments instead of the residual (buy out) price since I don't plan on buying it. If you know that you will be buying it out, then you're probably ahead by buying it initially.
The thing I like about leasing is that you don't pay tax on the full cost of the vehicle, only on the monthly payment. At least that is how it works here. Also if it turns out to be a 'problem' vehicle or you one that you decide you don't want, you're not stuck with it at lease end.
As far as to whether you are getting a good deal or not, my take on that has always been, if you are happy with it then it's a good deal. I don't go by what others think or what they pay. Everyone has a different financial situation. I approach it as, it's my money and my vehicle, so I'll make the decision.

Peter