Craiger Posted February 6, 2008 Report Share Posted February 6, 2008 Hello everyone, I've been lurking on here for a while but never posted. 3 weeks ago, I finally decided on a new vehicle and of course, went with the Edge. The biggest issue I had pulling the trigger was that the lease rates were very high compared to the competition. I ended up getting a 6.1% lease rate for 36 months (still bothers me to admit that). Anyways, that was January rates. I would have purchased if the financing rate was much better but they weren't so went with the lease. Well, I just happen to notice that their lease rates dropped in Feb to 3.1% for the same lease term and 0% for up to 60months financing. Needless to say, I am not a happy camper. Do any of you know if Ford offers any kind of lease rate guarantee within a 30-day period. Of course, a guarantee longer than this wouldn't make sense but I picked it up 3 weeks ago!! Works out to almost $3,000 less interest paid over the term. If they don't, do you think they would allow me to transfer my lease to a purchase to take advantage of the 0% finance rate? I'm wating for a call-back from my dealer. I'm in Ontario, Canada by the way. Thanks for any help you can give me, Craig Quote Link to comment Share on other sites More sharing options...
akirby Posted February 6, 2008 Report Share Posted February 6, 2008 There is no price or financing guarantee, so you're stuck. But don't assume you got a worse deal, there are other factors involved such as the cost of the vehicle itself. I also don't know exactly how the interest rates work on a Lease, but I seriously doubt there is a $100/month difference in the lease price from one month to the next based on the interest rate change. In any case, it's water under the bridge now so don't worry about it. Quote Link to comment Share on other sites More sharing options...
Meckwell Posted February 6, 2008 Report Share Posted February 6, 2008 There is no price or financing guarantee, so you're stuck. But don't assume you got a worse deal, there are other factors involved such as the cost of the vehicle itself. I also don't know exactly how the interest rates work on a Lease, but I seriously doubt there is a $100/month difference in the lease price from one month to the next based on the interest rate change. In any case, it's water under the bridge now so don't worry about it. Yup I am in the same boat as Craig, I leased an Edge at 6.1% and picked it up Jan 23...only to find out Feb 1 that I got screwed...have to admit I am quite disappointed. Quote Link to comment Share on other sites More sharing options...
Craiger Posted February 6, 2008 Author Report Share Posted February 6, 2008 I wish there wasn't that big of a difference on a monthly payment but that's not the case. I'm an accountant so I always work the numbers. With purchase price and everything else being equal, From 6.1% to 3.1% over a 3-yr term reduces my monthly payment by $65 and a reduction of interest paid over the term of almost $2,800...that is pretty significant. Man, I was going to wait until this month to buy...oh man, am I ever regretting I didn't. Quote Link to comment Share on other sites More sharing options...
freekyFX4 Posted February 6, 2008 Report Share Posted February 6, 2008 I wish there wasn't that big of a difference on a monthly payment but that's not the case.I'm an accountant so I always work the numbers. With purchase price and everything else being equal, From 6.1% to 3.1% over a 3-yr term reduces my monthly payment by $65 and a reduction of interest paid over the term of almost $2,800...that is pretty significant. Man, I was going to wait until this month to buy...oh man, am I ever regretting I didn't. I know how you feel. I bought my 2008 F250 in May with no rebates and 6.9% financing for 60 months. Now they have 0% for 60 months. Do the math on that...my impatience is costing me over $100 a month for 5 years! When we went to the dealership last week, we applied for financing for the Edge on January 31 and held off until February 1 to make sure that nothing changed. The salesman said that they could play either side of the fence as long as the application was in before the end of the month. Of course, it ended up being the same in february as it was in January. Quote Link to comment Share on other sites More sharing options...
akirby Posted February 6, 2008 Report Share Posted February 6, 2008 (edited) I wish there wasn't that big of a difference on a monthly payment but that's not the case.I'm an accountant so I always work the numbers. With purchase price and everything else being equal, From 6.1% to 3.1% over a 3-yr term reduces my monthly payment by $65 and a reduction of interest paid over the term of almost $2,800...that is pretty significant. Man, I was going to wait until this month to buy...oh man, am I ever regretting I didn't. $65/month is only $2,340 over a 36 month lease so that's your out of pocket difference, not $3K. Unless you compared an identical vehicle to yours you don't know for sure whether the interest rate was the only change. They could have lowered the residual value and/or the incentives which would offset the interest rate change. Not saying they did or didn't, just that you can't go by the interest rate alone. Edit - I just noticed you said $2800 in interest paid over the term but only $65/month - but that's not how it's calculated. The interest is a fixed monthly charge. In this case: (vehicle cost + residual value) * money factor The money factor for 6.1% is 0.00254 (6.1/2400). The money factor for 3.1% is 0.00129. If you assume a vehicle cost of $30K and residual of $15K you get interest charges of $114.30 at 6.1% and $58.05 at 3.1% for a difference of $56.25 per month - fixed. Edited February 6, 2008 by akirby Quote Link to comment Share on other sites More sharing options...
Craiger Posted February 6, 2008 Author Report Share Posted February 6, 2008 Ok, my numbers are just estimates...it's about $70/month less so about $2.5K out of pocket. I get your point about the other adjustments but residuals as far as I understand are adjusted quarterly so Jan 1 was an adjustment, and Feb 1 would be the same. 3 weeks time cost me quite a bit...I'm pretty frustrated with the whole thing. Just got off the phone with Ford Canada and they basically told me "too bad, so sad". Swore I'd never buy a Ford and less than one month after giving them a shot, I'm already regretting it Won't be quite as happy driving that thing around anymore. :angry2: Quote Link to comment Share on other sites More sharing options...
Craiger Posted February 6, 2008 Author Report Share Posted February 6, 2008 BTW, I'm not trying to get into a debate about specifics. Whether it's $50/month, or $70/month, the point is that it's ridiculous that had I bought this today instead of 3 weeks ago, that my payments and interest would be significantly less. I appreciate the calcs, just doesn't help how I'm feeling about this purchase right now. I'm still trying to find out if I can swap the lease to a purchase but I'm sure that won't be possible either. Quote Link to comment Share on other sites More sharing options...
freekyFX4 Posted February 6, 2008 Report Share Posted February 6, 2008 Ok, my numbers are just estimates...it's about $70/month less so about $2.5K out of pocket. I get your point about the other adjustments but residuals as far as I understand are adjusted quarterly so Jan 1 was an adjustment, and Feb 1 would be the same. 3 weeks time cost me quite a bit...I'm pretty frustrated with the whole thing. Just got off the phone with Ford Canada and they basically told me "too bad, so sad". Swore I'd never buy a Ford and less than one month after giving them a shot, I'm already regretting it Won't be quite as happy driving that thing around anymore. :angry2: Like I said, don't feel too bad. I am paying about $145 more per month at 6.9% for my F250 than a person buying today at 0%. I am sure I will lose some sleep over it...it just means that I work about six hours a month just to pay for that extra interest. Quote Link to comment Share on other sites More sharing options...
akirby Posted February 6, 2008 Report Share Posted February 6, 2008 BTW, I'm not trying to get into a debate about specifics. Whether it's $50/month, or $70/month, the point is that it's ridiculous that had I bought this today instead of 3 weeks ago, that my payments and interest would be significantly less. I appreciate the calcs, just doesn't help how I'm feeling about this purchase right now. I'm still trying to find out if I can swap the lease to a purchase but I'm sure that won't be possible either. I was just trying to point out that it wasn't quite as bad as you estimated initially. It sucks but this happens all the time with anything you buy. I don't know of any auto mfrs that give you a price guarantee. It could have just as easily gone up instead of down. Quote Link to comment Share on other sites More sharing options...
Craiger Posted February 6, 2008 Author Report Share Posted February 6, 2008 I'm pretty sure Subaru does have a 3-month price commitment and the Saburu was the other vehicle I was considering. Oh well, I figured there was nothing I could do, I'm just very upset about it right now. I know I'll get over it, just hard to take, especially given the reason I almost didn't go with the Edge was their high interest rates. Quote Link to comment Share on other sites More sharing options...
Cableguy411 Posted February 7, 2008 Report Share Posted February 7, 2008 I wish there wasn't that big of a difference on a monthly payment but that's not the case.I'm an accountant so I always work the numbers. With purchase price and everything else being equal, From 6.1% to 3.1% over a 3-yr term reduces my monthly payment by $65 and a reduction of interest paid over the term of almost $2,800...that is pretty significant. Man, I was going to wait until this month to buy...oh man, am I ever regretting I didn't. If I remember correctly, I believe they changed the rates around January 17, 2008 in Ontario. You may not have noticed but the deal at the beginning of January was a Delivery Allowance of $2,000 plus the 6.1% lease rate. The deal being offered now is the lower 3.1% lease rate but NO Delivery allowance. Not sure how that changes things for you. Quote Link to comment Share on other sites More sharing options...
akirby Posted February 7, 2008 Report Share Posted February 7, 2008 You may not have noticed but the deal at the beginning of January was a Delivery Allowance of $2,000 plus the 6.1% lease rate. The deal being offered now is the lower 3.1% lease rate but NO Delivery allowance. That was exactly what I was talking about. You can't compare one piece of the cost by itself. Add the tax and interest savings on top of the $2000 allowance and you're at least breaking even, maybe even slightly ahead. That's why I said you needed to compare a current identical vehicle with the same lease parameters to really find out if it's cheaper. Quote Link to comment Share on other sites More sharing options...
Craiger Posted February 7, 2008 Author Report Share Posted February 7, 2008 Thank you so much for the info. I had no idea that the $2,000 allwance was no longer being offered. I may get some sleep tonight after all. Sorry for not listening akirby...thanks for the relief. Almost a complete wash after considering that. Quote Link to comment Share on other sites More sharing options...
noles200 Posted February 9, 2008 Report Share Posted February 9, 2008 Hello everyone, Well, I just happen to notice that their lease rates dropped in Feb to 3.1% for the same lease term and 0% for up to 60months financing. Needless to say, I am not a happy camper. Craig Hey Craig, Where did you find the 3.1% info? I'm being quoted a rate of 5.4%. That's a difference of $47 per month over 39 month lease that I was quoted. I am, however, in the US. Quote Link to comment Share on other sites More sharing options...
Craiger Posted February 9, 2008 Author Report Share Posted February 9, 2008 Hey Noles, I'm in Canada so I'm assuming Ford Canada rates may be different. Maybe not though so make sure you're not getting a raw deal. Ford USA website should have the official current rates. In Canada, it's 3.1% for 36 months with 0 cash incentive right now. Quote Link to comment Share on other sites More sharing options...
noles200 Posted February 9, 2008 Report Share Posted February 9, 2008 Well, I've looked all over and can't find a lease rate. Found purchase option rates of 3.9% but no lease rate. Buy vs. Lease Comparison Buy Lease Stand-Alone APR: 3.9% N/A I don't know why they don't give lease rates in the US. UGH!!! Maybe someone else would have an idea. Quote Link to comment Share on other sites More sharing options...
Craiger Posted February 9, 2008 Author Report Share Posted February 9, 2008 Ya, after i posted, i checked the Ford US website and couldn't find any lease rates. Very strange, it looks as though they are trying to hide the rates. On the Canadian website, the rate shows for both leases and financing and changes as you change the term. I think your best bet would be to call a few different Ford dealers in the area and ask them what their current rates are and see if you get any discrepancies or whether they are all consistent. Quote Link to comment Share on other sites More sharing options...
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