Asking people who know stuff - lease

[jkeith00]

Hi All,

 

Pretty serious about pulling the trigger on an Edge and I'm considering leasing for the first time ever. Anyone have any opinions about whether this seems to be a good, average, or poor deal?

 

2011 Limited

MSRP: $46,200

 

Rapid Spec 302A

Tow Pkg

Cargo Accessory Pkg

Back-lit door sill

20" Chrome clad

Dual Headrest DVD

 

Purchase price: $42,593.34 (X Plan)

Residual 58%

APR/$ Factor 1.25

36 mo term

 

What do you all think?

[Edgieguy]

Is it just me or does that residual seem really high?

 

I leased (for the first time ever) thru the xplan for my 2008 limited. I found no cost savings overall after inception fees and so on.

About the only advantage I found was that when the

Revamped 11's came out, I didn't have to sell anything. All we had to do was make the decision to either buy out our lease

Or leave it behind for the new one. We decided to purchase our 2011, especially when Bank of America gave us 2% interest.

If you like always having the newest vehicles, don't want to deal with the costly repairs (after 36k miles, tires,

Brakes, antifreeze flushes) then leasing is probably a great option for you. That is, as long as you stay within your miles.

[akirby]

Leasing is just another financing option. First you should decide whether you plan to keep the vehicle longer than 2 or 3 years or if you want to walk away. Then you can do the math on a lease deal vs. buy if you decide you want to walk away after 2 or 3 years. Or you can opt to lease, then buy it out which would stretch out the payments longer and keep the payment lower. Leasing is more convenient if you want to get a new car every 2 or 3 years but it's harder to get out of early.

 

As to whether that's a good deal or not the only way to know is to shop around and compare prices from multiple dealers. X plan deals are usually very good and should be the same price at any dealer assuming it works the same as purchasing on X plan.

[jkeith00]

Thanks guys.

 

Isn't a high residual a good thing in a lease?

 

As far as leasing vs buying goes, I seem to be a great leasing candidate. I drive less than 10K miles per year and tend to cycle cars every few years anyway.

 

I already feel good about the vehicle cost part of the deal. I've used my X Plan plenty of times in the past and find them to be pretty solid. Dealer and I haven't done any actual negotiating yet, but I'm sure we'll come to terms easily.

 

Most of my question stems around my lack of experience with leasing specific factors - Residual & APR/Money Factor. I "think" the numbers I have are favorable, but that is why I wanted to get your collective opinion.

 

Thanks so far!

 

J

[akirby]

Thanks guys.

 

Isn't a high residual a good thing in a lease?

 

As far as leasing vs buying goes, I seem to be a great leasing candidate. I drive less than 10K miles per year and tend to cycle cars every few years anyway.

 

I already feel good about the vehicle cost part of the deal. I've used my X Plan plenty of times in the past and find them to be pretty solid. Dealer and I haven't done any actual negotiating yet, but I'm sure we'll come to terms easily.

 

Most of my question stems around my lack of experience with leasing specific factors - Residual & APR/Money Factor. I "think" the numbers I have are favorable, but that is why I wanted to get your collective opinion.

 

Thanks so far!

 

J

 

I think the high residual comment was just an observation, not a comment on the deal.

 

Don't worry about the numbers - just compare the monthly payment and up front cash.

[jkeith00]

Update: I still haven't pulled the trigger as I'm trying to get the deal just right (although I'm bot sure what that is). However, my APR is now down to 1% from 1.25% and maintenance is included for the duration of my lease.

[dcac410]

Can I get some examples of lease payments? My dealer said for a Limited AWD priced at 36,400 with 8k down a lease payment would be $450 kinda seems extremely high to me.

[drevv]

Can I get some examples of lease payments? My dealer said for a Limited AWD priced at 36,400 with 8k down a lease payment would be $450 kinda seems extremely high to me.

That seems awfully high! I leased a loaded AWD SEL on the X plan for around $35,000 with a trade-in ($8K). My dealer started negotiating with low $400s, i got him down under $300 with all taxes& fees rolled into the trade, for 39 months w/12k He claimed that he was adding more money to my trade, but i know that they would be crazy to give me anything above $8500 for it. Never accept the first offer, always negotiate and compare. I went to several dealerships before i got comfortable and found a dealer who was willing to give me what i was looking for in terms of payments. Good luck!

[benp226]

That seems awfully high! I leased a loaded AWD SEL on the X plan for around $35,000 with a trade-in ($8K). My dealer started negotiating with low $400s, i got him down under $300 with all taxes& fees rolled into the trade, for 39 months w/12k He claimed that he was adding more money to my trade, but i know that they would be crazy to give me anything above $8500 for it. Never accept the first offer, always negotiate and compare. I went to several dealerships before i got comfortable and found a dealer who was willing to give me what i was looking for in terms of payments. Good luck!

 

 

I just leased a Sport today with a X-Plan. X-Plan price was around 37600. I had 7500 trade-in. 36mo/10500mi for around $350 out the door.

[drevv]

I just leased a Sport today with a X-Plan. X-Plan price was around 37600. I had 7500 trade-in. 36mo/10500mi for around $350 out the door.

Congrats on your purchase, that sounds like a really good deal for a Sport. At one of the first dealerships that i went to, they had a candy red Sport with panoramic sunroof sitting in the middle of the showroom. I was looking at LTDs at the time, and just wanted to see what kind of deal I would be able to get on that particular one. After a few hours of negotiations I was able to knock him down to $325 for 36/12k lease with my trade in($8K) and nothing out of pocket. The deal breaker for me was that it didn't have NAV, and i really couldn't care less about the panoramic roof, besides the guy was being very pushy and made me feel somewhat uncomfortable. I really had my mind set on NAV, so cool heads prevailed, and i ended up walking way from it. I still think that it was an awesome deal, and if it had NAV I would probably be driving it right now. Few days and few other dealers later i closed on my AWD SEL w/202a, leather, Nav and vision package for $260 for 39/12k with no money out of pocket. In my mind i got everything i wanted for the reasonable price. Even though it would be cool driving that candy red Sport, but in retrospect i'm happy with my decision.

[dcac410]

Thanks for the information everyone I feel more comfortable about putting a deposit on ordering a limited and leasing it when I get back to the states. I was using the calculator and coming up with figures just like you all mentioned, but the dealers were tacking on $50 out of somewhere. I don't have a trade-in but will be able to put between$7k-8k down. Can't wait to get back to the states and drive it!

[MSFAngela]

2011 Edge Limited AWD - Base Price 39,670 - Z Plan - 35,942

 

10,500 Miles

 

$1,500 trade in

$3000 cash down

 

24 month lease - $299/month

 

Purchase price at end = 27078.90

 

I also had my guy run 15,000 miles with the trade in and $5,000 cash down. Came to $263/month for 24 months

 

If you compare to the Ford.com calculator it is correct. $450 is way too high.

Edited February 4, 2011 by MSFAngela

[MSFAngela]

Thanks for the information everyone I feel more comfortable about putting a deposit on ordering a limited and leasing it when I get back to the states. I was using the calculator and coming up with figures just like you all mentioned, but the dealers were tacking on $50 out of somewhere. I don't have a trade-in but will be able to put between$7k-8k down. Can't wait to get back to the states and drive it!

 

 

If you can go 24 months it will greatly reduce the price! you can see a $50 difference per month if you go that route.

[Grey]

Also look at a 27 month lease. On our Mariners, the residual was the same as a 24 month lease - three months longer for about the same total cost.

[MSFAngela]

Also look at a 27 month lease. On our Mariners, the residual was the same as a 24 month lease - three months longer for about the same total cost.

 

 

I will check into this. If its the same price, why not On Ford.com they only give you the normal time frames, but when I go to buy i'll ask him for 27 months.

[ziggy86]

Fors those people who have leased before, ( am not one of them) do you have to have the car brought in for scheduled maintenance and are you responsible for the cost of it?

 

If you ask will the dealer include maintenance in the car? (Is that hard to get them to agree too?)

 

Are the dealers supposed to tell me the rate if I request it? One gave me the rate while another dealer would not tell me?

 

Also, when the deaer called me today to see if I was interested the car I wanted would have to be ordered and he said that he could not tell me the lease payments until I take the car. Is that right? If I order the car now and put down payment why can't he tell me my lease payments?

Edited February 28, 2011 by ziggy86

[cal3thousand]

Fors those people who have leased before, ( am not one of them) do you have to have the car brought in for scheduled maintenance and are you responsible for the cost of it?

 

If you ask will the dealer include maintenance in the car? (Is that hard to get them to agree too?)

 

Are the dealers supposed to tell me the rate if I request it? One gave me the rate while another dealer would not tell me?

 

Also, when the deaer called me today to see if I was interested the car I wanted would have to be ordered and he said that he could not tell me the lease payments until I take the car. Is that right? If I order the car now and put down payment why can't he tell me my lease payments?

 

 

I have not leased before, but I am definitely contemplating it as the payments will be lower initially. I plan on having a bigger vehicle budget after 3 years and will most likely buy out the vehicle.

 

An honest dealer should give you the rate, if not, tell him you don't like his tactics and there's another dealer that has been treating you better. Same goes for not being able to tell you the lease payment. That's the most ludicrous thing I've ever heard. I can give you payment amounts on an imaginary vehicle, why not one that has the price established already? SHADY

 

 

 

As for maintenance, I would like to know that answer too... Maybe hinting that you were also thinking about leasing an X3 instead might help as BMWs come with maintenance.

[drober30]

I cant believe anyone would put $8K down on a lease and pay $400 -$450 a month. I'm all for leasing but only using what rebates that are available and having a decent payment. $400 or less.

 

I just seen a Lincoln MKX commercial zero down/$399 month for 10500 miles year.

Edited March 10, 2011 by drober30

[Grey]

do you have to have the car brought in for scheduled maintenance and are you responsible for the cost of it? ---YES

 

If you ask will the dealer include maintenance in the car? PERHAPS you would want a Maintenace Plan from ESP? I just use the online coupons.

 

Are the dealers supposed to tell me the rate if I request it? Interest rate on the lease?? YES

 

Also, when the deaer called me today to see if I was interested the car I wanted would have to be ordered and he said that he could not tell me the lease payments until I take the car. Is that right? If I order the car now and put down payment why can't he tell me my lease payments? -------If the prices or incentives change, the lease cost changes -- Dealer is correct. (Trade value changes also.)

 

You should always consider a lease. Establish a purchase price, based on current incentives and your trade, Then, using that price, ask them to compute a lease for the number of months you want and the annual miles you plan to drive. Incentives sometimes differ between purchase and lease and that will affect the starting price. ($2,000 less incentive on a lease will up the starting price by $2,000).

 

Often the advantage to a lease lies in the residual set for the vehicle by Ford Credit (higher is better) and the application of the incentives to only the lease months - not the total purchase price. ($3,000 off a 60 month purchase simplistically saves $50 per month BUT $3,000 off a 24 month lease saves $125 a month.) At the end of 24 - 36 months, you can decide to turn in the vehicle or buy it for the "residual" cost.

 

When the incentives are very large (like the Mercury close out deals) the leases can be very attractive. We (extended family) have 3 leases going now on those bargains.

Edited March 11, 2011 by Grey

[craw169]

i have leased a few times...and still make mistakes. if you are only interested in new vehicles i think leasing is the way to go. if you are unsure about the deals, find some online lease calculators like:

 

http://www.ic.gc.ca/eic/site/oca-bc.nsf/eng/ca01851.html

 

or

 

http://www.carbuyingtips.com/download.htm

 

and make sure your numbers and what is on the contract you sign is the same. it should be, if not there is something wrong.

 

with reference to my mistakes, i recently signed a sales contarct/lease contract and i have no vehicle description on there...stupid i know...i was so excited by the price and so tired of refusing all the warrenty/rust proofing crap that i didn't make sure that the vechicle i wanted was described on the lease contract...only says the year, make and doesn't list the options. am i in big trouble? is the lease contract even valid without a vechicle VIN on there or is the contract just a way to make you think you have no choice but to buy what ever car they find? i gave them a $1000 deposit and haven't seen the car i want.

 

c

[akirby]

i have leased a few times...and still make mistakes. if you are only interested in new vehicles i think leasing is the way to go. if you are unsure about the deals, find some online lease calculators like:

 

http://www.ic.gc.ca/eic/site/oca-bc.nsf/eng/ca01851.html

 

or

 

http://www.carbuyingtips.com/download.htm

 

and make sure your numbers and what is on the contract you sign is the same. it should be, if not there is something wrong.

 

with reference to my mistakes, i recently signed a sales contarct/lease contract and i have no vehicle description on there...stupid i know...i was so excited by the price and so tired of refusing all the warrenty/rust proofing crap that i didn't make sure that the vechicle i wanted was described on the lease contract...only says the year, make and doesn't list the options. am i in big trouble? is the lease contract even valid without a vechicle VIN on there or is the contract just a way to make you think you have no choice but to buy what ever car they find? i gave them a $1000 deposit and haven't seen the car i want.

 

c

 

I'm no attorney but I do watch Judge Judy. If the agreement doesn't have a specific description and/or a VIN number then I don't see how that would be binding. Because the dealer could say it's for this vehicle and you could say it's for this other vehicle and neither one of you can prove it one way or the other. So the contract would be unenforceable. I don't think the dealer would do that to you anyway - my guess is they just gave you a sample price and they'll update it and redo it once they find one.