My local dealer in NJ is offering $299 for 36 months on a new Explorer. At first glance this seems okay, but would someone please provide the corresponding MF and residuals so that I can run this through the calc. I’m not comfortable with the $2499 non refundable down payment. Thanks!
From George Wall Ford:
$299/mo. for 36 mos.
Current Competitive Lessees
$2,499 Cash Due at Signing
Security deposit/Bank Fee waived Taxes, title and license fees extra
With Equipment Group 100A 4WD 6cly. MSRP $34,265 Vin #GGB69022. Total of monthly payments is $10,764. Residual purchase price is $18,845. Not all buyers will qualify for CAB East Leasing. Payments may vary; dealer determines price. Residency restrictions apply. Cash due at signing is after $250 RCL Customer Cash $1,000 Competitive Lease Conquest. Lessee responsible for excess wear and mileage over 31,500 miles at $0.25 per mile. Lessee has option to purchase vehicle at lease end at the residual listed above. Take new retail delivery from dealer stock by 2/29/16.
Let’s be clear. Your dealer isn’t offering 299/month - he’s offering 368/month and demanding 2499 of that money up front.
Much of the time, the down payment requirement isn’t a requirement (unless because of your credit), it just makes for better advertising. In your example, a big shiny $299/month screams out and the small print says 2499 down
Concentrate on the total cost of your lease. Use the information here to bring that down.
Thanks @michael . Here’s the number I get by eliminating the down payment and tailoring the deal to specific XLT model on the lot. Not bad, $389 a month, but definitely not great. Problem is I don’t qualify for any of the incentives.
MSRP:
38670
Sales Price:
33500
13% off MSRP
Taxed Incentives:
0
e.g., cash-back offers, loyalty cash, bonus cash.
Untaxed Incentives:
0
e.g., manufacturer-to-dealer cash rebate or if you live in a state where customer cash rebates are not taxed.
Down Payment:
0
Not recommended
Acquisition Fee:
645
Net Capitalized Cost: $34,145
Residual:
55
%
(10,000 miles/yr)
Months:
36
Miles/yr:
Adjusting the miles changes the residual(%).
Money Factor:
.00011
APR: 0.26%
Monthly Payment (Excl. Tax): $364
Document Fee:
80
License/Registrat. Fee:
400
Sales Tax:
7
%
Tax your state, county, and city levy.
Tax is levied on the monthly lease payment (most states).
Tax is levied on the sales price upfront (e.g. VA, TX, GA).
Tax is levied on the total lease payment upfront (e.g. NY, MN, OH).
Monthly Payment (incl. tax): $389
Drive Off: $875
First month’s Payment incl. tax: $389
Down payment: $0
Registration and doc fee: $480
Total MSD Payment: $0
Tax on cap cost reduction and fees: $6
Leasehackr Score: 8.9 years
The number of years it would take for the accumulated monthly payments to exceed the MSRP. The higher the score, the better it is to lease as opposed to buy.
Disposition Fee:
0
Total Lease Cost: $14,098
The total cost of leasing over the lease term, including applicable taxes and disposition fee but excluding registration/license fee and the refundable MSD payment.
Location: Southern California
Desired Trim: Ford Explorer Sport, 401A equipment package, dual moon roof, adaptive cruise control/brake assist
Desired Term: 36 mos., 10,500 miles, 0 down
I have been offered a sale price of $48,237 with a monthly payment of $612 (which includes tax). Trying to find out if there are better deals out there and where to find them. Thanks in advance.