How does this look to you. Parents are considering the Explorer and got these numbers today from a dealer.
Ford Explorer XLT “Sport” MSRP: 44,355
39/10k
Stated R/V: 52%
Stated APR: 1.25 or .00052 MF
"Autonation Savings": 4,233.59 - which I presume is dealer discounting
Ford Customer Rebate: 2,750
AutoNation Price: $37,371.41
According to the 1% rule this is exceeding that by approx. $57 month. Therefore I feel that either a higher mileage allotment of around 15k should be given, or more off the selling price, considering this is just an Explorer XLT w/ a “fancy sport dress” on and the mark-up to go with it. Let me know your thoughts, and if any other info is needed.
Higher miles are never given. More mileage allowance reduces the RV, and the RV is not negotiable. Besides, you either need the miles or you don’t. If you don’t, why pay for them?
Your two options are to negotiate a lower selling price and/or get the MF down to buyrate (if it isn’t already).
But the RV is so low (around 15% lower than, say, a Highlander) that this will never be a great lease.
Unfortunately, they purchased the Mas. IIRC they paid approx. $69.5 on a $75.5 car. They did put some $$ down as well, and got financing through a local CU at 1.9%. All of this is going off of what my father told me as I haven’t even seen the thing yet.