Deal on 2020 Explorer ST, any good?


With $2k down, 10,500 miles per year, they are offering $639/month for 36 months.

Good deal or no?


There’s a trade involved, complicated things. What’s the value of your trade, and how much is the dealer compensating for that (adding discount/taking it away).

Figure out residual and mf to see if they are marking it up (Edmunds leasing forum) and then you’ll have the tools to figure out a deal.

The trade is just me turning in my current lease which is a 2018 Explorer Sport.

Residual is 53%
MF is 0.0011

How do I figure out markup?

Get the MF and residual from edmunds and the money factor and the residual that the dealer is giving you and compare.

Why is there a delta on the trade value if you’re just turning in a lease?


Everything they said plus what incentives do you qualify for that are buried in the rebates/discount number. Unfortunately you need more info and need to do a lot more research.

What do you mean by delta?

The only incentive I qualify for is the RCL.

You are not just “turning in your lease.”

The lease sheet shows they’re buying back your Explorer and applying the positive equity to your deal. I’m really surprised there’s positive equity in it…

So it’s really an effective ~3700 dollars down because the difference between trade allowance and trade payoff is being rolled into the lease.

At the end of the day, I think this is an expensive lease for the type of car you’re getting.

Expensive because you don’t think an Explorer should cost that much in general, or because you feel I am getting a poor deal?

Having driven the truck, and have had owned an Explorer in some form or another since 1997, and having had a 2015 Explorer Sport and 2018 Explorer Sport, I love the 2020 ST. I would be willing to pay the $639/month if it is a good deal.

Delta is a difference.

They’re showing that they’re buying out your current vehicle and it has a trade in value, so the trade equity is included.

Ah, gotcha. That is probably because it is still in showroom condition, and only has 16k miles. Also, they are picking up the last 5 lease payments since my lease isn’t up until Feb.

Since they are buying it and paying it off they are not covering your last 5 payments.

No they aren’t. They’re buying out the car and giving you $1500 for it, which means this isn’t $639 with $2k das, it’s $639 with $3500 das.

If your current vehicle has equity in it, you should get a purchase quote from carvana, vroom, etc for comparison.

It’s 750/month with the drive offs.

What is the split of the rebates vs. selling price discount?? It’s all lumped into one line.

Absolutely need to make sure that you cannot get better money for your trade-in elsewhere. Check carvana vroom other dealers etc. It’s shocking to me that the sales guy didn’t explain the trade situation to you.

Most of all you really need to get a handle on leasing and how to calculate a lease payment. Slow down a bit!! :slight_smile:

Sir you are going about this all the wrong way and way tooo fast. Lets break down things.

  1. For current lease: Get quotes from Carvana/Vroom for your car value. Get the payoff from the current bank. You really need to separate this from the current lease. Its possible you have some positive equity vs payoff. Ask the dealer to cut you a check for any positive equity. Don’t use it towards the new lease.

  2. Ask the dealer how much is the discounted price before incentives. And then what are the incentives being applied to this deal.

  3. Check MF and RV from Edmunds and the dealer. COmpare to make sure they are the same.

The above are the starting points.

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I just don’t think the explorer (any trim) warrants a ~710 a month effective payment when I can get into a 65k X5 loaner for the same, if not less.

Have you ever considered owning literally any other car besides an Explorer? You’ve had quite a few for a long time, have you thought about checking out other vehicles?

Is the 3rd row what draws you to the Explorer? Overall quality on the 2020’s is down compared to its competition, in my opinion, especially for the 60k MSRP range.

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$640/mo with $3500 DAS is about what the ST goes for.

It’s not a good lease value, but it’s a good lease offer for this make/model.