Leasing 2016 Ford Flex (Canada)

Location: BC, Canada
Vehicle: 2016 Ford Flex Limited
Term: 36 Months

First post in Leasehackr so let me know if I’m leaving out any critical info. Looking to lease the vehicle above. Priced out using build & price function on Ford Canada website. Getting an estimated $984/month with 0% APR on a 36-month term. Does this seem crazy high? I was surprised by the payment amount. Details in image.

The website doesn’t provide the residual, so I assume I would have to calculate it based on the known info provided. I’m new to lease math so don’t exactly know how to do that. The estimated taxes don’t make a lot of sense to me either. I’m in a jurisdiction with 7% PST and 5% GST for a combined 12% sales tax. I can’t think of a scenario where anything would attract $70 PST and $44 GST. One of those pretty much has to be wrong. I’ve blacked out the postal code in the image but I can confirm that it is correct for my area, so it’s not a regional issue. Perhaps the Ford website doesn’t calculate the taxes properly.

Appreciate any insight or advice. Thanks.

I tried it with an Ontario postal code and got a similar result. Either the payment calculator is broken or the residual percentage is in the 30s. Not sure why they would do a zero percent APR lease…

The tax you are seeing is for the monthly payment, so it looks about right.

Thanks. I also figured the residual would have to be in the 30s which strikes me as very low for a 36-month term. The reason the taxes didn’t seem right is because… they just can’t be. It might not be a huge dollar difference but given the sales tax rates in my province it doesn’t make sense.

PST is 7% in BC. $70 in PST implies a $1,000 pre-tax figure, which further implies $50 in GST. I can’t see a scenario where $70 PST and $44 GST are both correct.

984-114=870

114/870=0.131

So it’s figuring 13.1% tax. Which is still wrong, but close. I would just focus on the pre-tax number.

Fair enough.

Does the lease figure seem reasonable? Is the residual on the 2016 Flex actually in the 30s? I expected a higher residual.

No it’s not reasonable at all. You could probably get into a Porsche Cayenne for $1000/mo…

Thanks. That’s the kind of feedback I was looking for.