Received a lease quote for an F150. Is the MSRP and residual value based on the total before discounts line on the window sticker, or do I subtract the savings listed on the sticker and that’s my correct MSRP? Then is that adjusted number used to calculate the residual?
The quote has the (higher) total before discounts as his MSRP and he’s putting those $2500 discounts as part of his dealer markdown. Doesn’t make much sense?
Negotiate your discount off the blue box, use the price before the option package discount to figure the residual. These Ford dealers try to show bigger discounts by using the higher number on the sticker, aim for 10% off the blue box before rebates.
OK, thanks. Using the residual off the higher price before discounts gives me a lower payment, but also leaves me with a higher payoff (residual) at the end if I decide to buy the vehicle though, correct?
They’re quoting me 13% off blue box for my sales price plus rebates of $1500 + two $250 Ford certs for a total of $2000 rebate. Wish I had a PCO!
MF and Residual are also in line with what I got off Edmunds.
The 13% off msrp is a good deal on the higher trims, on the xlt’s you can get 15% or more. Though not a bad deal by any means I’m just pointing out you might be able to drop your payment some more.
edit: If it’s a lariat then you did pretty good. Post details when you get a chance and good luck with the deal.
You always want the residual higher, lower payment. It’s usually not a good idea to lease with the intention to buy at the end.
Wasn’t planning on purchasing at end, just making sure I understood. Thanks!
It is an XLT, so I’ll push for more off MSRP.
I have a question. I was always told that the MSRP to use when calculating Residual Value is the price at the bottom of the sticker (Total MSRP in Ford’s case). The vehicle I’m interested in has a total MSRP of $37680 (Blue box). With the current RV for the 2020 Escape Titanium (36 Month/36K) being at 54% I have the RV at 20347.20. My Salesman told me that the RV is $20,563.20. The $216 difference equates to $400 (216/RV). It appears that the dealer removed the $400 20.L ECOBOAST NATL DISC from the MSRP. When I do that the RV matches what the dealer is telling me.
My question is, shouldn’t the RV (at 54%) be $20,347.20 based on “Total MSRP” of 37680? Is appears that the dealer is removing the $400 credit making the “new” MSRP $38080 and the RV $20563.20.
These decisions are usually made by the bank. Besides, it isn’t in the dealer’s interest to reduce the RV since they don’t benefit from it at all and the resulting higher payment makes it likelier to lose the deal.
The bigger question is why you chose an Escape to lease in the first place.
Most cars do not lease well. This is truer now than it has ever been.
So unless you are willing to push this boulder uphill, you need to look at other makes/models that lease better and offer more value per dollar.
Check out the “Share a Deal” and “Marketplace” sections of LH forums to see what’s leasing well and narrow down your search.
That wasn’t my question…
The question is… Which Value on the (Ford) sticker is supposed to be used for the MSRP to calculate RV… The Total MSRP (Blue Box) or the “Total before Discounts” number.
Did you read the thread? Your question was already answered.
I now see Joeblogs reply. Got it. Thanks!!
At First, I thought you were referring to Max_g’s reply which didn’t tell me anything other than, in his opinion, I’m leasing the wrong vehicle.
Thanks Jon!