Do these lease numbers seem right?

[NorthShoreMaverick]

Long story short my maverick came in this weekend so I went to go look at it and discuss initial numbers.

I want to lease this vehicle so I wanted to get the rates for a lease. First red flag was that my dealer said the lease would be through a credit union and not Ford Credit as the rates were much better.

I was given a monthly lease of 399 at 36 months with $1500 down which is my deposit of 500 a rebate of 500 from first responder program and 500 of my own cash. This price would include taxes and fees and not dmv fees of around $200 more.

But this doesn’t make sense to me at all when I look at my purchase price and residual price:
$31360 - $22452 = $8908. $8908 | 36 months = $247. Say we add tax on $21.61. $268.61. What’s the percentage rate around 50%?!?


Any help would be appreciated as I’m supposed to pick up truck tomorrow.

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[JASmith]

They should give you a full lease information sheet which you can post here. For reference, I'm considering picking up a Mercedes GLB for $307 a month, so that seems high.

 

[lastwgn]

I have leased 4 vehicles in the past. All Mazda's, and all with Mazda's finance partner at the time. I look at only one thing when leasing. What is the total of the downpayment, plus all lease payments, plus the residual buyout to purchase the car at the end of the lease. In all 4 cases, the total of all of those payments has been within $1,000 of the MSRP on the car. And with Mazda, generally speaking, they have never played the rebate game much in the past. As a result, the sum of the total payments on a three year lease would be very close to MSRP, meaning that the interest factor was very low, and the residual buyout reflects the payments made to date.

On the flip side, I have had sons-in-law lease vehicles from GM and Chrysler. In both cases, against my recommendation, they did not look at those totals and wind up either having to deal with end of lease issues or, if they need to buy the car at the end of the lease (which one did this year because of not having any alternatives available), essentially paying more then $4,000 over original MSRP.

Bottom line, I am not sure how the leases from Ford compare, but I expect they are closer in structure to GM and Chrysler than to my experience with Mazda. Which is why the GM/Chrysler/Ford captive finance companies make so much money.

Not knowing at all what a Ford lease looks like, when (if) I ever get my Maverick, definitely will not be a lease. My big concern is always potential shenanigans with condition and additional charges at the end of the lease. I want the purchase option to be - as in the case of my Mazda leases - a "no brainer", thus taking miles and condition completely off the table.

 

[BobB]

Sales tax, destination & delivery fees, also depends on miles per year.
Sounds a bit high, but not out of this world.

 

[n0maverick]

your residual number seems way off. I would expect it closer to $18-19k with typical residual values on 36 mo and that would match up more with the payment you were given.

 

[FriscoTXJoe]

My son worked at a very reputable Honda dealer. Largest volume dealer in Texas. Still, sales manager tried to rip people off with trick financing.

Get some help and make it right. Good luck. Trust few car dealers.

 

[NorthShoreMaverick]

I have leased 4 vehicles in the past. All Mazda's, and all with Mazda's finance partner at the time. I look at only one thing when leasing. What is the total of the downpayment, plus all lease payments, plus the residual buyout to purchase the car at the end of the lease. In all 4 cases, the total of all of those payments has been within $1,000 of the MSRP on the car. And with Mazda, generally speaking, they have never played the rebate game much in the past. As a result, the sum of the total payments on a three year lease would be very close to MSRP, meaning that the interest factor was very low, and the residual buyout reflects the payments made to date.

On the flip side, I have had sons-in-law lease vehicles from GM and Chrysler. In both cases, against my recommendation, they did not look at those totals and wind up either having to deal with end of lease issues or, if they need to buy the car at the end of the lease (which one did this year because of not having any alternatives available), essentially paying more then $4,000 over original MSRP.

Bottom line, I am not sure how the leases from Ford compare, but I expect they are closer in structure to GM and Chrysler than to my experience with Mazda. Which is why the GM/Chrysler/Ford captive finance companies make so much money.

Not knowing at all what a Ford lease looks like, when (if) I ever get my Maverick, definitely will not be a lease. My big concern is always potential shenanigans with condition and additional charges at the end of the lease. I want the purchase option to be - as in the case of my Mazda leases - a "no brainer", thus taking miles and condition completely off the table.

Doing the math on your formula above I get $38,316. My vehicle msrp is 31,360. That’s an issue.

Not sure what to do as I was hoping to pick up the car tomorrow. Not looking too good.

 

[The Weatherman]

Can you use the ford build site and select the lease option to see what fords lease would be on your build?

 

[NorthShoreMaverick]

Can you use the ford build site and select the lease option to see what fords lease would be on your build?

Wasn’t able to build it exactly but got it within 10 bucks and we are looking at 366. High still.

 

[The Weatherman]

Wasn’t able to build it exactly but got it within 10 bucks and we are looking at 366. High still.

That should tell you something about their lease offer.

 

[lastwgn]

What I was never able to find on the Ford website regarding the lease option is the end of lease purchase price. I think you can find the residual value being utilized to calculate the lease payment, but the residual value and the purchase price on the purchase option are not necessarily the same thing. As noted above, in my experience with Mazda leases they were the same. In my sons-in-law experiences with GM and Chrysler, the end of lease purchase price and the residual value were definitely not the same. Not being able to easily find the lease end purchase price for the Ford lease, I determined it would not be a good financial move for me to lease. Based on what OP is indicating, at least in the first lease he is looking at, it might not be the most attractive option. Better off purchasing with an 84 month loan and if it is too heavy a price, look to sell the Maverick at a profit.

 

[NorthShoreMaverick]

Any more input on this? I’m going to the dealership this evening and want to make sure I’m prepared.

Again my reason for leasing is that I want to keep the monthly payments low, this is a brand new vehicle and I’m always iffy on owning a brand new vehicle/model and my fiancé and I will most likely want to trade in this vehicle for a SUV in three years.

However the choice to finance seems like the better deal even though it’s a little bit more per month for a 84 month finance term. We would still want to move into a SUV but my be able to do that sooner if we own the truck and sell it.

Last option is selling my 2013 Honda Accord and using that profit towards a new SUV and keeping the truck on a finance or lease plan.

Thoughts?

 

[FakeCowboy]

Your numbers are high, the residual on the maverick is pretty good. I was quoted $330 a month for 36 months with 12k per year, all taxes fees included with zero down on an XL with a sales prices of ~$26k

 

[FriscoTXJoe]

I think your bigger problem is paying for a car over 7 years. With all due respect, if you can't pay off a new 30K car in 4 years think about getting a used vehicle and saving your money for a purchase down the road. Heading to a dealer right now isn't the right path.

 

[Darnon]

71.6% residual sounds exceptionally high. Checking on Edmunds an AWD XLT should be more like 62%. Also Ford's money factors on the Maverick aren't spectacular; like 3.6% APR. Even with a more favorable money factor like 2.88% Edmunds and Leasehackr are giving me ~$400 like you were quoted.

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