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View Full Version : Explorer Lease - Good Deal


PeteS
04-22-2005, 09:48 AM
My fiance and I are leasing an '05 Explorer XLT, and we've been quoted a rate of $417 per month, with $0.00 down. It'll be a 36 month lease (3 year), with 15,000 miles per year allowed.

This is using the Ford X-Plan, and some rebates, which brings the invoiced price down to $29,000 from around $32,000. I'm new at the leasing thing, but tried to do some research and shop around. Does that per month lease number sound about right?

jsonova99
04-22-2005, 09:55 AM
What would cost to buy it? That sounds a little high, but again, I've never done a lease on a car before. Just make sure that you aren't almost paying for it.

aprgriggs
04-22-2005, 10:36 AM
lease can be good but this sounds alittle high. I would look into buying with all of the incentives it just works out better most of the time.

lakes Rick
04-22-2005, 10:53 AM
Unless you have money to burn, leases are always a poor decision in my opinion... With car rebates of up to $10,000 being advertised I think you are getting it without KY........

erkoehler
04-22-2005, 10:59 AM
Buy a car, don't lease it....

east tx skier
04-22-2005, 11:04 AM
My payments on my '01 Expedition (purchased last year) are $269 per month. I don't envision a scenario where I would lease a car.

OhioProstar
04-22-2005, 11:06 AM
So if the x-plan gets you to $29k, the $3k in national rebates that are shown on the ford website would get you to $26k....that would be around $500/month if you pay the tax and title. You then would not have to worry about mileage. If you don't drive much more than 13k per year and have no intention to purchase the vehicle at the end of the term...then a lease might make sense. If you plan to drive more or to buy it at the end it makes no sense at all.

Tom023
04-22-2005, 11:13 AM
A lot of factors go into the lease vs. buy decision, no one situation is best for all, and a lot has to do with your retention decision at the end of the lease as to what works best for you. In short, you need to run the numbers out, considering the cost factor and residual values. One thing people frequently miss when being quoted a monthly lease payment is the sales tax. It's handled differently in each state, but it can raise a monthly payment $20-40/month on a vehicle such as an Explorer over the quoted monthly rate.

jsonova99
04-22-2005, 12:04 PM
Another interesting thing with leases, get the car early in the model year, the exact opposite of buying. I was told that dealers will attach their overhead costs of keeping the vehicle on the lot towards lease deals. This number just gets higher as the car sits longer. I'm not sure how they do this, so don't take this as gospel. It does make sense though from an accounting standpoint.

ski36short
04-22-2005, 12:30 PM
Another interesting thing with leases, get the car early in the model year, the exact opposite of buying.

Not sure about the accounting thing (not my area) but the residual values drop continually throughout the year and by the end of the model year they're relatively low so you have more to pay on a lease. I'd ideally prefer buying but for my case it doesn't make a whole lot of sense, seeing how I rarely drive mine and got a smokin' deal on my Tahoe.

Pete (or anyone), I might be able to get you GM supplier price if there's a GM that interests you. I would have to think that in this market that should be within negotiating range but incentives still may pile on top of that...

bcampbe7
04-22-2005, 12:42 PM
I have never understood the appeal of leasing. I guess if you are putting nothing down and do not have a trade it may be a "good" deal.

:twocents:

PeteS
04-22-2005, 01:14 PM
It's long and difficult argument, between lease and buy. Some people prefer one over the other, we choose lease. Right or wrong, who knows. We just found out that we are getting A-Plan, and will end up paying roughly $13,000 to have the truck for three years.

If we were to purchase the vehicle out-right now, and spend roughly $29,000 on the car, what will the depreciation do to the retail value of the car over three years? Meaning hypotheticaly, if we bought the car now, and sold the vehicle 3 years down the road, would we get more than $16,000 for it?

Again, who knows, I'm not a used-car salesman nor a Blue Book expert, but if we could, then (with a lot of other things taken into consideration) leasing would not be the most wise decision, financially speaking.

east tx skier
04-22-2005, 02:31 PM
To add to my statement above, short of a financial windfall, I can't see myself buying a new vehicle either. Far too much depreciation for me.

jsonova99
04-22-2005, 02:54 PM
To add to my statement above, short of a financial windfall, I can't see myself buying a new vehicle either. Far too much depreciation for me.

I have a neighbor, and I still can't figure this out, who buys a new car literally every month. I have been in my house for about a year and a half, and I swear to you, no exageration, he's had 17 cars for himself and 5 or 6 different ones for his wife and 5 different RVs, all brand new. I don't think some of the RVs were even used between buying new ones. I just don't get it. My neighbors and I crack up, every few weeks when something new turns up. I have never seen anything like it.

east tx skier
04-22-2005, 03:49 PM
Maybe he's a pharmaceutical rep? Our friends who peddle the pharmies get new rides on a pretty regular basis and charge their gas to the company.

tex
04-22-2005, 03:59 PM
Maybe he's a pharmaceutical rep? Our friends who peddle the pharmies get new rides on a pretty regular basis and charge their gas to the company.
We get kids in all the time who "peddle pharmaceuticals". Their rides are usually not that great. They do beleive in leasing-"I just rented that car from a dope fiend" is a common expression.

T Scott
04-22-2005, 04:04 PM
Maybe he's a pharmaceutical rep? Our friends who peddle the pharmies get new rides on a pretty regular basis and charge their gas to the company.

I wish Doug!!! I have been a pharmaceutical rep for 8 years and we do not get cars that often. My current co. car is a Jeep Liberty. It is an 03 with close to 57k miles on it. I order a new car at 60k miles. Most pharm companies have their reps keep their cars for 60-65k miles or 3 years, whichever comes first.

6ballsisall
04-22-2005, 04:44 PM
My fiance and I are leasing an '05 Explorer XLT, and we've been quoted a rate of $417 per month, with $0.00 down. It'll be a 36 month lease (3 year), with 15,000 miles per year allowed.

This is using the Ford X-Plan, and some rebates, which brings the invoiced price down to $29,000 from around $32,000. I'm new at the leasing thing, but tried to do some research and shop around. Does that per month lease number sound about right?

Whats the residual value? This seems high but I could be wrong. Also what is the money factor?

east tx skier
04-22-2005, 04:47 PM
I wish Doug!!! I have been a pharmaceutical rep for 8 years and we do not get cars that often. My current co. car is a Jeep Liberty. It is an 03 with close to 57k miles on it. I order a new car at 60k miles. Most pharm companies have their reps keep their cars for 60-65k miles or 3 years, whichever comes first.

Yeah, I know, I was just messing around. We've got two in our family and two that are close friends. Usually it's every 3 years or so depending on how much they drive.

Ron Grover
04-25-2005, 09:30 AM
I have never leased a car before and never considered it either. Always had a suspicion that anything that a car dealer is pushing that hard is not going to be to the benefit to the consumer or me.

Just something inherently distrustful about a salesman telling me what is in my best interest.

Just my $.02

6ballsisall
04-25-2005, 09:56 AM
Leasings not all bad, for some situations they make good sense. I personally have done both. Where leases are bad is people who really can't afford the vehicle can now conceivable bite off more than they can chew.

Buy what appreciates
Rent what depreciates!

Leroy
04-25-2005, 10:13 AM
I've always kept a car for more than 10 years and normally keep for 15 or whenever it quits. Only exception was the Ford Windstar, new in '95$24k, seven years later sold $3.5k and already had rebuilt engine. My one and only experience with Ford, never again Ford, sorry Brad.

Everyone's situation is different. Pay cash and run until the wheels fall off. It's the only way I know not to take a bath.

east tx skier
04-25-2005, 10:36 AM
I agree with Leroy about driving them 'til the wheels fall off. I swore off Fords after my Mustang, but came back with the expedition after watching my wife put 190K miles and counting on her explorer with only basic maintenance.

erkoehler
04-25-2005, 03:16 PM
I have 17K on my Durango, and so far so good!