2021 Ranger XLT

[mda113]

First post ladies and gents and I've perused the forum for some time. Received a quote today from a Ford dealer and I have to say, I am less than impressed, insulted even. Quick backstory... I am currently in a 2018 Dodge Charger R/T lease through US Bank (first mistake) and I am 14,000 miles under my allotted mileage.

Figured my best bet was to buy vehicle from the leasing company and sell to a dealer... I know I can probably get more money on the private market, but I am just not up to the hassle of dealing with it. Frankly I want the deal to be as easy as possible. Anyone with any experience with US Bank knows that their buyouts are are a pain in the rear end. Basically three payoff amounts, one for me, one for a dealer putting me back into a US Bank lease and finally one for a dealer to be used as a trade. Well my payoff and the dealer using US Bank are close, within $200 and would roughly come to $22,500 including taxes and fees. The dealer to be used as a trade is $27,500... obviously a non-starter.

Long and the short of all that is I get a quote on a 2021 Ranger XLT, with Black appearance package and few other small options with an MSRP of $40,300. The dealer offered to pay me $25,000 for my trade after I paid it off, giving me essentially a $2,500 down payment. All seems good until this point. RV is 64%... Edmunds has it at 65%, still seems ok. Now the real issue is money factor. According to the Edmunds Ranger forums I should be seeing a MF of .00173 or 4.15%. The dealer however quotes me at .00452, yes 10.85% My FICO score is north of 800, so I should absolutely be getting Tier 1 credit rates. I mean is Edmunds just flat out wrong or is this dealer just being stupid? I'm in PA so the nor'easter hit us today and all dealerships closer to me are closed to compare this ridiculous MF. If this is indeed a fair MF, the Ranger may be out unfortunately... as bad as I want it.

Any advice or comments are appreciated. Stay safe all!

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[Robisten8]

If you have to take their financing to get the price, sign it and just refinance with your own credit union/bank. Two weeks after I signed at the dealer to take advantage of rebates, I was resigning (DocuSign) documents with my own credit union and saving 2% in APR. There's something called a buy rate. Example of how dealer financing works. Bank approves the buyer for say 2.9% for whatever months and then the dealer says "We got you approved for 4.9% for whatever months. It's completely legal and 99% of the people on this forum are completely unaware that they are paying more in APR than they were approved for. I have an ex-wife that would come home bragging about how much money she made after she screwed people in finance any given day on this very thing.

The exception is when manufactures offer 0% or rebates, but it's never both.

 

[PL8SWPR]

If you are talking finance rates, my credit union is offering 2.29% for 48-72 months.

 

[mda113]

If you have to take their financing to get the price, sign it and just refinance with your own credit union/bank. Two weeks after I signed at the dealer to take advantage of rebates, I was resigning (DocuSign) documents with my own credit union and saving 2% in APR. There's something called a buy rate. Example of how dealer financing works. Bank approves the buyer for say 2.9% for whatever months and then the dealer says "We got you approved for 4.9% for whatever months. It's completely legal and 99% of the people on this forum are completely unaware that they are paying more in APR than they were approved for. I have an ex-wife that would come home bragging about how much money she made after she screwed people in finance any given day on this very thing.

I appreciate the reply but your advice only applies to financing correct? Sorry, I should have added I was looking at leasing once again.

 

[Robisten8]

I appreciate the reply but your advice only applies to financing correct? Sorry, I should have added I was looking at leasing once again.

Correct, leases are a different story with buy rates and rebates. Residuals on the Ranger or any midsize truck are generally not that good.

 

[Trigganometry]

Really depends on the dealer and who they use. The dealer I used hooked up with a credit Union. After reviewing all the different options (Ford credit included) for me the credit Union was a better deal. No penalty for lump sum and a 2.6% rate. Shop around, you’ll be glad you did!

 

[Stevie Gee]

Just my thoughts, advice (I’ve bought or helped buy 40+ cars)......do NOT rush it. Even though it will exciting to get the new truck. Take your time.
1. Sell the Charger yourself...you will never make out trading in a car, unless there’s something seriously wrong with it and you’re trying to dump it AND the dealer doesn’t catch the problem.
2. In a few weeks...months the 2021s will be few weeks ...months older. Better cash back, rebates and interest rate incentives from dealers and/or from Ford will be available. Numerous “holidays” are ahead; Ford and dealerships will be having promotions.
3. With your FICO, shop around and have a loan option ready if the dealership or Ford is too high, once you are ready.

 

[jsphlynch]

I appreciate the reply but your advice only applies to financing correct? Sorry, I should have added I was looking at leasing once again.

Why do you prefer leasing instead of buying?

 

[mda113]

Why do you prefer leasing instead of buying?

I don't put a lot of miles on my vehicles as I live within 10 miles of my office. Not having to worry about mechanical issues should they arise is pretty much non-existent and even though I may not own it in the end, the amount I save over financing on the monthly payment makes up for that.

Maybe I look at it wrong, but leasing seems to work for me.

 

[MoldyTaco]

I was in the same situation as you with a lease through US Bank on a 2017 Dodge Challenger. I reviewed all the options like you and feel your pain with the hassle. When I went to the dealer for my Ranger they were reluctant to take my leased car even with low miles. I was about 9500 under on my lease mileage. After hours of back and forth I went to another dealer and they tried to get that same Ranger from the original dealer. Of course they said no; I assume they knew. Two days later the original dealer called and said they wanted to discuss options. Long story short, they took my lease and gave me a little more and took a little of the new lease. My credit score was lower than yours so I am sure they will work with you. I recommend making them chase you. If you can try other dealer, I would.

I also prefer to lease it has worked well for me over the years. However, I am planning to buy this Ranger when this lease is over. I am completely in love with my Ranger.

 

[mda113]

I was in the same situation as you with a lease through US Bank on a 2017 Dodge Challenger. I reviewed all the options like you and feel your pain with the hassle. When I went to the dealer for my Ranger they were reluctant to take my leased car even with low miles. I was about 9500 under on my lease mileage. After hours of back and forth I went to another dealer and they tried to get that same Ranger from the original dealer. Of course they said no; I assume they knew. Two days later the original dealer called and said they wanted to discuss options. Long story short, they took my lease and gave me a little more and took a little of the new lease. My credit score was lower than yours so I am sure they will work with you. I recommend making them chase you. If you can try other dealer, I would.

I also prefer to lease it has worked well for me over the years. However, I am planning to buy this Ranger when this lease is over. I am completely in love with my Ranger.

Yea my best option is to obviously get other dealers involved. We had the nor'easter yesterday so the dealers have been a little slow getting back but I have inquiries out to 4 or 5 different ones so we will see. After a bit more research last night on Edmunds, I suppose its entirely possible that the MF at the dealership I talked to yesterday is just horrible based on their location.

In the end, I'm confident I will figure it out and get me deal I am comfortable with... otherwise it doesn't happen. I had gone almost gone into a Tacoma and decided to look at the Ranger before I made the decision and I am happy I did. It's certainly a much nice truck.

What was the resolution with your Challenger? Did the dealer just end up buying it from US Bank? As you can see above, Ford's payoff is almost $5,000 more then mine, just another reason to avoid US bank in the future.

 

[MoldyTaco]

What was the resolution with your Challenger? Did the dealer just end up buying it from US Bank? As you can see above, Ford's payoff is almost $5,000 more then mine, just another reason to avoid US bank in the future.

Yeah, they bought it from US Bank. I think they gave me about $2900 over the payoff. I probably could have got more but I only had 10 days left on my lease when we signed. It's been six months and I have no regrets. I agree US Bank is a joke. I closed the account that I used for payments for the discount. I had a credit card through them too. I have canceled it too even though my credit took a small hit, but it was worth it to be free of them.

Stay safe with that storm. It looks crazy from what I have seen. I have friends in Long Island and they are sandbagging just in case.

 

[mda113]

Yeah, they bought it from US Bank. I think they gave me about $2900 over the payoff. I probably could have got more but I only had 10 days left on my lease when we signed. It's been six months and I have no regrets. I agree US Bank is a joke. I closed the account that I used for payments for the discount. I had a credit card through them too. I have canceled it too even though my credit took a small hit, but it was worth it to be free of them.

Stay safe with that storm. It looks crazy from what I have seen. I have friends in Long Island and they are sandbagging just in case.

Gotcha, yea I have one payment and have worked decent deals as far as selling price, basically at invoice for an XLT with the black appearance package. Maybe I can get them a little lower... just need to wait on Ford to dish out a few bucks for rebate and then we are talking business. Kind of at Ford’s mercy on that at the moment. Hopefully President’s Day or March brings something in rebate form. Lucky to have started planning ahead and have some time. I won’t be putting many miles on the Charger between now and then, so I should be in good shape should I choose to buy it and trade it in. Just seems to be the option that makes the most sense. No reason to give US Bank back a car worth more then the payoff when I can make it work for me.

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