Lease Pmt

mortock

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I checked on what mine will cost to lease, $506/mo for 24 mo, or $431/mo for 36 mo. Why so high? It's a extended cab 4x4 XLT with only the towing package as an option.
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rangerdanger

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I checked on what mine will cost to lease, $506/mo for 24 mo, or $431/mo for 36 mo. Why so high? It's a extended cab 4x4 XLT with only the towing package as an option.
A lot of details are missing.
  1. What's the total amount being leased?
  2. How many miles are you driving?
  3. How much is your down payment?
  4. What is the APR or Money Factor?
  5. Is sales tax and registration included in the monthly payment?
I see a 36 month national lease deal for $279/month before tax for a 4x2 SuperCab XLT. Of course adding 4x4 and a towing package will increase the monthly price.
 
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mortock

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Ok, thanks. Here's more info.

1. total amount $34,500
2. Miles 10,500/yr
3. No money down
4. No idea on APR. It's going to lease through the dealer
5. Sales tax and registration will be paid up front.
 

rangerdanger

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Ok, thanks. Here's more info.

1. total amount $34,500
2. Miles 10,500/yr
3. No money down
4. No idea on APR. It's going to lease through the dealer
5. Sales tax and registration will be paid up front.
This is what I got when I used your zip code and the details you provided. Keep in mind I could only build your truck to $33,630, so I must be missing some options.

I think your quote was spot on. APR is about 6% and non-negotiable.

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khyros

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Ok, thanks. Here's more info.

1. total amount $34,500
2. Miles 10,500/yr
3. No money down
4. No idea on APR. It's going to lease through the dealer
5. Sales tax and registration will be paid up front.
You also need the residual value. They're somewhere typically around .66 or so for a 3 year deal. Which means that at the end of the 3 years, the truck is worth 66% of the MSRP. The difference is what you're actually financing in the lease. So a sticker price of 34,500 with a .66 residual means that at the end of the lease it'd be worth $22,770. Which means you're paying for $11,730. Assuming 0% interest (it's called a money value or something, but is essentially interest) that would make your monthly payments 325.83.

To approximately get to your quote of $431 36mo lease, you're paying 15,516, which means they're quoting a residual value of .55. On the two year, they're quoting .65 residual.


Compare against a 2018 Chevy Colorado quote from a dealer:
.00167 and 60% (36/12) or 58% (39/12)
So the .00167 is the money value I was talking about, iirc you multiple by 25 to get the APR equivalent (4.175% - this is how the dealers make money on leases). And the 60% residual value is 5% higher than the .55 I calculated on your quote. But the .55 is actually lower than reality since I'm ignoring interest. A rough back calculation using the .00167 rate from the Colorado shows that you're paying $1620 in interest, so only 13,900 on the truck, which means the residual is .60.


Huh, so it seems to actually be in line with the Colorado rates. But at those numbers, I wouldn't lease it if it were me, those are nearing actual car payment numbers.
 


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mortock

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Yes, it is close to car payment numbers. It might be better to buy than to lease. Hmm, maybe see if the F-150 is a better deal on a lease. Last Ranger I leased was a 2010 model and it was only $220 for 2 yrs. I guess inflation is high. I can get an escape for $220 now on a 2 yr lease. That's why the ranger seemed so high. It is what it is, I guess. Just have some decisions to make. The truck is supposed to be delivered to the dealer on Feb 17th. Didn't put anything down on it, so walking away is an option.
 

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I work at a dealership and the residual value on the ranger is really good. The only thing that kills it is the rate that ford quotes on it. I expect it to get better in the next couple months. The programs are set to reset in April but I have a feeling new incentives will come out sooner.
 

WXman

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$400+ on a lease is insane. That means they are giving you a terrible residual value OR they are hiding a ton of money in the deal and screwing you over.

If FCA can lease Wranglers and Ram 1500s for $279/month and still make good profit then there's no excuse for Ford or GM to be getting double the money on a lease deal for their similar product.
 

rangerdanger

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$400+ on a lease is insane. That means they are giving you a terrible residual value OR they are hiding a ton of money in the deal and screwing you over.

If FCA can lease Wranglers and Ram 1500s for $279/month and still make good profit then there's no excuse for Ford or GM to be getting double the money on a lease deal for their similar product.
Have you seen Tacoma and Colorado leases? They are pretty terrible as well considering the resale value on those vehicles.

You have to compare midsize to midsize, not midsize to fullsize or midsize to Jeep.
 

WXman

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Have you seen Tacoma and Colorado leases? They are pretty terrible as well considering the resale value on those vehicles.

You have to compare midsize to midsize, not midsize to fullsize or midsize to Jeep.
Yes, Tacoma leases were $289/month...but I decided to go with the Jeep instead.

I don't know about Colorado because after being stranded by GM trucks 3 times in 3 years, I'll never touch another one.
 

rangerdanger

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Yes, Tacoma leases were $289/month...but I decided to go with the Jeep instead.

I don't know about Colorado because after being stranded by GM trucks 3 times in 3 years, I'll never touch another one.
And I'm assuming the $289/month was with $3,000 down. Sneaky how that's only mentioned in the fine print.
 

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I work at a dealership and the residual value on the ranger is really good. The only thing that kills it is the rate that ford quotes on it. I expect it to get better in the next couple months. The programs are set to reset in April but I have a feeling new incentives will come out sooner.
Exactly. I asked for lease calcs and noticed the Interest rate was 6% ( I have 835 FICO) Thousands on the lease in interest. I decided to Put down $30K and finance the rest. I will pay it off in a couple of months. We did lease a 2017 CRV exl NAV. iT WAS A NO DOWN $350 MONTH 12k LEASE. We are going to buy it out as current lease rates on CRV are more.
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