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Ford Escape Lease Questions

220 messages,  Last post on Jun 19, 2013 at 7:54 AM

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What is this discussion about? Ford Escape, Car Leasing, SUV

    

Messages Page 1 of 22

#1 of 220 Ford Escape: Lease Questions by Car_man HOST

Aug 31, 2005 (3:54 am)

Hi everyone. Please use the following discussion to post any questions that you have about leasing a Ford Escape. Thanks.
 
Car_man
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#2 of 220 Re: Ford Escape: Lease Questions [Car_man] by crg4

Sep 01, 2005 (10:03 am)

Replying to: Car_man (Aug 31, 2005 3:54 am)
Car_man,
 
Having a devil of a time calculating a reliable lease quote on a 2005 Escape XLS (FWD, 4 cyl). There are 2 things that are fouling me up:
 
1) How do I figure in the current $2000 cash back promo currently being offered?
2) What would constitute a reliable money factor and residual value for this SUV?
 
I reside in zip code 11209.
 
The bottom line monthly payment I calculate is: $332.05 (taxes paid up front). This is based upon a residual value of .53 and 9% interest rate. I used $18,685 as the negotiated price but am quite honestly not sure if this constitutes a "fair" deal.
 
Any input you have would be greatly appreciated. Thanks in advance!
 
Rob

#3 of 220 Re: Ford Escape: Lease Questions [crg4] by crg4

Sep 01, 2005 (11:29 am)

Replying to: crg4 (Sep 01, 2005 10:03 am)
Yeesh!
 
Re-examining my math, I see that my numbers are way too generous. Changing the residual to .55 and 4% interest rate, I came up with a bottom line monthly payment of $259.97 (taxes not included).
 
Also, to clarify, the negotiated price of $18,685 includes the destination charge. Again, your thoughts are greatly appreciated!

#4 of 220 Re: Re: Ford Escape: Lease Questions by Car_man HOST

Sep 07, 2005 (3:29 am)

Hi crg4. Ford actually reduced its customer cash on the 2005 Escape from $2,000 to $1,000 this morning. Don't worry though because when it did so, it introduced a $1,000 bonus for vehicles that are financed or leased through Ford Credit. Since you are leasing, effectively you will be eligible for the same $2,000 total cash allowance. Normally you would need to take this cash into account when negotiating your Escape's selling price, but since Ford is providing employee purchase prices on the 2005 Escape to everyone these cash incentives should be automatically deducted from your truck's capitalized cost.
 
As far as the lease program that is available on this truck goes, the last time that I saw Ford Credit's lease rate and residual value for a 36 month, 15,000 miles per year lease of a 2005 Escape XLS 2WD they were 7.25% and 43%, respectively.
 
Car_man
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#5 of 220 Leasing an 06 Escape XLT by charlotte7

Jan 05, 2006 (9:41 pm)

I just saw Ford's lease deals for X-plan holders today on the 06 V6 Escape XLT with moonroof/Bose stereo. They list the deal as $250 per month with $999 down plus TTL. That sounded great, and might make leasing more interesting to me--I've never leased before, but it might work well for me as I really do not drive that much (8K a year) and don't want a high car payment. I would also like a newer car more frequently.
 
So, I contacted my favourite sales rep at the local Ford dealer for details on this plan. She arrived at a final monthly payment of $294.34 in addition to the $1000 down. She claims this payment includes TTL on a vehicle whose MSRP is $24,600, X-Plan price or net capitalized cost is $23,192.96. She says the "total before discount" on which the residual is calculated is $25,185.
 
The money factor (she called it the APR) is 1.25%. Is that good or bad, Car_man? I don't really understand why she's calling it the APR.
 
I think the "total before discount" has to be wrong, as my calculations of the net cap cost put it at $21,192.96 which includes the $1000 "lease cash" Ford is offering and the required $1000 down payment. If so, that's over $4000 in TT&L, which doesn't seem right.
 
It's my understanding that leasing a car was just like purchasing one in terms of how you negotiated the price. If that's the case, Ford is offering an additional $1500 in cash back to regular purchasers of the Escape. Could I expect to get the dealership to knock this money off the net capitalized cost, too? If I was just plain buying the truck, my price before TT&L would be $19,692.96. I'd like to negotiate a lease based on that price. Am I crazy to think that's possible?
 
Thank you for your advice, Car_man. I don't know much about leasing but am trying to give myself a crash course.
 
thanks, Charlotte

#6 of 220 Re: Leasing an 06 Escape XLT [charlotte7] by Car_man HOST

Jan 07, 2006 (6:21 pm)

Replying to: charlotte7 (Jan 05, 2006 9:41 pm)
Hi there Charlotte. Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.
 
Ford Credit uses actual interest rates to calculate the interest portion of lease payments, instead of the money factors that most other banks use. This actually makes it easier to tell how good a rate you are getting. If you want to convert the 1.25% lease rate that you were quoted to lease this truck (which is very good BTW) into an approximate money factor equivalent, divide it by 2400. So a lease rate of 1.25% is equal to a money factor of around .00052.
 
As far as the cash incentives that are available on leases of this truck go, the $1,500 customer cash that Ford is currently providing on the 2006 Escape is not compatible with leases through Ford Credit. As you mentioned, there is a $1,000 bonus for leasing this model through Ford Credit right now though. Also, Ford is running a special program on the '06 Escape that waives the first payment on any lease or finance contact through Ford Credit right now.
 
Good luck and let me know if you have any other questions.
 
Car_man
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#7 of 220 Leasing an 06 Escape XLT by bpac

Jan 12, 2006 (1:45 pm)

You should be able to lease an escape for Just under 300 a Month. If you hit them hard it may be less. I havee seen Explorer leases even cheaper but they guzzle gas

#8 of 220 Re: Leasing an 06 Escape XLT [bpac] by rws0131

Jan 12, 2006 (6:20 pm)

Replying to: bpac (Jan 12, 2006 1:45 pm)
does anyone know the residuals for the escape? 24 month and 36 month? (12k a year)

#9 of 220 Lease price on a 06 Escape Limited by lucasperin

Jan 14, 2006 (9:19 am)

I've just been offered 1750 down + 331.75/mo on a '06 Escape Limited + comfort + moonroof + safety for a 36 month / 12k lease. These are out of the door prices - they include a 6% tax.
 
Seems good enough, I'm taking it.

#10 of 220 Re: Leasing an 06 Escape XLT [rws0131] by Car_man HOST

Jan 20, 2006 (4:55 am)

Replying to: rws0131 (Jan 12, 2006 6:20 pm)
Hi rws0131. Ford Credit's current 24 month, 12,000 miles per year residual value for the 2006 Escape XLT 4WD is 61%. Its current residual for a 36 month, 12,000 miles per year lease of this truck is 53%.
 
Car_man
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