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Ford Edge, Car Leasing, Car Buying, SUV
Oct 22, 2009 (9:27 pm)
I have a question about a Ford Edge 2010 lease "deal"...
2010 Ford Edge Limited FWD
Z Plan Pricing: $35,000.00 (I am not sure what the actual price is)
Doc Fee: $275.00 (I thought this was max $75)
Title, License: $400+ (They are not sure of the actual amount but will charge this and if it is less, I will get a refund)
Wear Care: $675.00 (I think this was the actual price)
Acquisition Fee: $595.00
39 month 10,500
$537 per month for 39 months
Residual is 47%
Interest Rate/Money Factor 4%
This "deal" is in Central Florida. After they told me one price and then I met with Finance to sign the papers, the price was different - higher of course. Even though I was told by the salesman the price included tax, finance told me the price went up because tax was not included.
I asked to see all the numbers. The finance person became very sarcastic and started belittling me, she was also rolling her eyes and making a lot of movements - very unprofessional. She started reading off the prices from her computer screen and tilted the screen so I could barely see it.
To get the price back to the original quoted price the salesman gave me, finance changed the warranty to 36 months to leave me without a warranty for the last 3 months of my lease.
I took out my phone and started searching the web to show them how I believed the Doc Fee is only supposed to be $75. The salesman came into the finance office as I was searching and wanted to know what I was doing. I told him and he became irate. The salesman and finance woman mentioned how I can trust them and I am getting a sweet deal. They are not making a profit - they are losing money. When I mentioned the spif(?) check, I was told the dealership gets that and they are personally losing money by putting this deal together.
They told me if I don't sign tonight, I could forget the deal. So, I got up and left.
The salesman called me 20 minutes later asking me to come back tomorrow night.
1) Is this a good deal?
2) Do I have to take wearcare?
3) Why am I being charged for a warranty?
4) Shouldn't I be charged the exact amount for registration and license fees?
5) What is the Residual and Interest Rate/Money Factor for Florida. I have good credit if that makes a difference.
6) Isn't the doc fee supposed to be $75?
7) What is Acquisition Fee?
Thanks in advance!
#509 of 790 Re: Lease Questions [rockymtnwulf]
Oct 23, 2009 (8:29 am)
I personally would not work with a dealer that did business like this. You have every right to know the full deatails of the deal before you sign anything and to walk away was the right thing to do. In order to see if your price was fair, can you provide a little more information?
1. Is "Z" plan pricing the price the dealer would give you on the vehicle before any rebates?
2. Did you put any money down?
3. Are rebates applicable to "Z" plan pricing or do you just get the "Z" without rebates?
4. What is the sales tax rate percentage in Flordia?
I'll use your provided numbers, make some assumptions and detail the lease calculations below:
Residual: $18290 (MSRP multiplied by 47%)
Money Factor: .00166 (4% divided by 2400)
Toal Dealer fees: $1945 (Doc fee $275, Title $400, Wear Care $675, Acq. fee $595)
Selling price of vehicle:
"Z" plan pricing $35000 minus Rebates $3500 = $31500
Depreciation Value: (amont of vehicle you will lease)
Selling price ($31500) plus dealer fees ($1945) minus residual ($18290) =$15155
Depreciation Payment on Lease:
Depreciation ($15155) divided by 39 (length of lease in months)=
Interest Payment on lease:
Selling Price ($31500) plus residual ($18290) multiplied by money factor (.00166)=
$82.65 per month
Base Payment on Lease:
Depreciation Payment ($388.59) plus Interest Payment ($82.65) =
$471.24 per month
Sales Tax Payment: (I am using 9%, that's what it is here in PA)
Base Lease Payment ($471.24) multiplied by slaes tax rate (.09) =
$42.41 per month
Total Lease Payment:
Base Lease Payment ($471.24) pus Sales Tax Payment ($42.41) =
$513.65 per month
These calculations assume you can use rebates and a sales tax rate of 9%. It also assumes you put no money down. If you put any OOP, deduct it from the selling price of the vehicle. I'm not sure on the Wear Care, I personally would not accept it. If you choose not to, deduct it from the dealer fees listed above to refigure the payment. One more thing to check is I was told by a dealer here in PA just yesterday that the residual on a 10,500 mile lease of an Edge SEL AWD was 50% and not 47%. 47% was for a 15K a year lease. This is becuase of the lower miles the vehicle would have at the end of the lease. Hope this helps some.
#510 of 790 Re: Lease Questions [wnuk]
Oct 23, 2009 (11:34 am)
I just picked up my 2010 Edge SEL AWD, MSRP $35,670. Payment is $297.81 on a 27 month, 10,500 mile per year lease. This includes 7% sales tax. Had to go about 50 miles away to get it. My local dealer was stuck at $372 a month on the exact same vehicle, exact same terms.
My advice is to shop around. The higher the MSRP, the lower they can go on sale price. (more money to play with). So on your Limited you better get a ton off that price. Go to the highest volume Ford dealer in your area. Tell them upfront that you do not want to mess around. Tell them you want their best sale price and it better be well below invoice and then you want the rebates deducted on top of that. Worst case scenario is they say they can't do it.
Some states LIMIT the amount a dealer can charge for a document fee and some states do not regulate it at all. I personally limit it to ZERO dollars as it is just extra dealer profit and every dealer who charges it will gladly waive it if you ask. It's just paper. Why should I pay $199 for paper? What's next, they charge you a light fee for sitting in the office with the flourescents on? A chair fee for waiting for 30 minutes for the finance guy to get his papers shuffled correctly? An ink pen fee for having to use their ink to sign the contract? Etc, etc, etc. They are already charging you for all this stuff. It's called selling you a vehicle. McDonalds doesn't sell you a Big Mac and then ask you to buy the container for an extra dollar and napkins for 50 cents each and another 50 cents for the bag. All that should already be figured into the price of the Big Mac.
#511 of 790 Re: Lease Questions [rockymtnwulf]
Oct 23, 2009 (12:35 pm)
Price the lease at 36 months -- no need for a extra warranty and you won't have to pay car registration at 36 months for the year when you only have it for 3 months
#512 of 790 Re: Lease Questions [chuck68516]
Oct 23, 2009 (2:11 pm)
What city are you in?? I have been quoted over $500 a month for a similar lease with Z plan pricing. Does your price include a down payment?
#513 of 790 Re: Lease Questions [wnuk]
Oct 25, 2009 (5:10 am)
A and Z Plan pricing is a tad better than X Plan pricing.
No money down.
Rebates are applicable just like X Plan pricing.
Sales tax is 6% here.
I called the dealership and told them to forget it. I just don't get it, the way the market is - why are they still playing their damn games. It is getting annoying.
This dealership is about 40 miles from me. There is a dealership extremely...A LOT closer - a couple of miles away. I went to them first and I was told...
A Ford Edge lease is approximately $700 - $800 per month. They told me it is that high because Ford is not in the leasing business and rather you finance the vehicle than lease. So Ford keeps their lease rates high to prevent people from leasing.
I have a car - a fairly new one. I want (don't need) a bigger and more comfortable ride. The Edge met my needs but I will not play their games and I really don't feel like playing these games anymore.
#514 of 790 Re: Lease Questions [cey1]
Oct 25, 2009 (5:11 am)
The same with me - $536 is the lowest I have been quoted.
#515 of 790 Re: Lease Questions [chuck68516]
Oct 25, 2009 (5:13 am)
Did you put any money down?
Was any extras thrown in such as Wear Care, Acquisition Fee?
#516 of 790 Re: Lease Questions [rockymtnwulf]
Oct 25, 2009 (9:10 am)
Just by getting rid of the wear care and using 6% sales tax I come up with a payment of $481.17 per month. Funny you should mention about the first Ford dealer you went to. First thing- he is badly mistaken and sounds like he just doesn't want to deal with leasing a vehicle. Secondly, I went to a Ford dealer on Tuesday this past week to get leasing prices on an Edge he had on the lot. I still have yet to hear back from him. A dealer like that won't get my business. I agree with you, as bad as it is in the auto industry right now, I'm amazed how some dealers still treat people. With the advent of the internet, so many more people are educated on car buying yet dealerships still come up with some crazy numbers sometimes.
On the other hand- I have also been getting lease prices from Chevy dealers on a new Traverse. Two dealers have been bending over backwards to get me the numbers I want- once they realized I can calculate my own figures using their pricing, residual, and money factors. Heck, I just had a sales manager yesterday admit to me he didn't know chevy was leasing again and he e-mailed me this morning (Sunday morning mind you) saying he is calling GMAC on Monday to get all their leasing info, he doesn't even have it. He did tell me that if the numbers I gave him are correct (they are based on another dealer I'm working on), he should be able to do the deal I'm looking for.
#517 of 790 Re: Lease Questions [wnuk]
Nov 09, 2009 (10:57 am)
Just a heads up: I was qouted the follwing information today on an Edge SEL AWD here in the Northeast Region-
27 Month lease rate with 10,500 miles per year
Residual of $53%
Money Factor is .0001 (.25%)
$2250 Red Carpet lease rebate
36 Month with 10,500 miles per year jumped to
Residual of 50%
Money Factor of .00166 (4%)
$2250 Red Carpet lease rebate.
I asked about the rebate as Edmunds.com is showing this additional rebate:
"$1,000 Promotional bonus cash is available towards the purchase of a new 2010 Edge. May be combined with other cash programs, APR or lease specials."
I was told there is nothing showing on Ford's end about this, only the $2250 Red Carpet Lease rebate. Anyone have any idea or knowledge of the $1000 rebate being shown on edmunds?