January Lease Deal $7,500 bonus cash

[ElectricBuilder]

I signed last week of November
24 flash with max tow, power bored, spray on bed

36/15k $550 a month with $2,5k DAS, no tesla or ram rebate

Great deal. Curious how you guys are working these days....dealers don't seem so ready to deal right now.

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[WildBlue]

I signed last week of November
24 flash with max tow, power bored, spray on bed

36/15k $550 a month with $2,5k DAS, no tesla or ram rebate

May I ask what the residual value percentage on this lease is?

 

[WildBlue]

Sorry im not a that great how it works but heres the contract if that helps

Thanks for the information. So the residual value (RV) defines what the leasing company thinks the vehicle will be worth at the end of the lease, assuming you don't go over the allotted miles and normal wear and tear.

So, using your contract terms, it appears Ford Motor Credit thinks your truck will be worth 43149.65 after 3 years and 45035 miles. However, you are paid 61908.84 -- this is base price for the vehicle before rebates, taxes, down payments or other adjustments. Therefore, the RV% is 69.7% (43149.65 divided by 61908.84). So ask yourself this question: do you think a new vehicle, after 3 years and 45k miles, will only lose 30% of its value (100% - 69.7%)? I think you probably will agree that the value of the vehicle should be closer to 50% or lower after that time and mileage.

And so now we see how Ford is making these leases affordable -- by assigning a high RV%, thus lowering the amount you "finance" in a lease. What I don't see is the $7500 tax credit in your paperwork. That's probably already been factored into things (Ford is getting the credit in a lease, not you).

Here's a small glossary of lease terms.
Adjusted capitalized cost: the purchase price of the vehicles after taxes, fees, credits and other adjustments are done. This is the amount you are "borrowing" from the leasing company.

Residual value: the amount the vehicle will be worth at the end of the lease, assuming normal wear and tear and mileage. This can be expressed as a percentage of residual value in dollars divided by capitalized cost divided

Rent charge: the amount of interest you are paying for the amount being borrowed.

 

[NYCLABORER79]

Thanks for the information. So the residual value (RV) defines what the leasing company thinks the vehicle will be worth at the end of the lease, assuming you don't go over the allotted miles and normal wear and tear.

So, using your contract terms, it appears Ford Motor Credit thinks your truck will be worth 43149.65 after 3 years and 45035 miles. However, you are paid 61908.84 -- this is base price for the vehicle before rebates, taxes, down payments or other adjustments. Therefore, the RV% is 69.7% (43149.65 divided by 61908.84). So ask yourself this question: do you think a new vehicle, after 3 years and 45k miles, will only lose 30% of its value (100% - 69.7%)? I think you probably will agree that the value of the vehicle should be closer to 50% or lower after that time and mileage.

And so now we see how Ford is making these leases affordable -- by assigning a high RV%, thus lowering the amount you "finance" in a lease. What I don't see is the $7500 tax credit in your paperwork. That's probably already been factored into things (Ford is getting the credit in a lease, not you).

Here's a small glossary of lease terms.
Adjusted capitalized cost: the purchase price of the vehicles after taxes, fees, credits and other adjustments are done. This is the amount you are "borrowing" from the leasing company.

Residual value: the amount the vehicle will be worth at the end of the lease, assuming normal wear and tear and mileage. This can be expressed as a percentage of residual value in dollars divided by capitalized cost divided

Rent charge: the amount of interest you are paying for the amount being borrowed.

Thank you for explaining this to me, i appreciate it taking the time to break it down and explain all the details. This is good to know. Well done!

 

[Its PJ Bia]

Has anyone been able to get one of these lease deals and have the dealer ship a truck from another dealer? I'd like to get this deal, but finding a flash with the 9.6kw pro power has me looking at other states.

 

[NikonJim]

Has anyone been able to get one of these lease deals and have the dealer ship a truck from another dealer? I'd like to get this deal, but finding a flash with the 9.6kw pro power has me looking at other states.

https://www.fordoflondonderry.com/w...ester-nh-7d79aca90a0e0a90410d65dabe8e7796.htm

Not a Flash, but a Platinum for $80K. Not sure what rebates are available. It’s in New Hampshire

 

[NikonJim]

https://www.fordoflondonderry.com/w...ester-nh-7d79aca90a0e0a90410d65dabe8e7796.htm

Not a Flash, but a Platinum for $80K. Not sure what rebates are available. It’s in New Hampshire

Just saw this on it. So I guess $80K is with discounts.

PRICE IS DEALER DISCOUNT MINUS DEALER CASH. FORD POWER PROMISE DOES NOT QUALIFY AT THIS PRICE POINT. IF YOU WOULD LIKE TO TAKE ADVANTAGE OF THE FORD POWER PROMISE YOU MUST ADD BACK IN $7500 IN DEALER CASH THAT IS BEING APPLIED IN THE DISCOUNTS

 

[ElectricBuilder]

Thanks for the information. So the residual value (RV) defines what the leasing company thinks the vehicle will be worth at the end of the lease, assuming you don't go over the allotted miles and normal wear and tear.

So, using your contract terms, it appears Ford Motor Credit thinks your truck will be worth 43149.65 after 3 years and 45035 miles. However, you are paid 61908.84 -- this is base price for the vehicle before rebates, taxes, down payments or other adjustments. Therefore, the RV% is 69.7% (43149.65 divided by 61908.84). So ask yourself this question: do you think a new vehicle, after 3 years and 45k miles, will only lose 30% of its value (100% - 69.7%)? I think you probably will agree that the value of the vehicle should be closer to 50% or lower after that time and mileage.

And so now we see how Ford is making these leases affordable -- by assigning a high RV%, thus lowering the amount you "finance" in a lease. What I don't see is the $7500 tax credit in your paperwork. That's probably already been factored into things (Ford is getting the credit in a lease, not you).

Here's a small glossary of lease terms.
Adjusted capitalized cost: the purchase price of the vehicles after taxes, fees, credits and other adjustments are done. This is the amount you are "borrowing" from the leasing company.

Residual value: the amount the vehicle will be worth at the end of the lease, assuming normal wear and tear and mileage. This can be expressed as a percentage of residual value in dollars divided by capitalized cost divided

Rent charge: the amount of interest you are paying for the amount being borrowed.

It's pretty well publicized that Ford does not and will not apply the $7,500 credit because they are capturing it themselves. The "discount" on the truck is likely close to that tax credit. Why they just wouldn't apply the tax credit is beyond me. They most think they are getting better interest/results by saying they are discounting the truck.

 

[Its PJ Bia]

Heres the sheet for the current lease deal. I'm more than likely not trading in my current truck because I can sell it for more elsewhere. Otherwise, how do these numbers look? This is a non x-plan deal. I'm seeing if they will knock $2000 off the sale price to get me close to the current monthly payment without a trade in.

 

[ElectricBuilder]

Heres the sheet for the current lease deal. I'm more than likely not trading in my current truck because I can sell it for more elsewhere. Otherwise, how do these numbers look? This is a non x-plan deal. I'm seeing if they will knock $2000 off the sale price to get me close to the current monthly payment without a trade in.

This is about right on with what I have been getting quoted in Boston MA area. Your "trade" is offsetting the lease by about $3K. Rule of thumb is $30 per $1K of cash/trade so your payment is likely $656.50 without the trade or any money down.

Does this include excise or sales tax? If it doesn't, might be a little high.

 

[Its PJ Bia]

This is about right on with what I have been getting quoted in Boston MA area. Your "trade" is offsetting the lease by about $3K. Rule of thumb is $30 per $1K of cash/trade so your payment is likely $656.50 without the trade or any money down.

Does this include excise or sales tax? If it doesn't, might be a little high.

Yeah it includes the 5.5% sales tax.

 

[broncoaz]

Looks close to what I got with X plan last month. I had $11K in incentives but my cap cost on a little more expensive truck was lower because of X plan.

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