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Car Forum / Ford / Ford Explorer / February 2007Lease end question
I know we have some Ford technicians here that are very helpful, do we have any sales members here? My question involves lease end options. I'm not sure if I'm getting real answers from my dealer as it seems he is more interested in putting me into another lease where as I'd rather buy a used late model or find a practical way to buy the one I'm currently leasing. We have a 2004 Explorer Limited. It has all of the goodies and is a great (in our opinion) color combination. Basically we really would like to keep our own. The problem is that the buy out is about $3000 higher than what they are going for either used or at auction. Is there any way a dealer could take the vehicle back from us as if we are truly turning it in at lease end and then sell it back to us for market price? The dealer is saying no way and that they have to return it to Ford or sell it to us at the previously agreed upon lease end price. He may very well being telling the truth but the fact that he keeps completely side-stepping me regarding the idea of finding me a similar used one and pushing another lease makes me at least wonder. Any thoughts would be appreciated. I've been down this highway a few times. The bottom line is that Ford KNOWS they are going to take a loss on the vehicle with a residual that is 3grand higher than planned. (I think they even know that when they WRITE the leases but have no choice to keep the metal moving). That being said, they would rather take back the vehicle and sell it to one of their dealers at auction than sell it to you at a discount. Your dealer might buy it at auction or another might. It's very difficult for you, the consumer, to control how to get that vehicle back, and you very well might spend close to $3000 more than market (what you'd pay anyway) to buy it from a dealer who knows you are "hot" for "that" vehicle. In the end I just turned them in and moved on. Unfortunately leasing doesn't really make sense unless you plan to continue leasing every time a lease is up. On the other hand, if you had paid cash or financed the vehicle, you would have spent that $3000 upfront and it still would only be worth the paultry amounts that 13MPG SUVs are now worth (I have an '03 so misery loves company). So consider yourself 3 grand ahead of the game. I guess I'd say to buy someone else's used vehicle, because availability and price will be better than trying to chase your old bug smasher. As one last resort you MIGHT just tell the dealer you want THAT vehicle and they should buy at auction for you (and you'll pay a markup). Unfortunately many dealers will lie about what they bid and, again, you'll be close to the extra 3 grand you are trying to save. >I know we have some Ford technicians here that are very helpful, do we have >any sales members here? My question involves lease end options. I'm not [quoted text clipped - 12 lines] >the idea of finding me a similar used one and pushing another lease makes >me at least wonder. Any thoughts would be appreciated. Several years ago I tried to buy a used Explorer that I really liked. The dealer said it was a lease vehicle that had been turned in and he had to return it to Ford. He could not sell it to me. Don't know why Ford does it that way, but that's the way it is. >I've been down this highway a few times. The bottom line is that Ford KNOWS >they are going to take a loss on the vehicle with a residual that is 3grand [quoted text clipped - 36 lines] >>the idea of finding me a similar used one and pushing another lease makes >>me at least wonder. Any thoughts would be appreciated. For what it's worth, GM is the same way. My father wanted to buy a Park Avenue off lease that was worth 3-4 grand less than the residual. Again, they told him they'd rather give that price advantage to one of their dealers because it helps the dealer and many customers will end up leasing a new GM vehicle. I am sure they have run the numbers and know that they're ahead of the game by NOT letting the consumer get the benefit of buying a vehicle at market price (less than a planned residual). > Several years ago I tried to buy a used Explorer that I really liked. > The dealer said it was a lease vehicle that had been turned in and he [quoted text clipped - 56 lines] >>>the idea of finding me a similar used one and pushing another lease makes >>>me at least wonder. Any thoughts would be appreciated. > I've been down this highway a few times. The bottom line is that Ford KNOWS > they are going to take a loss on the vehicle with a residual that is 3grand [quoted text clipped - 79 lines] > > You are very knowledgeable regarding leases, I 've always wondered what the advantage is to a lease vs. a purchase. They are so complicated to me I can't tell what a good deal is. I only drive about 5000 miles a year would a lease be good for me? I'd like to drive a new car every 2-3 years. You could probably get a low mileage lease. It's not that complicated, really. Just shop the dealers against each other for the lowest cost for 3 years you want the vehicle for. Another approach is to buy a Honda or Toyota and just trade it in. They retain their value the best. Truthfully, 5000 miles a year is so miniscule that a new car every 3 is VERY costly when you figure the cost per mile. I get bored with cars too but unless you are rollin' in the dough I'd recommend keeping the car at least twice as long. >> I've been down this highway a few times. The bottom line is that Ford >> KNOWS they are going to take a loss on the vehicle with a residual that [quoted text clipped - 86 lines] > I can't tell what a good deal is. I only drive about 5000 miles a year > would a lease be good for me? I'd like to drive a new car every 2-3 years. > You could probably get a low mileage lease. It's not that complicated, > really. Just shop the dealers against each other for the lowest cost for 3 [quoted text clipped - 195 lines] >>I can't tell what a good deal is. I only drive about 5000 miles a year >>would a lease be good for me? I'd like to drive a new car every 2-3 years. Thanks for the info. I like your idea of buying a Honda or Toyota. It sure is a big loss to trade in an Explorer every 3 years with only 15000 miles on it. |
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