jmkprof Posted June 6, 2011 Report Share Posted June 6, 2011 I saw a lease advertisement today for a $219/mo 2011 Ford Edge SEL FWD with SYNC, Leather, and MyFord Touch. 24 months. Ford Credit Red Carpet Lease $4953 Cash Due at Signing. My question is, how do you calculate what this means about the actual car price (NYC area) so you can negotiate that you want this offer but with a couple of additions (Vista roof and Nav)? I am new to leasing, but what I've read is that the monthly lease amount is calculated based on the negotiated car price (Cap cost), lease rate and residual value. Given a set of numbers can you use the lease offer to determine what they're pricing the car? Quote Link to comment Share on other sites More sharing options...
ziggy86 Posted June 6, 2011 Report Share Posted June 6, 2011 I saw a lease advertisement today for a $219/mo 2011 Ford Edge SEL FWD with SYNC, Leather, and MyFord Touch. 24 months. Ford Credit Red Carpet Lease $4953 Cash Due at Signing. My question is, how do you calculate what this means about the actual car price (NYC area) so you can negotiate that you want this offer but with a couple of additions (Vista roof and Nav)? I am new to leasing, but what I've read is that the monthly lease amount is calculated based on the negotiated car price (Cap cost), lease rate and residual value. Given a set of numbers can you use the lease offer to determine what they're pricing the car? Good question, I want to lease an Edge as well and would like to know the answer to this as well. If you don't plan on buying the car after the lease is up am I right to think that it does not matter what you negotiate the selling price at? Quote Link to comment Share on other sites More sharing options...
akirby Posted June 6, 2011 Report Share Posted June 6, 2011 Good question, I want to lease an Edge as well and would like to know the answer to this as well. If you don't plan on buying the car after the lease is up am I right to think that it does not matter what you negotiate the selling price at? No, that's not correct. As I explained in the other thread, the lease is essentially the depreciation during the time you drive the car plus interest. Depreciation is your purchase price minus the residual value. Lowering the purchase price lowers the depreciation as does raising the residual value. The actual formula is complicated because the Leasor also has to float the money to buy the car up front so they have to get that back with the interest on the residual value. A simple way to estimate an option to add to the lease is to simply take the dealer invoice value of the option and divide it by the lease term (e.g. $1200 option over 36 months would be $33/month). This isn't exact but it should be relatively close. The only way to get an exact cost is to get the dealer to run the numbers for you on an actual vehicle and compare. There are also hidden incentives on leases (called subsidies) that only show up in the lease payment. Quote Link to comment Share on other sites More sharing options...
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