Ford Explorer Lease Deals
It is a good starting point to think of leasing a Ford Explorer as being somewhat like a rental arrangement.
There are differences, and potentially a number of different areas of cost management to be considered.
However, with a bit of research and diligence leasing a Ford can be a really effective way of acquiring a new Explorer at a price that otherwise not be affordable.
Getting the best Ford Explorer Red Carpet lease deals involves an understanding of the language and structure of how companies such as Ford Credit offer financing arrangements and leasing deals on all their vehicles.
The most important things to consider how a lease arrangement works, the various financial figures involved, the issue of incentives and rebates and whether or not it is worth eating a slightly older model of the Ford Explorer.
Ford Explorer – how leasing works
This is a very quick overview of how the leasing process for a blank works.
The customer agrees to use the vehicle from bank, for a fixed period of time, normally anything between one and eight years, and agrees to pay them a monthly figure for this leasing arrangement.
During the lease there will be a specific mileage allowance, with additional mileage charges and any excess mileage incurred at the end of the lease period.
At the end of the lease period the manufacturer, in this case Ford, will assess the condition of the vehicle, normally through a third-party agent, who will make a recommendation as to its condition.
If it is considered that there is excess wear and tear then certain charges will be levied on the customer that are considered necessary to bring the vehicle up to a condition appropriate with its age and mileage.
The customer at this point can either walk away from the vehicle, agree a new lease arrangement on another new vehicle, or possibly agree to buy the vehicle that he had the regional lease on.if purchasing a vehicle, then the excess wear and tear fees would normally be waived.
That will normally be a penalty of some type financially for early termination of the Ford Explorer lease arrangement.
Red Carpet Lease – leasing a used Ford Explorer
People sometimes wonder if there is any value in leasing a second-hand or used Ford Explorer. There is sometimes an assumption that this might be cheaper leasing a new vehicle.
In reality leasing cost of a new vehicle is based to a large extent on its depreciation value from when it is new, which is largely in its first year.
This means that leasing a vehicle that is more than a year old does not really make a huge amount of sense from a financial point of view, given the chief benefit in this vehicle is in the fact that the customer is getting a brand-new vehicle, with benefit of warranty etc.
Ford Explorer Lease – Make-up of leasing charges
There are a number of different costs make up the overall charge any leasing arrangement.
These are to an extent determined by the manufacturer, in this case Ford, by the dealership and by the credit score of the individual seeking the lease arrangement.
The starting point is what is known as the base MSRP.
This is essentially the list price that the manufacturer would put on the vehicle if it were for sale, which in reality would be negotiated downwards by any prospective customer. However it is a baseline for most leasing arrangements.
Added to this will be the total of any options the customer wants to include with the vehicle.
These two figures when taken together are sometimes referred to as the estimated capitalised cost. This simply means the figure for any additional costs and any additional rebates or incentives are taken into account. It could be thought of as a gross figure.
The other figure often referred to is an adjusted capitalised cost, and is really a net figure once the total of all costs and benefits have been taken into account and added to cost.
Other charges that may well be added to the estimated capitalised costcan include things such as a destination charge, and acquisition fee, a delivery charge, a document fee, taxes, the vehicle title and its registration.
Things such as an acquisition fee and a document fee are simply admin costs and should be clearly stated in any documentation before signing.
Some dealerships use these admin costs as a way of covering certain discounts or incentives that they make in order to balance out their own numbers, and as such all of these costs should be scrutinised and negotiated down where possible.
Ford Explorer Lease Deals – Insurance
It will be the customers responsibility to ensure that proper insurance is arranged on the vehicle, and the Ford Credit dealership will need to have proof of this part of the vehicle being released after any leasing arrangement is made.
Insurance can sometimes be arranged through the dealership, or by the customer themselves individually. This will always be a condition of any lease arrangement that is signed.
Ford Explorer Lease – Down Payment
When leasing a Ford Explorer, the structure of the arrangement is that the customer pays a down payment on the vehicle, which determines the level of monthly payments thereafter.
The higher the down payment, the less the monthly payment should be in order to reflect this. It is also possible a customer may be required to make a higher down payment than would otherwise be the case if they had a poor credit rating.
Ford Explorer Red Carpet Lease – Net trade-in value
The other thing that can determine the leasing costs for a Ford Explorer is if there is a trade in of an existing vehicle. This normally refers to a vehicle that customer owns and wants to trade in against against a new vehicle.
It should be borne in mind that the trade-in value to a dealership will normally be significantly less than if they were to sell the vehicle privately. This trade-in value can also sometimes referr toa a vehicle that the customer has already released and is coming to the endof the lease agreement.
Ford Explorer – Finance offers
A lot of focus is often put on the finance offers that are made available to potential customers. Some of these will be made by the manufacturer in this case Ford at a national level.
Some will be made by the local Ford dealership, and some will be determined by both. But all finance offers that are made will be subject to the credit status of the individual applying for the lease arrangement.
The most common finance offers tend to fall into two categories.
There is normally a cash sum or a cash rebate offered if a long lease period is arranged, normally the maximum length that the company will permit at the time. There is also likely to be an offer of zero or low interest rates on a certain period of the leasing arrangement if in a long lease period is arranged.
There is also likely to be an offer to sometimes defer the first three months of any financing costs, subject to the length of the lease period itself.
Ford Explorer Lease – Incentives
Incentives are the way that blank make clear their commitment to certain groups of customers, either by way of a social conscience or by way of attracting customers who are now likely to keep in the long-term some of the most current groups of customers who are offered.
Iincentives include : first responders, students, farmers and the military.
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Introduced in 1990/91, the Ford Explorer remains one of the most iconic and best SUV’s on the market. It has a huge following as a vehicle, coupled with a loyal Ford customer base, making it not only a sound investment, but for many people an invaluable part of their daily life.
Almost 30 years on, there is a huge market in used Ford Explorers, as well as the 2019 model currently available. With such a wide pool of vehicles to choose from, it is a good idea to have a plan and a number of questions to ask yourself in order to get the best deal with on the vehicle, and on finance as well.
Buy close to where you live
There is an old adage about buying a car which says that you should ready by close to where you live. This to an extent remains true, signifying a used Ford Explorer.
However, with the growth of the Internet this also means that it is possible to view and buy a whole range of new and used Ford Explorers from virtually anywhere in the country.
For many people, when buying a new or certified pre-owned Ford Explorer, if they are willing to travel or to take a bit of a gamble, then that all number of seriously good deals to be done if they are willing to put in the time and the research.
If buying an older version of the Ford Explorer, either from a dealership or online through summer like craigslist, then there is a lock to be said for buying it close to home. This is because you will most likely want to give it a test drive, possibly have it examined for structural and mechanical issues and know where to go to if there are any problems once you have bought it.
Ford Explorer Carfax – Vehicle Inspection
Having some type of vehicle inspection report, such as Carfax, is probably a must if the vehicle is not new or certified preowned. Even some used and second-hand vehicles that are quite recent new vehicle inspection report can provide real peace of mind.
The decision in terms of having the used Ford Explorer inspected can only be done by a professional, or if you know someone who is mechanically minded, they may be able do it for you as a favour.
Bear in mind, that a vehicle inspection report such as contracts almost only inspect the road worthiness of the vehicle, in this case a Ford Explorer, but will also do checks to make sure it has not been in an accident, and then on the issues about ownership of the title.
The report should also detail information about it’s servicing and maintenance history, its ownership history and any potential issues that may be fined up regarding fraud in terms of misrepresent data.
This normally refers to items such as the milage counter been tampered with or reset to indicate a more favourable usage of the vehicle.
Altering the odometer of a vehicle is more difficult nowadays, but can still be done quickly on older models of any used Ford Explorer. This can still have been done even if buying from a reputable Ford dealership, as it could be altered before being passed on to the dealer
Doing your own research prior to buying a used Ford Explorer is pretty crucial. The research should cover the vehicle itself, and should give you enough information to decide whether or not you want to buy a new way used or second hand one.
You should also be able to tell what are your best options in terms of where to buy from, and to what extent you are willing to travel out of your immediate area in order to purchase the vehicle.
Research can often be done online, either by going to one the many reputable car dealing sites, or by going to a number of discussion forums. You can also do your own research by talking to people you know who either own or have o meet your ownned Ford Explores in the past.
The reason such matters is that you need to be sure from yourself that buying a Ford Explorer will meet your specific needs at an individual and as a family.
There are many different models and types of engines and drive options, knowing what these are into is important before embarking on the process of finding the vehicle and raising finance for it.
Maintenance and Running Costs
Many people simply look at the cost of the Ford Explorer in terms of the purchase price and the finance deal. What is this important, it is also crucial to your finances to work out what your lighting maintenance and running costs will be on an annual basis.
Servicing and maintenance costs should be available to you as indicators from any Ford dealership, and if buying the used Ford Explorer through a Ford dealer you may well be able to arrange some type of deal or arrangement concerning servicing as part of the purchase of the vehicle.
Aside from servicing costs, it is important to know what items are and are not included in the warranty becomes of the vehicle, as any mechanical problems relating to the areas which are to paid for out of pocket.
Insurance costs or a potential nightmare for anyone, irrespective of whatever car you’re buying. Buying a Ford Explorer can be an expensive decision, simply because of the amount of money involved.
Know how much it is going to cost you in terms of insurance is crucial in terms of factory in your overall expenditure and running and maintenance costs.
Ford dealers will sometimes have special arrangements with certain insurance companies where they may build you some type of deal. This is normally worth considering, but it is also well worth getting independent quotes for only three or four other insurance companies before deciding which one to go with.
It is also well worth getting a quotation, or an estimate from a number of main truck companies before going ahead and purchasing vehicle, as the cost of insurance they will be a factor in determining which one you end up buying.
Ford Explorer Financing
Most people will need some type of financing arrangement when buying a new or used Ford Explorer. Ford credit offers a number of options that are usually well worth considering, including a leasing option.
Ford credit will operate the same credit arrangements as any other finance company, in terms of assessing an individual’s creditworthiness regarding any type of loan or lease agreement.
When arranging any type of finance, it is always a good idea to gain alternative quotations, normally two or three is sufficient. People sometimes worry this may affect their credit rating, but the industry says otherwise.
It is recognised as a good practice to obtain alternative quotes, and then if necessary use them as a negotiating tool with whoever your preferred line of credit is with when buying a used Ford Explorer.
Remember that all aspects of any finance deal should be negotiable, depending upon how good your credit score is or not. This affects the size of the down payment, the interest rate for the period of the loan and the term of the loan itself.
If leasing a Ford Explorer, then it is quite likely that other aspects of the lease agreement can be negotiated as well, such as least end deals.
Ford Explorer – Certified Pre-Owned Vehicles and Warranty
Many Ford dealers will offer what they referred to as certified pre-owned vehicles. This will be a Ford Explorer that is a used vehicle, but which will have undergone extensive mechanical and body checks, completed to a standard Ford check list.
These certified pre-owned vehicles are intended to relieve some of the anxiety or fear around buying a second-hand or used Ford Explorer.
Together with either a manufacturers or dealership warranty they can give a significant amount of peace of mind to anyone buying a used Ford Explorer.
Ford Explorer Test Drive
If buying a new Ford Explorer, there is a good chance before dealership may be able to offer you an extended test drive, either for a whole day or even over a weekend.
This is becoming more popular as a way of dealers being able to sell the vehicle. The longer you have it the more likely you are to like it, and the hope is that you will be more likely to buy it.
From a customer point of view, the value is that you get to know the vehicle really well, and as such are more likely to be able to assess whether or not it meets your needs.
If buying a used Ford Explorer, then it is equally important if not more important to test for the vehicle before purchase. If you are buying out of state or from a distance, and this obviously can be a problem. That is why it is a really good idea to try and buy locally.
Any test driving a car gives you a real feel for it as a vehicle, and may alert you to any mechanical or bodywork problems that exist that need correcting for purchase.
Ford Explorer Vehicle History
When buying any used or second-hand vehicle, knowing its history can be invaluable in terms of making a good purchase. A Carfax report as mentioned above can certainly give you a lot of that information.
Another source of information is either the person you are buying from, or a Ford dealership or an independent dealership when purchasing the Ford Explorer from them.
There is obviously a potential problem of misinformation or a mission of information, but a Ford dealership should be able to give you the sum deprecation of things such as mileage, age and condition of the vehicle.
The older the vehicle, the more necessary it is to get some type of independent verification of its age and condition, and also the fact that it has not been involved in an accident of any type.
Ford Explorer True Market Value
Assessing the True Market Value of a Ford Explorer is a bit of an exercise in both guesswork and research. The number of sites around such as Kelly’s bluebook which can give you a guide as to what the auto industry and insurance industry value a Ford Explorer at, given its age, condition and milage.
Aside from that, you have to recognise that if buying from a Ford dealership you are likely to pay a premium, whereas if you buy from an individual you may get a more realistic price, but you seem not have the benefit of a dealership warranty or any vehicle inspection done independently before you purchase .
In the end, the true market value of a Ford Explorer is what someone is willing to pay for it, and this can vary significantly depending upon the age and condition of the vehicle.
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With a Ford Explorer costing as much as $55,000, the need to both arrange finance and get the best possible finance deal both in terms of the final sale price of the car, as well as the best interest rate and credit arrangement, becomes true for virtually everyone.
The cost of the Explorer is not unique to Ford, already good SUV’s do come at a premium. What matters more to a customer is that they spend time and energy doing the research before they buy, both in terms of what they can expect to pay in terms of price, and what they need to do to make sure they secure the best possible finance deal.
In terms of price, customers can take this pretty much as far as they want. There is a standard retail price often known as the MSRP, which is often referred to simply as the sale price. This is in effect the list price manufacturers put on their cars. In reality, everyone will expect a dealer to lock a significant percentage of this price, normally somewhere in the region of 10 to 15%.
Ford Finance on a Ford Explorer
Other people will go much further and take through various websites to actually get to what the dealer pays manufacturer for the specific car, and then decide how much they are willing to go on top of that in terms of paying the dealership.
Whichever way you go, bear in mind that the final sale price includes a number of potential optional extras, and care needs to be taken that these are actually wanted and needed an specified in the price. Anything you don’t want the clear about not including.
Keeping the sale price is separate from the negotiations about the finance rates is really important. If the customer is arranging finance through Ford credit, a process known as dealership financing, then back in mind that the dealer will be able to negotiate on all areas of the finance package, including the size of the deposit, the interest rate and any other conditions attached to the quotation.
Whilst they are able to negotiate, the dealerships room for negotiation may be a bit limited, and will to an extent be dependent upon the credit score of the individual applying for finance on the Ford Explorer and any cosigner who might be part of the original application.
With the cost of a Ford Explorer rising to potentially US$50,000, the financing of it both at the outset of the purchase and its running costs during its lifetime of ownership become a significant financial commitment and investment.
Many people when buying a car outright tend to get a bit lost in the mystique of a new or nearly new car, and either don’t always pay a huge amount of attention to the financing, or tend to assume that they are getting the best rate they can and move on.
The idea of refinancing a loan from Ford credit is one that should be looked at and considered at any particular stage of the ownership process.
There are many reasons why people consider refinancing a loan, some of them positive and some of them negative.
The most common reason is to reduce, although it can also sometimes be to increase the size of the monthly payment. The way a loan agreement with Ford credit is structured is that there is a standard rate of interest applied across the entire period of the loan, which is worked out to a single monthly payment that remained the same for that time period.
Refinance Ford Credit Loan on Ford Explorer
This simplifies the whole process significantly from both points of view, but also means that making any changes either to the rate of interest or other terms and conditions of the loan is pretty much impossible.
The interest rate, or whatever interest rate is used is also tied to the size of the down payment as an overall part of the lending criteria, again making it difficult to change during the period of the loan.
This is why people refinance a loan. Making amendments or alterations to the original loan is in practice a difficult, and it’s much easier with a vehicle like the Ford Explorer to simply refinance the whole process.
The practicalities of refinancing a loan on a Ford Explorer are actually quite straightforward, and in many ways pretty similar to the original process. Kate should be taken about approaching companies in terms of whether or not it affects your credit score, but it should be fairly straightforward to find out if it is possible to refinance your original loan and if so on what terms and conditions.
People sometimes assume that credit score requirements for leasing a Ford Explorer are likely to be different or less than if they were applying for a loan to buy one, either with Ford Credit or some other lender such as a bank or a credit union.
Truth is that applying for a lease deal with Ford credit means people undergo exactly same credit checks that they would if they were buying the vehicle outright. The risk to Ford from a credit point of view is pretty much the same regarding both circumstances.
People sometimes assume this is because the monthly costs of leasing a car such as the Ford Explorer tend to be significantly less than if they were to buy it outright, and so they assume that there is a less stringent credit requirement to lease a vehicle.
Ford Lease Credit Score Requirements for Ford Explorer
The process of arranging credit can be quite a complex one, and it is worth the customer understanding what is involved before embarking upon the whole project.
The first thing to do is to obtain a copy of your credit report, which is a document that is used to compile a wide range of personal and financial information about you, which is then used to determine your credit score which is used as a basis of deciding whether or not to lend you money, and if so on what terms and conditions.
When leasing a vehicle such as the Ford Explorer, Ford don’t actually lend you the money to buy it in the same way that they would if you were purchasing the vehicle from them outright. However they are in effect lending you the vehicle itself for a fixed period of time, and whilst the costs of paying for that are less, it is still a significant financial risk to them.
As such they will check your credit rating in the same way that they will any potential customer looking to buy from them, and use a credit score to determine whether or not to lease the vehicle.
After obtaining your credit report, it is worth checking that all the information in it is accurate and up-to-date. What often misinformation, or information that is out of date and cannot be used any more can have a significant impact on your credit score, and ultimately on terms and conditions of any credit agreement arranged with you.