RED CARPET LEASE
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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A Red Carpet Lease agreement is a program offered by Ford to individual customers, who qualify, who are able to lease a Lincoln in their own right.
Many people think of car leasing or auto leasing as relating to commercial or fleet vehicles, whereas in fact there has been a big shift by Ford and all auto manufacturers to persuade individual customers to consider leasing their vehicles, particularly high-end vehicles such as the Lincoln.
It is important to appreciate that individual leasing programs such as the one offered by Ford credit highly attractive for manufacturer, and anyone looking to lease a vehicle should realise their worth.
Any lease agreement for a Lincoln should be thought of really in the same way as a long-term rental. The benefits to the individual is that they effectively get use of a brand-new car at a much used cost, possibly enabling them to acquire one when they would not otherwise be able to.
Obviously the customer does not own the title to it, that remains with the manufacturer but to all intents and purposes they do own it for a certain period of years.
Lincoln Red Carpet Lease for Individuals
That are a number of restrictions as to what the individual can do with or to the vehicle, in the same way as they would be with a hire car.
The financing of a red carpet lease deal is pretty similar to that of applying for any type of auto financing. The individual will be required to fill out an application form, and have their credit assessed and be issued a credit score.
Ford credit will then analyse the credit score and application and decide whether or not to offer finance to the individual. If you do this will determine the size of the down payment on the lease agreement, and how much will be repaid as a monthly charge.
With any type of lease agreement that our additional costs that need to be considered.
These relate to what are known as the lease end costs, which are essentially are additional wear and tear charges on the vehicle to bring it back to a state and condition that is deemed appropriate for its age and mileage. In addition, any red carpet lease agreement will have a specified mileage allowance for the Lincoln, either on an annual basis or for the overall period of the lease.
At the end of the lease, any excess mileage will be charged at a specified rate. Additional mileage can be bought during the term of the lease itself as well.
Additionally there will be costs for auto insurance and gap insurance, As well as costs relating to servicing and maintenance and things such as roadside assistance plans. All these costs can in theory be negotiated and part of the lease agreement, and should be specified as such the contract.
Customising a red carpet lease vehicle is a big no-no.
There are so many reasons for this it is hard to know where to begin. Leasing a vehicle from Ford is similar in many ways to a long-term rental.
You do not actually open the vehicle or the title to it, you simply have to use of its for the period of the lease agreement under certain terms and conditions. At the end of a lease period, the customer will be required to return the vehicle to Ford, and be liable to pay a number of charges that relate to its condition.
These charges are normally known as the lease end costs, and relate to wear and tear charges to the inside of the vehicle that are in excess of what would be expected for a vehicle of the age and condition that said vehicle is in at the end of the lease. There are also likely to be charges that relates to any bodywork or damage to the outside of the vehicle.
Customize a Red Carpet Lease Vehicle
Lease end costs will be cultivated and worked out a short time, normally a couple of months, before the lease expires. The customer will be given the choice of either having the work done themselves and then paying for it before the lease finishes, or of getting Ford to do the work and charging the customer accordingly.
The red carpet lease agreement should specify exactly how these charges are worked out in advance.
A red carpet lease agreement will have a number of clauses in it that prohibit any type of customisation of the vehicle. From Ford’s point of view, they want the vehicle back at the end of the lease period pretty much in the same condition that it was as new, aside from obvious usage during the period of the lease agreement. As such the customer is not allowed to customise the vehicle in any way.
It is also worth pointing out that if the customer does go ahead and customises such a vehicle they are likely to be in breach of the lease and the warranty as well. This means they could well be liable for a whole range of charges during the term of the lease in the event of anything going wrong with the vehicle itself. The only real option regarding customisation is for the customer to purchase the vehicle at the end of the lease agreement, when they will own the title to it and can proceed to customise it as they see fit.