When a lease agreement is arranged with Ford Motor credit, one of the things that should be discussed at the outset of the lease what are often referred to as lease end costs, or charges that will be incurred when paying off the lease at the end of its expiry. People may also want to consider the option of paying off a lease early, and that is a different process altogether.
When a customer decides to lease a vehicle, they would do well to think of it as a long-term rental with certain additional costs throughout the time of the lease and also at the end of the lease period.
A lease can run for different periods of time, with about four ,five or six years being fairly standard. The customer will pay a down payment at the beginning of the lease, and a monthly charge back to Ford Motor credit during the term of the lease.
At the end of the lease period, an assessment will be made of the vehicle, normally a few weeks before the lease expires, and special focus will be paid to 2 main areas.
Firstly is the where and tear of the vehicle both inside and outside, including any damage to the paintwork, any scratchings or items of the car that had been replaced with parts that are not manufacturer specific and detailed in the lease agreement. The way the web and tear is worked out should also be specified at the outset of the lease.
Ford Motor Credit Lease Payoff?
Once the assessment has been made, a charge will be determined as to rectify any additional wear and tax costs that would bring it up to the standard of what would be expected for a vehicle of that age and condition. The customer will be given the option of either having the work done themselves prior to the lease ending, or paying Ford Motor credit to do the work instead.
The other cost at the end of the lease normally refers to excess mileage. At the outset of the lease a mileage allowance will be agreed, either on an annual basis or for the term of the lease overall. Additional mileage can be purchased throughout the term of the lease if needed. At the end of the lease the mileage will be calculated and any additional mileage charged at an agreed rate.
These are the main charges that relates to a lease payoff. If someone is looking to pay off a lease early, then that needs to be negotiated with Ford credit or Ford Motor credit. What charges they will be will depend to an extent on what the individual is planning to do.
If they are simply planning to walk away and that is a different scenario from them planning to buy out the vehicle instead, or to lease another one place. If possible, it would be a good idea to discuss this option with the Ford dealership when arranging the lease in the first place and seeing what their views on the matter are.