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jcartwright99

Ford Leasing for Z Plan Eligible

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My father who is 75 is a Ford retiree. He wants to get rid of his Flex soon and lease a vehicle. His thing is that he doesn't want to have to worry about anything more than routine maintenance on his cars now that he's getting older. I told him I would look into his options with his current Flex and into leasing. I have no experience with leases so how does that work for Z plan eligible folks?  

 

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Same way as buying the car, get a pin from the website or the phone number. Go to a dealer and the lease is based on the zplan price and incentives. Also never put anything down or pre pay a lease, 

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On 10/5/2019 at 10:49 AM, jasonj80 said:

Same way as buying the car, get a pin from the website or the phone number. Go to a dealer and the lease is based on the zplan price and incentives. Also never put anything down or pre pay a lease, 

 

I was more trying to understand what type of discounts you get in a lease? I get the PIN procedure. I've bought cars but never leased so I am assuming you get a much better lease rate than Joe Public. Is that correct?

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22 minutes ago, jcartwright99 said:

 

I was more trying to understand what type of discounts you get in a lease? I get the PIN procedure. I've bought cars but never leased so I am assuming you get a much better lease rate than Joe Public. Is that correct?

 

I don't think you get a different rate, but you get a discount on the up front cost of the vehicle (same as if you were buying it) so that lowers the cost of the lease.

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7 minutes ago, akirby said:

 

I don't think you get a different rate, but you get a discount on the up front cost of the vehicle (same as if you were buying it) so that lowers the cost of the lease.


Exactly what akirby said, there is also sometimes additional money available too for AXZ leases as well just like when you buy the car with AXZ Plans.

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On ‎10‎/‎5‎/‎2019 at 8:49 AM, jasonj80 said:

Same way as buying the car, get a pin from the website or the phone number. Go to a dealer and the lease is based on the zplan price and incentives. Also never put anything down or pre pay a lease, 

? ...why wouldn't you pre pay a lease if that's the way you wish to go...it comes with a additional rate reduction...and why wouldn't you put money down to be utilized as a cap reduction...which lowers payments, if you want?...going to have to explain that logic to me...

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34 minutes ago, Deanh said:

? ...why wouldn't you pre pay a lease if that's the way you wish to go...it comes with a additional rate reduction...and why wouldn't you put money down to be utilized as a cap reduction...which lowers payments, if you want?...going to have to explain that logic to me...

 

If it’s totaled or stolen you may not get back what you prepaid depending on the insurance settlement and gap insurance.

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5 minutes ago, akirby said:

 

If it’s totaled or stolen you may not get back what you prepaid depending on the insurance settlement and gap insurance.

 you could get hit by lightening as well...sheesh guys...every $1000 dollars put down on a lease lowers payments by $28 a month...and you are saying its foolish to buy a car cash???? or pre pay a lease….shame on people that have the capacity to do that....terrible decision paying additional interest...strange logic gentlemen. Most individuals put down payment so as to have a payment thats easier to afford....

 

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I would say less than 1% of our leases are zero down...and APP's are maybe even less than that.

 

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58 minutes ago, Deanh said:

 you could get hit by lightening as well...sheesh guys...every $1000 dollars put down on a lease lowers payments by $28 a month...and you are saying its foolish to buy a car cash???? or pre pay a lease….shame on people that have the capacity to do that....terrible decision paying additional interest...strange logic gentlemen. Most individuals put down payment so as to have a payment thats easier to afford....

 


But it ends up being the same price why take the risk? If I take $4000 in rebates and put it in the bank and just pull my payment from that plus the money I would put down its all ends up being the same. I'm also making the same payment in 3 years when the value of a dollar has less purchasing power than it does today. It comes down to total cost not monthly payment, and yes if they offer 0% interest you're a moron if you pay cash for the car up front, or a low money factor on the lease. I realize this is also different for people with Excellent/Good credit vs people with poor credit and if the money factor is being subsidized. Leases are also slightly different than buying because you're in the portion of the vehicles life where you're more likely to be upside down on the car. With Carfax's now I would also say to lease a car for 3 years, then if you want it just buy it after that. If you buy your Red Carpet lease you don't pay excess mileage fees, plus if an accident happens in that time you can just walk away as that will show on the vehicles car-fax forever.

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2 minutes ago, jasonj80 said:


But it ends up being the same price why take the risk? If I take $4000 in rebates and put it in the bank and just pull my payment from that plus the money I would put down its all ends up being the same. I'm also making the same payment in 3 years when the value of a dollar has less purchasing power than it does today. It comes down to total cost not monthly payment, and yes if they offer 0% interest you're a moron if you pay cash for the car up front, or a low money factor on the lease. I realize this is also different for people with Excellent/Good credit vs people with poor credit and if the money factor is being subsidized. Leases are also slightly different than buying because you're in the portion of the vehicles life where you're more likely to be upside down on the car. With Carfax's now I would also say to lease a car for 3 years, then if you want it just buy it after that. If you buy your Red Carpet lease you don't pay excess mileage fees, plus if an accident happens in that time you can just walk away as that will show on the vehicles car-fax forever.

Interesting perspective, but tell that to the people that want a $400 a month payment on a $45k Explorer....people put money up front to lower payments to a poi t they feel comfortable....nothing more nothing less. Not outright questioning your logic...but I do have a little insight as Ive been doing this for 30 years....you can math it all you want...fact is people utilize down payment  to lower their payments....its also a big reason leases outnumber purchases significantly....to get lower payments OR more car for the same payment...I've yet to hear anyone in 30 years say they don't want to put a down payment down because they could get in an accident.... scratching my head on that one....

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not criticizing your logic either...everyone has their own process and mindset when buying a car,,, but for the life of me Ive never heard don't put any money down because you  may get into an accident... Fords leases have gap insurance...but if they didn't that would make it a necessity

.

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1 hour ago, Deanh said:

not criticizing your logic either...everyone has their own process and mindset when buying a car,,, but for the life of me Ive never heard don't put any money down because you  may get into an accident... Fords leases have gap insurance...but if they didn't that would make it a necessity

.

 

Dean - you’re completely missing the nuance here.  If you purchase and then total it the gap insurance covers YOU.  So anything you put down you get credit for.

 

if you prepay a lease and total it the gap insurance covers Ford finance for the difference and your prepayment ends up being deducted from what the gap insurance pays Ford.   The only way that doesn’t happen is if there is a provision to refund the unused portion of the prepaid lease.

 

Its really just a loophole in the way gap insurance works on a prepaid lease.

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I fully understand it, shoot, I do this for a living...I think you may have missed mine...being told not to put money down on a lease in case you get into an accident  does not take into account people budgeting for a payment that reflects said down payment...An APP I understand the scenario...but like I said...APP's are extremely rare...and one shouldn't jump to the conclusion they ARE going to be in an accident...like I said...that's like thinking youll be hit by lightning...QUOTE... "Also never put anything down" OR Pay the lease in Full ( APP ) ...APP aside, we agree on that, but what if you cant afford the payment on a regular lease unless you DO put something down?..which is exactly how 99.9%  of lease transactions work.... ( and as of late the payments on certain vehicles is pretty damn high...been a lot of interest in the XPL ST's...payments are up there barring cap reduction )

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lol...all the cars Ive bought Ive never once thought beforehand about my chances of getting in an accident...you guys are paranoid ( now watch, ill get in an accident on the way home ) 

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Dean - you can put the cash in the bank and use it to lower your payments each month.  Costs the same but less risky.

 

If nobody was worried about totaling a vehicle or having it stolen they wouldn’t be selling gap insurance.

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8 minutes ago, akirby said:

Dean - you can put the cash in the bank and use it to lower your payments each month.  Costs the same but less risky.

 

If nobody was worried about totaling a vehicle or having it stolen they wouldn’t be selling gap insurance.

actually youre less likey to need GAP insurance the MORE you put down....Guaranteed Auto Protection (GAP) insurance is also known as GAPS and was established in North American financial industry. GAP insurance is the difference between the actual cash value of a vehicle and the balance still owed on the financing (car loan, lease, etc.). GAP coverage is mainly used on new and used small vehicles (cars and trucks) and heavy trucks. You put more money down theres less or no gap between what the cars ACV is and the loan balance, which with more down payment is less from the get go. If your loan is for 30k, car gets stolen or totaled, and is worth 25k, GAP takes care of the loan balance, if you'd put 5k more down you'd be break even and wouldn't need GAP. Its an insurance that's predicated on the mindset of fear youre portraying...and with little to no downpayment its recommended....with a large enough downpayment it makes no sense...

Edited by Deanh

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15 minutes ago, akirby said:

Dean - you can put the cash in the bank and use it to lower your payments each month.  Costs the same but less risky.

 

If nobody was worried about totaling a vehicle or having it stolen they wouldn’t be selling gap insurance.

and this one you've lost me on and have to explain in lay mans terms...how can putting your down payment on a loan/ lease in the bank lower your car payments?....last I looked...the money I had in the Bank didn't lower my car payments...but the money I used as a down payment did....off now to deal with traffic and a potential accident...lol, talk to you tomorrow Grim Reaper...Cheers.

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Good grief Dean - did you even read what I typed?  GAP on a lease pays out to the leasing company.  If you prepay the lease then GAP makes the leasing company while but they don’t pay you anything.  That’s the difference.

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3 minutes ago, Deanh said:

and this one you've lost me on and have to explain in lay mans terms...how can putting your down payment on a loan/ lease in the bank lower your car payments?....last I looked...the money I had in the Bank didn't lower my car payments...but the money I used as a down payment did....off now to deal with traffic and a potential accident...lol, talk to you tomorrow Grim Reaper...Cheers.

 

Instead of putting $3600 down on a 36 month lease to lower the monthly payment you put it in the bank and withdraw $100/month to go with the payment.  Net result is the same monthly payment.  Is this really that difficult to u derstand?

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15 hours ago, akirby said:

 

Instead of putting $3600 down on a 36 month lease to lower the monthly payment you put it in the bank and withdraw $100/month to go with the payment.  Net result is the same monthly payment.  Is this really that difficult to u derstand?

never...ever heard of that before...and exactly how does it save any money as the higher the payments...the higher the taxes on said payment and lets not forget interest charges accrued on a higher finance balance. Makes absolutely zero sense to me at all...AND with less down payment its wise ( on a purchase ) to spend the $5 -600 additional on GAP insurance. On a lease that $3600 equates to dropping payments approx. $100 so I see the math....but seems like an awful lot of extra curricular activity that basically does nothing barring making additional effort. If it works for you guys great...seems to me youre overcomplicating things...

 

Edited by Deanh

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30 minutes ago, Deanh said:

never...ever heard of that before...and exactly how does it save any money as the higher the payments...the higher the taxes on said payment and lets not forget interest charges accrued on a higher finance balance. Makes absolutely zero sense to me at all...AND with less down payment its wise ( on a purchase ) to spend the $5 -600 additional on GAP insurance. On a lease that $3600 equates to dropping payments approx. $100 so I see the math....but seems like an awful lot of extra curricular activity that basically does nothing barring making additional effort. If it works for you guys great...seems to me youre overcomplicating things...

 

 

<sigh>  Ok let me give you an example.   This ONLY applies to a prepaid lease (all or part).

 

You and I lease a $40K vehicle for 3 years at $500/month.   I put $0 down and you prepay $10K to lower your payments.

 

After 6 months the vehicles are stolen.   I walk away owing nothing because GAP insurance covers the leasing company shortfall on the insurance payout.   I've only paid $3K in lease payments.

 

You also walk away owing nothing because the insurance payout more than covers the remaining balance on the vehicle because you prepaid $10K.   But whereas I only paid $3K in lease payments you paid $10K plus $1300 in lowered lease payments for 6 months.   You don't get the $10K back.   You just lost $8300.

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1 minute ago, akirby said:

 

<sigh>  Ok let me give you an example.   This ONLY applies to a prepaid lease (all or part).

 

You and I lease a $40K vehicle for 3 years at $500/month.   I put $0 down and you prepay $10K to lower your payments.

 

After 6 months the vehicles are stolen.   I walk away owing nothing because GAP insurance covers the leasing company shortfall on the insurance payout.   I've only paid $3K in lease payments.

 

You also walk away owing nothing because the insurance payout more than covers the remaining balance on the vehicle because you prepaid $10K.   But whereas I only paid $3K in lease payments you paid $10K plus $1300 in lowered lease payments for 6 months.   You don't get the $10K back.   You just lost $8300.

theres that fear of theft again, you and I couldn't have fallen from farther branches of the tree..and I FULLY understand the APP ( pre-paid lease ) side of your discussion...but like I stated...that's applies to less than 1% of lease transactions...we do not get many at all. My query is more regarding a regular lease and the comment keep in in the bank????????? sounds like completely un-necessary complexity that's un-necessary ( even if you can affords the higher payment ) ...99 % of consumers put down payment to make said payment fit their budget better. Most consumers ARE payment buyers.

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22 minutes ago, Deanh said:

never...ever heard of that before...and exactly how does it save any money as the higher the payments...the higher the taxes on said payment and lets not forget interest charges accrued on a higher finance balance. Makes absolutely zero sense to me at all...AND with less down payment its wise ( on a purchase ) to spend the $5 -600 additional on GAP insurance. On a lease that $3600 equates to dropping payments approx. $100 so I see the math....but seems like an awful lot of extra curricular activity that basically does nothing barring making additional effort. If it works for you guys great...seems to me youre overcomplicating things...

 


I'm confused wouldn't the taxes would be the same, maybe on a purchase but on a lease GAP is included for Red Carpet.  The argument is that you've earned a little interest on that money in the bank and then in 30 months you're paying $100 more in 2022 dollars not $100 more in 2019 dollars, in 2022 the dollar will have less buying power.

 

The biggest issue with people is that they get stuck in the price per month, not the total price.
 

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1 minute ago, jasonj80 said:


I'm confused wouldn't the taxes would be the same, maybe on a purchase but on a lease GAP is included for Red Carpet.  The argument is that you've earned a little interest on that money in the bank and then in 30 months you're paying $100 more in 2022 dollars not $100 more in 2019 dollars, in 2022 the dollar will have less buying power.

 

The biggest issue with people is that they get stuck in the price per month, not the total price.
 

nope...on leases you are taxed on each payment...higher the payment, higher the taxes paid. That said...I may have just put a hole in my argument...as youre also taxed on cap reduction...DOH!...I could get into the convoluted practices of sales but don't want to open that can of worms....that just ends up getting toxic...as for interest in the bank...that's tiddly-winks...less buying power in 2022...jesus guys...don't become motivational speakers...LMAO...Cheers. 

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