Our leasing program through Ford is called Red Carpet Lease.
You can lease any vehicle from 24 – 39 months, and starting at 10,500/yr – 19,500/yr miles.
We usually start every deal at 36 months 10,500 miles per year and you can go up 1,500 miles per increment and that usually changes the payment $10-15/month. Now you have the standard warranty like any new vehicle; 5 year 60,000 miles powertrain and 3 year 36,000 comprehensive warranty, but Ford also puts GAP insurance in every lease. The mileage starts at the day of purchase so for example if the vehicle already has like 50 miles on it from test drives, that does not mean that you lose 50 miles its starts from there as zero.
Now, there are different extended warranties they like to offer: Tire and wheel and wear care are the two that I know most about. Tire and wheel helps with flat tires from nails and if you mess up your wheels etc. The wear care is what I have (I only recommend wear care if you are terming your lease because it covers up to $4000 of excessive dings, knicks, scratches, stains on the interior etc.) I am personally terming my lease because i rolled over 7800 of negative equity so I want to get rid of that so I will term my Fusion lease and I have that coverage.
Now there is a 120 window before your lease is up that is the best time to make a decision. We have a department here called “RR”, and all they do is get notices about customers when they get close to that 120 day window because before you get to 120 days you have three options to do with your lease:
1) Trade: Most popular, and it doesn’t have to be another lease but most people do because they can get a similar vehicle and keep leasing or some decide they don’t want to lease anymore and just purchase a new vehicle whether it’s a Ford or not.
2) Purchase: After your three year lease is up you have the decision to purchase your car, at the Lease End Value, that is the price and there is no negotiation on that price because it is set from Ford directly from the factory before the vehicle even touches our lot. You technically finance it like a pre-owned vehicle and if you are in the right parameters you can decide to purchase as a Certified Pre Owned, which is an extra step we take to attach a certified pre owned warranty on the vehicle (7 year/100,000 powertrain and 12 month/12,000 comprehensive). You pay taxes on the lease and pay taxes on the purchase.
3) Term: If you decide after your lease is up and you don’t want to trade it in you can “term” it. You bring it back up to the dealership and tell us you are terming your vehicle. Ford then sends down an adjuster to look at the vehicle and this is when if you have excessive wear and tear and more miles collectively where Ford will send you a bill. I believe its $0.20 per mile over, but thats collectively so if you are at 12,000 miles then you have 36,000 miles overall.
Ford gives us this program to keep your payments lower and save you money overall. Usually during your term you shouldn’t have to worry about maintenance and that’s where I like the leasing program a lot. They incentivise it because if you lease again they usually give you an extra rebate. Ford wants customers to keep leasing, but like I said before you dont necessarily have to.