QuestionI'll bet it's sunny AND warm there in Florida. We're enjoying temps around 25 degrees with a few inches OF snow. I think I'd rather be in Florida.
It's funny you brought up my $8,000 figure. Just this morning I was running numbers, thinking that $8,000 didn't make logical sense. I owe appx. $19,000 on my current lease. A local dealer, without seeing my trade-in, gave me an estimated value of $13,500. With simple math, my figure looks better at only $5,500.
Simple question here: Is it far-fetched for me to expect the dealer or finance company (or combination of both) to COMPLETELY ABSORB the entire $5,500? That'd be the ONLY way I'd terminate my lease early.
You're very generous with your time to help a complete stranger with your expertise. Thank you!
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Followup To
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Mr. Ford,
Thanks for your speedy response. I'm incredibly thankful! I'm an analytical person by nature and hate going into situations blind. Hence, my initial question to you. My lease is through a local bank, not Ford Credit. Does your positive-sounding response still apply? This will be my third Ford, assuming the Navigator comes through.
How far below invoice do dealers typically go? Or, put differently, how far above wholesale are they willing to go? Will the dealership basically "eat" my $8,000? That seems to good to be true. What's the catch?
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Followup To
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Mr. Ford,
I'm interested in your opinion and will be thankful for any insight you are willing to provide. I'm considering early termination of my current lease to upgrade my vehicle. Here are my stats:
*3 years into 5 year lease
*2002 Ford Windstar SEL; good condition w/ normal wear; no repair history; 26,000 miles
*Central Ohio region
*$19,000 remaining on lease
I am very interested in a 2005 4x4 Lincoln Navigator w/ MSRP of appx. $63800; Invoice appx. $55900. According to my estimates (and I'm certainly no expert), I'm appx. $8000 upside down in my lease. Is there a way to make this work and is it worth my time to visit my local dealership OR do you advise I just wait two more years to finish my current lease? If there's a way to make it work, what is the probability the dealership will make it happen?
Thank you very much!
Answer -
Hi Carole and thanks for the question. You MAY be able to get a little help. Since you are currently leasing a Ford vehicle and wish to lease another Ford vehicle. If your lease is currently with Ford Credit and you are going to lease your Aviator, hopefully, through Ford you might be able to negotiate some help. Also you should get some kind of loyalty reward for going from Ford vehicle to Ford vehicle. Go in and talk to the folks at Lincoln Mercury. If they wont help you call Ford Credit and tell them your problem. No manufacturer ever wants to lose a good customer like you and especially now with business so bad. See what you can do. If you can not get any help get back with me and I will see what I can do for you . Best of Luck. Bud
Answer -
Hi again Carole and my positive answer is still somewhat positive-sounding! Again you need to do two seperate things before you go any further. First---go to your local bank and explain to them what your desires/wants/needs are and see if they are willing to work with you. As you probably the banking business is ultra competetive right now as is the car business. After you have negotiated with the bank go to your local Lincoln Mercury dealer and repeat the same procedure with them. Then sit down and do a triple Ben Franklin Balance sheet with column one being keeping your current vehicle, column two doing business with the bank and column doing business with Ford Credit. Then you can make a much better informed decision. Incidentally I would be curious as to how you arrived at the $8,000 "upside-down" figure as this seems a bit high presuming the vehicle is well equipped and well maintained. Again, the best of luck to you. Bud in Sunny Florida.
AnswerHello Again Carole, yes it is sunny but Decidely not warm today in Melbourne Beach, Florida. I think your dealer gave you an accurate picture of what your current vehicle is worth. I also did some research and found the following incentives available on the Navigator:
1. $2,000 Cash back(applies to all)
2. $500 Cash back(College Grad or full time student)
3. 1,095 Cash back(if you get the power running board pkg)
I also priced out the Navigator and had to add almost every accessory available to get to the price you quoted. So where are we now? Our last exchange you were down to $5,500 reverse equity. Now if you can get your Lincoln Dealer to give you the $3,595 in cash back and find it in his heart to scrounge you an additional $1,905 discount/credit or whatever-or if you can get your local bank to reduce your lease return amount by $1,905 you are home free. Please keep me informed and let me know how you come out. If you would like you can print out all of our conversations/messages and take them with you to the dealer and the bank. If you can not find a dealer who is willing to work with you Island Lincoln Mercury in Merritt Island,FL is Very aggressive and you might be able to take a quick weekend trip to Florida to make the deal. Bud Ford
