A Ford Explorer Lease: Everything You Need To Know
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Among Ford’s extensive lineup of trucks and SUVs, it’s safe to say that the three-row Ford Explorer is best suited for families. With its excellent passenger and cargo space plus good performance, it’s hardly a surprise that the Explorer is a well sought out SUV.
If you’re looking to get your hands on this Ford SUV, one of your potential options is to get a Ford Explorer lease.
For today’s post, we’ll walk you through what you need to know about a Ford Explorer lease. What are its pros and cons? Is a lease right for you? Keep reading to learn more.
What is a Ford Explorer Lease?
Let’s get this out of the way; leasing differs from buying.
When you lease a Ford Explorer, you’re essentially going into a long-term rental agreement with the car dealership. Like with a typical car loan, you’re expected to make monthly payments. However, unlike financing, where your payments go into the vehicle’s equity, monthly lease payments are for the right to use the Explorer for an agreed amount of time and miles.
If you want to own a Ford Explorer, a lease isn’t the way to go - unless you exercise your purchase option.
With a Ford Explorer lease, you’re paying to drive the car, not to buy it. Basically, you’re paying for the Explorer’s expected depreciation or loss of value (plus taxes and fees) while it’s under your care. You have to return the vehicle to the dealership at the end of the lease.
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Why Apply for a Ford Explorer Lease?
Due to how it works, leasing is not for everyone. However, leasing does offer several advantages that will help you determine if it’s right for you.
Lower Monthly Payments
The monthly payments are generally 30-60% lower than a typical car loan. As mentioned, you’re only paying for the depreciation cost during the lease term (duration) instead of the car’s total value - thus, the lower monthly payments.
The lower monthly payment is perhaps the most significant advantage of a lease since you’ll be able to drive a car (i.e., Ford Explorer) that otherwise, you can’t afford.
Low Maintenance, No Repair Costs
Repair and maintenance fees are always a significant concern when purchasing a vehicle via an auto loan. Meanwhile, you may not have to worry about excessive repair and maintenance fees with a lease.
Typically, leases last for about 24 to 36 months. During this time, your Explorer will be under the manufacturer’s bumper-to-bumper warranty. Therefore, you don’t have to worry about major repair and maintenance costs - some dealers may even offer free routine maintenance.
Drive the Latest and Greatest Models
The latest vehicle models are expensive, especially the upper trims. Driving a Limited or even the King Ranch model will be more within your financial reach when you get a Ford Explorer lease.
Once the lease expires after two to three years, you can simply lease another latest and greatest model with cutting-edge tech and performance.
Fewer Upfront Costs
When you purchase a car, you’re usually required to put down a sizable down payment so you can get a decent rate. Conversely, you may drive the SUV with little to no money down with an Explorer lease. However, there will likely be several upfront fees that may be rolled into your monthly payment.
No Hassle of Reselling
When your lease ends, you just return the car to the dealer or leasing company. That’s it! No need to go through the hassles of reselling the vehicle. Plus, the car’s value by the end of the lease is none of your concern - you can literally walk away.
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Why is a Ford Explorer Lease a Bad Idea?
Leasing may sound like a good idea, but it comes with several disadvantages that you should know.
Limited Mileage
Do you spend a lot of time behind the wheel? If so, leasing is off the table unless you’re willing to pay for expensive mileage overage fees. One of the biggest drawbacks of leasing is the limited mileage - usually around 10,000 to 15,000 miles per year. Mileage restrictions are put in place to preserve the condition of the vehicle. Overage fees may cost as much as 15 to 20 cents for every excess mile.
No Ownership
You’re paying for the right to drive the vehicle in leasing, and your monthly payments cover the depreciation cost. In addition, you’re left with no car at the end of the lease unless you take on a new lease or loan. If you’ve always wanted to own your very own Ford Explorer, a lease isn’t the way to go.
Potential Fees
Since you’re essentially renting the Explorer, you’d better take care of it. Otherwise, you’ll be on the hook for excessive wear and tear fees. Dealers and leasing companies are known to have strict wear and tear guidelines, so a lease might not be for you if you’re rough on your vehicles.
On top of that, there are also the aforementioned excess mileage fees which can also get very expensive. Furthermore, you’ll also have to pay for the acquisition fee and a disposition fee at the end of the lease.
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Is a Ford Explorer Lease Right for Me?
Before you get in touch with your local Ford dealership or leasing company, here are some considerations that will determine if a lease is right for you or not. Consider leasing if you:
- Have a reasonable estimate of your mileage needs since mileage is limited.
- Can take good care of the vehicle and attend to its routine maintenance.
- Prefer driving an Explorer SUV under the manufacturer’s warranty, so you don’t have to worry about costly repair and maintenance.
- Like driving the latest vehicle models with top-of-the-line tech and safety features.
- Don’t mind not owning the Explorer at the end of the lease, knowing full well that you can hop on to a new vehicle with a new lease.
If for some reason, you want to keep driving your Explorer, Ford provides several end of lease options. One such option is purchasing the leased vehicle after satisfying any remaining financial obligations.
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