A Ford Ranger Lease: Everything You Need To Know
Source: Pixabay
The Ford Ranger may be a reasonably new truck in the American market, but it has been around in other parts of the world for quite some time. The Ranger isn’t the most popular Ford, especially in a sea of F-150 and F-250 trucks, but it’s a competent midsize truck. Plus, it has already been fine-tuned overseas, so we have the best version possible.
If you’re ever so keen to drive a Ranger truck, one available option to consider is to get a Ford Ranger lease.
Leasing is different from buying, and it even has its terms and terminology. Is it a good idea to get a lease? What are the terms you should familiarize yourselves with? We cover what you need to know about a Ford Ranger lease for today’s post.
What Does it Mean to Get a Ford Ranger Lease?
A lease from a dealership or leasing company allows you to drive the Ford Ranger for a set amount of time and miles. Like with traditional auto loans, you’re required to make monthly payments, but it goes towards the usage of the vehicle rather than its full purchase price.
The monthly payment costs are based on the Ranger’s estimated depreciation cost (loss in value) by the end of the lease, instead of the truck’s purchase price.
FEEL SECURE IN THE CAR YOU CHOOSE
You don’t want to buy a car - you want to get the best deal on the car you’re looking for. The CoPilot app will notify you if there’s a similar vehicle in your area at a better price, so you’re always certain you got the best deal available.
How long can I lease a Ford Ranger?
In general, Ford leases last from two to four years. Remember that lease terms (duration) are usually advertised and measured in months since your payments are made monthly (e.g., two years is 24 months).
A typical lease term is two to three years. You’ll be hard-pressed to find a lease shorter than two years since most dealerships don’t offer them.
What happens at the end of my lease?
Typically, the lessor (borrower) returns the vehicle to the dealer or lending company when a lease term ends. The dealer will inspect the vehicle for mileage used and excessive wear and tear. However, most dealerships, including Ford, provide several end-of-lease options to lessors.
- Settle and walk away - Return the Ranger, and it will be subjected to inspections. Once you’ve settled any financial obligation, you’re free to walk away.
- Start a new lease - Lease a new car from the same dealership. The dealer may waive the repair costs and fees if you lease a new car from them.
- Purchase the lease - If you opt for a lease buyout, the vehicle’s purchase price will be based on its residual value - the company’s estimated value of the car by the end of the lease. You can either purchase the Ranger with cash or with an auto loan.
THE BEST TWO-SEATER CARS
If you’re in the market for a speedy two-seater, we’ve got you covered. Check out our list of the best two-seater cars on the market today.
Leasing Terms You Should Know
Leasing uses different terminology than when you purchase a car. To fully understand leasing, you need to understand the standard terms used in a lease transaction.
Capitalized Cost
Also known as “cap cost,” this is the most crucial part of any lease. Basically, it’s the negotiated selling price plus any additional fees (i.e., acquisition fee).
The keyword here is “negotiated.”
Some dealers will try to charge the vehicle’s MSRP, and some may even suggest it’s not negotiable. Don’t fall for that. Negotiate the capitalized cost like you would if you’re buying a car.
Capitalized Cost Reduction
Also referred to as “cap reduction,” this is anything that lowers the cap cost, including your down payment, rebates, trade-in allowance, and more. For example, if you managed to negotiate the purchase price of a Ranger XLT down to $25,000 and you made a $3,000 down payment, the cap cost is now $22,000 with a cap reduction of $3,000.
Acquisition Fee
This fee is charged by the dealer or leasing company for arranging the lease. Although some companies may not charge it, the acquisition fee is non-negotiable or non-waivable. Even if you can lower the acquisition fee, the lessor may raise your interest rate in response.
Acquisition fees may range from $400 to $750 and can be bundled into your monthly lease payments.
Depreciation
Depreciation is the amount by which a vehicle loses its value and makes up the most considerable portion of your lease payment. Depreciation is the difference between a new vehicle’s cost and its value at the end of the lease (residual value), including taxes, interest, and other fees.
Residual Value
This is the leasing company’s estimate of the car’s value at the end of the lease, calculated before signing the contract. Residual is another vital part of your monthly lease payment because the higher the residual value, the lower your monthly payments.
Money Factor
Also referred to as lease factor or lease fee, the money factor is the interest rate you’re being charged. The key difference is that the money factor is expressed as a multiplier. For example, when expressed in the money factor, an interest rate of 5.28% is 0.0022. To convert the money factor into the more standard interest rate, simply multiply by 2,400.
8 QUESTIONS TO ASK WHEN BUYING A USED CAR
So you’re in the market for a used vehicle? We’ve gone ahead and prepped some essential questions to ask when buying a used car.
Term
This refers to the duration of the lease. Typical leasing terms are 24, 36, 48, and 60 months. However, some dealers may offer lease agreements for 38 or 40 months to lower the monthly payments. The longer your lease term, the lower the monthly payments - but you’ll end up paying more in interest.
Excess Wear and Tear
Most lease agreements will include an “excess wear and tear” clause, stating that the lessee (borrower) is responsible for the cost of excessive wear and tear. When a car is being used, it will display signs that someone has been driving it. The tricky part is determining what’s considered “excessive.” We highly recommend thoroughly checking with your contract specifics.
For getting a Ford Ranger lease, refer to the manufacturer’s Excess Wear and Use chart.
Disposition Charge
Leasing companies will charge you this fee to cover the expenses of selling the car at the end of your lease. There are two ways to bypass the disposition fee. First, the fee will be waived if you buy the vehicle as the lease expires. Second, a dealer may waive the disposition fee if you purchase or lease a new car from them.
Get a Curated List of the Best Used Cars Near You
The CoPilot car shopping app is the easiest way to buy a car. Tell us what you’re looking for and we’ll search the inventories of every dealership in your area to make you a personalized list of the best car listings in your area.
Only looking for newer models? CoPilot Compare is the search engine for nearly-new cars. Only see cars five years or newer with low mileage — CoPilot Compare is the best way to find off-lease, early trade-in, and CPO cars.
The best part? CoPilot is built using the same technology that dealerships use to buy and sell their inventories, so we have more info on each vehicle than competitors. CoPilot doesn’t work with dealerships, so there are no sponsored posts or other shady practices — just the most info on the best cars. Check out our About Us page to see how CoPilot works.
