The only thing I can tell you is that you won't have to pay $5.75 for a gallon of gas. AAFES sells gas on base for prices comparable to stateside prices and if/when you travel, you can buy coupons that 90% of local gas stations will accept. Bummer about the rest of the deal. You might be better off coughing up the $1100 and chalk it up to a lesson learned if you can't sell it for what you owe.

 

Actually, I'll get up to 400 liters worth of gas coupons per month, which is still ~$2.50/gallon. Anything over 100 gallons that I use in a month, I'll have to pay the economy price of ~$5.75 per gallon.

 

It looks to me like they gave you less than $10,000 for your trade in. Line b includes your trade value and your rebates. Subtract the rebates from that number, and that is your trade in dollars.

Your lease should have looked more like this.

a 33,825
b 14,500
c 19325
d 24950

You get $5625 to pay line f. If that number is greater than line f then your Lease is all paid for up front, and the left over is paid to you in cash. This is working with a $1500 in rebates, I don't remember what they were for the 05, I was looking at the 04s.

 

Keep in that I used the numbers you gave me. The dealer would have over paid for your trade because you over paid for the truck. With the numbers I posted above you should adjust the trade down a good 3k.

I think they included the rebates in with your trade after they first added them to MSRP. Is line a 40,325?

 

You can always try to find someone to take over your lease from you. Im not to sure if they allow that in the states but i did that a few years ago. That way you wont have to pay anything out of your pocket, and you will be off the hook for the rest of your lease payments.

Maybe even another member here who has an older model truck would be interested.

Just my 2 cents, hopes this helps you out.
Later Trev
P.S. have fun in Italy

 

It looks like this...

a 40090
b 10008
c 30082
d 24950
e 5132
f 2597
g 7729
h 24
i 322

1 KRAZY KANUCK, that's a good idea and we've checked into it. According to Ford, we can add a third party to the lease, but it won't remove our name from the lease, so if they don't pay, it falls back on us.

Here's another question. Will the value of the truck drop more than $1600 by July? If I keep it right up until I leave, I'll have paid that much more toward the lease. $1600 minus the $1200 they want out of pocket now will leave a $400 cushion for depreciation. Right? Should I off it ASAP or hold out til the last month to end the lease?

 

Up in Canada as long as ford credit approves the other person, then the original person is free and clear from their obligations with ford. You would think that the states would be the same thing.
Did you talk to your dealer or did you talk to ford credit directly. Im sure that if you talked to ford credit directly they would be alot more helpful than the dealer, especially considering your circumstancs.

As for the second part of your question, as long as you make more payments you are getting yourself into a more favorable position.
Hope this helps you out.
Trev

 

I don't know, but I have heard that getting out later in the lease is always better.

Those numbers mean that the dealer sold that truck to the leasing company for 40,090. You have to pay the leasing company for the depreciation of the vehicle. That is the difference between a and d. 40090 - 24950. The depreciation is 15,140. Plus you pay the leasing company the total of line f as the cost of financing the vehicle. 15,140 + 2597 = 17737.

That is $739 per month for a 24 month lease when you include the value of your trade as a cost of the lease. We still have to subtract out the rebates, so at a $1500 rebate the monthly cost is $676.54

I hope this helps you understand the math a little better.

 

Yes, that helps a lot. Thank you very much. So that means that I got $8500 for my trade ins above paying off my car. $676 - $322 = $354 (x 24 months) = $8496. That's of course if you say that I paid $40,000 for the truck.

 

The problem with trying to get rid of a brand new truck is if you go to a dealer, they will need to buy it for a few thousand less than they can get one from the factory. Take the invoice price of your truck, less rebates and less hold back and then subtract a figure (maybe $3K) and you have a fair idea of what the truck is worth to the dealer. Any more than this and they will just sell their customers a new truck.

When there are big rebates and other promotions, it craters the value of our trucks.

 

overview:
YOU signed up for an 11% interest loan.

YOU gave them 2 cars valued at $20K for a mere $13K (you lost $7K).

YOU paid $40K for a truck that normal people pay $33K for.

I just wanted to make a few more points.

You went to the Ford dealer. Ford didn't show up at your door and put a gun to your head demanding you give them your two cars.

No one stole anything from you. So, you need to get over yourself.

I think it is funny you would go back to the dealer you think treated you unfairly to see if they would give you a fair amount of money for your truck.

For anyone else, if you think a dealer is not giving you what your car is worth on trade then sell it yourself.

Are you an E-1 or something? Maybe you can take some classes in finance through some mail order classes or something.

 

The websites like KBB and Co., always show a high price, for everything. Do not go by them.

If I were you, I'd pay the $1200. You'll be debt free, don't make the same mistakes again when you get back.

Buy a Ducati in Italy, have fun!

 

Easterisland was pretty harsh, but honest and to the point.

I'm not a huge fan of leasing for this reason. It's to confusing when something like this happens. At least when you buy there are only really three numbers you have to worry about.
1. What am I paying?
2. What is my interest?
3. What's the payment?

Sound like eating the $1200-$1300 would be the easiest solution. Maybe try to sell it outright, now that you know what the dealer is going to give you for it, maybe you can get a little more $$ for it. You don't have any family you can trust to pay the lease payment and drive and take care of the truck, and just leave it in your name. Hell, for $322. a month I know I would do it.


Good Luck,
Jeffery

 

Even if he had bought it outright...

He would have a $40,000 truck that is worth $28,000 and he would owe like $38,000.

He is actually a little better off with the lease. The only way to not lose money by selling a truck before its worth nothing is to never buy it.

At least with a lease he only pays for the mileage/usage.

If you take 1400 miles * $.35 it would equal 490 of just mileage usage. So take a $40,000 truck minus 5,000 initial drive off depreciation and another $1,000 in usage you get a truck that is worth $34,000. Sounds like a deal that they are only asking $29,000 for it.

BB

 

Yes, that is the bottom line on your trade. What you owe on the car is not a factor here because that is a decision you made in the past.

In summary, they over charged you by $6,000 on the new truck, and gave you $8,500 on your trades. That puts your trade at a realistic $2,500, which was used to lower your lease payment. Remember, when the ad says $3000 down, that includes the $1,500 rebate. So compared to the ad you are at about $4,500 due at signing, 2500 + 1500.

This has been an expensive education for you. I appreciate the maturity you showed in working through the numbers.