longschlng22
Posts: 19
Joined: Mon Jun 02, 2014 12:31 pm

Actual residual value of your FFE...

Sat Mar 31, 2018 10:32 pm

I just got my third focus electric today. It was a 2017 and a lease as well. They set the residual at 8300 ish for 10.5k miles. That ridiculously low residual is not what I am actually seeing in the real world.

I traded in my 2015 FFE with 24 k miles for 13,700. I also consigned sale of my 2014 FFE with 29k miles a couple months ago for 11000. Those 2 prior ones were purchases though.

So with the rebates and dealer discounts they gave me, I essentially upgraded to a new one for roughly 1500 before factoring in interest over the life of the lease. Now factor in CA rebate and I'm up!

Big reminder then to check your cars value before lease turn in to make sure you are not giving away money.
2018 Tesla Model 3
2018 Honda Clarity PHEV - Red
2017 Ford Focus Electric - Kona blue, leather
2015 Ford Focus Electric - Electric blue, cloth
2014 Ford Focus Electric - Oxford white, cloth
2013 Toyota RAV4EV - Blizzard Pearl

longschlng22
Posts: 19
Joined: Mon Jun 02, 2014 12:31 pm

Re: Actual residual value of your FFE...

Sun Apr 01, 2018 7:01 am

My down payment was the equity of my trade in. I financed during the 0% interest loan offer and still owed about 10900. There was 2800 in equity that was used as the down payment. Of course that will lower the monthly payments as well.

Down payment will not lower the residual. That is set by the manufacturer every month. Your alotted mileage changes the residual. At 10.5k miles a year, that was 27% residual of msrp. For 15k miles it would be 24%, 12k is 25%.

I normally would do either 0 out of pocket lease deals if the money factor (interest) is low or one time payments when it makes sense. Like a Toyota tacoma with high residuals and high interest.
2018 Tesla Model 3
2018 Honda Clarity PHEV - Red
2017 Ford Focus Electric - Kona blue, leather
2015 Ford Focus Electric - Electric blue, cloth
2014 Ford Focus Electric - Oxford white, cloth
2013 Toyota RAV4EV - Blizzard Pearl

NightHawk
Posts: 535
Joined: Fri Sep 26, 2014 10:20 pm
Location: Southern CA

Re: Actual residual value of your FFE...

Sun Apr 01, 2018 1:14 pm

With that 8300 or so residual price, what is the end of lease buyout price then?
2014 Ford Focus Electric - Oxford White, Cloth Seats (Lease ended 9/28/2017)

scottt
Site Moderator
Posts: 310
Joined: Mon Apr 06, 2015 6:00 am

Re: Actual residual value of your FFE...

Mon Apr 02, 2018 5:31 am

Never EVER put money down (capital cost reduction) on a lease.

EVER
2015 Magnetic FFE (aka Magneto) - Retired
2017 Kona Blue FFE (aka King Kona) - Current

longschlng22
Posts: 19
Joined: Mon Jun 02, 2014 12:31 pm

Re: Actual residual value of your FFE...

Tue Apr 03, 2018 7:31 am

The end of lease buyout for the new 2017 FFE is 8,300. What my 2015 FFE was worth after about 34 months of ownership was 13,700 for trade in.

What I am saying is that there is a huge discrepancy between estimated residual value after 3 years by the banks when they are making residual value projection for the lease deals and the real residual value. If your lease is almost up, check your cars value and you can use the equity to sell or trade in extra value.

I didn't put any of my own money down on the lease. There are situations where some people need to put money down on their lease either from having suboptimal credit or ridiculously high interest on the lease deal. My example for the tacoma applies to vehicles with ridiculously high residual values but large interest rates. You are chancing on getting in an accident and not recouping sunk costs though.
2018 Tesla Model 3
2018 Honda Clarity PHEV - Red
2017 Ford Focus Electric - Kona blue, leather
2015 Ford Focus Electric - Electric blue, cloth
2014 Ford Focus Electric - Oxford white, cloth
2013 Toyota RAV4EV - Blizzard Pearl

campfamily
Posts: 438
Joined: Tue Apr 21, 2015 8:07 am
Location: Southern California

Re: Actual residual value of your FFE...

Tue Apr 03, 2018 11:36 am

longschlng22 wrote:The end of lease buyout for the new 2017 FFE is 8,300. What my 2015 FFE was worth after about 34 months of ownership was 13,700 for trade in.

What I am saying is that there is a huge discrepancy between estimated residual value after 3 years by the banks when they are making residual value projection for the lease deals and the real residual value. If your lease is almost up, check your cars value and you can use the equity to sell or trade in extra value.

I didn't put any of my own money down on the lease. There are situations where some people need to put money down on their lease either from having suboptimal credit or ridiculously high interest on the lease deal. My example for the tacoma applies to vehicles with ridiculously high residual values but large interest rates. You are chancing on getting in an accident and not recouping sunk costs though.
If somebody offered me $13,700 for my 2015 (mine is 35 months old, with 31K miles), I'd take it in a heartbeat. How did you do that?

You still haven't posted what your lease payment is.

Keith
GONE - 2015 FFE, Magnetic with leather interior, debadged & tinted
38,500 miles (since May 2015), average 246 Wh/mile

REPLACED WITH - 2018 Tesla Model3, LR RWD, Obsidian Black
11,000 miles (since Nov 2018), average 235 Wh/mile

longschlng22
Posts: 19
Joined: Mon Jun 02, 2014 12:31 pm

Re: Actual residual value of your FFE...

Tue Apr 17, 2018 7:39 pm

With taxes, I am at 130 a month in a city that charges 8.25%. Count that 2500 CA rebate in and that would essentially be 60 a month. For the trade in offer, I just did the KBB instant offer. The offer was 13000 instant, but one of the 3 offers connected with KBB offered me 13,700 over the phone. I relayed that to the dealership where I got the new FFE and they accepted that number as the trade in. After 2.5 years, I might trade in my new FFE again if the actual value is way above the predicted residual.

That reminds me of when I had a 2013 rav4ev. I sold it after 2 years of leasing and essentially got back everything I put into the lease. Just saying, check your cars value before turning in the lease.
2018 Tesla Model 3
2018 Honda Clarity PHEV - Red
2017 Ford Focus Electric - Kona blue, leather
2015 Ford Focus Electric - Electric blue, cloth
2014 Ford Focus Electric - Oxford white, cloth
2013 Toyota RAV4EV - Blizzard Pearl

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