Ford Lease

This ultimate guide to Ford leasing breaks down how the process works and details all the associated costs.
Written by Drew Waterstreet
Reviewed by Jessica Barrett
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Leasing is a great way to try out some of the revitalized Ford models, like the Bronco or the Mustang, without committing to a long-term relationship. Before you sign the lease agreement, it’s important to understand the unique costs of leasing vs. financing.
Regardless of the Ford model you choose to lease, it is a great opportunity to test out a car without committing to purchasing the vehicle. That said, leasing isn’t free of disadvantages. Since it comes with built-in services, you’ll be paying more for those perks than you are for the value of the vehicle you’re leasing.
The
car insurance
comparison and broker app
Jerry
is here to break down the pros and cons of leasing a Ford. We’ll tackle the question of whether leasing a Ford is worth it—from all vantage points—then drop some hints for saving on your
Ford insurance cost
no matter which model you choose.
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How to lease a Ford

The first question you should ask yourself when considering a Ford lease is: what type of lease fits your budget? Here is a personal financial checklist to help you get started:
  • Check your credit score. You’ll be targeting a credit score of over 700 to qualify for an affordable monthly lease. Credit scores between 640-699 could cost you hundreds more per month on your lease.
  • Review your budget. Regardless of leasing or financing, your monthly payment should not be more than 15% of your gross monthly income.
  • Prepare for a down payment. Ford leases are typically accompanied by a $1,000 down payment and the first month's payment, so
    make sure you have enough funds
    available to initiate your lease.
  • Calculate your annual mileage. Ford offers up to seven different mileage options, so it’s important to evaluate which one is most efficient for your driving practices.
If your first lease offer doesn’t align with your financial checklist, don’t fret. It’s important to compare multiple lease offers.
If you want a taste of nostalgia, you may want to look into leasing the
Bronco
or the
Mustang
. If you're just looking for a functional and reliable vehicle, leasing an
Explorer
could be a good option. We’ll take a deeper dive into the costs associated with each of those models a little later.

The final step: shop for insurance

Unfortunately, car insurance isn’t factored into your monthly lease payment. You’ll have to seek out car insurance from a reputable provider. Per your lender's requirements, you'll probably have to add
comprehensive
and
collision
coverage to your policy.

How much does a Ford lease cost?

We already calculated how much you can afford per month, but is leasing a Ford worth it compared to financing one? Here are some factors that can influence total leasing cost:
  • The Ford model you choose to lease 
  • Your credit score
  • Your lease term
  • Residual value
  • Any selected accessories or features 
  • Sales tax in your state
Residual value is a key term here. This term describes how well a vehicle retains its value against depreciation. Fords don’t typically have a high residual value, but it depends on the model. 
Dealerships counter higher rates of depreciation with higher monthly lease payments. Keep this in mind when evaluating the cost of certain models.
Speaking of cost, let’s take a look at the estimated total due at signing and subsequent monthly payments for a 2022 model of the Mustang and the Explorer.
  • Mustang: $835 First month’s payment + $1000 down payment = $1835, followed by $1,121 monthly payments for the lifetime of the lease
  • Explorer: $773 First month’s payment + $1000 down payment = $1773,  followed by $600 monthly payments for the lifetime of the lease
Your lease will also require you to pay a standard $645 acquisition fee, regardless of the model you select.
These costs are just estimates. Your total leasing costs can vary greatly based on the terms of your agreement, down payment, your credit score, and the factors mentioned above. It is noted in Ford’s leasing information that lease payments are usually lower than similar term finance payments.
MORE: How to calculate a car lease payment

Services included in a Ford lease

Before you head to the dealership, it’s important to understand the entire package that you'll be getting with Ford’s Red Carpet Lease Program. Regardless of model, here are some benefits that you can expect to receive when leasing a Ford:
  • Variety of popular
    lease terms
    , including 24/36 months
  • Seven different mileage options to choose from
  • Vehicle customizations with approved accessories
One unique feature of Ford’s Red Carpet Lease program is its
GAP benefit protection
. This policy waives the gap between your insurance payoff and your outstanding lease balance if your vehicle is stolen or damaged beyond repair capacity.
For maintenance coverage, you’ll have to purchase an optional add-on. Ford offers a WearCare program that typically waives any maintenance costs up to $5,000.
Be aware that the dealer may try to talk you into adding expensive options. Cosmetic upgrades and extra accessories might sound appealing, but they will only increase your monthly costs. 
If they happen to be within your budget, embellish away!
Key Takeaway There are a ton of factors that influence the monthly price of a Ford lease, but it’s often more affordable than financing a brand new 2022 Ford with similar terms.

What to do when your Ford lease is up

It’s the moment of truth. Now that your Ford’s lease has reached its end date, it’s time to make a decision—do you return the vehicle or purchase it? Here’s some more information to help you decide.

How to return a leased Ford

If you’re ready to test out a new Ford model, it’s time to return your current leased vehicle. Here is a step-by-step guide on how to do just that.
  • Complete a Ford
    Wear and Use
    Assessment
  • Consider appropriate
    vehicle repairs
  • Prepare vehicle for return by removing personal items 
  • Satisfy any outstanding financial obligations
  • Return the vehicle
Even after you’ve fulfilled all the requirements in this checklist, you’ll be responsible for a $395 disposition fee to handle the return of the vehicle.

How to purchase a leased Ford

If you’ve fallen in love with your leased Ford, you do have the option to purchase the vehicle. If you do decide to purchase it, you will not have to pay the dealer for excess wear and use or excess mileage.
Ford has predetermined prices for all purchases of leased vehicles. Reach out to your original dealership for this price. You can request this before the lease end as well if that helps narrow down your decision.

How to find affordable car insurance for a Ford

Many dealers will require you to purchase higher amounts of insurance coverage as part of the lease agreement. Don’t worry, the experts at
Jerry
can help keep your insurance budget in check. 
Getting affordable insurance for a leased Ford is easy with Jerry. Just download the
trustworthy super app
, answer a few simple questions, and you’ll get customized quotes from top insurance providers in under a minute. 
On top of hands-on, intuitive support from Jerry’s team of insurance geniuses, you could get an average of over $800 per year in insurance savings when you switch on the app! 
“This app is all about savings!
Jerry
just saved me $193/month on my car insurance. They literally found me the cheapest policies out there and with better coverage! Seriously, just sit back and watch Jerry work its magic.” —Rachel B.
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FAQs

Ford estimates that lease payments are usually lower than similar term finance payments. It’s a financially viable option depending on your financial goals.
Many Ford models don't hold residual value incredibly well, so this may lead to slightly higher monthly payments. However, an affordable Ford model to lease is the Ford Escape.
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