What residual should you expect from a Ford?

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Tom Schindler

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My father has a 2004 Ford Ranger XLT super cab 4 door 4x2 with a 3.0L engine. Added options are a color matching cap, rubber mat in the bed, leather wrapped wheel, AC, PW/PL, cassesste/single CD with MP3. Nothing fancy



He purchased the vehicle in december 2003 for $13,500.00. He is retired, and has two cars, so he did not drive it much.



Dealer offered him $9,400.00 for the vehicle and this was on a Z Plan deal to boot.



So, for a around $4,100.00 Dad drove his 2004 Ranger for 7 years and 2 months.



Ford's rule!!!





Tom



No wonder Gary loves Residule so much. He doesn't know what residual is.
 
that number doesn't seem real ?

mileage?

condition?

was this a trade?



as far as residual, believe me i have made alot more money then you think on RESIDUAL :banana:

BTW: i think i deal with buying,leasing & selling a LIL' more then you do. oh yea, i guess if i wasn't good at it, my company wouldn't assign more area's for me as a fleet admin.

hold on, let me borrow your back patter :bwahaha:
 
that number doesn't seem real ?
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Which number is that? The trade-in value of $9,400 or the original purchase price of $13,500?



mileage?
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25,000 miles.



condition?
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A Ford that is 7 years old with only 25,000 miles. I mean, the body is straight. It has never been wrecked, hotrodded, or abused. Oil was changed once a year, every year. Interior is very clean.



was this a trade?
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Yes, this was a trade. The dealer is selling us a 2011 Ford Escape XLT V6 4X4. Sticker price is $28,900. Z-Plan price is just over $26,000. We have $1,000 customer cash, another $500 bonus cash, and then another $1,000 auto show cash. This brings the price down to $23,500.



When it is all said and done, Mom will end up financing only $6,100 due to the fact of the trade-in and the money she will put down. She wants to pay cash for the vehicle, but I want her to have a short loan to strengthen her credit. My Dad is close to 80 years old, so I want to make sure she is prepared when Dad's time on earth comes to an end. One never knows what the future brings.



We did price a used Escape. A 1 year old Escape will cost about $1,500 less than a brand new one and a used 2011 Escape is about $500 more than this new one.



This is what residual is all about.





Tom
 
RKST,



I feel for you. I really do!



Hopefully you can get some help for this anger issue you have. Do you still think you can blame me for getting banned a long time ago?





Tom
 




RKST,



You poor pathetic little child. How could you possibly be ashamed of yourself, you are much too immature to understand the concept. I am certain that your family must be very proud of you. You hide behind the imagined security of this forum to attack another who is clearly your intellectual superior.



I feel sorry for you and urge you to get psychological help soon.



Mac
 
Thank you to the Forum Moderator for your good judgement and quick action.
Click to expand...



I must have missed the kids acting up on the playground again? Heck, Grandpa doesn't know what residual is and doesn't care...LOL!:throwup:



Does look like maybe 8 posts were hidden/deleted. Must have been a flare up......



'07 ST:driving:
 
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'07 ST,



Yea, we had a mass posting by someone flaming myself, Todd, Dingo, and Reaper.





Tom
 
Book value for a 2004 Ranger XLT Extended cab 4 door V6 4x2 is 10K trade and 13K retail.



Dealer selling at a loss?



Not at all. Dealer selling for a 3K profit.





Tom
 
Sounds like a good trade-in, but then, I haven't referred to Edmunds, which I use like a Bible for such things.



Also, I am not sure how one sale defines residuals for Fords, though this one does speak well for Ford residuals, in general.



TJR
 
as far as residual, believe me i have made alot more money then you think on RESIDUAL
Click to expand...



Residual is how much a car is worth after a few years & miles, so it will always be less than what you bought the car for*.



How can you make money when you're taking losses?



(*barring some rare circumstance that would make the car appreciate in value)
 
KL asked...



How can you make money when you're taking losses?
Click to expand...



Actually, Gary wont say, but I think this is how he does it.



He leases the vehicle for a predetermined time. At the end of the lease, the vehicle is valued at a certain price. At the end of the lease, he sells the vehicle. The vehicle will usually sell more than the value of the vehicle. He takes the difference between the two and this is his profit.



So, to make it simple it could/might look like this...



Original value of vehicle is $20,000

End of lease value is $13,000 after $7,000 in payments are made.

The vehicle is sold for $15,000 after the lease is over.



Profit is essentially $2,000. I am guessing Gary gets a percentage of this profit as a bonus in addition of his salary.



This is only a guess though. I could be completely wrong.



I, on the other hand, buy the vehicle outright. I drive it until the wheels fall off. After 15 years, or so, the vehicle is worn out and only worth scrap value. I will also buy a vehicle very cheap that has been neglected by its previous owner. I do the minor repairs and have very little in the vehicle. I then drive it for as long as I can and then sell it for a little less than I have in it.



So, I purchased a 2000 Explorer XLT in 2006 because my wife's Pontiac was a POS. I paid $3,000 for the vehicle. I put another $2,000 in repairs, so my initial investment is $5,000. Book value on that Explorer was $5,500 in poor condition to $8,000 in excellent condition. The body was perfect, but the maintenance was neglected by the previous owner. After over 4 years of ownership and 70,000 miles of ownership, the value of our Explorer is now between $1,500 and $4,500. The lowest being rough to average trade-in and the highest being retail. If it were to get totalled out, my insurance company would be giving me about what I paid for the vehicle.



If I needed t sell it right away, I don't have much in it so I could price it as low as I wanted to get rid of it fast.





Tom
 
Ah, that makes sense.



Leasing a vehicle is a gray area in my mind, as it is something I personally don't care to do. I understand the old adage about not owning things which depreciate, but I don't want to drive a rental car for 3-5 years, which is what a lease is IMO.



I'm old-fashioned in this, I guess. Shoot, I'm one of the last holdouts for actually buying a vehicle of my family & friends. :cry:



Seems weird that you could lease a car for a few years, and then sell it & retain the proceeds of the sale, when you don't actually own a leased car...at least, not in my sense of the word "own". I understand it, but I don't care much for it.



(i.e. If your house has a mortgage, you don't own it, IMO.)



:back2topic:

$4,100.00 is less than those $5,000 Kias, and you can't even drive those things for 25,000 miles...and they'd probably fall apart long before 7 years. A real vehicle for less than the price of the cheapest new car around is pretty nice. :supercool:
 
"Book value for a 2004 Ranger XLT Extended cab 4 door V6 4x2 is 10K trade and 13K retail."



based on what?

see edmunds link i posted. also dealers in most cases are under the trade in number.



as far as profits after sale. caymen is somewhat correct.

on average it is costing 3.5K to operate a fleet vehicle per year. (w/o fuel, insurance, maintenance). remember a vehicle that is used in a fleet enviorment.

at any point after a year, i am able to turn the vehicle in or hold it as long as i want. sometimes bringing them down to a zero balance. on average i am reaping a 3-4K profit of what is owed after auction. in a few cases up to 6-8K.

you have to remember, this is in a fleet enviorment and that leasing is not always the best way to go for psnl use. i have never leased a vehicle for psnl use.

and to answer tom's question as me getting a percentage profit, i DO NOT. i just do what is right and the best for my company. one other thing, toyota has been good due to the high resale values that go along with the better quality.



btw: what happend with the previous responses???
 
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based on what?

see edmunds link i posted. also dealers in most cases are under the trade in number.
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Based on NADA, KBB, and Black Book. Don't really care about what Edmunds says. Edmunds said that a Ford Ranger had a leather interior option, but that was completely wrong.



My insurance company uses NADA or KBB, whichever is higher.



All I know is that there is nothing funny going on with this sale. The Z-Plan price is from Ford. The first 2 rebates are through Ford Motor company and is confirmed through the AXZ.ford.com website. I the 3rd rebate is because of the auto show. I also know that the dealer is giving us $10,400 for his Ranger. I also know that when he purchased the Ranger new in 2003, he only paid $13,500 when he got it brand new in 2003.



and to answer tom's question as me getting a percentage profit, i DO NOT. i just do what is right and the best for my company.
Click to expand...



it was never a question. If it were, it would have been followed by a symbol that looks like this... "?"



Anyways, I don't care if you do or don't get a bonus for what you do. It doesn't matter to me and honestly, I don't really care.





Tom
 
My 2004 Ranger FX4, Supercab, 4.0L Level 2, automatic with 42000 miles HAS the leather interior (that isn't available) and books out today for about $11700, That's according to KBB, trade-in. I'm sure if I traded it in for a new anything, the dealer would fatten that number just to get a sale.

But, not interested in a bloated full size F-series, they've just turned them into overstuffed roadpigs. Now if I could find a late 90's F-250 with low miles..............



buzz



funny....when I click on the lick now, it has dropped the price to less than $9000. hmmmm
 
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The time when Edmunds said leather was available, leather was NOT available. Unless Fords website and brochures were wrong.



As for your value of under 9K, you must be doing something wrong, or your ZIP code does not value trucks as high, but trade-in for my ZIP of 44310 is from 10.1 to 11.7K





Tom
 
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