Beau Townsend

What is Leasing?
A lease is a contract for use of a vehicle for a specified period of time, for an agreed upon periodic
payment.
• Leasing allows the customer to drive his/her vehicle of choice without ownership. Lessees with a
purchase option may choose to purchase the vehicle at the end of the lease term.
• The customer pays for the value of the vehicle used over the term rather than paying for the value
of the entire vehicle.
• Title to the vehicle remains with Ford Motor Credit Company, the legal owner of the vehicle.
Lease payments are based on the price of the vehicle minus its lease-end value (the amount Ford
Motor Credit Company determines the car will be worth at lease termination). Lease payments also
include rent charges based on the full cost of the vehicle.

Lease Versus Retail Financing
Customers choose leasing over retail financing for several reasons:

• Low monthly payments – Instead of paying the full life value of the vehicle, the lease customer
pays only the value of the vehicle used over the lease term.
• No trade-in hassles – The lease-end residual value is established at the beginning of the lease
and is often referred to as a “guaranteed future value.” Ford Motor Credit Company assumes the
risk that the vehicle will be worth the lease-end value so long as proper care for the vehicle is
provided. The lessee is never “upside down” at the end of the lease due to a weak used car
market because they don’t take on this risk.
• Shortened trading cycle – The customer may choose to get a new car more often with leasing
(when compared to financing). In addition, to achieve the same payment on retail financing as
compared to a short-term lease, requires a much longer retail financing term.
• More car – Leasing is popular because customers may be able to drive more car for their monthly
lease payment. Instead of settling for the car they can afford with a long-term retail financing
payment, customers may choose to upgrade for about the same payment and get the car they
want through leasing.
• Options at lease-end – When the lease is completed as agreed, the lessee has three attractive
options at lease-end:
1. Return the vehicle and lease another Ford, Lincoln or Mercury vehicle.
2. Purchase the car for the pre-established price and keep it or sell it if it is worth more than the purchase
price and keep any profit.
3. Return the vehicle to the original leasing dealer and “walk away.”

RCL Product Features
Gap Protection
Red Carpet Lease customers are not responsible for any deficiencies resulting from the difference
between the full amount of insurance proceeds received from a total vehicle loss and the lease
payoff (the “gap”). Ford Motor Credit Company waives the “gap”, provided the vehicle was insured
as required under the terms of the lease. The lessee will be responsible for any past due amounts
and the insurance deductible.

Peace of Mind
The Peace of Mind feature offers options to a qualified party (defined below) that allows the party to
keep or dispose of a leased vehicle in the event of a customer death. The options are:
• Keep the vehicle and continue to make monthly payments
• Purchase the vehicle
• Complete a Transfer of Lease to a third party
• Return the vehicle to Ford Motor Credit Company or the dealership where the vehicle was
originally leased as soon as possible (not to exceed 60 days from the customer’s death).
Customers should be referred to Ford Motor Credit Company to exercise Peace of Mind since
various forms are required to complete the process.
If the vehicle has damage covered by the lessee's auto insurance, the damage must be repaired
prior to the vehicle being returned.
Customer Eligibility
A customer who was at least 62 years old at lease inception.
Qualified Parties:
The Peace of Mind feature may be exercised by any of the following qualified parties whom will sign
and submit a form with their selected option:
• Spouse of the eligible customer, regardless of the spouse’s age at the date of contact inception.
• Non-spouse co-buyer on the contract provided this person was 62 years of age or older at the
date of contract inception. The co-buyer may be listed either first or second on the contract to be
eligible.
• The customer’s estate.

Chris York Leasing Manager Phone  937-898-5841 Fax  937-898-5030 cyork@beautownsendford.com