Ford Motor Company Lease Agreement: Everything You Need to Know

A car lease agreement is a contractual agreement between two parties (the lessor and the lessee) in which the lessor allows the lessee to use the vehicle for a set period while making fixed monthly payments. Ford Motor Company offers several lease agreements for their vehicles, and in this article, we will delve into the key aspects of a Ford Motor Company lease agreement.

Initial Payment and Monthly Payments

The initial payment for a Ford lease agreement is usually the first month`s payment, as well as any applicable fees and taxes. The monthly payments are set for the duration of the lease term and are calculated based on the vehicle`s residual value, depreciation, and the agreed-upon mileage allowance.

Mileage Allowance

One of the most important aspects of a Ford lease agreement is the mileage allowance. This is the maximum number of miles that the lessee is allowed to drive the vehicle per year without incurring additional charges. Ford Motor Company usually offers mileage allowances ranging from 10,000 to 15,000 miles per year. If the lessee exceeds the mileage allowance, they will be charged a fee per excess mile.

Disposition Fee

At the end of the lease term, when the lessee returns the vehicle, Ford Motor Company charges a disposition fee. This fee is usually a few hundred dollars and covers the cost of inspecting the vehicle, preparing it for sale, and disposing of it.

Wear and Tear

Ford Motor Company expects that leased vehicles will be returned in good working order, with only normal wear and tear. Any damage above and beyond normal wear and tear, such as significant scratches, dents, and excessive wear on the tires, will result in additional charges to the lessee.

Early Termination

If a lessee decides to terminate the lease before the end of the term, Ford Motor Company will charge an early termination fee. This fee varies depending on the length of the lease term and the remaining payments.

End-of-Lease Options

At the end of the lease term, the lessee has several options. They can choose to return the vehicle and lease a new one, purchase the vehicle at its residual value, or simply return the vehicle and walk away. It`s important to note that if the lessee chooses to purchase the vehicle, they will be responsible for paying taxes, registration fees, and any other applicable charges.


A Ford Motor Company lease agreement is an excellent option for those who want to enjoy a new vehicle without the commitment of owning it. Before signing a lease agreement, it`s essential to read and understand all the terms and conditions, including the initial payment, monthly payments, mileage allowance, disposition fee, wear and tear, early termination, and end-of-lease options. With this knowledge, you can make an informed decision that best suits your needs and budget.