Lease price not including $7,500 discount BUT VW ID4 Does

[M9000]

So I was considering the Mach e as a lease, however Ford is not knocking off the $7,500 off the sales price to help lower the payment, however, they get to keep the money for themselves on the lease... Very greedy in my view...

I then went to the VW dealership and test drive the ID4 Pro S... Yes, it's a different car, but but on a lease, however THEY DO APPLY THE $7,500 rebate immediately, and reducing the price of the vehicle.. Which is a very nice bonus for a lease...

Do any other manufactures apply this rebate to leases other than VW?

I sure wish Ford did, as I'd lease the Mach e, but $7,500 price reduction on a lease for a car that I'm not going to keep because the tech is changing so quickly, is something very hard to ignore.

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[4sallypat]

For leases under IRS 45W so far:
Mercedes EQ series
Audi PHEV & EV Etron
Chrysler PHEV
VW iD4
BMW iX and i4
Volvo PHEV & EV
Polestar 2
Lucid
VinFast VF8 (partial)
Ally (3rd party leasing)

 

[macchiaz-o]

Ford is not greedily keeping $7,500 for themselves. Nor are other manufacturers giving you their full tax credit. There are various knobs that a lender can play with when renting a vehicle to you.

Ford Credit increases the lease residual which lowers your monthly payments. And while I don't know any specifics, I would not be at all surprised if other lenders are increasing the interest rate and/or decreasing the residual in order to provide buyers with "$7,500 cash off." This is neither hard nor illegal.

 

[dmac1418]

Check out Ford Options for a lease-like model that you can return after 36 or 48 months by paying a disposition fee, just like you would a lease.

It’s technically a balloon payment loan but because of that you’re eligible for the tax credit.

 

[M9000]

For leases under IRS 45W so far:
Mercedes EQ series
Audi PHEV & EV Etron
Chrysler PHEV
VW iD4
BMW iX and i4
Volvo PHEV & EV
Polestar 2
Lucid
VinFast VF8 (partial)
Ally (3rd party leasing)

Thanks for sharing... That's exactly what I was looking for...

 

[M9000]

Ford is not greedily keeping $7,500 for themselves. Nor are other manufacturers giving you their full tax credit. There are various knobs that a lender can play with when renting a vehicle to you.

Ford Credit increases the lease residual which lowers your monthly payments. And while I don't know any specifics, I would not be at all surprised if other lenders are increasing the interest rate and/or decreasing the residual in order to provide buyers with "$7,500 cash off." This is neither hard nor illegal.

Great comments... Thanks for this... Does anyone know what the residual is being quoted for the ME premium with regular battery is? For the ID4 Pro S they quoted today 51.5%

 

[macchiaz-o]

Great comments... Thanks for this... Does anyone know what the residual is being quoted for the ME premium with regular battery is? For the ID4 Pro S they quoted today 51.5%

The residual percentage varies depending on the combination of all of these factors:

• model year
• trim (e.g. Premium)
• AWD or RWD
• standard range or extended
• annual mileage, in 1,500 mile increments in the range from 7,500 to 19,500
• Ford Options versus lease
• loan or lease duration (e.g. 36 month Options, or 24-month lease)
• your credit scoring "Tier" as determined by Ford Credit <-- this doesn't change the residual but does impact your interest rate

Once you've determined all of the above, find a specific vehicle at a local dealer's web site that matches the first four factors above and email or call that dealer to ask for the residual (when combined with the last 4 factors).

I have a calculator here that you can play around with to get an idea of what the balloon residual was for Ford Options at some point around a year ago. The numbers have changed several times since then and I haven't been updating this anymore, but it will give you a rough idea of how the various levers work.

https://www.macheforum.com/site/posts/92089/

Also be aware that Ford Options is a balloon loan, not a lease, but the calculations are nearly identical. Also note that Ford Credit doesn't treat them identically for various reasons but especially because of the $7,500 tax credit. Therefore don't assume that residuals or interest rates on Options are the same as on leases. (They are in fact different.)

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