Update on Mach-E launch progress from engineering friends in Mexico

[ChasingCoral]

So, I suppose no one heard the bad news about Martinrea, and the potential two-week delay in MME production? If any Martinrea insiders are around, some comments from you would be appreciated right about the time everyone with a build date in the next couple of weeks starts panicing.

What’s a Martinrea?

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[trutolife27]

 

[bshaw]

Listening to the video and I realized why she was able to take one of the first MME deliveries. "...We have a 2021 GT Heritage on order..." And then also mentioned owning a Raptor. So yea, she's like one of Ford's best customers. I wonder if you get approved to buy the GT heritage, they throw in an MME for your daily driver vehicle.

 

[eastern refugee]

Some people can be really dense. Take an economics course.

The vast majority of people buying this car intend to claim the full federal credit. They understand their cost to be the nominal price charged by Ford less the tax credit(s) they expect to claim.

There may be some who will buy this car who are not be able to take advantage of the full tax credit. Most of this small set of buyers will have made an error in understanding the tax rules and valued the car expecting to claim the full credit. A few will knowingly value the car at the price paid less the credit claimed despite it not being the full $7500.

Those few transactions will move the average price higher, but the increase will not be significant. More of an impact will be the transactions with xplan discounts driving the market value down.

The fed tax credit is a mechanism to distribute federal funds to each manufacturer that commits to selling electrified vehicles. The scheme is meant to allow the government to avoid meddling in decisions regarding a manufacturer's choice to offer EVs, while tying the funds distribution to the actual sale of EVs. The manufacturer is incentivized to offer EVs they believe consumers will buy to gain access to the funds.

The manufacturer knows the customer will claim the credit, so they offer the car at what they think the market will bear plus the value of the incentive. The customer knows they will get the credit so they are willing to pay a higher nominal price for the car because they expect to get the credit later. The consumer's decision to purchase the car is made bearing in mind that the credit exists.

I disagree. I am buying an FE with a value of $60,000. I am buying it because of the car and the Ford incentives. VERY few people look at the tax credit as it is
1. not guaranteed
2. does not impact the monthly car payment.

In short the tax credit assuming you get to use it is just cash after the fact. When people buy a car, tax credit or no credit, they are buying it based on the monthly price. Can I afford this or not??? I do not know of a single person who calculates the POSSIBLE tax consequences. Yes I am self employed so like others we look at the impact of how much can we write off etc., but the tax credit is not even computed until likely October. Most self employed people file in October rather than on April 15. As such it is silly to even calculate what the tax might be.

 

[malba2366]

I disagree. I am buying an FE with a value of $60,000. I am buying it because of the car and the Ford incentives. VERY few people look at the tax credit as it is
1. not guaranteed
2. does not impact the monthly car payment.

In short the tax credit assuming you get to use it is just cash after the fact. When people buy a car, tax credit or no credit, they are buying it based on the monthly price. Can I afford this or not??? I do not know of a single person who calculates the POSSIBLE tax consequences. Yes I am self employed so like others we look at the impact of how much can we write off etc., but the tax credit is not even computed until likely October. Most self employed people file in October rather than on April 15. As such it is silly to even calculate what the tax might be.

Buying based on monthly payment is a horrible financial strategy and assures that you will remain in debt. Buy what you can afford and then decide what the most advantageous way to finance that purchase is. If you have a business the Mach E is the wrong vehicle for you from a purely financial standpoint...you would do much better with a vehicle with GVWR over 6000lb.

 

[eastern refugee]

Buying based on monthly payment is a horrible financial strategy and assures that you will remain in debt. Buy what you can afford and then decide what the most advantageous way to finance that purchase is. If you have a business the Mach E is the wrong vehicle for you from a purely financial standpoint...you would do much better with a vehicle with GVWR over 6000lb.

Actually no. I buy the car that best suits my needs. I drive around 25,000 miles a year. I would rather have a BEV that will last 250-500,00 miles so that I can get out of the car payment stuff. If you buy an ICE car you have to deal with maintenance etc. Sure you can write it off but the reality is that you can never get dollar for dollar on a write off. the average is for every $1 that you write off you save roughly $0.33. In short you are better off to pay the higher taxes then buying for a wrote off especially when it comes to cars. The $7500 I may/may not get. Now if Ford had a red carpet lease like they do on other cars I would jump at that in a heartbeat. Why??? Because I could use the $7500 as a down payment and screw the tax credit.

 

[RonTCat]

What’s a Martinrea?

About $10.

An automotive supplier, primarily chassis and powertrain components.

 

[macchiaz-o]

When people buy a car, tax credit or no credit, they are buying it based on the monthly price.

Not me.

I do not know of a single person who calculates the POSSIBLE tax consequences.

Hi! Have we met?

 

[GoGoGadgetMachE]

I disagree. I am buying an FE with a value of $60,000. I am buying it because of the car and the Ford incentives. VERY few people look at the tax credit as it is
1. not guaranteed
2. does not impact the monthly car payment.

In short the tax credit assuming you get to use it is just cash after the fact. When people buy a car, tax credit or no credit, they are buying it based on the monthly price. Can I afford this or not??? I do not know of a single person who calculates the POSSIBLE tax consequences. Yes I am self employed so like others we look at the impact of how much can we write off etc., but the tax credit is not even computed until likely October. Most self employed people file in October rather than on April 15. As such it is silly to even calculate what the tax might be.

to be clear - if you do Options, we've been told by a Ford Credit insider on here that you can have the payment adjusted after getting the credit. assuming your tax situation makes the credit meaningful, I mean. (Yes that's an "if")

 

[eastern refugee]

to be clear - if you do Options, we've been told by a Ford Credit insider on here that you can have the payment adjusted after getting the credit. assuming your tax situation makes the credit meaningful, I mean. (Yes that's an "if")

Everyone that I have asked is honestly clueless. I called my guy at Galpin because my car is due in 13 days. They said they have zero ideas about financing today. There are zero incentives today however that can change in a minute. Until the car actually hits the dealer there is nothing known about financing. They think mine will be the first of their over 200 on order.

In short I would not believe anyone until they have gotten to finance. I will post when I go through it. They did say that there is a real lease but cannot apply tax credit. Now that is today.

 

[JDRGolfer1]

Everyone that I have asked is honestly clueless. I called my guy at Galpin because my car is due in 13 days. They said they have zero ideas about financing today. There are zero incentives today however that can change in a minute. Until the car actually hits the dealer there is nothing known about financing. They think mine will be the first of their over 200 on order.

In short I would not believe anyone until they have gotten to finance. I will post when I go through it. They did say that there is a real lease but cannot apply tax credit. Now that is today.

Sounds like either your salesman is very uninformed or ignorant. Ford options has been on the ford site for several months now and there is a $2500 incentive when doing ford options, at least in Orange County that is.

 

[timbop]

In short I would not believe anyone until they have gotten to finance. I will post when I go through it. They did say that there is a real lease but cannot apply tax credit. Now that is today.

Yes, the traditional Red Carpet Lease was added almost as an afterthought late last year due to lots of negative feedback about the options plan. IMO that's why they are offering incentives on the options that they aren't putting on traditional financing.

The website obviously hasn't been updated with RCL yet, but the dealers should have some information on the options program by now.

 

[jlauro]

I disagree. I am buying an FE with a value of $60,000. I am buying it because of the car and the Ford incentives. VERY few people look at the tax credit as it is
1. not guaranteed
2. does not impact the monthly car payment.

Very people ignore the tax credit. Personally, I don't consider it a $7500 value when comparing to say a Model Y, but probably closer to $5000 as it will be a year before I see it. Monthly payment doesn't matter as much as I can increase or lower it depending on down payment and length of loan. If I put $60,000 down then I know I can afford the monthly payment. (ok, I can't easily put that down, but you get the point...)

 

[jlauro]

Yes, the traditional Red Carpet Lease was added almost as an afterthought late last year due to lots of negative feedback about the options plan. IMO that's why they are offering incentives on the options that they aren't putting on traditional financing.

The website obviously hasn't been updated with RCL yet, but the dealers should have some information on the options program by now.

I assume they change at least once a month, and the dealer probably doesn't want to get quoted with something that might not be valid anymore by the time his vehicle is ready for pickup. Does seem like he should be able to give some preliminary worse case numbers.

 

[ChasingCoral]

Sounds like either your salesman is very uninformed or ignorant.

Well from what we've seen from across the country that places them among the majority of Mach E dealers.

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