Advertisement



Administrator

Administrator
Staff member
Joined
Aug 29, 2019
Messages
344
Reaction score
988
Country flag
    Featured
  • Thread starter
  • #1
Ford Mustang Mach-E Lease Terms Revealed
Giovanni November 18, 2020
Mustang-Mach-E-with-Mustang.jpg

With the electric Mustang Mach-E already in production and scheduled to begin deliveries next month, upcoming owners are getting antsy with unanswered questions. To answer some of those questions, we’ve now been revealed the Mustang Mach-E’s leasing terms and residuals.

Contrary to popular belief, the Mustang Mach-E will in fact have a leasing option through Ford’s Red Carpet Lease program. Initially it was expected to have been excluded with the introduction of a new, similarly priced, program dubbed Ford Options. Ford Options, which is also priced based on Ford’s Red Carpet Lease numbers, in short allows consumers to take advantage of the $7,500 federal tax credit only available to retail sales while keeping the price and method of ownership in line with a standard lease.

However, in what seems as an attempt to minimize confusion, Ford will also offer their traditional lease program for the Ford Mustang Mach-E. Below you’ll find the residual values used to calculate specifically Ford Options. We are yet to see standard leasing residuals but have confirmed it will in fact be an option.

Mustang Mach-E Lease Residuals36 months48 months
Select RWD 3P39%32%
Select AWD 3P39%32%
California Route 1 RWD 4P41%34%
Premium RWD 3P40%33%
Premium RWD 4P41%34%
Premium AWD 3P40%33%
Premium AWD 4P41%34%
First Edition AWD 4P41%34%
GT AWD 4P39%32%
Mustang Mach-E Leasing or Ford Option mileage adjustments both adjust the prices in the following ways:

Ford-Options-Mileage.jpg


If you’d like to fully price out your own lease using a lease calculator, the money factor (APR to simplify) for both is also based on Ford’s Red Carpet Lease program and can be found below;

Tier3648
05.064.95
15.485.36
26.756.35
38.428.55
411.1010.94
511.1010.94
From a consumer perspective, I can’t see why anyone would opt for a traditional lease over Ford’s new Ford Options program. In hindsight, monthly payments are equal but only one allows you to take advantage of the $7,500 tax credit. The residuals themselves are not anywhere near the best but I can’t say I was expecting otherwise. With EV technology consistently improving, next gens models tend to destroy values of older EV’s. Leasing tends to be the perfect middle ground for those who want a car with low payments but don’t want to worry about being upside down on a car loan. Both leasing and Ford Options solve that by allowing you to simply turn the car in at the end of the term.

Ford-Mustang-Mach-E-Financing-Options-scaled.jpg


The Mustang Mach-E is fully integrated with an online experience. Those with reservations will soon have digital access to finalize their purchase decision prior to entering the dealership. Contracts for Ford Options can be generated beginning November 23rd.

The above lease residuals are specifically for the Ford Options program. The standard lease residuals could potentially be better given the exclusion of a $7,500 tax savings. Ford’s Red Carpet Lease will only be offered in 36 or 39 month terms and will offer complimentary GAP insurance. Just keep in mind, with a lease, the tax credit is off the table entirely.

https://evbite.com/ford-mustang-mach-e-lease-terms-revealed/
 

jdmrc93

Well-Known Member
First Name
Joe
Joined
Jun 25, 2020
Messages
142
Reaction score
471
Location
Allen Park, MI, USA
First Name
Joe
Vehicles
2021 Mustang Mach-E 4x First Edition in Grabber Blue (Build Date: 1/4/2021); 2018 Chevrolet Silverado 1500 High Country
Occupation
IT Network Engineer
Country flag
Is the tax credit really "off the table", or, since Ford is technically receiving that money, will they pass that on to the leasee as a deduction off the sticker price of the vehicle? Will the residual be calculated based on the adjusted sticker price?
 

hybrid2bev

Well-Known Member
Joined
Dec 4, 2019
Messages
1,175
Reaction score
2,412
Location
USA
Vehicles
2017 C-Max Hybrid, 2020 Explorer ST
Country flag
The Options residuals look right. The lease rates listed in the table are not correct, but are in the ballpark for 36 months Tier 0/1. (Subsidized lease rates for Tier 0 and Tier 1 are the same so I can tell these are not quite right). The remaining Tiers are way off.

RCL for the Mach-E is only offered on 36 and 39 month terms as noted.
 

hybrid2bev

Well-Known Member
Joined
Dec 4, 2019
Messages
1,175
Reaction score
2,412
Location
USA
Vehicles
2017 C-Max Hybrid, 2020 Explorer ST
Country flag
Is the tax credit really "off the table", or, since Ford is technically receiving that money, will they pass that on to the leasee as a deduction off the sticker price of the vehicle? Will the residual be calculated based on the adjusted sticker price?
The tax credits are going to support (raise) the RCL residual values vs. Ford Options. No money applied towards the cash selling price/MSRP.
 

jdmrc93

Well-Known Member
First Name
Joe
Joined
Jun 25, 2020
Messages
142
Reaction score
471
Location
Allen Park, MI, USA
First Name
Joe
Vehicles
2021 Mustang Mach-E 4x First Edition in Grabber Blue (Build Date: 1/4/2021); 2018 Chevrolet Silverado 1500 High Country
Occupation
IT Network Engineer
Country flag
The tax credits are going to support (raise) the RCL residual values vs. Ford Options. No money applied towards the cash selling price/MSRP.
Do you think it would raise the residual value enough to equate to, or come close to the value of the actual credit?
 

hybrid2bev

Well-Known Member
Joined
Dec 4, 2019
Messages
1,175
Reaction score
2,412
Location
USA
Vehicles
2017 C-Max Hybrid, 2020 Explorer ST
Country flag
Do you think it would raise the residual value enough to equate to, or come close to the value of the actual credit?
Yes, it's in that ballpark when I compare my Premium AWD Ext Range at 36 months. But it may be less so for the lower trims, because math.
 

jdmrc93

Well-Known Member
First Name
Joe
Joined
Jun 25, 2020
Messages
142
Reaction score
471
Location
Allen Park, MI, USA
First Name
Joe
Vehicles
2021 Mustang Mach-E 4x First Edition in Grabber Blue (Build Date: 1/4/2021); 2018 Chevrolet Silverado 1500 High Country
Occupation
IT Network Engineer
Country flag
Yes, it's in that ballpark when I compare my Premium AWD Ext Range at 36 months. But it may be less so for the lower trims, because math.
Hmmmm, I guess that's good news? When everything is final, we will just have to do some number crunching. I personally like the idea of not having to handle the tax credit myself, and a lower payment, which will probably be the case. If I get the vehicle in late Jan, I won't see that money until sometime in 2022. And, even then, I'll probably just put it right towards the car loan... We will see I guess. I'm just wondering how the EV landscape will change over 39 months. Probably substantially...
 

Schmedlack

Member
First Name
Joe
Joined
Oct 22, 2020
Messages
15
Reaction score
32
Location
Dundalk, MD
First Name
Joe
Vehicles
2014 Ford Escape S 1925 Ford Tudor (2-door)
Occupation
Trader
Country flag
OK Guys...... I need a numerical example.....

Is the Residual factor applied to the MSRP or the MSRP minus the $7500 tax credit?

Help me: A $50,200 CA Rt 1would have a $20582 residual value based on MSRP. OR if the residual factor (.41) was applied to the MSRP minus the $7500 tax credit the residual value would be $17507.

If one of these is right, then which one.

Anyway - I like the Ford Options program. Take it from me, the best things in life - are for rent!
 
Last edited:

JellyBelly

Well-Known Member
First Name
Kris
Joined
Jun 27, 2020
Messages
731
Reaction score
619
Location
San Diego
First Name
Kris
Vehicles
Mazda CX5, Honda CRV, Mach E ordered
Country flag
As of this morning, the incentives for my area are 1.9% financing with no cash rebates; 2.25% for Ford options with 2500 rebate. These are valid until 1/4/21. Hope they stay the same or get better by the time my car gets delivered. Then number crunching to compare these options.
 

OdellBretthamJr

Well-Known Member
First Name
Brett
Joined
Mar 9, 2020
Messages
83
Reaction score
142
Location
Michigan
First Name
Brett
Vehicles
Ford Escape, Mach E
Country flag
My dealer told me the $7,500 would be applied to my lease.
 

hybrid2bev

Well-Known Member
Joined
Dec 4, 2019
Messages
1,175
Reaction score
2,412
Location
USA
Vehicles
2017 C-Max Hybrid, 2020 Explorer ST
Country flag
OK Guys...... I need a numerical example.....

Is the Residual factor applied to the MSRP or the MSRP minus the $7500 tax credit?

Help me: A $50,200 CA Rt 1would have a $20582 residual value based on MSRP. OR if the residual factor (.41) was applied to the MSRP minus the $7500 tax credit the residual value would be $17507.

If one of these is right, then which one.

Anyway - I like the Ford Options program. Take it from me, the best things in life - are for rent!
Residual factor applied to the MSRP.
 

SnBGC

Well-Known Member
First Name
Greg
Joined
Apr 20, 2020
Messages
984
Reaction score
1,518
Location
Phoenix
First Name
Greg
Vehicles
Ford Focus Electric, Ford C-Max Energi, 1999 F250 PSD, 2000 F250 PSD, 1968 GTO, 1955 Bel Air
Occupation
Managet
Country flag
So if I understand correctly, the Red Carpet Lease might be worth exploring for individuals who may not be able to maximize the federal tax credit or don't want to wait to file their 2021 returns?
 

timbop

Well-Known Member
First Name
Tim
Joined
Jan 3, 2020
Messages
2,163
Reaction score
3,507
Location
New Jersey
First Name
Tim
Vehicles
2015 Mustang Convertible (to be replaced by MME RT 1), 2016 Dodge Durango
Occupation
Software Engineer
Country flag
Guys, the real question is will the Mach e could sustain value as well as a Tesla or not?
There is no way that anyone can say that. Tesla has been propping up resale value with their lease residuals but I don't think that will continue in light of real competition.
 
  • Like
Reactions: DBC

AndyS_OSU

Well-Known Member
Joined
Nov 26, 2019
Messages
141
Reaction score
89
Location
Texas
Vehicles
2017 Chevrolet BoltEV
Country flag
Both my BMW i3 and BoltEV had lease residuals at 60 or above. Doesn’t seem like the MachE is anywhere in the ballpark.

And am I reading it correctly that tier 0/1 would be equivalent to 5% APR? If so...Yeesh!
 



 









Advertisement


Top