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Updated January 23, 2021 with Q1 lease residuals:

https://m.carsdirect.com/deals-articles/ford-mustang-mach-e-residual-values-are-better-than-mustang

Select Standard Range (RWD): 56%
Select Standard Range (AWD): 56%
California Route 1 Extended Range (RWD): 58%
Premium Standard Range (RWD): 57%
Premium Extended Range (RWD): 58%
Premium Standard Range (AWD): 57%
Premium Extended Range (AWD): 58%
First Edition Extended Range (AWD): 58%
GT Extended Range (AWD): 56%




Original post November 18

Ford Mustang Mach-E Lease Terms Revealed
Giovanni November 18, 2020
Ford Mustang Mach-E Mach-E Lease Residuals Released For Q1 Are Impressive! Mustang-Mach-E-with-Mustan

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 Mustang Mach-E Mach-E Lease Residuals Released For Q1 Are Impressive! Ford-Options-Mileage


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 Mach-E Lease Residuals Released For Q1 Are Impressive! Ford-Mustang-Mach-E-Financing-Options-scaled


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/
 
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jdmrc93

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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?
 

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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

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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

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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

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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.
 

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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...
 

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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.
 

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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.
 

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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?
 

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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.
 
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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!
 
 




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