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efisher

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A $300 monthly payment difference between a MME and a Mercedes S-Class would not be absurd, regardless of how it's financed. A $300 monthly payment difference between two equivalent vehicles in the same class IS absurd.
There is a difference between purchasing and leasing. The correct comparison would be to a loan to the purchase the Model Y.
 

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There is a difference between purchasing and leasing. The correct comparison would be to a loan to the purchase the Model Y.
In terms of who owns the car, sure. But cash flow is cash flow. Who gets the title to the vehicle is utterly irrelevant to me.
 

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In terms of who owns the car, sure. But cash flow is cash flow. Who gets the title to the vehicle is utterly irrelevant to me.
The Model Y lease is only closed end, so you’d have to assume you’d be walking away from the Mach E at the end of the term, which, based on Ford’s low residual, results in a really high monthly payment. Part of the reason to go with Ford Options is that you have an option at the end of the term, and clearly there is an associated cost to that flexibility. With Tesla you have no options.
 

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The Model Y lease is only closed end, so you’d have to assume you’d be walking away from the Mach E at the end of the term, which, based on Ford’s low residual, results in a really high monthly payment. Part of the reason to go with Ford Options is that you have an option at the end of the term, and clearly there is an associated cost to that flexibility. With Tesla you have no options.
Seems like I get the most options by buying. I can choose to buy with cash, private loan (and many of these to choose from), mixture of cash/credit, or Ford Options. And I can sell to whomever I choose from whoever wants to buy it, regardless of vehicle condition, mileage, or age.
 

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The Model Y lease is only closed end, so you’d have to assume you’d be walking away from the Mach E at the end of the term, which, based on Ford’s low residual, results in a really high monthly payment. Part of the reason to go with Ford Options is that you have an option at the end of the term, and clearly there is an associated cost to that flexibility. With Tesla you have no options.
That's exactly the point of my comment: I don't care about contract end options, particularly when the tech is improving each year. Tesla is about to announce an all-new battery that will either extend range dramatically, reduce weight and cost for the same range as in current vehicles, or a combination of both. Why on earth would I sign a contract that prices in my option to buy it?

Moreover, I don't think "options" is really Ford's motivation here. My dad, a 30-year Ford veteran and retiree, said it best, "Ford doesn't have any faith that this vehicle will hold its value and doesn't want to get stuck subsidizing the residual." Ford's existing RCL lease programs on other vehicles include the option to buy the vehicle at lease end, as well. Most dealers who aren't hustlers won't let their customers do that. Ford is moving the financial risk on its customers.
 
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janitorjim

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In terms of who owns the car, sure. But cash flow is cash flow. Who gets the title to the vehicle is utterly irrelevant to me.
actually it matters in terms of who gets the 7500 tax credit
 

GoGoGadgetMachE

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There's two things going on here that are different things but are both valid.

First, Ford Options simply cannot be compared to a traditional lease. You get the $7500 with Ford Options (and we've already been told you can apply it after you get it to readjust the monthly payment - a delayed down payment, basically); the lease company gets it with a lease. With Ford Options, you're the owner with a lien; with a lease, the leasing company is the owner - this may have relevance in the event of a major accident where the car is totaled. On a lease, the down payment was just dropping the payment for what's effectively a long-term rental. On Ford Options, you're putting money towards the equity in the vehicle. And it matters that the end options are different (whether a particular person cares about that difference is irrelevant to the existence of the difference). They are not apples-to-apples; it's legitimate to say they aren't.

That said... Second, leases are often a lot lower payment, but that's somewhat due to the different between "3 years and you still owe a bunch or get nothing for it" versus "5 years and it's yours." But in this case, the Ford Options price may indeed be very high compared to what you would expect for a "lease." If you're used to low lease rates, then this one may be high.

One thing I haven't heard here (maybe it's somewhere and I missed it) when people are like "LOOK AT TESLA!" is when Tesla first started offering leases, their residuals were INSANELY low - the lease prices were $800+ a month for a Model S, and you didn't get to buy it at the end, so it was purely a "long term rental" play. I know, because as soon as they announced it, I looked, thinking "maybe I could afford one of these" - but no, because the payments were STUPIDLY high. If they were remotely reasonable, I'd probably be driving one now. I know that doesn't make the Mach-E lower or anything, but just wanted to point that out.
 

GoGoGadgetMachE

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It should be pointed out also that third-party lease companies do exist. Your dealer probably has relationships with them - once of the (few) benefits of a dealer system. You may be able to get a traditional "walk away" lease with a "thrown away" down payment and giving up the tax credit (the "long term rental with no tax credit" scenario) from a third-party (or maybe even your bank.)
 

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actually it matters in terms of who gets the 7500 tax credit
Not in 2021. The $7,500 wouldn't be in my pocket until 2022 unless I file estimated taxes next year. Even then, the MY is still less expensive.
 

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Not in 2021. The $7,500 wouldn't be in my pocket until 2022 unless I file estimated taxes next year. Even then, the MY is still less expensive.
that isn't what you wrote. You wrote who has the title. Since you said you didn't care if someone else has the title then you aren't going to see the money no matter what year it is.
 

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It should be pointed out also that third-party lease companies do exist. Your dealer probably has relationships with them - once of the (few) benefits of a dealer system. You may be able to get a traditional "walk away" lease with a "thrown away" down payment and giving up the tax credit (the "long term rental with no tax credit" scenario) from a third-party (or maybe even your bank.)
This is an interesting observation and is worth looking into. I am concern about paying $900/mo for the Options. If I am able to lower that (i.e., refinancing) in a few months after the tax credit then I would be fine with that.
 

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that isn't what you wrote. You wrote who has the title. Since you said you didn't care if someone else has the title then you aren't going to see the money no matter what year it is.
Exactly. Which is partly why getting $7,500 a year later doesn't matter to me. And by the way, when I had my Ford Fusion Energi, Ford simply rolled that money into the downpayment (I leased the car through Ford Credit). So unless the rules have changed in the past 6 years, which is possible, it simply underscores my belief that Ford isn't providing a lease program on the MME because it doesn't want the financial risk from that vehicle on its books.
 

timbop

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It all depends upon your intentions. If you intend to keep the car long term no matter what, then the options is a bad move. If instead you view the 2021 Mach-E as an interim solution, then it MAY make sense for you to consider hedging your bets. If you buy the car then of course you decide when to get rid of it, but at the then market value of the car.

I am in the latter camp: for me I want a BEV now because from 2015 to march of 2020 I was burning gas to the tune of 700 gallons a year. I don't want to do that any longer, so I am going to buy a BEV now along with getting solar panels to power it.

In MY opinion BEV's are still in the front part of the curve and will be significantly better 4 years from now than today. I would rather "trade up" as we go through that curve than hold onto what will be obsolete and may not suit my future needs. For that reason I am spending the minimum now (Select SR RWD), with the full expectation that I will replace it with a BEV that has fewer compromises with respect to replacing an ICE (range and DCFC charge speeds). Since my wife only drives around town 90% of the time, I am talking her into a plug-in hybrid as another short term solution. Eventually we'll be fully BEV, but I don't think today's cars are there yet.

Here's the math for MY situation and intention, with the same down payment based on ford's online calculator. Both options and finance have the same $2500 incentive right now, but who knows what will be available when I get my car. So, of course I will compare the prices by then. All options are eligible for the $7500 fed and $5000 NJ rebates, which is used for the down payment and registration:

4 yr lease ($16300 balloon): $471 x 47=$22137
4 yr loan: $765 x 48 = $36720, $36720 - 16300 = $20420

So yes, for the guarantee of minimum resale value in 2025 I would be spending an extra $1700. However, the options payment is far more comfortable for the CFO (the Mrs) so if I did the purchase I would do a 5 or 6 year loan, which decreases the penalty of the options significantly.

Maybe I am being dumb, but I am a pessimist.

Oh, and $22137/48000 miles is $.46/mile
 
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FredT

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Not in 2021. The $7,500 wouldn't be in my pocket until 2022 unless I file estimated taxes next year. Even then, the MY is still less expensive.
Not much: Model Y with white paint and black seats, $51,200; Mach-e Premium And ER, $51,700 after fed rebate. And in California take another $2000 off. If you put the rebates back into down payment, the Ford options rate isn't that much more, either.

Just as an aside, if you want low lease rate try Polestar 2.
 

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Not much: Model Y with white paint and black seats, $51,200; Mach-e Premium And ER, $51,700 after fed rebate. And in California take another $2000 off. If you put the rebates back into down payment, the Ford options rate isn't that much more, either.

Just as an aside, if you want low lease rate try Polestar 2.
If Volvo/Polestar was owned by any other company than one underwritten by the Chinese government, I'd be all for it. China has enough of my personal data.
 



 









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