Cheapest Path to a Mach E

[Unexplainedbacon]

Hi all, first post. I’m saving up for an anticipated order reservation towards the beginning of 2022. In the mean time the price differential between a cheaper EV and a Mach E (GT hopefully) is a hot topic of debate between the wife and I.

I’ve been lurking, learning about X plan pricing, the obvious federal and state tax incentives and looking at Ford Options which apparently has a rebate built in to it (I’m in CA)

Forgive me if there’s a thread or 50 already on this but it seems like options is the way to go if there’s an additional rebate but am I missing something here? Anyone have this all figured down to a checklist of steps to make sure you get the best deal?

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[zvez]

Hi all, first post. I’m saving up for an anticipated order reservation towards the beginning of 2022. In the mean time the price differential between a cheaper EV and a Mach E (GT hopefully) is a hot topic of debate between the wife and I.

I’ve been lurking, learning about X plan pricing, the obvious federal and state tax incentives and looking at Ford Options which apparently has a rebate built in to it (I’m in CA)

Forgive me if there’s a thread or 50 already on this but it seems like options is the way to go if there’s an additional rebate but am I missing something here? Anyone have this all figured down to a checklist of steps to make sure you get the best deal?

Not many ways to get a discount on an MME. Unless you find a demo that's being sold, but you'll need to make sure you're eligible for the fed tax credit, and if not, make sure the dealer/ford give you the 7500 incentive on a titled demo.

X-plan (not all dealers accept it, get it in writing). You'll save around 700-800 off msrp but also the "doc fee" is capped at less than $100. Easiest/fastest way to get xplan is join mustang club (35 or $50 subscription rate). You have to be a member of MCA for 90 days BEFORE you take delivery of your mme.

As to "options" that's something you'll want ot verify in terms of incentives (they don't really call it a rebate). The incentive varies by zip code. In my state it was only $1k so really not worth it. The good thing about options tho, no pre-payment penalty so you could get the options incentive and then refinance afterwards for a better rate (options rate is 2.25%). I went with standard ford financing at 0.9% for 48 months.

 

[timbop]

Yes it has been debated quite a bit, and if you do the options plan the extra $2500 does make it cheaper than traditional financing - but not by a lot. Signing up for Mustang Club of America to get the X plan discount will also knock some money off but you have to have been a member for 3 months before you qualify - so sign up NOW.

The biggest money saver is the federal rebate, but that has a sunset clause that starts reducing after Ford sells its 200,000th EV. They are probably at 150k by now, and will probably hit the 200k threshold in the middle of next year. With the chip shortage and other supply problems manufacturers are having it is entirely possible that prices are going to go up (either Ford raising MSRP or dealers adding markup), I don't think I would wait too long to order if I were you. You might find that your order takes until after the fed rebate starts to go down and/or prices go up.

 

[jeffMachE]

I think you are conflating 2 or 3 ideas here: The cheapest price you can get vs. the cheapest financing.

Ignoring ADM, the prices are set by Ford and the only way to get a cheaper price is to buy a used "demo" vehicle or with A/Z/X plan pricing.

The federal tax credit (and state tax credit if you live in a state with a credit) are available independent of the price, but to get the full credit, you have to have a tax liability that exceeds the credit. This is far and away the biggest discount, as it can total $10K ($7,500 fed, $2,500 state here in CO).

Once you bring in financing, then its a whole different discussion - if you lease, the tax credits go to the leasing company and they may or may not be passed on to you. And how each state handles sales tax on a lease can be quite different (are you paying sales tax on tax credit? On the down payment? On the lease amount?). If you go the "traditional" financing route, then things like Ford Options should be considered - as others have said you might be able to get a $2,500 incentive to go with Ford Options, but you pay a higher interest rate (however, you have no pre-payment penalty, so you could re-finance at a lower rate after getting the incentive). If you qualify for standard Ford financing and they offer the 0.9% rate, its hard to see getting much better than that. 0.9% financing is well below inflation/CPI.

 

[yngwenli]

With the F150 lightning coming as well in 2022, a lot of people expect Ford to hit the 200k limit in 2022. The limits may change if Congress can ever pass anything, but not something anyone can bank on.

https://www.irs.gov/businesses/irc-30d-plug-in-electric-drive-motor-vehicle-credit-quarterly-sales

https://www.irs.gov/businesses/irc-30d-new-qualified-plug-in-electric-drive-motor-vehicle-credit

I go by these links since they are from the irs.gov. An extra $7500 will definitely have near everyone re-evaluating their purchase, especially with more and more EVs coming with the credit (and Congress not passing anything yet).

In CA, there is also the $1500 fuel credit and the $2000 CVRP (you can only qualify once a lifetime now).

 

[RickMachE]

Several points:

- several thousand companies and organizations offer X-Plan to their members. Some college alumni programs. Checking on your company's website, or with HR, or your organization's website is a first step.

Here is one dealer's posted list that may or may not be accurate.

In addition, the Experimental Aircraft Association offers it, and they may not have a wait period, I haven't checked in a long time.

Keep in mind that buying in 2022 gets you tax credits, if they still are in effect, when you file your 2022 taxes in Spring of 2023.

There are discussions of extending and/or increasing the credit, but the increases require a) US plant manufacturing and b) US plant with a union shop. The Mach-E is built in Mexico, so neither of those would apply - they are proposed at $2,500 each.

 

[Unexplainedbacon]

Thank you all for the replies!

Is there any way of actually knowing where Ford stands on the 200k EV number? I would have guessed it was pretty low still since previous EV's weren't that popular and MACH deliveries this year weren't very high (sub 20k if I remember correctly?).

Obviously getting this car all hinges on the tax credit. My plan would be to claim exempt in the months leading up to the delivery so I can apply the money up front rather than waiting until tax time, but If the credit runs out then I'll be forced to go with a different EV, unless of course they pass this new bill.

 

[phil]

Is there any way of actually knowing where Ford stands on the 200k EV number? I would have guessed it was pretty low still since previous EV's weren't that popular and MACH deliveries this year weren't very high (sub 20k if I remember correctly?).

There are a few stats and projections on the interwebs. I checked not too long ago, and knowledgeable people seemed confident that Ford's $7.5k credit will not be reduced in 2022, but likely will begin phasing out early in 2023.

 

[CompilerBreak]

Thank you all for the replies!

Is there any way of actually knowing where Ford stands on the 200k EV number? I would have guessed it was pretty low still since previous EV's weren't that popular and MACH deliveries this year weren't very high (sub 20k if I remember correctly?).

Obviously getting this car all hinges on the tax credit. My plan would be to claim exempt in the months leading up to the delivery so I can apply the money up front rather than waiting until tax time, but If the credit runs out then I'll be forced to go with a different EV, unless of course they pass this new bill.

IRC 30D – Plug-In Electric Drive Motor Vehicle Credit Quarterly Sales | Internal Revenue Service (irs.gov) Ford is over 134k EV sales (plug in models count against it as well). With all their new options, most likely going to start to phase out in 2022, although with supply issues, who knows.

 

[RickMachE]

My plan would be to claim exempt in the months leading up to the delivery so I can apply the money up front rather than waiting until tax time, but If the credit runs out then I'll be forced to go with a different EV, unless of course they pass this new bill.

You can't claim exempt if you're not exempt. That means you had a a right to a refund of all federal tax withheld LAST YEAR because you had no tax liability, and you expect the same for this year.

I suspect that means you cannot claim exempt.
You used to be able to increase your withholding allowances. That changed with the 2020 W-4. You could use the deductions worksheet and try to fudge things, or you could simply get the tax credit when it's due you, in 2023.

 

[Unexplainedbacon]

You can't claim exempt if you're not exempt. That means you had a a right to a refund of all federal tax withheld LAST YEAR because you had no tax liability, and you expect the same for this year.

I suspect that means you cannot claim exempt.
You used to be able to increase your withholding allowances. That changed with the 2020 W-4. You could use the deductions worksheet and try to fudge things, or you could simply get the tax credit when it's due you, in 2023.

I was unaware of that change in 2020. It used to be a common thing to claim exempt for a period of time. I'll check with my tax guy on that. Ultimately the IRS will get whats coming to them, whether up front or come tax day, I'd rather use the money toward the cost of the vehicle then wait.

 

[Unexplainedbacon]

IRC 30D – Plug-In Electric Drive Motor Vehicle Credit Quarterly Sales | Internal Revenue Service (irs.gov) Ford is over 134k EV sales (plug in models count against it as well). With all their new options, most likely going to start to phase out in 2022, although with supply issues, who knows.

Well this is helpful and sobering. I had no idea they were even near that level of sales. I can't say I'm thrilled with rolling the dice on wether it'll be there once my reservation is fulfilled, refundable deposit or not. Thanks for this info.

 

[CompilerBreak]

Well this is helpful and sobering. I had no idea they were even near that level of sales. I can't say I'm thrilled with rolling the dice on wether it'll be there once my reservation is fulfilled, refundable deposit or not. Thanks for this info.

I mean, if you look back, I don't think they've ever sold more than 25k of qualifying vehicles in a year. Lightning will I think be the one to push it over, but that'll be in the second half of '22 or later. This says they're trying to get 80k Lightnings built annually by 2024, they were originally aiming for 40k/year. Ford F-150 Lightning electric trucks already produced, first deliveries still due for spring 2022 (greencarreports.com)

If you're lined up to get a Mach E in the next 6-9 months I'd guess you're probably safe to get the full credit, and even then I think any sales next year will qualify for the partial. They update things quarterly I believe so you should have some heads up as it gets close.

 

[zvez]

Well this is helpful and sobering. I had no idea they were even near that level of sales. I can't say I'm thrilled with rolling the dice on wether it'll be there once my reservation is fulfilled, refundable deposit or not. Thanks for this info.

keep in mind tho, even when they reach 200k the tax credit doesn't go away, it's just pro rated downward gradually.

 

[yngwenli]

Also note that the tax credit pro-rating is done at the end of the 2nd quarter after it hits the 200k.

If Ford was smart, they will hit it at some date like Oct 1st, then the credit won't drop down till April 1st, 2023. This was why Tesla was trying to rush to build cars non-stop because most folks still value $3750 a lot. (That's a nice ADM right there and we know how much people are against even 1 or 2k.).

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