Ford Financing Deals this Fall?

[eastern refugee]

I wonder if Ford will somehow find a way to get the $7500 to be used as a down payment and then offer something crazy in terms of low interest??? In California or at least kern county we get an extra $3800 AFTER we purchase and register the Mach E. I would be surprised if other states did not do something similar. You have to research a lot but the cash rebates are there.

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[dbsb3233]

I wonder if Ford will somehow find a way to get the $7500 to be used as a down payment and then offer something crazy in terms of low interest??? In California or at least kern county we get an extra $3800 AFTER we purchase and register the Mach E. I would be surprised if other states did not do something similar. You have to research a lot but the cash rebates are there.

It couldn't be directly tied to the $7500 federal tax credit. That doesn't get realized until a year later, it's not an actual cash payment (it just lowers your federal income tax liability), and some people won't even qualify for the full credit (if they don't have that much federal income tax liability).

But of course they could do whatever they want with the loan itself, and pretend that it coincides with your tax savings by delaying $7500 of loan payments until year 2. Or something like that.

 

[eastern refugee]

It couldn't be directly tied to the $7500 federal tax credit. That doesn't get realized until a year later, it's not an actual cash payment (it just lowers your federal income tax liability), and some people won't even qualify for the full credit (if they don't have that much federal income tax liability).

But of course they could do whatever they want with the loan itself, and pretend that it coincides with your tax savings by delaying $7500 of loan payments until year 2. Or something like that.

I know for a fact at least in California if the car is leased then the $7500 goes to Ford. Ford has had a program in the past where you lease/buy option. It was called a flex-lease program. You paid the lease price and then after 3 years the price went automatically up by $100.00 each month afterwards for the full term. The term was something like 74 months or 76 months. Unlike the traditional lease the car could not simply be dropped off after 3 years. It was a longer plan but it gave you cheaper prices up front and then paid more later.

 

[eastern refugee]

I just found this on another forum. 6 months no payment


https://media.ford.com/content/ford...built-to-lend-a-hand-payment-relief-plan.html

 

[dbsb3233]

I know for a fact at least in California if the car is leased then the $7500 goes to Ford. Ford has had a program in the past where you lease/buy option. It was called a flex-lease program. You paid the lease price and then after 3 years the price went automatically up by $100.00 each month afterwards for the full term. The term was something like 74 months or 76 months. Unlike the traditional lease the car could not simply be dropped off after 3 years. It was a longer plan but it gave you cheaper prices up front and then paid more later.

Yes, a lease (from Ford) is different than a purchase. Ford owns the car then. It's the owner that gets the tax credit. They may choose to pass an equal amount on as savings to the leasee, but it's technically independent of that from a tax standpoint. That's just how they choose to market it.

 

[FredT]

Yes, a lease (from Ford) is different than a purchase. Ford owns the car then. It's the owner that gets the tax credit. They may choose to pass an equal amount on as savings to the leasee, but it's technically independent of that from a tax standpoint. That's just how they choose to market it.

That's how Audi did it on my last lease, reducing the capitalized cost by the amount of the tax credit.

 

[hybrid2bev]

eastern refugee said:
I know for a fact at least in California if the car is leased then the $7500 goes to Ford. Ford has had a program in the past where you lease/buy option. It was called a flex-lease program. You paid the lease price and then after 3 years the price went automatically up by $100.00 each month afterwards for the full term. The term was something like 74 months or 76 months. Unlike the traditional lease the car could not simply be dropped off after 3 years. It was a longer plan but it gave you cheaper prices up front and then paid more later.

Yes, a lease (from Ford) is different than a purchase. Ford owns the car then. It's the owner that gets the tax credit. They may choose to pass an equal amount on as savings to the leasee, but it's technically independent of that from a tax standpoint. That's just how they choose to market it.

The FlexBuy program is still a thing. It's a 66 month retail purchase with lower payments upfront and higher payments towards the end, like you described (no turn in option). Not sure if FlexBuy will be offered on the Mach-E though because it's not available in all states.

As of now there are no plans to offer a traditional lease for the Mach-E, at least until after the tax credits expire. Using Ford Options will allow the flexibility to be like a lease (turn in option) but you get to be the registered owner and claim the tax credits later when you file your taxes.

 

[ChasingCoral]

It's interesting that Morgan Stanley actually expects high auto sales by Fall:

Despite these setbacks, Jonas said there is much to look forward to for automakers that survive the next three months, citing the “unprecedented stimulus” of economic aid that will include direct payments to most Americans.​

​

“You’re going to sell a boatload of cars later this year, and your stocks won’t just recover, they’ll multiply,” Jonas said. ​

Morgan Stanley: Ford will survive coronavirus halt, but stock may not have bottomed yet
https://www.cnbc.com/2020/03/24/mor...navirus-halt-stock-may-not-have-bottomed.html

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