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"Ford Options" Mach-E Lease vs standard lease - similarities and differences

hybrid2bev

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Leaving tax credit aside, what is the practical difference between this and a standard lease?
Speaking for myself and not Ford, explaining this to you as I would to any friend:

There are subtle differences. The big picture is that Ford Options and a traditional lease are more similar than different.

Ford Options choices at the end of the contract term are:
1. Return – Transfer ownership of the vehicle to Ford Credit (like a lease turn-in, with mileage and excessive use charges)

2. Renew – Trade-in/Sell the vehicle, any accumulated equity may be available for use as down payment

3. Retain – Payoff or refinance the balloon note amount through Ford Credit (like buying out your lease by paying the agreed lease purchase price/residual value)

Differences:
Ford Options is a retail contract, so the title is in the customer name. For standard leases the title is in the lease company name. Because Ford Options are retail contracts instead of leases there may be differences in how the transactions are taxed depending on where you live (in the monthly payments vs. all upfront at time of sale) so consult your dealer.

Ford Options is available in most states, you'll need to discuss financing options with your dealer.
 

FredT

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s7davis

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Just wanted to say that was a great breakdown on how the lease options (Ford Opions plan works) I wanted to say thanks for this info.
 

RidetheLightning

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Good stuff. We’ve leased 4 Ford vehicles and I’m debating leasing the Mach-E. The main reason being just to get my feet wet in the electric vehicle world. Still have a Fusion hybrid under a lease for another 2 years. Never had a complaint and I like upgrading to a newer vehicle which perhaps the Mach-E will improve or slide me in to a GT 🤔
 

LYTMCQ

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Ford Options is a retail contract, so the title is in the customer name.
If so then customer can claim the Federal and state rebates which is good. Maybe that why they do that on the EV's.

I might do that as it guarantees a buyback price at the end. Otherwise I'd risk buying to get the tax rebate. It also provides a guarantee in case there are issues. Provides people new to EV's some level of comfort in case EV's just don't work for them.
 

jhalkias

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The Ford Options page is up, it explains how the program works.

https://www.ford.com/finance/finance-options/ford-options
Screen Shot 2020-06-29 at 9.15.52 AM.png

This is a screenshot from their little video . . . what do they mean by that last sentence? Will Ford wait for my tax refund in 2021 to apply that to my account and base my payment on that? Or is that just a way of saying you can pay the $7500 at the time of purchase and wait for your refund? Curious.
 

jhalkias

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OP
hybrid2bev

hybrid2bev

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Screen Shot 2020-06-29 at 9.15.52 AM.png

This is a screenshot from their little video . . . what do they mean by that last sentence? Will Ford wait for my tax refund in 2021 to apply that to my account and base my payment on that? Or is that just a way of saying you can pay the $7500 at the time of purchase and wait for your refund? Curious.
We're working on this. After you file your taxes and get your federal tax credit money, we're working on allowing the customer to apply that money towards the account to re-calculate the monthly payments. This was not an option on the prior version of the Ford Options program to apply money after the contract was already underway.
 

jhalkias

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We're working on this. After you file your taxes and get your federal tax credit money, we're working on allowing the customer to apply that money towards the account to re-calculate the monthly payments. This was not an option on the prior version of the Ford Options program to apply money after the contract was already underway.
That would be a nice option for the downpayment, but it would be interesting to see how Ford Credit is going to figure out that the customer actually HAS the ability to get back the full $7500 based on tax liability. Kind of like a "free loan" of that money until you get it? That would make me a lot less anxious about getting delivery by year end.
 
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hybrid2bev

hybrid2bev

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This news item posted by the admin:
https://www.macheforum.com/first-20...counts-apr-deals-and-promotional-lease-rates/

is in contradiction to the site that tells you about options for the MME. On that page, it specifically seems to indicate that normal leases are NOT available on the MME. Count me as confused.

https://www.ford.com/finance/finance-options/ford-options
That article is incorrect. Where ever you see the word 'lease' just replace it with 'Ford Options'. But I checked the current C&I grid and there are no active programs for the Mach-E. So I would not count on the rates and rebates described to be the same 5-6 months from now when deliveries start.

That would be a nice option for the downpayment, but it would be interesting to see how Ford Credit is going to figure out that the customer actually HAS the ability to get back the full $7500 based on tax liability. Kind of like a "free loan" of that money until you get it? That would make me a lot less anxious about getting delivery by year end.
The credit is not applied at the time the contract is signed. There is nothing for the dealer to do. This process is describing allowing you to apply the tax credit money months or a year later after delivery.
 

jhalkias

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That article is incorrect. Where ever you see the word 'lease' just replace it with 'Ford Options'. But I checked the current C&I grid and there are no active programs for the Mach-E. So I would not count on the rates and rebates described to be the same 5-6 months from now when deliveries start.


The credit is not applied at the time the contract is signed. There is nothing for the dealer to do. This process is describing allowing you to apply the tax credit money months or a year later after delivery.
Yeah, that looked like that same information from that earlier article. When I try to do a financing option on my car, it shows .9% on Options, and 1.9% on financing. It also shows a $2,500 Ford Credit rebate, which I think would be great, but I think that is only a current program.

The details of the second part will be interesting to see. Specifically as to how that relates to the monthly payment based on the timing of the refund. It's a good thing to see Ford doing everything they can to make this work for customers in flexible ways.
 

GoGoGadgetMachE

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It also shows a $2,500 Ford Credit rebate
is there a "more details" link on that or something? I see you're in Ohio (eg not one of the "$2500 markets"), and I'm wondering if I'd qualify for that. I have a short-term freeze on my credit that I think is preventing the order site from showing the info to me.
 

jhalkias

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is there a "more details" link on that or something? I see you're in Ohio (eg not one of the "$2500 markets"), and I'm wondering if I'd qualify for that. I have a short-term freeze on my credit that I think is preventing the order site from showing the info to me.
It's really kind of dumb, but you have to go back to the Ford site, build a car as if you are going to order it, and then click on the calculator for financing options. There is no link I can find on my actual order.
 

GoGoGadgetMachE

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It's really kind of dumb, but you have to go back to the Ford site, build a car as if you are going to order it, and then click on the calculator for financing options. There is no link I can find on my actual order.
oy. Thanks for the answer, anyway :)
 



 









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