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

[macchiaz-o]

Were would I look to see if Washington State gets a $1000 or a $2500 rebate with Ford Options?

If there's a Ford dealer in the same town with you, you could start to configure a Mach-E in the online build site. Then click the finance calculator and choose Options financing to see its details. It'll show you the current incentive for your zip code area.

If you qualify for plan pricing, you can go to the Mach-E page at fordpartner.com and put in your zip code to see offers.

It's your residence zip code that really matters -- not the dealer location.

If you don't have access to plan pricing, let us know your zip code and we can check it for you.

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[Woeo]

Were would I look to see if Washington State gets a $1000 or a $2500 rebate with Ford Options?

One way.....if you build an MME using your zip code on Ford.com, then choose to view the financial calculator details by clicking on the calculator icon, if you scroll through the details you will see the incentive for your area.

 

[dtbaker61]

Ford Options - for the same tier - would be 2.25%, and you would have a balloon payment at the end of the term, at which point in time you can finance the remainder/pay it in full, or turn in the car. The $2500 incentive for Options is considered like cash and applied to the loan as downpayment.

this is sounding like the winner to me..... same rate as I can get from my CU, but with 1000/2500 incentive. after 48 mo, I could refi the balloon with my CU, or just pay it off...

 

[dtbaker61]

If there's a Ford dealer in the same town with you, you could start to configure a Mach-E in the online build site. Then click the finance calculator and choose Options financing to see its details. It'll show you the current incentive for your zip code area.

If you qualify for plan pricing, you can go to the Mach-E page at fordpartner.com and put in your zip code to see offers.

It's your residence zip code that really matters -- not the dealer location.

If you don't have access to plan pricing, let us know your zip code and we can check it for you.

my residence zip code is 87508
I'll try to get it thru the build site using the zip code for my local Dealer which is 87507

1000, or 2500 ? sounds great .... how can they do that? It makes the effective interest rate pretty close to 0 doesn't it?

 

[macchiaz-o]

my residence zip code is 87508
I'll try to get it thru the build site using the zip code for my local Dealer which is 87507

1000, or 2500 ? sounds great .... how can they do that? It makes the effective interest rate pretty close to 0 doesn't it?

By the same token, why is the balloon "residual" amount set to the value that they've chosen?

There are lots of knobs and levers and many behind the scenes decisions that banks are making when designing these products. We may never know exactly at which points they extract the profits, but i imagine that they can pretty well predict how things will turn out.

 

[Jako607]

So here's my question, hopefully y'all can tell me if I'm understanding this correctly:

I always lease cars for 3 years, especially high value ones or ones with questionable resale value (pretty much most EVs). I like shiny new toys, and I know in 3 years I'll want the next EV out there with newer tech etc. Given that a Ford RCL seems to be the worst option for the MME, especially since they're not applying the $7500 tax credit to cap cost reduction like every other EV I've leased in the last 7 years, it seems my only option is the Ford Options plan for 36 months.

Given that they're predetermining the residual value at a set amount after those 36 months, when I go to return the vehicle (and I'll definitely be returning it because there will be so many more EV options in 3 years, perhaps even from Ford) my choices will be:

1) Return the vehicle and walk away to get some other EV. Pay nothing but the disposition fee assuming no excess wear and tear or milage
2) Return the vehicle. If the balloon amt owed happens to be less than the value of the vehicle, I could apply that difference towards a new Ford vehicle... perhaps an intriguing idea on the off chance there will be some surplus value (although I'm skeptical there will be) and Ford has good EV options in 3 years.

So if all that above is correct, is there any reason why I would put more vs less money down up front? With a lease I never put anything down. When I financed I put as much down as possible. I'm confused which is better with Ford Options. Since I'm likely returning the vehicle after 3 years, which down pmt strategy makes more sense?

Thank in advance to anyone who understands this better than me! =)

 

[shutterbug]

So here's my question, hopefully y'all can tell me if I'm understanding this correctly:

I always lease cars for 3 years, especially high value ones or ones with questionable resale value (pretty much most EVs). I like shiny new toys, and I know in 3 years I'll want the next EV out there with newer tech etc. Given that a Ford RCL seems to be the worst option for the MME, especially since they're not applying the $7500 tax credit to cap cost reduction like every other EV I've leased in the last 7 years, it seems my only option is the Ford Options plan for 36 months.

Given that they're predetermining the residual value at a set amount after those 36 months, when I go to return the vehicle (and I'll definitely be returning it because there will be so many more EV options in 3 years, perhaps even from Ford) my choices will be:

1) Return the vehicle and walk away to get some other EV. Pay nothing but the disposition fee assuming no excess wear and tear or milage
2) Return the vehicle. If the balloon amt owed happens to be less than the value of the vehicle, I could apply that difference towards a new Ford vehicle... perhaps an intriguing idea on the off chance there will be some surplus value (although I'm skeptical there will be) and Ford has good EV options in 3 years.

So if all that above is correct, is there any reason why I would put more vs less money down up front? With a lease I never put anything down. When I financed I put as much down as possible. I'm confused which is better with Ford Options. Since I'm likely returning the vehicle after 3 years, which down pmt strategy makes more sense?

Thank in advance to anyone who understands this better than me! =)

The residual with Options is the same regardless of how much you put down. It only affects the monthly payments (and total interest). Also with Options, if actual value exceeds the residual at the end, you can sell the car yourself and pocket the difference between selling price and residual, and also disposal fee.

 

[Jako607]

The residual with Options is the same regardless of how much you put down. It only affects the monthly payments (and total interest). Also with Options, if actual value exceeds the residual at the end, you can sell the car yourself and pocket the difference between selling price and residual, and also disposal fee.

Thanks! Seems like if I can get a better return than the Options interest rate of 2.25% then I would put less down, and if not then out more down to save on interest and make my pmt lower.

 

[eltonlin]

Down payments with Leases and Options in this case may not make sense. All depends on your financial situation as it pertains to monthly payments and whether you want to pay interest on the amount you would have normally put as a down payment.

Note that with options, downpayment is limited to 30%.

 

[OldEVGuy]

So here's my question, hopefully y'all can tell me if I'm understanding this correctly:

I always lease cars for 3 years, especially high value ones or ones with questionable resale value (pretty much most EVs). I like shiny new toys, and I know in 3 years I'll want the next EV out there with newer tech etc. Given that a Ford RCL seems to be the worst option for the MME, especially since they're not applying the $7500 tax credit to cap cost reduction like every other EV I've leased in the last 7 years, it seems my only option is the Ford Options plan for 36 months.

Given that they're predetermining the residual value at a set amount after those 36 months, when I go to return the vehicle (and I'll definitely be returning it because there will be so many more EV options in 3 years, perhaps even from Ford) my choices will be:

1) Return the vehicle and walk away to get some other EV. Pay nothing but the disposition fee assuming no excess wear and tear or milage
2) Return the vehicle. If the balloon amt owed happens to be less than the value of the vehicle, I could apply that difference towards a new Ford vehicle... perhaps an intriguing idea on the off chance there will be some surplus value (although I'm skeptical there will be) and Ford has good EV options in 3 years.

So if all that above is correct, is there any reason why I would put more vs less money down up front? With a lease I never put anything down. When I financed I put as much down as possible. I'm confused which is better with Ford Options. Since I'm likely returning the vehicle after 3 years, which down pmt strategy makes more sense?

Thank in advance to anyone who understands this better than me! =)

I’ve been having the same questions. Maybe @hybrid2bev has time to respond to your post. He’s the expert.

 

[trutolife27]

I’ve been having the same questions. Maybe @trutolife27 has time to respond to your post. He’s the expert.

if it has to do with buying the mache, or leasing that would go to hybird

 

[OldEVGuy]

if it has to do with buying the mache, or leasing that would go to hybird

Right. I fixed it.

 

[DBC]

Given that a Ford RCL seems to be the worst option for the MME, especially since they're not applying the $7500 tax credit to cap cost reduction like every other EV I've leased in the last 7 years, it seems my only option is the Ford Options plan for 36 months.
...
So if all that above is correct, is there any reason why I would put more vs less money down up front? With a lease I never put anything down. When I financed I put as much down as possible. I'm confused which is better with Ford Options. Since I'm likely returning the vehicle after 3 years, which down pmt strategy makes more sense?

If you don't intend to keep the MME, the RCL isn't a bad option because the credit supports the residual. It's a bad option because the interest rate is much higher. Moreover, if you can use the tax credit then Ford Options -- which lets you take the credit -- is better than cap reduction Why? Because if the credit is applied as cap reduction you get it over 36 months. With Options you get it after, at worst, a year. So Options is more like cash back.

FWIW I don't believe GM every applied the full tax credit as cap reduction. Initially they applied it to support the residual like Ford is doing. Later they applied part of it to cap reduction. Later still they applied part of it as lease cash.

The only advantage of putting more down with Options is that you save interest on the balance. You don't save interest on the residual. On balance (pun intended) this would not be much money. So put down an amount that works for you. More down lowers the monthly. Less keeps more money in your hands. You can see how this works using the calculator on the Ford site. No right or wrong answer.

 

[hybrid2bev]

So here's my question, hopefully y'all can tell me if I'm understanding this correctly:

I always lease cars for 3 years, especially high value ones or ones with questionable resale value (pretty much most EVs). I like shiny new toys, and I know in 3 years I'll want the next EV out there with newer tech etc. Given that a Ford RCL seems to be the worst option for the MME, especially since they're not applying the $7500 tax credit to cap cost reduction like every other EV I've leased in the last 7 years, it seems my only option is the Ford Options plan for 36 months.

Given that they're predetermining the residual value at a set amount after those 36 months, when I go to return the vehicle (and I'll definitely be returning it because there will be so many more EV options in 3 years, perhaps even from Ford) my choices will be:

1) Return the vehicle and walk away to get some other EV. Pay nothing but the disposition fee assuming no excess wear and tear or milage
2) Return the vehicle. If the balloon amt owed happens to be less than the value of the vehicle, I could apply that difference towards a new Ford vehicle... perhaps an intriguing idea on the off chance there will be some surplus value (although I'm skeptical there will be) and Ford has good EV options in 3 years.

So if all that above is correct, is there any reason why I would put more vs less money down up front? With a lease I never put anything down. When I financed I put as much down as possible. I'm confused which is better with Ford Options. Since I'm likely returning the vehicle after 3 years, which down pmt strategy makes more sense?

Thank in advance to anyone who understands this better than me! =)

Option #2 that you listed should say Trade in the vehicle instead of Return the vehicle.

If you are for sure going to return it after the term and want the lowest monthly payment then RCL may be the way to go. (RCL has a higher residual than Options)

If you went with Options and you apply the tax credits towards the account and recalculate your remaining monthly payment after you file your taxes. In this case the monthly payment could be lower with Options.

One other thing to consider in the comparison of RCL vs Options is that RCL includes GAP insurance at no cost. If you put nothing down on Options and the vehicle gets totaled you could be responsible for any shortage between what you owe and the insurance settlement.

 

[KAustin]

If you went with Options and you apply the tax credits towards the account and recalculate your remaining monthly payment after you file your taxes. In this case the monthly payment could be lower with Options.

I'm confused, but that's nothing new. How does one apply the tax credits towards the account?

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