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

[Mgayle83]

How many bad dealer stories are we going to keep hearing about? Isn’t it a shame that the same incompetent and thieving shenanigans are still going on in 2021? When will it ever end? Cue the following responses: “all dealers aren’t bad”. “Tesla is worse”. Blah Blah Blah. Please step in Ford Corporate and end this stain on your image as soon as possible or you will never woo away the next generations of young car buyers away from Tesla et al.
And oh by the way, I am preparing to pick up my Premium AWD EX by as if studying for the Bar, MCATs and an appearance on Jeopardy all in one. I am going to record the whole process and If they try any BS re finance or add ons, it will be broadcasted to the whole world. A bit dramatic, maybe, but how ridiculous. Thanks for listening.

I think Tesla is great. They do have issues but there are also a lot of things they are doing right.

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[Sneezy]

You're not likely to find a definitive answer because the circumstances are unusual. I'd do it without a second thought since Options is essentially a lease disguised as installment contract. Not likely to raise a lot of questions because if the Service treated it as a sale then you could use accelerated depreciation to write more off.

That said, BEVs are so cheap to operate that you may actually be better off simply claiming mileage.

I talked with my accountant and the Ford Options can be written off like a lease. We did however look at numbers and because insurance is less than half for personal than corporate I would be better off with a personal lease with the cost of my current vehicle or the Mach E. I can charge back my small amount of company miles which has dwindled over the years. Remote Technology has finally gained traction that I almost never go see a customer anymore. The pandemic just kicked that into high gear (it's about time).

That leaves my options wide open. I should have no problem getting the full $7500 on my taxes (did that research and had it confirmed).

 

[Dnorwood98]

I have a question regarding the Options plan and it didn't seem that I could get anywhere with Ford customer service because I didn't have an account.

If I go with an Options plan, can I over pay the monthly payment to reduce the balloon payment at the end of the terms? I like the idea of the lower monthly payment that Options brings, but would like to reduce the amount left over at the end of the 48 months. I have never done a lease on a car before so it is new territory for me to think about it.

 

[hybrid2bev]

I have a question regarding the Options plan and it didn't seem that I could get anywhere with Ford customer service because I didn't have an account.

If I go with an Options plan, can I over pay the monthly payment to reduce the balloon payment at the end of the terms? I like the idea of the lower monthly payment that Options brings, but would like to reduce the amount left over at the end of the 48 months. I have never done a lease on a car before so it is new territory for me to think about it.

Options is not a lease. It’s a retail installment contract so if you pay more than your normal monthly payment it would reduce the principal balance of the loan. You would have a lower principal amount owed by the date the balloon is due.

 

[Dnorwood98]

Options is not a lease. It’s a retail installment contract so if you pay more than your normal monthly payment it would reduce the principal balance of the loan. You would have a lower principal amount owed by the date the balloon is due.

Thank you, that is what I suspected/hoped for.

 

[physib]

Another question: can I refinance the balloon?

 

[shutterbug]

Another question: can I refinance the balloon?

Yes you can, but you may get a better rate by refinancing through a credit union. My credit union has current rates on used car that are fairly decent:

 

[generaltso]

One thing that came up in my Options contract that wasn't clear to me at first is that the "Cash Price" of the car does not include sales tax. I was hoping I would be able to get them to break out sales tax so that I could pay that separately since there's a 30% down payment limit. But I didn't have to since the 30% max is based on the cash price, which already didn't include the tax. The Cash price only includes the price of the car (with destination) and the doc fee. So my downpayment could be 30% of that (minus $2600 in rebates) plus the sales tax and registration fees. That's what I was hoping for.

 

[buckeye44]

So let me ask a few questions. Are there currently rebates on the "options" plan right now? Lets say we put the max 30% down, collect the $7500 tax credit, (yes I would qualify for the full amount) make payments for 18 months or so, could we at that point pay off the entire loan including the last balloon payment and own it right then? I thought I read that there is no penalty for an early payoff?

 

[generaltso]

So let me ask a few questions. Are there currently rebates on the "options" plan right now? Lets say we put the max 30% down, collect the $7500 tax credit, (yes I would qualify for the full amount) make payments for 18 months or so, could we at that point pay off the entire loan including the last balloon payment and own it right then? I thought I read that there is no penalty for an early payoff?

Yes, the Options incentive is $2500 or $1000 depending on your location. Yes, you can pay it off early with no penalty.

 

[buckeye44]

Are there any actual and recent residual values or actual balloon payments listed for the Premium AWD ext battery vehicles on here?

 

[RedStallion]

So let me ask a few questions. Are there currently rebates on the "options" plan right now? Lets say we put the max 30% down, collect the $7500 tax credit, (yes I would qualify for the full amount) make payments for 18 months or so, could we at that point pay off the entire loan including the last balloon payment and own it right then? I thought I read that there is no penalty for an early payoff?

My Ford Options contract has this verbiage: "You may prepay all or part of the unpaid part of the Amount Financed at any time. lf you do so, you must pay the earned and unpaid part of the Finance Charge and all other amounts due up to the date of your payment. As of the date of your payment, if the minimum finance charge is greater than the earned Finance Charge, you may be charged the difference; the minimum finance charge is as follows: (1) $25 if the original Amount Financed does not exceed $1,000, (2) $5O if the original Amount Financed is more than $1,000 but not more than $2,000, or (3) $75 if the original Amount Financed is more than $2,000."

 

[buckeye44]

Does it scare anyone to death that after 3 years these things might not be worth more than 35% or so of its original value? We are very seriously considering buying one but the residual projections are concerning. I’ve only seen 1 article with positive residual projections. Can anyone make us feel better about pulling the trigger? Aside from the tax credit? Thanks everyone

 

[Woeo]

Does it scare anyone to death that after 3 years these things might not be worth more than 35% or so of its original value? We are very seriously considering buying one but the residual projections are concerning. I’ve only seen 1 article with positive residual projections. Can anyone make us feel better about pulling the trigger? Aside from the tax credit? Thanks everyone

Doing a quick investigation on Ford.com I found the ‘residual’ on a 36 mos 10.5 k miles Options Financing purchase on a 52k or 53.1 k MSRP including delivery RWD Premium. Balloon $23364. 23364/53100=.44 44%

Backout the tax credit and the real cost of the car is 53.1 less 7.5 For a cost of 45.6. Your three year ‘residual is actually 23364/45600=51%

 

[jimbobiii]

Yes, the Options incentive is $2500 or $1000 depending on your location. Yes, you can pay it off early with no penalty.

did these incentives expire yesterday? They were posted through 3/31 and I don't see them on the Ford site anymore

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