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

eastern refugee

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None per the IRS tax code. Buyer of the vehicle, lease company or end user, gets the tax credit. Advantage of the Ford Option is the buyer gets to claim the tax code.
That is THE why I wish it were a true lease. With Ford options you get the $7500 Federal Tax Credit as long as your taxes are in fact $7500. If say your taxes are $3000 then you only get $3000. If this were a true lease then the $7500 could be used a s a down payment.

In Cali in order to get the $2500 cash incentive you have to do the Ford Option. If you do the regular financing at the cheap interest rate you only get $1000 I think.
 

DBC

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I can pay the D&D fees with the extra cash. I don't want the dealer to play games with my trade value because they don't want to write me a check for the excess. I also made a deal with my wife to keep the payments under a certain threshold, as she gets really nervous with our expenses.
To take the dealer issue away, get a quote from CarMax a day or two before you get a quote from the dealer. Then take the highest offer. Getting a check from CarMax takes less than a hour or so.

With respect to your wife and the monthly, a little education might help. Try searching for articles explaining why the monthly payment isn't all that important. Best case is she processes it. Worst case is that she doesn't but there is at least there is one exposure.
 
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hybrid2bev

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That is THE why I wish it were a true lease. With Ford options you get the $7500 Federal Tax Credit as long as your taxes are in fact $7500. If say your taxes are $3000 then you only get $3000. If this were a true lease then the $7500 could be used a s a down payment.

In Cali in order to get the $2500 cash incentive you have to do the Ford Option. If you do the regular financing at the cheap interest rate you only get $1000 I think.
If a true lease was offered you would probably not see the full $7500 benefit. How much tax credit is actually realized would be about $3-$4k in residual support. It would not be applied as a down payment off of the cap cost. Ford Credit won’t qualify for the full $7500 tax credit, so you would see a reduction in the tax credit benefits on a lease. On a lease you would get lower monthly payments because of the residual support vs. Options, but that means the buy out at the end would be higher on a lease.
 

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That is THE why I wish it were a true lease. With Ford options you get the $7500 Federal Tax Credit as long as your taxes are in fact $7500. If say your taxes are $3000 then you only get $3000. If this were a true lease then the $7500 could be used a s a down payment.

In Cali in order to get the $2500 cash incentive you have to do the Ford Option. If you do the regular financing at the cheap interest rate you only get $1000 I think.
Your point is well taken, but what makes you think you would get the full $7500 with the lease? Likely it would be roughly half with the lessor keeping the other half.

What matters is what percentage the residual/buy out price is. I think with Ford Options it's 54% which is fair.

The CA rebate is for sales or leases so a lease qualifies.
 

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You could pay all of your Options monthly payments, then just chill until the end of the contract term and then exercise your options.
How does GAP insurance work with prepayments? If you prepay you would have the FMV of the car, what you contractually owe, and what you owe after prepaying. GAP covers the difference between FMV and what you contractually owe. Does it also cover the difference between FMV and what you actually owe after prepayments?
 

eastern refugee

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Your point is well taken, but what makes you think you would get the full $7500 with the lease? Likely it would be roughly half with the lessor keeping the other half.

What matters is what percentage the residual/buy out price is. I think with Ford Options it's 54% which is fair.

The CA rebate is for sales or leases so a lease qualifies.
it would be the FULL $7500. My friend in management has been working for ford his whole life. In the past it was the full federal tax rebate. It is not based on Ford. It was based on a customer who was a new electric owner. He got the full amount when he leased his electric focus.
 
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hybrid2bev

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it would be the FULL $7500. My friend in management has been working for ford his whole life. In the past it was the full federal tax rebate. It is not based on Ford. It was based on a customer who was a new electric owner. He got the full amount when he leased his electric focus.
The deck I saw a couple months ago did not have the full credit amount. We'll see what happens when the final programs are made available.
 
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How does GAP insurance work with prepayments? If you prepay you would have the FMV of the car, what you contractually owe, and what you owe after prepaying. GAP covers the difference between FMV and what you contractually owe. Does it also cover the difference between FMV and what you actually owe after prepayments?
GAP on Options works just like it does on a normal retail contract. As you describe you are responsible for the whole amount financed.

In my opinion only: If you are pre-paying all of the monthly payments then GAP may not be a good value for you. The remaining financed amount would probably be lower than the FMV therefore you would probably not be in a negative equity situation for GAP to cover.

On the other hand, if you have a limited down payment or finance more than the vehicle is worth, then yes GAP may be a good product for you to consider.

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GoGoGadgetMachE

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GAP on Options works just like it does on a normal retail contract. As you describe you are responsible for the whole amount financed.

In my opinion only: If you are pre-paying all of the monthly payments then GAP may not be a good value for you. The remaining financed amount would probably be lower than the FMV therefore you would probably not be in a negative equity situation for GAP to cover.

On the other hand, if you have a limited down payment or finance more than the vehicle is worth, then yes GAP may be a good product for you to consider.

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It should be mentioned that a lot of car insurance has a "loan/lease payoff" option that is usually very, very reasonably priced. (It was $8/6 months when I had it.)
 

AndyS_OSU

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The deck I saw a couple months ago did not have the full credit amount. We'll see what happens when the final programs are made available.
Wait wait wait. So there WILL be a traditional leasing option out of the gate after all? Is Ford aiming to put more on the road with EV tax credit supported low 60s residual values? Are we talking consumer friendly money factors? So many questions.
 
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hybrid2bev

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Wait wait wait. So there WILL be a traditional leasing option out of the gate after all? Is Ford aiming to put more on the road with EV tax credit supported low 60s residual values? Are we talking consumer friendly money factors? So many questions.
We’ll see what happens when the final programs are available.
 

trutolife27

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Hmm, interesting. I am actually asking because the options plan in my area currently has $2500 incentive - which I hope they keep beyond Jan 4th since my car will likely arrive mid to late january. But, because of that and my trade-in value I will actually exceed the cap by $1000, although I am hoping I can pay the D&D fees with the extra cash. I don't want the dealer to play games with my trade value because they don't want to write me a check for the excess. I also made a deal with my wife to keep the payments under a certain threshold, as she gets really nervous with our expenses.

Now, before anyone says "it sounds like you can't afford the car" I absolutely can; my wife gets nervous about money for reasons I won't go into.
sounds like your a lucky man then. A frugal woman is a blessing.
 

FredT

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In Cali in order to get the $2500 cash incentive you have to do the Ford Option. If you do the regular financing at the cheap interest rate you only get $1000 I think.
I don't think that is true. Requirement are only that you own or lease the car, there is no language regarding financing. Also, the amount of the rebate was lowered to $2000 in California.
 

mattbostonmache

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I don't think that is true. Requirement are only that you own or lease the car, there is no language regarding financing. Also, the amount of the rebate was lowered to $2000 in California.
He's talking the Ford incentives, not the state rebate. It's the same in Mass — $2500 if you do Ford Options.
 



 









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