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

JellyBelly

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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.
I think the 2500 incentive is a Ford incentive here not CARB CAli incentive - Ford incentives change frequently so the incentives from Ford that matter are what is on offer when you purchase the car.
 

FredT

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Perhaps someone can answer this question:

In my mind I've favored the idea of a lease over Ford Options simply because the Federal tax credit is simpler (assuming that Ford would pass on the full $7500 to the lessee). What I am unclear on is what are the state tax ramifications. In California state sales tax is very high, 8.25% in my county. With a lease, sales tax is applied on each monthly payment, so if one give the car back at end of lease, tax hasn't been paid on the residual. Since Ford Options is purchase contract, I can see the possibility that the full purchase amount would be taxed up front. That could amount to a couple thousand dollars extra over a lease, depending on residual. Does anyone know how state sales tax is handle with Ford Options?
 

RyZt

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Perhaps someone can answer this question:

In my mind I've favored the idea of a lease over Ford Options simply because the Federal tax credit is simpler (assuming that Ford would pass on the full $7500 to the lessee). What I am unclear on is what are the state tax ramifications. In California state sales tax is very high, 8.25% in my county. With a lease, sales tax is applied on each monthly payment, so if one give the car back at end of lease, tax hasn't been paid on the residual. Since Ford Options is purchase contract, I can see the possibility that the full purchase amount would be taxed up front. That could amount to a couple thousand dollars extra over a lease, depending on residual. Does anyone know how state sales tax is handle with Ford Options?
With the way California taxes car sales (and offer no trade in credit), I'm pretty confident that you'll pay sales tax on the entire msrp+destination.

I'm interested in the $2500 credit, but fully intend to keep the car beyond 3 years. So that's not a concern to me.
 
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Perhaps someone can answer this question:

In my mind I've favored the idea of a lease over Ford Options simply because the Federal tax credit is simpler (assuming that Ford would pass on the full $7500 to the lessee). What I am unclear on is what are the state tax ramifications. In California state sales tax is very high, 8.25% in my county. With a lease, sales tax is applied on each monthly payment, so if one give the car back at end of lease, tax hasn't been paid on the residual. Since Ford Options is purchase contract, I can see the possibility that the full purchase amount would be taxed up front. That could amount to a couple thousand dollars extra over a lease, depending on residual. Does anyone know how state sales tax is handle with Ford Options?
Ford Options is signed on the same retail installment contract as a normal retail deal. So it should be taxed the same way. Consult with your dealer.

To turn a normal retail contract into Options it just has a couple extra sections filled out to give you the lease-like options at the end of the term.
 

FredT

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FredT

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Ford Options is signed on the same retail installment contract as a normal retail deal. So it should be taxed the same way. Consult with your dealer.

To turn a normal retail contract into Options it just has a couple extra sections filled out to give you the lease-like options at the end of the term.
Thanks.
 

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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.
It's totally based on what Ford chooses to do. The buyer of the car is entitled to the rebate. If you lease you are not the buyer, the lessor is the buyer.

Companies have treated the rebate in different ways. Most don't pass through the entire amount of the credit but that doesn't mean it can't happen. Can be hard to tell. For example, if you get $8000 in lease cash what part of that is a discount, what part a offset to a high money factor, and which part is the rebate?

The treatment of the rebate has evolved. First it was added to the residual. That wasn't great for the lessors since no one had an incentive to buy at the end of the lease because the residual was greater than the FMV. Then the entire amount was taken off MSRP, but that put pressure on the residuals. So most migrated to apportioning the credit over the life of the vehicle.
 

eastern refugee

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I am at the tour at Galpin in LA. There will be NO lease. The reason is because it will take Ford 7 years to get the $7500 back from the government and they do not want to wait that long.
 

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Yes I know the plan for that.

You could pay all of your Options monthly payments, then just chill until the end of the contract term and then exercise your options. Options isn’t set up to mimic a one pay lease at inception but once your first payment is due you could pay all 35 or 47 of them depending on your contract. Options is only offered as 36 or 48 months not 24.
s
Yes I know the plan for that.

You could pay all of your Options monthly payments, then just chill until the end of the contract term and then exercise your options. Options isn’t set up to mimic a one pay lease at inception but once your first payment is due you could pay all 35 or 47 of them depending on your contract. Options is only offered as 36 or 48 months not 24.
So - for early payoff, would it work like a regular loan where I would need to contact Ford to obtain the remaining principle? Or is the payoff literally 36/48 x monthly?

if the latter, you’re still paying the total interest.
 

macchiaz-o

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I am at the tour at Galpin in LA. There will be NO lease. The reason is because it will take Ford 7 years to get the $7500 back from the government and they do not want to wait that long.
Ford has shared firm plans regarding leasing with Galpin Ford?

Why will it take 7 years to get the $7500 back from the IRS?
 
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s


So - for early payoff, would it work like a regular loan where I would need to contact Ford to obtain the remaining principle? Or is the payoff literally 36/48 x monthly?

if the latter, you’re still paying the total interest.
It’s a simple interest loan not a precompute, so yes you would need to call for a payoff quote (to cover the daily interest until the payoff is received).
 

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I am at the tour at Galpin in LA. There will be NO lease. The reason is because it will take Ford 7 years to get the $7500 back from the government and they do not want to wait that long.
Hope you are happy with what you are seeing and experiencing.

Ford Credit is entitled to the same tax credit you are. You get the credit in the year of the purchase and can not carry it forward. So it's either now or never.
 

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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
Thanks for the confirmation. The information you provide is most helpful.
 

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He's talking the Ford incentives, not the state rebate. It's the same in Mass — $2500 if you do Ford Options.
Where I am in Socal, and look at X Plan pricing, the Ford incentive currently shows $2500 if you use Ford credit for financing (purchase) or Options. Obviously, don't know what Ford incentive will be when I actually get the vehicle next Jan / Feb. CA state credit is still $2000.
 



 









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