Advertisement



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

timbop

Well-Known Member
First Name
Tim
Joined
Jan 3, 2020
Messages
2,165
Reaction score
3,509
Location
New Jersey
First Name
Tim
Vehicles
2015 Mustang Convertible (to be replaced by MME RT 1), 2016 Dodge Durango
Occupation
Software Engineer
Country flag
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.
You need to click on the link for the car type, and in the dialog box that pops up you'll see that the $2500 applies only to the options plan. Note the title "Ford options retail bonus cash program":
Screenshot from 2020-11-14 20-08-40.png
 

abr

Well-Known Member
Joined
Apr 4, 2020
Messages
190
Reaction score
247
Location
thousand oaks, ca
Vehicles
2010 Fusion Hybrid, 2019 Fusion PHEV
Country flag
You need to click on the link for the car type, and in the dialog box that pops up you'll see that the $2500 applies only to the options plan. Note the title "Ford options retail bonus cash program":
Screenshot from 2020-11-14 20-08-40.png
Tim,

That's not what mine says when I click through. But doesn't matter right now since I won't be taking delivery by 1/4/21 . . . . have to see what it changes to when I do . . . . .
 

timbop

Well-Known Member
First Name
Tim
Joined
Jan 3, 2020
Messages
2,165
Reaction score
3,509
Location
New Jersey
First Name
Tim
Vehicles
2015 Mustang Convertible (to be replaced by MME RT 1), 2016 Dodge Durango
Occupation
Software Engineer
Country flag
Tim,

That's not what mine says when I click through. But doesn't matter right now since I won't be taking delivery by 1/4/21 . . . . have to see what it changes to when I do . . . . .
Interesting. So it might be a regional thing being limited to options? If you go to ford.com, configure a mach E, and hit the financing calculator with both options and regular financing does it show you a $2500 incentive for both?
 

eastern refugee

Well-Known Member
First Name
Rich
Joined
Dec 11, 2019
Messages
389
Reaction score
353
Location
california
First Name
Rich
Vehicles
2021 Mach E First Edition (Ordered)
Occupation
insurance agent
Country flag
Ford has shared firm plans regarding leasing with Galpin Ford?

Why will it take 7 years to get the $7500 back from the IRS?
I don’t know but that is what I was told by a member from Ford at Galpin. It does make sense. It explains why Ford does not do a lease.
 

First Edition

Well-Known Member
Joined
Dec 20, 2019
Messages
154
Reaction score
220
Location
CA
Vehicles
Tesla Model S, BMW 530e, Mach E Co-Opt 3600 Edition on order
Country flag
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?
How sales tax is handled on Options is probably a make-or-break issue for me.

If Options calculates the sales tax on the whole amount (which for me would be $5k of tax) even though I have no plans of keeping the car for more than three years (more likely two years) than I’ll likely pass on the Mach.

Ford seems very short sided in not offering standard leasing in a high tax state like California.
 

FredT

Well-Known Member
First Name
Fred
Joined
Feb 1, 2020
Messages
318
Reaction score
233
Location
California
First Name
Fred
Vehicles
1999 Mercedes 320E. 2003 Passat Wagon, just finished lease of 2017 Audi A3 Enron
Occupation
Retired
Country flag
How sales tax is handled on Options is probably a make-or-break issue for me.

If Options calculates the sales tax on the whole amount (which for me would be $5k of tax) even though I have no plans of keeping the car for more than three years (more likely two years) than I’ll likely pass on the Mach.

Ford seems very short sided in not offering standard leasing in a high tax state like California.
It's not make-or-break for me, but it certainly would make an ID.4 lease more attractive in comparison.
 

LYTMCQ

Well-Known Member
First Name
Lyt
Joined
Feb 2, 2020
Messages
1,936
Reaction score
964
Location
Portland
First Name
Lyt
Vehicles
Telsa Model 3 LR AWD
Country flag
It's not make-or-break for me, but it certainly would make an ID.4 lease more attractive in comparison.
Wouldn't the Ford Options be a LOT cheaper than conventional lease. You get $10k in credits up front which you likely don't get at all with a standard lease.
 

eastern refugee

Well-Known Member
First Name
Rich
Joined
Dec 11, 2019
Messages
389
Reaction score
353
Location
california
First Name
Rich
Vehicles
2021 Mach E First Edition (Ordered)
Occupation
insurance agent
Country flag
Wouldn't the Ford Options be a LOT cheaper than conventional lease. You get $10k in credits up front which you likely don't get at all with a standard lease.
in Cali you get the discounts regardless of a lease or purchase. The ONLY difference in lease versus purchase is the federal $7500.
 

SnBGC

Well-Known Member
First Name
Greg
Joined
Apr 20, 2020
Messages
984
Reaction score
1,518
Location
Phoenix
First Name
Greg
Vehicles
Ford Focus Electric, Ford C-Max Energi, 1999 F250 PSD, 2000 F250 PSD, 1968 GTO, 1955 Bel Air
Occupation
Managet
Country flag
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.
Thank you for this summary. Very helpful.
 



 









Advertisement


Top