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

timbop

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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
 
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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

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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

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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.
 

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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?
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.
 

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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.
 

eastern refugee

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in Cali you get the discounts regardless of a lease or purchase. The ONLY difference in lease versus purchase is the federal $7500.
 

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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.
 

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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.
Where (link) can I go to check these rates and incentives for Options?
 

UW2

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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
(Repetitive) Could you please direct me to the link(s) where you see this? Thanks
 

abr

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Where (link) can I go to check these rates and incentives for Options?
I saw this in the X Plan page that I reached through MCoA benefit section. Linked to a Ford page that you entered your Zip and saw both X Plan pricing and available incentives (at the time). I'm sure the incentives change and would need to be in force when you take delivery.
 
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UW2

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I saw this in the X Plan page that I reached through MCoA benefit section. Linked to a Ford page that you entered your Zip and saw both X Plan pricing and available incentives (at the time). I'm sure the incentives change and would need to be in force when you take delivery.
Thank you, this worked for me too
 

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Question for all you finance experts. Anyone do the math and see the differences between Ford Options with incentives VS plain Ford Credit rates? If someone was planning on keeping for the long haul, is one option better than the other?
 

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Question for all you finance experts. Anyone do the math and see the differences between Ford Options with incentives VS plain Ford Credit rates? If someone was planning on keeping for the long haul, is one option better than the other?
I plan to keep the car longer than 4 years.

The easy way to figure this out (what I plan to do!), and with the most accurate and current numbers, is to make this decision at the dealership while purchasing the car.

The disclosure forms for financing (whether traditional or Ford Options) should indicate the total cost paid for the entire term of the loan.

Use those numbers to get your total out the door cost including the sum of all loan payments and balloon payment.

I will also look at my total cost to get financing (traditional or Ford Options) and make just a couple of payments on it and pay the rest as cash (or a bank auto loan) after those first few payments.

This can be worthwhile depending on manufacturer incentives.
 

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