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

[MachKet]

@hybrid2bev Have they adjusted the RV's for the ford options? Feel like the finance calculator is spitting out higher payments now

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[hybrid2bev]

@hybrid2bev Have they adjusted the RV's for the ford options? Feel like the finance calculator is spitting out higher payments now

Residuals do change, sometimes quarterly.

 

[HondaRacer]

FYI: Maybe you know this already, hybrid2bev works at Ford finance, so dude knows his Ford Options details. Thus I think that means, that looks like right this second, there are no $2k nor $500 incentives provided for buying 2023 model year vehicles with Ford Options. Maybe that will change moving forward. And may be different for your situation.

I received $500 incentive and 4.49% last week for a new 2023 based on my 8/30/22 order date.

 

[NYSteve]

I am getting a $6,000 private offer for my conversion from a 2022 to a 2023. Do I get that benefit if I decide to lease?
(2023 Prem AWD Standard battery)

 

[hayhayday]

I am getting a $6,000 private offer for my conversion from a 2022 to a 2023. Do I get that benefit if I decide to lease?
(2023 Prem AWD Standard battery)

The residual value is quite a bit higher vs options (aprox 58% vs 45% but varies on miles\model) so if you think you might want to turn it in you will get more for it. Downside is the rate is about 5.4% vs 4.49 if your locked in and you will pay around 1k in lease fees. One exception would be if you could pay the lease in full up front as historically they discount the apr by around 3% for that giving a net of 2.4%. Private offer is helpful as residual value is based on msrp so a single payment lease might look something like
58k msrp x 58% = ~34k residual

58k- 34k = 22k depreciation - 6k private offer = 14k + ~1.5 k taxes + 650 acquisition + 3.3k interest (2.4%x 3 yrs x 46k average bal)= 19.4k

 

[generaltso]

The residual value is quite a bit higher vs options (aprox 58% vs 45% but varies on miles\model) so if you think you might want to turn it in you will get more for it.

Ford doesn't allow lease buyouts on EVs currently, so you would have to turn it in. Though that's likely to change with all these new tax credit shenanigans.

 

[yngwenli]

Haven't been following it, but yeah, guess Ford is blocking lease purchases even in CA.
https://insideevs.com/news/594242/ford-ending-lease-buyouts-all-electric-vehicles-us/

Here's Mercedes offering $7500 off on EQS leases. Of course, on a $102,310 - $125,900 dollar EVs :
https://www.mbusa.com/en/special-offers?class=EQS:SDN

"Includes
$7,500 [26]
Lease Bonus Cash"

 

[MMEGamer]

Should I expect to receive a title with a lean with the options plan? What's the ETA? It's been two months and I haven't received anything yet.

 

[hybrid2bev]

Should I expect to receive a title with a lean with the options plan? What's the ETA? It's been two months and I haven't received anything yet.

Ford Options is a retail loan. So if CA is not a title holding state then normally you would get the title document. But, I believe California has transitioned to electronic titles instead of paper.

https://www.dmv.ca.gov/portal/vehicle-industry-services/electronic-lien-and-title-program/#:~:text=With the ELT Program, DMV,in place of paper titles).

 

[bnc734]

So financing through Ford Options only gets $3750 in tax credit now, correct? ive been reading about other OEMs using leasing to get around the critical component aspect to get the full $7500, seems like there would be an opportunity here for that.

 

[back_at_it_19]

@hybrid2bev thx so much for your info over the years. We’ve got 2 mme’s! My 2021 job 1 is financed with options for 4 yrs and it will be decision time for us a year from now. We’ve significantly paid down the principal (almost to zero) to reduce interest expense and always thinking like I usually do that I’ll keep the vehicle a long time until it dies. However, if we traded it in next year for another ford, is the residual value still the same regardless of how much we’ve paid down the principal? Thx!!

 

[kennethjk]

@hybrid2bev thx so much for your info over the years. We’ve got 2 mme’s! My 2021 job 1 is financed with options for 4 yrs and it will be decision time for us a year from now. We’ve significantly paid down the principal (almost to zero) to reduce interest expense and always thinking like I usually do that I’ll keep the vehicle a long time until it dies. However, if we traded it in next year for another ford, is the residual value still the same regardless of how much we’ve paid down the principal? Thx!!

My understanding is that the loan is forgiven at the end of the 4 years in your case no matter what the car is worth

If you trade your car in, the credit you would get is limited to the trade in value of your car not the option amount

if you paid down the loan below the option amount all that would happen is that you turn the car back and that’s it

I wouldn’t pay off the loan to be lower than the option amount at the end of 4 years

if I am wrong someone please correct me

 

[generaltso]

@hybrid2bev thx so much for your info over the years. We’ve got 2 mme’s! My 2021 job 1 is financed with options for 4 yrs and it will be decision time for us a year from now. We’ve significantly paid down the principal (almost to zero) to reduce interest expense and always thinking like I usually do that I’ll keep the vehicle a long time until it dies. However, if we traded it in next year for another ford, is the residual value still the same regardless of how much we’ve paid down the principal? Thx!!

The residual was set when you bought the car and has nothing to do with what you owe. If you've paid down the principal (including the balloon), then you own the car.

 

[hybrid2bev]

My understanding is that the loan is forgiven at the end of the 4 years in your case no matter what the car is worth

If you trade your car in, the credit you would get is limited to the trade in value of your car not the option amount

if you paid down the loan below the option amount all that would happen is that you turn the car back and that’s it

I wouldn’t pay off the loan to be lower than the option amount at the end of 4 years

if I am wrong someone please correct me

If you paid down the principal below what you owe at the end of the contract term (before the balloon payment) you can trade the car in and use that equity towards your next purchase.


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, excessive use charges and disposition fee)

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.

 

[back_at_it_19]

If you paid down the principal below what you owe at the end of the contract term (before the balloon payment) you can trade the car in and use that equity towards your next purchase.


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, excessive use charges and disposition fee)

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.

Thx! We’ll see what happens to value in the coming year. Likely keeping the car regardless bc contrary to the complainers on the forum I love it.

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