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Has anyone crunched the Ford Option numbers?

AndyS_OSU

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Disclaimer: I’m no accounting savant.

Out of curiosity I went back to the Ford website and priced out my exact build, went to the payment estimator, and then Ford Option.

Now I know rates may change come November or December and that the residuals change from month to month, but with the current advertised 2.25% APR for Ford Option, the $1000 incentive they currently list on the estimator for my region, knowing that Ford acquisition fee is $595, doc fee $150, and DMV stuff about $225 where I live, I worked my way backward trying to find the residual value that gave me the number shown on the estimator.

My calculations currently show a residual value of around 45%. And that is after I changed it to 7500 mile/year

That residual seems crazy low. Maybe I’m missing something.

I thought maybe they were capitalizing the taxes since I’m in Texas but the estimator has a footnote that says dmv, taxes, etc not included. Even if they capping the taxes, that’s still just a 53% RV.

Has anyone else crunched these numbers?

DFE9349F-AE3D-4534-A8DB-BA222275318F.jpeg


86419351-56B7-49D0-A332-09B983039641.jpeg
 

Dkaar

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Yes, many of us have and most agree the numbers are not great. It may be the reason I end up not going through with my GT purchase. I am hoping to get real-world info from the early adopters as they start procuring their non-GT models.
 

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I have found that Ford options are generous with their residual values. I have just paid off my Kuga after 3 years. The residual (balloon) payment was around £13,000. My dealer offered me £16,500 as partex for the latest model. You will probably find that your MME will be worth more than the balloon payment. That is what I am banking on anyway.
 

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I’ve said it before: Ford Options will be the deciding factor for me.

Doesn’t matter how much I prefer the MME over the MY, the numbers have to work. I'm trying to hold out, but Ford has been mum on any details. What's even more pertinent is my Tesla approval expires at the end of this month. So if Ford is still keeping financing details close to the chest, then it's looking like I'll be going with the MY - even though I want the MME.

I just can't see myself paying $700+ when I can pay $500.
 

Dkaar

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Off topic a bit but I can get a 2020 Bolt for $258 a month for 36 months here in MN. Absolutely zero down (includes tax, title, license, etc) 10k miles a year. Thinking about this for my wife.
 
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AndyS_OSU

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I’m currently in year three of a BoltEV Premium. It’s been a good car. Rarely have to worry about range. My issues have been overall size (two kids...need more room) and overall build quality. Interior is pretty cheap and the 2017 paint is low quality.
 

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I’m currently in year three of a BoltEV Premium. It’s been a good car. Rarely have to worry about range. My issues have been overall size (two kids...need more room) and overall build quality. Interior is pretty cheap and the 2017 paint is low quality.
I think that is the nice thing about a lease. Not your problem after the time us up. One of my concerns is how meticulous I would be if I bought a ME but if I lease it, my wife and kids could still eat and drink in the car and I wouldn’t care about a scratch here or there.
 

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You need to account for the $7500 credit (unless you're comparing with another non-GM/Tesla EV). For the math, just subtract 7500 from "MSRP" and "selling price" before you plug the numbers into a loan calculator.

Regardless of whether you qualify for the $7500 credit, most people buying a Mach E do. Therefore, the car immediately depreciates a comparable amount at delivery.

By the way, I wonder why you use 50600 as selling price. That's the old price.
 
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AndyS_OSU

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Yeah that was a typo but doesn’t effect the bottom line that much. Also, the tax credit won’t be factored in at the time of purchase/lease. And I don’t know about you but if I can’t get the car with in calendar year 2020 and get the tax refund early 2021, I can’t afford an $800 payment until 2022.
 

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Disclaimer: I’m no accounting savant.

Out of curiosity I went back to the Ford website and priced out my exact build, went to the payment estimator, and then Ford Option.

Now I know rates may change come November or December and that the residuals change from month to month, but with the current advertised 2.25% APR for Ford Option, the $1000 incentive they currently list on the estimator for my region, knowing that Ford acquisition fee is $595, doc fee $150, and DMV stuff about $225 where I live, I worked my way backward trying to find the residual value that gave me the number shown on the estimator.

My calculations currently show a residual value of around 45%. And that is after I changed it to 7500 mile/year

That residual seems crazy low. Maybe I’m missing something.

I thought maybe they were capitalizing the taxes since I’m in Texas but the estimator has a footnote that says dmv, taxes, etc not included. Even if they capping the taxes, that’s still just a 53% RV.

Has anyone else crunched these numbers?

DFE9349F-AE3D-4534-A8DB-BA222275318F.jpeg


86419351-56B7-49D0-A332-09B983039641.jpeg
Thank you for pointing this out! I am hoping it's available in California. We often have different rules. Anyone know?
 

hybrid2bev

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Thank you for pointing this out! I am hoping it's available in California. We often have different rules. Anyone know?
Yes, Ford Options is available in California. Your dealer should have access to the 'Ford Options Handbook' which has all the details.
 

MerryBrown

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Yes, Ford Options is available in California. Your dealer should have access to the 'Ford Options Handbook' which has all the details.
Thanks so much for the update, when the time comes, I will ask.
 

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Yes, Ford Options is available in California. Your dealer should have access to the 'Ford Options Handbook' which has all the details.
I just noticed tonight that the online calculator doesn't appear to have a 25% cap (or at least it is changed to a very high cap) on the downpayment. Is that intentional or a web snafu?
 

hybrid2bev

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I just noticed tonight that the online calculator doesn't appear to have a 25% cap (or at least it is changed to a very high cap) on the downpayment. Is that intentional or a web snafu?
There is a maximum allowable down payment on Ford Options, just like there is on a standard lease. I think it’s 35% or 45% of the cash selling price. I’m tired and don’t remember the exact number right this second. But it’s in that ballpark.


Edit: I was wrong it's 25% max down payment (US rules).
 
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AndyS_OSU

AndyS_OSU

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Does anyone have insight onto what potential residual value will be for MME? It doesn’t make me feel good that the last available programs for Ford’s ill-fated hybrids/phevs were atrocious. Below 45% residuals in most cases.
 



 









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