Is Ford Options done?

[Dustan]

The dealer just told me the Ford options plan ended 7-1

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[hybrid2bev]

The dealer just told me the Ford options plan ended 7-1

Ford Options is no longer available.

 

[Mach1E]

Curious if this has to do with the tax credit changes (since you can use on a lease now).

Seems Ford Options was created for the sole purpose of getting the tax credit by structuring a sale like a lease payment.

 

[hybrid2bev]

Curious if this has to do with the tax credit changes (since you can use on a lease now).

Seems Ford Options was created for the sole purpose of getting the tax credit by structuring a sale like a lease payment.

Yes. There’s no advantage to having both Ford Options and RCL available now.

 

[AKgrampy]

Yes. There’s no advantage to having both Ford Options and RCL available now.

Except with Ford Options you can keep the car. With RCL you have to turn it back no matter what or at least that is my understanding.

 

[hybrid2bev]

Except with Ford Options you can keep the car. With RCL you have to turn it back no matter what or at least that is my understanding.

Not anymore. They coordinated stopping Ford Options with changing the RCL rules going forward to now include a lease end purchase option again.

If you did a lease without a purchase option that does not change. It’s only been changed for new leases going forward.

 

[GreaseMonkey]

So are they extending the full tax credit that mme is eligible for to lessees as a cap cost reduction?

 

[hybrid2bev]

So are they extending the full tax credit that mme is eligible for to lessees as a cap cost reduction?

I was not able to find anything to confirm or deny that.

But I doubt the lease programs have changed that substantially.

 

[GreaseMonkey]

I was not able to find anything to confirm or deny that.

But I doubt the lease programs have changed that substantially.

If so, it’s a loss to the customer who can no longer get access to the fed tax savings. I mean $3,750 is over a $110 a month on a 3-year lease.

 

[hybrid2bev]

If so, it’s a loss to the customer who can no longer get access to the fed tax savings. I mean $3,750 is over a $100 a month on a 3-year lease.

Before the tax rules changed Ford was bumping up the RCL residual percentages to offset a portion of the tax credits. I didn’t see any programs for $7500 or $3750 in cash/rebates, so I’m guessing that they are still bumping the residuals.

 

[4sallypat]

If so, it’s a loss to the customer who can no longer get access to the fed tax savings. I mean $3,750 is over a $100 a month on a 3-year lease.

I think if you look at the RV and MF, the $3750 is probably baked into the deal.

It may not show as a cap cost reduction, but rather higher RV, lower MF.

This lease deal looks almost a good deal:

 

[GreaseMonkey]

Before the tax rules changed Ford was bumping up the RCL residual percentages to offset a portion of the tax credits. I didn’t see any programs for $7500 or $3750 in cash/rebates, so I’m guessing that they are still bumping the residuals.

Got it. Not transparent to the customer. You got me curious about the payments. Will need to do some math later tonight.

 

[phil]

I think if you look at the RV and MF, the $3750 is probably baked into the deal.

It may not show as a cap cost reduction, but rather higher RV, lower MF.

This lease deal looks almost a good deal:

Almost. If they don't credit the full $7,500 they receive in tax credits, they are cheating the customer.

 

[hybrid2bev]

Almost. If they don't credit the full $7,500 they receive in tax credits, they are cheating the customer.

Ford as a company does not qualify for the full $7500 (corporate taxes and all). That’s why Ford didn’t previously bump the residual value by the full credit amount

 

[4sallypat]

Almost. If they don't credit the full $7,500 they receive in tax credits, they are cheating the customer.

It's no longer $7500.
It's $3750 - I know that's what I am claiming for my '23 MME I just picked up.

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