Is Ford Options done?

[phil]

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

Yes, for individual taxpayers, the maximum credit on MME is $3,750.

But for leasing corporations, such as Ford Credit, the federal tax credit amount is $7,500. That is the amount that should be credited to lessees.

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[generaltso]

But for leasing corporations, such as Ford Credit, the federal tax credit amount is $7,500. That is the amount that should be credited to lessees.

Only if they have enough tax liability.

 

[GreaseMonkey]

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

For an individual, yes. Companies are eligible for the full credit.

 

[phil]

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

Any leasing company qualifies for the full $7,500 credit amount. If you are saying that Ford is unable to apply the full amount - e.g., because as a corporation it pays less than $7,500 of FIT on its consolidated federal taxes (I believe this is the case for Ford in many tax years), then it should be using another (profitable, tax-paying) leasing company to make the full federal tax credit available to customers. They don't have to do that, but if they don't they are leaving a lot of free government money on the table that could be benefiting Ford customers.

 

[GreaseMonkey]

It looks like they’re offering between $1,000 and $2000 cash, between 1.4-2.65% Apr and 59-61% RV for a 36/10. It’s not bad. I assume you can combine with x-plan pricing.

 

[GreaseMonkey]

Any leasing company qualifies for the full $7,500 credit amount. If you are saying that Ford is unable to apply the full amount - e.g., because as a corporation it pays less than $7,500 of FIT on its consolidated federal taxes (I believe this is the case for Ford in many tax years), then it should be using another (profitable, tax-paying) leasing company to make the full federal tax credit available to customers. They don't have to do that, but if they don't they are leaving a lot of free government money on the table that could be benefiting Ford customers.

I’m sure Ford is getting the money. They are just not passing it on to the customer.

 

[phil]

I’m sure Ford is getting the money. They are just not passing it on to the customer.

I expect you are right - it would be gross negligence to forego a substantial corporate tax benefit. But with so many competitors passing on the full credit to customers, it also seems unprofitable to try to keep the money from customers. I don't know what to make of Ford's lack of transparency, and lack of competitiveness on this. But I will note that Tesla seems to be taking a similar approach. So far...

 

[GreaseMonkey]

I expect you are right - it would be gross negligence to forego a substantial corporate tax benefit. But with so many competitors passing on the full credit to customers, it also seems unprofitable to try to keep the money from customers. I don't know what to make of Ford's lack of transparency, and lack of competitiveness on this. But I will note that Tesla seems to be taking a similar approach. So far...

Wholeheartedly agree. I do think most customers judge the deal based on the monthly payment relative to other similar options. I’d be curious how the Mach-E compares to the Model Y and EV6 leases. I suspect based on the figures I cited, it’ll be comparable. Tesla’s leases are not great.

 

[voxel]

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

Which doesn't make sense.

VW Financial offered ID.4 leases back in 2020/2021 with the $7500 lease credit passed through and they allowed buyouts (no change in 2023).

RCL isn't passing through the credit so it's not comparable.

 

[voxel]

Wholeheartedly agree. I do think most customers judge the deal based on the monthly payment relative to other similar options. I’d be curious how the Mach-E compares to the Model Y and EV6 leases. I suspect based on the figures I cited, it’ll be comparable. Tesla’s leases are not great.

I don't think the $499/month MME Select is a good deal either. Tesla is silently incentivizing the 3/Y leases but not fully.... a $50.5K Model Y is $554/month with about the same amount down as the Mach-E Select deal.

My Ioniq 5 Limited AWD 36/10K lease was $930/month with $7500 off the $59K MSRP. Poor RV and high MF is why it was so expensive but the plan was always to buy it out. Instead I sold it back to the dealer when my R1S arrived lol.

 

[GreaseMonkey]

I don't think the $499/month MME Select is a good deal either. Tesla is silently incentivizing the 3/Y leases but not fully.... a $50.5K Model Y is $554/month with about the same amount down as the Mach-E Select deal.

My Ioniq 5 Limited AWD 36/10K lease was $930/month with $7500 off the $59K MSRP. Poor RV and high MF is why it was so expensive but the plan was always to buy it out. Instead I sold it back to the dealer when my R1S arrived lol.

I noticed that Tesla is also discounting inventory pretty heavily. M3P was off $3k last time I checked. MY discounts range between $0.5-1.5k depending on the model.

 

[Dustan]

Had to walk away from the GT I ordered in February. I currently have a premium with 1 year left on Ford options. I can order a GT today for $4000 less than my February GT sticker price. Hopefully prices will stabilize soon.

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