Last minute purchasing fears

[DennisD]

(FYI, This is a cross post of a question I just made in a Reddit sub)
Hi, I'm a lurker who has been considering an MME since their debut. A few things have held me back: 1. Cost, 2. Availability, and 3. Fear of making the "big switch" to a BEV.
#2 is alleviated, as there is a sweet '23 premium AWD in Grabber Blue at a nearby dealer (released custom order).
#1 will be tight, but I think doable, even if I don't get the interest rate I want.
#3 is almost gone. I have had a PHEV since 2019 as an intermediary step bc I know I want to make the switch in the long run. Plus, my husband is keeping his ICE.
Okay, so that now leaves the new fear (although I probably should have been thinking about it ?) of cost of maintenance. Specifically, if I were to get in an accident. It seems like accidents end up costing a grip for repairs due to the car's tech (I know insurance covers it) and the time without the vehicle seems rather long.
Is this a reasonable fear or am I making mountains out of mole hills?
TIA for the feedback.

If your deciding factor is interest rates, run...............don't walk away from this purchase.

I was on the fence of plunging into a BEV before I purchased it.

I would purchase a vehicle that is around 20k less and purchase a BEV in around 4 years when the dust settles and costs come down.

Take the money that you will save on interest rates and put more money down in around 4 years and you can rest much easier.

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[new to mach-e]

Also consider if you will be OK with the rapidly decreasing values of used EV, including MAch-e's. The '23's had a hefty price increase, which was partially rolled back... but I think I would ask for additional discount given the current economic environment.
I walked away from my '23 select AWD early February and five weeks later it still sits unsold at the dealer.

 

[npgeorgeuw]

If Budget is tight you should never buy a given vehicle. Things like mortgages and rent and savings/investment should be a large portion of your finances. A car payment should never be. It’s a depreciating asset and should be bought based on function and quality of your budget is tight. There’s too many affordable efficient cars out there that provide comparable capability than an EV that is still more expensive than a comparable ICE vehicle. And without any of the potential drawbacks of an EV.

Now if your budget concerns are more of a personal preference (aka I personally can afford much more than a Mach E but can’t wrap my head around spending that much on a car based on a functional perspective) then that’s a whole other discussion. At that point I just side with what I want and what’s going to put a smile on my face when I drive it. Ten years ago my decision would be to have stuck with a used Prius and an Outback and drive them into the ground. They would cover 99% of our needs. Hell, one car would have sufficed but there would have been some planning needed.—We transitioned to working together so no real need for two cars at that point.

 

[MellowJohnny]

Lots of people chiming in on budget, which I completely agree with, but one thing I did not take into account was the savings in gas. So that extra ~$200 to $300 a month I'm not spending at the pump any more offsets my monthly payment, in the grand scheme of things.

 

[DennisD]

Lots of people chiming in on budget, which I completely agree with, but one thing I did not take into account was the savings in gas. So that extra ~$200 to $300 a month I'm not spending at the pump any more offsets my monthly payment, in the grand scheme of things.

I suggested purchasing a car for 20k less than an EV if money is tight.

If I used your savings, I could go 4 years with a gas price of ($300 per month / the higher end I might add) and be ahead around 3k with an ICE.

That doesn't factor in interest rates or higher insurance with an EV (more expensive car).

As it is currently, one is still way better off (if we are talking dollar for dollar) of buying a cheaper ICE and waiting if your pocket book doesn't expand much.

 

[MellowJohnny]

I suggested purchasing a car for 20k less than an EV if money is tight.

If I used your savings, I could go 4 years with a gas price of ($300 per month / the higher end I might add) and be ahead around 3k with an ICE.

That doesn't factor in interest rates or higher insurance with an EV (more expensive car).

As it is currently, one is still way better off (if we are talking dollar for dollar) of buying a cheaper ICE and waiting if your pocket book doesn't expand much.

For sure - what I meant to say was if the monthly on the MME is doable without putting other more import budgetary items at risk, there's a little monthly bonus on gas savings. In my case the price of the Mach-E was about what I'd spend on any car, ICE or EV. So the gas savings was just a nice bonus.

This is why I don't weigh in on personal finances - every situation is unique and everyone has different priorities.

 

[npgeorgeuw]

Lots of people chiming in on budget, which I completely agree with, but one thing I did not take into account was the savings in gas. So that extra ~$200 to $300 a month I'm not spending at the pump any more offsets my monthly payment, in the grand scheme of things.

I think you missed a word, offsets my monthly payment “difference”? Unless you put half down in cash. If you are paying $300 a month I’d really like to know how you got it so low under MSRP and what lender you have. I’d use them for everything. Lol.

 

[SpaceEVDriver]

Assumptions:

1. You can afford the upfront capital costs (whether those are cash or credit)
2. You would but a new ICE or PHEV vehicle with similar capabilities if you didn't get the Mustang

Given those assumptions, your long-term costs will be less with the Mustang than with the other vehicle. Payback time relative to the other vehicle will be between 3-6 years, maybe as high as 7 if the price of gas drops or if you get an especially low-maintenance vehicle. It's not worth worrying about major events--those aren't more likely just because you have the Mustang (unless you enjoy it too much

 

[athomas43]

(FYI, This is a cross post of a question I just made in a Reddit sub)
Hi, I'm a lurker who has been considering an MME since their debut. A few things have held me back: 1. Cost, 2. Availability, and 3. Fear of making the "big switch" to a BEV.
#2 is alleviated, as there is a sweet '23 premium AWD in Grabber Blue at a nearby dealer (released custom order).
#1 will be tight, but I think doable, even if I don't get the interest rate I want.
#3 is almost gone. I have had a PHEV since 2019 as an intermediary step bc I know I want to make the switch in the long run. Plus, my husband is keeping his ICE.
Okay, so that now leaves the new fear (although I probably should have been thinking about it ?) of cost of maintenance. Specifically, if I were to get in an accident. It seems like accidents end up costing a grip for repairs due to the car's tech (I know insurance covers it) and the time without the vehicle seems rather long.
Is this a reasonable fear or am I making mountains out of mole hills?
TIA for the feedback.

I was concerned too, but with the tax credits availability, and ford reducing, it's become more affordable. Maintenance, things can happen, but it can happen with any car, and with there being less car demand now, it's not as bad. Let me just say, I was freaked, and here and there, I still am a bit with range anxiety, but I'm telling you, once you start driving, and you drive it for 2/3 days, then try to go back to your old car, it doesn't happen. It's so awesome. For a daily driver, it's great, so smooth. Then you go on the highway, turn on unbridled mode, and how clean it looks, like I really really love it. I think you would too.

 

[Tscates1]

Knew a guy that had a (very nice) brand new Porsche years ago. We asked him if he'd let his kids drive it. Without hesitation he said "yes". His reasoning: "Doesn't matter if I wreck it or they do... I won't pay for it...that's why I got insurance."

And yes, my insurance went up when I purchased the car. But it was worth every penny.

 

[Guss-E 2021]

I'm not sure this is the best place to get impartial advice on buying a Mach-E ?. We can definitely answer technical (practical) questionscar but I, personally, would not rely on strangers in an online forum for advice about the 2nd largest purchase decision in most households.

Telling you I love my Mach-E is meaningless unless your life is exactly like mine. At the end of the day, only one person will have to pay for and live with this car: you. Only you know the precise nature of your circumstances. I hope it works out for you.

 

[MacherAWD]

The Mach-E is awesome, if the price is tight and you still want to go electric get a Bolt, they are insanely cheap, so they will hold value, they are fun, and then trade it in for something better when you are ready.

 

[illinirdhd]

Lots of people chiming in on budget, which I completely agree with, but one thing I did not take into account was the savings in gas. So that extra ~$200 to $300 a month I'm not spending at the pump any more offsets my monthly payment, in the grand scheme of things.

This is what ultimately made my decision to order the MME. Every other vehicle I looked at that I liked as much, might come in +/- $5,000 lower. Would I rather pay $150 extra in payment, or $200-$300 in gas? (We have solar on the house, so the additional energy cost will not be significant).

 

[DennisD]

This is what ultimately made my decision to order the MME. Every other vehicle I looked at that I liked as much, might come in +/- $5,000 lower. Would I rather pay $150 extra in payment, or $200-$300 in gas? (We have solar on the house, so the additional energy cost will not be significant).

If the money is not tight, then go for it.

If the money is tight, I would not invest my last dime at the end of the month into a car payment. One would be much better (and safer) to play the long game and wait when the time is more doable finance wise.

Btw, I have Solar panels on my home as well but I think you are forgetting that the energy is not "free". The initial cost of the solar panel along with every ounce of energy you use from the solar panel that goes into your car is not being used for you home or the excess in buyback from the utility company. So you really are paying the rate of what is being charged in the long run.

I have known a few people that cut it on the edge (finance wise) and they would lose nearly everything if things went sideways.

Like I said, if you have the money then make the purchase. If you don't i.e. loan, then you are gambling.

 

[jay1122]

Wow, so many people talking about extra EV cost over ICE. The price difference between EV and similar spec ICE counter part is around 10K. Just look at cars with both gas and EV version. Like BMW 4 series vs i4. Hyundai Kona vs Kona EV. Comparing MME cost with an economical ICE is simply unfair due to spec differences. With the tax credit, potential state incentive, fuel and maintenance saving. I would say the cost is similar.

The insurance and repair on MME is comparable to other 40-50K ICE. I think only tesla has that problem due to the single body cast and exclusive collision shop and repair parts.

If lower budget is desired, a BOLT EUV is a solid choice. It qualifies for the 7500 tax credit again now. Family has one, definitely don't drive as good as MME but decent enough for everyday job.

I only see EV as good value if you do a lot of miles annually and still desire good performance in acceleration. The instant torque is addictive. You need V6 or V8 for that acceleration in ICE. Remember, with the same money of the MME, you can get a Lexus NX350H. Equally fuel efficient. Luxurious interior and brand. More reliable. Just slower in acceleration.

Many mentioned PHEV. Personally, I do not like plug in hybrid. You are using that slow 8-10 Sec 0-60 tiny motor for the majority of your miles and just let the engine you spent money on sit idle. The only use I see out of it is that you do frequent long range trips where you need the engine to kick on. I would just get a high MPG hybrid.

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