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Lease Program Details For Mach-E Leasing

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Here are some early details on the lease-like program Ford will offer for the Mach-E, as explained to us by Ford at the LA Auto Show.

Q: Will the Mach-E be available for lease?

A: There will be a lease-like product offered. It will behave just like a lease, but the key difference being that the vehicle will be titled in the customer's name (rather than Ford Motor Company). The reason for this feature is to pass 100% of the government EV tax credit to the customer.​
Otherwise, this lease-like product will behave just like a lease -- at the end of the “lease” period, the customer can turn the vehicle in no questions asked, or buy out the vehicle at a pre-set price [set at the beginning of the contract, like a lease]. This product will be the only lease type product available.​
 
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Windydrew

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I think that might work out fine for me. I'd like a 7 passenger SUV with faster charging but don't have 2 years or more to wait for the TMY.
 

Jasper7821

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I would be happy with that as long as the lease payments/down makes sense.
 

stmache

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That's much different than the Honda lease I have. The tax credits went to the dealer/lease company which reduced the overall prices of the car which lowered the monthly payments. By pushing it to the customer, you will lease the car at it's full price. The customer has to wait until they do their taxes for that year before they see a return. Can you then flip it and pay down the lease? I doubt it.
 

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This is interesting and Ford must think a very high percentage of Mach E buyers will be eligible for the Tax Rebate which may or may not be the case. If a customer, wait, this is an Electric Vehicle so we should be called "Clients" to recognize our more sophisticated nature as a group. Clients will be upset at Ford if our Tax Burden isn't high enough to realize the tax credit, ultimately were going to blame Ford. With every purchase Ford should absolutely take the time to explain this thoroughly upfront. I'm not talking a "Sign and acknowledge", but rather a "Dealer must read to Client ensuring understanding. This isn't a small deal, it's 20 - 25% of the price and people will inevitably blame Ford if they don't qualify at tax time. Ford on the other hand, will most certainly have a tax liability and could pass that on directly to the Leasee, but the way described above will take calculations and planning on the purchasers part whether Lease or Purchase. This is really important and shouldn't be overlooked.
 

Blitz118

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This is interesting and Ford must think a very high percentage of Mach E buyers will be eligible for the Tax Rebate which may or may not be the case. If a customer, wait, this is an Electric Vehicle so we should be called "Clients" to recognize our more sophisticated nature as a group. Clients will be upset at Ford if our Tax Burden isn't high enough to realize the tax credit, ultimately were going to blame Ford. With every purchase Ford should absolutely take the time to explain this thoroughly upfront. I'm not talking a "Sign and acknowledge", but rather a "Dealer must read to Client ensuring understanding. This isn't a small deal, it's 20 - 25% of the price and people will inevitably blame Ford if they don't qualify at tax time. Ford on the other hand, will most certainly have a tax liability and could pass that on directly to the Leasee, but the way described above will take calculations and planning on the purchasers part whether Lease or Purchase. This is really important and shouldn't be overlooked.
What are the requirements to qualify for the tax rebate?
 

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Each buyer has to determine their own tax situation. Intuit, (TurboTax) has has a great discussion forum on Tax Credits/Deductions on purchasing an electric car. We aren't taking delivery until 2020/2021 so plenty of time for planning. We just need to make sure to do it.
 

stmache

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Each buyer has to determine their own tax situation. Intuit, (TurboTax) has has a great discussion forum on Tax Credits/Deductions on purchasing an electric car. We aren't taking delivery until 2020/2021 so plenty of time for planning. We just need to make sure to do it.
I was figuring it would work the way it did at the Honda Dealer, now, I think I will need to put the planned tax credit into a down payment and then pay it back to myself at tax time. As you say, will have to discuss it with my tax accountant.

This also might tip it back to buying the car instead of leasing. Ford did say they expected more people would buy the Mach-e than lease it. Can see why they said it now.
 

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So I leased my Bolt EV, as it was my first EV and I wasn't sure how it'd handle. In that vehicles case, I'm going to make out like a bandit. The Bolt has tanked in value. My residual is in the 22k range, but right now I could buy a used 2017 same model with <10K miles for less than that from a dealer and that's considered a 'fair to good' deal by car gurus. The best I'm seeing for the Premire trim level which I have is 23k today. in a year when that lease is up, it's going to be even worse.

The problem with this tax credit is it tanks the car value by 7500 immediately. So if you as the first owner don't get it, yer screwed. So this model lets you get the immediate depreciation hit of that tax credit.

The Fiat 500E we have I bought used. Used, 36k miles, and loaded with features it was a $7999 car. New three years earlier it was $32000. I get that cars drop in value, but no car I've owned dropped *that* much. it's over 50% in three years? these cars are supposed to last longer too because of so little maintenance needs compared to an ICE (oil, wear/tear things) design. I don't get it.
 

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So I leased my Bolt EV, as it was my first EV and I wasn't sure how it'd handle. In that vehicles case, I'm going to make out like a bandit. The Bolt has tanked in value. My residual is in the 22k range, but right now I could buy a used 2017 same model with <10K miles for less than that from a dealer and that's considered a 'fair to good' deal by car gurus. The best I'm seeing for the Premire trim level which I have is 23k today. in a year when that lease is up, it's going to be even worse.

The problem with this tax credit is it tanks the car value by 7500 immediately. So if you as the first owner don't get it, yer screwed. So this model lets you get the immediate depreciation hit of that tax credit.

The Fiat 500E we have I bought used. Used, 36k miles, and loaded with features it was a $7999 car. New three years earlier it was $32000. I get that cars drop in value, but no car I've owned dropped *that* much. it's over 50% in three years? these cars are supposed to last longer too because of so little maintenance needs compared to an ICE (oil, wear/tear things) design. I don't get it.
Fiat is among the highest in depreciation and the tax credit is certainly a player in all cases. Bottom line is supply and demand. Prius was selling with ADM when gas was high, now not so much. If this car looked like the initial one that Ford had in development, no way I would at all interested in it. It's an attractive, vehicle inside and out. Having said all that, if im getting a new vehicle every 24 to 36 months, I'm leasing regardless of brand.
 

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Taxpayers are already giving us 7500 so heck ya, light company should as well! (Just don't raise my taxes or power bill!). Oh and now that the earth has warmed enough to clear the glaciers off the U.S. and my property in particular, the earth can stop it's warming as well!
 

EyeOnMachE

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What are the requirements to qualify for the tax rebate?
To be clear it's a tax "credit" not a "rebate." Rebates don't really need any qualifications. To qualify for the federal tax credit you have to have a tax liability. If your tax liability is, say, $5000, then you can apply $5000 (of the $7500) as a tax credit to reduce your tax liability. If your tax liability is, say, $10,000, you can apply the full federal tax credit of $7500 to reduce your tax liability to $2500.

By pushing it to the customer, you will lease the car at it's full price. The customer has to wait until they do their taxes for that year before they see a return.
That's a good point. Plus, since you're paying full price wouldn't that also mean you'll be paying more in sales tax (assuming you're not in one of the 5 or so states that doesn't have sales tax)?
 
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stmache

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That's a good point. Plus, since you're paying full price wouldn't that also mean you'll be paying more in sales tax (assuming you're not in one of the 5 or states that doesn't have sales tax)?
That is correct. In my state (NY), sales tax on automobiles can be deducted from the state income tax. There are rules about it and people need to consult their tax professional.
 



 









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