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Lease Program Details For Mach-E Leasing

Martin Leventon

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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.
I mentioned in my new thread that this sucks for people with lower incomes that cannot absorb the full $7500 tax credit.....Hyundai (just got e mail from a dealer regarding the 2020 Kona Electric) calls it a lease rebate and this is applied against the MSRP of the car so the lease payments are less and the customer does not have to worry if he or she can avail themselves to the tax credit...
 

eastern refugee

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You can do a 25,000 mile lease with ford. It is one that really needs to be thought out carefully. If you plan on buying the car then your lease turns out to be an essentially 8 year loan. As such the car is electric so the concept of high miles is irrelevant. This can give you a lower payment plus the 7500 towards the down payment. It is also good say you have an accident. After 3 years you give it back. It really comes down to what your purpose is. Mine is to get OUT of the car business. I want this to be my last car. As such I am looking at both options. Electric means I never have to worry about driving 200,000 miles long distance. Food for thought.
 

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You can do a 25,000 mile lease with ford. It is one that really needs to be thought out carefully. If you plan on buying the car then your lease turns out to be an essentially 8 year loan. As such the car is electric so the concept of high miles is irrelevant. This can give you a lower payment plus the 7500 towards the down payment. It is also good say you have an accident. After 3 years you give it back. It really comes down to what your purpose is. Mine is to get OUT of the car business. I want this to be my last car. As such I am looking at both options. Electric means I never have to worry about driving 200,000 miles long distance. Food for thought.
I wondered if Ford would have longer milage leases because of the electric vs ice motors. I drive around 22k a year, so leases have not been an option for me. Where did you see they were going to have 25K leases?
 

eastern refugee

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I wondered if Ford would have longer milage leases because of the electric vs ice motors. I drive around 22k a year, so leases have not been an option for me. Where did you see they were going to have 25K leases?
My friend works at the largest ford dealership in America/world I think. We talked about it last night. They have ALWAYS had it but you have to know someone who understands ford financing complexities. You can even do more but it comes down to cost versus is it really worth it. Today NO ONE knows what the pricing is. If they say they do they are lying.
 

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My friend works at the largest ford dealership in America/world I think. We talked about it last night. They have ALWAYS had it but you have to know someone who understands ford financing complexities. You can even do more but it comes down to cost versus is it really worth it. Today NO ONE knows what the pricing is. If they say they do they are lying.
I’ll make a few quick corrections below You can see my prior posts in this thread. I’ll need to double check if you can buy additional miles upfront on a Ford Option contract to get up to 25k miles per year.

1. Ford will not be offering a traditional lease product to start (maybe after the tax credits expire).

2. You can’t use the tax credits as down payment on your financing because you have to file your taxes after you purchase the vehicle to get the money.
 
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eastern refugee

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I’ll make a few quick corrections below You can see my prior posts in this thread. I’ll need to double check if you can buy additional miles upfront on a Ford Option contract to get up to 25k miles per year.

1. Ford will not be offering a traditional lease product to start (maybe after the tax credits expire).

2. You can’t use the tax credits as down payment on your financing because you have to file your taxes after you purchase the vehicle to get the money.
Not true on tax credits. Ford is putting it in your name so that it can be applied right back to ford.
 

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I’ll make a few quick corrections below You can see my prior posts in this thread. I’ll need to double check if you can buy additional miles upfront on a Ford Option contract to get up to 25k miles per year.

1. Ford will not be offering a traditional lease product to start (maybe after the tax credits expire).

2. You can’t use the tax credits as down payment on your financing because you have to file your taxes after you purchase the vehicle to get the money.
I thought I read an interview with someone at Ford who said it could be structured either way. Titled in your name so you can receive the $7500 at tax time OR in Ford’s name so you can recognize the $7500 as a reduction in your leased principal amount.
 

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Not true on tax credits. Ford is putting it in your name so that it can be applied right back to ford.
If it's in your name, how exactly can Ford claim the tax credit? Hybrid2ev actually works for a car company intimately familiar with ford. I trust his information here
 

jlauro

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That is my understanding as eastern refugee stated, except the part about it being applied back to Ford. From a news article last year:

Ford won’t offer a lease program for the Mach-E. Instead it will have a “lease-like” purchase arrangement for those who don’t want to do a conventional purchase. It will impose mileage limits and other lease-like restrictions and provide a guaranteed buy-back at the end of three years.

Buyers using the program will still own the vehicle, though, so won’t lose the federal credit. That goes only to the registered owner. With a conventional lease, that’s usually the automaker’s financial arm.
 

hybrid2bev

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From a news article last year:
Ford won’t offer a lease program for the Mach-E. Instead it will have a “lease-like” purchase arrangement for those who don’t want to do a conventional purchase. It will impose mileage limits and other lease-like restrictions and provide a guaranteed buy-back at the end of three years.

Buyers using the program will still own the vehicle, though, so won’t lose the federal credit. That goes only to the registered owner. With a conventional lease, that’s usually the automaker’s financial arm.
This is accurate.
 
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jlauro

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I thought I read an interview with someone at Ford who said it could be structured either way. Titled in your name so you can receive the $7500 at tax time OR in Ford’s name so you can recognize the $7500 as a reduction in your leased principal amount.
I hope your are right about the second half of the OR, but I doubt it... I am going to use up all my tax credit getting solar installed this year, so I'll have to wait until Jan 1st so I don't loose the $7500... unless the above is true...
 

srogers

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I hope your are right about the second half of the OR, but I doubt it... I am going to use up all my tax credit getting solar installed this year, so I'll have to wait until Jan 1st so I don't loose the $7500... unless the above is true...
You can carry your solar tax credit forward but the electric car tax credit must be used is the same tax year the car was purchased.. You should contact a tax expert.
 

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I will say this. No one at Ford yet knows EXACTLY what is going to happen. I will wait and see.
 

hybrid2bev

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I will say this. No one at Ford yet knows EXACTLY what is going to happen. I will wait and see.
Yes, plans can change. But there’s been no indication of changes in the weekly checkpoint meetings.

My point is that I don’t want there to be misconceptions and/or potential disappointments when it’s time for all of us to work out what financing options work for our individual situation.
 

eastern refugee

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Yes, plans can change. But there’s been no indication of changes in the weekly checkpoint meetings.

My point is that I don’t want there to be misconceptions and/or potential disappointments when it’s time for all of us to work out what financing options work for our individual situation.
your point is excellent. What I do know for a fact is that Ford will do 25,000 leases. You are right.I would think that once you agree to buy the car, say May,they should have the financing down.
 



 









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