Lease vs buy 24 GT

[1badsnake]

I got it on mine a month ago... I think your dealer is being shady....

I don't think he is being shady, possibly misinformed. This sales manager has been awesome to deal with.

The $511 payment I was quoted from another dealer I believe included the $7,500 where this payment from the dealer I want to get it from isn't including it.. hence the $572 price.

Unless the Ev RCL Cash is the fed rebate

MSRP: $59,985
Discount: -$ 5,499
Rebates: -$ 7,500 - EV RCL Cash
-$ 2,000 - Bonus Customer Cash
-$ 1,000 - EV Holiday Bonus Cash
-$ 1,000 - EV Public Charging Credit
-$ 750 - Private Offer

Subtotal: $42,236
Admin Fee: $ 499
Title Fee: $ 27
Acquisition Fee: $ 695

Total: $43,457

36 Months
19,500 Miles Per Year
$572.71 Per Month with First Payment Due at Signing

Buy Out: $25,193.70

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[phil]

Do you still get the $7,500 fed rebate on a lease? I have a dealer saying you don't get it because I don't own the car. But my understanding is Ford gets it and applies it towards the lease.

Did this loophole end or is it still available?

Yes, Ford Credit still gets $7,500. The dealer should apply it to the capitalized cost in the lease.

 

[Jerrytball]

Yes, Ford Credit still gets $7,500. The dealer should apply it to the capitalized cost in the lease.

I swear when I bought my 23 in February that the $7500 was something you could take off on your taxes. I don’t think they replied that to my loan ordeal from what I could tell unless it’s changed.

 

[phil]

I swear when I bought my 23 in February that the $7500 was something you could take off on your taxes. I don’t think they replied that to my loan ordeal from what I could tell unless it’s changed.

Rules are different for a lease.

 

[Jerrytball]

Rules are different for a lease.

I never thought about that when I was getting in the car I kinda was leaning towards a lease cause I like to trade my cars in every two years and I guess I was never a one percent in motorcycles but now I guess I’m a half percent in electric cars, cause I’m one of those that went back to gas Leasing my Nissan rogue and selling my 23 to Carvana last week

 

[GreaseMonkey]

I don't think he is being shady, possibly misinformed. This sales manager has been awesome to deal with.

The $511 payment I was quoted from another dealer I believe included the $7,500 where this payment from the dealer I want to get it from isn't including it.. hence the $572 price.

Unless the Ev RCL Cash is the fed rebate

MSRP: $59,985
Discount: -$ 5,499
Rebates: -$ 7,500 - EV RCL Cash
-$ 2,000 - Bonus Customer Cash
-$ 1,000 - EV Holiday Bonus Cash
-$ 1,000 - EV Public Charging Credit
-$ 750 - Private Offer

Subtotal: $42,236
Admin Fee: $ 499
Title Fee: $ 27
Acquisition Fee: $ 695

Total: $43,457

36 Months
19,500 Miles Per Year
$572.71 Per Month with First Payment Due at Signing

Buy Out: $25,193.70

Respectfully, I don’t think that you can compare a loaner that is sold $5,000 off msrp with a new/ unused vehicle. Your payment is $200 lower due to that and the private offer.

Your deal is a smashing one and way better than what I was able to negotiate on a new vehicle.

 

[GreaseMonkey]

I swear when I bought my 23 in February that the $7500 was something you could take off on your taxes. I don’t think they replied that to my loan ordeal from what I could tell unless it’s changed.

Rules have changed. You are right, but that is no longer the case, Jerry. Mach-Es are ineligible for tax credits to buyers anymore. The only way to get the $7,500 is through the lease loophole in the IRA. Which is what the OP took advantage of.

 

[1badsnake]

Are we sure the EV RCal Cash $7,500 isn't Ford passing the EV credit they get to the consumer?

That would mean 2 $7,500 credits.. just seems like a coincidence that the EV RCL Cash is the exact amount of the fed credit.

I don't want to keep arguing with this sales manager but I want to make sure I am not losing out on another $7,500.

 

[phil]

Are we sure the EV RCal Cash $7,500 isn't Ford passing the EV credit they get to the consumer?

No, we aren't. Ford can call the credit whatever they like.

What I would look at is total credits (or capitalized cost) on the lease vs. total credits (or price/taxes/fees) on a purchase. If Ford is really passing along the full $7,500 they get from the government, then there should be a difference of $7,500. My impression is that Ford usually tries to keep a portion of the tax credit, passing along less than the full $7,500 to the customer.

 

[1badsnake]

No, we aren't. Ford can call the credit whatever they like.

What I would look at is total credits (or capitalized cost) on the lease vs. total credits (or price/taxes/fees) on a purchase. If Ford is really passing along the full $7,500 they get from the government, then there should be a difference of $7,500. My impression is that Ford usually tries to keep a portion of the tax credit, passing along less than the full $7,500 to the customer.

This may be me being an amateur when it comes to purchasing vs leasing and the terminology. But, the rebates are different for purchasing and leasing so how can you say there would be a $7,500 difference looking at the cap cost?

Example, I'm eligible for $6,000 in rebates as a purchase. I'm eligible for $4,000 on a lease plus the $7,500 ev cash rebate he listed for a total of $11,500 in rebates. In both circumstances they are giving me $5,500 as well for a dealer discount and $750 PCO So $12,250 for a purchase, $17,750 for a lease. The Sales Manager told me if there was an additional $7,500 for a fed rebate, my payment would be in the mid $300s a month for a 2024 GT with 36 month lease and 19,500 miles per year.

IMO, there is no way someone is going to get a $350 a month payment for the vehicle I listed.. not even close. But you can see why I really need to dig into this and get a confirmation. An additional $7,500 is no small chunk of change to just give up on.

 

[phil]

This may be me being an amateur when it comes to purchasing vs leasing and the terminology. But, the rebates are different for purchasing and leasing so how can you say there would be a $7,500 difference looking at the cap cost?

Example, I'm eligible for $6,000 in rebates as a purchase. I'm eligible for $4,000 on a lease plus the $7,500 ev cash rebate he listed for a total of $11,500 in rebates. In both circumstances they are giving me $5,500 as well for a dealer discount and $750 PCO So $12,250 for a purchase, $17,750 for a lease. The Sales Manager told me if there was an additional $7,500 for a fed rebate, my payment would be in the mid $300s a month for a 2024 GT with 36 month lease and 19,500 miles per year.

IMO, there is no way someone is going to get a $350 a month payment for the vehicle I listed.. not even close. But you can see why I really need to dig into this and get a confirmation. An additional $7,500 is no small chunk of change to just give up on.

I'm an amateur, too. But what I'm seeing in your example is that your dealer is giving you a $5,500 lower price on the lease than on the purchase, even though the government gives Ford $7,500 free money for the lease. So somebody - dealer, manufacturer, or leasing company - is keeping the missing $2,000. That $2,000 - is not being passed along to you, the customer. They are apparently giving you most of the federal tax credit amount, but not all of it.

In a properly functioning market, I don't think the seller should be able to pocket $2,000 of that tax credit. They get the $7,500 only if I lease the car. I would offer at least $2k below the dealer's lease price. Of course, the dealer can refuse my offer. And I can take my business elsewhere.

Good luck with your negotiations!

 

[dalola]

I don't think he is being shady, possibly misinformed. This sales manager has been awesome to deal with.

The $511 payment I was quoted from another dealer I believe included the $7,500 where this payment from the dealer I want to get it from isn't including it.. hence the $572 price.

Unless the Ev RCL Cash is the fed rebate

MSRP: $59,985
Discount: -$ 5,499
Rebates: -$ 7,500 - EV RCL Cash
-$ 2,000 - Bonus Customer Cash
-$ 1,000 - EV Holiday Bonus Cash
-$ 1,000 - EV Public Charging Credit
-$ 750 - Private Offer

Subtotal: $42,236
Admin Fee: $ 499
Title Fee: $ 27
Acquisition Fee: $ 695

Total: $43,457

36 Months
19,500 Miles Per Year
$572.71 Per Month with First Payment Due at Signing

Buy Out: $25,193.70

Yes, that "EV RCL" is the "tax" credit. As I understand it, the MME does not qualify for the fed credit, so Ford is kicking this in voluntarily, to be competitive. So they can call it what ever they want.

This is still an outstanding deal, unlikely you will do much better unless you can find a Ford courtesy car in exactly the same configuration.

 

[ARK]

Yes, that "EV RCL" is the "tax" credit. As I understand it, the MME does not qualify for the fed credit, so Ford is kicking this in voluntarily, to be competitive. So they can call it what ever they want.

This is still an outstanding deal, unlikely you will do much better unless you can find a Ford courtesy car in exactly the same configuration.

The federal tax credit of $7,500 applies unlimited to businesses, no income requirement, no battery or final assembly requirement. So it’s true Ford is kicking it in voluntarily, but it is different from a normal manufacturer rebate in that even brand new 2025 models when they hit the dealer floor in the new year would be expected to have this discount, and it’s true for all EVs.

 

[1badsnake]

So just to clarify from my end. The sales manager emailed me this morning confirming the $7,500 ev cash is the fed rebate being passed down by Ford. He said he talked to 3 different people at Ford, one being Fords EV specialist and all said the same thing.

 

[1badsnake]

Well I've finally committed. All approved and signing the paperwork this week.

24 GT glacier gray $59,985 MSRP, moonroof and home charger were the only 2 extras. Final deal was $17,750 off MSRP, 36 month lease, $0 down, 19,500 miles per year. $558 a month. $25k buyout if I choose at end of lease.

Couldn't beat this deal anywhere else and excited to pick it up this weekend.

Thanks everyone for your help and insight!

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