Mach-E Financing and RCL Leasing Program Announced

[Gimme_my_MME]

So what you guys are saying is you are attempting to calculate the same thing using different methods and assumptions and calculators and get different numbers.

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[Dudeduke]

One clear issue with Ford option is the sales tax on the residual as it is not a lease. So in california we would end up paying at least extra $2000 if you don't keep the vehicle at the end of term. I think you are missing that in the calculation.


I think it would be best to wait and see what actual numbers are once the cars are at the dealership. We are all speculating and calculating the final numbers.

It may be different for others, but if MME is more than 10% more expensive with rcl or Ford option in comparison with Model Y than i would pass on it at least for now.

 

[AndyS_OSU]

Thanks. I try not to chime in unless I feel that there is incomplete or inaccurate information on here. Everyone has a right to their opinion and should freely share it so the Mach-E teams can see what customers are thinking.
@kdryden99 too!! Let your opinions be known.

I’m sure you’ve posted it before, but to whom and by what means should we reach out to Ford about all of this?

 

[JTK44]

I have posted the numbers. No idea why you can't follow the calculations. They are fairly standard.

I do have some questions about whether you understand leasing. For example, you say to use $0 down. That's nice but since I'm relying on the Tesla site, and it doesn't have an obvious way to do this, that doesn't seem possible. Likewise I haven't been able to find where on the Tesla site it lays out the residual, which means I can't use a lease calculator.

Please, I have forgotten more about leasing than you will ever know.

As you seem to have difficulty navigating the Tesla site I will lay it out for you:

1. Go to "Tesla.com."
2. At the top click Model Y
3. Click the "order now box"
4. At the right "purchase price": $49,990
5. Click "long range"
6. Click "next"
7. Click "Pearl White Multi Color"
8. Click "19" Gemini Wheels"
9. Click "next"
10. Click "All black interior"
11. Click "next"
12. Click "next"
13. You will see "Your Model Y": Price $49,990.
14. Click cash: You will see the purchase price $49,990
15. At the bottom left Click "estimated payment"
16. Click "Lease"
17. You will see payment of "499/mo". Down payment $4.500: mileage 10,000
18. Go to down payment
19. Highlight the "4,500" and put in "0"
20. The monthly payment will increase from $499 to $633.
    
    To me this is pretty clear: With $0 down, 10,000 miles per year, 36 months, the monthly payment is $633.
    
    If you go back to my prior post, the attachment shows the exact same thing.

When you follow the above instructions, please confirm monthly payments of $633.

As you are clearly ignorant of Tesla program for leasing, Tesla does not give a residual because at the present time at the end of the lease you cannot buy the car.

Musk intentions is to take all the cars back when the leases end and to use those cars in his "robo taxi fleet". Whether that happens or not, is anyone's guess.

 

[JTK44]

So what you guys are saying is you are attempting to calculate the same thing using different methods and assumptions and calculators and get different numbers.

No, not really.

DBC clearly does not know how to navigate the Tesla site. He is confusing so many things it is impossible to respond to his posting.

I gave him detailed instructions as to how to use the Tesla site, which makes moot the balance of his posting.

You can do the same and you will see the monthly payment, 36 months, 10,000 miles per year, zero money down, payment of $633.

Hope this clarifies.

 

[Mickey the T]

FWIW, the residual on my 2018 BMW i3 lease is 61% (30-month lease), which is equal to about $30K if I were to buy it at lease end. FMV value of a low-mileage 2018 i3 is about $10K less than that.

 

[JTK44]

One clear issue with Ford option is the sales tax on the residual as it is not a lease. So in california we would end up paying at least extra $2000 if you don't keep the vehicle at the end of term. I think you are missing that in the calculation.


I think it would be best to wait and see what actual numbers are once the cars are at the dealership. We are all speculating and calculating the final numbers.

It may be different for others, but if MME is more than 10% more expensive with rcl or Ford option in comparison with Model Y than i would pass on it at least for now.

In New York there is a sales tax due when you register the car.

When you buy and/or lease a car, the dealer collects the sales tax as an agent of the State. They are specifically authorized to do this. There is no option. They must collect the sales tax.

With the option plan, which is a sale, the sales tax is due on the sale price, which in the case of the MME is MSRP.

As I posted, in New York, and 43 other states, on a lease the sales tax is collected on the sum of the lease payments plus any cap cost reduction.

On the MME, the sales tax savings between a lease and the Ford option plan is several thousand dollars.

Hope this clarifies.

 

[hybrid2bev]

I’m sure you’ve posted it before, but to whom and by what means should we reach out to Ford about all of this?

The Mach-E teams are monitoring this site. Also there are links to the social media sites on these websites.

https://www.at.ford.com/en/homepage.html

https://www.ford.com/finance/customer-support?intcmp=hp-bottomnextstep-faqs-customersupport

 

[JTK44]

FWIW, the residual on my 2018 BMW i3 lease is 61% (30-month lease), which is equal to about $30K if I were to buy it at lease end. FMV value of a low-mileage 2018 i3 is about $10K less than that.

Not surprising at all.

Aren't you glad you leased?

Let that extra $10,000 in depreciation be BMW Financial problem and not yours!

 

[Dudeduke]

In New York there is a sales tax due when you register the car.

When you buy and/or lease a car, the dealer collects the sales tax as an agent of the State. They are specifically authorized to do this. There is no option. They must collect the sales tax.

With the option plan, which is a sale, the sales tax is due on the sale price, which in the case of the MME is MSRP.

As I posted, in New York, and 43 other states, on a lease the sales tax is collected on the sum of the lease payments plus any cap cost reduction.

On the MME, the sales tax savings between a lease and the Ford option plan is several thousand dollars.

Hope this clarifies.

Yes, i know that . That is what i was trying to explain that Ford option is not a good option for a person interested in leasing in most of the states.

 

[Woeo]

Both are lost leaders and make every other car look "cheap" by comparison!
]

The term is loss leader. And you have no idea what the term means.

 

[Dudeduke]

Not surprising at all.

Aren't you glad you leased?

Let that extra $10,000 in depreciation be BMW Financial problem and not yours!

As i mentioned before almost all BEVs except Tesla's have had inflated residuals to push cars through for ev credits.

If you look at all the EVs and their resale values, you can easily see that they are no way close to an ICE. On the other hand Tesla's for some reason has held its resale value better than other luxury ICE vehicles in their segment.

It may be because of initial limited supply from Tesla and huge fan following. Along with the only EV maker with track record of batteries with lowest degradation over a long period of time.

I was hoping Ford would change that trend and would back their product. With the limited supply of MME and great surge of following as we are seeing on this forum they should be able to provide a higher residual for someone interested in lease.

I think they are underestimating the residuals so that they are not on the negative end at lease returns.

 

[kdryden99]

As i mentioned before almost all BEVs except Tesla's have had inflated residuals to push cars through for ev credits.

If you look at all the EVs and their resale values, you can easily see that they are no way close to an ICE. On the other hand Tesla's for some reason has held its resale value better than other luxury ICE vehicles in their segment.

It may be because of initial limited supply from Tesla and huge fan following. Along with the only EV maker with track record of batteries with lowest degradation over a long period of time.

I was hoping Ford would change that trend and would back their product. With the limited supply of MME and great surge of following as we are seeing on this forum they should be able to provide a higher residual for someone interested in lease.

I think they are underestimating the residuals so that they are not on the negative end at lease returns.

The reason they hold their value is cause they offer no buyback. You have to give the car back so in essence they control the resell value of the used car market. Everybody else who bought planned to keep it so the second hand market for them is not very big. There is also the fact that the battery doesnt degrade much over time and the range is very good so if you buy used your not losing out much battery wise. Then there is the hype factor. These are factors no other BEV has. Thats why i was so disappointed that Ford believes there car will depreciate so fast. I don't know any other BEV than Tesla and the MME that have the same range and price.
There is nothing else. If we are willing to give their car a chance they should also. In any case if options is available here and the price makes sense i might just refinance the balloon at term end.

 

[Woeo]

The Option Plan balloon payment for the $56440 MSRP ER AWD Premium (10,500 miles annually) $24,834. My true cost is $56,440-7,500-1,000 (option incentive) = $47,940. $24,834 would be 52% of true cost. Not 40%. Not 35%

 

[JTK44]

The Option Plan balloon payment for the $56440 MSRP ER AWD Premium (10,500 miles annually) $24,834. My true cost is $56,440-7,500-1,000 (option incentive) = $47,940. $24,834 would be 52% of true cost. Not 40%. Not 35%

that may be true.

However we are talking about residuals on leasing: not the balloon on the Ford Option plan.

Do not conflate the two.

FYI:

From the details of the Ford Option plan, including destination charges the MSRP of the Premium AWD LR is $55,800 I do not see the $1,000 incentive you are talking about.

The balloon is $24,552.

If we take $7,500 from the MSRP we get a cost of $48,300. A balloon of $24,552 is 50.8% close enough to your 52%.


Having said that, the monthly payment, using the Fed Tax credit of $7,500 as a down payment, is $749 a month vs. $633 for the Model Y with no money down on the model Y.

My local sales tax rate is 8.625%. The taxes on the Option plan will be $4,812, or an additional $133 a month bringing the monthly payments to $882 a month.

That is a little too rich for my blood and extremely high for a car that cost $48,300.


Hope this clarifies.

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