Mach-E Financing and RCL Leasing Program Announced

[JTK44]

If you take delivery of the car during the dates this incentive applies it is valid. The car enters dealer stock once the dealer takes ownership of the vehicle before you purchase it from the dealer. The dealer has no reason to deny you this incentive as ford is paying for it. This incentive is very obviously created to improve the options leasing program so that people will select it over the traditional lease. There is currently some uncertainty about the federal tax credit, and it being targeted towards certain income brackets...Ford does not want to end up on the losing end of this.

If the incentive was only valid on dealer ordered vehicles, why would they bother creating this incentive expiring in January...they know that only ordered vehicles will be sold during this timeframe.

As far as I know:

• Unlike many state credits that phase out with income, The Federal tax Credit of $7,500 is without income limitations. Regardless of your income you are entitled to it. Keep in mind to get the full benefit you must have a tax liability of $7,500 or more.
• To assume the $2,500 incentive will apply I think is overly optimistic. Those that rely on this in their calculations I think will be disappointed. The language is different than for example BMW or Mercedes "Winter Sale" where there are incentives and/or rebates without any mention of either "taking from stock" or "only some may qualify." To me taking from stock means cars the dealer has for sale in his inventory - not cars coming in that are pre sold as the MNE is.

To be on the safe side, I would do as SourceConsulting did, do your figures with and without the $2,500 incentive. Better to safe than sorry!

.

Sponsored

 

[JTK44]

The residual number confuses me. Hasn't Ford already set that percentage? Isn't this the residual chart for the Option Program?:

If so, $55,800 at 40% is $22,320

Also confusing is the residual 'adjustment' Is that reflected in the numbers already or does Prem/AWD/3P mean 43%?

No one knows, but these figures correspond to the balloon on the Ford Option Plan.

I have yet to see from Ford Financial any of the terms for a RCL (Red Carpet Lease) or even if there will be a RCL.

 

[hybrid2bev]

Just my observation:

Residual:

$29,700 represents a residual of 53% for 15,000 miles.

That would be a residual of 57% for 10,000 miles. That might be optimistic.

Interest rate:

Interest rate of 5.4% will blow the payments up: No one will lease if the interest is 5.4%.

Federal Tax Credit:

I get where you coming from: Assume that the residual is high as the tax credit is "baked in".

Without the tax credit, using a residual of 57% for 10K miles and an interest rate of 5.4% the monthly payments come to $811 plus tax.

That payment is a non starter:

Sorry you're right. The Premium 4X is 55% (36 months) + 3% for 10,500 miles so 58% or 57% you're in the ballpark.

 

[hybrid2bev]

The residual number confuses me. Hasn't Ford already set that percentage? Isn't this the residual chart for the Option Program?:

If so, $55,800 at 40% is $22,320

Also confusing is the residual 'adjustment' Is that reflected in the numbers already or does Prem/AWD/3P mean 43%?

No one knows, but these figures correspond to the balloon on the Ford Option Plan.

I have yet to see from Ford Financial any of the terms for a RCL (Red Carpet Lease) or even if there will be a RCL.

@SoriceConsulting: These are the Options residuals @ 15k miles (not RCL). So yes, you would add or subtract to the listed percentage as described in the mileage chart. So Prem/AWD/3P is 40% + 3% if doing 10,500 miles instead of 15,000 per year= 43%

@JTK44 Yes, there are people that know. Yes, RCL is a thing for the Mach-E at 36 and 39 months. Yes, we have seen the published rates but not the RCL residuals (as far as I know the RCL residuals have not been posted on here).

Link : mix of Options residuals and the RCL, 36/39 rates (48 is not valid for RCL)

 

[JTK44]

@SoriceConsulting: These are the Options residuals @ 15k miles (not RCL). So yes, you would add or subtract to the listed percentage as described in the mileage chart. So Prem/AWD/3P is 40% + 3% if doing 10,500 miles instead of 15,000 per year= 43%

@JTK44 Yes, there are people that know. Yes, RCL is a thing for the Mach-E at 36 and 39 months. Yes, we have seen the published rates but not the RCL residuals (as far as I know the RCL residuals have not been posted on here).

Link : mix of Options residuals and the RCL, 36/39 rates (48 is not valid for RCL)

Thanks for the link:

This post only says that there will be RCL: but no MF or residuals are given.

Are the MF and residuals a "state secret"?

Demos will shortly be here followed by first deliveries.

 

[hybrid2bev]

Thanks for the link:

This post only says that there will be RCL: but no MF or residuals are given.

Are the MF and residuals a "state secret"?

Demos will shortly be here followed by first deliveries.

Did you click on the link and read the article? I'll highlight it for you.

 

[JTK44]

Did you click on the link and read the article? I'll highlight it for you.

Those interest rates starting at 5.4% going to 15.4% cannot be serious. They are utterly ridiculous.

So take them with a grain of salt!

Using 5.4%, the lowest rate, the Federal Tax credit "baked into" a residual as high as 57% for 10K, 3 years gives a monthly payment before taxes on the Premium LR AWD of over $800 and with taxes close to $900 a month.

So those interest rates cannot be real!

No will lease with those interest rates.

 

[hybrid2bev]

Those interest rates starting at 5.4% going to 15.4% cannot be serious. They are utterly ridiculous.

So take them with a grain of salt!

Using 5.4%, the lowest rate, the Federal Tax credit "baked into" a residual as high as 57% for 10K, 3 years gives a monthly payment before taxes on the Premium LR AWD of over $800 and with taxes close to $900 a month.

So those interest rates cannot be real!

No will lease with those interest rates.

Those are the real rates.

Not to say that they couldn't change, but that's what they are now.

 

[JTK44]

Those are the real rates.

Not to say that they couldn't change, but that's what they are now.

I was wrong: with a MSRP for the premium LR AWD, MSRP of $55,800, residual of 57%, interest rate of 5.4% the monthly payment without tax is $863.

Do not think there will be many takers at that price.

 

[kdryden99]

I was wrong: with a MSRP for the premium LR AWD, MSRP of $55,800, residual of 57%, interest rate of 5.4% the monthly payment without tax is $863.

Do not think there will be many takers at that price.

Could be why my canadian site is telling me 1200$ with my ev incentive. I think i still need to wait until the salesman is in front of me. I just checked canadian site is 3.49. So not sure

 

[JTK44]

I’m starting to see the early signs of some very faint hints that maybe, just maybe, Ford Credit isn’t much interested in leasing the Mach. Nothing specific, just a hunch.

Either a loss leader to bring customers in, or Ford is really afraid that the MME will not hold its value.

If Ford has built a product that they feel will not hold its value, then why should I, or anyone buy it and/or lease it?

 

[malba2366]

As far as I know:

• Unlike many state credits that phase out with income, The Federal tax Credit of $7,500 is without income limitations. Regardless of your income you are entitled to it. Keep in mind to get the full benefit you must have a tax liability of $7,500 or more.
• To assume the $2,500 incentive will apply I think is overly optimistic. Those that rely on this in their calculations I think will be disappointed. The language is different than for example BMW or Mercedes "Winter Sale" where there are incentives and/or rebates without any mention of either "taking from stock" or "only some may qualify." To me taking from stock means cars the dealer has for sale in his inventory - not cars coming in that are pre sold as the MNE is.

To be on the safe side, I would do as SourceConsulting did, do your figures with and without the $2,500 incentive. Better to safe than sorry!

.

Biden has said he wants to restore the $7500 EV tax credit and "target it to middle income taxpayers"...I think the number that has been thrown around is household income of $250K or below. This would get messy for leases where the bank is assuming the tax credit.

https://www.taxpolicycenter.org/sit...mer_vice_president_bidens_tax_proposals_1.pdf

 

[JTK44]

Biden has said he wants to restore the $7500 EV tax credit and "target it to middle income taxpayers"...I think the number that has been thrown around is household income of $250K or below. This would get messy for leases where the bank is assuming the tax credit.

https://www.taxpolicycenter.org/sit...mer_vice_president_bidens_tax_proposals_1.pdf

I wonder how that will pass the Senate?

Someone else posted that Tesla will just raise the prices on their cars.

I do not know where I stand:

• On one hand GM blew their credits on "econoboxes" that nobody wanted. Is it right to give them a second bite of he apple?
• If there is a national policy to go Green, then everything should be done to encourage EV by not putting a income limit on the credits.
• Although I have a substantial positions in oil stocks, from a national policy point of view, I am against subsidies for oil companies. In a similar vein I am for subsidies to get EV's to market, but after a certain threshold, each company should be able to stand on their products alone.

This is off topic, so better to stop.

 

[JellyBelly]

Biden has said he wants to restore the $7500 EV tax credit and "target it to middle income taxpayers"...I think the number that has been thrown around is household income of $250K or below. This would get messy for leases where the bank is assuming the tax credit.

https://www.taxpolicycenter.org/sit...mer_vice_president_bidens_tax_proposals_1.pdf

I did not realize there are income limits on claiming the 7500 tax credit. If you have 7500 tax liability you get to claim the credit is what I thought.

 

[malba2366]

I wonder how that will pass the Senate?

Someone else posted that Tesla will just raise the prices on their cars.

I do not know where I stand:

• On one hand GM blew their credits on "econoboxes" that nobody wanted. Is it right to give them a second bite of he apple?
• If there is a national policy to go Green, then everything should be done to encourage EV by not putting a income limit on the credits.
• Although I have a substantial positions in oil stocks, from a national policy point of view, I am against subsidies for oil companies. In a similar vein I am for subsidies to get EV's to market, but after a certain threshold, each company should be able to stand on their products alone.

This is off topic, so better to stop.

I don't think Tesla will raise prices, but everyone else will be forced to lower prices to compete. If they did raise prices by $7500 that would certainly invite government scrutiny.

I did not realize there are income limits on claiming the 7500 tax credit. If you have 7500 tax liability you get to claim the credit is what I thought.

Currently that is how it stands. This is a proposal by Joe Biden which he may try to pass as a part of his new tax policy after he becomes president. This would do a lot to hamper EV sales, because a lot of people buying $50K plus EVs also live in high cost of living areas (NY metro, California, South Florida etc) where a dual income family making $250K is not really "rich" after all of their housing and childcare expenses.

Sponsored